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Eliza Larkin works as an accountant for Ditto.The business was established by the owner, Albert Cole. The business has experienced considerable growth recently and it

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Eliza Larkin works as an accountant for Ditto.The business was established by the owner, Albert Cole. The business has experienced considerable growth recently and it is also extremely profitable. Eliza Larkin's boss David Sykes has been complaining about the amount of income tax that the business is paying as a result of the high profits.David instructed Eliza to find ways of minimising the profit for the year in order to reduce the tax bill. He suggested deferring the recognition of some Revenue earned this year to next year. Eliza is very concerned about the situation and has come to you seeking advice. Answer the following questions in the spaces provided below: 1. Who are the stakeholders? List at least four of them. (2 marks) 2. What are the ethical issues? List and explain at least two issues. (2 marks) 3. What would you do if you were Eliza? List and explain at least two options for Eliza. (2 marks) 4. With reference to APES 110 Code of Ethics for Professional Accountants, discuss at least two relevant fundamental principles in this case. (2 marks)

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