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You work in the finance department of a company that manufactures domestic kitchen appliances for sale and export across the world. One morning, the Financial

You work in the finance department of a company that manufactures domestic kitchen appliances for sale and export across the world. One morning, the Financial Controller (FC) asks you to step into his office and behind a closed door he informs you that the company needs to create a fund for any possible future warranty claims. These claims may arise in the next financial year due to a proposed new product launch which is being kept secret to preserve the companys competitive advantage in the market. Consequently, he requests you to start posting journals that will create a provision for this purpose but to make them discretely, so they do not attract attention. Several months later, you note that the new product still has not been launched and on investigation, you discover that the provisions you created have been used to supplement the companys profits by being released unevenly into the statement of profit or loss to manipulate the companys earnings per share figure (eps). You challenged the FC but was told that, as you signed off the journals creating this, you should just forget about it and hope nobody else discovers it. What should you do in this situation? I. II. III. Take the FCs advice and do nothing Take copies of all relevant emails and journals and forward them to your personal email account Discuss the situation with the companys Finance Director (FD)
IV. Discuss this with the companys Senior Independent Non-Executive Director V. Contact the press and tell them the story Choose the correct option a) I only b) II and III c) II and IV d) II and V

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