Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term1 2013

Course Code: ACCT5322C

Course Title: Audit and report on financial systems and records

School: 650T TAFE Business

Campus: City Campus

Program: C6113 - Advanced Diploma of Accounting

Course Contact : Claudio Marasco

Course Contact Phone: 9925 1651

Course Contact Email:claudio.marasco@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Colin Byron

colin.byron@rmit.edu.au

Linda Boyce

linda.boyce@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

FNSACC506A : Implement and maintain internal control procedures.

Course Description

This unit describes the performance outcomes, 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.

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:

FNSACC602A Audit and report on financial systems and records

Element:

1. Assess options
2. Identify information sources
3. Determine audit strategies
4. Schedule resources and timelines and monitor progress
5. Review data and verify statements
6. Determine reporting formats

Performance Criteria:

1. Assess options
2. Identify information sources
3. Determine audit strategies
4. Schedule resources and timelines and monitor progress
5. Review data and verify statements
6. Determine reporting formats

Element:

ELEMENT PERFORMANCE CRITERIA


1. Assess options 1.1 Statutory requirements are identified from assessment of terms
of reference and client objectives and obligations

1.2 Client activities and procedures are reviewed and analysed to
establish familiarity with systems and guide the selection of
appropriate audit methodologies

1.3 Financial audit methodologies are developed to identify
significant features of the audit and establish criteria for
conducting the audit in accordance with professional auditing
standards


2. Identify information 2.1 Audit financial data sources are identified from evaluation of
sources organisation’s information systems

2.2 Audit lines of enquiry are created to support audit objectives
and reduce audit risk to an acceptable level


3. Determine audit 3.1 Client financial business characteristics are established from
strategies analysis of the general economy, the industry and the client’s
provided information

3.2 Client’s inherent financial risk is assessed through value chain
risk analysis

3.3 Internal control procedures for financial transactions are
identified through discussion with the client and established
professional standards

3.4 Audit methodologies use established sampling and selection
techniques in a manner consistent with the internal control
procedures and substantive testing


4. Schedule resources 4.1 Timeframes are established and personnel allocated to
and timelines and functions and tasks based on audit lines of inquiry
monitor progress
4.2 Resources use is reviewed regularly and intermittent reports
developed and monitored with resource allocation and
timeframes adjusted through discussion and agreement with
the client and in accordance with professional accounting
standards


5. Review data and 5.1 Significant strengths and weaknesses are identified in the
verify statements controls and ranked in accordance to audit objectives




5.2 Evidence on financial systems and controls under review is
obtained and evaluated using established testing procedures
and in accordance with criteria identified in audit methodology

5.3 Management assertions are tested to achieve audit objectives

5.4 Sufficient appropriate audit evidence is gathered as a basis
for an expert opinion

5.5 Financial statements are verified as materially misstated or
correct


6. Determine reporting 6.1 Financial operational functions, services and systems are
formats identified and documented in accordance with standard
formats

6.2 Format is consistent with documentation requirements of the
auditor and professional auditing standards

6.3 Financial audit opinions, including recommendations, are
formulated and provided to the client in an established and
acceptable format


Performance Criteria:

  1.1.Statutory requirements are identified from assessment of terms of reference and client objectives and obligations
1.2.Client activities and procedures are reviewed and analysed to establish familiarity with systems and guide the selection of appropriate audit methodologies
1.3.Financial audit methodologies are developed to identify significant features of the audit and establish criteria for conducting the audit in accordance with professional auditing standards


2.1.Audit financial data sources are identified from evaluation of organisation’s information systems
2.2.Audit lines of enquiry are created to support audit objectives and reduce audit risk to an acceptable level

3.1.Client financial business characteristics are established from analysis of the general economy, the industry and the client’s provided information
3.2.Client’s inherent financial risk is assessed through value chain risk analysis
3.3.Internal control procedures for financial transactions are identified through discussion with the client and established professional standards
3.4.Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing

4.1.Timeframes are established and personnel allocated to functions and tasks based on audit lines of inquiry
4.2.Resource use is reviewed regularly and intermittent reports developed and monitored with resource allocation and timeframes adjusted through discussion and agreement with the client and in accordance with professional accounting standards

5.1.Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives
5.2.Evidence on financial systems and controls under review is obtained and evaluated using established testing procedures and in accordance with criteria identified in audit methodology
5.3.Management assertions are tested to achieve audit objectives
5.4.Sufficient appropriate audit evidence is gathered as a basis for an expert opinion
5.5.Financial statements are verified as materially misstated or correct

6.1.Financial operational functions, services and systems are identified and documented in accordance with standard formats
6.2.Format is consistent with documentation requirements of the auditor and professional auditing standards
6.3.Financial audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format


Learning Outcomes



Details of Learning Activities

A range of learning activities are planned for this unit, including self paced and collobarative based activities. The unit builds up week by week, as students progressively undertake the exercises, questions and prescribed assignments, the later forming part of the competency requirements (as outlined in the Teaching Schedule), at the end of which they may sit for a graded test.


Teaching Schedule

Course Guide For 2013
Week

Week

Commecing

Topic OutlineClass work to be completedPart Time Class

Assessment Timetable

All Students

111/2/2013 Introduction to Auditing - An Overview ( Chapters 2) Introduction, Class expectations

Review Questions 2.11 - 2.20

Professional Applications 2.21 & 2.22

Underpinning knowledge

 Workshop 1
Introduction and Expectations
Course work Exercises

Online Lectures

Overview of topics 1,2,3

 

 
218/2/2013 Professional ethics/independence & quality (Chapter 3) Review questions 3.11 - 3.20

Professional Application questions
3.21, 3.24, 3.26, 3.30.

Underpinning knowledge

 Consult blackboard online lecture.Complete text questions

Review questions 3.11 - 3.20

Professional Application questions
3.21, 3.24, 3.26, 3.30.

 
325/2/2013 Assurance/quality standards & legal liability (Chapters 4& 5) Review questions 4.11 - 4.20

Professional Application questions 4.21, 4.23, 4.25.

Elements 1.1, 1.2, 1.3

 Consult blackboard online lecture.

Complete Course Work.

Review questions 4.11 - 4.20

Professional Application questions 4.21, 4.23, 4.25.

 
44/3/2013 Overview of financial statements audit (Chapters 6 & 7) Review Questions 5.11 - 5.20

Professional application questions
5.21 5.22 5.28

Elements 1.1

 Workshop 2

Review Questions 5.11 - 5.20

 

Professional application questions
5.21 5.22 5.28

Discussion of areas of concern or further clarity, discussion about assignment topics 1, 2, 3

 Overview of topics 4, 5, 6, 7

Assignment Part A handout
511/3/2013 Client evaluation & audit planning (Chapter 8) Review Questions 8.11 - 8.20

Professional application Q’s 8.21, 8.22, 8.24, 8.28,

elements 2.2, 3.1, 3.2, 3.4

Consult blackboard online lecture.

Complete Course Work.

Review Questions 8.11 - 8.20

Professional application Q’s 8.21, 8.22, 8.24, 8.28

 Part A of Assignment due in Blackboard
through Turnitin
618/3/2013 Audit Risk assessment (Chapter 9) Review Questions 9.11 - 9.18

Professional Application Q’s 9.19, 9.20, 9.22, 9.23, 9.26.

Elements 3.3, 5.3, 5.5

 Consult blackboard online lecture.

Complete Course Work.

Review Questions 9.11 - 9.18

Professional Application Q’s 9.19, 9.20, 9.22, 9.23, 9.26.

Assignment Part B handout
725/3/2013 Materiality & audit evidence (Chapter 10) Review Questions 10.11 - 10.20

Professional Application Questions 10.21, 10.22, 10.24, 10.25, 10.26, 10.27

elements 4.1, 4.2, 5.1, 5.2, 5.4

Consult blackboard online lecture.

Complete Course Work.

Review Questions 10.11 - 10.20

Professional Application Questions 10.21, 10.22, 10.24, 10.25, 10.26, 10.27

  Part B of Assignment due in Blackboard
through Turnitin
88/4/2013 Test of Controls (Chapter 11) Review Question 11.11 - 11.20

Professional Application Questions 11.22, 11.23, 11.27, 11.28

elements 5.2, 5.3, 5.4

Workshop 3

Review Question 11.11 - 11.20

Professional Application Questions 11.22, 11.23, 11.27, 11.28.

 

Discussion of area needing clarity topics 4, 5, 6, 7.

Overview of topics 8, 9, 10, 11.
 

 
915/4/2013 Audit Sampling (Chapter 13) Review Questions 13.11 - 13.20

Professional Application Q’s 13.21, 13.23, 13.25, 13.27, 13.28

elements 2.1, 3.4

Consult blackboard online lecture.

Complete Course Work.

Review Questions 13.11 - 13.20

Professional Application Q’s 13.21, 13.23, 13.25, 13.27, 13.28

 
1022/4/2013 Auditing sales/receivables/payables/purchases etc (Chapters 14,15) Review Questions 14.11 - 14.20

Professional Application Q’s 14.22, 14.25

Elements 6.1

Consult blackboard online lecture.

Complete Course Work

Review Questions 14.11 - 14.20

Professional Application Q’s 14.22, 14.25

 Assignment Part C handout
1129/4/2013 Auditing sales/receivables/payables/purchases etc (Chapters 15) Review Questions 15.11 - 15.20

Professional Application questions 15.23, 15.26

Elements 6.1

Consult blackboard online lecture.

Complete Course Work.Review Questions 15.11 - 15.20

Professional Application questions 15.23, 15.26

  Part C of assignment due in Blackboard through Turnitin
126/5/2013 Auditing Cash and investments (Chapter 17) Review Questions 17.11 - 17.20

Professional Application Q’s 17.21, 17.22, 17.23, 17.24, 17.25, 17.29.

Elements 6.1

Workshop 4
In-class activities
 Review Questions 17.11 - 17.20

Professional Application Q’s 17.21, 17.22, 17.23, 17.24, 17.25, 17.29.

Discussion of areas needing clarity topics 8, 9, 10, 11.

Overview of topics 12, 13.

 
1313/5/2013 Completing the Audit (Chapter 18) Review Questions 18.11 - 18.20

Professional Applications Questions 18.21, 18.23, 18.26.

Elements 6.2, 6.3

Consult blackboard online lecture.

Complete Course Work.

Review Questions 18.11 - 18.20

Professional Applications Questions 18.21, 18.23, 18.26.

 
1420/5/2013 Revision/Assessment Preparation   
1527/5/2013 Test -Assessment Online test to be completed by students Online test to be completed by students
163/6/2013 Re assessments    Resubmissions due
1710/6/2013 Feedback on Assessment Results   
      


Learning Resources

Prescribed Texts

Modern Auditing & Assurance Services - 5th Edition - By Leung/Coram/Cooper/Richardson - Digital - 5th eBook edition + ISG flashdrive + Study Guide

9781118345245


References


Other Resources

In addition to the prescribed eBook text, students will need to access the Blackboard for weekly notes. Any handouts will be provided on Blackboard and should be printed off by students and brought to class


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

The unit will have 2 assessment tasks, comprising 1 Assignments  and one online test.
For information on the timeline of the 2 assessments, refer to the Teaching Schedule.
The assignment is to be submitted via Blackboard by the due date as outlined in the Teaching Schedule. The  test is scheduled for week 16 and will be online. It will cover all topics covered in the Teaching Schedule.
Assignment 1 (due throughout the semester see teaching schedule) consists of a case study related to the topics covered in the Teaching Schedule. To prepare for the assignment, students need to have studied the materials placed on the Blackboard and the prescribed textbook.

* 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 are available on the RMIT website.


* Always retain a copy of your assessment tasks. (Hard copy and soft copy).
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 studing.
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.
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 you approach to your tasks.
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 completing your tasks. You should be able to demonstrate a thorough understanding of all applicable requirements 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.
4. Work organisation, Planning and self management
We expect to see timely submission of all required assessment tasks.
5. Communication, people networking, language and interpersonal skills and teamwork
We expect to see contributions to relevant discussions and scheduled colloborative sessions. In addition your team tasks will provide opportunities to demonstrate how well you work in a team.
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


Assessment Matrix

  Assignment - Competency Based 
Element AssignmentOnline  Test - 100%
One xx
Two xx
Three xx
Four xx
Five xx
Six xx

Course Overview: Access Course Overview