Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term1 2014

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

Claudio Marasco - claudio.marasco@rmit.edu.au 99251651                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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:

.

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. 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

 


Learning Outcomes



Details of Learning Activities

Primarily you will be learning face to face, with an online course site (Blackboard) used to disseminate materials, including videos, notes and activities and to provide access to on-line assessments & assessment submission points. 

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.

Students will be placed into teams of two and will be allocated one specific topic from the textbook to research and present to the class. This will contribute to competency.  In class, students will be assigned Review Questions from the text book to complete to indicate their understanding of the course material.  Students will also need to submit a series of BLOG’s from the Practical Application Questions from the textbook. Completing of the BLOG will also contribute to competency.

There will be three on-line tests that the students need to pass in order to be deemed competent.


Teaching Schedule

<thead> <th scope="col">Week</th> <th scope="col">Week Commencing</th> <th scope="col">Topic Outline/Assessment</th> <th scope="col">Class Work</th> <th scope="col">BLOG Activity</th> </thead>
117-Feb- 2014

Introduction and overview of Audit & Assurance       

                                                    

 Review Questions

1.1, 1.2 1.3, 1.5, 1.7 1.8                               

 Professional Application Questions (PAQ)

1.1, 1.6

 2 24-Feb-2014 Ethics, legal liability and client acceptance

 Review Questions

2.1, 2.2, 2.3, 2.4, 2.7

 PAQ

2.1,  2.3

 3 3-Mar-2014 Audit Planning 1

 Review Questions

3.1, 3.3, 3.4, 3.5, 3.9

 PAQ

3.3, 3.4

 4 10-Mar-2014 Online Test - Topics 1 and 2  
 5 17- Mar-2014 Audit Planning 2

 Review Questions

4.1, 4.2, 4.3, 4.5, 4.8

 PAQ

4.1, 4.2

 6 24-Mar-2014 Audit Evidence

 Review Questions

5.1, 5.2, 5.3, 5.5, 5.8

 PAQ

5.1

 7 31-Mar-2014 Overview of test of Controls, substantive procedures and sampling

 Review Questions

6.1, 6.2, 6.3, 6.4, 6.6

 PAQ

6.1, 6.7

 8 7-Apr-2014 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

 PAQ

7.4

 9

 14- Apr -2014

(Mon-Wed)

+

Thurs 24-Apr-2014

 Online test topics 3,4,5,6,7  

 Mid Semester Break

+ Anzac Day Holiday

 

 17- 23 Apr-2014

+

25-Apr-2014

   
 10 28-Apr-2014 Execution of Audit - Testing of Controls

 Review Questions

8.1, 8.2, 8.3, 8.5, 8.6, 8.9

 PAQ

8.1

 11 5-May-2014 Execution of Audit - Performing Substantive procedure

 Review Questions

9.2, 9.3, 9.4, 9.5, 9.6

 PAQ

9.1

 12 12-May-2014 Substantive testing & Balance Sheet Accounts

 Review Questions

10.1, 10.3, 10.4, 10.5, 10.7

 PAQ

10.1

 13 19-May-2014 Substantive testing & Income Statement Accounts

 Review Questions

11.1, 11.2, 11.3, 11.4, 11.6

 PAQ

11.1

 14 26-May-2014 Completing and reporting on the Audit

 Review Questions

12.1, 12.2, 12.3, 12.4, 12.5

 PAQ

12.3

 15 2-Jun-2014 Online Test topics 8,9,10,11  
 16 9-Jun-2014 Retesting  


Learning Resources

Prescribed Texts

Auditing - A Practical Approach  Moroney, Campbell, Hamilton

9781742165943


References


Other Resources

FOR ONLINE COLLABORATE SESSION, PLEASE ENSURE YOU HAVE JAVE INSTALLED ON YOUR COMPUTER https://java.com/en/download/index.jsp AND A HEADSET AND MICROPHONE


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

1. Team Presentation

All students will be divided into teams of 2 and be allocated a topic from the Auditing - A Practical Approach textbook. The teams will research the topic and present the key learnings to the class. The students will be assessed as Competent based on criteria set in an assessment rubric.

2. Weekly Blog

Weekly Questions set from the Practical Application Questions from the text will need to be completed by all students They must be submitted online via a weekly Blog.

3. Online Tests

3 On-Line tests will be scheduled during the semester. Thes tests will consist of MCQ and True/False questions. The students will be allowed multiple attempts to attain competency.


Assessment Matrix

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 resubmission 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

Other Information


When submitting assessments 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.

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 well as demonstrating a high level of initiative while proccessing transactions and extracting reports.

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 processing financial transactions. You should be able to demonstrate a thorough understanding of double entry bookkeeping principles and procedures involved when processing financial transactions and preparing reports.

3. TECHNIQUES & PROCESSES, TECHNOLOGY SKILLS AND PROBLEM SOLVING

We are looking for techniques to be used in problem solving, using appropriate technology and methodology to assist in recording data and preparing reports. You also need to show an understanding of the kinds of problems that can arise in bookkeeping and reporting.
4. WORK ORGANISATION, PLANNING AND SELF MANAGEMENT

We expect to see effective planning, self management & work organization resulting in 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. In addition you should demonstrate a range of well-developed interpersonal skills appropriate to each task
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.

 

 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 resubmission 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



 

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