Organisational policies and procedures are in place for a reason – to ensure the financial accounting of the organisation is accurate and meets all legal requirements, to protect the company in the event of any corporate acquisitions, and to maintain the integrity of the organisation. Employees must always comply with these policies and procedures to ensure the financial security of the company. Failing to do so can result in disciplinary action, including termination of employment.
Follow the steps below to confirm compliance:
- identify the relevant policies and procedures
- isolate the minimum requirements
- find the mandatory steps and inclusions
- compare the minimum requirements with the completed report.
Australia's current financial legislation and statutory requirements relating to taxable transactions are complex and ever-changing. Businesses must stay up to date with the latest changes to ensure they comply with the law.
The key pieces of legislation in this area include the following:
- Taxation Administration Act 1953
- The Income Tax Assessment Act 1936
- The Fringe Benefits Tax Assessment Act 1986
- The Superannuation Guarantee (Administration) Act 1992
Each of these Acts contains a range of specific provisions which businesses must comply with when undertaking taxable transactions. For example, the Fringe Benefits Tax Assessment Act 1986 imposes a tax on certain benefits provided by employers to their employees. The Superannuation Guarantee (Administration) Act 1992 requires employers to make superannuation contributions for their employees.
In relation to ethical requirements, businesses must comply when preparing their accounts by disclosing any material irregularities. Penalties may be imposed for breaches of the law, so it is important to seek professional advice if you are unsure about how to proceed.
To confirm compliance, compare completed reports with the published minimum requirements. Asking a colleague to check your reports or using a checklist is also helpful.
Learn about APES 110 Code of Ethics for Professional Accountants32 and professional obligations and ethical requirements of members based on the five principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour in the Code.
To prepare financial statements that comply with Australian accounting standards, businesses must ensure that they are aware of all the relevant taxation requirements. This includes understanding the implications of any proposed business transactions for taxation purposes and ensuring that all transactions are recorded correctly in the financial statements.
Compliance with Australian Accounting Standards is mandatory for entities registered with the ASIC. The compliance audit is an important part of the process and helps ensure that financial statements are prepared according to the relevant standards.
To confirm compliance, review the standards and critically reflect on whether your reports and actions meet the minimum requirements.
