Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371

CRICOS Provider Code: 02870D

North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 Tel: +612 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 Tel: +612 8959 6340 F 02 9955 3888
Canberra Campus:Suite1, Level 4, 40 Cameron Avenue, Belconnen ACT 2617 Tel:+612 6253 5184

BSBFIM601 Manage Finance

Assessment Task 2 - Assignment

Question 1

a) Explain in a paragraph the relationship between Australian Accounting Standards and

accounting principles.
b) Define ‘financial probity’.
c) Why does the balance sheet not provide an accurate picture of the organisations
profitability?
d) What is the value of performing breakeven analysis?
e) Why may an organisation be required for and remit fringe benefits tax (FBT)? Where
are FBT payments recorded in the organisations chart of accounts?
f) What ratio would you use to analyse trends in an organisations cash flow over a
number of periods? Why?

Question 2

You are required to consider the implementation of budgets for your organisation, or one
that you are familiar with. This may be an organisation that you have previously worked
for or one that you are in close contact with, such as your training provider, a not-for-
profit organisation you volunteer for, or a sporting or social club.

a) Document the organisational planning and financial cycle.

b) Assess your organisations business and accounting software’s ability to meet
organisational and statutory requirements. Outline your findings.
c) Review your organisations most recent profit and loss statement. If you are
reviewing the statements of an organisation that you do not currently work for,
locate its annual report and make your calculations based on the information from
the annual statements. Calculate the organisations:
• Gross profit margin
• Net profit margin
• Net profit ratio
• Return on owner’s equity
• Return on assets

d) Research the organisations tax obligations, then answer the following:

I. What are the due dates for lodging and paying GST?
II. What are the due dates for lodging and paying income tax?
III. What are the due dates for lodging and paying relevant state/territory tax?
BSBFIM601 Assessment 2 V2.1 Page 1 of 3
 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 Tel: +612 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 Tel: +612 8959 6340 F 02 9955 3888
Canberra Campus:Suite1, Level 4, 40 Cameron Avenue, Belconnen ACT 2617 Tel:+612 6253 5184

Question 3

a) Explain in a paragraph the relationship between zero-based budgeting, resource

allocation and the estimate of new items for inclusion in budgets.
b) When would you review the cost of goods sold (COGS) forecast to determine gross
profit margins?
c) Explain in a paragraph, what would you review during the profit and loss budget
setting process to determine net profit margins?

Question 4

a) What is an audit trail and why is it critical to be maintained?

b) Why is it critical to conduct variance analysis of budgets on a monthly basis and to
report this analysis according to financial reporting requirements to senior decision
makers?
c) What will a review of the organisation’s accounts receivable ageing summary
enable managers to identify? Why is this important?

Question 5

a) How do statutory requirements affect the content and structure of organisational

financial reports?
b) Which agencies have developed Standard Business Reporting (SBR) enabled
reporting?
c) What risk management tool can be used to prioritise significant issues in
statements?
d) What must the recommendations be ultimately aimed at?
e) Explain in a paragraph the relationship between internal controls and
organisational objectives.
f) What analyses may be used to provide information for tender or proposal bid
estimates?

Question 6

In this section you are required to consider the reporting of financial statements and
methods for conducting an audit of financial management processes for your
organisation, or one that you are familiar with. This may be an organisation that you have
previously worked for or one that you are in close contact with, such as your training
provider, a not-for-profit organisation that you volunteer for, or a sporting or social club.

BSBFIM601 Assessment 2 V2.1 Page 2 of 3

 Crown Institute of Business and Technology Pty Ltd ABN 86 116 018 412 National Provider No: 91371 CRICOS Provider Code: 02870D
North Sydney Campus: 116 Pacific Highway North Sydney NSW 2060 Tel: +612 9955 0488 F 02 9955 3888
Sydney CBD Campus: Level 5, 303 Pitt St Sydney NSW 2000 Tel: +612 8959 6340 F 02 9955 3888
Canberra Campus:Suite1, Level 4, 40 Cameron Avenue, Belconnen ACT 2617 Tel:+612 6253 5184

a) Outline the report requirements (content and structure) for a monthly financial
report. Ensure how will you identify the recommendations to improve positions are
presented, whether independently or within the monthly report.
b) Document the tools and techniques used to identify significant issues in
statements, and for prioritising issues for responses.
c) Develop a checklist for an internal audit of the organisational internal control.

BSBFIM601 Assessment 2 V2.1 Page 3 of 3