QUESTION 2 [35 MARKS] 2.1

As a financial professional and potential manager, you need to be aware of the impact of business ills such as corruption, bribery, and fraudulent financial reporting on the environment, society, and governance (known as ESG factors). How would you advise the executives at Ernst & Young (EY) to approach and remedy this scandal? The use of practical examples in your response will garner you higher marks. (25)

2.2 The company you recently joined and now work for as a finance manager has been involved in fraudulent financial reporting and underhand dealings in its service provisions under its previous financial manager. A recent investigation discovered that these two aspects have been ongoing since the company was formed in 2001. The board has requested you to formulate internal controls and ethical guidelines to ensure that fraudulent financial reporting and underhand dealings will not occur in the future or at least mitigate their occurrences in the future. The internal controls and ethical guidelines you formulate should be presented in a memo to the board. (10)