Solar Light Pty Ltd has cash flow problems. The accountant, Edith, wants to apply to the bank for a loan. Edith knows that the bank will not approve the loan based on the liquidity represented in the Balance Sheet. Edith decides to overstate the assets and understate the expenses by ignoring depreciation for the financial period. Herman who is an intern in the accounting department at Solar Light Pty Ltd notices that Depreciation is missing from the Financial Statements and notifies Edith of this. Edith tells Herman that the Financial Statements will remain as they are and tells Herman that if he informs anyone about the situation, it will be his fault if the business has to close down and everyone loses their job. Required: 1. In relation to APES 110 Code of Ethics, state two fundamental principles that have been violated, and explain why each has been breached? (4 marks) 2. In relation to APES 110 Code of Ethics, name two potential threats and comment on each. (2 marks) 7 B. T Ff 1. In relation to APES 110 Code of Ethics, state two fundamental principles that have been violated, and explain why each has been breached? (4 marks) 2. In relation to APES 110 Code of Ethics, name two potential threats and comment on each. (2 marks)