Lolwa serves as a senior in a small office of a regional audit firm; she has been assigned a new client that recently engaged the firm. Fashion First is a successful retail store, which is run by a single owner/manager, Jasim, who makes all major decisions.

At her first visit to the clients office, Lolwa is introduced to Sara, the part-time bookkeeper who is also a full-time accounting student at Qatar University. At a subsequent meeting, Sara told Lolwa that she hardly found the job, and she needs the money to help finance her education. Feeling that Lolwa is someone she can talk to and get advice from, Sara describes a situation that has been on her mind for some time now. Saras concern relates to the handling of sales revenues.

After looking over some of these weekly deposit forms, Sara noticed that QAR 1000 cash was missing from each deposit. After a more thorough inspection of monthly tax documents that Jasim has filled out, Sara noticed that the reported monthly gross revenue was QAR 4,000 less than what had been actually counted. The owner is the only person handling the money after it has been counted. He is also the only one to deposit the money. When Sara asked Mr. Jasim about revenue not being reported for tax purposes, he assured her that every dollar of income was reported on the tax forms. Furthermore, Jasim asserted, since Sara wasnt the person who signed the forms, she shouldnt be concerned.

Required: Please answer the following questions

1. What are the ethical issues in the above case if any? Please explain these issues, if any (2 Marks)

2. Who are the primary stakeholders affected in the above case? (1 mark)

3. What are the possible alternatives for both Sara and Lolwa? How ethical are those alternatives? (1 mark)

4. What actions would you advise both Sara and Lolwa to take? (1 marks)