A Manufacturing company has just employed Mr.Afavi as the Finance Director. The previous Finance Director, Mr. Koomson, completed the financial statements for the year ended 31st December 2021 before he left. The Auditors of the company are also done with the financial statement audit for the year, expressing an unmodified opinion on the accounts. Mr. Koomson is loved by the General staff, Management members and the Board of Directors for his ability in making the organization profitable over the years, and guaranteeing increased end-of-year bonus payments to staff, as a consequence. Mr. Afavi wanted to familiarize himself with the operations of the company, and therefore decided to go through the financial statements for the previous year. He is dismayed to find several errors in the financial statements. The previous Finance Director, Mr. Koomson, prepared several Page 5 of 5 Compiled by Bright Adu Bonsu adjusting entries in January,2022 to reflect in the 2021 financial statements. Ebenezer had recognized revenue on a large order received on December 28, 2021 but shipped on January 3, 2022. The narration or explanation given to this adjusting entry is, omission of previous year sales, now recorded. Also, purchase of inventory in October 2021, which was fully sold by the end of the year had been recognized in January 2022. Finally, depreciation expense had been reduced by GHS230,000. All these adjustments were designed to increase profit after tax or earnings per share, culminating in increased bonus payment to Management and the General staff. Required: (a) In accordance with the IFACs code of ethics, assess THREE (3) possible fundamental ethical principles that might have been breached. (b) Recommend the possible actions that Afavi, the new Finance Director, should take as a member of the Institute of Chartered Accountant, Ghana in dealing with this ethical dilemma.