FNSACC516 Implement and Maintain Internal Control Procedures - Accounting and Finance Assignment Help

Question 1. Define Corporate Governance.

Question 2. List two (2) benefits of Good Corporate Governance.

Question 3. List two (2) implications of poor Corporate Governance.

Question 4. Corporate Governance arises at three levels being Enforceable Obligations, Self-Regulation and Ethical Standards. Briefly discuss how ethical responsibilities are included in Corporate Governance.

Question 5. Briefly describe the Corporate Governance responsibilities of Shareholders, Directors & Auditors.

Question 6. Below are three (3) external participants in Corporate Governance regulation. Briefly describe how each of these organisations influence corporate governance in companies.

Question 7 .Standards of behaviour and conduct are an integral part of good corporate governance. Briefly discuss five (5) situations where ethics may be considered in a Financial Services Company.

Question 8. Define an Internal Control System.

Question 9. List three (3) main objectives of an internal control system.

Question 10. List the five (5) components of an effective internal control system (CRIME).

Question 11. When developing internal control procedures for internal operations, describe the benefit of dividing the accounting system into smaller sections for analysis.

Question 12. List four (4) ways the internal auditor tests internal controls.

Question 13. List the two (2) classes of controls in an EDP system.

Question 14. List seven (7) general accounting controls..

Question 15. The three (3) duties separated by segregation of duties are.

Question 16. List two (2) processes or controls that could detect or prevent fraud ways of deterring fraud.

Question 17. List two (2) inherent safeguards in a payroll system.

Question 18. Explain how Key Performance Indicators are used as part of an internal audit plan.

Question 19. Which Principle of the ASX’s Corporate Governance Principles requires listed entities to make timely and balanced disclosures? Briefly discuss the main points of this principle. You may need to perform an internet search to obtain the required information.

Part B

Case Study Up and At Them is a training organisation. It invoices customers when it provides training information and courses rather than collecting cash when services are provided. The responsibility for revenue and receivables is separated between three clerks as follows:

· A Training Course Clerk responsible for: the sale of training information.

· A Material Clerk responsible for: registration for training courses.

· A Donations Clerk responsible for: donations received from benefactors. The three Clerks report to an Office Manager, who reports to the Managing Director. The Office Manager prepares regular accounting information from the integrated computer accounting system. When the mail arrives each morning the Office Manager opens and sorts the mail. Each clerk is then given the receipts that relate to their responsibilities. They prepare a batch total and enter the details into the computer accounting system. At 3pm, a deposit list is printed from the integrated accounting system and one of the clerks takes all the receipts and the deposit list to the bank. The Office Manager approves all bad debt write-offs. The Managing Director considers all the employees to be trustworthy, but a number of factors have caused her to want to conduct an internal audit:

· She has heard that internal controls are very important.

· Sales have been low compared to previous periods.

· She needs to employ a temporary staff member to fill in for one of the clerks while on maternity leave. The Managing Director has asked you to review the internal controls over sales and donations to provide suggestions for improvement.

TASK 1 Draw a simple organisation chart of the current staff and list their responsibilities. SUBMISSION ACTIVITY

Document 1 Organisation Chart

TASK 2 List the weaknesses that are apparent in the current processes.

TASK 3 Explain how processes may be changed so that controls provide reasonable assurance that cash receipts are accurately recorded.

TASK 4 Another duty of the Donations Clerk is to process the weekly payroll. They are responsible for the entire payroll process from recording employee information, to preparing the payroll, authorising the payroll, processing the payroll payments and then storing payroll information. Payroll is processed using a software package. The Donations Clerk is the only person in the office with an account and password for the system. Once payroll is processed, a physical report is printed and stored in a lever arch file. This file is located in an unlocked cupboard next to the Donation Clerk’s desk. List two (2) issues with the current payroll process that comprise its integrity and/or confidentiality. Briefly discuss your recommendations for change.

TASK 5 You are working for an accounting firm – KDC Auditing who have been approached by Up and At Them Training on the 1st June 2021, to assist the business with some audit services. Up and At Them is a small business providing training services to the business sector. The engagement is to carry out a preliminary evaluation of the basic accounting subsystems (accounts receivable and payable, cash receipts and payments) and related internal controls for the company.