Rhonda Jenkins is the senior accountant for Janitorial Supplies, Inc., a regional supplier of janitorial supplies to multiple Fortune 500 companies with a December fiscal year-end. As Rhonda was preparing the 2016 financial statements for publication, she noticed several odd transactions for December in the general ledger. For example, rent on the office and warehouse for January 2017, which was paid on December 15, was recorded by debiting rent expense instead of prepaid rent.

On another transaction, Rhonda noticed that the purchase of cleaning supplies was recorded with a debit to insurance expense instead of cleaning supplies inventory. Rhonda continued to discover that the December ledger contained numerous such errors. In spite of these errors, the trial balance was correct.

Rhonda traced all of these errors back to the hiring of a part-time bookkeeper, who just happened to be her nephew, and was working during his semester break to earn more money for his schooling. After speaking with her nephew, she decided that the mistakes were not made intentionally, but due to a lack of financial accounting experience.

Discuss what ethical issues are involved for the business and Rhonda personally as senior accountant.

Analyze and prepare a response with Rhonda's alternatives. Then, decide which would be the most ethical with regards to the business.