Course Title: Audit and report on financial systems and records

Part B: Course Detail

Teaching Period: Term1 2019

Course Code: ACCT5388C

Course Title: Audit and report on financial systems and records

School: 650T Vocational Business Education

Campus: City Campus

Program: C6163 - Advanced Diploma of Accounting

Course Contact: Doug Gourlay

Course Contact Phone: +61 3 9925 5944

Course Contact Email:

Name and Contact Details of All Other Relevant Staff

Course Coordinator :   

Meetu Aggarwal

E- mail:

Ph: 9925 1621        

Contact timings:

Monday and Wednesday: 8:30 - 6pm

Thursday and Friday: 8:30 - 2:30pm


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

FNSACC516 Implement and maintain internal control procedures

Course Description

This unit describes the 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.


It applies to experienced individuals who use specialised knowledge and systematic approaches to analyse and evaluate financial information against specified criteria and compliance requirements.


Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSACC602 Audit and report on financial systems and records


1. Assess options

Performance Criteria:

1.1 Identify statutory requirements from assessment of terms of reference, and client objectives and obligations

1.2 Review and analyse client activities and procedures to establish familiarity with systems and guide selection of appropriate audit methodologies

1.3 Develop financial audit methodologies to identify significant features of audit and establish criteria for conducting audit in accordance with professional auditing standards


2. Identify information sources

Performance Criteria:

2.1 Identify audit financial data sources from evaluation of organisation’s information systems

2.2 Create audit lines of enquiry to support audit objectives and reduce audit risk to acceptable level


3. Determine audit strategies

Performance Criteria:

3.1 Establish client financial business characteristics from analysis of general economy, industry and client’s provided information

3.2 Assess client’s inherent financial risk through value chain risk analysis

3.3 Identify internal control procedures for financial transactions through discussion with client and established professional standards

3.4 Ensure audit methodologies use established sampling and selection techniques in manner consistent with internal control procedures and substantive testing


4. Schedule resources and timelines and monitor progress

Performance Criteria:

4.1 Establish timeframes and allocate personnel to functions and tasks based on audit lines of enquiry

4.2 Review resource use regularly, and develop and monitor intermittent reports with resource allocation and timeframes adjusted through discussion and agreement with client and in accordance with professional accounting standards


5. Review data and verify statements

Performance Criteria:

5.1 Identify significant strengths and weaknesses in controls and rank in accordance to audit objectives

5.2 Obtain and evaluate evidence on financial systems and controls under review using established testing procedures and in accordance with criteria identified in audit methodology

5.3 Test management assertions to achieve audit objectives

5.4 Gather sufficient appropriate audit evidence as basis for expert opinion

5.5 Verify financial statements as materially misstated or correct


6. Determine reporting formats

Performance Criteria:

6.1 Identify and document financial operational functions, services and systems in accordance with standard formats

6.2 Ensure format is consistent with documentation requirements of auditor and professional auditing standards

6.3 Formulate and provide financial audit opinions, including recommendations, to client in established and acceptable format

Learning Outcomes

Details of Learning Activities

Primarily you will be learning face to face, with an online course site (Canvas) 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 40 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.  

The hours of self-directed/self-paced learning by full-time students (8 of the 40 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 with reference to instructions regarding work to be completed outside teaching hours.

Induction Session for all students 

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

• Program overview and requirements
• MyRMIT/Canvas
• 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.






Class Work and Assessments

Elements and Performance Criteria














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


•Feedback in this course

•Reminder re submission requirements

•Getting help


Chapter 1 - Introduction and overview of Audit and Assurance


Discuss Course and all Assessment requirements



Review Questions

1.23 to 1.36, Research question


Globalisation - introduction and activity











Chapter 2 - Ethics, legal liability and client acceptance

Review Questions

2.23 to 2.34, 2.37, Research question




Chapter 4 - Risk Assessment 2






Review Questions

3.23 to 3.38, Research question






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











Review Questions

4.23 to 4.35, Research question


















In class Online Quiz 1 (Topics 1, 2, 3 and 4)

Any resits will be done in week 6.


Students allocated to team and topics discussed for chapter presentations


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




1.1, 1.2, 1.3, 2.1, 2.2, 3.1, 3.2, 3.3, 3.4, 4.1 and 4.2


Chapter 5 - Audit Evidence






Resits of Quiz 1

Review Questions

5.23 to 5.37, Research question




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



Review Questions

6.23 to 6.32, Research question




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




Review Questions

7.23 to 7.32, Research question






Discussion of case study - relevance to topic(s) – Pitstop 1






Online Quiz 2 (Topics 5 to 7, to be done in class)

Any resits will be done in week 10.




1.1, 1.2, 1.3, 2.1, 2.2, 3.1, 3.2, 3.3, 3.4, 4.1 and 4.2


Chapter 8 - Execution of the audit - testing of controls






Resits of Quiz 2 


Review Questions

8.23 to 8.30, 8.36 and 8.37, Research Question 


19/04/2019 to 28/04/2019





Chapter 9 - Execution of the audit - performing substantive procedures



Discussion of case study - relevance to topic(s) – Pitstop 2







Review Questions

9.23 to 9.32



Chapter 10 - Substantive testing and balance sheet accounts




Discussion of case study - relevance to topic(s) - Pitstop 3





Review Questions

10.24 to 10.29, 10.33 to 10.35



Chapter Presentations on topic 10





Chapter 11 - Substantive testing and income statement accounts



Discussion of case study - relevance to topic(s) – Pitstop 4





Review Questions

11.23 to 11.27 



Chapter Presentations on topic11







Chapter 12 - Completing and reporting on the audit



Review Questions

12.23 to 12.29 


Chapter presentations on topic 12 







Presentation and submission of Audit Report to Committee



Case Study Audit Report Presentation and 10-minute Presentation by teams


All the elements from 1 to 6




Re-submissions for case study



  1. Mid semester break will be from 19 April, 2019 to 28 April, 2019. Classes will resume from 29/04/2019.
  2. The teaching schedule is subject to change in exceptional circumstances.  Notification of changes can be made directly in class by the teacher, emailed to each student.

Learning Resources

Prescribed Texts


Auditing: A Practical Approach, 3rd Edition Robyn Moroney, Fiona Campbell, Jane Hamilton


Other Resources

Overview of Assessment

Performance Evidence

Evidence of the ability to:

  • assess client risk and determine financial audit strategy and methodology
  • schedule resources and timelines, and monitor progress
  • review data, verify financial statements and determine reporting formats that comply with:
  • organisational financial internal control policy and procedures
  • relevant legislative requirements and professional standards.


Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • identify and explain the key features of current financial legislation and statutory requirements relating to internal control, taxable transactions and reporting requirements
  • identify and explain the key features of current, relevant professional accounting standards
  • outline the duties and responsibilities of auditors
  • discuss professional standards and ethical considerations for management and handling of files and records
  • identify and explain the key principles of:
  • auditing
  • internal control
  • compare and contrast testing procedures and methods of enquiry.


Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

  • common office equipment, technology, software and consumables
  • an integrated financial software system and data.


Assessors must satisfy NVR/AQTF assessor requirements.

You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.


Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course. 

Assessment Tasks

There will be 3 assessments and all students are required to successfully complete these to be deemed competent in this course.  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 CAG. The grade applied will only be awarded if a CAG has been achieved in all compulsory assessment tasks. Grades for each assessment after competency has been achieved are from lowest to highest, CAG (competent), CC (Credit), CDI (Distinction) and CHD (High Distinction).

If a student has been marked NYC (Not Yet Competent) in any of the assessment tasks, then competency, a CAG has not been obtained. If a CAG is achieved on re-assessment then only a competent (CAG) 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 Assessment Record Cover Sheet for each assessment and the Graded Assessment Grading Sheet. The indicators described above are detailed further in this document together with the three assessments.


Assessment Task/Titles: 

The three assessment tasks are:

1. Online quizzes

Part 1: Will be due in week 5. It will be based on topics 1 to 4 ( Introduction to auditing , legal liability and risk assessment). It will be an open book, multiple choice quiz.

Part 2: Will be due in week 9. It will be based on topics 5 to 7 ( audit evidence, internal controls and sampling) 

2. Team Presentation:

All students will be divided into teams of 2-3 and be allocated a topic. 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 CAG (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, CAG (competent), CC (Credit), CDI (Distinction) or CHD (High Distinction).

3. Assignment – Workplace Audit Simulation:

All students will be divided in the teams of 2-3. 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 presentation in-class based around this report but as a “snap-shot” only.

Please note that with regard to the case study, each group will be required to demonstrate to their teacher their progress throughout the semester, which are referred to as Pitstops. These three Pitstops have been scheduled for weeks 10, 12 and 14 for the full-time students and weeks 9, 11 and 13 for the Flexed students.  In these Pitstops, each student as part of a team is required to attend, demonstrate and evidence what progress and work on the case study has been completed to that point. Failure to attend or not be at the required stage as per the teacher’s requirement for each Pitstop will result in each student and/or the group not being awarded a higher mark for the case study or even a fail.

This assessment is competency based and a CAG (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, CAG (competent), CC (Credit), CDI (Distinction) or CHD (High Distinction).

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.


You can be asked to reproduce any assessment piece in front of your teacher.

Assessment Matrix


National Program Code and Name

FNS60215 Advance Diploma of Accounting

Code & Name of Unit of Competency

FNSACC602 – Audit and report on financial systems and records



Name of Assessment Task

Method of Assessment


Performance Criteria

Foundation Skills

Performance Evidence

Knowledge Evidence

Assessment Conditions


Online Quizzes

Mutiple choice questions

E1 to E4

1, 2, 4 & 5





Case Study


E1 to E6






Team Presentations

Chapter Presentation


1, 2, 3, 6 & 7




















Other Information

Submission Requirements


 You should: 

·   Ensure that you submit assessments on or before the due date. 

·   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 each assessment task 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.   For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.


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:


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:


Resubmissions (VET Programs):

If you are found to be unsuccessful 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:


Marking Guide (Competency): 

You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying. 

You will receive feedback on each assessment task that will inform you about your progress and how well you are performing.


 Marking Guide (Grading) 

After achieving competency we then grade your performance in the unit and you will achieve one of the following grades: 

Final Grades table:




Competent with High Distinction




Competent with Distinction




Competent with Credit




Competency Achieved – Graded




Not Yet Competent




Did Not Submit for assessment


Course Overview: Access Course Overview