Question 1 Belinda decided to hire someone to analyse her companys numbers and do some management accounting. She requested her general manager, Jane, to hire someone who can fulfil this management accounting task. For doing some management accounting analyses, Jane hired Kathy the Plumber. Kathy is a licensed plumber. Also, Kathy is Janes sister-in-law and had been looking for a full-time job for a while. Jane has explained to the owner of Fridges-R-Fun that Kathy understands a lot about pipes, so she was pretty sure she would exceed in the role.

Required: Please state the main fundamental principle, as provided by the CIMA Code of Ethics, which is being jeopardized by Jane hiring Kathy the Plumber and justify why this fundamental principle is being jeopardized. Elaborate on how Jane could hire Kathy without jeopardizing any fundamental principle. Please note there might be more than one fundamental principles being jeopardized but only the main is required for this question. (Chapter 1, 10 marks)