Course Title: Implement and maintain internal control procedures
Part B: Course Detail
Teaching Period: Term1 2011
Course Code: ACCT5257C
Course Title: Implement and maintain internal control procedures
School: 650T TAFE Business
Campus: City Campus
Program: C5178 - Diploma of Accounting
Course Contact : Claude Marasco
Course Contact Phone: +61 3 9925 1651
Course Contact Email:claudio.marasco@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
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 covers the implementation and maintenance of internal control procedures for corporate governance.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSACCT506B Implement and maintain internal control procedures |
Element: |
1. Review corporate governance requirements . 2. Implement operating procedures. 3. Monitor Policy.
|
Performance Criteria: |
1.1 Corporate governance requirements are identified and analysed to determine application to operations |
Learning Outcomes
1. Review corporate governance requirements.
1.1 Corporate governance requirements are identified and analysed to determine application to operations.
1.2 Clarifications on application of corporate governance requirements are accessed from authoritative and recognised sources.
1.3 Internal control procedures are reviewed and developed reflecting the application of corporate governance requirements to internal operations .
2. Implement operating procedures.
2.1 Financial delegations and accountabilities are maintained and reviewed to ensure consistency and compliance with internal control procedures.
2.2 Required reports are produced, reviewed and distributed within agreed timelines.
2.3 Timetables for the implementation of corporate governance requirements are developed in consultation with stakeholders.
2.4 Internal control procedures are detailed and documented in standardised formats to promote consistency of use.
3. Monitor Policy.
3.1 Applications of corporate governance requirements are developed from published sources or recognised practices.
3.2 Performance indicators are developed and reported on to evaluate compliance with internal control procedures.
3.3 Variations in adoption of corporate governance requirements in operations are identified and evaluated to determine causes.
3.4 Modifications to procedures are developed and implemented to facilitate compliance with internal control procedures.
Details of Learning Activities
Using the textbook, case studies and other materials, students will be progressively introduced to the implementation of corporate governance through the internal control of the accounting system. In-class activities will account for 34 of the 40 nominal hours allocated to this course & will include class discussion & debate, graded in-class assessments/observations & the analysis of case studies. The remaining 6 hours of self-directed learning will be taken up with work on the comprehensive case study outside scheduled class time. Please note that the format of the classes will be a one-hour lecture per week plus a one-hour class per week. The learning activities described above will be covered in these classes and as prescribed above also, the 6 hours of self-directed learning will be undertaken on the case study by students.
The Critical Aspects of Evidence and Knowledge and Skills Requirements for this course of study are as follows:
Critical aspects of evidence:
As specified in the unit of competency, evidence of the following is essential:
1. knowledge of corporate governance requirements;
2. knowledge of organisational financial delegations and accountabilities;
3. ability to review corporate governance requirements;
4. ability to implement operating procedures;
5. ability to monitor policy;
6. knowledge of relevant financial legislation; and
7. knowledge of organisational policies and procedures.
Knowledge and skills:
Skills requirements include:
1. writing skills for preparation of reports and documenting procedures;
2. setting up and maintaining records and files;
3. research skills for assessing application of corporate governance requirements;
4. consulting staff on internal control procedures;
5. administrative procedures for timetabling and scheduling;
6. interpretation of legislation; and
7. information technology skills for set up and use of spreadsheets.
Required knowledge:
Knowledge requirements include:
1. financial legislation (eg taxable transactions, reporting requirements);
2. methods of work practices and routines;
3. principles of internal control and auditing;
4. organisational guidelines and procedures; and
5. ethical considerations for management and handling of files and records (eg confidentiality).
Teaching Schedule
The total number of scheduled hours of teaching, learning and assessment involved in this course will include all planned activities. This may incorporate face-to-face classes, lectures, workshops and seminars; wherever possible workplace visits, online learning and other forms of structured teaching and learning. The total scheduled hours includes the amount of effort required to undertake, evaluate and complete all assessment requirements, including observation of work performance, discussions with supervisors and others providing third party evidence and one on one and group assessment sessions with students.
Weekly Teaching Schedule:
Week | Week Beginning | Performance Criteria/Topics/Assessments | Reading/Assessment |
1 | 7/2/2011 |
1.1 – 1.3 and 2.1 to 2.4 Introduction to course and commence Corporate Governance The need for corporate governance. Principles of corporate governance - governance by whom?; of what?; for whose benefit?; authorised & regulated?; implemented how? The relationship between corporate governance and internal control of the accounting system. |
Text - Leeson: Ch’s 12, 13, & 14 |
2 | 14/2/2011 | 1.1 – 1.3 and 2.1 to 2.4 Corporate Governance continued. |
Ch’s 12, 13, & 14 |
3 | 21/2/2011 | In-class Assessment/Observation 1 – Corporate Governance 2.1 to 2.4 – Commence Internal Control & Fraud Internal control and fraud; defining fraud; some common types of fraud and fraud prevention techniques. |
Chapters 12-14 |
4 | 28/2/2011 | 2.1 to 2.4 - Internal Control & Fraud Internal control and fraud; defining fraud; some common types of fraud and fraud prevention techniques. |
Leeson Ch 6 |
5 | 7/3/2011 | 2.1 to 2.4 & 3.1 to 3.4 – Commence Internal Control Principles The internal control environment. Responsibility, delegation & accountability. |
Leeson Ch 2 |
6 | 14/3/2011 | 2.1 to 2.4 & 3.1 to 3.4 – Internal Control Principles The internal control environment. Responsibility, delegation & accountability. |
Leeson Ch 2 |
7 | 21/3/2011 |
1.3, 2.3, 3.1 – Internal Control in Accounting Systems Internal control objectives & procedures in the Purchases & Accounts Payable, Inventory & Payroll transactions cycle. |
Leeson Ch 3 |
8 | 28/3/2011 | 1.3, 2.3, 3.1 – Internal Control in Accounting Systems Internal control objectives & procedures in the Purchases & Accounts Payable, Inventory & Payroll transactions cycle. In-class Assessment/Observation 2 – Internal Control & Fraud - Accounts Payable |
Leeson Ch 3 |
9 | 4/4/2011 | In-class Assessment/Observation 3 – Internal Control & Fraud - Payroll 1.3, 2.3, 3.1 – Internal Control in Accounting Systems Internal control objectives & procedures in the Sales & Accounts Receivable, Cash & Bank Accounts & Non-Current Assets transactions cycle. |
Chapter 2, 3& 6 Leeson Ch 3 |
10 | 11/4/2011 | Case Study - Visit to Practise Firm. |
Case Study |
11 | 18/4/2011 & 25/4/2011 |
1.3, 2.3, 3.1 – Internal Control in Accounting Systems Internal control objectives & procedures in the Sales & Accounts Receivable, Cash & Bank Accounts & Non-Current Assets transactions cycle. |
Leeson Ch 3 |
12 | 2/5/2011 | In-class Assessment/Observation 4 – Internal Controls & Fraud - Sales & Accounts Receivable, Cash & Bank Accounts & Non-Current Assets & Payroll |
Chapter 2, 3 & 6 |
13 | 9/5/2011 | Case Study Presentation & Submission - Part 1. | Case Study 1 |
14 | 16/5/2011 | 1.3, 2.1, 2.2, 3.1, 3.2 – Computerised Accounting Systems Internal control procedures, performance indicators and reports within a computerised accounting system. |
Leeson Ch’s 4 & 5 |
15 | 23/5/2011 | In-class Assessment/Observation 5 – Internal Controls & Fraud - Cash/Bank Accounts |
Chapter 2, 3 & 6 |
16 | 30/5/2011 |
3.2 – 3.4 – Internal Audit Internal Audit techniques and audits with respect to internal controls. In-class Assessment/Observation 6 – Computerised Accounting Systems & Internal Audits |
Leeson Ch 7 Handout to students Leeson Ch’s 4, 5 & 7 Handout to students |
17 | 6/6/2011 | Case Study submission of final report. |
Case Study 2 |
Please note that the teaching schedule may be subject to change. Notification of any changes will be given via the learning hub and in class. Please note: The mid-semester break is scheduled between 21/4/2011 & 27/4/2011. |
Learning Resources
Prescribed Texts
Leeson, Di Sisto & Flanders, Internal Controls & Corporate Governance. 3rd Edition, 2009. Pearson Prentice Hall. |
References
http://www.aasb.com.au/ |
Other Resources
Overview of Assessment
Assessment Tasks
4 x 7. 5% In-class open book Assessments/Observations = 30% (90 minutes duration each).
Comprehensive Case Study - 70%
Presentation 1 (25%)
Presentation 2 & Report (45%).
Overall Assessment
Students must pass the comprehensive case study (parts one and two including the report) to be given a competent grade in this subject. Students will receive either a “Competent” (CA) or “Not Yet Competent” (NYC) as a final Grade. To be given a mark out of 100%, students must pass the comprehensive case study (parts one and two including the report) as well as having completed the four in-class assessments/observations. Students will be given the opportunity to repeat/resubmit any parts of the comprehensive case study not deemed competent.
Please note that there are no resits with respect to the four in-class assessments/observations.
Assessment Tasks
Assessment will be undertaken in a classroom via six (6) Observations (in-class assessments) which will cover all of the topics and a major case study which will be a simulated/authentic workplace practise whereby the students will assume the role of auditors who will audit the internal controls of a Virtual Office and make recommendations based on their findings and analysis. The later will be presented via a written report and two in-class presentations.
To be deemed competent in this unit the participant will be required to demonstrate all indicators which are shown in the marking guide and employability skills statement (below).
A. Methods of Assessment - the following methods of assessment have been deemed appropriate for this course:
Case Study:
1. Role Play - assume role of Auditor’s via case study
2. Project work - case study being major assessment
3. Demonstration - knowledge gained via these assessments
4. Written Report - to produce with case study
5. Discussion/ Interview - via case study as will interview students from “Practise Firm”
6. Presentation and Observation - via case study presentations
7. Portfolio of work/ Simulation - acting as auditor’s encompasses simulation as such.
In-Class Assessments/Observations:
1. Examination/Test - via 6 Observations
2. Demonstration - knowledge gained via these assessments
3. Presentation and Observation - via 6 observations.
B. Marking Guide for Assessments:
1. Observations 1 - 6
The observations will be structured by incorporating actual corporate fraud cases (short answers), multiple choice questions, true or false questions and (some) other short-answer (scenario) questions. Marks will be awarded where the student answers the question correctly with no deduction of marks for incorrect answers. Each observation will carry around 10-25 marks and weighted to 5% as part of the overall mark.
2. Presentation 1
A. Case Study Part I
Case Study Part I requires teams of students (usually 4 per team) to audit a division of the Virtual Office at RMIT and in week 13, to present only a description of how the two processes work as a result of their analysis. The presentation will take the form of a powerpoint presentation in class which must be handed-in to the Teacher at the end of the presentation together with any other relevant documents and a signed cover sheet by the team members. This assessment counts for 25% of the total mark.
3. Presentation 2
A. Case Study Part II
Case Study Part II requires each team to present the strengths and weaknesses and recommendations against the weaknesses with respect to the two internal control processes audited in the Virtual Office and presented in week 13. The presentation, in week 17, will take the form of a powerpoint presentation in class which must be handed-in to the Teacher at the end of the presentation together with any other relevant documents and a signed cover sheet by the team members. This assessment counts for 25% of the total mark.
4. Audit Report
The report is to be handed-in with the second presentation (in week 17) and it is to be a formal document addressed to the Manager (Teacher) of the Virtual Office detailing the two processes audited and the strengths, weaknesses and recommendations against weaknesses. This part is worth 20%.
C. Employability Skills Statement - the following employability skills are embedded in this unit of competency and will be assessed via the following assessments:
1. Communication - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
2. Teamwork - Case Study presentation parts I and II and Report submission.
3. Problem-Solving - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
4. Initiative/Enterprise - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
5. Planning and Organisation - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
6. Self-Management - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
7. Learning - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
8. Technology - Observations 1 - 6, Case Study presentation parts I and II and Report submission.
Assessment Matrix
Assessment Task | Description | Assessment Number | Assessment Method/s | Elements/PC’s | Critical Aspects of Evidence | Required Skills | Required Knowledge |
Observations 1-6 |
The observations will cover the six topics as part of the course and students will undertake these at the conclusion of the delivery of each topic. The six observations will be worth 5% each and the time limit to undertake and complete each observation in class will be 30 minutes. | 1 - 6 | In-class Open Book Tests |
1.1 - 1.3 2.1 - 2.4 3.1 - 3.4 |
1 - 7 | 1 - 7 | 1 - 5 |
Case Study Part I - Presentation 1 | Teams to present the two internal control processes audited in the Virtual Office (Practise Firm) via presentation in class in week 13. Visit to the Virtual Office will be in week 10. This part is worth 25%. | Part I | Presentation |
1.1 - 1.3 2.1 - 2.4 |
1 - 7 | 1 - 7 | 1 - 5 |
Case Study Part II - Presentation 2 | Teams to present the strengths and weaknesses and recommendations against the weaknesses with respect to the two internal control processes audited in the Virtual Office (Practise Firm) via presentation in class in week 17. This part is worth 25%. | Part II | Presentation |
2.1 - 2.4 3.1 - 3.4 |
1 - 7 | 1 - 7 | 1 - 5 |
Audit Report Submission - Presentation 2 | The report is to be handed-in with the second presentation and it is to be a formal document addressed to the Manager (Teacher) of the Virtual Office detailing the two processes audited and the strengths, weaknesses and recommendations against weaknesses. This part is worth 20%. | Part II | Audit Report |
1.1 - 1.3 2.1 - 2.4 3.1 - 3.4 |
1 - 7 | 1 - 7 | 1 - 5 |
Other Information
Case Study:
All presentations and reports must be submitted using the faculty cover sheet for assignments. These are available from the foyer on level 13.
Missed Assessments:
If a student misses an assessment or due date for ANY REASON, they must complete a special consideration application as detailed below. Please note that applications must be submitted through the Hub on RMIT Melbourne
campuses within 2 working days of the assessment deadline or scheduled assessment.
IT IS EXPECTED THAT STUDENTS WILL SHOW THEIR TEACHER THE WRITTEN RECEIPT GRANTING A DEFERRED ASSESSMENT AS SOON AS IT IS RECEIVED so it can be recorded.
Special Consideration: The full policy can be found at http://www.rmit.edu.au/browse;ID=g43abm17hc9w.
This site includes a link to the application form.
Course Overview: Access Course Overview