Review the following situation and respond to the two questions below:

Amy McAlister is a junior accountant for ABC Co. The president of the company has informed Amy that the financial statements must be up to date and finalized before the end of the week when he will be meeting with several investors to secure a loan for the business. Amy knows she will not be able to prepare the entire set of adjusting entries that must be posted before the statements will accurately portray the companys performance and financial position for the fiscal period. She decides to make estimates of expenses accruals and uses low estimates so as not to make the financial statements look worse than they might actually be. Amy completes the statements by the end of the week and gives them to the president not mentioning the assumptions she has made.

1) What are the ethical issues with this situation?

2) What alternate courses of action could Amy have taken?