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Accounting Issues in ‘APRA Probe Risks CBA Rating’

   

Added on  2019-11-26

5 Pages980 Words225 Views
Advanced Accounting

IntroductionThe present paper aims to analyze and examine the key accounting issues discussed in thearticle ‘APRA probe risks CBA rating’ published in ‘The Australian Financial Review’. Ans.1. Accounting issues addressed in the articleThe given article has addressed the accounting issues such as impact of inadequatefinancial planning and money laundering, necessity of adopting proper accountabilityframeworks in the business context through demonstrating the example of Commonwealth Bank(CBA) (Shapiro, Coorey, and Eyers, 2017). Ans.2. Argument for support or against with the article in context of the accounting issuesdiscussedThe article has presented the need of investigating the corporate governance nadaaccountability framework of the banking sector periodically in order to identify the accountingissues faced by the banks. The article ahs presented the impact of Australian PrudentialRegulation Authority (APRA) investigation on the global credit ratings of the CommonwealthBank. As per the article, the material adverse findings identified as a result of the APRAinvestigation has weakened the credit profile of the bank. The APRA probe has revealed the lackin the CBA governance and risk management frameworks that resulted in its failure to preventmoney laundering at the time of financial crisis. In this context, I support with the viewspresented in the article that banks need the adoption of a proper accountability framework forensuring the long-run health of the financial system. The banking sector need to adopt therecommendations of APRA as stated in the article for implementing the required changes in the

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