Document title: Assessment 3 Version 1.0 Page 1 of 10 Resource ID: FNSACC624 FNSACC624 Monitor corporate governance activities Assessment 3 LA023832 Document title: Assessment 3 Version 1.0 Page 2 of 10 Resource ID: FNSACC624 What you have to do This assessment consists of five (5) tasks. All tasks are compulsory. The OLS learning resource together with suggested reading, research and web tutorials will assist you with completing this assessment. Competency requirements Students must achieve a satisfactory result in each task. If you do not satisfactorily complete any of the tasks, you will be required to do a gap assessment or a resubmit of the entire assessment. Please note you will not be able to attempt the assessment more than twice without approval. To achieve a satisfactory result in these topics you must achieve the following results for each task: Task Element of competency Satisfactory/Non Satisfactory 1 1.1 Establish corporate governance standards and practices 2.1 Analyse organisational practices to identify corporate governance obligations and performance 2.2 Examine queries from statutory and other regulatory authorities for corporate governance failure to assess change effects on internal control procedures 2.3 Assess content and structure of reports, returns and processes for review to evaluate policies being followed by organisation 3.3 Establish management processes to support corporate governance 3.4 Establish reporting plans to ensure completion of compliance requirements within scheduled time frames Satisfactory/Not Satisfactory Document title: Assessment 3 Version 1.0 Page 3 of 10 Resource ID: FNSACC624 Task Element of competency Satisfactory/Non Satisfactory 2 1.1 Establish corporate governance standards and practices 2.1 Analyse organisational practices to identify corporate governance obligations and performance 2.3 Assess content and structure of reports, returns and processes for review to evaluate policies being followed by organisation 3.1 Analyse and monitor internal control procedures to determine performance indicators for compliance with corporate governance requirements 3.2 Evaluate information technology systems to determine their use and suitability for recording data from operations and transactions for corporate governance obligations 3.3 Establish management processes to support corporate governance Satisfactory/Not Satisfactory 3 3.2 Evaluate information technology systems to determine their use and suitability for recording data from operations and transactions for corporate governance obligations Satisfactory/Not Satisfactory 4 1.1 Establish corporate governance standards and practices 2.1 Analyse organisational practices to identify corporate governance obligations and performance 2.2 Examine queries from statutory and other regulatory authorities for c ...

1. Document title: Assessment 3 Version 1.0 Page 1 of 10
Resource ID: FNSACC624
FNSACC624
Monitor corporate governance
activities
Assessment 3
LA023832
Document title: Assessment 3 Version 1.0 Page 2 of 10
Resource ID: FNSACC624
What you have to do
This assessment consists of five (5) tasks. All tasks are
compulsory.
The OLS learning resource together with suggested reading,
research and web tutorials will
assist you with completing this assessment.

2. Competency requirements
Students must achieve a satisfactory result in each task.
If you do not satisfactorily complete any of the tasks, you will
be required to do a gap assessment
or a resubmit of the entire assessment. Please note you will not
be able to attempt the
assessment more than twice without approval.
To achieve a satisfactory result in these topics you must achieve
the following results for each
task:
Task Element of competency
Satisfactory/Non
Satisfactory
1
1.1 Establish corporate governance standards and practices
2.1 Analyse organisational practices to identify corporate
governance obligations and performance
2.2 Examine queries from statutory and other regulatory
authorities for corporate governance failure to assess
change effects on internal control procedures
2.3 Assess content and structure of reports, returns and
processes for review to evaluate policies being followed by
organisation
3.3 Establish management processes to support corporate
governance

3. 3.4 Establish reporting plans to ensure completion of
compliance requirements within scheduled time frames
Satisfactory/Not
Satisfactory
Document title: Assessment 3 Version 1.0 Page 3 of 10
Resource ID: FNSACC624
Task Element of competency
Satisfactory/Non
Satisfactory
2
1.1 Establish corporate governance standards and practices
2.1 Analyse organisational practices to identify corporate
governance obligations and performance
2.3 Assess content and structure of reports, returns and
processes for review to evaluate policies being followed by
organisation
3.1 Analyse and monitor internal control procedures to
determine performance indicators for compliance with
corporate governance requirements
3.2 Evaluate information technology systems to determine
their use and suitability for recording data from operations
and transactions for corporate governance obligations

4. 3.3 Establish management processes to support corporate
governance
Satisfactory/Not
Satisfactory
3
3.2 Evaluate information technology systems to determine
their use and suitability for recording data from operations
and transactions for corporate governance obligations
Satisfactory/Not
Satisfactory
4
1.1 Establish corporate governance standards and practices
2.1 Analyse organisational practices to identify corporate
governance obligations and performance
2.2 Examine queries from statutory and other regulatory
authorities for corporate governance failure to assess change
effects on internal control procedures
2.3 Assess content and structure of reports, returns and
processes for review to evaluate policies being followed by
organisation
4.1 Assess achievement of performance indicators and review
against key result areas
4.2 Monitor compliance preparation processes and review in
line with corporate governance requirements

5. 4.3 Analyse failures in compliance to diagnose shortcomings
and to improve processes, in line with corporate governance
requirements.
Satisfactory/Not
Satisfactory
Document title: Assessment 3 Version 1.0 Page 4 of 10
Resource ID: FNSACC624
Task Element of competency
Satisfactory/Non
Satisfactory
5
1.1 Establish corporate governance standards and practices
2.1 Analyse organisational practices to identify corporate
governance obligations and performance
2.2 Examine queries from statutory and other regulatory
authorities for corporate governance failure to assess change
effects on internal control procedures
2.3 Assess content and structure of reports, returns and
processes for review to evaluate policies being followed by
organisation
4.1 Assess achievement of performance indicators and review
against key result areas

6. 4.2 Monitor compliance preparation processes and review in
line with corporate governance requirements
4.3 Analyse failures in compliance to diagnose shortcomings
and to improve processes, in line with corporate governance
requirements.
Satisfactory/Not
Satisfactory
Result
- Assessment
result:
Satisfactory (S) /
Not satisfactory
( NS)
Document title: Assessment 3 Version 1.0 Page 5 of 10
Resource ID: FNSACC624
Instructions
The following information applies to all tasks in this
assessment.
• Before you begin these tasks you should:
o Access and read the online resources, including relevant
sections/and topics on

7. Assessment 3 on the OLS as per the Study Guide.
o Read the specified sections of the Corporations Act 2001
(Cth) and any relevant
cases. These can be accessed on:
http://www.austlii.edu.au/au/legis/cth/consol_act/toc-C.html
• For all tasks in this assessment you should:
o Complete your answers in Microsoft Word and submit this file
on the OLS. Take care
not to over-deliver content. You should demonstrate that you
have a sound analysis
and understanding of each task. Some responses only require a
sentence at most
and others a paragraph.
• For all the tasks in this assessment:
o You are not expected to write the sections of legislation word
for word. You should
read the sections and analyse them to gain a general
understanding of basic
corporate law principles affecting corporate governance
o You are not limited to the OLS resources and independent
research is encouraged
provided you properly reference these sources using either the
APA or Harvard
Referencing style. Any Reference/Bibliography required are to
be presented as an
overall Reference at the end of this Assessment. Footnotes are
not required.
• For this assessment, you must:

8. o Demonstrate an ability to access, research and critically
analyse information
contained within the Assessment, on the OLS and information
that the learner
researches independently.
o Read and analyse resources to produce a written response
using clear language, with
correct terminology, grammar and spelling to convey meaning.
A guide as to length is provided with each question. A
paragraph is ten lines or less
on an A4 portrait sheet. All answers must be submitted on the
template provided in
New Times Roman format font size 12.
o For Tasks 2 and 4 you must read and examine the ABC Ltd
Case Study found in the
learning resources provided and the find and research the
information on APRA’s
Inquiry into Commonwealth Bank (CBA) Final Report 2018:
Section A.
o You must answer each task satisfactorily and not make any
material errors to be
assessed as satisfactory for this Assessment.
http://www.austlii.edu.au/au/legis/cth/consol_act/toc-C.html
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Resource ID: FNSACC624
o You must provide reasonable evidence of the required correct
knowledge and

9. performance evidence to be assessed as satisfactory.
o You will be assessed in this assessment as either satisfactory
or not satisfactory.
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Resource ID: FNSACC624
Task 1
Jack is a director of Colour Image Pty Ltd, a graphic arts
company which specializes in printed
fabrics. Incorporation of the company was registered on the 1
February 2015.

10. At a board meeting in 20 January 2017 it was decided to send
Jack overseas to study design and
explore new screen printing techniques and Jill his wife was
appointed as the second director. Jack
was away travelling on behalf of the company for six months.
He missed all board meetings during
this time.
In May (while Jack was still overseas) Colour Image Pty Ltd
incurred a debt, as a result of which
the company became insolvent. The company balance sheet
valued its goodwill at very high levels
based on its research and development costs. However the
company has now been placed in
liquidation and the liquidator is seeking compensation from all
directors.
Jack has asked for advice on his possible liability for insolvent
trading under the Corporations
Act, 2001 and any defences, which may be available to him.
In your answer, you must provide evidence to answer on each of
the following points:
a) Define and explain insolvency and examine the best
accounting basis for judgment for
a Court, management or accountant to make an assessment of
solvency/insolvency.
Write no more than three paragraphs.
b) Recognise eight common indicators of insolvency. Point
form is satisfactory.

11. c) Explain legal liability for insolvent trading (i.e. a director’s
duty to prevent
insolvent trading, and failure to prevent incurring of debt: ss
588G (1) & (2)).
Write no more than one paragraph.
d) A legal defence that may be available to Jack. Write no more
than one paragraph.
e) Assume Colour Image Pty Ltd is required to lodge financial
reports with the ASIC and the
financial year ends on 31/12 each year. Prepare a timeline of the
common forms
/resolutions/returns which Colour should lodge with ASIC to
ensure the company’s
compliance with the Corporations Act 2001. Write no more
than three paragraphs. Any
diagram or timeline excluded.
Document title: Assessment 3 Version 1.0 Page 8 of 10
Resource ID: FNSACC624
Task 2
Read the ABC Case Study in the learning resource on the OLS
and provide evidence in short

12. answers written response to answer the questions below.
a) Identify and explain at least two (2) financial performance
indicators and at least one
non-financial performance indicator for the company for the
period between 2001 to
2007. Write no more than one paragraph.
b) Compare these performance indicators described in 2 (a)
against the (poor)
performance indicators of the Company in 2008. Describe the
major differences?
Write no more than one paragraph.
c) Identify and explain in detail five poor corporate governance
practices that led to the
company’s eventual collapse. Three (3) of these practices must
be accounting
issues/poor accounting practices and the other two must relate
to the failure of
management processes and information systems to support and
implement good
corporate governance obligations. Write no more than five
paragraphs.
(d) Identify three internal and two external stakeholders
affected by the poor corporate
governance processes displayed by the ABC Learning Group
Limited and their
potential liabilities and losses. Write no more than two

13. paragraphs.
(e) Explain how ABC Learning Limited’s business strategy,
management processes and
culture contributed to their corporate failure and failure as an
ethical corporate
citizen. Write no more than four paragraphs.
Document title: Assessment 3 Version 1.0 Page 9 of 10
Resource ID: FNSACC624
Task 3
a) Evaluate an accounting software system you have used or had
access to and make an
evaluation of its use, suitability and advantages for recording
data from operations and
transactions for corporate governance obligations. Write no
more than two paragraphs.
b) Examine how integrated accounting software systems may
benefit better monitoring
of corporate governance and employee records. Write no more
than two paragraphs.

14. Task 4
“Commonwealth Bank has agreed to pay $700 million and legal
costs to resolve proceedings
brought by AUSTRAC after admitting to breaching (inter alia)
anti-money laundering and counter-
terrorism laws.”
Source: 4 June 2018 headline from News.com.au
Article: Largest fine in Australian corporate history
(Accessed 30 August 2018)
On 28 August 2017, the Australian Prudential Regulation
Authority (APRA} announced it would
establish a Prudential Inquiry into the CBA group. This was
following a number of incidents in
recent years that have damaged the reputation and public
standing of the CBA group.
The purpose of the Prudential Inquiry, contained in the Terms
of Reference, was to examine the
frameworks and practices in relation to governance, culture and
accountability within the CBA
group that have contributed to these incidents. The Panel
provided its Progress Report on 31
January 2018 and its Final Report in 1 May 2018.
You are required to access APRA’s inquiry into the
Commonwealth Bank of Australia (CBA)’s Final
Report: Executive Summary and Section A: Governance (p 3-27
and p47) by accessing the
following link: https://www.apra.gov.au/media-centre/media-
releases/apra-releases-cba-
prudential-inquiry-final-report-accepts-eu.

15. It is also recommended that you locate and examine CBA’s
annual report for 2017.
Using the Final Report and at least two other independently
identified sources, prepare a written
report:
a) Describing the structure of the Board of directors of the CBA
including its
composition/standing Board Committees and the various roles
of the Directors.
Write no more than four paragraphs excluding charts and
diagrams.
b) Identify and explain three areas of misconduct /breaches of
various laws by CBA
arising from their conduct in this instance. Write no more than
three paragraphs
excluding charts and diagrams.
https://www.news.com.au/
https://www.apra.gov.au/media-centre/media-releases/apra-
releases-cba-prudential-inquiry-final-report-accepts-eu
https://www.apra.gov.au/media-centre/media-releases/apra-
releases-cba-prudential-inquiry-final-report-accepts-eu
Document title: Assessment 3 Version 1.0 Page 10 of 10
Resource ID: FNSACC624

16. c) Analyse CBA’s failures to adequately monitor and diagnose,
shortcomings and
improve processes, in line with good corporate governance
principles and to
properly manage compliance and management risks as
highlighted by the APRA
inquiry. Write no more than six paragraphs excluding charts and
diagrams.
Provide an adequate bibliography as part of your answer. You
should acknowledge
all independently researched sources using either the APA or
Harvard
referencing method.
Task 5
Research and prepare a short written summary report.
Access the following link:
https://financialservices.royalcommission.gov.au/Pages/default.
aspx
Find, identify and explain in a written report four detailed
examples of poor corporate governance
as outlined to the The Royal Commission into the Misconduct in
the Banking, Superannuation and
Financial Services Industry was established on 14 December
2017 by the Governor-General of the

17. Commonwealth of Australia, His Excellency General the
Honourable Sir Peter Cosgrove AK MC
(Retd). Write no more than six paragraphs.
https://financialservices.royalcommission.gov.au/Pages/default.
aspxCompetency requirementsTask 5