Application
This unit requires the application of skills and knowledge required to conduct an internal audit. The unit encompasses evaluating information systems, developing implementation plans, reviewing resources and monitoring plans.
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 requires the application of skills and knowledge required to conduct an internal audit. The unit encompasses evaluating information systems, developing implementation plans, reviewing resources and monitoring plans.
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.
Prerequisites
Not applicable.
Elements and Performance Criteria
Elements and Performance Criteria | |||
Element | Performance Criteria | ||
1 | Evaluate information systems | 1.1 | System specifications are evaluated against user requirements and feedback to identify redundancies and constraints, and capacities of information technology |
1.2 | Hardware and software needs are identified from assessment of available products and services | ||
1.3 | Possible uses and handling of accounting data are evaluated in consultation with users to determine security requirements | ||
1.4 | Organisational procedures and policies are analysed to evaluate scope of strategies for risk management, internal control of expenditure and compliance with statutory requirements | ||
1.5 | Enquiries regarding use of systems are monitored and recorded to ensure ongoing evaluation | ||
2 | Develop implementation plans | 2.1 | Principles, procedures and processes arising from internal control systems are examined to determine implementation issues relevant to organisational processes |
2.2 | Strengths and weaknesses of organisational processes, including present and future capacities, are analysed and incorporated in the implementation plan | ||
2.3 | Implementation is designed to cover outcomes, resource use, costs and the achievement and maintenance of professional accounting standards | ||
2.4 | Schedules are realistic and feasible in the context of the organisation's short and long term objectives | ||
3 | Review resource use | 3.1 | Sources of data input are monitored to identify influences and variations in returns and costs |
3.2 | Estimates of stock levels are monitored and reviewed to ensure appropriate stocking and ordering of materials and inventory items | ||
3.3 | Records of resource use are compared with unit cost estimates to evaluate projected costs | ||
3.4 | Factors influencing resource use in the future are analysed to assess impact on operations and objectives | ||
4 | Monitor plans | 4.1 | Implementation is adjusted to take account of emerging external influences and the establishment of alternative targets |
4.2 | Costs of plans are monitored and controlled by evaluating net benefits to operations from the allocation of resources | ||
4.3 | Internal control systems are adjusted to ensure the maintenance and achievement of accounting standards |
Required Skills
REQUIRED KNOWLEDGE&SKILLS |
Knowledge requirements include: principles of internal control (including statutory requirements) wide knowledge of recording and information management systems and software applicable to financial recording financial legislation (eg taxable transactions, reporting requirements) ethical considerations for records and file management (eg confidentiality) |
Skills requirements include: research skills for tracing use of financial data planning skills for evaluating routines for handling data capacity to troubleshoot information technology systems timetabling skills for overseeing the introduction of new systems and processes capacity to identify repeating errors and diagnose problems in financial recording writing skills for reporting and documenting procedures |
Evidence Required
EVIDENCE GUIDE | |
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace. | |
Overview of assessment requirements | |
To achieve competency in this unit, a person must be able to demonstrate: knowledge of internal control systems knowledge of organisational policies and procedures knowledge of professional accounting standards ability to identify strengths and weakness within organisational policies and procedures ability to evaluate information systems ability to develop implementation plans ability to review resources ability to monitor plans | |
Critical aspects of evidence | |
Evidence required for demonstration of consistent performance: | Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment. |
Delivery/assessment relationship to other units: | Prerequisite units: FNSACCT506B Implement and maintain internal control procedures. |
Assessment requirements | |
Method of assessment: | For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance. Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required. |
Context of assessment: | Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability. Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements. |
Resources required for assessment: | Assessment of this unit of competence requires access to suitable resources to demonstrate competence. Assessment instruments, including personal planner and assessment record book. Access to registered provider of assessment services. |
Range Statement
The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance. The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement. | |
System specificationsmay include: | logical data models (eg data base design) software (upgrades and legacies) changing needs client compatibilities financial analysis functions processing capacities (eg system size, speed) networking capacities |
Security requirementsmay include: | limited personnel access passwords encrypted data read only files requirements virus scanning data storage requirements |
Risk management strategies may include: | quantification of risks periodic reporting decision making authorities policy statements forecasting comparative analysis |
Internal control systems and proceduresmay include: | identification, measurement and recording of income, assets, expenditure, liabilities and equity safeguarding and insurance of assets decision making authorities accuracy in valuations transparency in financial reporting risk management strategies compliance testing |
Strengths and weakness of organisational processesmay include: | computer literacy (eg skills profiles) compliance with internal procedures documented procedures |
recording systems work practices attitudes to change decision making authorities | |
Implementationmay include: | testing feedback consultation staged introduction evaluation documentation and guidelines budgeting |
Professional accounting standards may include: | Australian Accounting Standards Board (AASB) Australian Accounting Standards Australian Auditing Standards Auditing Guidance Statements ethical requirements Superannuation Industry (Supervision) (SIS) Act 1993 |
Short and long term objectives may include: | budgetary targets (eg quarterly, half yearly, annual) sales and revenues targets monthly cash flows investment realisations client development profit growth |
Sources of input data and documentation may include: | invoices purchase orders requisitions receipts system reports |
Sectors
Not applicable.
Employability Skills
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Licensing Information
Not applicable.