Module 10 - Accounts and Audit

Overview

• Focus on company law regarding accounts and auditing.
• Key topics: Maintaining financial records, financial disclosure and reporting, auditing of accounts.

Maintaining Financial Records

• Requirement: Companies must maintain accurate and up-to-date financial records.
• Purpose: Ensure transparency and accountability in financial dealings.

Financial Disclosure and Reporting

• Types of Disclosure:
  • Periodic Disclosure: Regular financial reports (e.g., quarterly, annually).
  • Continuous Disclosure: Ongoing reporting of significant financial events or changes.
  • Special Disclosure: Reporting required for specific circumstances or transactions.
• Importance: Provides stakeholders with relevant financial information for decision-making.

Audit of Accounts

• Objective: Independent examination of financial statements to ensure accuracy and compliance.
• Auditor Role:
  • Verify the correctness of financial records.
  • Report any discrepancies or areas of concern.
• Standards and Regulations: Must comply with recognized auditing standards and legal requirements.

Legal and Regulatory Framework

• Companies must comply with the Corporations Act and any relevant regulatory guidelines.
• Implications for Non-Compliance: Penalties, legal action, reputational damage.

Key Takeaways

• Maintaining accurate financial records is crucial for the legal and financial health of a company.
• Disclosure and reporting ensure transparency and assist stakeholders in making informed decisions.
• Audits provide an additional layer of assurance regarding the accuracy of financial information.