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Send to its members a copy of its financial statements and reports, unless the member has a standing arrangement with the company not to receive them. Hold an annual general meeting once every calendar year within five months of the end of its financial year. 2.Compliance effects2.1 Area affectedFrom the document of charity-care case study, the areas that affected bycompliance system can be listed below:1)risk management policy 2)Sexual harassment policy 3)Credit card policy4)Expense reimbursement9
5)Financial handling policy6)Expenses policy7)Equal employment opportunity policy 8)Work health and safety policy9)Audit reportThere are many policies are documented, but there still remains some training andmotivational issues in relation to implementing them appropriately. The compliancesystem that established will help these policies to improve. In the audit report, there aremany issues that should be included in the audit report, in facts, those issues have notbeen addressed in the audit report. In a word, the issue are presented in the following areas: 1)Warehouse 2)Retail store3)Counselling centres4)Head officeThese areas have been found many misconducts, some operations those areas havedone are not following the organisation principles. 2.2 RisksCompliance risk is defined as the risk of legal sanctions, material financial loss, or loss toreputation the Bank may suffer as a result of its failure to comply with laws, its ownregulations, code of conduct, and standards of best/good practice.Compliance risk is sometimes also referred to as integrity risk, because a Bank’sreputation is closely connected with its adherence to principles of integrity and fairdealing. In this case, there is financial issues that caused by misconducts. Compliancerisk management is part of the collective governance, risk management and compliance(GRC) discipline. The three fields frequently overlap in the areas of incidentmanagement, internal auditing, operational risk assessment, and compliance withregulations such as the Sarbanes-Oxley Act. Penalties for compliance violations includepayments for damages, fines and voided contracts, which can lead to the organization'sloss of reputation and business opportunities, as well as the devaluation of itsfranchises.10
2.3 PenaltiesA breach occurs when the law is not upheld; when:1)an action is taken that places a person at risk of injury, illness or death2)steps are not taken to avoid a risky situation from occurring3)there is a failure to comply with regulatory requirements.There are three categories of offences for failing to comply with a health and safety dutyunder the WHS Act or an electrical safety duty under the ES Act, depending on thedegree of seriousness or liability involved.