QUESTION 5 (16 marks) You are a student pursuing a Bachelor of Commerce (BCom) degree majoring in Accounting at a prestigious South African university. As part of your curriculum, you are required to complete an ethics course that includes studying and applying the IFAC Code of Ethics for Professional Accountants. During the academic year from January to December 2023, you encountered various ethical dilemmas in your coursework. One of your close friends, Mark, is also studying at the same university in a different program. You've known Mark for many years, and both of you have a good relationship based on trust and mutual respect. However, Mark recently confided in you about a potentially unethical situation he encountered. Mark has been working part-time as an intern at a local construction company, ABC Construction Ltd., since the beginning of the year. The company is involved in large-scale infrastructure projects and receives substantial government contracts. Mark revealed that some of the company's employees, including his supervisor, have been engaging in fraudulent activities to inflate project costs and embezzle funds. They manipulate invoices, exaggerate material costs, and bribe government officials to secure more favorable contracts. Mark is torn between loyalty to his colleagues and reporting the fraudulent activities. He fears retaliation and jeopardizing his internship, which is crucial for his career prospects. He seeks your guidance on what to do and whether reporting the misconduct aligns with the principles of integrity outlined in the IFAC Code of Ethics. REQUIRED: Analyse the ethical considerations and principles of integrity applicable to the scenario and provide guidance to Mark on the appropriate course of action. Consider the following aspects: 5.1 Assessing Integrity Principle: Evaluate how the principle of integrity outlined in the IFAC Code of Ethics for Professional Accountants applies to the fraudulent activities Mark disclosed at ABC Construction Ltd. (4 marks)

5.2 Reporting Misconduct: Discuss the moral dilemma faced by Mark in deciding whether to report the fraudulent activities, considering potential consequences and the alignment with the integrity principle. (5 marks)

5.3 Confidentiality: Explain the importance of maintaining confidentiality regarding the information shared by Mark, unless legal requirements or professional obligations dictate otherwise. (3 marks)

5.4 Professional Competence: Advise Mark to seek advice from qualified professionals, such as trusted faculty members or accounting professional organizations, to ensure his actions align with professional standards. (4 marks)