Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term2 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

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:

1.1. 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

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.

In-class work will account for 32 of the total nominal hours of 60 hours for the course and in-class work will include a range of self-paced and collaborative learning activities such as class discussion, completion and review of set exercises, a team presentation on one chapter of the text book, work on a simulated/real workplace environment assignment based on an organisation with a presentation and audit report to be presented, and three (3) online tests.

The hours of self-directed/self-paced learning by full-time students (28 of the 60 total nominal hours) will be taken up with reading, research and the completion of the assignment outside scheduled class time. Please note that the format of the class will be a two-hour class per week over 16 weeks.

It is expected that all students participate and contribute in all scheduled learning activities.
 


Teaching Schedule

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.  Please refer to Learning Activities (above) with reference to instructions regarding work to be completed outside teaching hours.

TEACHING SCHEDULE

Week

Week

Commencing

Topics

Class Work

Assessment

17/7/2014Course Induction
• Course delivery and assessment details
• Course support documents
• Online learning environment including Blackboard
• Grading
• Plagiarism
• Appeals/Extensions
• Feedback/Privacy
• Submission requirements/Resubmission policy
• Where to get support
• Student responsibilities
• Use of Turnitin (if applicable)

Pre-Training Review (if applicable)
• Includes skills analysis and Recognition of Prior Learning and Credit Transfers
 

Chapter 1 - Introduction and overview of Audit and Assurance

 

Discuss Course and all Assessment requirements

Review Questions

1.11-1.13, 1.15, 1.17-1.18

Students allocated to team and topic for week/chapter presentation

Students allocated to team for case study audit committee report and presentation

Globalisation - introduction and activity

214/7/2014Chapter 2 - Ethics, legal liability and client acceptance

Review Questions

2.11-2.13, 2.15, 2.17-2.18

321/7/2014Chapter 3 - Risk Assessment 1Review Questions

3.11, 3.13-3.15, 3.20

Team Presentation 1 - Chapter 3

428/7/2014Online Test 1 - Topics 1 and 2

 Online Test 1

54/8/2014

Chapter 4 - Risk Assessment 2

Chapter 5 - Audit Evidence

Review Questions

4.11-4.13, 4.16, 4.19

5.11-5.13, 5.15, 5.18

Team Presentation 2 - Chapter 4

 Team Presentation 3 - Chapter 5

611/8/2014

Chapter 6 - Gaining an understanding of the client’s system of internal controls

Case study made available on Blackboard - to discuss in detail with class

Review Questions

6.11-6.12, 6.14, 6.16-6.17, 6.20

Team Presentation 4 - Chapter 6

718/8/2014

Chapter 7 - Sampling and overview of the risk response phase of an audit

Discussion of case study - relevance to chapter(s)

 

Review Questions

7.11-7.13, 7.16-7.17, 7.19, 7.22

Team Presentation 5 - Chapter 7

825/8/2014

 

Chapter 8 - Execution of the audit - testing of controls

Discussion of case study - relevance to chapter(s)

Review Questions

8.12-8.14, 8.16-8.18, 8.21

Team Presentation 6 - Chapter 8

98/9/2014Online Test 2 - Topics 3-7
Online Test 2
1015/9/2014

Chapter 9 - Execution of the audit - performing substantive procedures

Discussion of case study - relevance to chapter(s)

Review Questions

9.12-9.16

Team Presentation 7 - Chapter 9

1122/9/2014

 

Chapter 10 - Substantive tesing and balance sheet accounts

Discussion of case study - relevance to chapter(s)

Review Questions

10.11, 10.13-10.15, 10.17

Team Presentation 8 - Chapter 10

1229/9/2014

Chapter 11 - Substantive tesing and income statement accounts

Discussion of case study - relevance to chapter(s)

 

Review Questions

11.11-11.14, 11.16

Team Presentation 9 - Chapter 11

136/10/2014

Chapter 12 - Completing and reporting on the audit

Discussion of case study - relevance to chapter(s)


 

Review Questions

12.11-12.13, 12.16

Team Presentation 10 - Chapter 12

1413/10/2014Online Test 3 - Topics 8-12Online Test 3
 
1520/10/2014Presentation and submission of Audit Report to CommitteeCase Study Audit Report Presentation and 10-minute Presentation by teams
1627/10/2014Re-submissions/Re-submission

Re-submissions/Re-submission

Please note:

1. The mid-semester break is from 1/9/2014 to 5/9/2014.

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 assessment placed on the blackboard.

3. If in the event there are not enough teams to cover all thirteen chapter presentations, then the teacher will cover any excess chapters themselves.


Learning Resources

Prescribed Texts

Auditing, A practical Approach.  2nd Edition. Moroney, Campbell & Hamilton.  Wiley publications.

9781118377901


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

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 all assessments
2. verbal or written questioning on underpinning knowledge and skills – via all assessments
3. setting and reviewing workplace projects and business simulations – via all assessments
4. evaluating samples of work - via all assessments and
5. accessing and validating third party reports - via all assessments.

Critical aspects of Assessments:

 Evidence of the following is also essential:

• the ability to analyse organisational financial policies and procedures
• the ability to comply with relevant professional standards and internal control procedures
• the ability to access options to determine financial audit strategies
• the ability to schedule resources and timelines and monitor progress and;
• the ability to review data, verify financial statements and determine reporting formats.

 Assessments Tasks:

Assessment will be undertaken as per the following five (5) assessments and all students are required to successfully complete these to be deemed competent in this course. The five (5) assessments are:

1. Team Presentation:

All students will be divided into teams of 2-3 and be allocated a topic from the “Auditing - A Practical Approach”, 2nd edition textbook. The teams will research the topic and present the key learning’s to the class by way of powerpoint presentation. The assessment is competency based and a CA (competent) must be achieved for this assessment. The assessment will be graded (once competency is achieved) according to the grading policy for assessments those being, CA-ENT (enterprise), CA-HGH (High) or CA-EXC (excellent).

2. Three (3) Online Tests:

Three on-line tests will be scheduled during the semester. These tests will consist of MCQ (multiple-choice questions) and True/False questions taken from “Auditing - A Practical Approach”, 2nd edition textbook. The students will be allowed multiple attempts to attain competency. These three tests are competency based and a CA (competent) must be achieved for each assessment. The assessments will be graded (once competency is achieved) according to the grading policy for assessments those being, CA-ENT (enterprise), CA-HGH (High) or CA-EXC (excellent).

3. Assignment – Workplace Audit Simulation:

All students will be divided in the teams they were are part of in the prerequisite to this course, “Implement and maintain internal control procedures”. You will be given a MYOB file for a company called “Bookkeeping Makes Cents Pty. Ltd.” From where each team will be required to conduct a detailed audit on. Each team will prepare answers to specified questions regarding the simulated audit and submit this as part of a comprehensive and detailed report to the audit committee of “Bookkeeping Makes Cents Pty. Ltd.” indicating the audit observations. Each team will also present a ten-minute powerpoint presentation in-class based around this report but as a “snap-shot” only.

This assessment is competency based and a CA (competent) must be achieved for this assessment. The assessment will be graded (once competency is achieved) according to the grading policy for assessments those being, CA-ENT (enterprise), CA-HGH (High) or CA-EXC (excellent).

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


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 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 Marking Guide/Assessment Matrix 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 Matrix (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.


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.


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.
 

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