Can you help me with this question on accounting ethical standard:

John works in a small consultancy firm and that suffers a large income decline. During the current month, a contract was not renewed and it seems quite clear that the firm needs to go into insolvency. One of the firm's directors is demanding to have his expenses settled as a top priority. These have not been authorized especially since there are no supporting documents, despite the firm's policy and repeated request. What is your ethical response for this?

My answer: Under the IMA Statement of Ethical Professional Practice para IV (2017) : credibility which states that :

An Accountant must provide all relevant information that could reasonably be expected to influence an intended users understanding of the reports, analyses, or recommendations.

and also;

Report any delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

My question is, how do i then continue in providing my recommendations here ?