Implement and Maintain Internal Control Procedures

This document provides information on the implementation and maintenance of internal control procedures in organizations. It covers topics such as the privacy act, ASIC, corporate governance, ethical implications, and key features of internal control. The document includes answers to specific questions related to these topics.

Running Head: IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDURES
IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDURES
Name of the Student
Name of the University
Author Note

1IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Table of Contents
Assessment 1..............................................................................................................................3
Answer to Question 1.............................................................................................................3
Answer to Question 2.................................................................................................................3
Answer to Question 3.................................................................................................................3
Answer to Question 4.................................................................................................................4
Answer to Question 5.............................................................................................................4
Answer to Question 6.............................................................................................................4
Answer to Question 7.................................................................................................................4
Answer to Question 8.............................................................................................................5
Answer to Question 9.................................................................................................................5
Answer to Question 10...........................................................................................................6
Answer to Question 11...........................................................................................................6
Answer to Question 12...........................................................................................................6
Answer to Question 13...........................................................................................................6
Answer to Question 14...........................................................................................................7
Answer to Question 15...........................................................................................................7
Answer to Question 16...........................................................................................................7
Answer to Question 17...........................................................................................................7
Answer to Question 18...........................................................................................................8
Answer to Question 19...........................................................................................................8
Answer to Question 20...........................................................................................................8

2IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Reference..................................................................................................................................10

3IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Assessment 1
Answer to Question 1
The regulation of Privacy Act 1988 describes that the way of handling the personal
information. The definition of personal information as per the act is “the opinion or
information, whether it is true or not as well as whether it is recorded in the form of material
or not, about the individual identified or the individual who is identifiable reasonable.
Thirteen Australia Privacy Principles are included in the privacy act that is applied to some
organizations of private sector as well as most of the government agencies of most of the
Australian and Norfolk Island (Watts and Casanovas 2018).
Answer to Question 2
The agency take necessary steps for ensuring that the file or report which contains
personal information is not misleading, is accurate, up-to-date and complete. It also ensures
that the report or file is protected by the security guards that are reasonable in circumstances
which are against the loss, use, disclosures as well as against any misuse. In addition, the
privacy act ensures that the file or the report has to be given to the person that is un
connection to the provision of the service of the agency (Watts and Casanovas 2018).
Answer to Question 3
The accountant exerts the responsibility for his clients, the managers of the company,
creditors, investors and the outside regulatory bodies. They are responsible for the financial
statements validity on which it work as well as they has to perform their duties by following
the laws, standard as well as all the principles that are applicable for ensuring transmission
information, accuracy and timely (Watts and Casanovas 2018).

4IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Answer to Question 4
The ethical implications of finding the work colleague is accessing some of the files
that they should not access violate the policy of maintaining confidential records and
safeguarding the policy. Individuals are required to protect the confidentiality as well as
security of the personal information or the important files with confidential information. The
implications may results in the distortion of the data (Watts and Casanovas 2018).
Answer to Question 5
Australian Securities and Investments Commission which is also known as ASIC is
the independent form of the Australian government body which acts as the regulator of the
Australia corporate. Their role is for enforcing and regulating the laws of the company as
well as the financial services for protecting the Australian investors, consumers and the
creditors. The scope and authority of the ASIC is determined with the help of Australian
Securities and Investments commission Act, 2001 (Stubbs and Higgins 2018).
Answer to Question 6
ASIC is responsible for administering all or the parts of the legislations such as
Insurance Contracts Act 1984, corporation act 2001 and National Consumer Credit Protection
Act, 2009.
Answer to Question 7
According to Corporation Act 2001, the director of the company discharges their
duties and exercises their powers with at most care as well as diligence. The duty is subject of
the judgment rule o the business which requires making business judgment by the directors:
 Making the judgment or the proper purposes and in good faith.
 Believing rationally that the judgments taken are in corporation’s best interests.

5IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
 It requires that for the purpose of judgment, there should not be any material personal
interest.
 Informing themselves about the judgment, that is in the extent to believing it to be
appropriate (Bottomley 2016).
Answer to Question 8
The key features of new tax system (GST) Act 1999 are that, this regulation has set
three provisions for the following:
 It permits the requirement for the information for the specification of the tax invoices.
 The act of GST provides that the financial supply has meaning that is given by
regulations.
 Identification of the acquisitions which have the eligibility for reduced input tax credit
that is under the act of GST. It states that the percentage at which the input tax credit
is minimized for reduced credit acquisitions.
Answer to Question 9
The law regarding new global standards for the automatic exchange of the
information of financial accounts is done for reporting to the tax authorities for the purpose of
combating tax evasion. The government of Australia has enacted the law and entered into the
international agreements and enacted the law. The financial institutions of Australia have to
identify the accounts that are held by the customers who are entities or foreign tax residents
that are connected to foreign residents (Eccleston and Gray 2014). They can contact for the
information of the existing accounts for complying with the obligations under CRS and
FATCA laws. In addition, the financial institutions of overseas must have to identify their
customers of Australia tax resident and report the accounts through the localized tax
authorities to them (Eccleston and Gray 2014).

6IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Answer to Question 10
It is the organization of the international independent standards which helps the
businesses, other governments and governments for understanding and communicating their
impacts on the issues such as human rights, corruption and climate change. It is the non-profit
organization which promotes the economic, social and environmental benefits for everyone.
Answer to Question 11
The effective structure of internal control helps the managements for all the policies
and procedures for achieving the goals of safeguarding the assets, ensuring integrity and
reliability of the financial information, ensuring compliance, promoting effective as well as
efficient operations and accomplishment of overall goals and objectives.
Answer to Question 12
The corporate governance of the company consists of the three main pillars that is
Board of directors, Management and External auditor. However, the fourth one is the external
auditors. Internal audit is defined as the method of consulting and autonomous assurance
which are created for increasing the value and improving the operations of company. It helps
the company in achieving goals of the company by the use of disciplined and systematic
methodology for estimating and increasing the efficiency of the governance as well as
procedures for risk and control management (Chan, Watson and Woodliff 2014).
Answer to Question 13
Even if there is well designed internal control in the organizations, they only provide
the reasonable assurance for achievement of objectives. However, in all the internal control
system, there are limitations that are inherent such as internal control over the financial
reporting can be circumvented by the improper override of management. Hence, there

7IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
contains the risk that the material misstatement prevented as well as deleted on the timely
basis by the internal control over the financial reporting (Chan, Watson and Woodliff 2014).
Answer to Question 14
The consequence of the inadequate internal controls includes inefficient allocation of
the resources, higher premium on the cost of equity capital, loss of confidence of consumer
and market shares.
Answer to Question 15
According to ASX corporate governance principles, the CEO should not become chair
of same company. The CEO will not be able to qualify as the ‘independent director’ unless
and until the there has been the period of at least the years of three between the company’s
ceasing employment and serving the board (Tricker 2015).
Answer to Question 16
The operational policies and procedures governance manual reflect the current
practices and expectations of the community that assists in the accountability. These written
policies provide the evidence of the intended practices which are consistent with the values of
the organizations that should be evaluated and updated periodically (Tricker 2015).
Answer to Question 17
The five components of the internal control are as follows:
 Control Environment- The good control environment are created by example,
attitude and communication that is created by the management.
 Risk Assessment- It consists of the areas where there is greatest threat.
 Monitoring and Reviewing- There should be periodically monitoring and reviewing
of the internal control system. This assures the management that the activities of
internal control have not lost due to turnover or other factors.

8IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
 Information and Communication- The information available and for the
communication of the responsibility as well as expectation, clear as well as evident
plan is required for the good system of internal control.
 Control Activities- These activities are occurred in the system of internal control
(Hribar, Kravet and Wilson 2014).
Answer to Question 18
The stages of auditor’s internal control evaluation are as follows:
 Determining the extent as well as the types of the controls which is used by clients.
 Determining that which of the control among all, the auditor needs to rely on.
 On the basis of the above two steps, determining which procedures of accounting
have to be reduced or expanded.
 Lastly, on the basis of all the mentioned procedures, recommendations have to be
given to the client for improving the systems of the internal controls (Hribar, Kravet
and Wilson 2014).
Answer to Question 19
The internal audit is the examining the issues that is related to risk and business
practices of company throughout the year and external audit is examining the financial
records and then giving the opinion on the company’s financial statements that is conducted
annually (Pizzini, Lin and Ziegenfuss 2014).
Answer to Question 20
The seven internal control procedures in accounting are as follows:
 Separation of Duties- It involves separating the responsibility for the bookkeeping,
reporting and auditing that helps in less chance of coming fraudulent activities.

9IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
 Accounting System Access Controls- It involves access to controlling through
electronic access, lockouts and passwords which authorizes only authorized users to
access.
 Physical Audits of Assets- It includes tracking of physical assets and hand-counting
cash that helps in revealing any well-hidden discrepancies in the account balances.
 Standardized Financial Documentation- Standardizing of the financial transactions
document helps in maintaining the record keeping consistency over the time.
 Daily or Weekly Trial Balance- It helps in adding reliability of the double- entry
accounting system by ensuring that the books are balanced.
 Periodic Reconciliation in Accounting Systems- It enables periodic reconciling cash
balances with bank for reducing the errors and discrepancies in the accounts.
 Approval Authority Requirements- In this, authorizing is required for the
transactions of certain type by the specific managers that helps in reducing fraud
(Hribar, Kravet and Wilson 2014).

10IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Reference
Bottomley, S., 2016. The constitutional corporation: Rethinking corporate governance.
Routledge.
Chan, M.C., Watson, J. and Woodliff, D., 2014. Corporate governance quality and CSR
disclosures. Journal of Business Ethics, 125(1), pp.59-73.
Eccleston, R. and Gray, F., 2014. Foreign accounts tax compliance act and American
leadership in the campaign against international tax evasion: revolution or false
dawn?. Global Policy, 5(3), pp.321-333
Hribar, P., Kravet, T. and Wilson, R., 2014. A new measure of accounting quality. Review of
Accounting Studies, 19(1), pp.506-538.
Pizzini, M., Lin, S. and Ziegenfuss, D.E., 2014. The impact of internal audit function quality
and contribution on audit delay. Auditing: A Journal of Practice & Theory, 34(1), pp.25-58.
Stubbs, W. and Higgins, C., 2018. Stakeholders’ perspectives on the role of regulatory reform
in integrated reporting. Journal of Business Ethics, 147(3), pp.489-508.
Tricker, B., 2015. Corporate governance: Principles, policies, and practices. Oxford
University Press, USA.
Watts, D. and Casanovas, P., 2018. Privacy and Data Protection in Australia: a Critical
overview.