Course Title: Implement and maintain internal control procedures

Part B: Course Detail

Teaching Period: Term1 2012

Course Code: COTH5002C

Course Title: Implement and maintain internal control procedures

School: 650T TAFE Business

Campus: City Campus

Program: C5260 - Diploma of Accounting

Course Contact : Claudio Marasco

Course Contact Phone: +61 3 9925 1561

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 describes the performance outcomes, skills and knowledge required to review corporate governance requirements, implement operating procedures and monitor policy. This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.


 


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC506A Implement and maintain internal control procedures

Element:

1. Review corporate governance requirements
2. Implement operating procedures
3. Monitor policy

Performance Criteria:

Learning Outcomes/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
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

3.1 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


Learning Outcomes



Details of Learning Activities

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 the nominal hours allocated to this course and will include class discussion & debate, in-class observations based on factual media cases, graded tests and a comprehensive case study which involves a work place simulation. The hours of self-directed learning by students will be taken up with work on the case study outside scheduled class time. Please note that the format of the classes will be a two-hour class per week. The learning activities described above will be covered in these classes and as prescribed above also, the hours of self-directed learning will be undertaken on the case study by students.  We expect you to participate and contribute in all scheduled learning activities.

The Critical Aspects of Evidence, Knowledge and Skills Requirement for this course of study are as follows:

These critical aspects of evidence are essential:

Evidence required to demonstrate competency in this unit are:

1. the ability to interpret and comply with corporate requirements, organisational policies, financial delegations and accountabilities;
2. the ability to review corporate governance requirements and implement effective operating procedures; and
3. the ability to monitor policy and relevant financial legislation.

Evidence of these skills are essential:

Required skills include:

1 high level communication skills to:
• demonstrate and confirm internal control requirements by consulting with staff on internal control procedures using questioning and active listening as required
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences;
2. well-developed research and analysis skills for assessing and managing complex information;
3. well-developed literacy skills for interpreting and analysing complex documentation including relevant legislation and producing accessible guidelines and reports;
4. numeracy skills to accurately analyse, record and store data in accordance with organisational requirements;
5. IT skills for accessing and using appropriate software such as spreadsheets and databases and using internet information;
6. learning skills to maintain knowledge and changes to compliance legislation and requirements;
7. problem solving skills to identify any issues that have the potential to impact on the financial controls in the organisation and to develop options to resolve these issues when they arise; and
8. organisational skills, including the ability to plan and sequence work.

Evidence of this required knowledge is essential:

Required knowledge includes:

1. ethical considerations and confidentiality for management and handling of files and records;
2. financial legislation such as:
• taxable transactions
• reporting requirements;
3. methods of work practices and routines;
4. organisational guidelines and procedures; and
5. principles of internal control and auditing.


Teaching Schedule

The total number of scheduled hours of teaching, learning and assessment involved in this course will include all planned activities. This will incorporate face-to-face classes (two hours per week) and one visit to the Practice Firm in order to gather evidence for the Case Study, online learning and other forms of structured teaching and learning. Furthermore, 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.

Weekly Teaching Schedule (Weeks 1 – 16)

 

WeekWeek CommencingTopicsAssessment
16/2/2012

• Course requirements
• Course support documents
• Blackboard
• Overview of assessment requirements including Recognition of Prior Learning and Credit Transfers
• Grading
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements
• Resubmission policy
• Where to get support
• Student responsibilities

Introduction to course and familiarisation with University Policies (above) and assessment requirements for course
Corporate Governance – topic 1
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

Leeson Ch’s 12, 13, & 14
Melbourne Storm Case – Observation One

 
213/2/2012Corporate Governance continued
Leeson Ch’s 12, 13, & 14
Harris Scarfe Case – Observation Two

Fraud – topic 2
Fraud; defining fraud; some common types of fraud and fraud prevention techniques
Leeson Chapter 6
 
 3 20/2/2012Fraud continued - topic 2
Fraud; defining fraud; some common types of fraud and fraud prevention techniques
Leeson Chapter 6

Nelson Rivera Case – Observation Three
CPA fraud article to discuss

Internal Control Principles – topic 3

The internal control environment - Responsibility, delegation & accountability
Leeson Ch 2
 
 4 27/2/2012The internal control environment - Responsibility, delegation & accountability
Leeson Ch 2

CPA Internal Controls Document to discuss
Barings Bank Case – Observation Four
 
 5 5/3/2012 Test One covering topics 1 - 390 minute open book test.   Feedback should be received by week 8.
 6 12/3/2012Internal control objectives & procedures in the Purchases, Accounts Payable and Inventory transactions cycle. – topic 4
Leeson Ch 3
Victoria University Case – Observation Five
 
 7 19/3/2012Internal control objectives & procedures in the Sales & Accounts Receivable transactions cycle – topic 5
Leeson Ch 3
 

 8

 26/3/2012Test Two covering topic 490 minute open book test.  Feedback should be received by week 11.

 9 2/4/2012Internal control objectives & procedures in the Payroll transactions cycle – topic 6
Leeson Ch 3
Clive Peeters Case parts 1 and 2 – Observation Six

Virtual Office final visit preparation
 
  Mid-Semester Break between 5/4/2012 and 11/4/2012 
 9 9/4/2012Internal control objectives & procedures in the Payroll transactions cycle – topic 6
Leeson Ch 3
Clive Peeters Case parts 1 and 2 – Observation Six

Virtual Office final visit preparation
 
 10 16/4/2012Case Study - Visit to Virtual office Case Study  
 11 23/4/2012Internal control objectives & procedures in the Cash, Bank Accounts & Non-Current Assets transactions cycle – topics 7 and 8
Leeson Ch 3
 
 12 30/4/2012Test Three covering topics 5 - 890 minute open book test.  Feedback should be received by week 15.

 13 7/5/2012Case Study Power Point Presentation (and submission) of 2 processes by each group
Case Study Presentation Part 1.  Feedback should be received by week 16.
 14 14/5/2012Internal control procedures, performance indicators and reports within a computerised accounting system and Internal Audit techniques and audits with respect to internal controls – topics 9 and 10

Leeson Ch’s 4, 5, 7 and handout
 
 15 21/5/2012Test Four covering topics 9 - 1090 minute open book test.  Feedback should be received by week 18.
1628/5/2012Case Study part 2 Power Point Presentation and Audit Report submission - strenghts and weaknesses of each process and recommendations - via presentation and Audit ReportCase Study Presentation Part 2 including submission of audit report.  Feedback should be received by week 18.

 

 

 

 

Please note that students are to keep week 17 available in the case of any final re-assessments.

Week 18 is for finalisation of results.

Please note that the teaching schedule may be subject to change. Notification of any changes will be given via the Blackboard and in class.

The detailed content of each topic is contained in the "Table of Contents" of the text book which your Teacher will discuss in class in week 1.



Learning Resources

Prescribed Texts

Leeson, Di Sisto & Flanders, Internal Controls & Corporate Governance. 3rd Edition, 2009. Pearson Prentice Hall.

9781442504660


References

http://www.aasb.com.au/ and search: AASB Standards


Other Resources

All other resources for in-class activities and learning will be provided by your Teacher.


Overview of Assessment

Assessment may incorporate a variety of methods including technical requirements documentation, homework, assignments, group and/or individual projects, in class exercises, written and practical tests, problem solving exercises, presentations, direct observation of actual and simulated work practice, presentation of a portfolio of evidence which may comprise documents, and/or photographs and/or video and audio files, review of products produced through work-based or course activities.

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 being met. Students will be provided with feedback throughout the course to check their progress
 


Assessment Tasks

Overview of Assessment:

Students must demonstrate an understanding of all elements of competency to be deemed competent and will be required to demonstrate all of the indicators which are shown in the Unit Mapping Document, the Graded Assessment Evidence Sheet and the Graded Assessment Grading Sheet. These indicators are detailed further in this document. 

The following range of assessment methods will be used to assess practical skills and knowledge:

1. evaluating an integrated activity which combines the elements of the competency for the course – via the four tests and the case study;
2. verbal or written questioning on underpinning knowledge and skills – via the four tests;
3. setting and reviewing workplace projects and business simulations – via the case study;
4. evaluating samples of work - via the four tests and the case study; and
5. accessing and validating third party reports - via the four tests and the case study.

Assessment Tasks:

Assessment will be undertaken in a classroom via four (4) tests which will cover all of the topics and a major case study which will be a simulated workplace practise. In the case study, the students will assume the role of auditors and will audit the internal controls of the RMIT 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.

You are required to complete 7 assessment tasks which you must successfully complete to be deemed competent in this course. The 7 assessment tasks are as follows:

1. Tests 1 - 4

The tests will be structured by incorporating short answers, multiple choice questions, true or false questions and other short-answer (scenario) questions. As these tests are competency based assessments then a competent (CA) grade must be achieved for all four tests.

Test 1 (Conducted in week 5)

90 minute open-book test

To be deemed competent in this test you must be able to cover and show an understanding of the contents of topics 1, 2 and 3 and elements 1-3 (as contained in the teaching schedule and the course description section of this document)

Test 2 (Conducted in week 8)

90 minute open-book test

To be deemed competent in this test you must be able to cover and show an understanding of the contents of topic 4 and elements 1-3 (as contained in the teaching schedule and the course description section of this document)

Test 3 (Conducted in week 12)

90 minute open-book test

To be deemed competent in this test you must be able to cover and show an understanding of the contents of topics 5, 6, 7 and 8 and elements 1-3 (as contained in the teaching schedule and the course description section of this document)

Test 4 (Conducted in week 15) 

 90 minute open-book test

To be deemed competent in this test you must be able to cover and show an understanding of the contents of topics 9 and 10 and elements 1-3 (as contained in the teaching schedule and the course description section of this document)

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 or 14, 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. As presentation Part I is a competency based assessment, then a competent (CA) grade must be achieved for this assessment.

To be deemed competent in this assessment you must be able to cover and show an understanding of perfrormance criteria 1.1-1.3 and 2.1-2.4 as outlined in the course description section of this document.

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 or 14. 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. As presentation Part II is a competency based assessment, then a competent (CA) grade must be achieved for this assessment.

To be deemed competent in this assessment you must be able to cover and show an understanding of perfrormance criteria 2.1-2.4 and 3.1-3.4 as outlined in the course description section of this document.

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. As the Audit Report is a competency based assessment, then a competent (CA) grade must be achieved for this assessment.

To be deemed competent in this assessment you must be able to cover and show an understanding of perfrormance criteria 2.1-2.4 and 3.1-3.4 as outlined in the course description section of this document.


Assessment Matrix

Submission Requirements

Assessment tasks such as tests will be completed in class during your normal weekly scheduled classes.  The two presentations and audit report  will also be presented and submitted during your normal weekly scheduled classes but are to be given to your Teacher with an assignment cover sheet attached.

You should:

• Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at http://rmit.edu.au/browse;ID=ls0ydfokry9rz website.
• Always retain a copy of your assessment tasks (hard copy and soft copy).
• When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available on blackboard.
• Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers. For example, HR Group, Presentation 1, COTH 5002C,  Pages 1 of 10.


Marking Guide (competency):

Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.

You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.

Please refer to the Final Grades table below.

Marking Guide (Grading)

After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.

The grading is according to the following criteria:

1. LEVEL OF INDEPENDENCE, INITIATIVE, ENTERPRISE AND PERFORMANCE OF WORK TASK

We are looking for a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your approach to implementing and maintaining internal controls procedures.

2. DEMONSTRATED BREADTH OF UNDERPINNING KNOWLEDGE AND A WILLINGNESS TO CONTINUE LEARNING

We are looking for depth of understanding of the key concepts and knowledge required in implementing and maintaining an internal control system.  You should be able to demonstrate a thorough understanding of all applicable internal control procedures in all the assessment tasks.

3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING

We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. You also need to show an understanding of the kinds of problems that can arise in implementing and maintaining internal control procedures and how these might be addressed.

4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT

We expect to see all students working together effectively and efficiently as part of a simulated work-based team inlcluding attending regular meetings outside of the teaching hours. We also expect timely completion and submission of all required assessment tasks.


5. COMMUNICATION, PEOPLE NETWORKING, LANGUAGE AND INTERPERSONAL SKILLS AND TEAMWORK

We expect to see contributions by all students in a team towards contributing to a teamand the team’s interaction with students from the Virtual Office.  In addition your tasks should demonstrate a very good understanding of strategies for a collaborative approach to Team management in the simulated workplace and when also collaborating with each member as part of the requirements of the Case Study.

Final Grades table:

CHD    Competent with High Distinction
CDI     Competent with Distinction
CC      Competent with Credit
CAG   Competency Achieved – Graded
NYC   Not Yet Competent
DNS   Did Not Submit for assessment 

Further information regarding the application of the grading criteria will be provided by your teacher.

Course Overview: Access Course Overview