Answer:
Explanation:
1.The ethical issues are bad faith and false statement. Sarahh's dishonesty may get her into problems for involving in deceptive activity, though it might be a mistake of some one else. The coalition of numbers will result into the mistake remaining and the equipment account misstated.
2. The share holders, the management, the employees etc. are the stakeholders
3. The following are Sarahh’s alternatives:
a) Sarahh could discuss the issue with the chief accountant, so that he can give a worthy insight might be given to locate the error
b) She could get the management informed about the divergence and make a request for few more days to identify and correct the error, so that a dependable and accurate financial statement can be issued.
c) Another alternative is for her to get the report issued only to the management for their consideration while the error is unaltered, and inform them that only few days will be required for the error to be identified and amended .
4. I would rather choose the third alternative (C). Reason being that once the management considers and approves the financial statements it is very sure that the error would be identified and also once they get aware of the divergence, they can take a financial decision with respect to the account mismatch.