(c) Discuss the ethical responsibility of the company accountant in ensuring that manipulation of the statement
of cash flows, such as that suggested by the directors, does not occur. (5 marks)
Note: requirements (b) and (c) include 2 professional marks in total for the quality of the discussion.
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(c) Companies can give the impression that they are generating more cash than they are, by manipulating cash flow. The wayin which acquisitions, loans and, as in this case, the sale of assets, is shown in the statement of cash flows, can change thenature
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(c) Companies can give the impression that they are generating more cash than they are, by manipulating cash flow. The wayin which acquisitions, loans and, as in this case, the sale of assets, is shown in the statement of cash flows, can change thenature