personal communication

You are the Financial Controller of a manufacturing company, reporting to the Financial Director, and you are finalising the year end accounts. The accounts are currently in draft form. You have recently been advised by a more junior member of staff that the credit controller has been providing misleading information about the age of some of the amounts owed by customers. It appears that the reality of the situation is that a significant proportion of these debts are probably now uncollectable and should be written off. This could push the company into insolvency which would result in job losses for 400 employees.
You have made the Financial Director aware of the situation, but she has expressed a wish not to alter the figures in the draft accounts and has asked you not to do so.
Introduction
This essay will show you the ethical theory and issues which are relevant to the qualified accountant and the company which are related to the scenario. It will also show the applicable fundamental principles of the professional body code of the dilemma and explaining how. Also you as a qualified accountant need to take in action for the appropriate course, in this case the professional body’s code ethics.
Qualified accountant
One of the codes of ethics which involves the accountant is Professional Competence and Due Care. The involvement of this ethic is shown when the accountant figured out some of the accounts was misleading. Therefore appropriate action was taken place by involving the financial director. Another code of ethics for this scenario is Professional Behaviour. The involvement of this ethical issue is that the accounts did not show a true and fair view which means that the law and regulations was not obeyed. Looking at the scenarios errors where found by junior members meaning that the accountant did not check the draft accounts properly. Furthermore another Ethical issue for the accountant is Integrity. This relates to the accountant by him being