Assessor Resource

FNSACC606A
Conduct internal audit

Assessment tool

Version 1.0
Issue Date: May 2024


The unit can be applied across a variety of financial services sectors and has application to those job functions that have responsibility to conduct internal audits such as accountants and quality assurance managers.

This unit describes the performance outcomes, skills and knowledge required to evaluate information systems and assess an organisation's risks as part of an internal audit process.

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.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

FNSACC506A

Implement and maintain internal control procedures

Employability Skills

This unit contains employability skills.



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

use internal control systems and meet organisational policies and procedures

apply professional accounting standards in identifying strengths and weakness within organisational policies and procedures

evaluate information systems

develop implementation plans

review resources and monitor plans.

Context of and specific resources for assessment

Assessment of performance requirements in this unit should be Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to an integrated financial software system and data.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

Required skills

high level communication skills to:

determine and evaluate financial systems by consulting with staff on internal control procedures and using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed research and analysis skills for accessing and managing complex information

well-developed literacy skills for interpreting and analysing complex documentation including relevant legislation and producing audit reports

highly developed numeracy skills to accurately analyse, record and store data in accordance with organisational requirements and identify repeating errors and diagnose problems in financial recording

well-developed IT skills for accessing and using integrated financial systems, spreadsheets and databases and internet information

learning skills to maintain knowledge of changes to compliance legislation and requirements

problem solving skills to identify any issues that have the potential to impact on the organisation and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence and timetable the introduction of new systems and processes

Required knowledge

ethical considerations for records and file management such as confidentiality

relevant financial legislation such as:

taxable transactions

reporting requirements

principles of internal control including statutory requirements

wide knowledge of recording and information management systems and software applicable to financial recording

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

System specifications may include:

changing needs

client compatibilities

financial analysis functions

logical data models such as database design

networking capacities

processing capacities:

system size

speed

software:

upgrades

legacies

Security requirements may include:

data storage requirements

encrypted data

limited personnel access

passwords

read only files requirements

virus scanning.

Risk management strategies may include:

comparative analysis

decision making authorities

forecasting

periodic reporting

policy statements

quantification of risks.

Internal control systems and procedures may include:

accuracy in valuations

compliance testing

decision making authorities

identification, measurement and recording of:

income

assets

expenditure

liabilities

equity

risk management strategies

safeguarding and insurance of assets

transparency in financial reporting.

Strengths and weakness of organisational processes may include:

attitudes to change

compliance with internal procedures

computer literacy using skills profiles

decision making authorities

documented procedures

recording systems

work practices.

Implementation may include:

budgeting

consultation

documentation and guidelines

evaluation

feedback

staged introduction

testing.

Professional accounting standards may include:

Auditing Guidance Statements

Australian Accounting Standards

Australian Accounting Standards Board (AASB) requirements

Australian Auditing Standards

ethical requirements

Superannuation Industry (Supervision) (SIS) Act requirements.

Short-term and long-term objectives may include:

budgetary targets:

quarterly

half-yearly

annual

client development

investment realisations

monthly cash flows

profit growth

sales and revenues targets.

Sources of input data and documentation may include:

invoices

purchase orders

receipts

requisitions

system reports.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
System specifications are evaluated against user requirements and feedback to identify redundancies and constraints, and capacities of information technology 
Hardware and software needs are identified from assessment of available products and services 
Possible uses and handling of accounting data are evaluated in consultation with users to determine security requirements 
Organisational procedures and policies are analysed to evaluate scope of strategies for risk management, internal control of expenditure and compliance with statutory requirements 
Enquiries regarding use of systems are monitored and recorded to ensure ongoing evaluation 
Principles, procedures and processes arising from internal control systems are examined to determine implementation issues relevant to organisational processes 
Strengths and weaknesses of organisational processes, including present and future capacities, are analysed and incorporated in the implementation plan 
Implementation is designed to cover outcomes, resource use, costs and the achievement and maintenance of professional accounting standards 
Schedules are established that are realistic and feasible in the context of the organisation's short-term and long-term objectives 
Sources of data input are monitored to identify influences and variations in returns and costs 
Estimates of stock levels are monitored and reviewed to ensure appropriate stocking and ordering of materials and inventory items 
Records of resource use are compared with unit cost estimates to evaluate projected costs 
Factors influencing resource use in the future are analysed to assess impact on operations and objectives 
Implementation is adjusted to take account of emerging external influences and the establishment of alternative targets 
Costs of plans are monitored and controlled by evaluating net benefits to operations from the allocation of resources 
Internal control systems are adjusted to ensure the maintenance and achievement of accounting standards 

Forms

Assessment Cover Sheet

FNSACC606A - Conduct internal audit
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSACC606A - Conduct internal audit

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: