Conceptual Framework (Materiality)

A company for which the majority of shares are owned by a family appointed you as the Finance Director.After some financial difficulties, a bank and a venture capital firm have invested and acquired over 33% of the shares, but no Board of Directors (BOD) meeting was held concerning the matter.The Bank and Venture Capital firm will continue to support the company financially depending on the company's achievements and performance. You have been told that if you record the "right" numbers, you will receive a large bonus and be awarded 1% of issued shares as share options.

The company is secretive with as little information as possible being given to the auditors and the investors. You believe that some accounting numbers may be being 'massaged'.You have tentatively raised your concerns with the father and son, the Chairman and Chief Executive, respectively. You have been told that if you pursue the matter or fail to report the 'right' numbers, you will lose the bonus and share options.

Explain how you can avoid your financial interest (personal interest) influencing your professional judgement?