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Desklib is an online library for study material with solved assignments, essays, dissertations, etc. It offers a wide range of subjects, courses, and universities. The text includes case studies, assessments, and written questions related to accounting and corporate governance. It also covers the roles and responsibilities of the board members, delegation of authority, and financial delegation. The importance of auditing the management controls before jumping on the financial sector is also discussed.

Accounting
Assignment

1
Table of Contents
CASE STUDY 1..............................................................................................................................................2
CASE STUDY 2.........................................................................................................................................3
CASE STUDY 3.........................................................................................................................................4
Case Study 4................................................................................................................................................5
Assessment 1...............................................................................................................................................6
Written Questions........................................................................................................................................7
References.................................................................................................................................................22
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CASE STUDY 1
Answer to case Study 1 (a)
Answer to case Study 1 (b)
The weaknesses that area unit apparent within the current processes area unit as follow:
a) There isn't any maker and checker construct within the processes.
b) As all the workers area unit making ready a detail of batch total and entered a similar
within the laptop to come up with deposit slip while not the main points being check by the other
person, thus the error is preserved within the details itself and wrong deposit slip can get
generated.
c) As the workplace manager is given the authority to approve the debt write-off that is
completely wrong as these ought to be initial approved by the decision maker (Belton, 2017).
Answer to case Study 1 (c)
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Managing Director
Clerk 1- He is
responsible for the
sale of training
information
Clerk 2- He is responsible
for registration for
training resources
Clerk 3- He is responsible
for donations received
from benefactors
Office Manager-He is responsible to prepare
regular accounting information from the
integrated accounting system

3
All staff United Nations agency handle money ought to take a training for all the rules to be
coplied with before any authority to deal with the safe.
When a payment is received , the employee or the person handling it should have recorded
immediately as a credit of the amount so received and pin it with a unique number as would be
recognised.
Every single day a ban econciliation statement should be prepared in order to check the
differences in the passbook and the cash book and thereafter record those and account them
herewith as necessary (Boghossian, 2017).
Two persons ought to open the mail after they expect money or checks within the mail.
CASE STUDY 2
Answer to case Study 2 (a)
As per the management of Margaret River Wines the number of sales administration staff in
the Western Australia branch is more than the required, so the management has reduce the
number of Sale administration staff with an objective to achieve the target of maintaining
profit per employee. The attitude of the Management of Margaret River Wines was too rough
as they can’t increase the sales so they reduce the cost of the employees to maintain the same
profit (Charles H, et al., 2015).
Answer to case Study 2 (b)
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The risks that the internal auditors needs to take into account in the internal audit of the
Western Australia Sales functions are:
a) Decrease in sales as the staff of sales deparment is being terminated.
b) The appointment of unexperienced staff in sales department which may lead to
inefficiency in sales report presentation and strategy.
c) There is no maker/ checker system in the sale department as the staff in the sales
department is being fired (Coate & Mitschow, 2017).
CASE STUDY 3
Answer to case Study 3 (a)
a) The cash register rolls are reconciled by the sales clerk which should be done by the
account staff.
b) The cheque should be signed by the single authority and which should be hirarchy
maintained.
Answer to case Study 3 (b)
Very Less involvement of higher manager as Branch Manager/ Regional Manager can use
the fund without intimate the Divisional Manager which may lead to fraud.
Answer to case Study 3 (c)
Role of divisional manager should be increased.
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Cash register and BRS should be prepared by the specialist and the time frequency for
reporting period of BRS should be less.
In respect to expenditure report, Divisional manager should involve more that can lead to control
over cost and ineffenciency (Covaleski, et al., 2003).
Case Study 4
Exceutive Summary
The main aim is to audit the internal controls of Red Earth Limited and find the necessary risks
that are there in the system which would help in increasing the overall effectiveness of the
system and generate more sales and also lead to better actiosn from the management.
Objective and Scope
The main objective is to perform an audit of the internal control system of the company and find
the best results possible that would help in increasing the overall efficiency of the system of the
company. The scope includes audit of the financial statements, audit of the internal controls,
audit of the activities of the management, analysis of the key findings and then giving out the
most appropriate audit opinion (Grundy, et al., 2017).
Specific Findings and Recommendations
1. The financial statements are not updated and many key information have not been
included and this presents a wrong picture of the company like the 3 months BAS budget
has not been completed, so that should be finalised. The payment of interest earned has
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still not been credited in the books. There was a difference in the debit credit adjustment
so that should also be taken care of (Abdullah & Said, 2017).
2. No proper delegation of duty is there and that is a major issue in the internal control of
the company and that should be regulated like the transactions of the clerk should be
restricted to $1000 per transaction. The warehouse person should not be given the
responsibility of keeping the inventory records and there should be another person for
that (Kaufmann, 2017).
3. It was also seen that the annual report was still not completed and the percentage of
deadline missed rosed from 10% to 50% so that should be taken care of and all the
regulatory requirements should be completed on time (Coate & Mitschow, 2017).
b.
Event Number Non-Compliance Changes Required Timeline
1
Non-completion of the BAS
reports for last three
months
The BAS reports
needs to completed on
monthly basis
Before the completion of
the current month all the
prior period BAS reports
needs to be completed
2
Non-Filling of the annual
report of ASIC
The annual report of
ASIC need to be filled
within the regulatory
due dates
The annual report needs
to be completed and filed
and all the penalty that is
levied needs to be paid
3
The registered office of the
company was changed but
no forms were lodged
The accountant needs
to file the necessary
forms updating the
changs adress
The accountant should
complete all the
formalties within a week
Assessment 1
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MCQ Answer
1. e)
2. e)
3. c)
4. e)
5. d)
6. a)
7. e)
8. a)
9. e)
10. b)
11. e)
12. e)
13. c)
14. d)
15. b)
16. c)
Written Questions
1. Corporations Act
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The Corporations Act imposes specific certain rules and procedures which the
administrators and the people of the corporations should comply with. These duties are:
It is the duty of the individuals to perform their work and duty with utmost care and
responsibility that one should have;
It is the duty to act in a true and fair manner which doesnot compromise the interest of an
individual of any company or an organisation.
Decisions created by administrators should be created for correct functions and within the
best interests of the corporate as an entire. once the corporate is in associate degree
‘insolvency context’, this can need that the interests of the company’s creditors be taken
into consideration (Vieira, et al., 2017).
Industry Specific Act
This is another Act which governs the legislative framework of corporate governance.It
helps in setting of frameworks for the companies to follow and take effective decisions
with respect to that (Webster, 2017).
2. ROLES OF BOARD Members For Effective Governance
Legislations in making
The role defines an appropriate execution of all the rules and regulations which has to be
complied with in the best interest. The policies are different for all the levels of
management as well as the employees. The role of the board is to develop good policies
that is rules and acts which should be followed and be executed by the levels of
management.
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Making of a decision process
Decision taking involves creating alternatives relating to the organization's vision, mission,
and techniques. Boards produce alternatives relating to issues that square measure
strategic and vital. While taking decisions, the higher level of management will even give the
responsibility of certain parts which are not related to governance to others (Iggers, 2018).
Inspection
This role is an important one which is played by the anagement as they think that managing an
organisation is in their hands. Some of the forcefully enter into the decisions of the management.
The committees of the board play an important role in the management of the organisation by
deeply looking into the functions of the committees and keeping the expectations clear enough.
BOARD RESPONSIBILITIES
The board have a variety of responsibilities which they need to perform and comply with in order
for an effective management inturn for an effective governance. From supervision to maintaining
and complying with the ethical standards and monitoring compliances are all the responsibilities
of the board which they should perform.
The boards generally perform all the supervison in the financial sectors. The controls of
management which has economic indicators are measured by the board relating to cash
management and the finds which are properly invested or not and all things related to handling of
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the budget process for effective internal control resulting in good governance. The assets of the
company should be protected. The inspection of the house as a quality process which results in
reduction of risk improving the morale as well as the standards is well established by the board.
The board prescribes the proper behaviour which should be maintained which is tolerable for the
organisation (Borit & Olsen, 2012).
After these listed responsibilities it is of common importance that it should decide whether the
books of the accounts should be maintained and reviewed on a daily basis.
3. One need to delegate authority to whole entirely totally different persons therefore
nobody has a time or an intention to deceive anyone.
The business has approx. of individuals of around minimum of five and maximum of
fifteen persons it's not appropriate or better that one should be given all the authoritical
responsibilities to take all the decisions. It should be divided among all so that all of them
have a chance to take decisions.
The Different type of duties which ought to be performed are:
Not a single person should be liable for the fulfilment of the duties prescribed.
Product which is to be ordered
The receipt of the product
The payment is to be completed and authorised
Retaining the accounting records
To reconcile the books of accounts
Comply with directions
One need to turn out procedures that embody directions :
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Placing of an order for the wanted product or a service
Authorisation of the negotiable instrument lie cheques
The miscellaneous expenses to be passed
To take a check on the cash in and out
Checking the accounting records and thereby passing it if appropriate
The responsibility of one is that the person to whom the authority is delegated to
authorise the books of accounts and the recordsand review the orders of the products
from the suppliers itself.
4. A financial (expenditure) Delegation is that the authority to approve expenditure or enter
into money commitments on behalf of The University of state capital. All delegations
apply to positions and to not people in accordance to the Principles - Delegations of
Authority.
The advantages of Delegation
The word management means getting work done by others in a very coordinated manner
and efficiently handling the day to day chores of managing a company where each and
every person gets some responsibility. If someone is given an appropriate delegation of
authority to do any particular task or a department responsibility the success will only
depend upon how efficiently it has ben delegated and how effectively it will work and
produce the desired results for the company as a whole.
The main functions of a management is planning, organising, controlling, directing,
coordinating where the delegation that is assigning a work is considered to be a superior
approach in terms of these. .
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Delegation implies that even the subordinate workers or staff members is given an
opportunity to perform certain responsibilities and duties.
The power delegation shows that if there is an absence of the same then there would be
no opportunities for the subordinates and no sense of responsibility to anyone.
5. The customary establishes desires associated shows how the financial statements should
be checked and verified for the good efficient management which performs the various
functions and therefore the effectiveness is shown thereby.the verification of the
management controls is on the top of the list as compared to any financial related work.
If the management is running efficiently but not the financial sector of that management
then it shows a downfall in the economic point of view of the organisations
management.and thus would affect the published made economic statements which
would differ and have a great downfall.
The main occupation of an auditor is to audit and verify the managements internal control
over the financial sect of the copany which would enace the economic viability of the
organisation, and if there is some sort of a discrepancy where the managements controls
are not being handled efficiently then the weakness of the management would prevail and
an economic opinion of weakness is formed. Therefore, in order to avoid any weaknesses
one should that is the auditor should take care of the management before jumping on the
financial sect of the company. The assessment would show a prevalent distinguishable
weakness up to the mark over financial coverage would possibly exist even once
financial statements do not appear to be materially misstated.
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6. Analysing vertically
Where there is a single budget prevailing this analysis holds good. A percentage is
calculated in order to find out the relation termed as correlation of all the accounts
separately to calculate the gain earned financially. The financial gain is not used to set off
the expenses. The way to calculate with vertical assets is wih the help ogf the total assets
and the total liabilities to compare the individual records.
Analysing horizontally
Where there is a comparison of two data then horizontal analysis is used. The users of the
financial statements which show the true and fair view of the company reviews the data
very deeply in order to see the corectness. The analyst who have an optimistic and a
positive approach only want gains financially and assets appreciation resulting in the
lowering of all the expenses and liabilities. In order to get answer in percentage form it
should divide by 100 to get the percentage desired results.
Trend Analysis
Where there is an analysis of more than two data but less than five mainly three or five
then the trend analysis is used to predict the correct result of the information provided.
The users of the financial statements will see the patterns which would gradually show an
increase or decrease in the same where the expenses would be treated as a null effect and
queries arising because of the changes in business will be represented.
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Ratio Analysis
Ratios show a relationship between two values of the budgets, thereby comparing the
budgets with the bottom line that is the benchmark which is set upon for the analysis. The
categories of ratios are financial, leverage, liquidity and turover ratios some showing the
price earnings too. The ratios helps in the analysis of the results with the bechmar set
showing the SWOT analysis of the company.
7. Cash at Bank Report- On day after the money being deposited or withdrawal the report
relevancy identical is being generated. These report is ready on usual to supply a good
control over the money maintenance.
Departmental Sales Report: These report is ready on a monthly basis because it are
inconceivable to organize the sale report on a usual.
Statement of financial Position: These statement is ready on quarterly, 0.5 yearly and
annually.
8. The role of all the stakeholders including the shareholders, customers, investors etc the
law should be followed by each one of them and they should abide by it. In case of
performance appraisals and the development of the high measurable performances shall
be allowed to go about.where the corporate governnce is the benchmark to abide by the
stakeholders the information and data would be good and extremely reliable which is
provided by the same on a timely basis. There would be an approachable attitude for the
stakeholders towards the management where there would be right to communication for
the management as a whole.
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9. Coso, Cobit and INTOSAI are published sources that can be accessed to assist in
developing internal controls for corporate governance requirements.
10. A synthesis of the most metrics utilized by international leading firms for measurement
and evaluating the performance of internal audit is given as follows:
 victimization of Balanced card instrument
 victimization qualitative strategies by realizing some satisfaction studies for the
purchasers of internal audit, one main objective being the characteristic of the potential
causes for the unhappiness of the client;
11. Typical Causes of control Failure
There are many doable causes of control failure. the united kingdom Turnbull report
offers samples of causes of failure however this list isn't thorough.
1. Poor judgement in decision-making. control failures will generally arise from
individual selections being created supported inadequate info provision or by
inexperienced workers.
2. Human error will cause failures though a well-designed management control setting
will facilitate control this to a precise extent (Vieira, et al., 2017).
12. management Environment:
the setting of the management ensures that the organisation of the same its policies
processes is a management completed as a whole. The management has expectations and
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develops some for the efficient running of the organisation because of the envireonment
in which the management belongs to. For good code of conduct the top levels of
management creates a best framework for the same. The ethics and good values is to
which the management should comply and thereafter the efficiency and the effectiveness
of the management functions should prevail and the governance also takes place after the
effectiveness of the internal control syste of the management.
13. The Australian Accounting Standards Board (AASB) is an agency in Australia which
helps in maintaining the minimum amount of cash to cover the standard amount for all
types of sectors in the Australian economy. The board also is named for all the good
deeds as it contributes to the events organised in the whole world which involves a cover
of cashand it alo makes sure that the Australian community participates in every such
event of cash coverage of the Australin economy. The unit of measurement commenced
at intervals the Australian Securities and Investments Commission Act 2001. Income
taxes unit of measurement the foremost very important sort of Australia’s taxation policy
developed there itself, and picked up by the national through the tax policy in Autralia’s
geographic point. The Tax Levied is collected by the national government of Australia
where the GST revenue is collected and in turn transferred to the State Governments as a
part of distribution where it has lower rates which is ascertained by the Commonwealth
Grants Commission.
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Some merchandise foreign into Australia don't seem to be subject to GST.
These area unit merchandise that:
are GST-free or input taxed if provided inside Australia like basic food, bound medical
aids and appliances, cars to be used by bound folks with disabilities and precious metals
qualify surely customs concessions.
Financial regulation in Australia is split in the main between the Australian Securities and
Investments Commission (ASIC) and also the Australian prudent regulatory agency
(APRA). The Australian Securities Exchange has conjointly vie a job in regulation
market conduct.
Responsibilities
If an enclosed management responsibility is systematically unnoticed, a good control
system can create it clear who isn't playing an allotted task.
14. Record Keeping
A human mind is not a tool for keeping a trac of all the information and data. It is very
difficult to retain such stuffs and therefore too many transactions need a continuous
record keeping memory. A right record keeping procedure or a tool should be kept in
order to avoid any discrepancies in near future related to transactions where the datas and
the information are ept safely of the company.
Asset Records and Custody
Where there is an internal system, cash and records are kept which are not same in nature
for quality purpose.the custody of the records are kept safely or any future benefit of the
company.
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Fairness
This is the most important concept which is fairness of the transactions and a transparent
file or data is given more value to the investors and other stakeholders.this being the most
important and attractive feature where the fairer the company looks the more attractive it
becomes for the investors and other stakeholders including the employees where their
morale boosts and their productivity increases.
Responsibility
The Board of directors has the benefit of acting on behalf of the company and therefore
they are the ones on whom the functions of the company relies upon. They have to accept
the whole responsibility of the company and have to exercise their authority and duties
effectively. The Board of directors have to act in the best interest of the company from
appointment of officials to all other work the management ought to perform for the
growth of the company as a whole.
Transparency
A principle of governance is that stakeholders are forced to abide by the companies
policies rules and regulations. A transparency relation and line should be kept in between
the company and the stakeholders in which they are interested to invest and thus they
should act maturely while investing in the particular company.the financials of the
company should show a transparent view of the company and thus the stakeholders
should analyse these financials and judge whether to invest or not. A sense of openness
should inculcate in the minds of the investors in order to approach the company and
invest in it.
Controlled Access
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A practical records management system should address the accessibility of documents by
outlining the folks approved to access records. frequently appraise what records are often
accessed or disclosed, and by whom, to make sure skilled ethics area unit maintained.
Have a procedure in situ for once somebody outside of your business requests access to
records. Classify records in line with the extent of confidentiality to contour accessibility
and avoid having personally-identifiable data constitute the incorrect hands.
Security
Business records might contain personal or counselling, moreover as sensitive or business
data like monetary knowledge. it's very important that these be unbroken secure. Records
unbroken in textual matter kind and filed in cupboards ought to be secured, presumably
during a robust area or safe. If you manage your data on-line or use cloud storage,
confirm to implement strong security measures like encryption and use of robust
passwords. Have a comprehensive recovery arrange just in case of knowledge destruction
by weather components, larceny or deletion.
15. Principle one – responsibleness
Principle two – distinctive functions for assortment of non-public data
Principle three – getting Consent for assortment, Use of speech act of non-public data
Principle four – Limiting assortment of non-public data
Principle five – Limiting Use, Disclosure, and Retention of non-public data
Principle six – Accuracy of non-public
Principle seven – Security Safeguards
Principle eight – Openness regarding Policies
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Principle nine – Individual Access to non-public data
Principle ten – difficult Compliance
Step 1: verify and rate steer
Step 2: analysing the current flow of data and assessing the risk associated with it
Step 3: the access and the usage policies of the privacy should be active and verified
Step 4: execution of the group action to be performed
Step 5: the progress should be analysed at regular intervals.
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References
Abdullah, W. & Said, R., 2017. Religious, Educational Background and Corporate Crime Tolerance by
Accounting Professionals. State-of-the-Art Theories and Empirical Evidence, pp. 129-149.
Belton, P., 2017. Competitive Strategy: Creating and Sustaining Superior Performance. London: Macat
International ltd.
Boghossian, P., 2017. The Socratic method, defeasibility, and doxastic responsibility. Educational
Philosophy and Theory, 50(3), pp. 244-253.
Borit, M. & Olsen, P., 2012. Evaluation framework for regulatory requirements related to data recording
and traceability designed to prevent illegal, unreported and unregulated fishing. Marine Policy, 36(1),
pp. 96-102.
Charles H, C., Giovanna, M., Dennis M, P. & Robin W, R., 2015. CSR disclosure: the more things
change…?. Accounting, Auditing & Accountability Journal, 28(1), pp. 14-35.
Coate, C. & Mitschow, M., 2017. Luca Pacioli and the Role of Accounting and Business: Early Lessons in
Social Responsibility. s.l.:s.n.
Covaleski, M., Evans, J., Luft, J. & Shields, M., 2003. Budegting Research Three Theoretical Prespectives
and Criteria for selective Integration. Journal of Management Accounting Research, 15(3), pp. 3-49.
Grundy, Q., Held, F. & Bero, L., 2017. A Social Network Analysis of the Financial Links Backing Health and
Fitness Apps. American Journal of Public Health.
Iggers, J., 2018. Good News, Bad News: Journalism Ethics And The Public Interest. s.l.:s.n.
Kaufmann, W., 2017. The Problem of Regulatory Unreasonableness. First ed. New York: Routledge.
Vieira, R., O’Dwyer, B. & Schneider, R., 2017. Aligning Strategy and Performance Management Systems.
SAGE Journals, 30(1).
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Webster, T., 2017. Successful Ethical Decision-Making Practices from the Professional Accountants'
Perspective. ProQuest Dissertations Publishing.
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