Modification History
Not applicable.
Unit Descriptor
This unit covers the competency to supervise an audit of financial systems and prepare the appropriate reports.
This unit covers the competency to supervise an audit of financial systems and prepare the appropriate reports.
Application of the Unit
This unit requires the application of skills and knowledge requires to audit and report of financial systems and records. The unit encompasses assessing options, identifying information sources, determining audit strategies, scheduling resources and timelines and monitoring progress, reviewing data, verifying statements and determining reporting formats.
The auditing and reporting of financial systems and records can be applied to all sections of the financial services industry.
This unit requires the application of skills and knowledge requires to audit and report of financial systems and records. The unit encompasses assessing options, identifying information sources, determining audit strategies, scheduling resources and timelines and monitoring progress, reviewing data, verifying statements and determining reporting formats.
The auditing and reporting of financial systems and records can be applied to all sections of the financial services industry.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
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.
Elements and Performance Criteria Pre-Content
Elements define the essential outcomes of a unit of competency.
Performance Criteria describe the required performance needed to demonstrate achievement of the Element. Bold, italicised terms are elaborated in the Range Statement. Assessment of performance is to be consistent with the Evidence Guide.
Elements define the essential outcomes of a unit of competency.
Performance Criteria describe the required performance needed to demonstrate achievement of the Element. Bold, italicised terms are elaborated in the Range Statement. Assessment of performance is to be consistent with the Evidence Guide.
Elements and Performance Criteria
Elements and Performance Criteria |
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Element |
Performance Criteria |
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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 |
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1.3 |
Audit methodologies are developed to identify significant features of the audit and establish criteria for conducting the audit in accordance with professional auditing standards |
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2 |
Identify information sources |
2.1 |
Audit data sources are identified from evaluation of organisation's information systems |
2.2 |
Audit lines of inquiry are created to support audit objectives and reduce audit risk to an acceptable level |
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3 |
Determine audit strategies |
3.1 |
Knowledge of the client is established from the economy, the industry and the client's business |
3.2 |
Client's inherent risk is assessed through value chain risk analysis |
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3.3 |
Internal control procedures are identified through discussion with the client and established professional standards |
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3.4 |
Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing |
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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 |
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4.3 |
Resource allocations and timeframes are adjusted through discussion and agreement with the client and in accordance with professional accounting standards |
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4.4 |
Resourcing needs and the allocation of personnel, time and equipment are assessed and identified within the scope of the audit methodology |
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5 |
Review data |
5.1 |
Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives |
5.2 |
Evidence on systems and controls under review is obtained and evaluated using established testing procedures and in accordance with criteria identified in audit methodology |
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5.3 |
Management assertions are tested to achieve audit objectives |
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6 |
Verify statements |
6.1 |
Sufficient appropriate audit evidence has been gathered as a basis for an opinion |
6.2 |
Financial statements are verified as materially misstated or not |
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7 |
Determine reporting formats |
7.1 |
Operational functions, services and systems are identified and documented in accordance with standard formats |
7.2 |
Format is consistent with documentation requirements of the auditor and professional auditing standards |
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7.3 |
Audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format |
Required Skills and Knowledge
REQUIRED KNOWLEDGE &SKILLS |
Knowledge requirements include : testing procedures and methods of inquiry principles of internal control (including statutory requirements) current financial legislation (eg taxable transactions, reporting requirements) duties and responsibilities of auditors principles of auditing current knowledge of relevant professional accounting standards ethical considerations for management and handling of files and records (eg confidentiality, disclosure) |
Skills requirements include : interpersonal skills and communication skills (eg liaising, listening, consulting) report writing and preparation capacity to maintain confidences and operate with discretion diagnostic skills for identifying problems and solutions interpretation of legislation recording, gathering and consolidating financial information use computers, organisational accounting software systems, spreadsheet software systems and telecommunication devices |
Evidence Guide
EVIDENCE GUIDE |
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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. |
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Overview of assessment requirements |
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To achieve competency in this unit, a person must be able to demonstrate: knowledge of organisational policies and procedures knowledge of relevant professional standards knowledge of internal control procedures ability to access options ability to identify information sources ability to determine audit strategies ability to schedule resources and timelines and monitor progress ability to review data ability to verify statements ability to determine reporting formats |
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Critical aspects of evidence |
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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 |
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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. |
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Statutory requirements may include: |
reporting periods taxation payment timings delegated authorities internal control procedures taxable transactions |
Client objectives may include: |
reduction in tax liabilities financial consolidation compliance adherence asset development administrative efficiency |
Audit methodologies may include: |
gathering and evaluating data compliance and substantive testing interpretation of compliance with statutory requirements application of criteria from recognised authorities examination of processes and procedures of internal control analysis of documentation assessment of commercial viability valuation of assets |
Data sources may include: |
budgets and forecasts financial statements and reports market valuations Australian Bureau of Statistics (ABS) economic data financial markets monitoring services (eg Reuters) credit ratings cash flow |
Audit lines of inquiry may include: |
evaluation of achievement of accounting system objectives assessment of objectives of internal control accounting staff management specialist and expert advice company officers operation and strategic plans |
Internal control procedures may 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 |
Established professional 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 |
Testing procedures may include: |
interviews with personnel concerning the performance of duties observation of personnel inspection of documentation for evidence of control procedures reconstruction of accounting routines achievement of debt repayment schedules submission of statutory returns |
Systems may include: |
financial information systems personal information systems recording and filing systems communication and distribution systems data bases decision making authorities |
Unit Sector(s)
Not applicable.
Relationship to other units
This unit replaces FNSACCT602A.
This unit replaces FNSACCT602A.