assets in this year's financial statements. The misleading financial statements are contained in the company's annual report,which is about to be issued to banks and other creditors.After much thought about the consequences of telling the managing director, Peter Wilkins, about this misstatement, you gather your courage to tell him.Peter says,'What they don't know won't hurt them. But just so we set the record straight, we 'll adjust next year's financial statements for this year's misstatement. We can fix it next year when we make more profit.Just don't make that kind of mistake again.'
Please answer these questions
1 Who are the stakeholders in this situation?
2 What are the ethical issues??
3 What would you do as the chief financial officer?
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