Modification History
Not applicable.
Unit Descriptor
Unit descriptor |
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. |
Application of the Unit
Application of the unit |
This unit applies to all sectors of the financial services industry and job roles such as accountant and financial auditor. |
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Prerequisite units |
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FNSACC506A |
Implement and maintain internal control procedures |
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Employability Skills Information
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
Elements describe the essential outcomes of a unit of competency. |
Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1. Assess options |
1.1. Statutory requirements are identified from assessment of terms of reference and client objectives and obligations 1.2. Client activities and procedures are reviewed and analysed to establish familiarity with systems and guide the selection of appropriate audit methodologies 1.3. 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 |
2. Identify information sources |
2.1. Audit financial data sources are identified from evaluation of organisation's information systems 2.2. Audit lines of enquiry are created to support audit objectives and reduce audit risk to an acceptable level |
3. Determine audit strategies |
3.1. Client financial business characteristics are established from analysis of the general economy, the industry and the client's provided information 3.2. Client's inherent financial risk is assessed through value chain risk analysis 3.3. Internal control procedures for financial transactions are identified through discussion with the client and established professional standards 3.4. Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing |
4. Schedule resources and timelines and monitor progress |
4.1. Timeframes are established and personnel allocated to functions and tasks based on audit lines of inquiry 4.2. 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 |
5. Review data and verify statements |
5.1. Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives 5.2. 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 5.3. Management assertions are tested to achieve audit objectives 5.4. Sufficient appropriate audit evidence is gathered as a basis for an expert opinion 5.5. Financial statements are verified as materially misstated or correct |
6. Determine reporting formats |
6.1. Financial operational functions, services and systems are identified and documented in accordance with standard formats 6.2. Format is consistent with documentation requirements of the auditor and professional auditing standards 6.3. Financial audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format |
Required Skills and Knowledge
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the skills and knowledge required for this unit. |
Required skills |
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Required knowledge |
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Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment |
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Critical aspects for assessment and evidence required to demonstrate competency in this unit |
Evidence of the ability to:
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Context of and specific resources for assessment |
Assessment must ensure:
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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:
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Guidance information for assessment |
Range Statement
RANGE STATEMENT |
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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. |
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Statutory requirements may include: |
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Client objectives may include: |
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Financial audit methodologies may include: |
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Data sources may include: |
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Audit lines of enquiry may include: |
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Internal control procedures may include: |
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Established professional standards may include: |
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Testing procedures may include: |
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Systems may include: |
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Unit Sector(s)
Unit sector |
Accounting |
Competency field
Competency field |
Co-requisite units
Co-requisite units |
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