This year, ABC company is experiencing financial difficulties. It has inadequate cash and working

capital. Due to its poor working capital, it is on the verge of defaulting on a note payable held by

its bank.

At the end of the fiscal year, the company$$s CEO instructed Brian, the financial controller not to

record several invoices of office furniture and supplies, which amount is significant, as accounts

payable. Brian objected since the invoices should be recorded as they are genuine liabilities borne

by the company. However, the CEO insisted that the invoices not be recorded until after year$-$end,

at which time it was expected that the note payable could be extended by the bank. After some

serious objections and argument, Brian finally complied with the CEO$$s instructions.

Required:

$($a$)$ Determine and explain TWO standards of IMA$$s Statement of Ethical Professional Practice

which Brian has potentially violated. $(6$ marks$)$

$($b$)$ According to IMA$$s Statement of Ethical Professional Practice, recommend what the

appropriate courses of action that Brian should take when facing this ethical conflict if he does

not wish to comply with CEO$$s instruction. $(4$ marks$)$