The definition of stakeholder is that any person or organization could be related to the value and influenced by the actions of company (O’Riordan & Fairbrass 2013). Avalon is a junior accountant working in ACAS, and her boss is Lara, who is managing partner of ACAS and a CPA with 20 years’ experience. Except the employees in ACAS, Max is the CEO of Summar Limited, who is tending to be the client of ACAS. In addition, bank is one of the stakeholders that is possible to provide the bank loan for Summar Ltd to increase their share allotment. Avalon as staff in ACAS tend to attract and satisfy the potential investors. She wants to attract Summar Ltd to engage in ACAS. Similarly, Lara has the same expectation as Avalon that accounting company …show more content…
The important role they play is to assist their loyal clients to achieve their perspectives quicker and more efficiently. Similarly, the main responsibility of them is to fairly and equally reflect the issues their clients could have, and then they can take the effective actions to overcome the difficulties. Avalon as a junior accountant is required to meet with Max, whose company has been experiencing the financial difficulty. Although Max wants to increase the earnings by reclassifying the company marketable securities from the trading investment to t available-for-sale category, Avalon has to record and collect any real financial information and data which actually reflect the situation the company are facing. According to APES 110, the objectivity and integrity are the basic principles the accountant should have. Regardless of suggestions that clients provided to the accounting firm, the accountant has to follow the accounting standards and principles to regulate these kind of financial …show more content…
Beyond the auditors themselves, the subtle relationship between accounting rules and political pressure has the decisive factor of changes in accounting investment. According to(), the political factors will have several aspects that influence the development of company. To be discussed in detail of political pressures, it could be consist of economic purpose and governance. As stated in Naughton, Petacchi and Wbber (2015), the accounting rules could affected by the economic orientation which is one of the political pressures. To explain in brief, the purpose of economic orientation of accounting rules is to protect the organization that achieve the benefits. For example, the investor leading will prevent their benefit from loss. However, it is actually against the regulation of accounting rules since these accounting rules should be objective and