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Advice about ARC's please
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If a reviewer receives an ARC then they will assume that it is, more or less, the finished article and so will judge it accordingly.
There's no precisely defined etiquette as such and it will also depend on how well the author explains what it is that they're handing out and for what purpose.

As an author, what you can't expect from readers is beta-reading and editing. Those must be done before. Beta-readers expect a second or third draft, and are here to tell the author what works and what doesn't (potential plot holes, characterisation, etc.). ARC readers, on the other hand, expect the novel to be as ready as possible; if it's riddled with grammar/spelling mistakes and reads like an unproofed first draft, it's not an ARC, it's, well, a draft.
The way I understand it, an ARC is a marketing tool: reviewers can read it before the official publishing date, and in turn, post reviews right before or on that date. This way, your novel starts off with a few reviews, which is more appealing to potential readers than nothing. This is why the ARC must be as close to finished as possible.

What I'm mainly confused about is the process after the reader has received the book. Where do the reviews go? To the author? Are they held back until the book is published and posted on the distributors site, or must the book be listed on Goodreads to send out ARC's?

You can ask that reviewers refrain from posting before a certain date, such as "no earlier than 2 weeks before the publishing date." It doesn't ensure that all will comply, but serious, decent reviewers will.
Be also aware that everyone's reviewing policies are different. Some will submit their review to the author first and, in case it's a 1*/2* review, ask the author if s/he still wants it to be made public. Others, like me (yes, I know, I'm an ass), consider that sending ARCs = agreeing to seeing public reviews, so we post our reviews even if they're not too flattering.

If you mail the copies out and say that you don't want the reviews posted on GR/Amazon/review blogs before it's published then by and large they'll abide to them.
You don't have to list the book on GR first, no.
Would anybody be able to talk me through the process of ARC's please, along with the general etiquette and what is expected of the author/reader?
Many thanks