Daisy, an intern accountant at Tinned Food Company, noticed that supplies were recorded as suppliers expense when purchased.

She told her manager, Jack, who is the Financial Controller at Tinned Food Company. Jack wants to leave the accounting records as they are.

He told Daisy to not tell anyone about the incorrect treatment because he feels it will be too much work to complete the necessary adjusting entry, to revise the Worksheet and to redo the Financial Statements. Jack tells Daisy that if she does not remain silent, she will lose her internship.

1. In relation to APES 110 Code of Ethics, state two fundamental principles that have been violated, and explain why each has been breached? (4 marks)

2. In relation to APES 110 Code of Ethics, name two potential threats and comment on each. (2 marks)