Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term1 2016

Course Code: ACCT5388C

Course Title: Audit and report on financial systems and records

School: 650T Vocational Business Education

Campus: City Campus

Program: C6148 - Advanced Diploma of Accounting

Course Contact: Ben Sethia

Course Contact Phone: +61 3 9925 5982

Course Contact Email: ben.sethia@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Course Coordinator     Meetu Aggarwal

E-mail                             meetu.aggarwal@rmit.edu.au

Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

None

Course Description

This unit describes the skills and knowledge required to supervise an audit of financial systems and prepare the appropriate reports, including assessing options, identifying information sources, determining audit strategies, monitoring progress, reviewing data, verifying financial statements and determining appropriate reporting formats.

It applies to experienced individuals who use specialised knowledge and systematic approaches to analyse and evaluate financial information against specified criteria and compliance requirements.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC602 Audit and report on financial systems and records

Element:

1. Assess options

Performance Criteria:

1.1 Identify statutory requirements from assessment of terms of reference, and client objectives and obligations
1.2 Review and analyse client activities and procedures to establish familiarity with systems and guide selection of appropriate audit methodologies
1.3 Develop financial audit methodologies to identify significant features of audit and establish criteria for conducting audit in accordance with professional auditing standards
 

Element:

2. Identify information sources

Performance Criteria:

2.1 Identify audit financial data sources from evaluation of organisation’s information systems
2.2 Create audit lines of enquiry to support audit objectives and reduce audit risk to acceptable level

Element:

3. Determine audit strategies

Performance Criteria:

3.1 Establish client financial business characteristics from analysis of general economy, industry and client’s provided information
3.2 Assess client’s inherent financial risk through value chain risk analysis
3.3 Identify internal control procedures for financial transactions through discussion with client and established professional standards
3.4 Ensure audit methodologies use established sampling and selection techniques in manner consistent with internal control procedures and substantive testing

Element:

4. Schedule resources and timelines and monitor progress

Performance Criteria:

4.1 Establish timeframes and allocate personnel to functions and tasks based on audit lines of enquiry
4.2 Review resource use regularly, and develop and monitor intermittent reports with resource allocation and timeframes adjusted through discussion and agreement with client and in accordance with professional accounting standards

Element:

5. Review data and verify statements

Performance Criteria:

5.1 Identify significant strengths and weaknesses in controls and rank in accordance to audit objectives
5.2 Obtain and evaluate evidence on financial systems and controls under review using established testing procedures and in accordance with criteria identified in audit methodology
5.3 Test management assertions to achieve audit objectives
5.4 Gather sufficient appropriate audit evidence as basis for expert opinion
5.5 Verify financial statements as materially misstated or correct

Element:

6. Determine reporting formats

Performance Criteria:

6.1 Identify and document financial operational functions, services and systems in accordance with standard formats
6.2 Ensure format is consistent with documentation requirements of auditor and professional auditing standards
6.3 Formulate and provide financial audit opinions, including recommendations, to client in established and acceptable format


Learning Outcomes



Details of Learning Activities

Primarily you will be learning face to face, with an online course site (Blackboard) used to disseminate materials, including videos, notes and activities and to provide access to on-line assessments & assessment submission points. Students will be required to read the course text before coming to class. The class is structured so that the reading is completed out of class.

In-class work will account for 32 of the total nominal hours of 60 hours for the course and in-class work will include a range of self-paced and collaborative learning activities such as class discussion, completion and review of set exercises, a team presentation on one chapter of the text book, work on a simulated/real workplace environment assignment based on an organisation with a presentation and audit report to be presented, and three (3) online tests.  Flexed students (only) will participate in online collaborative sessions planned for weeks 10 and 12, so please ensure that you have Java installed on your computer and if required, visit https://java.com/en/download/index.jsp and a handset and microphone. Please note that no Flexed classes will be delivered in this semester.

The hours of self-directed/self-paced learning by full-time students (28 of the 60 total nominal hours) will be taken up with reading, research and the completion of the assignment outside scheduled class time. Please note that the format of the class will be a two-hour class per week over 16 weeks.

It is expected that all students participate and contribute in all scheduled learning activities.
 


Teaching Schedule

The nominal hours associated with this course are a guide only and represent the total teaching time and student effort required to successfully complete the course.  This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.  Please refer to Learning Activities (above) with reference to instructions regarding work to be completed outside teaching hours.

Induction Session for all students (Full-Time and Flexed)

Prior to training commencement a program level induction session will be conducted that comprises the following:

• Program overview and requirements
• MyRMIT/Blackboard
• Overview of assessment requirements
• Pre-Training Review including:
o Recognition of Prior Learning and Credit Transfers
o Assessment of current skills and knowledge
• Competency/Grading Criteria
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements
• Resubmission policy
• Where to get support
• Student responsibilities.

TEACHING SCHEDULE (FULL TIME STUDENTS) 

Week

Week

Commencing

Topics

Class Work

Assessment

108/02/2016

Introduction to the Course including:
• Course requirements
• Course support documents
• Course Blackboard access
• Accuracy of enrolment
• Assessment requirements/Cover Sheets
• Reminder re Plagiarism
• Reminder re Appeals
• Extensions/Resubmissions
• Feedback in this course
• Reminder re submission requirements
• Getting help.


Pre-Training Review (if applicable)
• Includes skills analysis and Recognition of Prior Learning and Credit Transfers
 

Chapter 1 - Introduction and overview of Audit and Assurance

 

Discuss Course and all Assessment requirements

Review Questions

1.11-1.13, 1.15, 1.17-1.18

Students allocated to team and topic for week/chapter presentation

Students allocated to team for case study audit committee report and presentation

Globalisation - introduction and activity

215/02/2016Chapter 2 - Ethics, legal liability and client acceptance

Review Questions

2.11-2.13, 2.15, 2.17-2.18

322/02/2016Chapter 3 - Risk Assessment 1Review Questions

3.11, 3.13-3.15, 3.20

Team Presentation 1 - Chapter 3

429/02/2016Online Test 1 - Topics 1 and 2

 Online Test 1

507/03/2016

Chapter 4 - Risk Assessment 2

 

Chapter 5 - Audit Evidence

Review Questions

4.11-4.13, 4.16, 4.19

Review Questions

5.11-5.13, 5.15, 5.18

Team Presentation 2 - Chapter 4

Team Presentation 3 - Chapter 5

615/03/2016

Chapter 6 - Gaining an understanding of the client’s system of internal controls

Case study made available on Blackboard - to discuss in detail with class

Review Questions

6.11-6.12, 6.14, 6.16-6.17, 6.20

Team Presentation 4 - Chapter 6

721/03/2016

Chapter 7 - Sampling and overview of the risk response phase of an audit

Discussion of case study - relevance to chapter(s)

 Review Questions

7.11-7.13, 7.16-7.17, 7.19, 7.22

Team Presentation 5 - Chapter 7

804/04/2016

 

Chapter 8 - Execution of the audit - testing of controls

Discussion of case study - relevance to chapter(s)

Review Questions

8.12-8.14, 8.16-8.18, 8.21

Team Presentation 6 - Chapter 8

911/04/2016Online Test 2 - Topics 3-7
Online Test 2
1018/04/2016

Chapter 9 - Execution of the audit - performing substantive procedures

Discussion of case study - relevance to chapter(s)

Pitstop 1

Review Questions

9.12-9.16

Team Presentation 7 - Chapter 9

1126/04/2016

 

Chapter 10 - Substantive tesing and balance sheet accounts

Discussion of case study - relevance to chapter(s)

Review Questions

10.11, 10.13-10.15, 10.17

Team Presentation 8 - Chapter 10

1202/05/2016

Chapter 11 - Substantive tesing and income statement accounts

Discussion of case study - relevance to chapter(s)

Pitstop 2

Review Questions

11.11-11.14, 11.16

Team Presentation 9 - Chapter 11

1309/05/2016

Chapter 12 - Completing and reporting on the audit

Discussion of case study - relevance to chapter(s)


 

Review Questions

12.11-12.13, 12.16

Team Presentation 10 - Chapter 12

1416/05/2016Online Test 3 - Topics 8-12

Online Test 3

Pitstop 3
 

1523/05/2016Presentation and submission of Audit Report to CommitteeCase Study Audit Report Presentation and 10-minute Presentation by teams
1630/05/2016Re-submissions/Re-submission

Re-submissions/Re-submission

Please note:

1. The mid-semester break is from 24/03/2016-01/04/2016. Classes will resume on 4/04/2016.

2. The teaching schedule is subject to change at the teacher’s discretion.  Notification of changes can be made directly in class by the teacher, emailed to each student or via an assessment placed on the blackboard.

3. If in the event there are not enough teams to cover all thirteen chapter presentations, then the teacher will cover any excess chapters themselves.

 

TEACHING SCHEDULE (FLEXED STUDENTS) - PLEASE NOTE THAT THIS COURSE WILL NOT BE OFFERED VIA FLEXED THIS SEMESTER

WeekWeek CommencingTopics

Class Work

Assessment

  

Introduction to the Course including:
• Course requirements
• Course support documents
• Course Blackboard access
• Accuracy of enrolment
• Assessment requirements/Cover Sheets
• Reminder re Plagiarism
• Reminder re Appeals
• Extensions/Resubmissions
• Feedback in this course
• Reminder re submission requirements
• Getting help.


Pre-Training Review (if applicable)
• Includes skills analysis and Recognition of Prior Learning and Credit Transfers


Chapter 1 - Introduction and overview of Audit and Assurance

 

Chapter 2 - Ethics, legal liability and client acceptance

 

 

Discuss Course and all Assessment requirements

Students allocated to team and topic for week/chapter presentation

Students allocated to team for case study audit committee report and presentation

Globalisation - introduction and activity

 

 

 

Review Questions

1.11-1.13, 1.15, 1.17-1.18

 Review Questions

2.11-2.13, 2.15, 2.17-2.1

Topics and exercises not completed in week 1 to be undertaken by students before their next class

  

Chapter 3 - Risk Assessment 1

 

 

 

 

Online Test 1

 

Review Questions

3.11, 3.13-3.15, 3.20


Team Presentation 1

Team Presentation 2

 

Online Test 1 - Topics 1 and 2 - to be completed online during week 4

Topics and exercises not completed in week 1 to be undertaken by students before their next class
 

  Chapter 4 - Risk Assessment 2

 

Chapter 5 - Audit Evidence

 

 

Review Questions

4.11-4.13, 4.16, 4.19

 Review Questions

5.11-5.13, 5.15, 5.18

 Team Presentation 3

Team Presentation 4

Topics and exercises not completed in week 1 to be undertaken by students before their next class

  

Chapter 6 - Gaining an understanding of the client’s system of internal controls

Chapter 7 - Sampling and overview of the risk response phase of an audit

Case study made available on Blackboard - to discuss in detail with class

Discussion of case study - relevance to chapter(s)

 

Review Questions

6.11-6.12, 6.14, 6.16-6.17, 6.20

Review Questions

7.11-7.13, 7.16-7.17, 7.19, 7.22

Team Presentation 5

 Team Presentation 6

Topics and exercises not completed in week 1 to be undertaken by students before their next class
 

  

Chapter 8 - Execution of the audit - testing of controls

Chapter 9 - Execution of the audit - performing substantive procedures

Online Test 2

Discussion of case study - relevance to chapter(s)

 Review Questions

8.12-8.14, 8.16-8.18, 8.21

Review Questions

9.12-9.16

Online Test 2 - Topics 3-7 to be completed by end of week 9

 Team presentations only if required

Topics and exercises not completed in week 1 to be undertaken by students before their next class

Pitstop 1

  

Chapter 10 - Substantive testing and balance sheet accounts

Chapter 11 - Substantive testing and income statement accounts

Discussion of case study - relevance to chapter(s)

  Review Questions

10.11, 10.13-10.15, 10.17

Review Questions

11.11-11.14, 11.16

Team presentations only if required
 

Topics and exercises not completed in week 1 to be undertaken by students before their next class

Pitstop 2
 

  

Chapter 12 - Completing and reporting on the audit

Discussion of case study - relevance to chapter(s)

Review Questions

12.11-12.13, 12.16
 

Team presentations only if required

Topics and exercises not completed in week 1 to be undertaken by students before their next class

Pitstop 3

 

  

Presentation and submission of Audit Report to Committee

Online Test 3

Case Study Audit Report Presentation and 10-minute Presentation by teams

Online Test 3 - Topics 8-12 Online Test 3 to be completed by week 15

  Re-submissions/Re-submissionRe-submissions/Re-submission


Please note:

1. The teaching schedule is subject to change at the teacher’s discretion. Notification of changes can be made directly in class by the teacher, emailed to each student or via an assessment placed on the blackboard.

2. If in the event there are not enough teams to cover all thirteen chapter presentations, then the teacher will cover any excess chapters themselves.
 


Learning Resources

Prescribed Texts

Auditing, A practical Approach.  2nd Edition. Moroney, Campbell & Hamilton.  Wiley publications.

9781118377901


References


Other Resources

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Overview of Assessment

In order to achieve competency in this unit, you must provide:

 

Performance Evidence

Evidence of the ability to:

  • assess client risk and determine financial audit strategy and methodology
  • schedule resources and timelines, and monitor progress
  • review data, verify financial statements and determine reporting formats that comply with:
  • organisational financial internal control policy and procedures
  • relevant legislative requirements and professional standards

 

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • identify and explain the key features of current financial legislation and statutory requirements relating to internal control, taxable transactions and reporting requirements
  • identify and explain the key features of current, relevant professional accounting standards
  • outline the duties and responsibilities of auditors
  • discuss professional standards and ethical considerations for management and handling of files and records
  • identify and explain the key principles of:
    • auditing
    • internal control
  • compare and contrast testing procedures and methods of enquiry

 

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field  of work and include access to:

  • common office equipment, technology, software and consumables.
  • an integrated financial software system and data

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.

 

Feedback

Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course. 


Assessment Tasks

 

Overview

Assessment will be undertaken in 3 assessments and all students are required to successfully complete these to be deemed competent in this course. To be deemed competent, students must demonstrate an understanding of all elements of a competency. Assessment methods have been designed to measure achievement of each competency in a flexible manner over multiple tasks. Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure that the relevant competency standards are met.

All competency based assessments for this course must be completed to achieve competency, a CA. The grade applied will only be awarded if a CA has been achieved in all compulsory assessment tasks. Grades for each assessment after competency has been achieved are from lowest to highest, CA-ENT (enterprise), CA-HGH (High) and CA-EXC (excellent).

If a student has been marked NYC (Not Yet Competent) in any of the assessment tasks, then competency, a CA has not been obtained. If a CA is achieved on re-assessment then only a competent – enterprise (CA-ENT) will be granted for that assessment.

Reassessments will only be granted to students who were either unsuccessful in the first attempt or have an approved special consideration application.

To be deemed competent in this unit the participant will be required to demonstrate all indicators which are shown in the Assessment Record Cover Sheet for each assessment and the Graded Assessment Grading Sheet. The indicators described above are detailed further in this document together with the three assessments.

 

Assessment Task/Titles: (there should be no more than 3 assessment tasks)

The three assessments are:

1. Team Presentation:

All students will be divided into teams of 2-3 and be allocated a topic from the “Auditing - A Practical Approach”, 2nd edition textbook. The teams will research the topic and present the key learning’s to the class by way of powerpoint presentation. The assessment is competency based and a CA (competent) must be achieved for this assessment. The assessment will be graded (once competency is achieved) according to the grading policy for assessments those being, CA-ENT (enterprise), CA-HGH (High) or CA-EXC (excellent).

2. Three (3) Online Tests:

Three on-line tests will be scheduled during the semester. These tests will consist of MCQ (multiple-choice questions) and True/False questions taken from “Auditing - A Practical Approach”, 2nd edition textbook. The students will be allowed multiple attempts to attain competency. These three tests are competency based and a CA (competent) must be achieved for each assessment. The assessments will be graded (once competency is achieved) according to the grading policy for assessments those being, CA-ENT (enterprise), CA-HGH (High) or CA-EXC (excellent).

3. Assignment – Workplace Audit Simulation:

All students will be divided in the teams they were are part of in the prerequisite to this course, “Implement and maintain internal control procedures”. You will be given a MYOB file for a company called “Bookkeeping Makes Cents Pty. Ltd.” From where each team will be required to conduct a detailed audit on. Each team will prepare answers to specified questions regarding the simulated audit and submit this as part of a comprehensive and detailed report to the audit committee of “Bookkeeping Makes Cents Pty. Ltd.” indicating the audit observations. Each team will also present a ten-minute powerpoint presentation in-class based around this report but as a “snap-shot” only.

Please note that with regard to the case study, each group will be required to demonstrate to their teacher their progress throughout the semester, which are referred to as Pitstops. These three Pitstops have been scheduled for weeks 10, 12 and 14 for the full-time students and weeks 9, 11 and 13 for the Flexed students.  In these Pitstops, each student as part of a team is required to attend, demonstrate and evidence what progress and work on the case study has been completed to that point. Failure to attend or not be at the required stage as per the teacher’s requirement for each Pitstop will result in each student and/or the group not being awarded a higher mark for the case study or even a fail.

This assessment is competency based and a CA (competent) must be achieved for this assessment. The assessment will be graded (once competency is achieved) according to the grading policy for assessments those being, CA-ENT (enterprise), CA-HGH (High) or CA-EXC (excellent).

Your teacher will discuss the assessment matrix for each assessment with the class at the beginning of the semester and prior to the assessment taking place.

 


Assessment Matrix

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Other Information

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