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
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


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:

 

WeekWeek BeginningPerformance Criteria/Topics/AssessmentsReading/Assessment
17/2/20111.1 – 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

214/2/2011 1.1 – 1.3 and 2.1 to 2.4
Corporate Governance continued.
 
 Ch’s 12, 13, & 14
321/2/2011 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

 Leeson Ch 6

428/2/2011 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
57/3/2011  2.1 to 2.4 & 3.1 to 3.4 – Commence Internal Control Principles
The internal control environment. Responsibility, delegation & accountability.

 Leeson Ch 2

614/3/2011 2.1 to 2.4 & 3.1 to 3.4 – Internal Control Principles
The internal control environment. Responsibility, delegation & accountability.
 
 Leeson Ch 2
721/3/2011 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
828/3/2011 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 
 Chapter 2, 3 & 6

94/4/2011 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
1011/4/2011

Case Study - Visit to Practise Firm.

 Case Study
1118/4/2011 & 25/4/20111.3, 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
122/5/2011

In-class Assessment/Observation 4 – Internal Controls & Fraud - Sales & Accounts Receivable, Cash & Bank Accounts & Non-Current Assets & Payroll
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.  

 Chapter 2, 3 & 6
 Leeson Ch’s 4 & 5

139/5/2011 Case Study Presentation & Submission - Part 1.  Case Study 1
1416/5/2011 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
1523/5/2011

 In-class Assessment/Observation 5 – Internal Controls & Fraud - Cash/Bank Accounts
 Case Study – Group Meetings for all students.

 Chapter 2, 3 & 6 
 
Case Study 2 

1630/5/2011 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
176/6/2011

 Case Study submission of final report.
 Case Study presentation and submission of Part 2.

 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/
Search: AASB Standards


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 TaskDescriptionAssessment NumberAssessment Method/sElements/PC’sCritical Aspects of EvidenceRequired SkillsRequired 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 - 6In-class Open Book Tests

1.1 - 1.3

2.1 - 2.4

3.1 - 3.4

1 - 71 - 71 - 5
Case Study Part I - Presentation 1Teams 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 IPresentation

1.1 - 1.3

2.1 - 2.4

1 - 7 1 - 71 - 5
Case Study Part II - Presentation 2Teams 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 IIPresentation

2.1 - 2.4

3.1 - 3.4

1 - 71 - 71 - 5
Audit Report Submission - Presentation 2The 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 IIAudit Report

1.1 - 1.3

2.1 - 2.4

3.1 - 3.4

1 - 71 - 71 - 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