Assessment Task 1:
The case organisations used in task can be changed. Other cases can be obtained from ASIC Investigations. As the assessment criteria does not include company name, it can be used for any company/case. However, any changes to the assessment task must be notified to the Course Coordinator in writing with copies of changes made. There have been several case histories in Australia that have highlighted the need for sound corporate governance. In this assessment task, you will be required to research corporate governance issues in relations to given cases.
The Australian Securities and Investment commission carried out investigations into these two cases and produced reports, which are available via the commission's ASIC website. Based on your understanding of these cases, complete the following tasks;
- Obtain a copy of the ASIC report/ media report and briefly describe the major corporate governance issues found and suggestions made to remedy the defects
- Describe the primary function of a Board of Directors and outline some of the basic elements Boards should adopt as sound corporate governance principles
- Identify the key organisations, both domestic and globally, that have played a role in shaping the corporate governance arena. Describe the recommendations each body has identified as the requirements for good corporate governance
You may need to conduct some other online research through newspaper reports and analyses to support your answers.
Write a brief report on your research providing;
- Provide an overview of the cases used in this task and highlight key rulings and legislative implications
- An overview of the governance framework in Australia including relevant guidelines and laws
- Corporate governance obligations for corporations and directors
- Specific governance issues with case organisations
- Remedial steps taken to address breaches of governance
Assessment Task 2:
Description:
As the assessment criteria does not include company name, it can be used for any company/case. However, any changes to the assessment task must be notified to the Course Coordinator in writing with copies of changes made.
Alternative cases that can be used for this task; Harris Scarfe
One.tel
Relevant case studies can be obtained from online search as both the cases featured prominently in the media.
From Parliament of Australia Library: On Thursday, 15 March 2001, HIH received approval from the NSW Supreme Court to place HIH into provisional liquidation. Tony McGrath of KPMG was appointed as provisional liquidator to HIH and 17 of its controlled entities. HIH comprised several separate government-licensed insurance companies, including HIH Casualty and General Insurance Limited, FAI General Insurance Company Limited (FAI), CIC Insurance Limited (CIC) and World Marine and General Insurances Limited (WMG).
HIH wrote many types of insurance in Australia, the USA, and the UK. Il Au1t0alia, this includes compulsory insurance (such as workers' compensation and compulsory third party motor vehicle) and non-compulsory insurance (such as home contents and travel insurance)
HIH collapse was one of the largest corporate collapses in the history and raised critical questions about corporate governance, internal controls and ethical behaviour of top managers.
Access the HIH case study from the following link and answer relevant questions.
Read the case study and published reports and answer the following questions;
1. Describe the factors that contributed to HIH failure (including examples of financial irregularities), including corporate governance failures
2. Scope of investigation conducted and relevant legislations that were found to be breached
3. Discuss at least three corporate governance issues that emerged from HIH case
4. What lessons can be learned from HIH collapse in the area of corporate governance and internal controls
5. In your view, which internal controls, policies and procedures HIH could have had in place as early warning signs of problems
Presentation:
Prepare and make a brief presentation of your case analysis to the class audience highlighting key governance and ethical issues - and the breaches that led to the collapse.
The presentation should be succinct and structured to provide a summary of your findings and views on the case. Allow for audience questions and take notes of key comments/issues raised by the audience.
Duration: 10-15 minutes
Assessment Task 3:
Description:
Note to Trainers/assessors: As this assessment tasks is project based, this task should be handed out at the beginning of the term to set the project in motion and allow the students to gradually develop the relevant concepts, knowledge and skills in conjunction with classroom learning sessions. Groups should be formed early in the term to allow for the necessary formation process. Some project time should also be allocated in each session to practice and complete relevant parts of the project; where group interaction and contribution can also be observed.
Corporate governance is a broad-ranging term which encompasses the rules, relationships, policies, systems and processes whereby authority within organisations is exercised and maintained (AICD, 2015). The board of directors plays a pivotal role in influencing an organisation's governance environment.
This task is a group task, to be undertaken by a group of up to four members. Your trainer/assessor will facilitate formation of the group within the designated sessions. For the purpose of this task, your group will assume the role of a compliance group working within a financial services firm. Assume that in view of increasing corporate governance responsibility on the directors, your group has been asked to research and present a governance guideline document based on a case study. Within the role-play context, your trainer/assessor will play the role of the senior manager.
Accordingly, your group will use the case analyses completed in the previous assessment task (Assessment Task2: HIH Insurance Case Study) and develop a Corporate Governance Monitoring procedure with a view to mitigate compliance risk and breaches identified in the case study. Delegating tasks within the group, this project will build around the following headings/subject areas;
- Corporate governance obligations for companies and directors under the Corporations Act 2001
- What could have been done to detect early signs of problems in the management and governance
- Research and outline common governance principles that can prevent cases such as this
- Based on your research develop a governance policies and procedures that can be used in an organisation (format and structure ideas can be taken from sample policy documents)
- Suggest Internal control procedures that support the governance structure (e.g. policy)
- Develop a governance checklist summarising the governance and internal control requirements that may assist meeting regulatory requirements
- Propose a conceptual accounting system that may help maintain compliance and accounting principles
- Suggest internal audit procedures that could enhance corporate governance and internal control
- Suggest Reporting mechanisms including information technology options
The group will be required to draft some key documents in this project. The group may refer to policies and procedures of other organisations but the work produced by you should be original. All the references and external resources must be cited using Harvard Referencing System. Your trainer/assessor will provide you with a referencing guide.
Word Limit:
Up to 2000 Words
Assessment Criteria
The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work.
Individual:
- Communicated effectively with the team members and clarified own roles and responsibilities
- Actively participated and contributed in team discussions
- Completed own tasks as delegated by the team
- Provided feedback to team members and maintained effective relationships
- Demonstrated effective communication and team skills within the context of the tasks
Group:
- Maintained an effective and a coherent work culture and interaction between team members
- Regularly met and provided feedback to each other
- Completed the given task and achieved team objectives
- All the team members equally participated and contributed in the project
Project:
- The paper is appropriately structured an maintains a consistent style, format and content flow
- Used appropriate references as per referencing guidelines
- Researched and outlined key legislative requirements relating to corporate governance with references to the relevant laws and regulations, including company directors
- Analysis of the case is used to draw appropriate suggestions for early detection of governance issues in an organisation
- Identified critical corporate governance issues need to be addressed based on the given case analysis
- Developed a corporate governance policy and procedure the represents key governance areas, internal control mechanisms and processes
- Policy document is consistent in format and follows a conventional structure (based on an actual, sample policy document)
- Internal control procedures are articulated and aimed at supporting the governance policy
- Developed a checklist of checks and controls that can be used as a reference in developing a governance structure
- Suggested an internal control mechanism that helps enforce corporate governance requirements
- Linked accounting principles and practices to governance and suggested an accounting system that supports that governance policy
- Concepts demonstrate a reasonable degree of research to obtain and collate information and knowledge of governance issues required at this level
- Developed and suggested internal audit processes that assist management and reporting of governance issues and improvements
- Demonstrated understanding of accounting principles and financial reporting requirements under corporate governance legislation
Assessment Task 4:
Description:
- Research and prepare answers for the questions below
- To be prepared on an individual basis.
- Assessment will only be accepted if they have an assignment cover sheet on them signed by the student.
- Students must provide detailed answer for every question along with relevant examples.
- There is no word limit, but answer for every question should be reasonable in size, preferably ½ a page.
- The Trainer/Assessor may further prompt and question in order to receive answers of appropriate quality and to verify the authenticity
Research and type answers for following questions in a word document:
1. What is your understanding of "Corporate Governance"? Describe at least four major corporate governance obligations under current legislations.
2. What are the objectives of an internal control system? What should organisations do to ensure employee accountabilities in their job functions?
3. How would you monitor and evaluate efficacy and effectiveness of internal control procedures? Provide a detailed explanation of the applicable processes.
4. List and describe types of employee records that an organisation must maintain to monitor employee performance
5. Describe key accounting principles that an organisation must maintain to meet legislative requirements. Support your answer with an example.
6. What are ethics? Where do the managers and employees derive ethical values and guidelines from? Support your answer with at least one example of ethical behaviour.
7. Describe are the key statutory reporting requirements for a publically listed (ASX listed) company?
8. Describe the key principles of internal control
9. Describe the key principles of valuation and common methods of depreciation
10. Describe the significance of performance indicators and key result areas relevant to monitoring corporate governance activities