Implementing and Maintaining Internal Control Procedures Report

This report provides a detailed analysis of corporate governance, focusing on internal control procedures, ethical considerations, and financial delegation. It explores the rules, relationships, systems, and processes essential for effective corporate governance, including the roles of directors and managers in upholding ethical standards and fostering trust. The report examines organizational policies, requirements, and the importance of ethical decision-making, confidentiality, and corporate social responsibility. It also delves into the key features of financial legislation related to taxable transactions and reporting requirements, such as the Income Tax Assessment Act 1936 and the Goods and Services Tax Act 1999, as well as the role of the Australian Accounting Standards Board (AASB) and International Financial Reporting Standards (IFRS). The report emphasizes the significance of organizational policies in financial delegation and accountability, highlighting how these elements contribute to maintaining discipline, increasing profit, and fostering investor confidence. This assignment is a valuable resource for students studying finance, providing insights into the practical application of corporate governance principles and their impact on organizational performance.

Implement and maintain
internal control procedures
Assessment 1

Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................1
Task .................................................................................................................................................1
a. Rules, relationships, systems and process of corporate governance........................................1
b. Corporate governance requirement, organizational policy and financial delegtion................2
c. Ethical consideration and confidentiality for management......................................................3
d. Companies promote responsible and ethical decision making................................................3
e. Key features of financial legislation relating to taxable transaction and reporting
requirement..................................................................................................................................4
f. Requirement of organizational policy elated to corporate governance and financial
delegation.....................................................................................................................................5
Conclusion ......................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Corporate governance is a system that includes rules, regulations and practices that
organizations use and follow for control and maintain. Through this system corporations balance
interest of stakeholders, shareholders and employees, customers and suppliers. Corporate
governance makes rules, policies and regulations for improve and manage performance of
organization. So these things helps in maintain well relation between stakeholders and
management of organization and also helps in prevent conflicts (McCahery, Sautner and Starks,
2016). This report will be cover that rules, relationships, systems and process of corporate
governance for organization. Its requirement and policies, ethical considerations, ethical decision
making.
Task
a. Rules, relationships, systems and process of corporate governance
Corporations achieve good corporate governance through if organization director and
managers fulfill their duties with honesty and they also focus on establish better and well trust
with investors and public so that helps in achieve good corporate governance. Organization
select and appoint competent board members that they have knowledge about manage and
control on activities and performance so these things helps in achieve good corporate
governance. If all employees and seniors of the organization fulfill their responsibility with
honesty so that helps in growth and improve company it and public confidence increase.
If corporate governance of organization, make rules and policies in good way and
correctly. These things helps in maintain god culture and relationship in organization that helps
in improve positive attitude in members and establish long term relationship. If this system
evaluates performance and fill gap for improve qualities and knowledge so that thing also helps
in achieve good governance. Confidence present in members of governance for management of
risk that means they confidentially face risk and not ignore complex situation. Organization
easily achieve good corporate governance if members of governance give timely information to
organization about all situations and conditions.
Corporate governance is a set of rules, regulation, relationship and process in
organization because it make rules for organization and it members, seniors, management and
stakeholders for keep control on them and they can not do work with their own wish so these
rules and regulations helps in maintain discipline in organization. Rules like memorandum, and
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article of association of organization and record books and documents with accurately and
correctly that helps in achieve good governance.
Its relationship with organization also very closely because all rules and regulation made
by this system. It also provide structure to all stakeholders, management and members that helps
in achieve objective and adopt tricks and tips for follow all these that helps in increase profit and
decrease loses. For examples if members enter all transactions and entries accurately and fairly
so organization easily evaluate profit (Cuomo, Mallin and Zattoni, 2016).
Corporate governance system helps in making decision by organization and it financial
management because through this it get all guidelines and records and through all these it
evaluate and make decision about increase profit and prevent profit. It main purpose is increasing
trust and believe of investors and public so they easily invest their capital. All process of set and
make rules and policies in organization by this system.
b. Corporate governance requirement, organizational policy and financial delegtion.
Corporate governance is very important for organization because it set all rules, policies
and relationship in organization for achieve organization goal through maintain discipline and
increase profit. So it also makes audit committee that includes three members with well
knowledge about finance and accounting. It very important and mandatory for internal control on
all performance of members in organization. It requirement is provide shapes for growth and
maintain future capital market. This system provide protection to investors and encourage for
invest through set rules and establish trust between then with organization.
Organizational policy is a framework that make for provide protection to employees,
customers and organization as well. It also includes employment policies that specially follows
for provide protection and motivate to them so through this they do work with their full efforts.
All policies and procedures make by organization and these all helps in maintain discipline and
achieve target for increase profit. This policy includes like workplace safety, management, roles
and functions.
Financial delegation is an authority to members related to finance and enter in financial
authority. So delegation of finance gives right to enter in financial matter of organization.
Organization make rules and procedure for fulfill responsibility related to finance so it give
authority and keep record about authorization that given by organization to any individual and
members of organization (Anginer, 2018).
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Accountability is a process of assurance that organization and individual evaluate their
own performance and behavior related to those that they responsible for that. Accountability
focus on Corporate governance for evaluate own performance and give answer by all members
about their action and results. It this system not present in organization because everyone do
work with their own wish and they do not fulfill their responsibility so that things effect on
performance.
c. Ethical consideration and confidentiality for management.
Ethics is a norms and standard that considered difference and aware about right and
wrong. This framework provides knowledge about decision and anything that is related to
organization which is acceptable or not. This is very important because through this organization
adopt and follow accountability, policies and delegations and all are enforced in organization by
good corporate governance. Management of organization follow ethical consideration for
making decision because through this it knows about right and wrong. Management of
organization follow all rules and ethical consideration set by corporate governance. So through
ethical consideration organization provide accurate, fair and timely financial information that
helps in keep disclosure. Management also use this framework for time to time evaluate of
situation and performance in ethical way and it also analyze financial books and records for
evaluate that all files and records keep proper and systematic or not because accurate and
fairness is very important for organization so ethical consideration is very important for
organization.
Confidentiality is also a principle of corporate governance that means keep all records
and information about anything and organization related as well as personal information. So
management of organization has need to keep data and information with confidence between
management and employees. So it has to locked all files that related to employees, not share any
information to anyone etc. it use this framework top secure and safe all personal data and
organization related data. For handling files and records also has to keep with confidentiality
corporate governance and management not secure and safe data because all things is a assets for
every organization (Davies, 2016).
d. Companies promote responsible and ethical decision making.
Companies responsible for many thing and it has many responsibility so organization
fulfill all responsibilities for their operations and performance. Corporate social responsibility is
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a policy that organization has to follow for provide care of society and sustainable development.
This responsibility helps in provide protection to environment because company save and care
natural resources for future generation so it decrease use of more resources. This responsibility
manage overall performance and make positive image on society. It also responsible for society
and it produce and operate organization according to latest fashion, trend and choice and demand
of society. So these thing also helps in provide satisfaction to peoples of society. Investors attract
from organization if it follow CSR so investors invest more and more capital and it easily
increase their capital. It adopt all rules and policies that government make for protection of
employees and society and environment. Corporate governance of organization enforce all rules
and laws so employees also feel belonging with it and their turnover decrease. Responsibilities of
accountability is very important for members of organization because through this they evaluate
and analyze their on performance and improve as well.
Ethical decision making is also part of CSR so through above framework organization
make decision ethically. It also provide protection to employees through follow different types of
rules and regulations like health and safety, anti discrimination and dismissal act so all these
helps in motivate to them and they feel well. If organization want to take and change any
decision so employees accept easily. It promote ethical decision making so it has to make
decision about favor to employees. For ethical decision making organization has to take
decisions honestly and accurately. So for responsibility and ethical decision making it has to do
many above things and follow as well. It also spread awareness about safety and environment in
organization so it helps in make goodwill in market. (Agrawal and Cooper, 2017).
e. Key features of financial legislation relating to taxable transaction and reporting requirement.
Income tax assessment act 1936 is an act that made by parliament of Australia. It is a
financial legislation that use by all organization and individual for calculate tax. Under this act
peoples of Australia pay tax on their income in financial year because income tax and any tax is
income of government. This tax pays by individual and organization if they applicable according
to slab rate according to income so some fix percent of their income has to give to government.
This type of tax is given by person that get salary or self employed. Regular and definite source
that means it is a features of income tax act that government get regular and it is definite source
income of government.
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Goods and service tax act 1999 is a tax on goods and services and it is pay by
organizations according to their income in financial year through goods sale of goods and
services. It also related to value added tax. So its features that it covers all indirect tax that cover
by government on goods and services in different way. It’s one more feature is that it controls
and regulate limit on turnover (Rodriguez-Fernandez, 2016).
Legislation for reporting requirement in Australia accounting standard board (AASB)
an independent agency that requirement for all organization for report their all financial reports.
So these standards help in maintain report with honesty and accurate and fair. International
financial reporting standard is an accounting standard that set by related board and it
responsible so both standard are related to financial legislation that enforce to organizations and
entity for prepare systematic and proper reports.
f. Requirement of organizational policy elated to corporate governance and financial delegation.
Organizational policy is very important for every organization and it is use by corporate
governance in organization because it set all rules. Regulation and policies related to employees
and customers is made by corporate governance so it is very important and requirement. Through
this it provides protection to them and also motivate to them. That helps in decrease turnover of
employees and they do work with their full efforts. Many policies are present and important for
organization like code of conduct, health and safety policy and anti discrimination policy.
Organizational policy is also important and requirement for financial delegation because
through policy organizational corporate governance decide and give authority to members of it
that they enter in financial matter. In financial legalization through policy of organization give
authority for responsible financially in organization. Organizational policy also important in
accountability because in policy of organization includes this framework that helps in evaluate
performance and honesty time to time and they also improve time to time their performance.
Policy play vital role regarding to these matter because employees honesty increase through this
and control on finance are maintain. Policy of organization contribute importance in financial
delegation because through this organization authorized persons utilize funds in effective manner
and increase profit. (Black, 2018).
Conclusion
From above study it has been summarized that corporate governance play vital role in
organization because it makes rules regulations and policies for maintain performance and
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discipline. All things direct related to corporate governance like accountability, organizational
policy and financial delegation. Ethical consideration means that this helps in knows difference
between right and wrong. Organization also has to keep all information and data with
confidential. It also promote ethical decision making and Corporate social responsibility that
helps in care environment, society and sustainable development.
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REFERENCES
Books and Journals
McCahery, J. A., Sautner, Z. and Starks, L. T., 2016. Behind the scenes: The corporate
governance preferences of institutional investors. The Journal of Finance. 71(6). pp.2905-
2932.
Cuomo, F., Mallin, C. and Zattoni, A., 2016. Corporate governance codes: A review and research
agenda. Corporate governance: an international review. 24(3). pp.222-241.
Black, B. and et.al., 2018. Which Aspects of Corporate Governance Do and Do Not Matter in
Emerging Markets.
Agrawal, A. and Cooper, T., 2017. Corporate governance consequences of accounting scandals:
Evidence from top management, CFO and auditor turnover. Quarterly Journal of
Finance. 7(01). p.1650014.
Davies, A., 2016. Best practice in corporate governance: Building reputation and sustainable
success. Routledge.
Anginer, D. And et.al., 2018. Corporate governance of banks and financial stability. Journal of
Financial Economics. 130(2). pp.327-346.
Rodriguez-Fernandez, M., 2016. Social responsibility and financial performance: The role of
good corporate governance. BRQ Business Research Quarterly. 19(2). pp.137-151.
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