The unit has application across all sectors of the financial services industry.

ELEMENT

PERFORMANCE CRITERIA

1. Establish corporate governance standards and practices

1.1. Application of, and adherence to, professional and legal accounting standards are monitored to identify emerging trends and interpretations of statutory and other regulatory requirements

1.2. Audit reports and practices are researched to assess methodologies and recommendations

2. Identify corporate governance reporting trends

2.1. Organisational practices are analysed to identify corporate governance obligations and performance

2.2. Queries from statutory and other regulatory authorities for corporate governance failure are examined to assess the change effects on internal control procedures

2.3. Content and structure of reports, returns and processes for review are assessed to evaluate policies being followed by the organisation

3. Determine processes for corporate governance adherence

3.1. Internal control procedures are analysed and monitored to determine performance indicators for compliance with corporate governance requirements

3.2. Information technology systems are evaluated to determine their use and suitability for recording data from operations and transactions for corporate governance obligations

3.3. Management processes to support corporate governance are established

3.4. Reporting plans are established to ensure completion of compliance requirements within scheduled timeframes

4. Review corporate governance compliance

4.1. The achievement of performance indicators is assessed and reviewed against key result areas

4.2. Compliance preparation processes are monitored and reviewed in line with corporate governance requirements

4.3. Failures in compliance are analysed to diagnose shortcomings and to remedy processes in line with corporate governance requirements

Required skills

high level communication skills to:

determine and confirm corporate governance parameters and requirements by consulting with staff on internal control procedures and using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed research and analysis skills for accessing and managing complex information

well-developed literacy skills for interpreting and analysing complex documentation including relevant corporate governance legislation and producing management systems and evaluation reports

numeracy skills to accurately analyse, record and store data in accordance with organisational requirements

IT skills for accessing and using integrated financial systems, spreadsheets and databases and using internet information

learning skills to maintain knowledge of changes to corporate governance and compliance legislation and requirements

problem solving skills to identify any issues that have the potential to impact on the governance of the organisation and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

current financial legislation

taxable transactions

reporting requirements

detailed current knowledge of formats required for submission of statutory returns

ethical considerations for compliance

forms and functions of employee records

principles of internal control including statutory requirements

principles of valuation and common methods of depreciation

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

access and accurately interpret statutory and regulatory authority regulations and requirements

apply professional accounting standards and meet organisational policies and procedures

research corporate governance reporting trends

determine processes for corporate governance adherence

examine and review corporate governance standards and practices.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to an integrated financial software system and data

corporate governance documentation and organisational operational policies and procedures information.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Professional accounting standards may include:

Australian Accounting Standards

Australian Accounting Standards Board (AASB) requirements

ethical requirements.

Statutory and other regulatory authorities may include:

Australian Accounting Standards Board (AASB)

Australian Consumer and Competition Commission (ACCC)

Australian Institute of Company Directors

Australian Prudential Regulation Authority (APRA)

Australian Securities Exchange (ASX)

Australian Securities and Investments Commission (ASIC)

professional associations.

Obligations may include:

compliance with ASIC regulations

directors' duties, rights and responsibilities

explanatory statements

lodgement dates

regulatory influence of the Corporations Act

repayment schedules

supporting documentation.

Internal control procedures may include:

accuracy in valuations

decision making authorities

identification, measurement and recording of:

income

assets

expenditure

liabilities

equity

risk management strategies

safeguarding and insurance of assets

transparency in financial reporting.

Policies may include:

decision making authorities

documenting and receipting requirements

eligible expenditures

expenditure authorities

expenditure limits

financial analysis techniques

submission dates.

Information technology systems may include:

databases

electronic master files

internet

local area networks

spreadsheet software.

Management processes may include:

internal reporting

lending approvals

program responsibilities

sign-off authorities.

Performance indicators may include:

compliance with scheduled payment dates

debt reduction targets

profits and losses

reports:

quarterly

half yearly

annually

unqualified audits.

Key result areas may include:

accuracy of data

administrative efficiency

completion of documentation

compliance with statutory requirements

consistency of application of procedures

continuity of records.

Unit sector

Accounting

This unit contains employability skills.