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FNSORG505 Provide Financial and Business Performance Information Assessment

   

Added on  2020-10-23

7 Pages1051 Words176 Views
FNSORG505 Provide Financialand business performanceinformation Assessment 2

Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY..................................................................................................................................1a) Director’s concern about the amount of resources being allocated to the monitoring process.....................................................................................................................................................1b) Objectives of an audit committee............................................................................................1c) Recommend terms of reference for the committee................................................................2d) Identify who should constitute the committee........................................................................2e) Interaction between the audit committee and both the internal and external audit functions.2CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5

INTRODUCTIONFinancial information is necessary to assess the business situations and conditions. Eventually, financial information is provided with the use of financial statements like profit and loss account, balance sheet, income statements etc. (Jha, A., 2019). In the absence of these reports it, will be difficult to analyse the business situation. Herein, the project report Wesfarmers company is selected. It has its headquarters in the Perth, Australia. The company produce different kind of financial reports which are discussed in this project report.MAIN BODYa) Director’s concern about the amount of resources being allocated to the monitoring processThe companies need to make financial reports for presenting the profit and loss. For thispurpose, they require to follow statutory requirement and information. In the absence of properinformation it will be difficult to make the reports. As well as organisations make the financialreports to meet the statutory requirement. The statutory requirement can be for the shareholdersand for the audit committee. This is the reason that, it is necessary to make the financial reportsfor the shareholders because they need to know about the financial situation of the company sothat they can invest in the company accordingly.Apart from it, financial reports are required for the audit committee because thiscommittee checks the prepared financial statements to evaluate the accuracy of financial reports.So these are the statutory requirement to prepare the financial statements.b) Objectives of an audit committee Additionally, the audit committee has own roles and responsibilities that fulfil theobjectives of organisation are needed to be followed (Loughranand McDonald, 2014). Some ofthem are as follows:Objective of audit committee:To look after the performance of internal audit function.To minimise the impact of external changes upon the financial statement and itsperformance.To integrate the financial statements and reports.Proper engagement with the external auditors.1

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