Queenstown Marina noticed an error in their financial statements after the financial statements had been submitted to their bank. The company is applying for a new loan to install a new wharf. The controller of Queenstown should
A) wait until the bank has approved the loan to notify them of the mistake.
B) inform Queenstown's management and assume that they will tell the bank.
C) inform Queenstown's management and inform the bank and provide corrected financial statements.
D) do nothing or resign.

Question

Quizplus · Accepted Answer

The controller should inform both the management of Queenstown and the bank about the mistake and provide corrected financial statements. This ensures transparency and maintains trust with the bank, which is crucial for the loan application process.

Queenstown Marina Noticed an Error in Their Financial Statements After