Assessing Internal Control Procedures in Corporate Governance

Assessment event 2 of 4: Skills Unit code and name FNSACC526 - Implement and maintain internal control procedures Qualification code and name Student name Student number Document title: FNSACC526_AE_Sk2of4 Page 1 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Version: 20230912 Date created: 14 October 2022 © 2022 TAFE NSW RTO Provider Number 90003 | CRICOS Provider Code: 00591E This assessment can be found in the: Learning Bank The content in this document is copyright © TAFE NSW 2022 and should not be reproduced without the permission of TAFE NSW. Information contained in this document is correct at the time of printing: 1 April 2024. For current information please refer to our website or your Teacher/Assessor as appropriate. . Document title: FNSACC526_AE_Sk2of4 Page 2 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Assessment information Table 1 Assessment information Information Details Assessment event overview The aim of this assessment event is to assess your performance required to review corporate governance requirements and implement and monitor internal control operating procedures. The unit applies to individuals who use specialised knowledge and analytical skills to confirm that organisational procedures, compliance and quality requirements are met. This assessment is in 3 parts: Part 1: Scenario 1 Part 2: Demonstration Part 3: Scenario 2 cyber security And is supported by: FNSACC526_AE_Sk2of4_APPX.zip URL: https://share.tafensw.edu.au/share/items/9305b819-37a0-4210- 8ee8-72b8cffe4144/0/?attachment.uuid=f2f23a7e-3499-4134-a85f- c2afa56f9b37 Containing:  FNSACC526_AE_Sk2of4_App_Cyber security policy  FNSACC526_AE_Sk2of4_App_Finance Authorisation Policy  FNSACC526_AE_Sk2of4_App_Finance Authorisation Policy FNSACC526_AE_Sk3of4_APPX.zip URL: https://share.tafensw.edu.au/share/items/9305b819-37a0-4210- 8ee8-72b8cffe4144/0/?attachment.uuid=53dd138d-dbca-48e8-9c4d- fcfc6c0d977e Containing:  FNSACC526_AE_Sk3of4_App_ Payments and Accounts Payable policy  FNSACC526_AE_Sk3of4_App_Receipting of payments and accounts receivable policy Note: This assessment may contain links to external resources. The links to the external resources are located at the end of this assessment. Document title: FNSACC526_AE_Sk2of4 Page 3 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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Information Details For guidance on applying reasonable adjustment refer to the TAFE NSW Assessment Guidelines (WDETG18411) . Unit assessment guide (UAG) Refer to the Unit assessment guide (UAG) before attempting this assessment event. The UAG contains information including assessment requirements and how to achieve a satisfactory result. Submission instructions When you complete this assessment, submit it for marking as directed by the assessor. Refer to the Submission Checklist at the end of the assessment to ensure you have submitted all requirements. It’s important to keep a copy of all the electronic and hardcopy assessments you submit to TAFE NSW and complete the assessment declaration when submitting the assessment. Document title: FNSACC526_AE_Sk2of4 Page 4 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Task instructions The assessor will use the criteria in the tasks to determine if you have satisfactorily completed this assessment event. Follow these instructions to ensure you demonstrate the required knowledge and skills. Part 1: Scenario To complete this part of the assessment, read the scenario and complete the following task/s. Scenario: Gelos Enterprises Pty Ltd is growing into a medium organisation. They are looking to become a listed company in the next 5 years, so they need to ensure that the corporate governance is to the highest standard. The company was founded in 2010 by its current Managing Director, Benito Gelos. It has grown from a sole trader operating out of a garage to an employer of approximately 500 staff across New South Wales, Queensland and Victoria. There are currently 5 company directors: Table 2 Information table Name Position Qualifications and Experience Benito Gelos Managing director, founder and majority shareholder No formal qualifications. 30 years' experience in small business Nancy Meghan Administration and Finance Director and CEO Diploma of Accounting. 7 years’ experience in accounting for small business Angelo Gelos Operations and Marketing Director, son of Benito, substantial shareholder No formal qualifications. 15 years’ experience working with his father in this family business Thomas Borg Director of People and Culture Bachelor of Business. 10 years’ experience in human resources management Tan Nguyen Information and Technology Director Bachelor of Commerce. 5 years’ experience in cloud services All directors except Benito are paid a fixed annual salary of $500,000. As founder of the business, Benito is paid a fixed annual salary of $800,000. Document title: FNSACC526_AE_Sk2of4 Page 5 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Board meetings are usually held once a month. All directors are encouraged to attend but it appears that Nancy, as chairperson, is the only director that always attends the board meetings. Angelo has only attended 2 board meetings during the current financial year and has a long history of non- attendance or being distracted on his gambling app when he does attend. As a small to medium enterprise, Gelos has not had the need to appoint an external auditor. However, Benito has suggested that once the company becomes a listed company, his nephew Cosmo Gelos can be appointed as he owns his own chartered accounting practise. Using the scenario provided students need to complete the following tasks: Task 1: Written questions Read each question carefully. Follow the suggested word count when you answer each question. 1. Using authoritative sources to review and analyse the current corporate governance structure and confirm their compliance to key principles and industry practices. Record the outcomes of your review in the following table by identifying the key principle and recording your analysis. You must include the source you have used for your response. Name of sources and links: Table 2 Information table Key Principles Analysis Document title: FNSACC526_AE_Sk2of4 Page 6 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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Document title: FNSACC526_AE_Sk2of4 Page 7 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Document title: FNSACC526_AE_Sk2of4 Page 8 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

2. Research the Accounting Professional & Ethical Standards Board (APESB) Code of ethics for Professional Accountants. In the following table identify and summarise 3 of the requirements of the code and how they apply to the Gelos scenario provided. Table 3 Information table Ethical requirements Summary How is this being applied, or not applied, in Gelo’s corporate governance? Document title: FNSACC526_AE_Sk2of4 Page 9 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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Part 2: Demonstration To complete this part of the assessment, you must participate in a practical activity that will demonstrate your ability to complete skills-based tasks to industry standards. Read all instructions carefully and complete all requirements of the assessment. Demonstration: For this task, the student must demonstrate an understanding of corporate governance principles, the application of these principles by reviewing current policies and procedures and identifying variations using authoritative sources. This task will be conducted for Gelos Enterprises Pty Ltd which is a simulated environment that replicates the workplace. Review Gelos Enterprises Pty Ltd cyber security policy and procedure and how it helps to achieve a good level of corporate governance. Within the review you will need to assess the; compliance with corporate governance requirements relevant to business operations, compliance with legislation, and identify any gaps that will need rectifications. Document your findings in the table provided for this procedure: Review of current procedures: Procedure 1 Cyber security You will need to access the following resources fort his task (see assessment event overview on page 3 for links):  Corporate governance documentation required for role (Gelos Financial Authorisation Policy – FNSACC526_AE_Sk2of4_App_Finance Authorisation Policy).  Organisational operational policies and procedures required for role (Gelos Cyber Security Policy – FNSACC526_AE_Sk2of4_App_Cyber security policy). While you are performing the task, you must demonstrate the following skills:  Review internal control procedures that apply corporate governance requirements to internal operations.  Identify variations in adopting corporate governance requirements in operations and determine their causes.  Interprets and analyses complex information and documentation from a range of authoritative sources, including legislation. Document title: FNSACC526_AE_Sk2of4 Page 10 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Review of current procedures: Procedure 1 cyber security Table 4 Review Current procedure as per policy Assessment of compliance and identification of gaps in internal control procedures Authoritative sources used to identify gap: Document title: FNSACC526_AE_Sk2of4 Page 11 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Part 3: Scenario 2: Develop cyber security policy/procedure To complete this part of the assessment, read the scenario and complete the following task/s. Scenario: Gelos Enterprises Pty Ltd has requested assistance to implement and maintain improved cyber security policy/procedures. Using the findings from the review completed in Part 1 above, produce an improved Cyber Security internal control procedures for Gelos. Task 1 Policies and procedures For this task, you must demonstrate an understanding of corporate governance principles, the application of these principles by producing a cyber security policy and procedure. You are required to review the scenario and then produce an internal control procedure for cyber security by applying corporate governance requirements and following industry-standard practices. You should use the template provided to develop the procedure (see assessment event overview on page 3):  FNSACC526_AE_Sk2of4_App_Policy and procedure template The review of existing procedure, development of new procedure (or updated procedure) must be presented within 2 weeks of the initial review) You must use the same format and layout as the current policy/procedure to make all required changes/updates to policy documents. This task will be conducted in a simulated environment that replicates the workplace and must include the following equipment/resources:  Corporate governance documentation required for role  Organisational operational policies and procedures required for role. While you are performing the task, you must demonstrate each of the following activities: 1.1.Produce required reports. 1.2.Detail and document internal control procedures that apply corporate governance requirements to internal operations. 1.3.Develop the applications of corporate governance requirements from authoritative sources according to industry standard practices. Consider the following for inclusion into the policy and procedure:  user access  protection  backups  training  cloud services Document title: FNSACC526_AE_Sk2of4 Page 12 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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 work from home Task 2: Develop a timetable For this task, you must demonstrate an understanding of timetables by producing a timetable for the implementation of the cyber security policy and procedure that was developed for Task 1. The timetable design is up to the student but should be produced using software and be in a similar format to a Gannt chart or excel spreadsheet. PC2.3 This task will be conducted in a simulated environment that replicates the workplace and must include the following equipment/resources:  Corporate governance documentation required for role  Organisational operational policies and procedures required for role  Computer and software capable of producing charts. To complete this part of the assessment, present. Document title: FNSACC526_AE_Sk2of4 Page 13 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Table 5 Cyber security policy Cyber security policy Task Start date End date Duration Stakeholders to be consulted Document title: FNSACC526_AE_Sk2of4 Page 14 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Assessment checklist The Assessment checklist lists the requirements for each task in this assessment as outlined in the students assessment instructions. The assessor will use this checklist to ensure all required tasks have been completed and submitted and provide feedback for each task. Note that S = Satisfactory and U/S = Unsatisfactory. Table 3 – Assessment feedback Part 1 - Did the student S or U/S Feedback Task 1 Task 1.1 Table 7: review and analyse the current corporate governance structure Task 1.2 Table 8: Ethical requirements S ☐ U/S ☐ Part 2 - Did the student S or U/S Feedback Task 1 Table 5: Organisational compliance of procedures S ☐ U/S ☐ Part 3 - Did the student S or U/S Feedback Task 1 1.1.Produce required reports. 1.2.Detail and document internal control procedures that apply corporate governance requirements to internal operations. 1.3.Develop the applications of corporate governance requirements from authoritative sources according to industry standard practices. S ☐ U/S ☐ Task 2 Timetable Document title: FNSACC526_AE_Sk2of4 Page 15 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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Document title: FNSACC526_AE_Sk2of4 Page 16 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Submission checklist Submit the following for marking: ☐ This completed Assessment 2 of 4: Skills Document title: FNSACC526_AE_Sk2of4 Page 17 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

Additional evidence for verification of assessment Assessors may ask additional questions to clarify your understanding during or after an observation. You may be asked questions:  to clarify your understanding. (for example, ‘Why did you select that particular piece of equipment?’)  to capture contingencies that may form part of the demonstration (for example, dealing with faults or unexpected events)  to prevent a work, health and safety incident. If additional questions are required, these questions and your responses will be recorded in this table. Table 4 Additional evidence Additional question/s asked by the assessor Maps to Part or Task: Student response to the additional question/s Document title: FNSACC526_AE_Sk2of4 Page 18 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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Student assessment declaration This assessment is my original work and has not been:  copied from any source without proper referencing  written for me by any other person except where such collaboration has been approved by a teacher or assessor. Student signature and date Assessment feedback ☐ Reasonable adjustment was in place for this assessment event. If so, please provide details of any reasonable adjustment strategies that were implemented: Reasonable adjustment strategies : Assessment outcome ☐ Satisfactory ☐ Unsatisfactory Comments : Assessor name, signature and date Student acknowledgement of assessment outcome Would you like to make any comments about this assessment? Student name, signature and date Document title: FNSACC526_AE_Sk2of4 Page 19 of 19 Resource ID: SEMX_22_001 _FNSACC526_AE_Sk2of4 Version: 20221014

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