(a) You are a Chartered Certified Accountant and the newly appointed internal auditor of a company that is experiencing financial difficulties. As a condition for obtaining bank loans, the company has agreed to maintain specified liquidity ratios and gross profit margins. The draft financial statements for the period appear to show that the company has not succeeded in complying with some of these requirements. There has been suggestions that these could be changed in order to meet the banks conditions. There is a real danger that if the bank withdraws its funding, the company will become insolvent and will have to cease trading. The chief financial accountant has asked you to sign certain internal records that have been altered in order to show that the banks conditions have been met.

Using a six step approach ethical dilemma framework, explain how the ethical dilemma may be resolved in these circumstances.