Accounting

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Authors Note:

1ACCOUNTING
Table of Contents
Answer to Question a:................................................................................................................2
Answer to question C:................................................................................................................3
Answer to the Question D:.........................................................................................................5
Answer To Question E:..............................................................................................................6
Answer to question F:................................................................................................................7
Reference..................................................................................................................................10

2ACCOUNTING
Answer to Question a:
Stakeholder:
The stakeholder is the party or group of individual who has a substantial interest in
the company and they might affect or get affected by the business activities. In the ordinary
concept, the stakeholders are those who have a substantial relationship with the company or
the business, like employees, owner, investor, suppliers, and others.
In the given case, the prime stakeholders are Freda the owner of the Vroom Ltd, and the
accountant Lucia. In the given case both the above-stated persons are liable as on the grounds
of unavailing the benefits of the grant (Sambo and Webb 2017). It is the responsibility of the
government whether to provide grant aid to the company or not. The owner will be
responsible for performing unethical trade practice in an unlawful manner if the owner
influences to make an adjustment in the books to lower the profits. In such cases the
Accountant will also be held in contempt as it is the responsibility of the accountant to make
the accounting properly and in an ethical manner. If such practice is associated then both the
owner and accountant will be the stakeholder of the situation (Everett et al. 2016).
Answer to question b:
In the context of the study, two possible outcomes may have raised. The presented
issue in that if the company projects a higher profit in the books then the government
authority might stop the grant aid to support the company. The grant aid is a substantial
inflow of the company as this help the company to operate and train the apprentices who are
not qualified, workers. The training will bring the skill of the employees; the grant lowers the
cost of training as the government finances a major portion of the training. The government
in order to increase the efficiency and the skill of the public provides the grant. The company
receives the grant because it performs the training procedure not for saving the company from

3ACCOUNTING
the loss. For the uninterrupted flow of cash inflow, the owner of the company asked the
accountant to lower the profits by increasing the amount of provision and other expenditures
in the coming financial year to provide an impression that the company is expected to
perform poorly (Louwers et al. 2015).
Another issue that might have come into consideration that the owner has promised
the accountant to pay a bonus of $10000 if the company is able to make a profit of $ 1 million
in the current financial year. If the company is able to make profits of $2 million then the
company will pay $ 20000 to the accountant Lucia as a reward of performance. If the
company has obtained the profit of $ 3 million then the company will pay a reward of $
300000 to the accountant. There are several chances that the owner may have promised to the
accountant to increase the performance and Freda had not intercepted that the company has to
pay $30000 as a bonus to their accountant Lucia (Ciavattini et al. 2015). As the company has
gained profits of $ 3.5 million in the current accounting year, now the owner is reluctant to
pay the tax obligation and obligation related to remuneration that is due by the company.. In
addition to that, such practice performed by the company can de-motivate the employees, as
the company is not performing the promised obligations.
Answer to question C:
In the given case, the identified issue of concern is that Vroom ltd wanted to lower the
margin of profits to avail the benefits from the government. As for the training of the
apprentice, the government provides $ 100000. This initially helps the company to make
healthy and quality workers for the car parts production (Agheorghiesei 2018). The emerging
issue that has been identified by the owner of the company is that the company has earned a
profit of $3.5 million for the current financial year. If the company is earning such amount of
profit then the grant that is received by the company from the government of, Australia will
not be received in the future. In that case, the owner asked the accountant to make suitable