Multistate Professional Responsibility Exam Practice Question
An attorney is in-house counsel at a company. A senior executive directs employees to inflate revenue data in official reports and tells the attorney not to inform others. The attorney believes this plan might mislead investors and harm the organization. Which approach aligns with the attorney’s professional duty?
Discuss the request with the senior executive's superior or board of directors.
Resign from the company and avoid discussing the matter further
Approve the executive’s request to increase reported figures
Advise the executive to correct the data and alert higher authority when the issue persists
A lawyer for an entity must act in the organization’s best interest. Advising the executive to correct questionable figures and involving higher management when the problem continues safeguards the organization from potential harm. Simply following the directive or resigning without addressing the issue fails to meet professional obligations.
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