Unit of competency
Modification History
Release |
Comments |
Release 3 |
This version first released with FNS Financial Services Training Package Version 8.2. Update to prerequisite unit code. |
Release 2 |
This version first released with FNS Financial Services Training Package Version 3.1. Updates to pre-requisite unit code |
Application
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.
Pre-requisite Unit
FNSACC526 |
Implement and maintain internal control procedures |
Unit Sector
Accounting
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Assess options |
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 |
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 |
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 |
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 |
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 |
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 |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill |
Performance Criteria |
Description |
Reading |
1.1, 1.2, 2.1, 3.1, 3.3, 5.1- 5.3 |
|
Writing |
1.3, 4.2, 5.1, 5.5, 6.1-6.3 |
|
Oral Communication |
3.3, 4.2, 6.3 |
|
Numeracy |
2.1, 3.3, 3.4, 4.1, 5.1, 5.2, 5.4 |
|
Navigate the world of work |
1.1, 1.3, 3.3, 5.1, 5.2, 6.1, 6.2 |
|
Interact with others |
3.3, 4.2, 6.3 |
|
Get the work done |
1.1-1.3, 2.1, 2.2, 3.2-3.4, 4.1, 4.2, 5.1-5.6, 6.3 |
|
Unit Mapping Information
Code and title current version |
Code and title previous version |
Comments |
Equivalence status |
FNSACC602 Audit and report on financial systems and records |
FNSACC602A Audit and report on financial systems and records |
Updated to meet Standards for Training Packages |
Equivalent unit |
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe