Crown, CPA, is the controller of a furniture company operating in Manitoba, Canada. As part of his duties, Crown prepares the company's tax returns. While preparing these returns for the current year, Crown is told by the company's president to reduce the amount of inventories by $1,000,000, so as to reduce taxable income and conserve the company's cash. Crown complies with the president's request since he believes that the amount involved is not material, as taxable income after the reduction in inventories will still be about $12,000,000.

Indicate whether the CPA-Canada Code of Ethical Principles and Rules of Conduct has been violated or not violated. Explain your reasoning.