Question 1

1. Name of Regulation
2. Commencement
3. Definitions
4. Prescription of certain statutory bodies
5. Identification of audited financial reports
6. Inclusion of unaudited financial reports and information
7. Detailed budget
8. Place for inclusion of detailed budget
9. Annual reports of prescribed statutory bodies
10.Additional matters for inclusion in annual reports
11.Report of operations to include comparison of investment performance
12.Report of operations to include comparison of liability management
performance
13.Numbers and remuneration of senior executives
14.Information and particulars in report of operations
15.Form of annual reports-generally
16.Form of annual reports-presentation to Parliament
17.Public availability of annual reports
18.Exemptions
19.Exemption for small statutory bodies to report annually on certain matters
20.Repeal and savings
Question 2
3.1.1 Care and Diligence -- Directors and Other Officers - Civil

Obligations
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3.1.2 Good Faith -- Directors and Other Officers - Civil Obligations

3.1.3 Use of Position -- Directors, Other Officers and Employees - Civil

Obligations
3.1.4 Use of Information -- Directors, Other Officers and Employees -

Civil Obligations
Question 3
External auditors are independent accounting/auditing firms that are hired by
companies subject to an audit. External auditors express their own opinions on
whether the financial statements of the company in question are free of material
misstatements (these could be due to fraud, error or otherwise).

Question 4

Unqualified opinion
Qualified opinion
Adverse opinion
Disclaim of opinion report
Going Concern
Other explanatory informations and paragraphs

Question 5
The Directors' Report arose out of a general move for greater transparency in
corporate governance. It is useful for shareholders to find out issues such as
whether the company has good finances, whether the market has potential, and
whether the business has the structural capacity to expand into new opportunities.
In order for shareholders to make informed decisions when casting their votes at
annual or other meetings, the Directors' Report provides part of that essential
minimum standard of information. It is complemented by the Director's
Remuneration Report and the Company Accounts.

Question 6
A typical corporate governance statement includes a brief statement outlining the
mission of the company and defining its core values. It will also highlight the
qualities inherent in the structure of the organization of the company that are
designed to limit abuse of power by the board of directors. For instance, the
statement might explain that the company has a policy of keeping their board of
directors mostly independent from the officers of the company to ensure that there
is no conflict of interest with management of the organization, such as the
determination of salaries of officers.
Question 7
Risk is defined as "the chance of something happening that will have an impact
upon objectives. It is measured in terms of likelihood and consequence".~
Risk Management is defined as "the culture, processes and structures that are
directed towards effective management of potential opportunities and adverse
effects".~
Risk Management is an integral part of good management. The application of sound
risk management allows for continual improvement in decision making and
processes.

Effective risk management involves the systematic application of management

policies, procedures and practices and should include a clear understanding of roles
and responsibilities.
Question 8
The Companys core activities centre on the retailing, manufacture and import of
furniture. To this end, the Company is committed to maintaining the highest ethical
standards in delivering quality products and services to its customers. The Board
has adopted a Code of Conduct, which sets out the expectations placed on
Directors, executive officers and employees in their business dealings. The Code of
Conduct requires high standards of personal integrity and honesty in all dealings, a
respect for the privacy of customers and others and observance of the law.
All Directors, executive officers and employees are responsible for taking
appropriate action in proven cases of illegal behaviour or behaviour outside the
spirit of this Code in the workplace.
All concerns or reports regarding any impropriety or breaches of the Code will be
dealt with Confidentially. The Code is regularly reviewed by the Board to ensure its
continued relevance to contemporary conditions.

Question 9
Example of Materiality
A default by a customer who owes only $1000 to a company having net assets of
worth $10 million is immaterial to the financial statements of the company
Example of Comparability
It allows users to compare two financial data of different entities. Such as Account
payable of woolworths and Coles
Example of Consistency
Financial data should be consistent. Unusual variation could impact shareholders
confidence. For example in 2013 Woolworths are having 1 million dollar debt. Then
after in 2014 if Woolworths have 4 million dollar debt. That would make worry to
shareholder.
Example of Conservatism
Assume Gold Guitar, Inc. is in the middle of a patent lawsuit. GGI is suing Blue
Guitar, Inc. for patent infringement and anticipates winning a large settlement.
Since the settlement is not certain, GGI does not record the gain on the financial
statements. Why? Because of the GGI might not actually see this gain. It might not
win, or they might not win as much as it expected. Since a large winning settlement
might skew the financial statements and mislead the users, the gain is left off the
books.