ACC - Corporate Governance - Assessment 2

T-1.8.
1_v3
Details of Assessment
Term and Year Term 1, 2020 Time allowed 8 Weeks
Assessment No 2 Assessment Weighting 60%
Assessment Type Assignment
Due Date Week 8 Room
Details of Subject
Qualification FNS60217: Advanced Diploma of Accounting
Subject Name Corporate Governance
Details of Unit(s) of competency

Unit Code (s) and
FNSACC624 Monitor Corporate Governance Activities
Names
Details of Student
Student Name Bishnu Maya Shyanbo
College Australian College Of Technology Student ID 20183376
Student Declaration: I declare that the work submitted is my

own and has not been copied or plagiarised from any person Student’s
or source. I acknowledge that I understand the requirements Signature: ____________________
to complete the assessment tasks. I am also aware of my
right to appeal. The feedback session schedule and Date: _____/_____/_________
reassessment procedure were explained to me.
Details of Assessor
Tanim Khan
Assessor’s Name
Assessment Outcome
Assessment
Competent Not Yet Competent Marks /60
Result
Feedback to Student
Progressive feedback to students, identifying gaps in competency and comments on positive
improvements:
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
Assessor Declaration: I declare that I have conducted

a fair, valid, reliable and flexible assessment with this
student. Assessor’s
Signature: ___________________
Student attended the feedback session.
Date: _____/_____/________
Student did not attend the feedback session.
ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 1

Last updated on 18/09/2019
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Purpose of the Assessment

Not Yet
The purpose of this assessment is to assess the student in the Competent
Competent
following learning outcomes: (C)
(NYC)
FNSACC624 Monitor Corporate Governance Activities
1.1 Monitor organisation’s application of and compliance with
professional and legal accounting standards to identify emerging
trends and interpretations of statutory and other regulatory
requirements
1.2 Research audit reports and practices to assess methodologies
and recommendations
2.1 Analyse organisational practices to identify corporate governance
obligations and performance
2.2 Examine queries from statutory and other regulatory authorities
for corporate governance failure to assess change effects on internal
control procedures
2.3 Assess content and structure of reports, returns and processes to
evaluate efficacy of policies being followed by organisation
3.1 Analyse and monitor internal control procedures to determine
performance indicators for compliance with corporate governance
requirements
3.2 Evaluate information technology systems to determine their use
and suitability for recording data from operations and transactions for
corporate governance obligations
3.3 Establish management processes to support corporate
governance
3.4 Establish reporting plans to ensure completion of compliance
requirements within agreed timeframes
4.1 Assess achievement of performance indicators and determine
sources of variance against established performance targets
4.2 Monitor compliance preparation processes and review in line with
corporate governance requirements
4.3 Analyse failures in compliance to diagnose shortcomings and to
improve processes, in line with corporate governance requirements
Assessment / evidence gathering conditions
Each assessment component is recorded as either Competent (C) or Not Yet Competent (NYC). A
student can only achieve competence when all assessment components listed under “Purpose of
the assessment” section are recorded as competent. Your trainer will give you feedback after the
completion of each assessment. A student who is assessed as NYC (Not Yet Competent) is eligible
for re-assessment.
Resources required for this Assessment
 All documents must be created in Microsoft Word/ Excel and PowerPoint
 an integrated financial software system and data
 Corporate governance documentation and organizational operational policy and procedures
information. FNS60217 Advanced Diploma of Accounting
 Upon completion, submit the assessment printed copy to your trainer along with assessment
coversheet
 Refer to the notes on eLearning to answer the task/s
 Any additional material will be provided by your Trainer
 Computer with relevant software applications and access to internet
 eLearning notes relevant to the tasks/questions
Instructions for Students
Please read the following instructions carefully
 This assessment has to be completed In class At home
 The assessment is to be completed according to the instructions given by your assessor.

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 Feedback on each task will be provided to enable you to determine how your work could be
improved. You will be provided with feedback on your work within two weeks of the assessment
due date. All other feedback will be provided by the end of the term.
 Should you not answer the questions correctly, you will be given feedback on the results and
your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge
and skills to be deemed competent for this unit of competency.
 If you are not sure about any aspect of this assessment, please ask for clarification from your
assessor.
 Please refer to the College re-assessment policy for more information (Student handbook).

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Assessment 2: Project
Requirement 1~ Project 30
Marks
Context and conditions of assessment

Students are to complete this assessment in their own time or class time, as advised by their
assessor. They may access reference materials and resources as required.
Remember:
 The assessment is an individual work, students need to submit both soft copy and
hard copy of the assessment.
 Students need to maintain: Word limit 2000 words, Font size: 12, line spacing: 1.5.
 All tasks need to be completed.
Background information
A company’s board of directors are responsible for maintaining good corporate governance.
There are important policy and performance elements to these responsibilities. The board
of directors is the guardian of fairness, transparency and accountability in all of the major
financial and business dealings of the company, defending the interests of investors and
wider stakeholders.
Fly Me High Travels International launched its operations on 1 January in Australia under the
name of Fly Me High Travels Australia. The agency specialises in providing cheap tickets to
customers via its one national store located in Melbourne and an online store. It also deals
in selling wholesale tickets to other agencies.
The company has set the following KPIs for its operations:
 Increase total sales by 10% every month
 Advertising expenses should remain the same for next 6 months
 Wages and salaries to be decreased by 5% every quarter
 Online sales to be increased by 15% each month
 Open stores in all capital cities in Australia within the next 3 years

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You are the Chief Financial officer of the company. You are responsible for preparing fair
and accurate financial documents that will present the current picture of the business to all
relevant stakeholders. In the following task, you are required to analyse the given budget of
the business, plan and prepare a report and present this to the directors in an important
business meeting.
Instructions to the student
You are required to plan a report that will be presented to the directors of the company by
the end of August to assist them in making further decisions on the business expansion and
meeting business compliance requirements.
Task 1: Review the budget extracted from the financial system (see Appendix 1) and
develops a report addressing the following points.
(7 Marks)
a) What are the outcomes of the budgets for the first six months operation in
Australia?
Ans: According to the question, the outcome of the budgets for the six months
operation in Australian is low compare with the company budgeting and also there is
some expenses which is very high.
b) Was the company able to achieve its KPIs? Why/why not?

Ans: The company was not able to achieve its KPIs because they have got the CVI
problem with Cash Flow it means they are not able to prove employment
development and training programme which is related to cash.
c) Comment on the cash flow of the business in general.

Ans: The cash flow of the company shows that the company have higher expenses
than income. Expenses like wages and advertisement in March and April have a
colossal increase and the income for these month were the equivalent to the
previous month.

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d) What changes needs to be made and what impact do you hope the changes will
make?
Ans: It show in a table that las two months the company create the more profit and
other have loses which give every month the lost increase. For that, company need
to evaluate its expenses such as wages and advertisement then improve its area
which give us a profit.
e) Is the business complying with ATO requirements and reporting in a timely and an
efficient manner?
Ans: ATO requirement is basically tax. They are running out of money and they are
struggling to pay the tax so, they are unlikely able to pay tax and GST on time which
mean they are not able to meet the ATO requirement.
f) What appropriate recommendations would you make for meeting ATO and other
legal requirements? Prepare a plan for lodging and meeting those requirements
within the required timeframes. g) Based on all of the information you have
reviewed what recommendations would you make to see an overall improvement of
the financial process and internal controls systems of the business
Ans: The recommendation that meet ATO and other legal requirement are as
follows;
 By ensuring clear guidelines on the roles and responsibilities of key ATO
stakeholders in the end to end SME case process.
 Obtain and maintain a formal footprint of each officer’s training and
experience to identify gaps when compared to the expected knowledge, skills
and experience.
 Define accountabilities for ensuring registration are complete.
 Annual review of all tax and corporate registrations to identify gaps or lapsed
registrations.

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 Assistance from a tax adviser for new, complex or

unfamiliar registrations.
Task 2: You will be required to consult with your trainer regarding the report you have
developed. This consultation process will be to discuss and receive feedback on (see
Appendix1):
(9
Marks)
a) your review of the budget
b) the corporate governance requirements and parameters
c) How the business can improve the internal control procedures to create more
reliable budgets.
Ans: A budget is an estimation of revenue and expenses over a specified future period of
time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for
a person, a family, a group of people, a business, a government, a country, a multinational
organization or just about anything else that makes and spends money. At companies and
organizations, a budget is an internal tool used by management and is often not required for
reporting by external parties.
Corporate governance is the collection of mechanisms, processes and relations by which

corporations are controlled and operated. Corporate governance is necessary because of
the possibility of conflicts of interests between stakeholders, primarily between
shareholders and upper management or among shareholders. Corporate governance
includes the processes through which corporations' objectives are set and pursued in the
context of the social, regulatory and market environment.
Internal controls are the mechanisms, rules, and procedures implemented by a company to
ensure the integrity of financial and accounting information, promote accountability and
prevent fraud. Besides complying with laws and regulations, and preventing employees
from stealing assets or committing fraud, internal controls can help improve operational
efficiency by improving the accuracy and timeliness of financial reporting. The ways to
improve internal control procedures are as follows;
 Segregation Accounting Duties
 Restrict Access to Financial Systems
 Increase Oversight
 Have Financial Statement Reviewed by a Third Party
 Require Employees to Take Vacation

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Task 3: You are now required to present the report to the board of directors (from the
Australian subsidiary and International office), discussing the budget results and the
implications of this on the business. The board members will be played by your
classmates and your assessor. You are to present your report summarising your
findings and highlighting the key points and improvements to corporate governance
that you recommend. You are to ensure you provide opportunity for the board
members to ask questions throughout the presentation. As you are also presenting
this report to members of the board from the International Office who may have
difficulty understanding Australian compliance requirements, you must also consider
cultural differences and the language used to ensure they are able to understand
this. (10 Marks)

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Task 4: Following completion of the above steps you will be required to demonstrate to
your assessor your ability to access and use an integrated financial management
system such as MYOB. You are required to produce variance report from MYOB or
any integrated financial management systemising the cash budget information of Fly
Me High Travels. Both hard copy and soft copy of the variance must be submitted.
(4 Marks)
APPENDIX 1:
EXCEL document is the appendix of this part of assessment.
C a s h B u d g e t F ly
H i g h Tr a v e ls V 1 . 0 . x l s x

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PRESENTATION CHECK LIST (for trainer use only)
S/N Communication Requirements Satisfactory Not Satisfactory

1 Discussed budget results
2 Presented implications of this on business
3 Presented summarising report
4 Presentation slides met requirements
5 Discussed the key points
6 Recommended the improvements
Requirement 2 ~ Short answer questions 30 Marks
Context and conditions of assessment

You are required to answer all of the following short answer questions in your own time or
class time, as advised by your assessor. You should ensure you answer all questions and
provide as much detail as possible. You can use the Internet, books, magazines and other
resources to help you with your answers.

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You are required to answer all questions correctly. If incorrect

answers are provided, your assessor will identify the gaps in your knowledge and
understanding and make arrangements for reassessment.
Instructions to the student

Review the questions below and provide your detailed answer to each question in the space
provided.
Question 1 (2 marks)
What are the five statutory and other regulatory requirements relating to corporate
governance in accounting?
Ans: The five statutory and other regulatory requirements relating to corporate governance
in according are;
 Make timely and balanced disclosure.
 Provide ethical and responsible decision-making.
 Structure the board to add value.
 Safeguard integrity in financial reporting.
a) How do you ensure you are up to date on professional and legal accounting
standards for any organisation?
Ans: Staying up to date in an organisation that’s constantly shifting isn’t easy, but being
aware of changes as they’re happening can keep you ahead of the curve. So, to stay up to
date we need to check out following recommendations;
 Subscribe to trade journal

 Keep up with consumer magazines
 Scan and engage in forums and discussion boards
 Scour website and blogs
 Read newspaper and news sites
b) Why is it important to apply accounting standards in the context of corporate

governance in Australia?

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Ans: Corporate governance is the way a corporation polices

itself. It is a method of governing the company like a sovereign state, instating its own
customs, policies and laws to its employees from the highest to the lowest levels. Corporate
governance is intended to increase the accountability of your company and to avoid massive
disasters before they occur. Failed energy giant Enron, and its bankrupt employees and
shareholders, is a prime argument for the importance of solid corporate governance.
Determine three statutory reporting requirements for companies in Australia.
Ans:
 To maintain financial records.
 To send the financial report, director’s report and auditor’s report to members.
 To have a half-year report audited or reviewed by the auditor.
The board of directors of an organization has a concern about the internal control
procedures. Why should these procedures be analysed and monitored in order to ensure
compliance with corporate governance requirements?
Ans: Establishing effective policies and procedures does not begin and end with regulations.
It takes the right amount of collaboration, the right types of distributive mediums, and the
right methods to measure understanding.
o Meet with divisional leaders to ensure the policies and procedures being
created are feasible for individual departments.
o Determine the best format of policies for your different audiences.
o Make Policies and Procedures easily accessible to your employees.

o Set deadlines for each policy and procedure to be acknowledged.
o Determine the best way to measure the understanding your employees have
of policies and procedure.
Explain why an internal audit is useful in an organisation and how audit reports,
assessments and recommendations can help improve Corporate Governance processes and
objectives.
Ans: Internal Audits allows for a business to obtain information about its current status,
without the worries of an external auditor reporting their findings. Internal audits can focus
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onto major issues and determine how to best address those

issues.
The audit reports, assessments, and recommendations can help Corporate Government
processes and objectives by providing the areas of needs that need oversight by the board.
Thus, resources will be dedicated to the appropriate areas of the business.
Evaluate the role of Australian Securities Exchange (ASX) in assisting corporate governance
in Australia?
Ans: The key role of the Australian Securities Exchange is to advance and subject the
principles-oriented sanctions on the practices of “corporate governance” which later on
must be adopted by ASX registered entities. It will put forth certain recommendations, those
are envisioned to indorse stockholder assurance and to support listed entities to meet
investor’s expectations in relation to their governance.
How would you explain the Ethical Corporate Governance concept and how can the board
members of an organization demonstrate that they are committed to ethical standards?
Ans: Ethical Corporate Governance refers to the processes and policies that a company has
in place to deal with issues concerning how it is administer and conducts day to day
business. The business case for business ethics has been well demonstrated through the
costs and impacts of the repeated high profile cases of corporate greed and misconduct.
Often those integrity failures are a result of senior individuals crossing ethical boundaries as
well as ignoring or circumventing the rules set out in law.
Briefly explain the importance of keeping employee records by organizations with few
practical examples.
Ans: Keeping of employee records is very essential for any organization. In certain instances,
documentation in a personnel file can provide important supportive data for example, to
show an employee’s discipline history in support of a termination in subsequent litigation.
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The personnel file can also track performance goals, leaves of

absence and any employment-related agreements. Then, to being a good business practice,
employers may be required to keep certain types of records in order to comply with specific
provisions under both federal and state law.
a) Research on the Australian Accounting Standards Board website
(http://www.aasb.gov.au/), according to AASB 116, for the disclosure requirements
on depreciating assets.
b) Determine the two common methods of Depreciation of depreciating assets, the

useful lives or the depreciation rates used for Office Computer, Motor Vehicle and
Office Furniture.
a. Ans: According to AASB 116, for the disclosure requirements on depreciating assets;
 Specify right-of-use (ROU) assets arising under concessionary leases can be
treated as a separate class of ROU assets to ROU assets arising under other
leases for the purposes of AASB 16;
 Extend the initial-measurement temporary relief to provide a temporary
option for the Whole of Government and the General Government Sector not
to measure ROU assets arising under concessionary leases at fair value in
subsequent measurement.
b. Ans: The two common methods of Depreciation of depreciating assets, the useful lives
or the depreciation rates used for Office Computer, Motor Vehicle and Office
Furniture are;
 Straight-Line Method
 Double Declining Balance Method
An organization has just received a Qualified Auditor report. Auditors have reported the
contravention about the director’s superannuation not being paid for the past 2 years.
Prepare a list of suggestions to management to rectify this contravention; your answer

should focus on the rectification to the internal control system to prevent this contravention
in future.
Ans: The suggestions to management to rectify the contravention are;

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 Regularly communicate updates and reminders of

policies and procedures to staff through emails, staff meetings and other communication
methods.
 Periodically assess risks and the level of internal control required to protect company
assets and records related to those risks. Document the process for review, including
when it will take place.
 Management is responsible for making sure that all staff are familiar with company
policies and changes in those policies.
 Director of the company is essential to know the company obligations for acting
timely way if something goes twisted.
a) The CEO is trying to identify a performance measure (indicator) for Sweet Chocolate Pty
Ltd. He wants to take into account the 'Qualitative' factors of performance. During his
research, he comes across the term 'Balanced Scorecard'. Discuss how the company can
assess their operations in relation to the four dimensions of the ‘Balanced Scorecard’
that can be used as a benchmark for Corporate Governance Compliance requirements.
Ans: The four dimensions of the ‘Balanced Scorecard’ that can be used as a benchmark for
Corporate Governance Compliance requirements are as follows;
 Financial Perspective: How it’s supposed to work for non-profit organizations, how to
cascade financial goals, not all finance-related metrics should be placed here.
 Internal Perspective: Internal and External Customers. Formulating a customer’s
problem, not what the organization wants from the customers. Measuring
perception.
 Internal Perspective: Analysis of strategic themes. Linking internal goals to what
customers need. The danger or binary indicators.
 Learning and Growth: Improving skills and capabilities. Working on the culture. How
to quantify and measure intangible goals like leadership training.
c) Review and assess performance indicators in terms of investments in Research &

Development areas of an organization.
Ans: Performance indicators refer to a set of quantifiable measurements used to gauge a
company’s overall long-term performance. KPIs evaluate the success of an organization or of
a particular activity (such as projects, programs, products and other initiatives) in which it
engages. KPI incorporates information on the sources, calculation and definitions for each
measure and sets out the timetable for submission of monthly data.

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Make a plan for submitting the following reports according to

the Australian Taxation Office requirements.
Whilst working in Accountancy you will be required to interpret financial reporting to meet
specific obligation and within scheduled timeframes, review the ATO’s web site
http://www.ato.gov.au/ access and identify the financial reports you will be required to
complete to ensure compliance, note the regularity of the reporting requirements.
Ans:
Reports Due date (s) Frequency

Business activity statements 28 Feb/April/Oct Quarterly
Income tax returns 31st October Annually
Fringe Benefit tax (FBIT) 21st May Annually

returns
Pay as you go (PAYG) 31st October Annually
withholding annual reports
Annual GST returns 28th February Annually
Annual GST information 31st October Annually
reports
Superannuation guarantee 28 Feb/April/Oct Quarterly
levy
Analyse the following situation and comment if they need to pay GST or not.
Tom is a plumber who is registered for GST. He installs a new spa for Jerry, an electrician.
Jerry is also registered for GST and wires Tom’s new shed as payment for installing the spa.
Ans:

T-1.8.1_v3
Marking Guide:
Marks Comment
s
Allowe Achieve
In this assessment, did the student: d d (if any)
Ensure their project covered all of the required points
including:
Requirement 1:
Task 1:Developed a report addressing the following
1
points.
1
a) Outcomes of the budgets
1
b) KPIs
1
c) Cash flow of the business in general.
1
d) Changes made and impact of the changes. 1
e) Business complying with ATO requirements and
reporting.
f) Appropriate recommendations for meeting ATO and 1
other legal requirements. planned for lodging and
meeting those requirements within the required
timeframes. 3
g) Reviewed what recommendations would you make 3

to see an overall improvement of the financial 3
process and internal controls systems of the
10
business
4
Task 2:Consultation process and feedback receive.

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Marks Comment
s
Allowe Achieve
In this assessment, did the student: d d (if any)
a) your review of the budget
b) the corporate governance requirements and
parameters
c) improve the internal control procedures to create
more reliable budgets.
Task 3: Presentation
Task 4: Ability to demonstrate access of integrated
financial management system.
Requirement 2:
Question 1: Statutory and other regulatory 2
Question 2: Professional Accounting standards 3
Question 3: Statutory reporting requirements 2
Question 4: Internal control procedures 2
Question 5: Internal audit 2
Question 6: Role of ASX 2
Question 7: Ethical corporate governance 2
Question 8: Keeping employee record 2
Question 9: Research AASB 116 3
Question 10: Qualified auditor report 2
Question 11: Major three Performance indicators 3
Question 12: Australian taxation office requirements 2
Question 13: GST payment 3
Total 60


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T-1.8.

Details of Unit(s) of competency

Student Declaration: I declare that the work submitted is my

Assessor Declaration: I declare that I have conducted

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 1

Purpose of the Assessment

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 2

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 3

Context and conditions of assessment

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 4

b) Was the company able to achieve its KPIs? Why/why not?

c) Comment on the cash flow of the business in general.

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 5

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 6

 Assistance from a tax adviser for new, complex or

Corporate governance is the collection of mechanisms, processes and relations by which

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 7

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 8

EXCEL document is the appendix of this part of assessment.

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 9

PRESENTATION CHECK LIST (for trainer use only)

S/N Communication Requirements Satisfactory Not Satisfactory

Requirement 2 ~ Short answer questions 30 Marks

Context and conditions of assessment

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 10

You are required to answer all questions correctly. If incorrect

Instructions to the student

 Subscribe to trade journal

b) Why is it important to apply accounting standards in the context of corporate

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 11

Ans: Corporate governance is the way a corporation polices

o Make Policies and Procedures easily accessible to your employees.

onto major issues and determine how to best address those

The personnel file can also track performance goals, leaves of

b) Determine the two common methods of Depreciation of depreciating assets, the

Prepare a list of suggestions to management to rectify this contravention; your answer

Ans: The suggestions to management to rectify the contravention are;

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 14

 Regularly communicate updates and reminders of

c) Review and assess performance indicators in terms of investments in Research &

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 15

Make a plan for submitting the following reports according to

Reports Due date (s) Frequency

Income tax returns 31st October Annually

Fringe Benefit tax (FBIT) 21st May Annually

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 16

g) Reviewed what recommendations would you make 3

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 17

ACC_ Monitor Corporate Governance, Assessment 1_v2 Page 18

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