You have been recently employed as an accountant for Motherboards and More Pty Ltd. The CFO has...

Question

You have been recently employed as an accountant for Motherboards and More Pty Ltd. The CFO has tasked you with reviewing the cash collections cycle and providing advice to management regarding the recent 'Ransomware Outbreak' in May 2017. The CFO has provided you with the following: • a narrative providing an overview of the cash collections cycle; • a level 0 data flow diagram depicting the cash collection cycle; and • a recent article regarding the Ransomware Outbreak.
These are all available in Interact resources.
Using the information provided to you by the CFO, you need to prepare a business report to him including the following: 1. A summarised overview of the Cash Collections Cycle, from order to invoicing, for Motherboards and More (this should be no longer than one (1) paragraph. The CFO is already aware of the cycle, but this overview helps bring your report together for other readers] (1 mark) 2. Identification of; a. internal control weaknesses in Motherboards and More Cash Collections Cycle; (2.5 marks) b. the impact these weaknesses could have on the organisation? (2.5 marks) c. specific internal controls which could be implemented by Motherboards and More in the coming weeks to mitigate the risks posed by the internal control weaknesses you have identified. Your CFO does not want theoretical controls suggested. They want practical controls that they can implement within the organisation. (5 marks) (Note: all three (3) parts of question two (2) should be included as a table in your report] 3. A brief overview of the Ransomware attack. (2 marks) 4. A detailed review of appropriate controls which you would recommend be implemented at Motherboards and More to protect the organisation from a potential Ransomware attack similar to the one experienced in the article provided to you by the CFO. These could consist of both application and general controls. In your recommendations, you need to consider which controls are the most appropriate for your client. (5 marks)
The application of appropriate academic writing skills (2 marks). This includes use of appropriate grammar and spelling, application of APA referencing and a report presented in a professional manner.

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David · Accepted Answer

Reforms in Insolvency Laws in Australia 
The Need for reforms 
By the Corporations Act 2001, “‘a person is solvent if, and only if, the person is able 
to pay all the person’s debts, as and when they become due and payable”. The Australian 
Insolvency law does not assess a insolvent organization's more drawn out term prospects. The 
present laws also ignore its competitiveness, resources and goodwill. They are solely aimed 
towards its untimely liquidation. It doesn't take into consideration the likelihood that, through 
some rebuilding or help, the organization could come back to benefit and safeguard the 
interests of creditors. Globally however, insolvency laws aim at restructuring the company 
rather than liquidating it. This is especially observed in the US Insolvency Act. The major 
benefits of such an approach are: 
1. Greater reliability and trust in business organizations which boosts the trust of 
investors and prompts them to make greater investment in companies. This in turn 
boosts the entire economy as a whole and promotes overall development within 
the country 
2. Continuous business and wages for specialists is ensured. The employees are put 
to ease and do not lose their jobs. The employment levels in the economy remain 
stable. 
3.  Protection of aptitudes and experience is ensured. The trademarks and 
relationships remain unaffected. These are intangible assets for a business and are 
built over numerous years of operation. With the help of appropriate insolvency 
laws these assets remain preserved. 
Over the past few years many countries have recognized the need for an effective 
insolvency process to encourage and protect innovation within the country. These countries 
have recognized that aiming to rescue a company rather than shutting it down is a better 
approach and fulfils the interests of all stakeholders of the business. 
The Objectives 
The Insolvency reforms intend to attain the following objectives: 
1. Avoid superfluous expenses and improve proficiency in bankruptcy proceedings  
2. Align the enrollment and disciplinary structures that apply to registered 
practitioners. 
3.  Align the rights and roles of individual and corporate practitioners 
4.  Upgrade correspondence and straightforwardness between various stakeholders 
of the business that is undergoing insolvency. 
5. Enhance the powers accessible to the corporate controller to direct the corporate 
bankruptcy.  
6. Enhance general trust in the demonstrable skill and competency of insolvency 
professionals.
The Process 
In 2015, the federal government launched its Innovation Package . The package 
comprised of various measures for renewing development in Australia. As a major aspect of 
this bundle, various changes have been brought about by the Insolvency Law Reform Bill of 
2015. The bill was passed by the Senate in 2016 as is. The resulting act, “ The Insolvency 
Law Reform Act 2016” is the most notable change to Australia's liquidation and corporate 
bankruptcy laws in the last many years. The Act is a fundamental measure taken by the 
Federal Government as a part of it’s plan of enhancing financial motivations for development 
and entrepreneurialism.  
The Insolvency Law Reform Act 2016 revises the Corporations Act 2001 in many 
ways which will be discussed later in the paper. It also revises the ASIC Act and the 
Bankruptcy Act. It postures critical ramifications for both individual and corporate 
indebtedness experts. The Act is structured in the form of Schedules and aims at regulating 
the insolvency practitioners along with providing greater control to the creditors.
Impact 
The reforms have multiple consequences for the insolvency practitioners involved. 
This includes both corporate and personal practitioners. The reforms aim at attempting to 
align the registration, remuneration and regulation processes. 
The significant changes for Practitioners are discussed.  
Enlistment of Practitioners: The reforms call for a robust alignment between 
enrolments of corporate and individual Insolvency professionals. The corporate experts are 
henceforth prohibited from having inconclusive enlistments. Their registrations are now 
required to be restored at regular intervals. This is similar to the provisions of an individual 
professional.  
An individual may apply for registration as a registered liquidator as: 
a) An external administrator and receiver or  
b) Just a receiver and manager 
The application had to be given in a pre-approved format with a lodgement fee to the 
ASIC. The same is forwarded to the committee in charge of registrations who will 
interview and quiz the individual. Once the requirements are successfully completed, 
the person is registered as liquidator by the ASIC.
Requirements of practitioners: Enlisted practitioners must conform to conditions 
that all registered liquidators need to follow.

You have been recently employed as an accountant for Motherboards and More Pty Ltd. The CFO has tasked you with reviewing the cash collections cycle and providing advice to management regarding the...

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