Q1: Role & Responsibility
a) Role: What is the significance of “professional” in “professional accountant”?
b) Responsibility: Why are we mainly considered with recommending accounting policy in this case
and not the actual review
Q2: Identify Stakeholders
Discuss: What determines whether a person or entity is a stakeholder?
Q3: Identify/ explain Critical Stk/H
Discuss: What distinguishes a stakeholder as critical?
Q4: Critical Stakeholder’s Objectives
Discuss: What factors influence this notion or concept, in the context of an accounting case?
They want to make their income but also don’t lose the loan
Q5: Conflict of interest (bonus)
Notice: “important” potential conflict!
Kelly is interested in dividends from the company but the bank wants to keep the equity fairly
Q6: key facts
AWI must follow GAAP – (this is not a fact, this might be a recommendation)
The bank loan must be repaid over 4 years! - (this will impact cash management! It will also
impact financial disclosure/presentation but it not a key fact)
AWI is a private company- (this is a key fact)
AWI provides a 30-day return policy on all sale