Chiara is a member in industry who works for Italio Industries,...

Question

Chiara is a member in industry who works for Italio Industries, Inc., an importer of fine Italian handbags. During the preparation fo the company's annual audited financial statements for the year ended December 31, 20X2, a disagreement on the application of certain accounting principles ensued between Chiara and her supervisor. Rather than being associated with the situation, Chiara immediately decides to resign without taking any further action. Which of the following statements is true regarding Chiara:

Chiara is fully relieved of all responsibilities that exist regarding this situation immediately upon her resignation.
Chiara may not be fully relieved of responsibilities that exist regarding this situation upon her resignation
Chiara must report he situation to the AICPA upon her resignation but is fully relieved of all other responsibilities that might exist regarding this situation
none of the above.

Answer 1

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