With reference to APES 110 Code of Ethics for Professional Accountants, discuss the ethical issues that may arise in each of these cases.

CASE 1 You are financial director of a large multinational organisation and have been made aware of information about a takeover bid to acquire a competitors firm. A family friend is considering selling shares in this rival organisation and has asked you, as an expert in the industry, for advice on this matter. What would you do? Which principles are affected and how?

CASE 2 You are a certified public accountant who has recently joined a small company that processes food. The company is effectively run by one director. The other directors are non-executive and all have close personal relationships. As a key member of the finance team you have discovered that some employees are being paid cash in hand and not via the formal payroll. You also have suspicions that some of these people are being employed illegally and you have no records of their formal employment documents or contracts. What would you do? Which principles are affected and how?