You are one of three partners in a firm of accountants. Five years ago the firm was appointed as external accountants to a young, successful and fast-growing company, engaged to prepare year end accounts and tax returns. The business had started trading with a handful of employees but now has a workforce of 200, while still remaining below the size of company requiring a statutory audit. Due to your close relationship with the directors of the company (who are its owners) and several of its staff, you become aware that staff purchases of goods manufactured by the company are authorised by production managers, and then processed outside the accounting system. The proceeds from these sales are used to fund the firm's Christmas party. Parts: 1. Discuss the improper accounting for sales in the scenario. (2 marks) 2. What are some of the ethical questions that you will ask to yourself in light of the fundamental principles of professional code of conduct for accountants? (8 marks) CASE 4: 10 marks Richard Burrows, Chairman of British American Tobacco (BAT), welcomed their various stakeholders in a detailed Annual Report of 2015. The chairman's message section to stakeholders outlines the following statements: ... For us, sustainability is not a choice or something that is nice to have, it is crucial to securing the future of our business by creating shared value for consumers, our customers and our shareholders. That is why, in addition to our continued investment in our traditional brands, our high growth markets, our systems and our people, we developed our sustainability Agenda, focusing on tobacco harm reduction, sustainable agriculture and farmer livelihoods, and corporate behavior ... (Statement 1) ... I am pleased to report that we maintain our strong record on Board diversity, both in terms of gender and in the wide range of relevant backgrounds and nationalities represented among our Directors ... (Statement 2) Source: Annual Report, 2015 p. 5 Parts: 1. With reference to Statement 1, comment on why corporate bodies such as BAT are required to have sustainability as one of their fundamental goals in modern era of doing business and the relevance of sustainability for developing country companies such as in Fiji. (5 marks) 2. With reference to Statement 2, evaluate on the need for having gender equality and diversity aimed at senior management levels in corporate entities