Question
You are a Chartered Certified Accountant and the newly appointed Internal Auditor of a company that is experiencing financial difficulties. As a condition for obtaining
You are a Chartered Certified Accountant and the newly appointed Internal Auditor of a company that is experiencing financial difficulties. As a condition for obtaining bank loans, the company has agreed to maintain specified liquidity ratios, assets to liability ratios and gross profit margins. The draft financial statements for the period shows that the company has not succeeded in complying with some of these requirements. The profit figures are significantly affected by the calculation of bad debts and depreciation charges. There have been suggestions that these could be changed in order to meet the banks conditions. There is a real danger that if the bank withdraws its funding, the company will become insolvent and will have to cease trading. The Chief Financial Accountant has asked you to sign certain internal records that have been altered in order to show that the banks conditions have been met.
Using a six-step approach ethical dilemma framework, explain how the ethical dilemma may be resolved in these circumstances.
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As a Chartered Certified Accountant and the newly appointed Internal Auditor you face an ethical dilemma when asked to alter financial records to meet bank loan conditions Below is a sixstep approach ...Get Instant Access to Expert-Tailored Solutions
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