T-1.8.

Details of Assessment

Term and Year T1 2016 Time allowed 4 Weeks

Assessment No 1 Assessment Weighting 35%

Assessment Type Research Report

Due Date Week 5 Room LAB 720

Details of Subject

Qualification FNS60215 Advanced Diploma of Accounting

Subject Name Corporate Governance

Details of Unit(s) of competency

Unit Code and FNSACC604 Monitor Corporate Governance Activities

Title

Details of Student
Student Student
Name ID

Student Declaration: I declare that the work Signature: ___________________________

submitted is my own, and has not been copied
or plagiarised from any person or source. Date: _______/________/_______________

Details of Assessor
Assessors Name KANEEZ SELIM

Assessment Outcome

Results Competent Not Competent Marks /35

FEEDBACK TO STUDENT
Progressive feedback to students, identifying gaps in competency and comments on positive improvements:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

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Student Declaration: I declare that I have been Assessor Declaration: I declare that I have
assessed in this unit, and I have been advised of my conducted a fair, valid, reliable and flexible
result. I also am aware of my appeal rights and assessment with this student, and I have provided
reassessment procedure. appropriate feedback

Student did not attend the feedback session.

Feedback provided on assessment.

Signature: ____________________________ Signature: ____________________________

Date: ____/_____/_____ Date: ____/_____/_____

The purpose of this Assessment task 1: Satisfactory (S) Not Yet Satisfactory
assessment is to Research Report
assess the student (NYS)
in the following (Task numbers)
learning elements
and performance
criteria of the unit :

Purpose of the Assessment

Element 1: Establish corporate governance standards and practices

1.1 Monitor application of and adherence to professional and legal accounting standards to identify
emerging trends and interpretations of statutory and other regulatory requirements

Task 2, 6

1.2 Research audit reports and practices to assess methodologies and recommendations

Task 2

Element 2: Identify corporate governance reporting trends

2.1 Analyse organisational practices to identify corporate governance obligations and performance

Task 2, 3

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Element 3: Determine processes for corporate governance

adherence

3.1 Analyze and monitor internal control procedures to determine performance indicators for
compliance with corporate governance requirements
Task 4

3.3. Establish management processes to support corporate governance

Task 3

Element 4: Review corporate governance compliance

4.2 Monitor compliance preparation processes and review in line with corporate governance
requirements

Task 1 7

4.3 Analyse failures in compliance to diagnose shortcomings and to remedy processes in line with
corporate governance requirements

Task 5

Assessment/evidence gathering conditions

Each assessment component is recorded as either Satisfactory (S) or Not Satisfactory (NS).
A student can only achieve competence when all assessment components listed under
Purpose of the assessment section are Satisfactory. Your trainer will give you feedback after
the completion of each assessment. A student who is assessed as NS (Not Satisfactory) is
eligible for re-assessment.

Resources required for this Assessment

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common office equipment, technology, software and

consumables
an integrated financial software system and data
Corporate governance documentation and organizational operational policy and
procedures information.

Instructions for Students

Please read the following instructions carefully
This assessment has to be completed In class At home
This assessment is to be completed according to the instructions given by your assessor.
Students are allowed to do this assessment home.
Feedback on each task will be provided to enable you to determine how your work could
be improved. You will be provided with feedback on your work within 2 weeks of the
assessment due date. All other feedbacks will be provided by the end of the term.
Should you not answer the questions correctly, you will be given feedback on the results
and your gaps in knowledge. You will be given another opportunity to demonstrate your
knowledge and skills to be deemed competent for this unit of competency. If you are not
sure about any aspects of this assessment, please ask for clarification from your
assessor.
Please refer to the College re-assessment and re-sit policy for more information.

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Assessment 1: Research report

Background
Good corporate governance makes sure that the business environment is
transparent and fair and that companies can be held responsible for their actions. On
the other hand, weak corporate governance leads to waste, disappointment,
mismanagement, and corruption. It is also significant to remember that although
corporate governance has emerged as a way to manage large companies, it is
equally vital in medium and small businesses. Regardless of the type of business,
only good governance can deliver sustainable good business performance.

In the past, there have been many examples of companies becoming

bankrupt/insolvent after poor corporate governance practices and HIH Insurance
was one of them.

HIH Insurance Limited was a publicly listed company in Australia. Prior to its collapse
in 2001, the HIH Group was the second largest general insurer in Australia and had
operations in many other countries.

On 15 March 2001, HIH Insurance Limited and a number of its subsidiaries were
placed into provisional liquidation. Subsequently, on 27 August 2001, the companies
that were in provisional liquidation were placed into liquidation.

Instructions to the student

You are required to investigate HIH Insurance that has become
bankrupt/insolvent following poor corporate governance practices.
You are required to research the relevant documents that may include Audit
reports, Newspapers, Articles on the events leading to the HIH Insurances
collapse.
Analyse & recommend how the events of HIH Insurance could have been
prevented with effective safeguards, transparency and financial management.

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You are also required to interview relevant people to determine and confirm
current corporate governance parameters and requirements in Australia
today. You may consult anyone appropriate who is currently working in a large
or medium corporation, private or public, such as other trainers, friends and
colleagues. (Required for Task 6).

The assessment is an individual work; you need to submit both soft copy and
hard copy of the assessment.
You need to maintain: Word limit of 2000 words, Font size: 12, line spacing:
1.5.
All tasks need to be completed.

Your report is to cover the following asks:

Task 1: History of HIH Insurance.(4 marks)

Task 2: Monitor the events leading to the collapse of HIH Insurance. Identify and
analyse two breaches of Corporations Act 2001 and two ASX listing rules that HIH
did not apply and/or adhere to. (5 marks)

Task 3: Analyse the management practices of HIH Insurance and identify the areas
where there were breach of directors duties, rights and responsibilities. (5 marks)

Task 4: Analyse the Internal control procedures of HIH Insurance to determine the
financial performance indicators. (5 marks)

Task 5: The Board of HIH was compromised by the influence of senior management
and failed to subject management proposals to sufficient scrutiny in context of the
above statement, diagnose how did the HIH board fail to comply with
responsibilities? What remedies could the board have put in place? (6marks)

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Task 6: From interview identify four emerging reporting trends of Corporate

Governance Parameters in the Australian financial service sector. You need to
include the interview record in appendix. (8 marks)

Task 7: Write concluding remarks on the basis of your findings from previous tasks.
(2 marks)

Note: You will need to provide your assessor with detailed references to any
information sourced from books, website, publications or other sources. Failure to do
so will result in non-competency in the assessment task.

Also see the Appendix

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