The topic of the research proposal is ‘The Responsibilities of the Auditors and Accountants and their Contributions toward Corporate Governance in Wesfarmers. ’According to Wesfarmers (n.d) Wesfarmers Limited was originated in 1914 and is one of the largest listed companies in Australia. It deals in liquors, hotels, convenience stores, departmental stores, supermarkets with its industrial division dealing in fertilizers, industrial and safety products.
The company has formulated the Audit and Risk Committee for recognizing, regulating and administering the risks associated with commercial activities operated by the group.
As per ASIC(2014) in the context of corporate governance issues, Wesfarmers is facing various problems such as regulation and monitoring of risk , management of corporate information and resolution of conflicts.
These problems are resolved by establishment of various committees and formulation of various policies. The board has established the nomination committee, an audit and risk committee and remuneration committee for the management and regulation of risk and to avoid conflict of interest (Governance, n.d.).
The audit and risk committee is specifically established for the compliance of the governance policies and practices to follow the commendations as per the ASX Principles.
Research Problem / Research Question
This research has attempted to focus on the questions such as :
Research Aim and Objectives
The main aim of the research is to to analyse the issues related to the disclosure of the related party transactions in the annual report of Wesfaremers. Also, the researcher has attempted to assess whether the accountants and auditors are aware of the revelations made by the directors regarding their pecuniary interets in the shares of the company or its realted body corporate.
The audit and the risk management committee formulated by the board of directors for the adoption of good corporate govenance principes as per the ASX has also been analyzed by the reasercher (Wesfarmers, 2017).
As per ASX (2014) in the context of listed entities, the disclosures should be made in the annual report or on the website of the company. According to the Recommendation 1.1, the auditors and accountants in the audit and risk management committee should formulate appropriate risk management framework according to which the management is expected to operate.
As per recommendation 4.1 separate audit committee should be formualted in order to bring independency of jugdemet , transperancy and focus to supervise the corporate reporting procedure.
As per Safari, Mirshekary and Wise (2015) according to the Accounting Standard AASB 124 Related Party Disclosures, the company should disclose all the realted party transactions in the annual report of the company . Also, the auditors and accountants should be aware of the disclosures made by the directors related to their interets in the annual report of the company.
As per Langford (2015) the directors of the listed entity should disclose their interests so that the company can abide by the norms of the Listing Rules. The auditors and the accountants should verify the disclosures made by the directors and make sure that the information is disclosed on the website of the company and in its annual report.
As per Nottage and Aoun (2016) for following the principles of good corporate governance, the audit and risk management committee which consists of accountants and auditors should review the company’s financial reports and recommend to the board regarding the review of various accounting policies.
As per Tušek (2015) the audit and the risk management committee has the responsibility to protect the integrity of the financial and non-financial reporting of the company. The auditors and the accountants are accountable for the internal and external audit and control. It should act according to the Australian Accounting Standards and Corporation Act 2001.
Data Collection Plan
For this research, the researcher shall use primary and secondary data collection methods. The researcher shall use both quantitative and qualitative methods to collect data. There are various kinds of data collection methods such as observation, survey through a questionnaire and conducting interviews to collect the data. Additionally, the secondary methods such as collecting data from the existing sources such as journals, government publications, books and offline sources etc.
In this research, the researcher shall use the probability sampling methodology to prevent biasness from the research. Also, the data analysis method shall enable the researcher to assess the collected data to arrive at a feasible result. The researcher shall use the statistical data analysis method to assess the collected data of the research. The researcher will implement the MS Excel tools such as pie chart, bar and column diagram to analyze the collected data (Sutton and Austin, 2015).
In this research, the researcher has used the Data Safety and Security Act 1988 to protect the data of the participants and make a healthy relationship with them. The researcher ha also implemented the principles adopted by the Norwegian National Committee for Research Ethics which states that the researcher shall treat the participants with respect. The research proposals shall be designed and implemented fairly. He should maintain the confidentiality of the data collected by the participants and collet data with their informed consent. The data collected should be impartial and uninfluenced by any participant. It will help to avoid the ethical issues from the research.
Hence, to conclude, it can be said that the topic of the research proposal ‘the roles and responsibilities of the accountants and the auditors regarding the implementation of good corporate mechanism in Wesfarmers ‘ has been analyzed and assessed by the researcher. The researcher has analyzed various dimensions of the study and concluded that with the establishment of audit and risk management committee in Wesfarmers, the auditors and the accountants have been able to address the issues related to the compliance of the corporate governance norms.
ASIC (2014) Corporate governance [online] Available from: https://asic.gov.au/regulatory-resources/corporate-governance/[Accessed 8th April 2018].
ASX (2014) Corporate Governance Principles and Recommendations [online] Available from: https://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf [Accessed 8th April 2018].
Governance (n.d.) 2017 Corporate Governance Statement [online] Available from: https://www.wesfarmers.com.au/docs/default-source/corporate-governance/2017-corporate-governance-statement.pdf?sfvrsn=2 [Accessed 8th April 2018].
Langford, R.T. (2015) Directors’ duties. Company & Securities Law Journal. 33(205).pp. 141.
Nottage, L. and Aoun, F. (2016) The Rise of Independent Directors in Australia: Adoption, Reform, and Uncertainty . University of Miami International and Comparative Law Review. 23(2), pp. 573-686.
Safari, M., Mirshekary, S. and Wise, V. (2015) Compliance with Corporate Governance Principles: Australian Evidence. Australasian Accounting, Business and Finance Journal. 9(4), pp. 3-19.
Sutton, J. and Austin, Z.(2015) Qualitative Research: Data Collection, Analysis, and Management. The Canadian Journal of Hospital Pharmacy. 68(3),pp. 226-231.
Tušek, B. (2015) The influence of the audit committee on the internal audit operations in the system of corporate governance – evidence from Croatia. Economic Research. 28(1), pp. 187-203.
Wesfarmers (2017) 2017 Annual Report [online] Available from: https://www.wesfarmers.com.au/docs/default-source/default-document-library/2017-annual-report.pdf?sfvrsn=0 [Accessed 8th April 2018].
Wesfarmers (n.d.) Who we are [online] Available from: https://www.wesfarmers.com.au/who-we-are/who-we-are [Accessed 8th April 2018