Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSACC602A Mapping and Delivery Guide
Audit and report on financial systems and records

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSACC602A - Audit and report on financial systems and records
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.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application This unit applies to all sectors of the financial services industry and job roles such as accountant and financial auditor.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites FNSACC506A Implement and maintain internal control procedures
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Assess options
  • Statutory requirements are identified from assessment of terms of reference and client objectives and obligations
  • Client activities and procedures are reviewed and analysed to establish familiarity with systems and guide the selection of appropriate audit methodologies
  • 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
       
Element: Identify information sources
  • Audit financial data sources are identified from evaluation of organisation's information systems
  • Audit lines of enquiry are created to support audit objectives and reduce audit risk to an acceptable level
       
Element: Determine audit strategies
  • Client financial business characteristics are established from analysis of the general economy, the industry and the client's provided information
  • Client's inherent financial risk is assessed through value chain risk analysis
  • Internal control procedures for financial transactions are identified through discussion with the client and established professional standards
  • Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing
       
Element: Schedule resources and timelines and monitor progress
  • Timeframes are established and personnel allocated to functions and tasks based on audit lines of inquiry
  • 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
       
Element: Review data and verify statements
  • Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives
  • 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
  • Management assertions are tested to achieve audit objectives
  • Sufficient appropriate audit evidence is gathered as a basis for an expert opinion
  • Financial statements are verified as materially misstated or correct
       
Element: Determine reporting formats
  • Financial operational functions, services and systems are identified and documented in accordance with standard formats
  • Format is consistent with documentation requirements of the auditor and professional auditing standards
  • Financial audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format
       


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:

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.

Context of and specific resources for assessment

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 and 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, assignment, 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 confirm corporate audit requirements and procedures using questioning and active listening as required

liaise with others, share information, listen and understand while maintaining confidences and ethical practices

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, financial reports and for producing audit reports

well-developed numeracy skills to accurately analyse, record and store data in accordance with professional and organisational requirements

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

learning skills to maintain knowledge of changes to auditing legislation and professional requirements

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

organisational skills, including the ability to plan and sequence work

Required knowledge

current financial legislation such as:

taxable transactions

reporting requirements

current knowledge of relevant professional accounting standards

duties and responsibilities of auditors

ethical considerations for management and handling of files and records such as:

confidentiality

disclosure

principles of auditing

principles of internal control including statutory requirements

testing procedures and methods of inquiry

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.

Statutory requirements may include:

delegated authorities

internal control procedures

reporting periods

taxable transactions

taxation payment timings.

Client objectives may include:

administrative efficiency

asset development

compliance adherence

financial consolidation

reduction in tax liabilities.

Financial audit methodologies may include:

analysis of documentation

application of criteria from recognised authorities

assessment of commercial viability

compliance and substantive testing

examination of processes and procedures of internal control

gathering and evaluating data

interpretation of compliance with statutory requirements

valuation of assets.

Data sources may include:

Australian Bureau of Statistics (ABS) economic data

budgets and forecasts

cash flow

credit ratings

financial markets monitoring services

financial statements and reports

market valuations.

Audit lines of enquiry may include:

questioning accounting staff and company officers

assessment of objectives of internal control

evaluation of achievement of accounting system objectives

management structure and practices

operation and strategic plans

specialist and expert advice.

Internal control procedures may include:

accuracy in valuations

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.

Established professional standards may include:

Auditing Guidance Statements

Australian Accounting Standards

Australian Accounting Standards Board (AASB) requirements

Australian Auditing Standards

ethical principles and professional practise

Superannuation Industry (Supervision) (SIS) Act.

Testing procedures may include:

achievement of debt repayment schedules

inspection of documentation for evidence of control procedures

interviews with personnel concerning the performance of duties

observation of personnel

reconstruction of accounting routines

submission of statutory returns.

Systems may include:

communication and distribution systems

databases

decision making authorities

financial information systems

personal information systems

recording and filing systems.

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
Statutory requirements are identified from assessment of terms of reference and client objectives and obligations 
Client activities and procedures are reviewed and analysed to establish familiarity with systems and guide the selection of appropriate audit methodologies 
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 
Audit financial data sources are identified from evaluation of organisation's information systems 
Audit lines of enquiry are created to support audit objectives and reduce audit risk to an acceptable level 
Client financial business characteristics are established from analysis of the general economy, the industry and the client's provided information 
Client's inherent financial risk is assessed through value chain risk analysis 
Internal control procedures for financial transactions are identified through discussion with the client and established professional standards 
Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing 
Timeframes are established and personnel allocated to functions and tasks based on audit lines of inquiry 
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 
Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives 
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 
Management assertions are tested to achieve audit objectives 
Sufficient appropriate audit evidence is gathered as a basis for an expert opinion 
Financial statements are verified as materially misstated or correct 
Financial operational functions, services and systems are identified and documented in accordance with standard formats 
Format is consistent with documentation requirements of the auditor and professional auditing standards 
Financial audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format 

Forms

Assessment Cover Sheet

FNSACC602A - Audit and report on financial systems and records
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

FNSACC602A - Audit and report on financial systems and records

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: