ACCT 6015: Corporate Governance Case Study Assignment Help
Question
ACCT 6015: This is a case study-based assignment for Southern Cross University where the students are required to carefully assess the scenario presented and answer the questions. The assignment aims to assess the student’s knowledge relating to corporate governance and evaluation of the annual report of the organization presented in the scenario.
Solution
The case scenario presented for analysis in the assignment revolves around an organization Crown Resorts Limited which faced money laundering allegations at its Australian casinos. The CEO of the company has also resigned after findings of facilitating money laundering and criminal connections. The questions in the assignment evaluate the structure and functioning of the company’s board, determine the board’s responsibilities related to fraud cases, and lastly urge the student to propose some recommendations to help the company avoid similar scams in the future.
The solution written by our experts delves extensively into all the questions asked in the assignment file. Our experts have analyzed the last five-year annual reports for the company in detail and have framed the answers accordingly. The solution is divided into three sections about the three questions of the assignment-
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Evaluation of the board structure and function of the board of Crown Resort Ltd.
The solution begins by assessing the structure of the company’s board as well as the functions and responsibilities undertaken by the company’s board members. You can read a snippet of the complete answer written by our experts below.
The Board structure comprises the Chairman, Executive Deputy Chairman, Independent Director, and Non-independent director. The Board is entrusted with guidance and evaluating the Crown on behalf of the shareholders. Furthermore, the Board is responsible for identifying the potential risk and ensuring that the arrangements are in conformity to the risks. The process of evaluation is conducted yearly (Crown Resorts 2020). The evaluation process is conducted annually and is followed by determining appropriate remuneration of the relevant senior executive. The Board of Crown comprises eleven directors, among that, six are independent ones. The majority of the directors are thereby independent. Every director obtains advice on a matter that is relevant (Crown Resorts 2020). The director notifies the Chairman regarding the nature of the advice sought before taking the advice, enables the Chairman to ensure that the party from whom the advice is undertaken does not have any material connection with the Crown.
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Identification of the responsibilities of the board for activities related to fraudulent scams
In the next section, the answer to the second question is presented. Here, our experts have determined the role board members undertake in cases of fraudulent behavior. Our experts have supported the answer with relevant evidence from the literature as well as the company’s annual reports.
The Board has the primary responsibility to establish the tone from the apex through the actions, communication, and attitude. This tone sets the culture and influences the behavior of employees, lenders, and other stakeholders. Maintenance of internal control and the definition of the standard operating practices must comprise the duties segregation and appropriation of the review. Internal control develops safeguards the organization’s assets and reduces the opportunities that lead to fraud. This leads the error to be undetected in the organization (Stephenson 2016). Moreover, understanding the risks helps determine whether adequate control is present to mitigate such risks. The Board must follow practices of effective hiring whereby a clear outline of the expectations from the role must be stated. The Board should conduct qualification verification and complete background check. Competent people or professionals have a major role to play when it comes to the success of the company.
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Recommendations for the Board to prevent similar corporate scandals from arising in the future.
Lastly, as per the third question in the assignment, our experts have proposed certain suggestions on the part of the board members to help the company avoid a similar situation of fraud and corporate scandal in the future.
To prevent any similar or future scandals, the following recommendation will provide better results:
- The board is needed to evaluate what risks the entity can bear so that it can attain the strategic goals that are the appetite in terms of risk. This ascertains the boundaries within which the management is needed to function and operate.
- The incentive structure of the board is needed to be realigned, which will help get a better solution to the problem and solving the problem.
- Independent directors are needed to undertake the board’s majority, which would help make fair decisions and be in the stakeholder’s interest (Kaveh et al 2014). Whenever appropriate, the management should be challenged. This will ensure better transparency and work ethics
- Avoid revealing any confidential information to the shareholders. This hampers the smooth functioning of the company in terms of insider trading.
Here, we have provided only half of the recommendations proposed by our experts. Call us at +61871501720 to read more.
