Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term2 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 Bryon

colin.bryon@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

Students will be required to read the course text before coming to class, the class is structured so that the reading is completed out of class

Disscusion will revolve around the review questions, which students will be required to partake in. Student will needd to submit a weekly blog that indicates their understanding of the material and the course case study.

There will be three online tests that the students need to pass in order to be deemed competent. Completion of the BLOG will also contribute to competency


Teaching Schedule

Teaching Schedule for Semester 2 2013
WeekWeek CommencingTopic OutlineClass workBLOG
108-July-2013Introduction and Overview of Audit and Assurance "Review Questions
1.1, 1.2, 1.3, 1.5, 1.7, 1.8"
 Cloud 9
215-July-2013Ethics, legal liability and client acceptance "Review Questions
2.1, 2.2, 2.3, 2.4, 2.7
 Cloud 9
322-July-2013Audit planning 1 "Review Questions
3.1, 3.3, 3.4, 3.5, 3.9"
 Cloud 9
429-July-2013Online Test topics one and two  
505-August-2013Audit planning 2 "Review Questions
4.1, 4.2, 4.3, 4.5, 4.8"
 Cloud 9
612-August-2013Audit Evidence "Review Questions
5.1, 5.2, 5.3, 5.5, 5.8"
 Cloud 9
719-August-2013Overview of test of controls, substantive procedures and sampling "Review Questions
6.1, 6.2, 6.3, 6.4, 6.6"
 Cloud 9
826-August-2013
 
Gaining an understanding of the client’s systems of internal controls
 
 "Review Questions
7.1, 7.2, 7.4, 7.6, 7.7, 7.10"
 
 Cloud 9
 Semester Break
 
   
909-September-2013
 
Online Test topics 3, 4, 5, 6, 7
 
  
1016-September-2013Execution of Audit - Testing of controls "Review Questions
8.1, 8.2, 8.3, 8.5, 8.6, 8.9"
 Cloud 9
1123-September-2013Execution of Audit - performing substantive procedure "Review Questions
9.2, 9.3, 9.4, 9.5, 9.6"
 Cloud 9
1230-September-2013Substantive testing and balance sheet accounts "Review Questions
10.1, 10.3, 10.4, 10.5, 10.7"
 Cloud 9
1307-October-2013Substantive testing andincome statement accounts "Review Questions
11.1, 11.2, 11.3, 11.4, 11.6"
 Cloud 9
1414-October-2013Completing and reporting on the audit "Review Questions
12.1, 12.2, 12.3, 12.4, 12.5."
 Cloud 9
1521-October-2013Online Test topics 8, 9, 10, 11, 12  
1628-October-2013Retesting  


 


Learning Resources

Prescribed Texts

Auditing a practical approach, Moroney, Cambell, Hamilton

9781742165943


References


Other Resources

All other resources are provided on Blackboard.


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

Assessment task,

Online test one, the test will consist of MQC and True/False questions, the student has one week to complete the assessment

Online test two the test will consist of MQC and True/False questions, the student has one week to complete the assessment

Online test three the test will consist of MQC and True/False questions, the student has one week to complete the assessment

Weekly BLOG. A blog of the Cloud 9 case study will need to be completed on a weekly basis, these blogs will be formed from the class discussions on the case.


Assessment Matrix

Course Overview: Access Course Overview