University Capstone Project: NZ Company Financial Governance Analysis

This capstone project analyzes the annual reports of three New Zealand companies: Westpac Banking Corporation, The A2 Milk Company Limited, and Auckland International Airport Limited. The study examines how these companies implement the FMA (Financial Markets Authority) government principles, focusing on areas such as board of directors, corporate social responsibility, risk management, disclosure and transparency, corporate culture, legal and statutory requirements, ethical standards and values, and performance management. The project delves into the risk management frameworks, corporate governance policies, and ethical codes of conduct of each company, highlighting their approaches to risk mitigation and compliance with regulatory standards. The analysis includes a review of audit reports and the roles of the board of directors in ensuring effective corporate governance. The conclusion emphasizes the importance of adhering to established policies and procedures, as well as the significance of shareholder theory and audit policies in maintaining sound SME governance.

Running head : CAPSTONE IN ACCOUNTING
Capstone in accounting
Name of the student
Name of the university
Author’s note

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Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Conclusion:................................................................................................................................4
References:.................................................................................................................................5

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Introduction:
The study discusses about the annual reports of three companies at New Zealand
namely Westpac Banking Corporation, The A2 Milk Company Limited and Auckland
International Airport limited. The study also discusses about the FMA government and how
the same could be implemented within the three companies.
Discussion:
The FMA governance principles deals with the board of directors, corporate social
responsibility, risk management, disclosure and transparency, Corporate Culture, legal and
statutory requirement , Ethical Standard and values, performance management and controls.
A2 Milk Company
The a2 Milk Company Limited is listed in the ASX which is commercializes
intellectual property connecting to A1 protein-free milk which is sold below the a2 and a2
MILK brands, as well as the milk associated products like infant method. The head quarter of
the company is in Australia and New Zealand and mainly the production of the company is
sold in these two country (Armstrong et al. 2015).
Risk Management of a2 milk includes the vigorous risk governance framework
managed by the Board and is further maintained by the committee of the asset and risk
management. Effective management team with related expertise in local markets, clearly
expressed levels of authority and agreement processes. A strong risk management of the
company deals with the risk, certain strategies are needed to manage risk. This further
enables the business to further capitalize on opportunities which attracts the interest of the
potential shareholders in the market (Crowther and Seifi 2018).

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As per the corporate governance, the policies of the company is related to the ASX
Principles and the NZX Corporate Governance Code. The Board of the company maintain the
truthfulness of the corporate governance framework as per the code of ethics. The Company
expects its directors, officers and employees to act in accordance with the highest ethical
morals of corporate and individual behavior. The Code of Ethics of the company is intended
to set out the practices which are essential to sustain self-assurance in reliability of the
company. The upper level management consists of the directors, officers and employees are
required to fulfil with both the essence of the code of conduct associated with the company.
Westpac Banking Corporation
Westpac Banking corporation is another chosen company in this assignment and is
one of the big four banks in Australia. The vision of the company is to be one of the world’s
great service companies for assisting customers along with the societies and people to
flourish and grow (Tricker 2015).
The corporate governance of the bank includes some of the significant role in society
and the economy. The Royal Commission has been a respected and difficult process, and the
temporary report has raised a number of significant matters. The main strategy included in
the governance is to increase the interest of the customers.
The corporate governance part consists of different areas like corporate social
responsibility, risk management, corporate culture, legal and legitimacy issues and other
areas. The company audit report is an important area for discussing the SME governance in
the Auckland international airport limited. Hence the company audit report is an important
part of the company. Based on the auditing in accordance with the International Standards on
Auditing (ISA). Hence the responsibility under those standards are further described in the
auditor responsibility in the company consolidated report of the company. However the

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report is made solely to the company shareholders (Ado 2016). As a body the company says
that the audit has been undertaken so that the company might state to the company
shareholders in the company auditors report for no purpose. However to the fullest extent
permitted by law. Hence it is important to the company shareholders that they could imply
the proper audit report. Apart from thus the Auckland Airport board of directors is also
responsible for the company’s corporate governance. However the board is committed to
undertaking this role in accordance with internationally accepted best practise approach in the
company’s business as well as taking into account in both NZX. Hence there are different
principles-
Code of ethical behaviour: The Company have required the highest standards of honesty
and integrity from its company directors and employees. Hence the company is reflected in
the ethical standards and the code of accounts policy. Hence the main ethical codes which are
directed with the code of conduct policy-
1. Responsibility to act honesty and with the personal integrity in the company actions.
2. The responsibility of the company shareholders including the protection of the
confidential information, restrictions on insider trading, rules for making the public
statements on behalf of the company accounting practises and the cooperation of the
company auditor.
3. The responsibility of the community including the compliance with statutory and
regulatory obligations, use of the company assets and conflict resources of the
company interest. However the ethics and the code of conduct policy also sets out the
procedures to be followed and for reporting any concerns regarding the breaches of
the policy and for the annual review of the company. Apart from this the broad
character recognizes the respective roles of the company management. The charter
reflects the sound base in the broader sense which have been developed by providing

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the strategic guidance of the company which could be effective overnight. Hence
these policies could be well helpful for improving the SME management (Rivers
2013).
Risk management: The risk management is an integral part for the company business.
Hence the company have two committees in place to identify and mitigate the potential
financial risk and operational risk for the company which ensures safety and operational
risk committee management. Apart from this the audit and financial risk, safety and
operational risk and stability and environmental risk (Elvin and Hamid 2016).
Conclusion:
Hence it can be concluded that the both of the companies have maintained properly
the policy and procedures which are associated with all three companies. Apart from this the
shareholders theory, audit policy have also well maintained by the company which have been
depicted in the SME governance rule.

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References:
Ado, A. B. (2016). Corporate governance as a mechanism for measuring financial
performance of banks in Nigeria (Doctoral dissertation, Universiti Utara Malaysia).
Armstrong, C.S., Blouin, J.L., Jagolinzer, A.D. and Larcker, D.F., 2015. Corporate
governance, incentives, and tax avoidance. Journal of Accounting and Economics, 60(1),
pp.1-17.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Elvin, P., & Hamid, N. I. N. B. A. (2016). Ownership structure, corporate governance and
firm performance. International Journal of Economics and Financial Issues, 6(3S), 99-108.
Rivers, C. (2013). Negotiating Ethics in China: Comparing Chinese and Western Perceptions
of Chinese Law and Western Corporate Codes of Ethics. International Studies of
Management & Organization, 43(4), 39-63.
Tricker, B., 2015. Corporate governance: Principles, policies, and practices. Oxford
University Press, USA.