Although Directors remain ultimately responsible for the company's compliance with the Corporations Act, some of the responsibilities to maintain compliance may form part of the finance managers' role. Using the internet, search the ASIC website athttp://www.asic.gov.auand answer the following questions:

1. What are the company housekeeping requirements in relation to other records and registers?

2.How long do you have to notify ASIC of the resignation of a director or secretary? How must you notify them of these changes?

3.What are the requirements to pass a solvency resolution?

Privacy legislation is important to consider when managing finances. The Privacy Act 1988 addresses responsibilities that organisations have in relation to the security and confidentiality of customer information.

The legislation covers personal information which is defined as, 'information or an opinion, whether it is true or not, about an individual that can reasonably allow the individual to be identified.'

Searchhttps://www.finance.gov.au/publications/policy/department-finance-privacy-policy

Identify three ways the Australian Privacy Principles affect the role of the finance manager.

Code of conduct: Although an organization may have a code of conduct, there can be situations where a staff member's behaviour does not meet code of conduct requirements.

Read the following information and then answer the questions that follow:

Harry is the financial manager and is approached by one of his friends, Stan, who works in the same company in the sales department. Stan tells Harry that he has authorized the sale of one of the organisation's work computers to his daughter's school. Stan tells the financial manager that he felt sorry for the school, as they do not have much money. Furthermore, the computer that he has authorised the sale for is a few years old and not used much. The sale was for 20% of the asset value and Stan asks the financial manager to make entries into the company books showing the computer as damaged prior to the sale.

:

1. Why would this be a breach of a conduct of conduct?

Code of conduct: Although an organization may have a code of conduct, there can be situations where a staff member's behaviour does not meet code of conduct requirements.

Read the following information and then answer the questions that follow:

Harry is the financial manager and is approached by one of his friends, Stan, who works in the same company in the sales department. Stan tells Harry that he has authorized the sale of one of the organisation's work computers to his daughter's school. Stan tells the financial manager that he felt sorry for the school, as they do not have much money. Furthermore, the computer that he has authorised the sale for is a few years old and not used much. The sale was for 20% of the asset value and Stan asks the financial manager to make entries into the company books showing the computer as damaged prior to the sale.

:

1. Why would this be a breach of a conduct of conduct?

2.How do ethical standards impact on the management of an organisation?

Internal control practices: The Richards and Simonson accountant requested a meeting to discuss some concerns regarding the handling of funds and financial data under the current system. During the meeting the accountant raised the following issues:

Currently each department is doing their own thing as encouraged by the CEO. The concern was that funds could be misappropriated or that financial records were not being recorded in the accounting information system. The accountant explained a few situations that were of concern.

There is not always accompanying receipts for expenses made by the departments.

Many of the timesheets are not being authorised by the department manager.

None of the invoices generated by the departments are pre-numbered so there is no way to tell if there is any missing.

The departments keep their own petty cash on hand and sometimes receipts are not being kept.

1. Recommend a way in which Richards and Simonson could change the process to bring it in line with sound internal control practices.

2.Identify a risk that could lead to a misappropriation of funds and suggest a system to mitigate this risk.