ACCOUNTING

QUESTION 2 A. The Code of Ethics for Professional Accountants establishes ethical requirements for professional accountants. However, compliance with the fundamental principles of the Code may be threatened by a broad range of circumstances. Required Discuss each of the category of threat identified by the Code, illustrating each one with an example specific to qualified accountants. (20marks) B. You are a qualified accountant, working as a financial controller for an industrial firm which has substantial external borrowing. Sales revenue has fallen and for the first year the firm has recorded a loss. The CEO has told you to make every effort to ensure that the accounts report a profit for the year, as a loss may scare the lenders, and without that support, the business will fail and the fifty members of staff will be made redundant. Required Evaluate the ethical dilemma you face and establish the actions you should take. (10marks) (30marks)