Instructions
Once you feel confident that you have covered the learning materials for this unit, you are ready to attempt this assessment. To complete the assessment, please create a new Microsoft Word document and type your answers to each question or task in this document, noting the question number from the assessment. Alternatively, you can download a Microsoft Word copy of this assessment from the relevant Study Period of your course in OpenSpace.
To help Open Colleges manage your assessment, please use the following file naming convention when you save your Microsoft Word document.
Your file should be named and saved to your computer’s hard drive using your [student number]_[assessment number].doc. For example 12345678_21850a_01.doc
Assessment submission
When you are ready to submit your assessment, upload the file in OpenSpace using the Assessment Upload links in the relevant Study Period of your course. The Student Lounge provides a 'Quick Guide to Uploading Assessments' if you need further assistance. Uploading assessments in OpenSpace will enable Open Colleges to provide you with the fastest feedback and grade on your assessment. If you upload your assessment in OpenSpace you do not need to use an Assessment Cover Sheet.
Alternatively, you can print and post your assessment to:
Open Colleges
PO Box 1568
Strawberry Hills NSW 2012
The Student Lounge provides a 'Quick Guide to Uploading Assessments' if you need further assistance. Uploading assessments in OpenSpace will enable Open Colleges to provide you with the fastest feedback and grade on your assessment. If you upload your assessment in OpenSpace you do not need to use an Assessment Cover Sheet.
It is important you keep a copy of all electronic and hardcopy assessments submitted to Open Colleges.
Assessment description
By completing this assessment you will gather evidence of your ability, knowledge and skills necessary to make decisions in a legal context including:
Evaluate legal context for financial services work
Identify compliance requirements
Develop procedures to ensure compliance
Assessment tasks
There are two assessment tasks to be completed for this unit as follows: Task 1 – Knowledge test (Quiz / Short Answer) Task 2 – Written Report
* Assessment Task 2 – Marking Distribution * * Marks will be awarded as follows: * Question | Question Break-up | Marks | PART 1 | | | 1 | | 2 | 2 | | 2 | 3 | | 3 | 4 | | 2 | 5 | | 2 | 6 | | 2 | 7 | | 3 | 8 | | 2 | 9 | | 2 | Part 1 Total | | 20 | PART 2 | Regulatory body | 2 | | Purpose and users of the procedure | 2 | | Consultation | 2 | | Timeframes | 3 | | Report format | 4 | | Law and jurisdiction | 3 | | Forum contributions | 2 | Part 2 Total | 18 | Total | 38 |
Part 1: Compliance requirements in a financial services role
Instructions
You are required to read and answer the following questions in full. To complete the assessment, please create a new Microsoft Word document and type your answers to each question or task in this document, noting the question number from the assessment. Alternatively, you can download a Microsoft Word copy of this assessment from the relevant Study Period of your course in OpenSpace. Refer to Assessment Submissions section of this assessment for full submission details.
Your responses should aim to demonstrate that you have the required knowledge and skills to respond to the questions. Your responses will be used as part of the overall evidence requirements of the unit.
For this assessment you are required to obtain a copy of a job description for a role within the financial services industry that interests you, but which you are not currently undertaking. (If you are not currently working you may be able to approach various online recruitment companies to obtain a suitable job description).
You are required to prepare a report containing information about the legislative, regulatory and licensing obligations with which you would need to comply in order to undertake this role.
In the report, you should:
1. Describe the role. (2 Marks) (100 words) * * Answer: * * Bookkeeper in a landscape contracting company. * Design Landscapes is an international landscape contracting company with offices in Australia, Hong Kong and China specialising in large scale commercial projects. Located in Willoughby, a unique opportunity has become available for an experienced Book Keeper/Junior Accountant to join our Finance team. The role is organised and multi-task; working with colleagues at all levels; requiring proficient in use of Microsoft Office; self-motivated and excellent communication skill. * 2. Identify the tasks you would need to undertake to successfully complete the role. (2 Marks) (100 words) * * Answer: * a) Recording the financial transactions of a business in bookkeeping software (such as MYOB or QuickBooks), spreadsheets or databases. b) Arranging payment of accounts. c) Preparing and sending invoices and receipts to debtors. d) Processing payroll and maintaining employee records. e) Carrying out bank reconciliations. f) Reporting for preparation of a Business Activity Statement (BAS). g) Checking figures and reporting for accuracy. h) Reporting any irregularities in data to management. i) Producing balance sheets, income statements and other financial documents. * 3. Identify and explain the * * Legislation * Regulations * Codes of practice
you would need to comply with to complete the role including details of relevant timeframes. (3 Marks) (300 words) * Answer: * a) As bookkeeper to submit BAS statement on behalf of the company, I need to register with the Tax Practitioners Board as a registered BAS Agent under the Tax Agent Services Act 2009 (TASA) and the Tax Agent Services Regulations 2009 (Regulations). b) As a bookkeeper submitting tax returns to Australian Taxation Office, I need to comply with the relevant tax rules and requirements published by the ATO such as Income Tax Assessment Act 1997, A New Tax System (Goods and Services Tax) Act 1999, Fringe Benefits Tax Assessment Act 1986 etc. c) The accounting entries of business transactions comply with the Sales of Goods Acts according to the relevant state’s regulations. d) Payroll and compensation made to employees comply with Fair Work Australia Act 2009 e) Ensures confidentiality and security of the information of the company and all stakeholders, protecting trade secrets, proprietary information and identities. f) I need to ensure the necessary accounting records (e.g. profit and loss statement, balance sheets, ledgers, vouchers, bank statements, tax returns etc.) to be kept and for the required time period as stipulated by the Corporation Act 2001 and ATO rules. I have to ensure the company keeps records relating to its tax affairs for at least five years after preparing or obtaining them, or after completing the relevant transactions or acts, whichever is later. If the company carries forward a tax loss, it has to keep records for longer. g) There is certain Code of Conducts required for bookkeepers. For example, as a member of the Institute of Certified Bookkeepers, he or she is bound by the institute’s Code of Professional Conduct. The code’s rationale is explained in point one: In Society a bookkeeper has a special role. Trust in the accounts and books of businesses and individuals are dependent on the bookkeeper’s truthful, careful and diligent making and keeping of records. The purpose of these rules is to provide standards of conduct for members of the Institute of Certified Bookkeepers which are appropriate to their conduct in their employment and practice and the preservation of the dignity of their profession. h) If the bookkeeper is a registered BAS agent, he or she is bound by the Australian Tax Practitioners Board Code of Professional Conduct. The Code of Professional Conduct is a legislated code that sets out the professional and ethical standards required of registered tax agents and BAS agents. It outlines the duties that agents owe to their clients, the Tax Practitioners Board and other agents. 4. Identify any licensing requirements of the role. (2 Marks) (100 words)
Answer:
In Australia there is no need to obtain a license to be a bookkeeper. However there are certain education and skill set requirement for this position. Furthermore if you want to represent the company to submit tax returns to Australian Taxation Office, the bookkeeper needs to be registered with the Tax Practitioners Board. Complete an accredited bookkeeping course. In Australia complete either of the following qualifications: * FNS40207 Certificate IV in Financial Services (Bookkeeping) which is changing to FNS40210 Certificate IV in Bookkeeping * FNS40607 Certificate IV in Financial Services (Accounting) which is changing to FNS40610 Certificate IV in Accounting
Either of these qualifications is required to become a BAS Services Agent to allow you to submit BAS's to the Australian Taxation Office on behalf of a small business or your bookkeeping clients. 5. Identify the common law requirements. (2 Marks) (100 words)
Answer:
The common law requirements on bookkeepers are mainly on the exercising duty of reasonable care in preparing the financial statements for the businesses.
The Tax Practitioners Board (TPB) has released its information sheets for tax and BAS Agents on taking reasonable care in ascertaining a client's state of affairs; and on taking reasonable care to ensure that taxation laws are applied correctly.
The two information sheets provide guidance for registered agents on the application of these two items in the Code of Professional Conduct (Code items 9 and 10) under the Tax Agent Services Act 2009 (TASA).
They detail principles and elements of Code items 9 and 10, practical examples and consequences for failing to comply with these Code items.
The information sheet on taking 'Reasonable care to ascertain a client's state of affairs' outlines the requirements of Code 9 under the Code of Professional Conduct. The duty to take reasonable care is a well-established feature of the common law. 6. Identify the employment law requirements. (2 Marks) (100 words)
Answer:
There is no specific employment law requirement relating to bookkeepers in Australia. However there are numerous employment laws and regulations that employers have to follow when hiring staffs, including bookkeepers. For example, the Fair Work Act 2009, Fair Work Regulations 2009, Fair Work Commission Rules 2013, Small Business Dismissal Code etc.
In formulating the employment contract, an employer should be aware of the minimum statutory terms and conditions set out in the Fair Work Act, applicable long service leave legislation and applicable superannuation legislation.
In formulating the employment contract, an employer should be aware of the minimum statutory terms and conditions set out in the Fair Work Act, applicable long service leave legislation and applicable superannuation legislation. The basic terms usually include the duration, position, duties, probationary period, remuneration including any bonuses, other benefits such as car allowance, leave (including annual leave, personal or career's leave, parental leave, long service leave), superannuation, notice of termination, the right to summarily dismiss, protection of confidential information and intellectual property, post-termination restrictions and governing law and jurisdiction. 7. Describe two situations that are likely to give rise to contractual obligations; explain the factors you will need to consider to determine whether or not a valid contract exists. (3 Marks) (200 words) * Answer: * * Situation 1: * Design Landscape’s warehouse keeper called a vendor on Sunday to order some materials for use in landscape decoration. The material ordered is the usual one that Design Landscape used to order from time to time. This warehouse keeper is known to the vendor and he is the usual person to receive materials on behalf of Design Landscape. However, normally the purchase order is issued by written purchase order form signed by the purchasing manager. This time the warehouse keeper called on Sunday and said he needs the material urgently on coming Monday. The vendor delivered the materials but Design Landscape’s purchasing manager refuse to accept the goods claiming that the purchase is not authorized. The vendor claimed that since the material is the usual one that Design Landscape used to order and that the order was placed by the warehouse on Sunday saying it was urgently needed. So they are doing a favour to deliver the product without a proper purchase order. The vendor claims that there is already an offer and acceptance and this sale of goods should already constitute a contractual obligation on Design Landscape. * I tend to consider the vendor is right in this case because although there is no official purchase order sent to the vendor, this act of placing order by an employee of the company who is closely involved in this arrangement give the vendor reasonable belief the company is actually ordering the product on an urgent situation. I believe there is valid contract of sale between Design Landscape and the vendor. * * Situation 2: * A sub-contractor working on the premises Design Landscape fell on the floor due to some oily liquid leakage. There is no sign of be aware of slippery floor and no sign of caution for oily liquid leakage. The sub-contractor suffered from injury and claimed Design Landscape for damages. Design Landscape claimed that they are not responsible for such incident and that the sub-contractors should take reasonable care when working in such environment which has potential slippery everywhere. They should have enough experience working on such environment and put on appropriate protection equipment to prevent injury. * I tend to believe that Design Landscape owes a contractual obligation to the sub-contractor working in its premises by providing the reasonable care on their safety. The fact that there is leakage of oil and slippery floor without warning the sub-contractor working there is not providing such reasonable care. I tend to believe that Design Landscape is liable to the injury of the sub-contractor in this incident. * 8. Identify the courts and other regulatory bodies that could have an impact on your work. (2 Marks) (100 words)
Answer:
In NSW, there are Supreme Court, District Court, Local Court, Land and Environment Court that can help resolving disputes involving Design Landscape’s business activities. Other relevant regulatory bodies that could impact my work are: Australian Taxation Office; tribunals like Civil and Administrative Tribunal, Industrial Relations Commission etc. * 9. Describe the sources you used to obtain relevant information. (2 Marks) (100 words) * * Answer: * 1. Courts and Tribunals in NSW: http://www.courts.justice.nsw.gov.au/ 2. Institute of Certified Bookkeepers Australia: http://www.icb.org.au/ 3. Tax Practitioners Board Australia: http://www.tpb.gov.au 4. Seek.com: http://www.seek.com.au 5. Fair Work Commission Australia: https://www.fwc.gov.au 6. Legal website about Australian employment laws: http://www.mondaq.com 7. Australian Taxation Office: https://www.ato.gov.au/ 8. Corporation Act: http://www.comlaw.gov.au 9. Code of practices: www.asic.gov.au 10. 6 steps to become a bookkeeper: http://bookkeepingaust.hubpages.com/hub/6-Steps-to-Become-a-Bookkeeper * * This assessment task will utilise your understanding of the legal obligations and compliance measures required by those working in the financial services industry.
Part 2: Compliance procedures for GST returns
You are required to read and answer the following questions in full. To complete the assessment, please create a new Microsoft Word document and type your answers to each question or task in this document, noting the question number from the assessment. Alternatively, you can download a Microsoft Word copy of this assessment from the relevant Study Period of your course in OpenSpace. Refer to Assessment Submissions section of this assessment for full submission details.
This assessment task will assess your understanding of taxation law and your ability to obtain current information using appropriate sources. Your responses should aim to demonstrate that you have the required knowledge and skills to respond to the questions. Your responses will be used as part of the overall evidence requirements of the unit. It will also assess your ability to draft clear, accurate procedures in an appropriate format.
You are working for an organisation that has obligations for Annual goods and services tax (GST) annual returns. Prepare a set of procedures you could use to assist you to lodge an Annual GST return.
Note: Wine equalisation and luxury car taxes do not apply and the organisation has not elected to pay quarterly GST instalment amounts.
Ensure the procedures include: * the name of the appropriate regulatory body with which you will lodge the returns (2 marks)
* the purpose and users of the procedure (2 marks) * * details of anyone with whom you should/could consult to obtain further advice or assistance (2 marks) * * details of relevant timeframes (3 marks)
The procedures should be: * in an appropriate format (4 marks) * * consistent with the law that applies in the jurisdiction one week before this assessment is submitted. (3 marks)
A requirement of this unit is to contribute to the study period forum; identifying ways in which you would consult with colleagues or peers with regards to compliance procedures for GST returns as part of assessment 2 part 2. These forum posts will form part your overall grade. (2 marks)
Answer to part 2:
[XXX Name of Organization] Procedure of lodging annual Goods and Services Return | Prepared by | Reviewed by | Authorized by | Version 1 by Bookkeeper xxx (date) | Accountant xxx (date) | General Manager xxx (date) | Version 2 by … | | | … | | |
1. Preamble
According to the A New Tax System (Goods and Services Tax) Act 1999, all Australian businesses whose turnover is above the minimum threshold (currently $75,000 per annum for a business, $150,000 for non-profit making organizations and any value for taxi operators) are required to register for GST. Businesses whose turnover is below the threshold may register if they wish to. A GST-registered business must charge its customers GST on taxable goods and services it provides, but is entitled to a credit for any GST it has paid for its expenditures on these goods and services as well as capital purchases (called input tax credits). A registered business must periodically lodge Business Activity Statements (monthly, quarterly or annually), and at the same time pay the net amount of GST owed to the tax office (if more GST is paid than collected, a refund is paid by the tax office instead).
GST returns are required to report on a monthly or quarterly basis. Eligible organizations are able to lodge their GST report once a year. [xxx organization] is eligible to report on an annual basis.
Eligibility to report GST annually must be assessed as at 31 July each financial year. It is not able to report GST annually if on this date if either: the projected GST turnover is more than the registration turnover threshold, that is, $75,000 for small businesses (and all other entities except non-profit organisations) or $150,000 for non-profit organisations 2. Definition
Abbreviations used in this procedure have the following meanings: * ATO: Australian Taxation Office * GST: Good and Services Tax * TPB: Australian Tax Practitioners Board * Bookkeeper: the Bookkeeper of [xxx organization] who has the qualification to fill in the GST return as required by the TPB * Chief Accountant: the Chief Accountant of [xxx organization] who is to check the accuracy of the GST return filled in by the Bookkeeper * General Manager: the General Manager of the [xxx organization] who has been authorized to represent the organization to sign the GST return
3. Objective of this procedure
This procedure is to set out the required procedures to prepare and lodge the annual GST return within [xxx organization] as to what needs to be done, when it is to be done, the way it is to be done and who is to do it.
4. Regulatory body to which lodging the GST return
The regulatory body to which the GST return is to be lodged is the ATO. 1. 2. 3. 4. 5. User of this procedure
Users of this procedure include, but not limited to, Bookkeepers, BAS agents, Chief Accountants, General Manager and other financial personnel who are involved in providing necessary information to file the GST annual returns.
6. Due date of lodging the annual GST return
The due date will be the same date the income tax return is due to be lodged. Usually this will be on 31 October, however if the returns are lodged by a tax agent, this deadline is extended until 28 February. If there is no need to lodge an income tax return, the due date will also be 28 February following the end of the annual tax period. 7. Procedure of lodging annual GST return
a) On-line
ATO has set up several ways for the GST reporting to be done online using an AUSkey security credential and Australian Business Number (ABN): * Business Portal, * Standard Business Reporting (SBR)-enabled business accounting software and * Electronic Commerce Interface (ECI)
Details please refer to the ATO website link: https://www.ato.gov.au/General/online-services/businesses/ accessed 24 October 2015
b) By paper
Fill in the GST return form sent by the ATO and return it. Take note of the followings when filling the form: * Print clearly, using a black pen only * Leave boxes blank if they don't apply, unless asked to write '0', do not use N/A or NIL * Write whole dollars only (do not show cents) * Do not use symbols such as +, -, /, $
c) How to complete the form i. Filling in the name and phone number of the contact person who completed this form by the [Bookkeeper] who has the qualification to fill in the GST return as required by the TPB ii. Filling in the sales turnover and purchases amounts in the boxes of G1, G2, G3, G10 and G11 by the [Bookkeeper] iii. Filling in the GST amount paid or received by [name of the organization] in the boxes of 1A, 1C, 1E, 2A, 1B, 1D, 1F, 1H, 2B by the [Bookkeeper] iv. Filling YES or NO whether amount in box 2A is greater than 2B and then the corresponding amount that [xxx organization] has to pay ATO or ATO has to refund the excess GST to [xxx organization] by the [Bookkeeper] v. [Chief Accountant] checks the accuracy of the GST return to ensure it is correctly filled in according to the books and records of [xxx organization] and put his / her initial below the box of “your payment or refund amount” in the GST return vi. [General Manager] to sign the GST return form as the authorized person of [xxx organization]
A sample form of the annual GST and the related procedure of filling the form are attached and described as follows.
(ii)
(ii)
(i)
(i)
Using information from the accounts or the GST calculation worksheet, report the actual GST amounts (G1, G2, G3, G10 and G11) for the annual tax period this financial year.
The annual tax period start and end dates are printed in the top right hand corner on the front of the return.
Indicate whether the G1 amount includes GST by placing an X in the relevant box under the G1 label.
(v)
(v)
(iv)
(iv)
(iii)
(iii)
Using information from the accounts or the GST calculation worksheet, complete 1Aand 1B on the back of the return, including any wine equalisation tax (1C and 1D), luxury car tax (1E and 1F) or fuel tax credit amounts (7C and 7D) if appropriate.
Complete 8A (1A + 1C + 1E + 7C) and 8B (1B + 1D + 1F + 7D).
If 8A is more than 8B: * place an in the Yes box in the Payment or refund section * enter the amount (8A minus 8B) at 9 (payment or refund amount) * transfer the amount from 9 to the Amount paid box on the payment slip.
If 8A is less than 8B: * place an in the No box in the Payment or refund section * enter the amount (8B minus 8A) at 9 (payment or refund amount) * tear off the payment slip and discard it.
(vi)
(vi)
Form declaration by authorized person of [name of the organization] with date
I. II. III. IV. V. VI. VII. 8. After completing the form * Sign the declaration. * Record the time taken to complete the return. * Tear off the payment slip. * Lodge the return using the return address envelope provided. Return the form even if all labels are blank. * Make sure your payment is made by the due date. VIII. 9. If no activity to report
If there is no activity to report for the period, one can phone ATO business direct self-help service on 13 72 26 to record a 'nil Annual GST return' lodgement. This is an automated telephone service that is available 24 hours a day. To use the service will need the tax file number (TFN) or Australian business number (ABN) and the document identification number (DIN) from the annual GST 10. More information
Please contact ATO website link: https://www.ato.gov.au/Business/GST/In-detail/Managing-GST-in-your-business/Reporting,-paying-and-activity-statements/Annual-GST-return/ accessed 24 October 2015.
End of procedure
Contribute to the study forum
Answer:
Identifying ways in which I would consult with colleagues or peers with regards to compliance procedures for GST return 1. Check with colleagues or peers (in the same company or in other companies) if they have similar procedures that have been written before and borrow their experience 2. Check with our company’s tax agent if they can similar procedures that we can learn from 3. Search in the internet if such procedures or similar information are available from other people/companies 4. Check Australian taxation office website or call them for information 5. The procedures need to be updated; ask the tax agent to inform us the latest update 6. Join profession forum such as Institute of Certified Bookkeepers etc. to get latest information on GST return compliance 7. Deadline to submit GST return to put in company calendar and put in open space so that everyone is aware 8. Conduct training of the GST return compliance procedures to all the people involved in the process 9. Ensure everyone involved in the process receive a copy or has access to the procedure 10. Conduct internal audit check to see if the procedure is clearly followed
