1 - ETHICAL CONSIDERATIONS AND REQUIREMENTS For each case below, identify which principles of the Ethical Rulings of Professional Accounting Bodies may have been violated and why: 1) Fred Smith, an accountant in a public accounting firm, performs the audit of Widgets Ltd a company in which his wife has acquired a majority interest. 2) VVA & Smell chartered accountants do both the bookkeeping and auditing for one of their clients. 3) ABC & Co have been offered the audit of ZIP Ltd a medium size private company. Due to their current workload, they cannot take on the audit. ABC has approached you, offering to recommend your audit firm to ZIP Ltd for 10% of the audit fee if ZIP agree to hire you. 4) The audit firm you work for has had its working papers for BOSS Pty Ltd, subpoenaed by the High Court. The audit partner has supplied the Court with the working papers without obtaining permission from BOSS Pty Ltd. QUESTION 2 - CLARIFICATION ON APPLICATION OF CORPORATE GOVERNANCE REQUIREMENTS FROM AUTHORITATIVE AND RECOGNISED SOURCES Part 1: There are many sources of regulatory and best practice guidance on corporate governance, including: 1) the ASX (including the ASX Corporate Governance Council) 2) the Australian Institute of Company Directors 3) the Governance Institute of Australia You are the finance manager for Best Pty Ltd, a large proprietary company in the retail industry that is growing and will soon become a public company. The directors are seeking clarification on the application of corporate governance requirements to their company. From the above list choose the most appropriate sources of guidance to answer the following questions from the directors: 1) List the ASX corporate governance principles. 2) For any THREE of these principles, explain them to the directors in your own words, and then advise the directors what kind of information they would need to disclose to comply with this principle. Part 2: The directors have now asked you to review the corporate governance section of a published annual report of a company in the retail industry (examples include but not limited to Woolworths, Wesfarmers, Metcash, and Harvey Norman). In approximately 200 words, comment on the selected corporate governance policy for ONE of the principles you have chosen in 2) above and why Best P/L should include something similar in their policies. (Attach a print out of the extract of the annual report to your assignment - do NOT print the whole annual report, only the extract that you used as guidance) QUESTION 3 - DEVELOP TIMETABLES FOR IMPLEMENTATION OF CORPORATE GOVERNANCE REQUIREMENTS IN CONSULTATION WITH STAKEHOLDERS There are many stakeholders that are either responsible for or affected by a company's corporate governance. List FIVE stakeholders and then for each explain HOW they are responsible or affected