Question: Easy Gas Pty Ltd has cash flow problems and so, Harold, the Managing Director, is applying for a bank loan. Emma, the accountant at Easy
Easy Gas Pty Ltd has cash flow problems and so, Harold, the Managing Director, is applying for a bank loan. Emma, the accountant at Easy Gas has discovered that some assets are overstated in this year's financial statements, because Depreciation was not done. Emma informs Harold that the financial statements need to be corrected before they are submitted to the bank. Harold replies that the bank would not approve the loan if the real financial position was known to them. Harold tells Emma that if she informs anyone else about the omission, it will be her fault if the business does not receive the loan from the bank. Harold also states that cash flow issues might mean that they have to make some people redundant. Required: 1. Name 2 Stakeholders affected in this case and discuss the impact on each of them (2 Marks) 2. In relation to APES 110 Code of Ethics, state two fundamental principles that have been violated and explain why each has been breached (6 Marks) 7 " B I 6 F E E % 3 O 1. Name 2 Stakeholders affected in this case and discuss the impact on each of them (2 Marks) 2. In relation to APES 110 Code of Ethics, state two fundamental principles that have been violated and explain why each has been breached (6 Marks)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
