Course Title: Audit and report on financial systems and records
Part B: Course Detail
Teaching Period: Term1 2024
Course Code: ACCT5388C
Course Title: Audit and report on financial systems and records
School: 525T Business & Enterprise
Campus: City Campus
Program: C6181 - Advanced Diploma of Accounting
Course Contact: Doug Gourlay
Course Contact Phone: +61 3 9925 5944
Course Contact Email: doug.gourlay@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
Course Coordinator :
Meetu Aggarwal
E-mail: meetu.aggarwal@rmit.edu.au
Ph: 9925 1621
Contact timings:
Monday to Friday: 8:30am - 5:00pm
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
The following unit is a pre-requisite for this unit:
ACCT5443C (FNSACC526) 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 |
Element: |
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 |
Element: |
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 |
Element: |
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 |
Element: |
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 |
Element: |
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 |
Element: |
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.
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.
Week |
Week Beginning |
Class work and assessments |
1 |
12 Feb 2024 |
Chapter 1 Introduction to Auditing Chapter 13 Auditing Various Entities
|
2 |
19 Feb 2024 |
Case study made available on Canvas - to discuss in detail with class
|
3 |
26 Feb 2024 |
Chapter 2 - Auditing as a profession Chapter 3 - Audit standards Release of Online Quiz 1
|
4 |
4 Mar 2024 |
Chapter 4 - Stages of the audit process Release of Online Quiz 2
|
5 |
11 Mar 2024 |
Chapter 5 - Acceptance, engagement and planning |
6 |
18 Mar 2024 |
Chapter 6 - Audit Risk and Evidence |
7 |
25 Mar 2024 |
Chapter 7 - Analytical review |
Mid Semester Break 29 March to 7 April 2024 | ||
8 |
8 April 2024 |
Chapter 8 - Preliminary evaluation of internal controls Discussion of case study - relevance to chapter(s) – Pitstop 1
|
9 |
15 April 2024 |
Chapter 9 - Compliance testing Submission of Part A and B of Case Study Feedback will be provided in week 10 and re-submissions in week 11 |
10 |
22 April 2024 |
Chapter 10 - Substantive testing |
11 |
29 April 2024 |
Chapter 11 - Substantive audit programs Discussion of case study - relevance to chapter(s) – Pitstop 2
|
12 |
6 May 2024 |
Chapter 12 - Completion and reports Discussion of case study - relevance to chapter(s) - Pitstop 3
|
13 |
13 May 2024 |
Discussion of case study - relevance to chapter(s) - Pitstop 4
Submission of Part C of Case Study Feedback will be provided in week 14 and re-submissions in week 15
|
14 |
20 May 2024 |
Discussion on Part D & E of Case Study
|
15 |
27 May 2024 |
Presentation of Audit findings to Management
Submission of Part D & E of Case Study
|
16 |
3 Jun 2024 |
Re-submissions |
17 |
10 Jun 2024 |
Re-submissions |
18 |
17 Jun 2024 |
Re-submissions |
This weekly schedule can change because of unforeseen circumstances. |
Learning Resources
Prescribed Texts
Audit and Report on Financial Systems and Records by Lee Homewood, 4th edition by Better Team Publications |
9781760739263 |
References
Other Resources
Overview of Assessment
In order to achieve competency in this unit, you must provide:
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
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 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
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
Major Assessment (Due date: Week 9, 13 and 15)
There are a total of five (5) parts in this assessment that students need to complete, to be deemed competent for this unit. This assessment is to be completed individually.
The students will be provided with the information about a company called “Red Earth Pty. Ltd,” from where they will be required to conduct a detailed audit on the financial systems and records of a company, in their own time.
They will also be presenting their audit findings to the management of the business so that it can adjust its financial statements and improve internal controls as suggested by the students.
They will also be preparing a draft audit report after determining appropriate reporting format.
This assessment is competency based and a CA (competent) must be achieved in all five parts of this assessment.
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 re-produce any part of the assessment in front of your teacher.
Assessment Matrix
It will be uploaded on Canvas. Your teacher will discuss it for each assessment with the class at the beginning of the semester and prior to the assessment taking place.
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 result you will receive if your resubmission is successful is “CA”.
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. You will achieve one of the following results:
Final results table:
CA Competency Achieved
NYC Not Yet Competent
DNS Did Not Submit Assessment
Course Overview: Access Course Overview