Part A (Research component)
Ethics and governance
Identifying the stakeholders in this situation
Stakeholders are those who may be affected by or influence an effort. They may also include people who have
a strong interest in the effort for academic, philosophical, or political reasons, even though they and their
families, friends, and associates are not directly affected by it. A stakeholder in a business refers to anyone,
including a person, group, organization, government, or any other entity with a direct or indirect interest in its
operations, action, and outcomes. They can be external or internal based on their relationship with the company
that serves their interest. Stakeholders can affect the company and its outcome both positively and negatively.
Stakeholders can either affect or be affected by the company’s decisions. The primary stakeholders in a typical
corporation, business or an organization are its investors, employees, customers, and suppliers. In this case of
BHP, the stakeholders are the board directors, employees, shareholders, government officials which also
included shady governments like those involved in corruption from foreign country. According to the SEC, BHP
invited 176 government officials to attend the Olympics at company expense, including 98 who worked for stateowned enterprises that were customers or suppliers which are also the stakeholders for the BHP as it influenced
the outcome of the program BHP invited them to. At any given time or during every business operation each
stakeholder group will have an aim they are seeking to fulfill, and this aim might put them on conflict with
another stakeholder group which might have a competing game. For instance, the goal of BHP Billiton was to
invest capital in the business through the stakeholders as well and get profits from the business. Although they
may have other aims such as growth of business or survival their main motive is always going to be making
profit. Likewise for the employees, their main objectives are job security and job satisfaction as well as a
satisfactory level of pay as they have given in their time and effort to make a business successful. Shareholders
can basically be divided into two groups: -internal shareholders: stakeholders which are found within the
business and are often members of the business itself or work for it for example employee – external shareholders:
stakeholders that are found outside the business The employees that work for the company, the board directors,
the mangers are all the list of internal stakeholders whereas the government from foreign country that were
associated with BHP Billiton and were proved as a stakeholder by SEC fall into the group of external
shareholders as they directly are noy involved inside the business. Managing stakeholders – keeping them
involved and supportive – can be made easier by stakeholder analysis, a method of determining their levels of
interest in and influence over the effort. Once you have that information, you can then decide on the appropriate
approach for each individual and group. Depending on your goals for the effort, you may either focus on those
with the most interest and influence, or on those who are most affected by the effort.
Determining the ethical issues
Ethics can be described as a person’s number of characteristics, ways of behaving, and correct or incorrect
actions. Personal attitudes can readily alter ethics, that can have an impression on the human’s surrounds and the
locations that they represent. It could be a business, a residence, an institution, a research center, or any other
location (Ferrell, Fraedrich, & Ferrell, 2011). BHP Billiton is one of the biggest natural asset firms in the world.
The business was launched in 2001 and is situated in Australia. The company’s current goal is to find, cultivate,
manage, and export Australia’s mineral wealth. BHP Billiton is a big manufacturer of steel production, coal,
alumina, copper, nickel, silver, and uranium, among some other products. It also buys petroleum, as well as
many other resources (BHP Billiton, 2014). Due to the complicated natural ecosystem, firms in the twenty-first
millennium confront significant hurdles in terms of corporate ethics. The most significant challenge that a
business currently face is work engagement, which would be strongly affected by actual working practices. BHP
Billiton has a well-defined set of norms of behavior that illuminate the firm’s corporate management style. When
operating alone, with coworkers, and also in teamwork, honesty, cohesion, and dependability are greatly
regarded. When workers are presented with safeguarding difficulties, the firm gives when far. To safeguard
personnel form failure, substance usage is restricted during business time. Consequently, professional
annoyances were unacceptable, and violations of these kind of regulations lead to severe job concerns at BHP
Billiton. The corporation has had to deal with a case of job grounds of discrimination on handicap. A deaf person
did file an impairment civil rights lawsuit over BHP Billiton, alleging that he has been fired due to a deafness.
Even though he wore an earpiece, he remained properly competent and eligible again for post. Although he
passed through the appropriate hiring process and passed every one of the exams without excellent grades, he
got fired just after some few months on the job (Lannin, 2013). This demonstrates BHP Billiton’s flagrant
employment discrimination, which goes against the company’s own corporate culture and norms of conduct.
Racial grounds on incapacity is a very immoral behavior that draws national attention to the problem of justice
between workers and the prevalent poor corporate culture. Although cultivating relationships involving
politicians, such as offering them gifts, asking people to events, and interacting with strong officials, is limited
to a somewhat level to sustain the industry’s mental picture and prevent fraud. It also places a major focus on
sustainable problems as well as the demands of those human settlements in the mining’ vicinity. The industry’s
rules include consideration for the entire ecosystem, the climate, contaminants, and the residents of the nearby
neighborhoods who may be harmed by the business operations (BHP Billiton, 2013a; 2013b). Aside from some
of these limits, BHP Billiton has declined to adapt to environmental problems and has already been challenged
for several environment problems. Because BHP Billiton’s organizational culture doesn’t quite tolerate such
immoral and damaging behaviors, the company must develop and execute environmentally sustainable
initiatives while also monitoring its actions. Furthermore, the corporation is striving to improve its power
infrastructure and illegal dumping operations, as well as setting goals to address essential ecological issues. In
terms of the other issues, BHP Billiton’s excellent company’s structure has allowed organizations to keep its
moral ideals.
Comment on the ethics of bribing
Australia is a league including six state and two self-overseeing domains. The Australian constitution determines
those regions wherein republic has ability to administer and passes on the rest of the state. Corruption and bribery
are largely state matter. Australia is ranked 13 out of 168 in the transparency international rankings in 2015.
Australia operates both state and federal legal system
State and territory regulations arrangements with private area bribery. It condemns both corruptly giving awards
to representatives or specialists, and workers corruptly getting prizes to show favor in their boss or alternately
head’s business. There are additionally other bribery related offences which manages lead of legal administrators
and other people who have commitments due to their general, influential places or easy associations with
different gatherings. Wrongdoings regulation of States and Territories condemn both dynamic and latent
confidential pay off and pay off State and Territory public authorities. Notwithstanding offenses made by
regulation in certain States there is a customary regulation offense of pay off public authorities. This offense was
created over numerous years through court choices, although it doesn’t seem to have been as of late depended
upon.
Australia has areas of strength for an of worldwide, provincial, and homegrown activity to forestall and uncover
degenerate action. Australia is reliably positioned as one of the most un-degenerate countries on the planet in
the Transparency International Corruption Perceptions Index. In Australia, bribing is an unfamiliar authority is
an offense under s 70.2 of the Schedule to the Criminal Code. The offense has the accompanying components:
An advantage incorporates any benefit and isn’t restricted to cash or other property, nor is there any formal
money related edge.
Bribing or attempting to do it will be the serious crime in a country like Australia and must bear the punishment
and other penalties. In Australia, the companies, or individuals that bribe will be executed under Australian laws
and foreign countries. Under Australian law, it is an offense to bribe an unfamiliar public authority regardless of
whether a bribery might be believed to be standard, essential, or expected in the circumstances and regardless of
whether there is true resistance of the bribery. The maximum punishment for the person who bribe is 10 years
of imprisonment and a fine of $1.1million. For the business, the company should bear the maximum penalty of
$11 million. In Nepal this bribery act is unacceptable. The punishment is given with the calculation of the amount
of money, or something received by the officials. Any act done of acceptance of goods and services free of cost
or at a low cost is at risk of imprisonment for a half year to one month and is fined according to the bribe money
he has taken in business. For an individual, there is the imprisonment of three to six months, and all the money
will be seized.
At the federal level, there is no offence of bribery. The criminal code makes it an offence for an individual or
partnership to work with deliberately or wildly, cover or camouflage in their bookkeeping reports an event of
bribery, corruption or misfortune to an individual that was not honestly caused. It is extensively characterized to
accounts reports.
Inappropriate use of power to influence the company:
One decade ago, in 2008 Olympics, Beijing where one major company named BHP Billiton surpass its laws by
calling their officials to attend the Olympics at their own company expenses with very luxury accommodation.
By breaking the Foreign Corrupt Practices Act they know called 170 personals including 98 who worked for
state-owned enterprises who were also one of t6heir customer or suppliers.
According to one article written by Peter Ryan on Thu 21, 2015 The 60 officials who finally agreed to attend
were mainly from Africa and Asia and enjoyed packages worth up to $US16,000 that included luxury hotels,
event tickets and sightseeing tours. The budget which mainly focus to accommodate the government officials
was completely offered to foreign officials as a gift which leads the US Securities and Exchange Commission to
investigate on this case. After the investigation the company found to be guilty after breaking the Foreign Corrupt
Practices Act. Note (FCPA symbolize a law made in the United States that provides provisions to stop
businesspersons from making payments in the form of bribes to the officials of a foreign government to secure
business through such dealing. FCPA was enacted in 1977.) At that time this incident created a high risk of
violating anti-corruption laws on which they were failed to work on, which gave SEC enforcement division more
proof to highlight the case.
Likewise, the main root of this incident came from their internal bodies at where they were not able to function
well within themselves so looking from a different angle there were certain parties who were working for the
company but there were also certain personals who were there just to work for themselves which results on
breaking the unity inside the company. Therefore, there was not proper management of the budget inside the
company so the ones who were working in opposition to the laws and company where the personals enjoying in
Beijing including their customer and relatives. The mining giant later on were fined US$25m ($32m) fine for
breaches of the Foreign Corrupt Practices Act by SEC’S which they accept to settle the case without admitting
or denying the findings.
Eventually, they agreed to upgrade their internal controls and well as they insure to go along with an Australian
Federal Police investigation announced in 2013. In one statement made by Mackenzie he mentioned that their
company has learned from this experience and will be better and stronger in coming years.
After this case we all can make one conclusion that there will be some people who will misuse their power to go
against the law. Such big companies can make such mistakes then there are many companies where these sorts
of incident are happening on daily basis. In many cases the people who work hard and who deserve to get
respected are not being treated well but the ones who make some internal moves by using other people to show
some works are being treated as a important personals. As a global witness organization perspective, we ensure
all to be treated well as well the people who deserve gift for their work need to be provided without any policies.
May be after this case many of the global leading companies have learnt their lesson and I think so in coming
days these sorts of activities will decrease. The company have to bear heavy fine as well as they lose their trust
from their employee as well as other organizations which clearly shows that nobody is grater then the laws. All
the companies need to perform or stay within the boundaries of laws created by different organization.
The charter of BHP’s Risk and Audit Committee are:
i. The Committee will examine the Group’s major accounting policies and practises, as well as
management’s interpretation of accounting standards, for their appropriateness. Any major changes
proposed to the Group’s accounting interpretations shall be considered by the Committee, and if
deemed appropriate, approved.

compliance with applicable accounting standards and regulatory obligations, the CEO and nominees
will create, manage, and assess a variety of standards, processes, and internal controls. On a yearly
basis, the CEO or nominees will present the mechanism for ensuring the integrity of the financial
statements to the Committee for assessment and input.
iv. The system for safeguarding the financial statements’ integrity will be designed in such a way that
the Committee, its individual members, and the Board can maintain their independence while testing
and evaluating the preparation and content of financial statements, as well as making any formal
adoptions required by regulation. The Committee will examine and discuss the procedure and
contents of the Management Representation Letter, as well as management’s preparation of the
relevant declarations in connection with the financial statements.

understandable, and whether it contains the information necessary for shareholders to assess the
Group’s situation, performance, business model, and strategy. Management will submit information
on the system to the Committee and review it with it to ensure that the Annual Report meets these
standards.
vii. The Committee will examine the Group’s major accounting policies and practises, as well as
management’s interpretation of accounting standards, for their appropriateness. Any major changes
proposed to the Group’s accounting interpretations shall be considered by the Committee, and if
deemed appropriate, approved.
viii. The Committee will study and discuss the draught financial statements, as well as other pertinent
information, with management and the external auditor prior to the Board’s deliberation, to support
the Committee’s evaluation of the financial statements’ integrity.
ix. The system for safeguarding the financial statements’ integrity will be designed in such a way that
the Committee, its individual members, and the Board can maintain their independence while testing
and evaluating the preparation and content of financial statements, as well as making any formal
adoptions required by regulation. The Committee will examine and discuss the procedure and
contents of the Management Representation Letter, as well as management’s preparation of the
relevant declarations in connection with the financial statements.
The roles of the committee are:
1. The Risk and Audit Committee (Council)’s is to provide support and advice towards the Governors of
BHP Billiton Ltd & BHP Billiton Plc (Board) on the issues raised in these Terms of Reference. The
performance of the Committee is held accountable to the Board.
2. The Committee’s responsibilities are outlined in these Terms of Reference, and they include assisting the
Board in overseeing the integrity of the Group’s financial statements and Annual Report, the effectiveness
of internal and external audit processes, the Group’s internal control and risk management systems, the
Group’s systems for compliance with relevant legal requirements within the Committee’s area of
responsibility, and the Group’s financial strategy and structure.
3. The Committee primarily serves as an advisory body to the Board of Directors. Except where powers are
clearly laid forth in these Terms of Reference or are otherwise granted by the Corporation, the Committee
does not have the power and authority of the Board in dealing with the subjects on which it advises when
making recommendations.
APES110 Ethical Standards and the Impact on the Accounting Profession
CPAs are finance, accounting, and business professionals with specific qualifications. Holding a CPA title is a
sign of high professional competence. Accounting degrees demonstrate depth, breadth, and quality of accounting
knowledge. CPAs enjoy a high level of respect among employers and members. To use the CPA designation, a
member must:
● Complete a degree or a postgraduate award recognized by CPA Australia
● Complete the CPA Program, including three years of professional experience in finance, accounting, or
business
● Undertake CPD activities each year
● Comply with a strict code of conduct set by CPA Australia.
There is a code of ethics that regulates all the CPAs called APES 110. APES 110 Code of Ethics for Professional
Accountants (including Independence Standards) was issued in December 2010 by APES 110 Code of Ethics
for Professional Accountants (including Independence Standards), this independent body regulates and controls
the accounting profession in Australia since 2006. There are five main fundamentals of APES110: integrity,
objectivity, professional competence and due care, confidentiality, and professional behavior. There have been
few amendments in this code of ethics since the day of its introduction and these all are being done to make the
bookkeepers more accountable and responsible. Under the Corporate act 2001, the AUASB has issued an
auditing standard as a legislative instrument. The code doesn’t subvert any legal or regulatory obligations. Under
the Act, those standards are legally enforceable during audits and reviews. As long as those standards make
reference to applicable ethical requirements, the requirements of APE 110 will be legally enforceable under
Auditing Standard ASA 102 Compliance with Ethical Requirements when Conducting Audits, Reviews, and
Other Assurance Engagements.
The five fundamental principles that guide its member are integrity- It is important, to be honest, and
straightforward in all business and professional relationships. Objectivity means it is important to avoid biases,
conflicts of interest, or undue influence over professional and business judgments. Professional competence and
due care- Professional knowledge and skill required to ensure that a client or employer receives competent
Professional Activities, in accordance with technical and professional standards, as well as current legislation,
should be acquired and maintained and maintain high standards of professionalism and diligence.
Confidentiality- Keeping confidential information acquired through business and professional relationships is a
responsibility. And professional behavior which means It is a member’s responsibility to comply with relevant
laws and regulations and avoid engaging in conduct that may discredit the profession. Members are expected to
follow each of the fundamental principles. In order to ensure compliance with those fundamental principles, a
member must apply the conceptual framework. These fundamental principles provide a basic guideline for all
its members. This is very important to maintain the standard and to hold the concerned authority accountable for
any wrongdoings. There are other institutions that also govern another corporate part of Australia. To ensure the
standard are maintained and to keep the economy boosting there is an important role of other different
independent as well as government institutions.
Another major importance to keep up the good economy and making the market strong that never break is to
have a strong stock market regulator. The BHP Billiton case has not only highlighted the loopholes that different
stakeholders used and made the government impose a stricter regulator. The Australian Securities and
Investments Commission (ASIC) is the regulator of Australia’s markets and financial services. The ASIC ensures
that Australia’s financial markets are fair and transparent. The ASIC is an independent Commonwealth
Government body established by the Australian Securities and Investments Commission Act of 2001 (ASIC
Act).
The Commission has a Board of Directors and members pay particular attention to overseeing the Australian
economy, financial services and charities, and financial services professionals. ASIC’s mission is to build
investor confidence by regulating and improving financial system performance, law enforcement, and the
effective storage and public availability of financial information. ASIC regulates Australian companies, financial
markets, financial services institutions, and professionals that provide insurance, annuities, investments,
deposits, and credit transactions and/or advice. ASIC service centers are located in all major Australian cities.
The need for a new economy for a better world is that we keep everyone aware of the exact situation of the
market. We must come together to ensure that there will be no more any case like BHP Billiton and protect
everyone’s interest.
Part B & C
Business Report and audit
Using Xero software
Sunshine Ltd.
Sydney
Statement of Financial Position
As at 15th july, 2021
Figures in NPR

–
As per our report of even date,
Director Auditor
Sunshine Ltd
Sydney
Profit or Loss
Statement
For the year
ended 15th july,
2021

As per our report of even date,
Director
Auditor

= According to the question, the total amount of asset belonging to Sunshine
Ltd is: $21000 where Non- Current Assets is: $10000 and Current Assets is
$11000.
(B) What is the total amount that Sunshine Ltd owes for liabilities?
=The Sunshine Ltd owes $ 8000 for liabilities.
(C) Using the accounting equation, what is the amount of Owners’ Equity reported on Sunshine
Ltd.’s balance sheet?
= Using the accounting equation, the Owner’s Equity is given below:
Capital + Liabilities = Assets
Owner’s Equity + Net Profit + $ 8000 = $ 21000
or, Owner’s Equity + $ 3000 + $8000 = $ 21000
or, Owner’s Equity = $ 21000 – $11000
Owner’s Equity = $ 10000
(D) How much net profit did Sunshine Ltd have for the year?
=Sunshine Ltd owes $ 3000 net profit for the year.
Recommendations to increase performance by 10% the next year
1. Build an effective team.
2. Investment in Capital Tools.
3. Raise fund from various sources like increment of owner’s equity, loan from various financial institutions.
4. Reduce the costs by 10%. This will increase the net profit of and organization by 10%.
5. Regular monitoring
6. Boost productivity etc.
Reference:
https://www.wallstreetmojo.com/stakeholder/https://ctb.ku.edu/en/table-ofcontents/participation/encouraging-involvement/identify-stakeholders/main
https://www.wowessays.com/free-samples/good-example-of-essay-on-major-ethical-issues-inbhp-billiton/
https://www.theguardian.com/business/2015/may/21/bhp-billiton-fined-us25m-for-gift-trips-tobeijing-olympics-for-foreign-officials
https://www.abc.net.au/news/2015-05-21/bhp-billiton-hit-with-fine-over-corruptionallegations/6486036
APESB [https://apesb.org.au/standards-guidance/apes-110-code-of-ethics/]
APES 110 𝘊𝘰𝘥𝘦 𝘰𝘧 𝘌𝘵𝘩𝘪𝘤𝘴 𝘧𝘰𝘳 𝘗𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘈𝘤𝘤𝘰𝘶𝘯𝘵𝘢𝘯𝘵𝘴
[https://apesb.org.au/uploads/home/02112018000152_APES_110_Restructured_Code_Nov_201
8.pdf]
Index, C. P. (2010). Transparency international.
Armstrong, R. W. (1992). An empirical investigation of international marketing ethics: Problems
encountered by Australian firms. Journal of Business Ethics, 11(3), 161-171.
Index, C. P. (2010). Transparency international.
Latimer, P. (2017). Anti-bribery laws–compliance issues in Australia. Journal of Financial Crime.
Hawkins, V. (2012). The changing face of bribery and corruption laws Legal risks and ways to
mitigate them. Keeping Good Companies, 64(10), 593-598.
Investopedia [Australian Securities and Investments Commission
(ASIC)][https://www.investopedia.com/terms/a/australian-securities-and-investmentscommissionasic.asp#:~:text=The%20Australian%20Securities%20and%20Investments%20Commission%20
(ASIC)%20is%20the%20regulator,markets%20are%20fair%20and%20transparent.]