Implement and maintain internal control procedures

Assessment Activity - Review corporate governance requirements

Assume you have been just appointed internal auditor of any of the companies in Australia, who started its operation as private company recently became a public company. You have to undertake a review of the corporate governance requirements of the business. The newly created board of directors has concerns that they are not sure of their corporate governance obligations. Look at the internal records of the company and answer following questions. Some of the companies, which became public companies, are Australia in 2015 are as below:

ALT Resources Limited, Baby Bunting Group Limited, Bitcoin Group Limited, CBL Corporation Limited, Ding Sheng Xin Finance Co. Limited etc.

You could search more on http://www.asx.com.au/prices/upcoming.htm

Task 1.1
Suggest the company about need for required corporate structural changes. Also, discuss the relevant governance and ethical requirements. (1.1)

Task 1.2
What is the purpose of corporate governance activities?

Task 1.3
Outlines directors duties determined by ASIC.

Task 1.4
Discuss ASIC legislative requirements for compliance (1.2)

Task 1.5
The board of your chosen company is concerned about the internal control procedures currently in place. Review the current procedures. Discuss the importance of reviewing and modifying them. (1.3)

Task 1.6
Develop procedures to control handling of cash receipts and payments for the chosen company in order to prevent fraud and errors in handling of cash. (1.3)

Assessment activity - Implement Operating Procedures

This assessment is based on the same public company, which you have chosen in assessment activity one. Answer the following task.

Task 2.1
To maintain consistency and compliance with internal control procedures, it is very important to maintain and review financial delegations and accountabilities. Discuss this in terms of your chosen company.

Task 2.2
It is very important to disclose all required information to stakeholders and to the board of directors of any business. What information might be required in reports for? Explain what internal controls mean in terms of reporting. (2.2)

Task 2.3

Discuss the objectives of internal control in terms of reliability of the financial reports. Also, discuss the importance of care and time, while preparing financial reports. (2.2)

Task 2.4
Organisations should lodge reports and statements at a regular basis. Discuss how your chosen company would determines the correct establishment of lodgement schedules. Develop one for them to lodge BAS. Do a meeting with your trainer taking him/her as managing director of your chosen company. Ask the question in those meetings about developing a lodgement schedule. Your questions could include dates, how often you must lodge and about lodgement methods etc.

Your trainer will use following checklist to assess your skills of effectively engaging others in verbal exchanges using active listening and questioning to elicit, clarify and convey information.

Task 2.5

Documentation of procedures would help to enhance your chosen company's controls by maintaining consistency. Discuss it in detail in context of your chosen company (PC-2.4)

Assessment Activity 3 - Monitor policy

This assessment is based on the same public company, which you have chosen in assessment activity one and two. Answer the following task.

Task 3.1
Corporate governance requirements are identified and analysed to determine application to operations. Clarifications on application of corporate governance requirements are accessed from authoritative and recognised sources. List the name of organisations from where this information can be collected.

Define and discuss the role of corporate governance for your chosen business and identify the role, function and responsibilities of the board of directors.

Task 3.2
Develop some key performance indicators to evaluate compliance with internal control procedures for your chosen business. Look at the income statement of your chosen company and develop KPI to make the weak areas better. How would you report and monitor the KPI's?

Task 3.3
Look at the following scenario; assume it happened at your chosen company.

When completing an internal audit, it is found that the company is losing sales due to complaints from customers about delivery of goods. You are required to implement policy and procedures to monitor goods sent to customers.

The mission of the policy, monitoring and audit section is to develop and clarify policies, monitor for compliance, and continually improve and manage the dispute resolution processes. Monitoring services and technical assistance is provided to support the company's efforts for accountability for results and improved services for customers.

After reading these variations in adoption of corporate governance requirements, develop Modifications to procedures to facilitate compliance with internal control procedures.

Task 3.4

Discuss the principles of auditing and internal control.

Assessment activity one : Review corporate governance requirements

Identify and analyse corporate governance and ethical requirements to determine application to operations

Access clarifications on application of corporate governance requirements from authoritative and recognised sources

Review and develop internal control procedures, reflecting application of corporate governance requirements to internal operations

Assessment activity two : Implement operating procedures

Maintain and review financial delegations and accountabilities to ensure consistency and compliance with internal control procedures

Produce, review and distribute required reports within agreed timelines

Develop timetables for implementation of corporate governance requirements in consultation with stakeholders

Detail and document internal control procedures in standardised formats to promote consistency of use

Assessment activity three : Monitor policy

Develop applications of corporate governance requirements from published sources or recognised practices

Develop and report on performance indicators to evaluate compliance with internal control procedures

Identify and evaluate variations in adoption of corporate governance requirements in operations to determine causes

Develop and implement modifications to procedures to facilitate compliance with internal control procedures

Knowledge Evidence S NYS Comments

Discuss ethical considerations and confidentiality for management and handling of files and records

Identify and explain the key features of financial legislation relating to taxable transactions and reporting requirements

Explain a range of methods of work practices and routines relevant to internal control procedures.
Describe the key requirements of organisational policy and procedures relating to:

- corporate governance
- financial delegations and accountabilities

Identify and explain the key principles of internal control and auditing.

Performance evidence S NYS Comments

Interpret and comply with corporate governance requirements, organisational policy, and financial delegations and accountabilities
review corporate governance requirements and implement effective operating procedures

Monitor policy and relevant financial legislation.