You are the controller for ABC Home Media. During the beginning of January 2017, when the company was adjusting and closing the accounting records for the calender year, you were home sick with the flu. You therefore relied on your assistant to complete much of the work. The company reported net income for 2017 of $125,000, down from $140,000 in 2016. In February, after the financial statements have been issued and distributed to the companys investors and creditors, you discover that your assistant overlooked adjustments to insurance expense, depreciation expense and utilties expense resulting in an overstatement of net income by $12,500. You immediately inform the company president of the overstatement and suggest correcting the errors and re-issuing the financial statements.The company president is concerned that investors were not happy about the lower profits reported in 2017. He feels that 2018 is going to be a better year for the company. Therefore he prefers to keep quiet about the financial statement errors in 2017 and adjust the accounting records for the errors in 2018

Question

a.Who are the stakeholders in this situation?

b.What are the ethical issues in this situation?

c.What would you do as controller in this situation?