Question 1: Casino's directors feel that they need a significant injection of capital in order to...

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Question 1: Casino's directors feel that they need a significant injection of capital in order to modernise plant and equipment as the company has been promised new orders if it can produce goods to an international quality. The bank's current lending policies require borrowers to demonstrate good projected cash flow, as well as a level of profitability which would indicate that repayments would be made. However, the current projected statement of cash flows would not satisfy the bank's criteria for lending. The directors have told the bank that the company is in an excellent financial position, the financial results and cash flow projections will meet the criteria and the chief accountant will forward a report to this effect shortly. The chief accountant has only recently joined Casino and has openly stated that he cannot afford to lose his job because of his financial commitments. Required: Discuss the potential ethical conflicts which may arise in the above scenario and the ethical principles which would guide how the chief accountant should respond in this situation Question 1: Casino's directors feel that they need a significant injection of capital in order to modernise plant and equipment as the company has been promised new orders if it can produce goods to an international quality. The bank's current lending policies require borrowers to demonstrate good projected cash flow, as well as a level of profitability which would indicate that repayments would be made. However, the current projected statement of cash flows would not satisfy the bank's criteria for lending. The directors have told the bank that the company is in an excellent financial position, the financial results and cash flow projections will meet the criteria and the chief accountant will forward a report to this effect shortly. The chief accountant has only recently joined Casino and has openly stated that he cannot afford to lose his job because of his financial commitments. Required: Discuss the potential ethical conflicts which may arise in the above scenario and the ethical principles which would guide how the chief accountant should respond in this situation