Send to its members a copy of its financial

 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 effects
2.1 Area affected
From the document of charity-care case study, the areas that affected by
compliance system can be listed below:
1) risk management policy
2) Sexual harassment policy
3) Credit card policy
4) Expense reimbursement
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5) Financial handling policy
6) Expenses policy
7) Equal employment opportunity policy
8) Work health and safety policy
9) Audit report
There are many policies are documented, but there still remains some training and
motivational issues in relation to implementing them appropriately. The compliance
system that established will help these policies to improve. In the audit report, there are
many issues that should be included in the audit report, in facts, those issues have not
been addressed in the audit report.
In a word, the issue are presented in the following areas:
1) Warehouse
2) Retail store
3) Counselling centres
4) Head office
These areas have been found many misconducts, some operations those areas have
done are not following the organisation principles.
2.2 Risks
Compliance risk is defined as the risk of legal sanctions, material financial loss, or loss to
reputation the Bank may suffer as a result of its failure to comply with laws, its own
regulations, code of conduct, and standards of best/good practice.
Compliance risk is sometimes also referred to as integrity risk, because a Bank’s
reputation is closely connected with its adherence to principles of integrity and fair
dealing. In this case, there is financial issues that caused by misconducts. Compliance
risk management is part of the collective governance, risk management and compliance
(GRC) discipline. The three fields frequently overlap in the areas of incident
management, internal auditing, operational risk assessment, and compliance with
regulations such as the Sarbanes-Oxley Act. Penalties for compliance violations include
payments for damages, fines and voided contracts, which can lead to the organization's
loss of reputation and business opportunities, as well as the devaluation of its
franchises.
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2.3 Penalties
A breach occurs when the law is not upheld; when:
1) an action is taken that places a person at risk of injury, illness or death
2) steps are not taken to avoid a risky situation from occurring
3) there is a failure to comply with regulatory requirements.
There are three categories of offences for failing to comply with a health and safety duty
under the WHS Act or an electrical safety duty under the ES Act, depending on the
degree of seriousness or liability involved.