Course Title: Implement and maintain internal control procedures

Part B: Course Detail

Teaching Period: Term2 2015

Course Code: COTH5002C

Course Title: Implement and maintain internal control procedures

School: 650T Vocational Business Education

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

Co-ordinator and Teacher for this semester

Mr Bruce Phillips

Email: bruce.phillips@rmit.edu.au

Mr Colin Byron

Email: colin.byron@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 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:

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

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 32 of the total nominal hours of 40 allocated to this course and will include a range of self-paced and collaborative learning activities such as class discussion, debate and review, observations based on factual media cases, tests and a comprehensive WIL Project which involves a simulated and real workplace environment with an Accounting Industry involvement. The 8 hours of self-directed/self-paced learning by students will be taken up with work on the case study outside scheduled class time.

Please note that the format for classes will be a two-hour class per session. 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 collaborative classroom based activities will include group discussion and problem solving activities and the opportunity to practice your skill in your workplace via the case study. 

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 this course will not be delivered via Flexed this semester.


Teaching Schedule

The nominal hours associated with this 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 - full-time and Flexed students

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.
 

FULL-TIME TEACHING SCHEDULE

WeekWeek CommencingTopicsAssessment
16/7/2015

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.

 Introduction to Course
Topic I – Corporate Governance and Ethics
• Leeson Chapter’s 11, 12, 13 and 14 (and any associated exercises from these chapters)
• Harris Scarfe, Tesco and Melbourne Storm Observations to discuss and review
• Tesco fraud case to discuss and review

 
213/7/2015

 Topic 1 to complete
 Topic 2 – Fraud
• Leeson Chapter 6 (and any associated exercises from these chapters)
• CPA fraud and Herald-Sun articles to discuss

 
320/7/2015

 Topic 3 – The 7 Internal Control Principles
• Leeson Chapter 2 and notes (and any associated exercises from these chapters)
• CPA Internal Controls Document to discuss
• RMIT Fraud case Observation to discuss and review
• Barings Bank Observation to discuss and review - Globalisation (Comparison) Exercise
• Tricon and SBV Observation to discuss and review - Globalisation (Comparison) Exercise

 
427/72015Topic 4 – Internal Control Objectives of Accounts Payable, Purchases and Inventory
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Victoria University fraud case Observation to discuss and review
 Test 1
• Preparation and review for test 1 in week 5
 
53/8/2015 Test 1
• 1 3/4-hour open book test covering topics 1-4
Test 1
You will receive the feedback by week 8.  If required, the resit for this test will be in week 16.
610/8//2015Topic 5 – Internal Control Objectives of Accounts Receivable and Sales
• Leeson Chapter 3 (and any associated exercises from these chapters)
 
717/8/2015 Topic 6 – Internal Control Objectives of Payroll
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Clive Peeters fraud case Observation to discuss and review
 
824/8/2015

Topics 7 & 8 - Internal Control Objectives of Cash, Bank Accounts and Non-Current Assets
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Nelson Rivera fraud case Observation to discuss and review

WIL Project - Case Study made available to students
• "Simulated Business Community" (SBC) department procedures discussed and procedure for visit in week 10

 
97/9/2015

Topic 9 - Internal Control Objectives within a computerised accounting system
• Leeson Chapters 4 and 5 (and any associated exercises from these chapters)

WIL Project Case Study
• "Simulated Business Community" (SBC) department procedures discussed and procedure for visit in week 10

 
1014/9/2015 WIL Project - Case Study
• "Simulated Business Community" (SBC) department procedures discussed
• Students to gather evidence from visit
• Preparation and review for week 15
 
1121/9/2015

 Topic 10 – Audit techniques
• Leeson Chapter 7 and materials (and any associated exercises from these chapters)

Test 2
• Preparation and review for test 2

WIL Project Pitstop 1
1228/9/2015 Test 2
• 1 3/4-hour open book test covering topics 5-10
Test 2
You will receive the feedback by week 15. If required, the resit for this test will be in week 16.
135/10/2015 WIL ProjectCase Study
• Preparation and review for week 15
WIL Project Pitstop 2
1412/10/2015 WIL Project Case Study
• Final Preparation and review for week 15
WIL Project Pitstop 3
1519/10/2015 WIL Project Case Study
• Presentations and submission of Audit Reports
Case Study Presentations and Audit Report Submission
You will receive the feedback in week 16
1626/10/2015 Special consideration/finalisation of results/moderationSpecial consideration/finalisation of results/moderation

 Please note:

1. The mid-semester break is from 31/8/2015 to 4/9/2015.
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 announcement placed on the Blackboard.

 

FLEXED TEACHING SCHEDULE WILL NOT BE DELIVERED THIS SEMESTER

WeekWeek CommencingTopicsAssessment
 

 

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.

Introduction to Course
• Topic I – Corporate Governance and Ethics
• Leeson Chapter’s 11, 12, 13 and 14 (and any associated exercises from these chapters)
• Harris Scarfe, Tesco and Melbourne Storm Observations to discuss and review
• Tesco fraud case to discuss and review

Topic 1 to complete
Topic 2 – Fraud
• Leeson Chapter 6 (and any associated exercises from these chapters)
• CPA fraud and Herald-Sun articles to discuss

Any work not completed in class to be covered by students as self-directed learning

 
  

Topic 3 – The 7 Internal Control Principles
• Leeson Chapter 2 and notes (and any associated exercises from these chapters)
• CPA Internal Controls Document to discuss
• RMIT Fraud case Observation to discuss and review
• Barings Bank Observation to discuss and review - Globalisation (Comparison) Exercise
• Tricon and SBV Observation to discuss and review - Globalisation (Comparison) Exercise

Topic 4 – Internal Control Objectives of Accounts Payable, Purchases and Inventory
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Victoria University fraud case Observation to discuss and review

Test 1
• Preparation and review for test 1 in week 5

Any work not completed in class to be covered by students as self-directed learning

 
  

Test 1
• 1 3/4-hour open book test covering topics 1-4

Any work not completed in class to be covered by students as self-directed learning

Test 1
You will receive the feedback by week 8. If required, the resit for this test will be in week 16.
  

Topic 5 – Internal Control Objectives of Accounts Receivable and Sales
• Leeson Chapter 3 (and any associated exercises from these chapters)

Topic 6 – Internal Control Objectives of Payroll
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Clive Peeters fraud case Observation to discuss and review

WIL Project - Case Study made available to students

Any work not completed in class to be covered by students as self-directed learning

 
  

Topics 7 & 8 - Internal Control Objectives of Cash, Bank Accounts and Non-Current Assets
• Leeson Chapter 3 (and any associated exercises from these chapters)
• Nelson Rivera fraud case Observation to discuss and review
 

Topic 9 - Internal Control Objectives within a computerised accounting system
• Leeson Chapters 4 and 5 (and any associated exercises from these chapters)

Topic 10 – Audit techniques
• Leeson Chapter 7 and materials (and any associated exercises from these chapters)

WIL Project - Case Study
• Preparation and review for week 15

Any work not completed in class to be covered by students as self-directed learning

WIL Project Pitstop 1
  

Test 2
• Preparation and review for test 2

Any work not completed in class to be covered by students as self-directed learning

WIL Project Pitstop 2
  

 Test 2
• 1 3/4-hour open book test covering topics 5-10

Any work not completed in class to be covered by students as self-directed learning

WIL Project Pitstop 3

Test 2
You will receive the feedback by week 15. If required, the resit for this test will be in week 16.

  

 WIL Project Case Study
• Presentations and submission of Audit Reports

Case Study Presentations and Audit Report Submission
You will receive the feedback in week 16
  Special consideration/finalisation of results/moderationSpecial consideration/finalisation of results/moderation

 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 announcement placed on the Blackboard.
 


Learning Resources

Prescribed Texts

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

9781442504660


References


Other Resources

Other materials will be placed on the Blackboard and will be used when directed so 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

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 Matrix for each assessment 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 two tests and the case study;
2. verbal or written questioning on underpinning knowledge and skills – via the two tests and case study;
3. setting and reviewing workplace projects, timelines and business simulations – via the case study;
4. evaluating samples of work - via the two tests and the case study; and
5. accessing and validating third party reports - via the two tests and the case study.

Crtical aspects of Assessments:

Evidence of the following is also essential:

• interpret and comply with corporate governance requirements, organisational policies, financial delegations and accountabilities;
• review corporate governance requirements and implement effective operating procedures; and
• monitor policy and relevant financial legislation.
 

Assessment Tasks:

Assessment will be undertaken in a classroom via two (2) tests which will constitute 40% of the total mark for this course and will cover all of the topics and a major case study which will be a designated WIL Project in the form of asimulated workplace internal audit.  In the WIL Project, the students will assume the role of RMIT internal auditors and will audit the internal controls of the departments within the RMIT "Simulated Business Community" (SBC) and make recommendations based on their findings and analysis. The WIL will be assessed via a written report submitted to the teacher and an in-class presentation to members of the Program Accounting Committee (PAC).  The proportion of the WIL project assessment will constitute 60% of the total mark for this course.

You are required to complete the 3 assessment tasks which you must successfully complete to be deemed competent in this course. The 3 assessment tasks are as follows:

1. Tests 1 and 2 - 40%

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 two tests.
 

Test 1 (Conducted in week 5) - 20%

1 x 3/4 hour 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 1-4 as per the indicators on the assessment record and cover sheet attached to the front of the test.
 

Test 2 (Conducted in week 12) - 20%

1 x 3/4 hour 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 5-10 as per the indicators on the assessment record and cover sheet attached to the front of the test.


2. WIL Project Case Study - Presentation and Audit Report involving Program Accounting Committee - 60%

RMIT University is committed to providing you with an education that strongly links formal learning with workplace experience. As a student enrolled in this RMIT University program you will via this course:

• undertake and be assessed on structured activities that allow you to learn, apply and demonstrate your professional or vocational practice;
• interact with industry via the Program Accounting Committee (PAC) when undertaking these activities; and
• complete these activities in a simulated work context or situation.
 

A. WIL Project - Presentation (Week 15)

The WIL Project requires teams of students (usually 4 per team) to audit a division of the "Simulated Business Community" (SBC) at RMIT and in week 15,  to present a description of how the predominately electronic, and some manual processes work as a result of their analysis and the strengths and weaknesses and recommendations against the weaknesses with respect to the internal control processes audited in the SBC.  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.  Members of the Program Accounting Committee (PAC) may be in attendance at the presentation so as to enable the WIL Project  to incorporate an aspect of Accounting Industry awareness, preparation and involvement.

As the presentation 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 the indicators on the assessment record and cover sheet.

B.  Audit Report (Week 15)

The report is to be handed-in with the presentation in week 15 and it is to be a formal document addressed to the Manager (teacher) of the SBC detailing the 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 the indicators on the assessment record and cover sheet.

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

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 11, 13 and 14 for the full-time students (and weeks 9, 11 and 13 for the Flexed students when delivered).  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.


Assessment Matrix

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 being 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 and 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.

Marking Guide and Assessment Cover and Cover Sheet (competency) for each assessment:

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. The marking guides or assessment matrix for each assessment together with the assessment will be discussed in class by your teacher at the beginning of the semester and prior to the assessment taking place.  Each student will also receive this document completed by the teacher a the feedback with regard to performance in each assessment.  Feedback is incorporated in the assessment matrix which each student will be given before each assessment. This will be completed by the teacher who will then go over this document and the feedback with each student individually. The assessment matrix documents are attached to each assessment.
 

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:

 

CHDCompetent with High Distinction
 
CDICompetent with Distinction
 
CCCompetent with Credit
 
CAGCompetency Achieved – Graded
 
NYCNot Yet Competent
 
DNSDid Not Submit for assessment
 

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

Other Information

Submission Requirements:

Assessment tasks will all be submitted to your teacher in class and the case study must include a signed cover sheet.

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 from the Student forms website.
• 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, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.

Late Submission Procedures:

You are required to submit assessment items and/or ensure performance based assessment is completed by the due dates.
If you are prevented from submitting an assessment item on time, by circumstances outside your control, you may apply in advance to your teacher for an extension to the due date of up to seven calendar days.
More Information: http://www.rmit.edu.au/students/assessment/extension
Form to use: http://mams.rmit.edu.au/seca86tti4g4z.pdf
Where an extension of greater than seven days is needed, you must apply for special consideration. Applications for special consideration must be submitted no later than two working days after the assessment task deadline or scheduled examination.
More Information: http://www.rmit.edu.au/browse;ID=g43abm17hc9w
Form to use: http://mams.rmit.edu.au/8a5dgcaqvaes1.pdf.

Resubmissions (VET Programs)

If you are found to be Not Yet Competent in a Course Assessment Task you will be allowed one re-submission only. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission. The highest grade you will receive if your resubmission is successful is “CAG”.

If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.

Adjustments to Assessment:

In certain circumstances students may be eligible for an assessment adjustment. For more information about the circumstances under which the assessment arrangements might be granted please access the following website:
More Information: http://rmit.edu.au/browse;ID=7usdbki1fjf31.
 

Course Overview: Access Course Overview