The most accurate answer to the statement "A company acting ethically must adapt its internal reports to any changes required" is 4) if they are considered pertinent to its business activities.
Option 1) Instantly: This is not always feasible or necessary. Some changes might require time for analysis and implementation before being reflected in internal reports.
Option 2) As it is appropriate for its business cycle: This timeframe could be too slow for some crucial changes related to ethics or compliance.
Option 3) As stipulated by the CPA Canada handbook and GAAP: While following accounting standards is important, ethical considerations might go beyond codified rules and require proactive adaptation.
Therefore, the answer should emphasize the importance of relevance to business activities and timely adaptation for ethical considerations. Option 4 captures this nuance by stating that internal reports should adapt to changes if they are deemed relevant to the company's operations and ethical conduct.