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Corporate Governance and Internal Control

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Added on  2020-03-16

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Roles of an internal auditor The roles of internal auditor include: -Verification the existences of diverse assets and recommendation of proper safeguards for protection -Evaluation of adequacy of the system of internal controls -Recommendations that include the following principles of improvements in controls -Assessment of compliance with policies and procedures as well as sound business practices -Assessment of compliance with state and federal regulations as well as contractual obligations -Review of operations to determine whether outcomes are consistent with the established objectives and whether the functions are undertaken

Corporate Governance and Internal Control

   Added on 2020-03-16

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Answer to Assessment 1:Q1. Definition of “Corporate Governance” Corporate Governance indicates the manner anorganization is administered. Again, it is themechanism by which corporations are directed as well ashandled. Essentially, itindicatesundertaking the business according to the desires of stakeholders’. Fundamentally, itis necessarilyundertaken by the board and the concerned committee for the corporation’sstakeholder.Q2. Internal ControlInternal control is a procedure for assuring attainment of acorporation’sintents infunctionalefficiency, dependable financial reporting, and conformity with regulations,regulations as well asstrategies. An intensive concept, internal control engages everythingthat manages risks to acorporation.Identification and explanation of the key principles of internal control and auditingThe Main Principles of internal control include:-Establishment of Responsibilities-Maintenance of records-Insurance of Assets by maintaining important employees-Segregation of different duties-Mandatory employee rotation-Split Associated Party Accountability-Using Technological Controls-Performance of regular independent reviews
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Q3. Roles of an internal auditorThe roles of internal auditor include:-Verification the existences of diverse assets and recommendation of proper safeguards forprotection -Evaluation of adequacy of the system of internal controls-Recommendation of improvements in controls-Assessment of compliance with policies and procedures and sound business practices-Assessment of compliance with state and federal regulations and contractual obligations-Review of operations to determine whether outcomes are consistent with the establishedobjectives and whether the functions are undertaken as per plan-Investigation of reported incidences of scam, embezzlement, stealingPersons responsible for an entity for an entity’s reviewed and development of internal controlsystem are internal as well as external auditor. Q4. AccountabilityAccountabilityrefers to the liability of either a specific individual or else a department toundertake a particular task in accounting. For example, in essence, anassessorre-evaluates acorporation’s financial assertion is in charge and legally liable for any kind of misstatementsor elseoccurrences of fraud.
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Q5. Role of Auditing and Assurance Standards BoardTheAuditing and Assurance Standards Boardcan be considered as an independent,constitutional agency in chargeofdesigning diversestandardsas well asguidanceforassessorsand providing otherassuranceservices.Q6. Australian Auditing StandardsAustralian Auditing Standards institutesnecessities and deliver application as well as otherrequisite instructive material particularly on:accountabilities of an assessor when involved to carry out an assessment of a financialassertion, or else comprehensive set of financial declarations, else wise otherhistorical pecuniary information; andentire form along with content of assessor’s reportName and definition of three Australian Auditing StandardsASA 102- This Australian Auditing Standard presents the directives as well as regulations asregards compliance with different ethical necessities at the time of performance of audit,analysis as well as other assurance engagements. ASA 200- This Australian Auditing Standard presents the overall purposes of theIndependent Auditor along with the performance of an audit consistent with the AustralianAuditing Standards. ASA 220-This Australian Auditing Standard presents the directives for maintenance ofquality and mechanisms of quality control for audit of a financial assertion as well as otherhistorical financial information.
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Q7. Roles of ASXASXoperates as an operator of market, clearing house as well as facilitator of paymentssystem. Essentially, it also supervises conformation todifferent operating regulations,endorses corporate governance standards among listed corporations ofAustralia and assists toedify different retail investors.Explanation of “The Corporate Governance Principles and Recommendations”The expression “corporate governance” illustrates the structure of regulations, associations,systems as well asprocedures within entities and by means of which authority is particularlyexercised and guarded within companies. Fundamentally, good corporate governanceencourages investor confidence that is critical to the capability of business concerns listed onthe ASX to try to acquire capital. However, these principles as well as recommendationspresentsuggested corporate governance exercises for different entities that are listed on the(Australian Stock Exchange) ASX. As suchfrom the point of view of the Council, thesesuggested corporate governance practices are likely to attain good governance results andmeet the sensible expectations of majority offinanciers in most circumstances. The structureof specific principles as well as recommendations intends to promote essential principles thatinclude the following:Q8. Role of ASICThe role of ASIC involves the following:-Maintain, assist and enhance the performance of financial system and businesses-Promote both confident as well as informed participation by financiers and users inthe financial system-Administers the law effectually and with minimal procedural necessities
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