Question
Susannahs Sweets Pty Ltd has cash flow problems due to Covid -19 shutting cafes, so Zoe the Manager is applying to the bank for a
Susannahs Sweets Pty Ltd has cash flow problems due to Covid -19 shutting cafes, so Zoe the Manager is applying to the bank for a loan. Elizabeth is the accountant at Susannahs Sweets Pty Ltd. Elizabeth has discovered that some assets are overstated in this years Financial Statements, because Depreciation was not done. Elizabeth tells Zoe that the Financial Statements need to be corrected before they are submitted to the bank, as part of the loan application. Zoe replies that the bank would not approve the loan if the real financial position was known, so tells Elizabeth that she must not correct the Financial Statements. Zoe says that if Elizabeth tells anyone it will be her fault if the business closes and everyone loses their jobs. Required: Answer each question in the spaces provided below: a) Name 4 stakeholders in this situation? (2 marks) b) Explain two of the Ethical Principles affected in this case. State the principle and explain why you believe there are issues. (4 Marks) c) Name two (2) potential Ethical Threats in the above case and provide your reasoning as to why you believe they are threats. (4 Marks)
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