QUESTION
FNS40207 Certificate IV in Financial Services
(Bookkeeping)
GROUP THREE — PART ONE
Bookkeeping Policies and Practices
FNSBKPG401A Develop and implement policies and practices relevant to bookkeeping activities
FNSICIND401A Apply principles of professional practice to work in the financial services industry
Theory Assessment Test
Table of Contents
Introduction 3
Evidence 3
Units of Competence 4
1. FNSICIND401A Apply principles of professional practice to work in the financial services industry 4
2. FNSBKPG401A Develop and implement policies and practices relevant to bookkeeping activities 5
FNSICIND401A Apply principles of professional practice to work in the financial services industry 6
Section 1.1: Identify the scope, sectors and responsibilities of the industry 6
Section 1.2: Identify and apply financial services industry guidelines, procedures and legislation 9
Section 1.3: Manage information 10
Section 1.4: Plan work to be completed taking into consideration time, resources and other constraints 13
Section 1.5: Develop and maintain personal competency 16
FNSBKPG401A Develop and implement policies and practices relevant to bookkeeping activities 17
Section 2.1: Develop a professional working relationship with relevant parties 17
Section 2.2: Carry out research to identify compliance requirements and support material 21
Section 2.3: Set up and maintain appropriate systems to meet compliance requirements 23
Guidelines for ‘working under the direction of a registered tax agent’ 23
Overview 23
Principle 1: Competence 25
Principle 2: Checking by the registered tax agent 25
Principle 3: Corrective action and feedback is provided 26
Appendix 1 – Discussion: why we are providing this guideline 27
Appendix 2 – Legislative basis: Only registered tax agents can provide tax agent services 28
Appendix 3 – Meaning: ‘Working under the direction of’ not defined 29
Appendix 4 – Agreement 30
Appendix 5 – Privacy 31
Introduction
This group requires prior knowledge of how to search the ‘worldwide web’ using a search engine like Google, download documents and copy URL’s (Uniform Resource Locators).
When requested to give an answer in this document please type the answer into the Word document. The file will expand as necessary. The file MUST be saved as “G3P1 Bookkeeping Policies (followed by your own first name, family name and student number in brackets).doc”. e.g. G3P1 Bookkeeping Policies (John Smith 1005).doc. Please also add your full name and student number to the HEADER record of this file.
Without exception please PRINT all reports as specified, ensure they are labelled appropriately and FILE them in your evidence file.
As it is important that you follow the progress of each transaction in a logical sequence this assessment covers both practical and theory questions.
Evidence
Whenever you are asked to “print” a document or a report please write the question number on the form and store it in your evidence file. When asked to submit your evidence please ensure it is in numerical sequence. Please note that this is a Certificate IV level assessment and you are expected to be competent in the use of both Microsoft Word and Microsoft Excel. If you are not we recommend that your take a course in these subjects before commencing this assessment. No hints will be provided in this assessment.
To become compliant in this group you must also achieve competency in Group 2: Establish and Maintain a Bookkeeping System and as there are a number of ‘performance criteria’ elements included in that group for which you will receive RPL (Recognition of Prior Learning) in this group. You must also complete Group 4 – Part 2: End-of-Period Financial Reports & Activity Statements as there are a number of ‘performance criteria’ elements in that part for the two units assessed in this part.
Email addresses
When asked to email us please send your email to the campus below with whom you are enrolled:
Queensland
BIA — Mt Gravatt [email protected]
ABC — Cleveland [email protected]
MBS — Toowoomba [email protected]
RTG — Gold Coast [email protected]
MYT — Kippa-Ring [email protected]
Western Australia
WCT — Perth [email protected]
Victoria
TBST — Docklands [email protected]
WTG — Mount Eliza [email protected]
New South Wales
EBS — Menai [email protected]
LNM — North Sydney [email protected]
Units of Competence
In order to obtain competency in this group 3 – part 1 you must meet the following ‘Required Knowledge & Skills’ as set down in the FNS04 training package:
1. FNSICIND401A Apply principles of professional practice to work in the financial services industry
Application of the unit:
This unit covers the fundamental skills needed for employment and the application of industry and company procedures, guidelines, policies and standards in a daily work context within the financial services industry.
This unit requires the application of an understanding of the industry and the way it operates to the work carried out by the employee. It involves demonstration of a working knowledge of company policy and procedures required to undertake day to day tasks. It is the base unit on which the other skills required for work in the financial services industry are built. It may be applied in all sectors of the industry.
Knowledge requirements include:
• knowledge of industry and company policies and procedures in regard to customer service and administration
• knowledge of the economic and political climate relating to the financial industry
• knowledge of relevant legislation and statutory requirements and industry codes of practice including Consumer Credit Code, Privacy Act, Credit Act
• basic communication techniques such as questioning, listening and giving feedback over the phone, face to face, one to one, or in a small group
• knowledge of industry/company security practices and knowledge of the reasons for such practices
• knowledge of internal administration systems such as basic accounting systems and databases, software programs
• knowledge of technology and computer systems and software usage
Skills requirements include:
• basic communication skills in terms of literacy skills, written documentation, telephone skills, listening and questioning
• basic interpersonal and communication skills (including listening and questioning)
• administrative skills such as managing information, appropriate filing, documentation and coordinator of tasks and time management
• basic numeracy skills including use of appropriate software, databases and computer and keyboards skills
• referral skills
2. FNSBKPG401A Develop and implement policies and practices relevant to bookkeeping activities
Application of the unit:
This unit applies equally to individuals seeking to establish policies and practices in relation to their own work within the bookkeeping industry and individuals providing contract bookkeeping services.
This unit requires the application of skills and knowledge to research and identify relevant information and materials, and set up systems to provide a quality level of service to business owners or employers. This would be achieved both through direct contact with business owners and through establishing and maintaining relevant systems of work. The unit relates specifically to the set up of systems and standards designed to provide a sound framework for carrying out work on a continual basis, including maintaining the individual’s own professional development.
The development of policies and practices covered in this unit apply equally to providing guidelines for individual bookkeeping contractors, subcontractors or their clients. Some of the work covered in this unit is undertaken with supervision from relevant parties. This unit may be applied to a range of industries.
Knowledge requirements include:
The following skills must be assessed as part of this unit:
• written communication skills necessary to complete and record documentation
• literacy skills sufficient to document policies and practices
• time management skills as required to provide a timely and professional service
• interpersonal skills required to develop relationships with business owners and other relevant persons
• problem solving skills to identify activities outside the scope of the individual’s work
• assessment skills necessary to identify relevant materials and processes
• ability to identify and use skills of other professionals when referring work
The following knowledge must be assessed as part of this unit:
• relevant policies and procedures in regard to customer service and techniques
• relevant statutory, legislative and regulatory requirements regarding the documentation of accounting procedures
• relevant industry codes of practice
• avenues for identifying other professionals
Critical aspects for assessment and evidence required to demonstrate competency
Evidence of the following is essential:
• knowledge of relevant legislative requirements
• communication and liaison skills in relation to liaising with a variety of other professionals
• ability to research and identify policy and procedural material
• ability to write and compile manuals covering a variety of policy and procedural issues
• knowledge of quality assurance practices and procedures
The assessment must ensure that access to relevant IT systems and databases is demonstrated.
FNSICIND401A Apply principles of professional practice to work in the financial services industry
Section 1.1: Identify the scope, sectors and responsibilities of the industry
A. When the Australian dollar depreciates against the US Dollar, what effect does this have on Australian exporters who export to the US? How does it affect Australian consumers of goods imported from the US? What about the tourism industry in Australia?
Answer: Exports become cheaper and imports become more expensive. It becomes more expensive to travel to the USA FNSICIND401A 1.1.1
B. When the Reserve Bank of Australia raises official interest rates, would consumer spending, government spending and investment by businesses increase or decrease? Why?
Answer: Consumer, government and investment spending would decrease because the government is trying to slow down the economy. FNSICIND401A 1.1.2
C. Read the article ‘Numbers don’t add up for everyone’ by Helene Zampetakis, which appeared in the Australian Financial Review on 21 July 2006. This article is stored on your flash drive.
How do you think an article such as this influences people perceptions of bookkeepers?
Answer: The article paints a bleak picture of the bookkeeping industry as it has existed but should give people hope that these problems shall be remedied as the law takes effect. FNSICIND401A 1.1.3
D. Read the article ‘Numbers don’t add up for everyone’ by Helene Zampetakis, which appeared in the Australian Financial Review on 21 July 2006. This article is stored on your flash drive.
Can you think of any other reasons (eg political, social, economic) why the Certificate IV in Financial Services (Bookkeeping) has been created?
Answer: One major reason would be to improve compliance with the tax laws. FNSICIND401A 1.1.3
E. Explain why a person providing contract bookkeeping services should build up a professional network including accountants and tax advisors? List three (3) techniques a bookkeeper can use to develop a professional network?
Answer: The major reason for building a network is to assist in building a client base. Three techniques include letters of introduction of all accountants listed in the yellow pages to introduce them to your company, joining multiple bookkeeping associations and join an organization formed particularly to allow professionals of all professions to network and refer clients to each other. FNSICIND401A
1.3.2
FNSBKPG401A 1.3.4
F. CLERP 9 is part of the Audit Reform and Corporate Disclosure Act 2004. What does the initials CLERP stand for and what are the three (3) major reforms that are focused on?
Answer: CLERP stands for Corporate Law Economic Reform Program.
• Strengthening the independence and role of auditors
• Financial reporting
• Corporate disclosure FNSICIND401A 1.3
F. Sectors of the financial services industry
List at least two activities performed by each of the following sectors of the financial services industry. FNSICIND401A 1.2.2; 1.3.2
Sector Main activities performed
Retail banking & lending Opening personal bank accounts
Personal mortgages
Business banking & lending Opening business bank accounts
Business lending
Mortgage brokers A mortgage broker acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses.
http://en.wikipedia.org/wiki/Mortgage_broker
Financial planners Financial planners help plan for ones future such as
• Wealth creation
• Retirement planning
• Wealth protection
Accounting Public accountants work for public accounting companies. They do accounting, auditing, tax, and consulting work. Some have their own businesses. They do many different kinds of accounting for people outside the company.
Management accountants keep track of the money spent and made by the companies for which they work.
Internal auditors make sure that a company’s accounting records are right. They check the records to see that no one in the company is stealing. They also check to see that no one in the company is wasting the company’s money.
Government accountants and auditors make sure that government accounting records are right. They also check the records of people doing business with the government.
http://www.bls.gov/k12/money01.htm
Registered tax agent A tax accountant is simply an individual who assists a taxpayer in preparing a tax return For businesses, the accounting system must also provide data for use in the completion of the company’s tax returns. This function is the concern of the tax accountant. In some countries, financial accounting must obey rules laid down for tax accounting by national tax laws and regulations, but no such requirement is imposed in the United States, and tabulations prepared for tax purposes frequently differ from those submitted to shareholders and others. In this regard, “taxable income” should be viewed as a legal concept rather than an accounting concept.
http://www.cpafinder.com/accounting/tax-accountant-tax-accounting.html
Stock broker A stockbroker invests in the stock market for individuals or corporations. Only members of the stock exchange can conduct transactions, so whenever individuals or corporations want to buy or sell stocks they must go through a brokerage house. Stockbrokers often advise and counsel their clients on appropriate investments. Brokers explain the workings of the stock exchange to their clients and gather information from them about their needs and financial ability, and then determine the best investments for them. The broker then sends the order out to the floor of the securities exchange by computer or by phone. When the transaction has been made, the broker supplies the client with the price. The buyer pays for the stock and the broker transfers the title of the stock to the client and performs clearing and settlement procedures. The beginning stockbroker’s first priority is learning the market. One broker said, “First you have to decide whether you have an interest in the stock market. This will determine how well you’ll do. If you’re just interested in making money you won’t get very far.” Stockbrokers spend their time in a fast-paced office, usually working from nine to five, unless they are just starting out or have to meet with clients. The new broker spends many hours on the phone building up a client base. Sometimes brokers teach financial education classes to expose themselves to potential investors who may then become their clients.
http://www.princetonreview.com/Careers.aspx?cid=150
Insurance broker An insurance broker is a person who finds the best insurance policy possible for an individual
Bookkeepers Bookkeeping is the recording of financial transactions. Transactions include sales, purchases, income, and payments by an individual or organization. Bookkeeping is usually performed by a bookkeeper. Bookkeeping should not be confused with accounting.
http://en.wikipedia.org/wiki/Bookkeeper
G. What are the Functions and Responsibilities of the AASB? What do the initials stand for?
Answer: AASB stands for Australian Accounting Standards Board.
It is responsible for developing and issuing AASB Accounting Standards (AASBs) and the “care and maintenance” of the body of Standards. The Board’s functions and powers are set out in the Australian Securities and Investments Commission Act 2001. FNSICIND401A 1.3
H. Have the Australian Accounting Standards (AASB’s) been replaced? If so what are the new standards?
Answer: The Australian Accounting Standards Board has been implementing the strategic direction from the Financial Reporting Council to adopt International Accounting Standards Board (IASB) Standards for application to periods beginning on or after 1 January 2005. FNSICIND401A 1.3
I. Why does the AASB issue Exposure Drafts?
Answer: They issue exposure drafts for comment by the public sector. FNSICIND401A 1.3
Section 1.2: Identify and apply financial services industry guidelines, procedures and legislation
A. List three (3) ethical issues that a bookkeeper may have to deal with as part of their daily activities?
Answer:
• Where a business owner asks you to put through a personal asset as a business asset.
• Where someone asks you for your clients ATN, which you are by law not allowed to do.
• Where someone asks you for your clients private details also by law you are not allowed to do. FNSICIND401A 2.3
FNSBKPG401A 1.6.2
B. For one of the ethical issues you have identified above, explain how you would apply the ICB Code of Professional Conduct to come to a solution?
Answer: (Ethical issue chosen for this question – Where a business owner asks you to put through a personal asset as a business asset) Item 13 of the ICB Rules of Professional Conduct states that “A member must not compromise his professional standards or engage in or act so as to assist or conceal any criminal act even if by doing so he may act contrary to the instructions of his client.” This prohibits claiming a personal asset as a business asset as this is clearly illegal. FNSICIND401A 2.3
FNSBKPG401A 1.6.3
The following is the proposed ‘Code of Professional Conduct’ contained in section 604–10 of the draft Tax Agent Services Bill. Please read and then answer questions C, D & E below.
1. You must comply with the taxation law.
2. You must not knowingly impede the proper administration of the taxation law.
3. You must act honestly and with integrity.
4. You must act lawfully in the best interests of your client.
5. You must not allow your own interests to conflict with those of a client other than with the consent of the client.
6. You must not allow the interests of one of your clients to conflict with those of another of your clients other than with the consent of the relevant clients.
7. Unless you have a legal duty to do so, you must not disclose any information relating to a client’s affairs to a third party without your client’s permission.
8. You must ensure that a tax agent service that you provide is provided competently.
9. You must maintain knowledge and skills relevant to the tax agent services that you provide.
10. You must take reasonable care to ascertain the true state of the affairs of your clients that are relevant to the taxation law.
11. You must take all reasonable steps to correctly apply the taxation law to the circumstances of your clients.
12. You must advise your clients of the client’s rights and obligations under the taxation law that are related to the tax agent services or BAS services that you are providing to the client.
13. If another person provides tax agent services on your behalf, you must supervise and control the person’s provision of those tax agent services.
14. If you receive money or other property from or on behalf of a client and you hold the money or other property on trust, you must account to your client for the money or other property.
15. You must maintain any professional indemnity insurance that the board requires you to maintain.
16. You must respond to requests and directions from the board and the commissioner in a timely, responsible and reasonable manner.
C. Which taxation laws in item 1 “You must comply with the taxation law” apply to a Bookkeeper who is working as a BAS Service Provider?
Answer:
• S 251L of the Income Tax Assessment Act 1936
• Privacy Act 1988
• Industry codes of practice
• Occupational health and safety legislation
• Anti-discrimination legislation
• Consumer credit code
• Legislation covering competition, prudential regulation
• Finance code
• Electronic funds transfer code of conduct
• Financial transaction reports act
• Corporations act
• Business names legislation
• Financial services reform act
• International accounting standards FNSICIND401A 2.3
FNSBKPG401A 1.6.2
D. As a Bookkeeper who is working as a BAS Service Provider how would you plan to comply with item 9 “You must maintain knowledge and skills relevant to the tax agent services that you provide”?
Answer: By making sure you are a member of a professional body, receive updates for the ATO, and doing the mandatory 8 hours per year required by the ATO. FNSICIND401A 2.3
FNSBKPG401A 1.6.2
E. Why do you think that as a Bookkeeper who is working as a BAS Service Provider you are required to hold professional indemnity insurance as required by item 15? What is the difference between professional indemnity insurance and public liability insurance?
Answer: A bookkeeper is required to have professional indemnity insurance so if there are any mistakes made by the bookkeeper they will be covered by the insurance policy.
Professional indemnity insurance covers the bookkeeper for mistakes made to the clients books, public liability insurance covers the bookkeeper covers for personal injury if anyone comes to their place of business. FNSICIND401A 2.3
FNSBKPG401A 1.6.2
Section 1.3: Manage information
A. List four (4) source documents that a bookkeeper may be required to review as part of their routine (daily/weekly/monthly) work tasks?
Answer:
• Bank statements
• Creditor invoices
• Debtor invoices
• Cheque butts FNSICIND401A
3.1.1
B. List three (3) reports that a bookkeeper may be required to print as part of their routine monthly routine?
Answer:
• Bank reconciliation reports
• Debtor summary reports
• Creditor summary reports FNSICIND401A
3.1.1
C. List two (2) reconciliation reports (other than bank reconciliation) that a bookkeeper must run at least monthly?
Answer:
• Invoice reconciliations
• Purchases reconciliations FNSICIND401A
3.1.1
D. What is the purpose of printing a Profit & Loss statement?
Answer: A profit and loss statement, otherwise known as an income statement, is a summary of a company’s profit or loss during any one given period of time, such as a month, three months, or one year. The profit and loss statement records all revenues for a business during this given period, as well as the operating expenses for the business.
You use a profit and loss statement to track revenues and expenses so that you can determine the operating performance of your business over a period of time. Small business owners use these statements to find out what areas of their business are over budget or under budget. Specific items that are causing unexpected expenditures can be pinpointed, such as phone, fax, mail, or supply expenses. Profit and loss statements can also track dramatic increases in product returns or cost of goods sold as a percentage of sales. They also can be used to determine income tax liability.
http://www.mbanotesworld.in/2008/10/purpose-of-profit-and-loss-statement.html FNSICIND401A
3.1.; 3.2
E. What is the purpose of printing a Balance Sheet?
Answer: the purpose of the balance sheet is to show a company’s Assets, Liabilities and Equity at a given point in time, usually the company’s fiscal year end. This is as opposed to an Income Statement, for example, which shows earnings throughout the year. A balance sheet is as of a given day. it does not show activity for a whole year, although you can compare year-to-year balance sheets to deduce some information.
A balance sheet is divided into two sides. On one side is the total assets of the Company, such as cash, working capital, fixed assets (machinery, land, equipment, autos, etc), and other assets. On the other side is the Liabilities, such as accounts payable, debt, and other liabilities. Assets minus liabilitiese equals equity, which is the remaining ownership in the company – that accorded to shareholders.
http://answers.yahoo.com/question/index?qid=20081027041328AA7olAA FNSICIND401A
3.1.; 3.2
F. What is the purpose of printing a Debtors Report?
Answer: The purpose of printing a debtors report is to show a list of customers amounts outstanding at any given time. The report shows invoice owing over a number of given days. Ie current, 30, 60 and 90 days outstanding. FNSICIND401A
3.1.; 3.2
G. What is the purpose of printing a GST Transaction Report?
Answer:
• The GST sales journal and purchases journal drill down to each transaction to provide a full trail.
• • The GST Summary report summarises the sales and purchase GST categories for a period and is used as the in preparation of the BAS.
• • The trading summary provides an excellent snapshot of the trading position of the business at any point in time. It shows sales, purchases and profit statistics for the day, month and year. Aged customer and supplier balances and value of products and orders are also shown.
http://www.peachsoftware.com.au/tr.htm FNSICIND401A
3.1.; 3.2
H. Research project
You are required to research and write a report on the importance of the Bookkeeping industry in Australia, with particular emphasis on how Bookkeepers support the accounting profession.
Access relevant reports and information from various websites and textbooks and prepare a report covering the following issues:
• The role and responsibility of the Bookkeeping industry and why it is important
• The ways in which Bookkeepers interact with Registered Tax Agents/Accountants
• External forces, e.g. political, economic, which impact on the Bookkeeping industry
• The role of the industry regulators, including the accounting professional associations
• Details of any critical legislation affecting the sector
Your report can be of any length between 1000 and 3000 words and may contain graphs, charts and the like if appropriate. It should also contain the following headings:
• Title Page
• Executive summary
• Table of Contents Page
• Body
– Introduction
– Discussion
– Conclusion
Please either type your report here or in a separate word file – which must be saved onto your USB flash drive. Please ensure that you name and student number is included in the Header and that the Footer includes the date created and page numbers:
FNSICIND401A
3.1; 3.2; 3.3
Section 1.4: Plan work to be completed taking into consideration time, resources and other constraints
1.4.1 Meeting with the business owner
This is the same assignment exercise as MS02 in the Group 2 Part 1 assessment – if you have already completed it as part of that assessment please make that declaration here and go onto section 1..4.2
I have/have (cross out one) not completed this assignment as part of the Group 2 Part 1 assessment.
________________________________________
It is essential that the bookkeeping system meet the requirements, needs and expectations of the business, the business owner and staff. To facilitate this, the bookkeeper should clarify these needs and expectations with the business owner (and staff, if appropriate).
Using the headings below as a guide (please feel free to add any extra headings you may think are important), create a Bookkeeping Agreement to be eventually signed by yourself and the business owner. Then, using your draft Bookkeeping Agreement, prepare an email to the business owner (addressed to Wayne Cooper and sent to the email address of your campus (see list on page 3) with a copy of the draft agreement attachment. In your email, request that Wayne Cooper read the agreement and indicate any amendments that he would like made.
After you have finished, make any changes to the agreement that are necessary then ask the business owner to sign it to verify that both parties understand what is required of them.
Nature of the business – activities that are undertaken; nature of the entity; industry type; mission statement
Role of the bookkeeper in helping the client to achieve their business objectives
Specific activities to be performed by the bookkeeper Activity Timeframe
Conditions under which bookkeeping activities are to be done (eg where, when, for how, what format, record-keeping afterwards, resources required, people to speak to)
Remuneration arrangements
Activities that are outside the scope of the bookkeepers role, and who to refer them to Activity Who to refer to
Who is liable in the event of errors or problems? Problem Who is liable
Persons the bookkeeper is authorised to speak to/liaise with on behalf of MGS Person/organisation Scope of authority to deal with this person/organisation on behalf of MGS
Signatures
MGS proprietor, Wayne Cooper
Bookkeeper
1.4.2 Work schedule
Refer to ‘Meeting with the business owner’ in the 1.4.1 Assessment. Complete a work schedule, based on the tasks, time, resources and other constraints you identified at that meeting. We have listed some headings below which may assist you.
Alternatively you may include a real life work schedule that you have complied to meet the requirements of one or more of your clients. FNSICIND401A 4.2.1; 4.3
Day or Date
1/4/06
15/4/06
Time
2 hours
1 hour Activity
Payroll
Sales
Other people involved
Wayne Resources needed
Timesheets
MYOB upto date
Sales Analysis reports
Constraints
Loss of power
People
No Wayne
No sales staff Priority
High
High Deadline
Lunchtime on Tuesday
By the end of the month
1.4.3 Contribute to organisational planning
The MGS Manager has asked you to prepare a proposed overheads budget for 2006/2007. Refer to the Profit & Loss variance report that you produced for PE05 ‘End of Period Financial Reports’ in the G2 Assessment.
Use this variance report to develop an overheads budget for the next financial year (2006/2007) using Microsoft Excel. Please use the following column headings: FNSICIND401A 4.4
Account 2006 Budget 2006 Actual 2006 Variance 2007 Budget Variance between 2007 & 2006 Budgets Justification (if 2006/2007 budget is higher)
When complete please copy and paste your Microsoft Excel spreadsheet here – or print separately and ensure that your name, student number and the words “G3 Part 1 Q. 1.4(b)” are included on the printout.
1.4.4 Contribute to organisational planning
Now create a letter to the MGS Manager briefly summarising the changes that have been made to the 2006/2007 budget, compared to the 2005/2006 budget. You can either type the letter here or print separately and ensure that your name, student number and the words “G3 Part 1 Q. 1.4(c)” are included on the printout.
Type letter here:
Section 1.5: Develop and maintain personal competency
A. Where could a bookkeeper obtain advice about licensing and legal requirements for performing bookkeeper services?
Answer: The Tax Practitioners Board FNSICIND401A 5.2.4
B. List five (5) skills or personal attributes necessary to competently work as bookkeeper?
Answer:
• Detail-oriented
• Organised
• Logical thinking
• Methodical
• Tolerance for lots of numbers and calculations FNSICIND401A 5.2.1
C. List five (5) specific things that a person should know how to do before beginning work as a contract bookkeeper?
Answer:
• Attention to Detail
• Basic Understanding of Accounting
• Understanding of GST
• Willing to work with your Accountant
• Membership of Professional Body FNSICIND401A 5.2.1
D. List three (3) reasons why bookkeepers should participate in ongoing professional development?
Answer:
• To receive up-to-date information on the changes in the law
• To enable 8 hours of upkeep per year
• To enable BAS lodgement through the professional body FNSICIND401A 5.1.2; 5.3.4
FNSBKPG401A 1.7.1
FNSBKPG401A Develop and implement policies and practices relevant to bookkeeping activities
Section 2.1: Develop a professional working relationship with relevant parties
A. Why should bookkeepers obtain feedback from clients and other stakeholders? What should be done with that feedback?
Answer: Feedback should be obtain to ascertain whether or not they are doing the job correctly, If the feedback is unifiable then they should make sure they correct their errors. FNSBKPG401A 3.2.1
B. How does s52 of the Trade Practices Act 1974 affect how bookkeepers can advertise their services?
Answer: They cannot lie in their advertising. FNSBKPG401A 1.3.1; 1.4.1
C. What types of insurance should a person providing contract bookkeeping services obtain? Explain what each type of insurance covers?
Answer:
• Professional Indemnity Insurance
• Public Liability Insurance
• Where a client of yours may hold you liable for a piece of advice you have given that have caused them financial loss.
• Where a client coming into your place of business suffers bodily injury FNSBKPG401A 1.3.1; 1.4.1
D. Agreement between the Bookkeeper, the Client and the Tax Agent
In order for a contract bookkeeper to provide BAS service to their clients, they must develop an agreement that reflects the understanding and agreement between. the Bookkeeper, the Client and the Tax Agent
Please develop here the framework for an agreement between a bookkeeper and its client ands the client’s tax agent. Hint: If you are an ICB member you may find a template on their web site which will assist you.
Answer: FNSBKPG401A
1.2; 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
E. Activities that fall outside the role and responsibilities of the bookkeeper
E. In order to cater for your client’s activities that fall outside the role and responsibilities of a bookkeeper you need to identify and establish networks of individuals able to carry out such activities.
Please list the professional to whom you could refer your clients for consultation for the following activity: FNSBKPG401A 1.3
Activity Professional
1. Legal advice WA Legal Advice Pty Ltd
2. Insurance Allianz Insurance
3. Retirement Superinvest Financial Solutions
4. Share purchase OptionsXpress
F. What are the advantages of cash accounting?
Answer: There are actually only a couple of benefits from using the cash based method accounting, however if this method fits your business, it will save you money in bookkeeping expenses. If most of your sales are cash sales, you don’t maintain an inventory, and you don’t have customer accounts or returns, then the cash based method is a much better choice, because it’s much easier and it’s much cheaper to maintain.
http://www.moneyinstructor.com/doc/cashbased.asp FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
G. What are the disadvantages of cash accounting?
Answer: The disadvantages of cash accounting is that at the end of the quarter when the BAS is being calculated, there is never a clean cut sales and purchases made. ie there is always an amount left over, therefore the reconciliation of the BAS is always harder. FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
H. What are the advantages of accrual accounting?
Answer: Actually, quite a few if you happen to be a mid-sized business and you need to keep an accurate picture of your company’s profitability on a regular basis. A few of the additional benefits are: greater focus on the business output, not the input; more cost-effective and efficient use of resources; the full cost of providing your product or service can be compared across industry standards; improved accountability and better financial management, just to name the most common.
http://www.moneyinstructor.com/doc/accrualbased.asp FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
I. What are the disadvantages of accrual accounting?
Answer: Accrual accounting is a detailed process that requires several closing entries to be posted at the end of each accounting period. Most businesses use an outside accountant for consulting purposes when using the accrual accounting method, which increases business expenses.
http://www.ehow.com/facts_5565824_advantages-cash-vs-accrual-accounting.html
FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
J. Should Mount Gravatt SportsWorld have chosen cash accounting instead of accrual accounting? Why?
Answer: No MGS should not have chosen cash accounting over accrual because of the inventoried basis of their business. And they are growing a fast pace which means they will soon be over the $2 million threshold which means they would have to change to accrual anyway. FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
K. What are the legislative requirements that bookkeepers should be aware of when completing activity statements?
Answer:
• Tax Agent Services Act 2009
• Tax Agent Services Regulations 2009
• Tax Agent Services (Transitional Provisions and Consequential Amendments) Act 2009
http://www.tpb.gov.au/TPB/legislation/TPB/Legislation/Legislation_overview.aspx FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
L. Which accounting software packages best cater for BAS lodgement on a ‘cash’ basis?
Answer:
• MYOB
• Quickbooks
• Solution 6 FNSBKPG401A 1.3.1; 1.3.4; 1.4.2; 2.2
FNSICIND401A 5.2.2
M. Name three (3) major differences, strengths or weaknesses between MYOB and QuickBooks?
Answer:
• Quickbooks has a better find transaction than MYOB
• MYOB’s GST codes are easier than Quickbooks as Quickbooks has different codes for expenses and income
• The Baslink is easier in MYOB than in Quickbooks FNSBKPG401A 1.3.1; 1.3.4; 1.4.2; 2.2
FNSICIND401A 5.2.2
N. Name three (3) accounting software packages other than MYOB and QuickBooks? What advantages do they offer over MYOB and QuickBooks?
Answer:
• Sage Business Solutions. Sage has built a broad portfolio of products that serve the differing accounting needs of many companies.
• We don’t have a one size fits all approach. Whether you are a small start-up business needing your first accounting package or a large multinational that needs to scale up your Enterprise Resource Planning (ERP) capabilities, we have the products and services to suit your needs.
• Sage’s accounting solutions reflect our belief in locally developed products for specific local markets. For example, Sage Accpac ERP features Australia’s best tax engine and multi-currency capabilities, making compliance for you in any country a breeze.
• Sage Accpac ERP also cuts reporting time across every variable in your business, so you have up to the minute information to make informed business decisions anytime, anywhere.
• ERP Software. You can customise any one of the existing standard reports in ERP Software in hundreds of different ways. These reports can then be saved and viewed at any time. With an almost unlimited range of reports, using different printouts and styles that will allow a user to create a new report or modified any existing report and save as their own. Set your columns of data to not only total as a sum, but also display an average, a maximum or minimum value or any other range of totaling features. As an added bonus any piece of data that is displayed on any of these reports can be simply drilled into, this fantastic feature will give you extensive detail of what makes up the value displayed, right back to being able to open the original transaction on the report.
• NCH Software. Track outgoing payment and purchasing transactions.
• Track incoming sales and receipts.
• Create invoices, orders, quotes.
• Create and print checks.
• Receive payment directly from Express Accounts.
• All changes will be reflected in your transaction journals.
• Input journal entries manually, print or export your journal.
• Reports include balance sheet and profit & loss plus more.
• Send reports automatically by email or fax.
• Regional format settings include currency symbol, end of financial year, decimal point display and paper size.
• Run multiple businesses from within the same program. FNSBKPG401A 1.3.1; 1.3.4; 1.4.2; 2.2
FNSICIND401A 5.2.2
O. Which method of GST reporting would you have recommended that Mount Gravatt SportsWorld use — the cash basis or the accrual basis? Why?
Answer: The method would be Baslink reporting that I would recommend. FNSBKPG401A 1.3.1; 1.3.4; 1.4.2
FNSICIND401A 5.2.2
Section 2.2: Carry out research to identify compliance requirements and support material
A. How can the use of commercial software packages assist bookkeepers to maintain compliance with relevant legislation?
Answer: With packages such as MYOB, they are always updating their software to comply with the changes in the ATO legislations. To comply it is necessary to register with MYOB for their updates. FNSBKPG401A 2.2.4
B. Determine the framework for bookkeeping activities
To demonstrate your ability to research and identify the legislative and industry requirements for carrying out bookkeeping activities, access and print out – PAGE ONE ONLY – the following information. Please also complete the table by pasting in the URL from which you obtained the information. FNSBKPG401A 2.1; 2.2.1; 3.1.2
FNSICIND401A 1.3.2; 2.1.2; 2.1.3; 2.1.4; 2.1.5; 5.2.3; 5.3.1; 5.3.2; 5.3.3
Requirement URL How does it affect bookkeepers? (50-100 words)
S 251L of the Income Tax Assessment Act 1936 in relation to bookkeepers producing BAS Statements http://www.austbook.net/index.php?page=ExistingBASLawsSection251L
‘Important information for bookkeepers providing BAS services’ from the ATO website http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00244739.htm
‘Guidelines for working under the direction of a registered tax agent’ from the ATO website
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/68591.htm
The Ten National Privacy Principles, from the Privacy Act 1988
http://www.privacy.gov.au/materials/types/infosheets/view/6541
National Institute of Accountants professional development requirements
www.nia.org.au/development
Can’t get information from the NIA unless you are a member.
The Australian Association of Professional Bookkeepers (AAPB) recommendations on the types of insurance bookkeepers should have http://www.aapb.org.au/content/Public/Home.aspx
Grounds on which discrimination is prohibited, as per Section 7 and 8 of the Anti Discrimination Act 1991 (Qld)
http://www.legislation.qld.gov.au/legisltn/current/a/antidiscrima91.pdf
To demonstrate your ability to research and identify relevant publications and commercial software packages, which can assist in the carrying out of bookkeeping activities, access and print out – PAGE ONE ONLY- the following information. Please also complete the table by pasting in the URL from which you obtained the information.
Resource URL
The latest AAPB (Australian Association of Professional Bookkeepers) Media Release (can’t find on the web site)
‘Accounting Technician’ – the official newsletter of the Association of Accounting Technicians (Australia) (need to be a member)
National Institute of Accountants student newsletter (need to be a member)
‘Bookkeeping essentials’ from the ATO website http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/66099.htm
www.ato.gov.au/taxprofessionals
Institute of Certified Bookkeepers (ICB) Newsletter http://www.icb.org.au/Newsletters/ICB%20Newsletter
MYOB support notes file:///C:/myob18ED/Help/searchhelp.htm?zoom_query=support+notes
myobaustralia.custhelp.com
Quicken support knowledge browser http://home.quicken.com.au/Pages/HomePage.aspx
home.quicken.com.au
‘Bookkeeper resources’ on the ICB website http://www.icb.org.au/Resources
Section 2.3: Set up and maintain appropriate systems to meet compliance requirements
A. List three (3) reasons why it is a good idea for contract bookkeepers providing BAS services to have Policies and Procedures in place?
Answer:
• So if your are ever on holiday or off sick, someone can step into your shoes
• So that procedures can be followed by the letter at the end of every quarter
• Your client can be comforted knowing that proper policies and procedures are in place, this makes you look more professional. FNSBKPG401A 3.1.1
The following guidelines are reprinted from the ATO web site. Please read carefully and then action the final assignment that follows (after 8 pages) …
Guidelines for ‘working under the direction of a registered tax agent’
Overview
The purpose of this paper is to provide guidance for bookkeepers who provide business activity statement (BAS) services on how to comply with the requirements of paragraph 251L(6)(b) of the Income Tax Assessment Act 1936 (ITAA 1936).
The paper sets out what arrangements are required to be in place to satisfy the Tax Office’s position on what it means to be ‘working under the direction of a registered tax agent’ and then provides guidance on how to comply. Additionally, the paper recommends other measures the registered tax agent and bookkeeper should implement to maximise protection of all parties, including clients.
To whom does this apply?
The requirements and recommendations apply to bookkeepers providing BAS services for a fee and the registered tax agents under whose direction they are working. It does not apply to employees of a registered tax agent who must be under the tax agent’s supervision and control.
The requirements do not apply to bookkeepers who are not providing, or holding out as providing, any BAS services beyond entering transactions and processing data used in preparing a BAS.
Summary of Tax Office view
Requirement
In order for a bookkeeper to be ‘working under the direction of a registered tax agent’ the registered tax agent must have a risk-based quality assurance process in place to review the BAS services provided by the bookkeeper for accuracy and completeness, and be satisfied with the standard of BAS services provided.
Guidelines
The paper provides guidelines for developing a robust risk-based quality assurance process that would meet the requirements of the legislation. The guidelines are not prescriptive and no one factor is generally conclusive in determining whether a suitable process is in place. The facts and circumstances must be considered on a case-by-case basis.
Whilst not a legislative requirement, we strongly recommend (for the protection of all parties, including clients) that the bookkeeper and the registered tax agent document and maintain copies of their arrangement as to:
• the clients the agreement relates to
• the period it covers, and
• the details of the agreed risk-based quality assurance process.
We also strongly recommend that the agreement documents client privacy and liability considerations and that both parties consider appropriate professional indemnity insurance. The Commissioner of Taxation cannot determine liability in the event of error.
Summary of quality assurance roles and responsibilities
A tax agent:
• must be assured that the bookkeeper’s work is of a satisfactory standard
• where the work is unsatisfactory, should ensure that the bookkeeper
o is made aware of the deficiency, and
o is educated as to what the correct treatment is
• should review the quality assurance process to determine if any changes are required.
A bookkeeper:
• should have the knowledge and skills appropriate to the level of direction provided by the tax agent, and maintain their knowledge and skills
• should have available all necessary client documentation to verify the workings from which any BAS service was provided, and
• once advised of any unsatisfactory work, should identify and correct all instances in other BASs they have prepared and undertake further learning as necessary.
Principles of quality assurance
The quality assurance process between the bookkeeper and the tax agent must satisfy the tax agent that the work performed by the bookkeeper is of a satisfactory standard.
Key principles of a quality assurance process are:
Principle 1 Competence: assurance/evidence/demonstration that the bookkeeper has the knowledge and skills to prepare the BAS.
Principle 2 Checking: a risk-based sample of the bookkeeper’s BAS work is checked by the tax agent.
Principle 3 Feedback: corrective action and feedback is provided where the work is not accurate or complete.
The tax agent should incorporate these principles in the development of the quality assurance procedures for the bookkeeper working under their direction.
Risks in forming an opinion of reputation and competency
When designing the quality assurance process the tax agent must consider the risks involved when forming an opinion of a bookkeeper’s reputation and competency. This is a function of three factors:
• inherent risk and materiality
• control risk, and
• detection risk.
To reduce the overall risk of forming an incorrect opinion, the tax agent can decrease one or more of the contributory risk factors or, alternatively, a given level of risk can be achieved by adjusting the individual risk factors.
For example, with an experienced bookkeeper with recognised accounting qualifications (lesser inherent risk), using comprehensive checklists and sophisticated software (lesser control risk), the tax agent could plan for a higher level of detection risk (smaller proportion of documents/transactions checked) and still have a reasonable basis for their opinion. However, if one of the bookkeeper’s clients had highly complex affairs (higher inherent risk), the tax agent may need to check a greater proportion of this class of documents/transactions.
Principle 1: Competence
This principle includes information on appropriate knowledge and skills and evidence of knowledge.
Appropriate knowledge and skills
To complete a BAS accurately and completely, a bookkeeper must have the appropriate knowledge and skills. This may include:
• knowledge of the tax laws relating to BAS provisions and the Tax Office rulings that support those laws, and an appreciation of their practical application in the commercial and business environment
• knowledge of relevant Tax Office administrative policies and procedures regarding the lodgment of a BAS
• knowledge of the relevant procedures and practices on how to complete a BAS from a client’s source accounting records, and
• knowledge of software packages used by their clients, and experience in their use.
Evidence of knowledge
To demonstrate that they have the knowledge and skills appropriate to complete a BAS accurately, a bookkeeper may provide evidence including:
• attainment of a recognised industry benchmark qualification or standard or membership of a professional bookkeeper association
• their previous work experience, or other demonstrated competence
• comprehensive procedures that guide a bookkeeper through all areas of the BAS preparation – relevant checklists and reconciliations could form part of the documented procedures supporting the bookkeeper
• support from the tax agent or other qualified providers in relation to BAS preparation to assist in the resolution of specific issues, and
• maintaining up-to-date information and knowledge on new developments relating to BAS services and the subsequent regular updating of relevant procedures and documents used by the bookkeeper.
Principle 2: Checking by the registered tax agent
This principle includes information on the intent of the legislature, forming a reasonable opinion, risks, substantiation procedures to be undertaken and timing.
Intent of the legislature
The intent of the legislature in enabling bookkeepers to provide a BAS service was to ease the burden of tax reform on tax agents. It may be implied that the expectation of the legislature was that a tax agent providing direction to a BAS service provider would not be overly weighed down by this responsibility.
The fact that bookkeepers do not have to be employees of a tax agent to provide BAS services supports the notion that the supervision and control requirements were contemplated as being something less than that required for employees of the tax agent. However, the tax agent must undertake sufficient review activities to be reasonably assured that the clients of the bookkeeper are protected from malpractice and incompetence.
Forming a reasonable opinion
By addressing the risks of forming an incorrect opinion in planning their quality assurance strategies, the tax agent should be able to form a reasonable opinion of the bookkeeper’s work without the need to review 100% of the work.
Risks
The risks to be considered when designing a quality assurance process include:
• inherent risk and materiality
• control risk, and
• detection risk.
Inherent risk and materiality
The first factor includes the bookkeeper’s level of experience and knowledge and/or the types of clients and their transactions covered under the agreement. For example, there is a higher inherent risk in a less experienced bookkeeper providing BAS services to a large, complex client.
Factors that may be considered under inherent risk/materiality include the:
• experience and qualifications of the bookkeeper
• complexity of the bookkeeper’s client base/transactions entered into, and
• size of clients’ transactions and the relative weight of those transactions in the bookkeeper’s work.
Control risk
Control risk is a function of the effectiveness of the bookkeeper’s internal control structure, policies and procedures. Effective internal controls reduce control risk, whilst ineffective internal controls increase control risk.
Factors that may be considered under control risk include:
• demonstrated use of appropriate checklists
• maintenance of detailed working papers demonstrating how the completed BAS was generated from the client’s source accounting records
• use of appropriate research processes – that is, how does the bookkeeper research issues when they are uncertain of the correct treatment, and
• demonstration of effectiveness of controls – that is, the accuracy and completeness of work previously reviewed.
Detection risk
Detection risk is the risk that issues will not be identified. It is a function of the effectiveness of procedures and of their application by the auditor. Unlike inherent and control risk, the actual level of detection risk can be changed by varying the nature, timing and extent of the substantiation procedures performed.
Factors that may be considered under detection risk include:
• sampling – the tax agent must ensure that the sample checked is representative of the whole of the bookkeeper’s work, and
• investigation of the original client documentation to verify the workings for the document that was lodged with the Commissioner.
Some substantiation procedures must be undertaken
It is not appropriate to conclude that inherent and control risks are so low that it is not necessary to perform any substantiation procedures for all of the bookkeeper’s work.
Timing
Effective quality assurance of work requires that work is checked within a reasonable timeframe. It is preferable that reviews are performed prior to the lodgment of a BAS rather than after. However, it will be up to the tax agent to determine the appropriate timing of the checking of a bookkeeper’s work.
An agent may determine, based on the accuracy and completeness of work previously reviewed, that a post issue review is appropriate. For example, where the agent prepares the income tax return of a client and reviews the BASs prepared by the bookkeeper as part of the return preparation process.
Principle 3: Corrective action and feedback is provided
Where a review of a bookkeeper’s work identifies a lack of accuracy and/or completeness, the tax agent must act to ensure that the bookkeeper:
• is made aware of the deficiency, and
• is educated as to what the correct treatment is.
Bookkeeper’s responsibility to correct similar errors
Where a deficiency is identified, it would generally be the bookkeeper’s responsibility to identify and correct all instances where the mistake or omission occurred, including other BASs they have prepared. They should also undertake any further learning required to address their understanding of the issues involved.
Review of risk-based quality assurance
The tax agent would also be expected to review the existing quality assurance process for the bookkeeper to determine what, if any, changes are required. This may include changes to:
• the work checked – for example, increasing the sample size or a greater proportion of pre-lodgment reviews, and
• the quality assurance processes to correct any identified deficiencies which contributed to the mistake or omission.
Voluntary disclosures
In the event of errors being identified in lodged documents, both parties are reminded that voluntary disclosures of tax shortfall amounts will generally result in significant reductions of penalties for the taxpayer – see Law Administration Practice Statement PS LA 2004/5 Administration of shortfall penalties under the new tax system
Appendix 1 – Discussion: why we are providing this guideline
Tax Office research and consultation with the industry has identified the need to clarify the Tax Office view on when a bookkeeper will be considered to be ‘working under the direction of a registered tax agent’ in the provision of BAS services.
The Tax Office undertook to:
• state its view of the legislative requirements
• develop principles and guidelines to assist the parties in meeting the requirements to ensure complying bookkeepers received the protection of subsection 251L(6) of the ITAA 1936 from subsection 251L(1) of the ITAA 1936, and
• provide guidance to both parties as to liability implications under section 251M of the ITAA 1936.
How to use the guidelines
The paper provides guidelines for developing a robust risk-based quality assurance process that would meet the requirements of the legislation.
The guidelines are not prescriptive and no one factor is generally conclusive in determining whether a suitable process is in place. The facts and circumstances must be considered on a case-by-case basis.
The guidelines will help the parties self-assess whether they have an arrangement which is likely to be considered compliant with paragraph 251L(6)(b) of the ITAA 1936 and provide guidance around the practical implementation of the requirements of the paragraph.
Background to the subsection 251L(6) amendment
The introduction of the new tax system was expected to create a demand for tax agent services by small business for the preparation and lodgment of BASs. To address concerns in the tax practitioner industry about the ability of tax agents to meet this demand, amendments were made to the ITAA 1936 to allow certain people, other than registered tax agents, to provide BAS services on behalf of taxpayers. This included members of a recognised professional association, or bookkeepers working under the direction of registered tax agents.
Enabling bookkeepers to provide a BAS service was intended to ease the burden of tax reform on registered tax agents. It may be inferred that the expectation of the legislature was that tax agent/s providing direction to a BAS provider would not be overly weighed down by this responsibility.
The fact that bookkeepers do not have to be either employees of a registered tax agent or under their supervision and control (per section 251N of the ITAA 1936) in order to provide BAS services, supports the view that the ‘working under the direction of’ requirements were contemplated as being something less than that required for employees or for those under supervision and control.
ATO’s view
In order for a bookkeeper to be ‘working under the direction of a registered tax agent’ the registered tax agent must have a risk-based quality assurance process in place to review the BAS services provided by the bookkeeper for accuracy and completeness, and be satisfied with the standard of BAS services provided.
Whilst not a legislative requirement, we strongly recommend (for the protection of all parties, including clients) that the bookkeeper and the registered tax agent document and maintain copies of their agreement as to:
• the clients the agreement relates to
• the period it covers, and
• the details of the agreed risk-based quality assurance process.
This would provide prima facie evidence that the bookkeeper was working under the direction of the tax agent.
We also strongly recommend that the agreement document client privacy and liability considerations and that both parties consider appropriate professional indemnity insurance.
The level of detail in the agreement is up to the registered tax agent and the bookkeeper under the terms of their commercial agreement.
How this meets the legislative requirement
A risk-based quality assurance process does not require the registered tax agent to review all of the bookkeeper’s work. Appropriate risk-based sampling should ensure that the tax agent can obtain reasonable assurance as to the accuracy and completeness of the bookkeeper’s work. The tax agent must then be reasonably satisfied as to the reputation and competency of the bookkeeper as a result of their assurance process.
Assistance in designing a risk-based quality assurance process
The assurance process required by the tax agent as to the accuracy and completeness of the bookkeeper’s work is a matter for the agreement between the tax agent and the bookkeeper. The guidelines list factors that may assist the tax agent and bookkeeper when developing a robust assurance process.
Attribution of liability between the bookkeeper and tax agent
The attribution of any liability between the tax agent and the BAS preparer would be a matter for a court to determine and would be dependent on the facts of each particular case.
Commissioner not a party
The Commissioner of Taxation has no legislative sanction to regulate the legal rights and responsibilities between the client and service provider, and is not a party to any contract for service between those parties.
Why document the agreement?
For these reasons, in order to protect the interests of the taxpayer, the bookkeeper and the tax agent, the Tax Office strongly recommends that the bookkeeper and tax agent maintain a written record of their agreement. This would provide prima facie evidence that the bookkeeper was working under the direction of the tax agent as well as assisting in clarifying responsibility between the tax agent and the BAS preparer.
Other considerations
Both parties should consider their privacy obligations with respect to tax file numbers under the Privacy Act 1988. Additionally, the Tax Office strongly recommends that both the tax agent and the bookkeeper consider professional indemnity insurance.
Appendix 2 – Legislative basis: Only registered tax agents can provide tax agent services
Under subsection 251L(1) of the ITAA 1936, a person must be a registered tax agent to be able to charge or receive a fee for the provision of tax agent services on behalf of a taxpayer. This applies to a range of taxation laws as defined in section 251A of the ITAA 1936 – that is, all laws administered by the Commissioner other than excise, customs and sales tax laws.
What are tax agent services?
• Preparing or lodging, on behalf of a taxpayer, a document about the taxpayer’s liabilities under a taxation law – for example, returns.
• Giving advice about a taxation law, on behalf of a taxpayer.
• Preparing or lodging, on behalf of a taxpayer, objections under Part IVC of the Taxation Administration Act 1953, and applying for reviews or instituting appeals against objection decisions.
• Transacting any business with the Commissioner or other person exercising powers or performing functions under a taxation law on behalf of a taxpayer.
Certain persons allowed to provide BAS services
Subsection 251L(6) of the ITAA 1936 allows certain persons to provide BAS services.
These certain persons are:
• members of a recognised professional association, excluding student and retired members
• bookkeepers who are working under the direction of a registered tax agent
• entities that provide payroll services to employers (but only in relation to PAYG withholding amounts), and
• licensed customs brokers (but only in relation to the application of an indirect tax law to imports and exports).
What are BAS services?
Subsection 251L(7) of the ITAA 1936 defines BAS services as:
• preparing or lodging an approved form about a taxpayer’s liabilities, obligations or entitlements under a BAS provision
• giving advice about the taxpayer’s obligations under a BAS provision, and
• transacting any business with the Commissioner on behalf of a taxpayer in relation to their obligations under a BAS provision.
No evidential burden
Under subsection 251L(10) of the ITAA 1936 a defendant does not bear an evidential burden in relation to a matter specified in subsection 251L(6) of the ITAA 1936.
Section 13.3 of the Criminal Code Act 1995 defines the evidential burden as the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
This means, where a prosecution is brought against a bookkeeper for a breach of subsection 251L(1) of the ITAA 1936 – that is, for charging a fee for a tax agent service – they would not be required to provide evidence that they were acting under the exception of subsection 251L(6) of the ITAA 1936, but rather the prosecutor would need to show beyond reasonable doubt that they were not.
Liability for negligence
Under subsection 251M(1) of the ITAA 1936 if, through the negligence of a registered tax agent, or of a person exempted under section 251L of the ITAA 1936, a taxpayer becomes liable to pay a fine, other penalty or the general interest charge under a provision of the ITAA 1936, the registered tax agent, or the person, as the case may be, shall be liable to pay to the taxpayer the amount of that fine or other penalty, additional tax or general interest charge, and that amount may be sued for and recovered by the taxpayer in any court of competent jurisdiction.
Appendix 3 – Meaning: ‘Working under the direction of’ not defined
The words in the phrase ‘working under the direction of’ are not defined in the ITAA 1936. The ordinary meaning of the phrase could be taken to cover a range of working relationships, including that of a direct supervisory relationship between a bookkeeper and the registered tax agent. However, the Tax Office view is that this would be unduly restrictive.
If the ordinary meaning of this phrase is unclear in the context of the overall structure and purpose of the ITAA 1936, the Acts Interpretation Act 1901 (AIA) section 15AB permits recourse to extrinsic materials including the explanatory memorandum to the relevant Act.
What the explanatory memorandum states
Bookkeepers do not have to be employees of a registered tax agent to provide BAS services. Working under the direction of a registered tax agent would require the tax agent to have procedures and systems in place to ensure that the work undertaken by the bookkeeper is reviewed for accuracy and completeness’ (emphasis added).
Meaning of the explanatory memorandum
Thus, for the bookkeeper to claim the protection of paragraph 251L(6)(b) of the ITAA 1936, the tax agent/s under whose direction they are working must, as per the explanatory memorandum, have a process in place which:
• is procedural and systematic
• ensures that the work undertaken by the bookkeeper is reviewed, and
• provides the registered tax agent with an assessment of the accuracy and completeness of the bookkeeper’s work covered by their arrangement.
The purpose of the Act
Section 15AA of the AIA says that a construction that promotes the purpose or object underlying the Act (whether expressly stated in the act or not) shall be preferred to a construction that would not promote that purpose or object.
The legislature’s intention has been stated by the courts as ‘protecting the community against the prospect of malpractice or incompetence of one kind or another on the part of unregistered persons against whom there may be no adequate redress’.
Application of the purpose to paragraph 251L(6)(b)
Amendments to this section in 2000 extended the assurance about reputation and competency to persons providing BAS services. Therefore, the tax agent must be assured that the bookkeeper working under the tax agent’s direction is providing BAS services of a satisfactory standard.
Risk-based quality assurance process
To obtain an assessment of the accuracy and completeness of the bookkeeper’s work, and to reasonably draw from that assessment an assurance that the bookkeeper’s reputation and competence is sufficient to protect the community against malpractice or incompetence, the tax agent must consider the risks involved in the bookkeeper’s work when designing the quality assurance processes. That is, a robust risk-based quality assurance process needs to be implemented.
Appendix 4 – Agreement
Although the legislation states that the person claiming the protection of subsection 251L(6) of the ITAA 1936 does not bear an evidentiary burden, the bookkeeper and the tax agent should consider what evidence of their intentions and understanding of their arrangement should be documented in order to protect themselves and their clients’ interests.
This is particularly relevant to the bookkeeper who will be relying on paragraph 251L(6)(b) of the ITAA 1936 for protection in the event of any prosecution.
The agreement may also assist the parties in determining liability considerations under section 251M of the ITAA 1936. The Tax Office would not be a party to any action under section 251M of the ITAA 1936.
Tax Office recommendations
The Tax Office strongly recommends that the arrangement between the bookkeeper and the tax agent:
• be documented
• be kept on file by both the tax agent and the bookkeeper
• include/indicate which clients the agreement relates to and the period it covers
• includes the details of the agreed quality assurance process, and
• considers privacy and liability obligations and expectations.
Sharing a client is not an agreement
Where a tax agent and a bookkeeper merely share a client (that is, the bookkeeper provides BAS services and the tax agent provides other tax agent services, but there is no agreement that the bookkeeper is working under the tax agent’s direction), paragraph 251L(6)(b) of the ITAA 1936 has not been satisfied. In these circumstances, the tax agent does not have any assurance obligations and the bookkeeper cannot claim to be working under the direction of that tax agent.
Appendix 5 – Privacy
Bookkeepers and the tax agents under whose direction they are working need to consider the requirements of both the private sector and tax file number provisions of the Privacy Act 1988. This act is administered by the Office of the Privacy Commissioner.
Protecting tax file number information
A bookkeeper or tax agent who is authorised to hold an individual’s tax file number must comply with the tax file number guidelines issued by the Privacy Commissioner under section 18 of the Privacy Act 1988. The tax file number guidelines contained in schedule 2 of the Act provide rules with regard to the collection, use and storage of tax file number information.
Private sector obligations
The private sector provisions apply to organisations, including corporations and unincorporated associations, with an annual turnover of more than $3 million. These provisions also apply to all health service providers, regardless of turnover, and some small businesses with an annual turnover of $3 million or less.
The private sector provisions of the Privacy Act focus around 10 National Privacy Principles (NPPs) which set out how private sector organisations should collect, use, secure and disclose personal information. The Federal Privacy Commissioner has written Guidelines to the National Privacy Principles to assist organisations to meet their obligations when handling personal information of clients.
Last Modified: Monday, 6 February 2006
Copyright
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B. Establish a quality system
As outlined in the ATO publication ‘Guidelines for ‘working under the direction of a registered tax agent’ it is a requirement for contract bookkeepers who provide BAS services to have a Policies and Procedures Manual for their business.
Compile a Policies and Procedures Manual for a contract bookkeeper who provides BAS services. The contents of this manual must include, but are not limited to:
1. A Privacy Policy that complies with the Privacy Act and the ten National Privacy Principles
2. An Ethics Policy that complies with the proposed Code of Professional Conduct (s604–10 of the draft Tax Agent Services Bill)
3. A Professional Development Policy that utilises the courses offered on the AAT web site
4. A Policy or procedure related to obtaining and maintaining relevant insurance cover
5. A procedure for preparing Business Activity Statements that complies with the requirements of s251 of the Income Tax Assessment Act 1936
6. A procedure for complying with relevant parts of the Income Tax Assessment Act, including allowable deductions.
7. A procedure for gathering feedback as input to reviewing and adapting the quality system
8. A procedure for identifying, applying and maintaining an up-to-date knowledge of legislation and industry requirements, including use of the Legislation Register you have already created. FNSBKPG401A 1.5.2; 1.7.2; 3.1.3; 3.1.4; 3.1.5; 3.1.6; 3.1.7; 3.1.8; 3.1.9; 3.1.10
FNSICIND401A 2.1.6; 4.5.1; 5.1.1; 5.1.3;
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1. 07/07/2009 P.13 amended PE04 to PE05 re 1260 21/10/08
2. 31/10/2009 Q1.4 changed to email addresses for all campuses; list added to page 3; boarder added; footer adjusted
3. 20/10/2010 Page 3, replaced the email listing, re CEO email
SUBMISSION COVER SHEET
Please provide a cover sheet with each item of material that you submit for assessment. Make a copy of this form. Complete the addressing details below and the submission details on the next page for each submission that you make.
Competency Group Number & Part FNS40207 Group Three Part One
Competency Name Bookkeeping Policies and Practices
Student Number 2347
Student Name Elsa Jane Crawford
Postal Address 19 Penhurst Court Thornlie WA 6108
Telephone 08 9459 4837
Email Address [email protected]
STUDENT DECLARATION: I declare that:
• no part of this work that I am submitting has been copied from another person’s work except where acknowledgement has been made in the text or work, and
• no part of this work that I am submitting has been written by another person except where such collaboration has been authorised by my tutor.
Signed: Date:
NB: The Institute may exercise the right not to assess the submitted material if this declaration is not properly signed and dated. If the declaration above is found to be false no grading will be awarded for the work in this submission.
The Institute accepts no responsibility or liability whatsoever for lost, stolen, or misplaced student submissions. It is the students responsibility to keep a secure copy of all work submitted for assessment as part of this unit or group
SOLUTION
1. A Privacy Policy that complies with the Privacy Act and the Eleven National Privacy Principles.
The BAS Service provider must ensure that his/her activities are in compliance with Privacy Act and 11 National Privacy Principles. In this matter he/she should refer to “The eleven Information Privacy Principles as extracted from Section 14 of the Privacy Act 1988 (Cth)”. (www.privacy.gov.au)
The privacy policy with reference to privacy act and principles can be as follows:
i) BAS Service provider will not resort to any form of unlawful means to access personal information.
ii) The client should know the purpose of information collection by the service provider.
iii) Service provider will not disclose personal information to public except when such disclosure is used for offsetting serious threat to any individual; the disclosure is legally required or is done for enforcement of law and for public protection. A record of note of such disclosure will be included in the relevant personal information records by the service provider.
iv) Disclosure of personal information by service provider will only be done when the purpose of collecting information requires disclosure and is lawful.
v) If personal information is to be disclosed by service provider to the public, then the client must be informed by service provider prior to collection of information. If in any such circumstances this is not possible, then the client should be informed as soon as after the collection of the information.
vi) The prior consent of the client will be sought regarding disclosure of personal information to particular entities and through particular medium.
vii) The service provider will not collect any irrelevant information with respect to the purpose and will take care of not unnecessarily intruding upon the clients’ personal matters.
viii) The service provider will ensure complete security of personal information records. He/She will undertake to store securely such information and ensure all safeguards against loss, theft , unauthorized use or misuse of such information.
ix) If third parties are to be provided with personal information of clients for the purpose of rendering BAS services, then the security of information with these third parties must be fully ensured.
x) The BAS service provider, regarding each information record should be able to specify to authorized government officers, regarding:
• Nature of information
• Purpose of collection of information
• The information of clients regarding whom information records are being maintained
• The time duration or period, for which information record will be maintained.
• The persons who are permitted to access the information records.
• The extent of access permissible for each record and for each authorized person.
• The conditions under which access to information records can be permitted to such persons.
• The procedure for accessing personal records by authorized persons.
xi) The BAS service provider will submit a copy of personal records to the commissioner yearly.
xii) The BAS service provider will ensure that information collected by him/her is precise, not misleading, up to date and relevant. All updations to information provided by clients will be suitably recorded.
xiii) The BAS service provider will not use the information provided by clients for any purposes other than the purpose of collecting the information, except in cases when such use is approved by the client, is required for offsetting a serious threat to the client, is required for enforcing law with respect to public protection.
xiv) Whenever information is used by BAS service provider other than the purpose for which it was provided by the client, the service provider will note such use and include the note with the relevant personal records.
2. An Ethics Policy that complies with the proposed Code of Professional Conduct
Ans. The BAS Service provider should maintain a professional conduct. For doing so he/she can refer to s604–10 of the draft Tax Agent Services Bill regarding proposed Code of Professional Conduct.( http://archive.treasury.gov.au). As per the code, for maintaining professional conduct a BAS service provider should:
Act with honesty and integrity.
Abide by the taxation laws of the Government.
Not undertake any unlawful activities or should not resort to unlawful means.
Act in the best interest of the client.
Avoid conflict of interests amongst clients as well as between self and clients as far as possible.
In the event of conflict of interests, seek consent of the concerned clients.
Not disclose personal information of clients’ to third parties without their consent, or unless required by law.
Possess the requisite knowledge and skills to provide BAS services.
With respect to taxation, ascertain the true state of affairs of clients.
Ensure correct application of taxation laws with reference to the clients’ position.
Advise the clients regarding their rights and responsibilities.
Supervise and control the functioning of tax agents working for the service provider.
Account to clients pertaining to any money/property received from them on trust.
3. A Professional Development Policy that utilizes the courses offered on the AAT web site
Ans.
BAS service providers must make consistent efforts to update their knowledge and skills. There are many professional courses and training modules offered by AAT. From their website the details regarding these courses can be accessed.AAT is continuously conducting various events that contribute to skill improvement, BAS service providers should keep track of such events and attend them for enhancing their professional skills.
The policy development policy of BAS service providers should include:
Equipping freshers and trainees with the basic and advanced knowledge and skills.
Consistently upgrading skills and knowledge of staff.
Appointing internal or external training providers for designing suitable training modules for each staff category, imparting the training, getting feedback regarding training effectiveness, incorporating changes in training module on the basis of feedback.
Track events taking place relating to the profession.
Identify events that are of importance.
Attend the selected events.
Award certificates to staff who successfully complete their training.
Encourage and promote enhancement of knowledge and skills.
Since the staff of a BAS service provider cannot leave their work and go to study courses, the training must be conducted along with the job. Various private training providers are associated with AAT( http://aat.nowlearning.com.au) that provide training regarding various aspects related to the profession. The major training providers are Intellitrain, Chishol Institute of TAFE, Open Colleges, The Open Training and Education Network (OTEN) and Navitas.
4. A Policy or procedure related to obtaining and maintaining relevant insurance cover (www.bizcover.com.au)
With effect July 1, 2011, The Tax Practitioners Board (Australian Government) has made it mandatory for all BAS service providers to maintain Professional Indemnity Insurance Cover. As per the board BAS service providers must have PII cover that covers for incidents causing civil liabilities. Such liabilities can arise due to error or omission on the part of the BAS service provider. The amount of cover is decided by the Government and is based on the potential losses a client can incur due to errors of the BAS service provider.
Hence all BAS service providers must seek adequate insurance from recognized insurance providers. Explanatory Paper TPB (EP) 03/2010 on Professional Indemnity Insurance by Tax Practitioner Board (Australian Government) can provide the necessary information pertaining to framing of such insurance policy.
Getting an adequate PII cover:
Adequacy of PII cover, depend upon:
The turnover of the BAS service provider.
The number and classes of clients.
The types of services provided by BAS service providers.
The number of staff with the BAS service provider.
The extent of risk.
A procedure regarding obtaining and maintaining relevant insurance cover by BAS would entail the following:
Getting insurance advice from authorized insurance providers regarding PII.
Determining the insurance cover amount.
Applying for exemptions if any.
Getting the insurance cover of the amount required
Maintaining a copy of the insurance agreement, bills and receipts.
Submission of relevant documents related to PII to the Government
Checking for insurance related claims
Applying for reimbursement or exemption in cases of insurance related claims
Renewing the insurance agreement periodically
Policy Features of PII would entail the following:
Amount of cover: with respect to turnover, business and risk circumstances, number and type of clients, type of services, no. of staff etc.
Scope of cover: with respect to civil liabilities arising out of errors and omissions.
Persons covered: with respect to agents, directors, partners, employees and contractors.
Exclusions: with respect to who are excluded and who cannot be excluded from the cover.
Excess Deductibles: the service provider should check that the cover amount does not exceed the stipulated amount. For eg.,the board has specified in the case of agents whose sole business comprise tax reporting and BAS services, “then excess for their PII cover should not exceed 4% of their turnover, unless 4% of that turnover is less than $1,000, in which case the excess cannot exceed $1,000”.
Insurance Provider: as per the board firms can seek PII insurance cover from:
Insurance firms approved by APRA.
In case of non approved insurance firm, insurance firms should have permit to provide insurance services in Australia as per 1973 Insurance Act.
In case of non authorized foreign insurance firm, rendering of services in compliance with Part 2 of Insurance Regulations 2002.
5. A procedure for preparing Business Activity Statements that complies with the requirements of s251 of the Income Tax Assessment Act 1936.
Ans.
Business Activity Statements are used to report and pay tax obligations by business entities. The BAS are made as per the specific situation and options of the clients.
The following table summarizes the procedure for Preparing Business Activity Statements, and is based on the details provided in the ATO website (http://www.ato.gov.au/businesses/pathway)
i. Compilation and lodging of BAS statements
ii. Filing of taxes:
Goods and Services Tax (GST)
Pay AS You Go Income tax installment (PAYG)
Pay as you go (PAYG) tax withheld
Fringe benefits tax (FBT) installment
Fringe benefits tax (FBT) installment
Luxury car tax (LCT)
Wine equalization tax (WET)
Fuel tax credits
Installment notices for GST and PAYG installments
iii. Choosing the appropriate rates and forms.
iv. Determining the frequency of filing the various taxes.
v. Recording the Unique Documentation Identification Number for each Business Activity Statement.
vi. Getting feedback pertaining to any errors in reporting and correcting the errors.
BAS statements can be lodged with ATO on paper, by mail, by phone or through business portals.
6. A procedure for complying with relevant parts of the Income Tax Assessment Act, including allowable deductions.
General Guidelines (Australian Government))
With reference to Income tax Assessment Act, the following need compliance for BAS service providers:
The BAS agent should be registered with the Government.
In order to get registered the BAS agent should fulfill several criteria
The criteria include qualifications and skill criteria, i.e BAS agents should possess the requisite qualifications, knowledge and skills.
BAS service provider should be above eighteen years of age.
Receiving notification regarding acceptance/rejection of registration application by tax office.
If registration is accepted then arranging for the required professional indemnity insurance cover.
If registration accepted, then the code of conduct needs to be complied with.
Refrain from using services of unregistered third parties as this is penalized.
Refraining from putting signatures on statements prepared by other third parties who are neither nominees nor subordinates, as this is a penalizable offence.
Regarding Not assessable income: (www.austlii.edu.au)
As per the income tax act not assessable income includes:
• If the income is not classified as statutory or ordinary income.
• If the income is classified as exempt income.
• If the income is classified under non assessable non exempt income.
Regarding Allowable Deductions
A deduction is allowed in assessable income in computing income tax if there has been loss in disposal or redemption of traditional securities. This deduction is allowed for the year in which the disposal or redemption is made. These however do not apply to segregated exempt assets of a life insurance company or segregated current pension assets (superannuation), or when the traditional security is converted into ordinary shares of a company, which is neither the issuer nor an entity related with the issuer of the traditional security.
7. A procedure for gathering feedback as input to reviewing and adapting the quality system
Ans
A BAS service agent who works under the guidance of a registered tax agent must work as per the principles of quality assurance. The tax agent would need to ensure that the service provided by the BAS agent is of quality .For providing feedback regarding the work of a BAS service agent, a tax agent would need to assess the following:
• The qualifications, knowledge, skills and experience of the BAS service provider
• A sample of the work done by the BAS service provider.
Based on the above assessment the tax agent would provide his /her feedback, and ask the BAS service provider to correct existing deficiencies in work, if any. The tax agent may also provide the necessary guidance to the BAS service provider in order to enable him/her to make the required corrections.
It is necessary for the book keeper to maintain proper records of his/her proof of qualification, experience, work and relevant information of clients for whom the BAS service provider is preparing BAS statements.
Once a book keeper is made aware of the deficiencies in work, it will call for:
• The book keeper or BAS service agent to correct similar errors in his/her present as well as previous work, including those BAS statements which have been prepared or submitted.
• The book keeper to identify deficiencies in his/her own knowledge and learn more regarding the matters in which errors have been reported.
• The tax agent to review his quality assurance process, like increasing the sample size of work checked, assessing shortfalls in documentation etc.
• Informing the client(s), in case errors are detected in lodged documents, and advising the client to voluntary disclose shortfalls in taxable amounts, so as to attract lesser penalties.
8.A procedure for identifying, applying and maintaining an up-to-date knowledge of legislation and industry requirements, including use of the Legislation Register you have already created.
Ans.
A BAS service provider needs to have updated information regarding all aspects of his/her work, which would include updated knowledge of relevant law and industries. For this purpose a BAS agent can make a list of all sources from which he/she can gather updated information, the ATO website is a rich source of information for almost all information requirements, other sources of information are also useful, such as:
Australian government rules, regulations and guidelines regarding BAS agents http://www.ato.gov.au/taxprofessionals/pathway.aspx?sid=42&pc=001/005/074
Income tax Act related to tax agents http://law.ato.gov.au/atolaw/view.htm?docid=DXT/TD2004D22/NAT/ATO/00001&PiT=99991231235958
Tax Rulings http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20072007/NAT/ATO/00001
Types of taxes, frequency of filing returns, calculators, rates and forms. http://www.ato.gov.au/businesses/pathway.aspx?pc=001/003/099
Exempted income
Correction of Error http://www.ato.gov.au/businesses/pathway.aspx?sid=42&pc=001/001/045&mfp=001/003&mnu=50450#001_001_045
Professional Code of Conduct http://archive.treasury.gov.au/documents/1218/PDF/070507_Exposure_draft_Bill.pdf
Professional indemnity insurance and types http://www.aapb.org.au/content/Public/Home.aspx
Privacy Principles http://www.privacy.gov.au/materials/types/infosheets/view/6541
Record Keeping Essentials http://www.ato.gov.au/businesses/pathway.aspx?sid=42&pc=001/003/003&mfp=001/003&mnu=43662#001_003_003
Type of industries/ business http://www.ato.gov.au/businesses/entry.aspx?menuid=44258
News and updates for BASs http://www.ato.gov.au/taxprofessionals/entry.aspx?menuid=43650
Changes in tax laws http://www.ato.gov.au/content/00236295.htm
Tax laws amendment http://www.ato.gov.au/content/00311905.htm
Income tax assessment Act-provisions http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/
Several commercial software packages are available that can help BAS agents to keep a track of changes in legislation. One such commercial software package is MYOB.MYOB continuously regulates its packages and for receiving the updates the BAS agent needs to register with MYOB.
The BAS agent can make a list of other resources which will help him/her to keep abreast of latest information related to his/her field of work, some of the major resources are:
• National Institute of Accounts.( www.nia.org.au/)
• The Australian Association of Professional Book keepers. (http://www.aapb.org.au)
• Association of Accounting Technicians
• Institute of Certified Bookkeepers (http://www.icb.org.au/)
Online Software packages, such as:
• MYOB
• Quicken Support
Reference:
www.privacy.gov.au. Information Sheet (Public Sector) 1 – Information Privacy Principles under the Privacy Act 1988.Available at http://www.privacy.gov.au/materials/types/infosheets/view/6541.[Accessed 22 April 2012].
http://archive.treasury.gov.au., 2008.Tax Agent Services Bill-The Code of Professional Conduct.[Online] Available at http://archive.treasury.gov.au/documents/1218/PDF/070507_Exposure_draft_Bill.pdf
[Accessed 22 April 2012].
http://aat.nowlearning.com.au,2012.Bookkeeping Courses .[Online] Available at http://aat.nowlearning.com.au/bookkeeping-courses [Accessed 22 April 2012].
Australian Government, 2012.Professional Indemnity Insurance Explanatory Paper.[Online] Available at: http://www.bizcover.com.au/wp-content/uploads/2011/04/Prof-Indemnity-Insurance-TPB-Explanatory-Paper.pdf [Accessed 23 April 2012].
www.ato.gov.au, 2012.BSA. .[Online] Available at: http://www.ato.gov.au/businesses/pathway.aspx?pc=001/003/099 [Accessed 22 April 2012].
www.austlii.edu.au, 2012.Allowable Deductions. .[Online] Available at : http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/s70b.html [Accessed 24 April 2012].
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