Dave Schonhardt, president of Schonhardt Industries, wishes to issue a press release to boost his companys image and maybe even its stock price, which has been gradually falling. As controller, you have been asked to provide a list of 20 financial ratios along with some other operating statistics relative to Schonhardt Industries first quarter financials and operations. Two days after you provide the ratios and data requested, Steven Verlin, the public relations director of Schonhardt, asks you to prove the accuracy of the financial and operating data contained in the press release written by the president and edited by Steven. In the press release, the president Dave Schonhardt, highlights the sales increase of 25% over last years first quarter and the positive change in the current ratio from 1.5:1 last year to 3:1 this year. He also emphasizes that production was up 50% over the prior years first quarter. You note that the press release contains only positive or improved ratios and none of the negative or deteriorated ratios. For instance, no mention is made that the debt to assets ratio has increased from 35% to 55%, that inventories are up 89%, and that while the current ratio improved, the acid-test ratio fell from 1:1 to 0.5:1. Nor is there any mention that the reported profit for the quarter would have been a loss had not the estimated lives of Schonhardts plant and machinery been increased by 30%. Steven emphasizes, The prez wants this release by early this afternoon.

Address the following questions in a 2 3 page APA formatted and citation styled essay.

• Who are the stakeholders in this situation?

• Apply two or more accounting codes of conduct to answer each of the following questions:

• Is there anything unethical in president Schonhardts actions?

• Should you as controller remain silent? Does Steven have any responsibility?

• Then compare your response to the questions that involved the accounting code of conduct to the ethical approaches.

• Which accounting code of conduct responses to questions "a" and "b" above would be supported by two of the ethical approaches? Explain