Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term2 2015

Course Code: ACCT5322C

Course Title: Audit and report on financial systems and records

School: 650T Vocational Business Education

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

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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

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. Flexed students (only) will participate in online collaborative sessions planned for weeks 10 and 12, so please ensure that you have Java installed on your computer and if required, visit https://java.com/en/download/index.jsp and a handset and microphone. Please note that no Flexed classes will be delivered in this semester.

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.

Induction Session for all students (Full-Time and Flexed)

Prior to training commencement a program level induction session will be conducted that comprises the following:

• Program overview and requirements
• MyRMIT/Blackboard
• Overview of assessment requirements
• Pre-Training Review including:
o Recognition of Prior Learning and Credit Transfers
o Assessment of current skills and knowledge
• Competency/Grading Criteria
• Plagiarism
• Appeals
• Extensions
• Feedback
• Privacy
• Submission requirements
• Resubmission policy
• Where to get support
• Student responsibilities.

TEACHING SCHEDULE (FULL TIME STUDENTS)

Week	Week Commencing	Topics	Class Work Assessment
1	6/7/2015	Introduction to the Course including: • Course requirements • Course support documents • Course Blackboard access • Accuracy of enrolment • Assessment requirements/Cover Sheets • Reminder re Plagiarism • Reminder re Appeals • Extensions/Resubmissions • Feedback in this course • Reminder re submission requirements • Getting help. 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
2	13/7/2015	Chapter 2 - Ethics, legal liability and client acceptance	Review Questions 2.11-2.13, 2.15, 2.17-2.18
3	20/7/2015	Chapter 3 - Risk Assessment 1	Review Questions 3.11, 3.13-3.15, 3.20 Team Presentation 1 - Chapter 3
4	27/7/2015	Online Test 1 - Topics 1 and 2	Online Test 1
5	3/8/2015	Chapter 4 - Risk Assessment 2 Chapter 5 - Audit Evidence	Review Questions 4.11-4.13, 4.16, 4.19 Review Questions 5.11-5.13, 5.15, 5.18 Team Presentation 2 - Chapter 4 Team Presentation 3 - Chapter 5
6	10/8/2015	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
7	17/8/2015	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
8	24/8/2015	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
9	7/9/2015	Online Test 2 - Topics 3-7	Online Test 2
10	14/9/2015	Chapter 9 - Execution of the audit - performing substantive procedures Discussion of case study - relevance to chapter(s)	Pitstop 1 Review Questions 9.12-9.16 Team Presentation 7 - Chapter 9
11	21/9/2015	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
12	28/9/2015	Chapter 11 - Substantive tesing and income statement accounts Discussion of case study - relevance to chapter(s)	Pitstop 2 Review Questions 11.11-11.14, 11.16 Team Presentation 9 - Chapter 11
13	5/10/2015	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
14	12/10/2015	Online Test 3 - Topics 8-12	Online Test 3 Pitstop 3
15	19/10/2015	Presentation and submission of Audit Report to Committee	Case Study Audit Report Presentation and 10-minute Presentation by teams
16	26/10/2015	Re-submissions/Re-submission	Re-submissions/Re-submission

Please note:

1. The mid-semester break is from 31/8/2015 to 4/9/2015.

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.

TEACHING SCHEDULE (FLEXED STUDENTS) - PLEASE NOTE THAT THIS COURSE WILL NOT BE OFFERED VIA FLEXED THIS SEMESTER

Week	Week Commencing	Topics	Class Work Assessment
		Introduction to the Course including: • Course requirements • Course support documents • Course Blackboard access • Accuracy of enrolment • Assessment requirements/Cover Sheets • Reminder re Plagiarism • Reminder re Appeals • Extensions/Resubmissions • Feedback in this course • Reminder re submission requirements • Getting help. 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 Chapter 2 - Ethics, legal liability and client acceptance	Discuss Course and all Assessment requirements 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 Review Questions 1.11-1.13, 1.15, 1.17-1.18 Review Questions 2.11-2.13, 2.15, 2.17-2.1 Topics and exercises not completed in week 1 to be undertaken by students before their next class
		Chapter 3 - Risk Assessment 1 Online Test 1	Review Questions 3.11, 3.13-3.15, 3.20 Team Presentation 1 Team Presentation 2 Online Test 1 - Topics 1 and 2 - to be completed online during week 4 Topics and exercises not completed in week 1 to be undertaken by students before their next class
		Chapter 4 - Risk Assessment 2 Chapter 5 - Audit Evidence	Review Questions 4.11-4.13, 4.16, 4.19 Review Questions 5.11-5.13, 5.15, 5.18 Team Presentation 3 Team Presentation 4 Topics and exercises not completed in week 1 to be undertaken by students before their next class
		Chapter 6 - Gaining an understanding of the client’s system of internal controls Chapter 7 - Sampling and overview of the risk response phase of an audit Case study made available on Blackboard - to discuss in detail with class Discussion of case study - relevance to chapter(s)	Review Questions 6.11-6.12, 6.14, 6.16-6.17, 6.20 Review Questions 7.11-7.13, 7.16-7.17, 7.19, 7.22 Team Presentation 5 Team Presentation 6 Topics and exercises not completed in week 1 to be undertaken by students before their next class
		Chapter 8 - Execution of the audit - testing of controls Chapter 9 - Execution of the audit - performing substantive procedures Online Test 2 Discussion of case study - relevance to chapter(s)	Review Questions 8.12-8.14, 8.16-8.18, 8.21 Review Questions 9.12-9.16 Online Test 2 - Topics 3-7 to be completed by end of week 9 Team presentations only if required Topics and exercises not completed in week 1 to be undertaken by students before their next class Pitstop 1
		Chapter 10 - Substantive testing and balance sheet accounts Chapter 11 - Substantive testing and income statement accounts Discussion of case study - relevance to chapter(s)	Review Questions 10.11, 10.13-10.15, 10.17 Review Questions 11.11-11.14, 11.16 Team presentations only if required Topics and exercises not completed in week 1 to be undertaken by students before their next class Pitstop 2
		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 presentations only if required Topics and exercises not completed in week 1 to be undertaken by students before their next class Pitstop 3
		Presentation and submission of Audit Report to Committee Online Test 3	Case Study Audit Report Presentation and 10-minute Presentation by teams Online Test 3 - Topics 8-12 Online Test 3 to be completed by week 15
		Re-submissions/Re-submission	Re-submissions/Re-submission

Please note:

1. 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.

2. 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

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

9781118377901

References

Other Resources

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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

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Assessment Matrix

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Other Information

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Course Overview: Access Course Overview

Course Title: Audit and report on financial systems and records

Part B: Course Detail

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