a. Describe financial statements analysis. (4 Marks) b. Case Study - Improper accounting for sales Outline of the case Jennica is one of three partners in a firm of accountants. Five years ago, the firm was appointed as external accountants to a young, successful, and fast-growing company, engaged to prepare year end accounts and tax returns. The business had started trading with a handful of employees but now has a workforce of 200, while remaining below the size of company requiring a statutory audit. Due to Jennica's close relationship with the directors of the company (who are its owners) and several of its staff, she has become aware that staff purchases of goods manufactured by the company are authorized by production managers, and then processed outside the accounting system. The proceeds from these sales are used to fund the firm's Christmas party. REQUIRED: i. Discuss the key fundamental principles of ethics that is relevant in this case. (4 Marks) 11. Analyze the relevant facts, identity of affected parties and who should be involved in the resolution. (5 Marks) 111. Evaluate the ethical issue(s) and recommend a possible course of action. (12 Marks)