This unit describes the skills and knowledge required to research corporate governance reporting trends, examine corporate governance standards and practices, and review compliance to develop and implement processes and procedures for meeting corporate governance obligations.
It applies to individuals who use current and specialised knowledge and analytical skills to provide advice on organisational processes to meet compliance and management requirements.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Financial Services Training Package Companion Volume Implementation Guide or the relevant regulator for specific guidance on regulatory requirements.
What the student can expect to learn by studying this unit of competency
•Establish corporate governance standards and practices
•Identify corporate governance reporting trends
•Determine processes for corporate governance compliance
•Review corporate governance compliance.
Purpose of the assessment
The purpose of this assessment task is to assess the students’ knowledge essential to monitor corporate governance activities.
Knowledge to 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.
Knowledge to research audit reports and practices to assess methodologies and recommendations.
Knowledge to identify corporate governance reporting trends.
Knowledge to determine processes for corporate governance compliance.
Q1: Give three (3) examples of shareholders right that are recommended by the OECD.
Q2: What is the impact of good corporate governance for stakeholders? Write your answer in 20-30 words.
Q3: Determine five (5) factors that would indicate good corporate governance.
Q4: Define corporate governance. Write your answer in 150-200 words.
Q5: Identify and mention the matters in the ASX guidelines to be included in companies’ website.
Q6: How can the independence of directors be monitored? When is a director considered not independent? Write your answer in 250-300 words.
Q7: Determine the code of conduct that the ASX guidelines recommended and why each is important? Write your answer in 100-150 words.
Q8: What are the five (5) main objectives of internal control?
Q9: Briefly describe the five (5) principles of internal control according to ASA315. Write your answer in 150-200 words. Q10: Who is responsible for establishing values and ethics within a company? Write your answer in 30-50 words.
Q11: What would be the effect on the promotion of ethical behaviour of including the cost of share options issued to executives in the accounting remuneration expense? Write your answer in 30-50 words.
Q12: Give five (5) reasons why a company with strong written code of conduct may still experience corporate governance issue.
Q13: How do shareholders prevent management acting in their own interest? Write your answer in 50-100 words.
Q14: In the Enron collapse, explain the principles and Regulations that were not followed. Write your answer in 150- 200 words.
Q15: Explain the codes of conduct that the ASX Guidelines recommended and why each is important? Write your answer in 100-150 words.
Q16: Which ASX listing rules refer directly to the ASX Corporate Governance Principles and recommendations? Write your answer in 50-100 words.
Q17: Sharan is an account that does not morally gives advice on financial products. Recently, however, she recommended a client to invest in a specific share based on his judgement. Sharan is worried that she needed an AFS license to do this. Is this correct? Write your answer in 30-50 words.
Q18: Mr Turnball are an executive Director of a small proprietary retail company. He is uncertain of the companies’obligation under Corporation act, 2001 in relation to financial record keeping and reporting.
- Discuss company’s obligation to keep financial records. Write your answer in 50-70 words.
- The circumstances in which the company may be obliged to prepare and audit financial report. Write your answer in 50-70 words.
Q19: What would be the effect on the promotion of ethical behaviour of including the cost of share options issued to executives in the accounting remuneration expense? Write your answer in 30-50 words.
Q20: What is the requirement of employee records? Provide sources of legal obligation. Write your answer in 50-100 words.
Q21: Answer the following:
- Mention three (3) methods of depreciation of assets.
- Explain why fair value and Depreciation of asset is important? What are the principles of depreciation?