Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term1 2012

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 : Thomas Scordo

Course Contact Phone: +61 3 99255462

Course Contact

Name and Contact Details of All Other Relevant Staff

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


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 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

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

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

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

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 collaborative classroom based activities. The unit builds up week by week, as students progressively undertake the exercises, questions, case studies and prescribed assignments, the latter forming part of their competency requirements ( as outlined in the Teaching Schedule ), at the end of which they may sit for a graded test, which is optional.

Teaching Schedule





   Topic  Outline                                                                                                        



Timetable- Guide Only                                       

1Feb    6 Introduction to " Auditing " - An Overview ( Chapters 1 & 2 )  
2          13 Professional ethics/independence & quality ( Chapter 3 ) 
3          20 Assurance/quality standards & legal liability ( Chapters 4 & 5 ) 
4          27 Overview of financial statements audit ( Chapters 6 & 7 ) 
5Mar     5     Client evaluation and audit planning ( Chapter 8 ) 
6          12 Audit risk assessment ( Chapter 9 ) 
7          19 Materiality and audit evidence ( Chapter 10 ) 
8          26

Common Assessment Week- Assignment 1 ( Questions / Issues )

 Apr      2Mid Semester Break ( April 5 - April 11 ) 
9            9 Tests of controls ( Chapter 11 ) Submission of Assignment 1
10           16 Audit sampling ( Chapter 13 ) 
11           23 Auditing sales/receivables/payables/purchases, etc. ( Chapters 14, 15 & 16 )   
12           30 Auditing cash and investments ( Chapter 17 ) 
13       May      7 Assignment 2 ( Questions / Issues ) 
14           14  Completing the audit ( Chapter 18 ) Submission of Assignment 2
15           21  REVISION - Final week for re-submissions 
16           28 Graded Assessment Only " Test " TEST
17Jun      4 Feedback on " Assessment Results " 

Learning Resources

Prescribed Texts

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



Other Resources

In addition to the prescribed text, students will need to access the Blackboard for weekly notes. Handouts will be given as and when required.

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



This unit will be co-delivered and co-assessed with two other units, namely FNSACC604A ( Monitor Corporate Governance Activities ) and FNSACC606A ( Conduct Internal Audit ).


Overview of Assessment

Students must demonstrate an understanding of all elements of competency to be deemed competent.

A range of assessment methods are used to assess practical skills and knowledge, for example:
• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
• review of authenticated documents from the workplace or training environment
• demonstration of techniques

Critical aspects of assessment

Evidence of the ability to:

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


Assessment Tasks

This unit will have three (3) assessment tasks, comprising 2 Assignments ( assessed as competent or not yet competent ) and one graded test, which is optional.

For information on the timeline of the 3 assessments, refer to the Teaching Schedule.


Submission Requirements 

Assessment tasks need to be submitted as follows:

The 2 assignments are to be submitted in-class by the due date, as outlined in the Teaching Schedule. The optional graded test is scheduled for week 16 and will be undertaken in the students’ regular classroom.  

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;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:


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 undertaking and completing the work assigned. 


We are looking for depth of understanding of the key concepts. You should be able to demonstrate a thorough understanding of all applicable principles and concepts in all the assessment tasks. 


We are looking for appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. 


We expect to see ongoing uploading of information into Pebble Pad that is relevant to the unit, full utilisation of Pebble Pad and Blackboard as per course requirements and timely submission of all required assessment tasks.


We expect to see contributions to relevant discussions and scheduled Collaborate sessions. 

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                Assignment -Competency Based 
   Element                      Assignment  1       Assignment  2                    Graded Test - Optional  ( 100% )                    
One                       x              x                 x
Two                       x              x                 x
Three                       x               x                 x
Four                       x              x                 x
Five                       x              x                   x
Six                       x               x                 x

Course Overview: Access Course Overview