Leanne is a management accountant working as a volunteer in a large charity, Charity Inc., which supports impoverished communities. Her brother-in-law owns a small company, Small Pty Ltd, which provides service to Charity Inc. When preparing the performance report for the service providers, Leanne noticed Small Pty Ltd was underperforming, and it was likely to have its contract terminated by Charity Inc. Before finalizing the performance report, Leanne calls her brother-in-law and tells him regarding the report she is preparing, and the risk Small Pty Ltd might have its contract terminated. She also tells her brother-in-law what the other service providers are doing for avoiding underperforming and keep their contracts with Charity Inc.

Required

(a) Identify two of the fundamental principles, as provided by the Chartered Institute of Management Accountants (CIMA) Code of Ethics, which are being jeopardized, and explain why these two fundamental principles may be jeopardized.

(b) Explain how Leanne could help her brother-in-law without jeopardizing these two fundamental principles.