FNSACC50A Implement & Maintain Internal Control Procedures ASSIGNMENT
1. Who is ultimately responsible for the corporate governance of an organisation? The Board of Directors
2. Who else plays a part in corporate governance?
Shareholders, auditors and other stakeholders.
3. Who are the stakeholders?
A person, group or organisation that has interest or concern in an organisation.
4. List the corporate governance requirements a company needs to adhere to: The company has an adequate system of internal control in place. There is equitable treatment of all stakeholders.
Accountability rests with those that manage and control the company. Shareholders confidence is built because transparency of operations and information means that investors are better placed to make more informed decisions.
5. What part does the Corporations Act 2001 play in corporate governance? The Corporations Act 2001 is major legislation that impacts on companies. Through its Legislation governments require companies to behave responsible and be accountable As good corporate citizens.
6. What are the objectives of internal controls as required by corporate governance requirements? 1 The business is conducted in an orderly and efficient manner 2 Ensure compliance with all financial and operational requirements 3 Irregularities are prevented or detected and corrected should they occur 4 Assets are safeguarded from unauthorised use or disposition 5 Financial records and other relevant databases completely and accurately reflect the Enter operational activities of the entity and permit the timely preparation of financial information.
7. What are financial controls?
Financial controls relate to those methods and procedures used to product accurate financial records and safeguard assets. Financial controls should be designed to ensure: Accounting records are accurately and reliable maintained, transactions are properly Authorised , there is adequate segregation of incompatible duties. Specified individuals are held Accountable for transactions under their control.
8. What is accountability?
Accountability - a control function of the budgeting process whereby actual performance Is measured against the budget so that corrective action can be taken. Those that control And manage the company are held responsible for the performance of their company They are to be held accountable for their decicions.
9. Explain the importance of accurate and timely reporting?
To be effective an accounting system must be able to produce both timely and accurate Information. Timeliness of information could be interpreted to be the time delay between The recognition and measurement of a transaction and its disclosure either by may of a Report or within the financial records. Accuracy is facilitated by an accounting system That can collect, record, classify, summarise and than store date into meaningful Information.
10. PART A Do question 3.47 p109 of text
The weakness, consequences and remedies relevant to the payroll system of Ajax Proprietary Limited are outlined in the following paragraphs. The duties of payroll preparation and personnel are completed by two employees who, in effect, work in the same department. Because there are only two employees involved with personnel records and payroll preparation the chances of collusion exists with the result that the payroll records could manipulated Personnel records should be maintained independently of the payroll department. Also, besides merely agreeing the total of the wages cheque with the weekly net wages figure on the payroll sheets the accountant should review the payroll total for
reasonableness. The duties of the two personnel staff should be clearly defined Because the duties of these two employees are not clearly defined the chances
of collusion exist or, alternatively one of the employees could perform a substantial...
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