BSBFIN601 1564 Auntra Chompu A1

Assessment Task 1 BSBFIN601 Maintain organisational finances
Record of competency
Unit code and BSBFIN601

title
Learner name Auntra Chompu
Learner ID 1564
number
Learner I declare that:

declaration ● I understand what is required to achieve competency in
the above unit/s
● the work submitted for this assessment is my own work.
Learner signature A.C.
Date 29/01/23
For assessor use only
Assessment  Assessment Task 1  S  NYS  NS

evidence
submitted  Assessment Task 2  S  NYS  NS
(indicate whether
learner’s submission
is Satisfactory, Not Yet
Satisfactory or Not  Assessment Task 3  S  NYS  NS
Submitted)
Assessment
 Competent  Not Yet Competent
outcome
Feedback
Feedback method  web-

 face-to-face  writing/email
conference
Assessor name
Assessor I declare that the assessment conducted was valid, reliable, fair
declaration and flexible and that the learner has been advised of the unit
outcome and provided with feedback.
Assessor
signature
Date
This study source was downloaded by 100000881976194 from CourseHero.com on 04-13-2024 22:26:13 GMT -05:00
© Australian Training Products Pty Ltd 1st edition version: 1
Page 1 of 5
https://www.coursehero.com/file/209452267/BSBFIN601-1564-auntra-Chompu-a1docx/
Learner I declare that:

declaration ● I have been informed of and accept the results of my
assessment
● I acknowledge and understand the feedback provided by
the assessor.
Learner signature A.C
Page 2 of 5
Assessment Task 1
Knowledge questions
Learner instructions
Answer the following questions and write your answers clearly in the spaces
provided. All questions must be answered correctly, and you must provide
enough detail to demonstrate your knowledge. If you require more space to
record your response, attach a page clearly marked with your name and the
unit title.
Your responses should be submitted in written format (or in another format as
agreed with your assessor) and must be in your own words. Your assessor will
ensure that you have been provided with all relevant documentation.
Required resources
For this assessment, learners will need access to:
● a computer with internet access.
Page 3 of 5
Questions
1. List three steps in a process you could use to establish and review profits
and losses from financial statements.
Three steps in a process for assessing profit and loss from financial
statements:
- Review of income account
- Review of period costs and depreciation account
- Review of balance sheet as they provide information that help
assess the current period profit and loss.
2. What are the requirements for financial probity in business? Give three
examples to support your answer.
3 requirements for financial probity in business are:

 Financial statements should be free from any fraud
 Management should have a complete knowledge of the
company’s financial state and affairs prior to signing the
balance sheet.
 The auditor should be independent and competent.
3 examples to support my answer are as follows:
 Unusual events during the year may change income and
expenses; therefore it is always worth reviewing a company’s
previous year’s profits and losses.
 If a company has become insolvent, it is not possible to gauge
the financial state of the company. Therefore it is better to
assume that the income and expenses presented in the
financial statements are accurate.
 If a company has been over exposed to risk, then a review of
previous years’ profits and losses can shed light on whether or
not a change in risk management approach should be adopted.
3. Give an example of a financial system you could use to apply each of the
principles of accounting listed below in an organisational setting:
a. matching
b. account groups
c. time period.
Page 4 of 5
 matching principle - A matching principle is a method of accounting

for transactions that enables an organisation to produce financial
information that is meaningful in terms of the long-term objectives
of the organisation.
 account groups - A group of accounts is a collection of accounts
that will be measured together on the income statement.
 Time period - Time period is an accounting method that focuses on
specific timeframes and allows the company to measure its results
based on specific time periods rather than just the end of the fiscal
year.
4. Choose one type of financial management software and describe five key
functions.
Five key functions are:

 A document control Centre to record and control the company’s
financial documents.
 Financial reports to be generated from the program.
 Account reconciliation. The system generates a list of
transactions that have taken place in bank accounts and can
match this against the ledger entries made manually by staff
members. This ensures that there are no errors in the
journals/ledgers or in any manual entries that may have been
made.
 Payroll.
 Expense reports.
5. Identify and describe five key components of a financial budget.
Five key components of a financial budget are as follows:

 It is an estimate of the company’s income and expenditure for a
future period using past performance to predict what the
company’s income and expenditure will be in the future.
 It can be used to monitor whether actual performance is better or
worse than forecast.
 It allows for management control of expenditure by enabling
managers to prepare and monitor budgets on their various
financial decisions.
 It is used as a key management reporting tool that can help the
management optimise their financial performance.
 It requires careful planning and in-depth research to produce
Page 5 of 5
accurate budget estimates for a specific period.
6. Describe the key components of three pieces of legislation for financial

management in an organisation.
Three pieces of legislation for financial management in an

organisation are as follows:
 Corporations Act 2001 - It has been amended to incorporate
provisions relating to the accounting and auditing standards;
corporate governance; financial reporting; takeover
arrangements and creditors’ rights.
 Australian Securities and Investments Commission Act 2001 -
The Act establishes ASIC as Australia's corporate, markets and
financial services regulator.
 Taxation Administration Act 1953 - The Act provides the
legislative basis for the administration and collection of
Australian Commonwealth tax.
7. Identify and provide an example of three conventions relevant to financial

management in an organisation.
Three conventions relevant to financial management in an organisation

are:
 Auditing convention - The independence of a company’s auditor is
a fundamental principle in accounting and auditing. The auditor’s
job is to make sure that the financial statements of the company
are prepared, audited and presented in accordance with the
appropriate accounting standards. They are to be independent of
management and must not act on any instruction not included in
their report.
 Budgetary convention - Convention says that a business must
ensure that it has enough working capital i.e. cash to meet its
short-term obligations.
 Economic and substance over form convention - This principle is
based on the idea that the substance of an entity, rather than its
legal structure, should determine the accounting treatment for
transactions and events.
8. What are the three key Australian Tax Office (ATO) requirements for
businesses?
Page 6 of 5
• Businesses must keep records and obtain invoices for all business
purchases and expenses. These records must be kept for 5 years.
• Businesses must include GST (Goods and Services Tax) on sales
invoices or price lists, or notify clients that GST is not included in the
price. This applies to all business purchases, sales, fees and charges.
• Businesses must pay GST on the value of any taxable importations
they make.
Comments, declaration and signature

Assessor
comments
Assessor name
Assessor I declare that all requirements in Assessment Task 1 have been

declaration satisfactorily completed and verbally authenticated if required.
Assessor Date
signature
Learner name
Learner I declare that I have been informed of and accept the results of
declaration this part of my assessment.
Learner signature Date
Page 7 of 5
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Assessment Task 1 BSBFIN601 Maintain organisational finances

Unit code and BSBFIN601

Learner name Auntra Chompu

Learner I declare that:

Learner signature A.C.

For assessor use only

Assessment  Assessment Task 1  S  NYS  NS

Feedback method  web-

Learner I declare that:

Learner signature A.C

3 requirements for financial probity in business are:

 matching principle - A matching principle is a method of accounting

Five key functions are:

5. Identify and describe five key components of a financial budget.

Five key components of a financial budget are as follows:

accurate budget estimates for a specific period.

6. Describe the key components of three pieces of legislation for financial

Three pieces of legislation for financial management in an

7. Identify and provide an example of three conventions relevant to financial

Three conventions relevant to financial management in an organisation

Comments, declaration and signature

Assessor I declare that all requirements in Assessment Task 1 have been

Learner signature Date

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