Question 2 23 pts Andrew is a senior partner in the Ander & Sons Accounting firm. The managing director of a major client, Norne Ltd, asked Andrew to design some accounting tricks to boost the company's reported profit so that the members of Norne Ltd's senior management team would be eligible to receive large bonuses. Andrew determined that it is possible to design some complex and costly structures that would enable the management of Norne Ltd to avoid recognising losses made on certain investments. YOU are also a partner in the Ander & Sons Accounting firm. Andrew is unsure whether to accept the client's request and so asks YOU for advice. You have chosen the DECIDE model to help Andrew work through the problem. Required Label your responses a) b) c) d) and e) a) Define the ethical problem faced by Andrew. Identify the rights or duty owed by Andrew to the following three groups of stakeholders, Ander & Sons Accounting firm, Norne Ltd and users of the financial statements of Norne Ltd. (4 marks) b) Ethical review: Identify two principles relevant to the ethical problem faced by Andrew and explain why each principle is relevant. At least one principle must be from APES 110 Code of Ethics for Professional Accountants. (4 marks) c) Consider options: Describe two options that Andrew could consider. (2 marks) d) Investigate the ethical outcomes of each option suggested in part c) and make a recommendation. (11 marks) e) Decide: Assume Andrew adopts your recommendation. (2 marks) i) Explain which, if any, APES 110 ethical principles he would be complying with. ii) Explain which, if any, APES 110 ethical principles he would not be complying with. Question 2 23 pts Andrew is a senior partner in the Ander & Sons Accounting firm. The managing director of a major client, Norne Ltd, asked Andrew to design some accounting tricks to boost the company's reported profit so that the members of Norne Ltd's senior management team would be eligible to receive large bonuses. Andrew determined that it is possible to design some complex and costly structures that would enable the management of Norne Ltd to avoid recognising losses made on certain investments. YOU are also a partner in the Ander & Sons Accounting firm. Andrew is unsure whether to accept the client's request and so asks YOU for advice. You have chosen the DECIDE model to help Andrew work through the problem. Required Label your responses a) b) c) d) and e) a) Define the ethical problem faced by Andrew. Identify the rights or duty owed by Andrew to the following three groups of stakeholders, Ander & Sons Accounting firm, Norne Ltd and users of the financial statements of Norne Ltd. (4 marks) b) Ethical review: Identify two principles relevant to the ethical problem faced by Andrew and explain why each principle is relevant. At least one principle must be from APES 110 Code of Ethics for Professional Accountants. (4 marks) c) Consider options: Describe two options that Andrew could consider. (2 marks) d) Investigate the ethical outcomes of each option suggested in part c) and make a recommendation. (11 marks) e) Decide: Assume Andrew adopts your recommendation. (2 marks) i) Explain which, if any, APES 110 ethical principles he would be complying with. ii) Explain which, if any, APES 110 ethical principles he would not be complying with
