Save your work with the filename <Name_StudentID_SubjectName_AsstNumber>,

answer your assessment questions in this sheet below and upload the assessment
once it has been completed.

Family Name: Given Name:

 Garzon vargas Wilson andres

Student ID:                                                                   Course:

S4006462 Advance diploma in accounting
 
8

Subject:                                                                        Trainer’s name:

Corporate governance
 

Declaration: I certify that this assignment is entirely my own work. I have provided
full referencing to the work of others. The material in this paper has not been
submitted before.

 
 

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PLAGIARISM:  You must compose your answers in your own words.  Simply pasting
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perfect – rather than copy word-for-word the thoughts of someone else.

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TUTORIALS:  Tutorials are run every week to help you answer the assessments.  The
schedule for tutorials will be announced during the first week of term.  You are
urged to attend the tutorial that pertains to your online subject.

Assessment 1 – Written or Oral Questions

1. What are the principles of Corporate Governance? Explain the reason behind
the implementations of corporate governance in Australia? (8 marks)

its important in asutralia the implementation of corporate governance because help

determining the cost of capital in a global capital market. Its important because this
implementation is to make sure sure the companies must be ready to compete globally
and to maintain and promote investors confidence both in Australia and overseas

the corporate governance principles are:

 Lay solid fundations for management and oversight

This principle refers to companies that should establish and disclose the
respective roles and responsabilities. As the principle mention the companies
have to encourage and stablish function to evaluate the performance of senior
executives and delegate funtions to accomplish guidelanse and responsabilities
of the companies.
 Structure the board to add value:
The companies should have a board the right structure to adequately discharge
responsabilities and dutys. As the recommendations for this principle the
majority of the board should be independent director and the board should
stablish a nomination committee. And in general the recommendation are on
base of how the companies should stablish the right roles for the directors and
their functions to accomplish the busniess goals and performance of the board
its commitments and individual directors
 Promote ethical and responsible decision making.
Companies should promote constantly and effectively etchical and responsible
decision making.
The most important in this principle is that the companies need to stablish a
code of conduct for managing every situacion in the busniess as confidence of
integrity. Take responsibility for legal obligation and the reasonable
expectations of the stakeholders. And in general this principle suggest that the
companies stabilsh this code of conduct for every concerning about diveristuy
and others factor that may can affect production.
 Safeguard integrity in financial reporting
Companies should have a structure to independly verify and safeguard the
integrity of their financial reporting.
 Make timely and balanced disclosure
For everything concerning to the comainies its clear and necessary to promote
timely and balanced diclosedure
 Respect the rights of shareholders
The copani must respect the shareholders decision on base of benefit for the
business and actually because it is the main job of them. Promoting
communication will help effectively to determine new prosecces where
employees and shareholders can be benefit.
 Recognise and manage risk
 Companies must have diferents action policies and procedures to control and
manage risk following the right manner to fix or control any risk for the
busniess, implementing reports and with immediately solution.
 Remunerate fairly and responsibly.
Companies must stablish commitement to talk about remuneration reasonable
and sufficient and this commitment needs to have 3 directors or managers
from diferents areas to determine it.

2. List the Accounting Standards and Statutory Regulatory Authorities you

would need to be aware of when working as a professional accountant.
Explain how you would apply and adhere to your obligations, while monitoring
and interpreting emerging trends in statutory and to meet other regulatory
requirements. (10 marks)

 AASB
 ACCC
 Australian institute of company directors
 APRA
 ASX
 ASIC
 Professional Associations.

While monitoring and interpreting emrging trends its very impornat to follow every
procedure and policies that the company has and also follow the relevant financial
reporting that include auditing.
To follow all this procedures we need to understand that every single financial
transaction needs to be reported and demonstrate prove of it; to determine this we can
follow:

 Keep the financial reports

 Prepare and analize financial reports
 Prepare directors reports
 Financial report audit
 Lodged by specific dates stated by each soecific authority
 Lodge an annual statement with ASIC
 Lodge financial reports

3. What are ethical issues? (3 marks)

everything in a ccounting is determine for how to make good and moral chices for this
reason there are some issues that can be very important into the busniess to determine it
as issue:

 Fraudulent financial reporting

 Misappropriation of assets
 Disclosure: as a subtopic of fraudulent financial reports diclosedure violations
are erros of ethical omission.
  Penalties: for violation of accounting ethics as destroying information
manipulation of financial reports.

4. Go to the ASX website: http://www.asx.com.au/ seek information on internal

control and risk management then write a report on your findings. (10 marks)

as regulation for ASX the audit and risk committee charter of 2018. ASX stablish some
importants steps to follow and give orientation of why and what are the procedures to
maintain low rates of risk and how prevent it, this steps are:

 Stablish the committee to stablish roles and responsabilities, composition and

operational.
 The main purpose of the committee is to discharge responsabilities and assit
the board to monitor the integrity of ASX. Review the system risk
management, internal control and regiulatory compliance to have clear
andestanding of every move that the company make and also it will help to
improve and compliance the regulations
 The responsibilities of the commite include corporate reporting, external audit,
risk management, internal audit and internal control, isurence program,
compoiance and conflict handling arragements, cyber resilence.
Undesrnding that the committee have this responsabilities but are not limited
to them.
All this responsabilities help to review and meke recommendations regarding
significant financial reporting issues and adopt policies to increase benefits and
help management to improve to prevent new issues.
In the other hand external and internal audits will be benefit for the busniess to
identify issues and fix it before it get worse but if something need to be fix the
approve of changes will be from board and shareholders.
Review the ASX group enterprise risk framework for identifying monitoring and
managing significant risk and minimized it.
 Composition and operation are named by the board and it willconsist in three
members non executive directors and must of the others independent
directors.
 Access and advisers in must of case will be necessary in mettings to present
reports or findings in controls to the company to determine any issue and find a
fast solution.
 Relationship with other asx group governace forums where committee will
report review and confirmation of any changes or new implementation needed
to prevent issues and control any possible issue. Also it will be necessary to
record all the information to accomplish with their responsabilities.

https://www.asx.com.au/documents/about/audit_risk_charter.pdf
5. Explain the purpose and function of employee records. (5 marks)

inicially the employee records and a range of information must be made and kept for
each employee as prescribed by the fair work art 2009 and fair work regulations 2009.
Companies need to give the best effective and effieint management of personeel records
and that’s why companies stablish porlicies and procedures for managing personeeel
records in accordance with the organisations regulatory framework.

Implementation personnel recordkeeping system will be make sure they are always
accessible for inspection for authorize personnel keeping accurate and complete time
and wages records and issues pay slips. The employee records have to be recorded such
as:
 Employee resume and job application details
 Employee workplace performance records.
 Employee trade certificate or registration certificates.

https://classroom.google.com/u/1/c/MTIxODEwMTY1NVpa

6. Research the Australian Tax Office and identify what are the principles of
valuation and the common methods of depreciation? (5 marks)

depreciation method are:

 Straight line method: asset that generates revenue evenly overtime and each
period shows an equal amount of depreciation
 Diminishing balnce method: for asset that produce more revenue in their early
years
 Unit of use method: for an asset that depreciate due to wear and tear rather
than obsolescence but more use causes greater depreciation
 Sum of the digits method

For the principles of valuation we need to make sure we meets all the following:
 It takes into account all relevant factors and considerations likely to affect the
value of the asset
 It has been underyaken in good faith
 It uses a rational and reasoned process
 It is capable of explanation to a third party

https://mail.google.com/mail/u/1/#inbox/FMfcgxwDqThrXtbfdLZzxNxtpkmjcgCS?
projector=1&messagePartId=0.1

https://www.ato.gov.au/super/self-managed-super-funds/in-detail/smsf-
resources/valuation-guidelines-for-self-managed-super-funds/?page=5
7. Refer to the ATO http://www.ato.gov.au/ and research and list taxable
transactions? (5 marks)

8. How do external auditors differ from internal auditors? How does an external
audit differ from an internal audit? How are the two types of audits similar?
(10 marks)

9. Whether the business is Westpac, Woolworths or a small business the

business needs effective internal controls. Identify 2 things a firm can do to
make it harder for a cashier to steal from the business and hide the theft.
Explain how each new measure by the firm would accomplish its goal.
(6 marks)

10. Internal controls are designed to safeguard assets, encourage employees to

follow company policies, promote operational efficiency and ensure accurate
records. Which objective is most important? What must the internal controls
accomplish for the business to survive? Give your reasons. (6 marks)

11. Whilst working in Accountancy you will be required to undertake financial

reporting to meet specific obligation and within scheduled timeframes.
Review the ATO’s web site http://www.ato.gov.au/ and identify the financial
reports you will be required to complete to ensure compliance, noting the
regularity of the reporting requirements. (10 marks)

12. Explain the objective and principles of financial reporting. Include in your
answer the key elements of a financial statement and the purpose of these
elements. (10 marks)
Assessment 1 total: 88 marks

The objective of financial reporting is to prvide information about all financial matters
that are usuful to a wide range of users in making economic decisions and on base of
this reports the users can have an extensive view of how the busniess have been
operation and how the users can get benefits as investors.
The objetives of financial reportingin general refer to communicating relevant
information to allow investors take decision of allocation of capital.