Discuss at least two relevant fundamental principles

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Question - Bob works as an accountant for Wizard Gym. The business was established by the owner, Helen Clark. His boss, Frank, is concerned that the profitability of the business has been declining. He is afraid the owner may implement cost reductions by terminating staff if profitability does not improve.

At the end of June, it appears that Wizard Gym will make a loss. Frank instructed Bob to find ways of reporting a profit for the year. He suggested that no year-end accounting adjustments be made this year for accrued expenses and depreciation.

Answer the following questions in the spaces provided below:

1. Who are the stakeholders? List at least four of them.

2. What are the ethical issues? List and explain at least two issues.

3. What action would you take if you were Bob? List and explain at least two options for Bob.

4. With reference to APES 110 Code of Ethics for Professional Accountants, discuss at least two relevant fundamental principles in this case.

Reference no: EM132618338

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