Sherry Chan has just started up a small corporation that produces jewellery. She has applied for and received a government grant. The grant will automatically be renewed as long as the business shows a profit at year end. Because she is trying to control costs, Sherry will prepare the financial statements. The bank has loaned Sherry money and is also waiting for the year- end statements. It will decide whether to renew the loan or not.

Instructions

Discuss the ethical issues of Sherry preparing her own financial statements.