Kế toán, kiểm toán - Accounting statutory obligations

Accounting statutory obligationsLearning objectivesTo learn the compliance requirements of the Corporations Act 2001.To learn the compliance requirements of applicable accounting standards within Australia.To understand audit requirements and other statutory obligations.key termsaccounting standardsaudit committeesauditingauditing standardscompany policycorporate governanceCorporations Actdisclosing entityindependent auditorindustry codes of practiceinternal auditorListing Rulesreporting entitysecuritiesTrade Practices ActThe Corporations Act Provides for limited liability companies and their listing with ASXCategorises public and proprietary companiesDistinguishes between small and large proprietary companiesProvides financial reporting and audit requirementsAdministered by ASICFinancial reporting and audit requirementsProper financial records are maintainedA financial report to be prepared at the end of each financial yearFinancial statements to give a ‘true and fair view’ of company’s financial positionThe financial report must comply with accounting standardsFinancial reportsMust contain:Statement of financial performanceStatement of financial positionStatement of cash flowsNotes to the accountsDirectors’ declarationAudit reportSmall and large proprietary companiesA small proprietary company must satisfy two of the following criteria:gross operating revenue for the year is less than $10 millionvalue of gross assets at year end is less than $5 millionfewer than 50 employees at year end A company that does not satisfy two of these criteria is a large proprietary companyAustralian Stock Exchange - ASXThe primary role of a stock exchange is to provide and maintain a market for trading securities that is:fair and efficient well-informedinternationally competitivewill secure investor confidenceASX Listing RulesASX is required by the Corporations Act to make Listing Rules: listed companies must comply with these Listing RulesListing Rules protect public interest Listing Rules ensure trading is orderly and efficientListed companies are required to provide:half-yearly financial reportspreliminary financial reportsaudited financial reportsAustralian accounting standardsDeveloped and maintained by AASBAASB is also developing the Statements of Accounting Concepts (SACs)SACs provide the framework for general purpose financial reportingSACs are used to develop and revise accounting standardsReporting entities must prepare financial accounts that comply with the accounting standardsAustralian accounting standardsAASBs and the AAS provide the procedures and practices for recording financial transactionsExamples:AASB1001 Accounting PoliciesAASB 1002 Events Occurring after Reporting DateAASB1004 RevenueAASB1008 LeasesAASB1018 Statement of Financial PerformanceAASB1019 InventoriesCorporate governanceManner in which organisations are controlled and governed by the board of directorsShareholders, directors and auditors all play important roles in corporate governanceDirectors are required to publicly disclose their corporate governance practices on:risk managementinternal controlsAudit committeesA subcommittee of the board of directorsComprises non-executive directorsRepresents owners rather than managementSupervises:financial reportingaudit processDeals with the external auditorAuditFinancial auditing is the independent examination and evaluation of an entity’s financial information with the view to expressing an opinionAuditor must be:independentcompetent Auditor’s opinionThe Corporations Act requires the auditor to report on whether the financial statements:are properly drawn up in accordance with applicable accounting standardsgive a ‘true and fair view’ of the company’s financial positioncomply with the Corporations Act and other statutory regulationsAuditing standardsProvide a framework and guidelines for the audit Advise on practices and procedures to be followed during an auditInstructs auditors to have:integrityobjectivityindependenceconfidentialityskill and competenceTypes of auditorsIndependent auditors:render professional services on a fee-for-service basisGovernment auditors:employees of the governmentaudit matters relating to compliance, efficiency and effectiveness of operationsInternal auditors:employees of the organisationduties relate to internal control systemThe role of the internal auditorReview and appraise internal control systemAscertain compliance with established policies, plans and proceduresSafeguard the organisation’s assetsAppraise quality of employees’ performance in carrying out assigned responsibilitiesOther regulations on businessIndustry codes of practiceThe Trade Practices ActSuperannuation levyWorkers compensation insuranceOccupational health and safety Australian Tax ActIndustrial Relations Act 1999