As the management accountant, you have been approached by James to “improve” the look of the financial statements that will be presented to the bank to secure funding for Foleo’s expansion plans.

Write a report to James and Leon explaining why the use of “creative accounting techniques” is unethical.  In your report include:

two (2) of the five (5) fundamental principles of the Code of Ethics for Professional Accountants that you would breach by complying with his instructions (and explain why)                                                                                          

an example of a high profile corporate collapse directly related to “creative accounting”.                                                                                                             

the possible impacts of “creative accounting” on stakeholders other than Foleo Ent. Pty Ltd.                                                                                                                      

a viable alternative to “fudging the books” for James to secure the bank’s funding.