1. Legal framework Look at the legal compliance and framework a business is subject to.

2. Legal compliance All financial and payroll information & records are subject to legal and regulatory requirements It is important to ensure all requirements are met, it helps the organisation Having a positive reputation and track record of financial integrity and legal compliance enables the organisation attract and retain investors, staff, customers and suppliers

3. Legal compliance To avoid and minimise penalties from non- compliance – imprisonment -Costs to bring records to compliance -Loss of shareholders, market price

4. Ensure compliance Make all employees aware of the importance of compliance Brief employees of their roles and responsibilities under the law Complete up-date briefings where laws change Base organisational policies and procedures on legal requirements Monitor – put in place controls and checks

5. Legal framework Organisation work within a framework of laws dealing with specific issues Compliance of the laws is important because: – Protect people from loss and suffering – Minimum acceptable standard of management – Possible financial & operational penalties from non-compliance – Damage the reputation – Burden of costs & future scrutiny

6. Main source of the laws are: – UK Statues (Act of Parliament) – EU Directives Every organisational member has a responsibility to comply, ensure and monitor the areas of responsibility – Discrimination within work – Data protection – Health & safety – Theft & fraud – criminal act – Financial reports and records - HMRC

7. Examples of regulations within an organisation ( could be tested in the assessments ) Areas of the law How the organisation does business Examples Contract law – What constitutes a valid contract – How rights & obligations can be enforced Data protection – What personal data can be held legally – The use of personal data – Protection of the individual Intellectual property – Protecting the rights of the product – design, written text, copying of work

8. continuation Areas of the law Treatment of employees in an organisation Examples Employment protection – Protect from unfair dismissal – Redundancy practices Health & safety – Protection of staff and visitors to a site Working conditions, pay and benefits – Minimum pay, working hours Diversity & equal opportunity – Protection against harassment and discrimination at work

9. continuation Areas of Law Responsibility to shareholders & stakeholders Examples Company law & corporate governance – Duties of directors of the company – Keeping accounts & registers – Preparing and auditing financial statements – Preparing and circulating annual reports & accounts

10. Continuation Areas of the law Responsibility to the state Examples Collection of and payment of taxes – VAT to HMRC – NI & PAYE to HMRC Compilation and provision of reports & returns

11. Additional controls Regulatory Bodies – Oversee the activities of business in varying areas Accounting standards board (ASB) Health & Safety Executive Codes of practice – Set of guidelines/standards agreed by representatives or advisory bodies of the business area International Financial Reporting Standards (IFRS) – reporting of financial performance International Standards on Auditing – verification of reports Professional bodies – Develop and enforce standards of competence, ethical conduct and professionalism