Listed below are some of the roles that someone addressing accounting problems can have. The role can affect how the role-player approaches and analyzes an accounting problem. For each role listed below, explain the perspective the role brings to the analysis. (Example: an auditor for the Canada Revenue Agency examines accounting information to ensure an entity complies with the Income Tax Act and, as a result, pays an appropriate amount of tax.) In answering, consider the entity the person in the role is working for and the objectives of that entity, and apply these factors to explain how the role-player would approach providing advice on accounting problems.

a. Arbitrator. (An arbitrator is a person who helps resolve disputes between parties.

In an accounting setting an arbitrator might be asked to resolve disagreements over the accounting choices an entity made when, for example, the selling price of the entity is based on net income.)

b. Advisor to management of the entity.

c. Advisor to the board of directors of the company.

d. External auditor.

e. Advisor to a prospective lender.

f. Advisor to a major shareholder who isn’t involved in the day-to-day management of the entity.