Assignment Questions
1. (a) Outline the legal duties that directors have to their company (in Australia).
(b) Provide an example of a director that has not fully complied with these legal duties. What were the penalties involved? (Ensure you provide evidence via appropriate references you have obtained to support your answer).
2. One Tel Ltd and ABC Learning Centres Ltd were Australian companies that entered financial distress and were subsequently delisted from the ASX. Watch the CPA Australia videos found at http://www.cpaaustralia.com.au/cps/rde/xchg/cpa-site/hs.xsl/knowledge-auditing-toolkit.html (the video is at the right hand side of the screen) and http://www.youtube.com/watch?v=YYF6JW9vJKo which discuss the downfall of these companies and then answer the following questions.
(a) For both One Tel Ltd and ABC Learning Centres Ltd outline three warning signals that the financial statements and/or notes to the accounts revealed that would have indicated the company was at risk of financial distress? (your answer must explain which statement or note provides this information).
(b) Provide 3 reasons why is it important for directors of companies to have some accounting knowledge.
3. Include an appropriate reference list for all references used and cited in answering questions 1-6. Remember only to list those references actually cited. References accessed but not actually used should not appear on the reference list. The Harvard referencing system can be accessed via the library website at http://library.uws.edu.au/FILES/cite_Harvard.pdf
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