4. Read the following ethical situations below and answer the questions that follow.

i. David is responsible for the purchase of computer equipment in a firm. Quotes from three suppliers have been received for installation of new hardware. One supplier has promised a 15% discount payable to David if their quote is accepted.

ii. Masego is preparing the management accounts for a firm. Tebogo, the senior management accountant, has instructed Masego to omit the negative overhead variance from the accounts on the grounds that they show an unacceptable loss with the inclusion of the variance. Required: For each of the situations above:

a. Identify and explain the ethical threat to the professional. (8 marks)

b. Discuss the ethical safeguard available to overcome that threat. (8 marks)