CONDUCT INTERNAL AUDIT

103 views 11:01 am 0 Comments June 27, 2023

Assessment Instruction

CONDUCT INTERNAL AUDIT – FNSACC606

Instructions

You are advised to commence work on your assessment from week 1 and all tasks must be submitted by the due dates provided.

All assessments must be completed and delivered individually. Where an assessment involves group discussions, you should consider the input of your group but submit an individual assessment to your trainer.

Please read all instructions on completing each assessment. Instructions for completion are provided at the beginning of each assessment.

All written answers must be typed in a word document using Arial font, 12 size and single spacing if similar instructions are not provided in the assessment.

Your trainer will not be able to assist you in answering questions. However, your trainer will address any issues concerning questions requiring further explanation.

You may refer to your student learning resources or any other relevant resources when completing your assessment.

Assessments are due for submission as specified in the assessment schedule. Any variations to this arrangement must be approved by your trainer prior to the due date for submission.

You have access to computers which are equipped with Microsoft suite of products or any other relevant software and printing facility.

Use assessment templates if provided, to complete relevant sections of the assessment. You can also create your known templates for assessment evidence.

You must achieve a satisfactory result for all tasks to achieve competency in this unit.

All assessment answers should be submitted to the trainer in required format (soft or hard copy) as per trainer instructions with completed assessment cover sheet (if required).

Assessment Schedule

Task

Due Date

Learning Activity Only

Week 1

Task 1

Week 2

Task 2

Week 3

These materials were originally developed by Enhance Your Future Pty Ltd but may now be altered from the original form. Enhance Your Future Pty Ltd does not accept any liability for the Materials, the content and/or any reliance thereon.’

Task 1: Theory Assessment

Student Instructions

Type all the answers in a word document if required.

You can conduct internet research to answer these questions.

Provide explanation of 2-3 lines when answering ‘Describe’ questions.

Provide detailed workings for calculations questions.

Provide answers in table format wherever possible.

Question 1 – Question and Answers

Answer the following questions in writing.

Identify at least 5 of the key consideration that are to be made when reviewing and evaluating the specifications of accounting information systems.

Identify at least 4 of the hardware and software needs of available products and services.

What information will you need to evaluate in consultation with the users to determine the security requirements?

Identify and briefly describe 4 possible uses for accounting data.

What are 5 of the organisation’s procedures and policies that may be analysed to evaluate the scope of strategies for risk management, internal control of expenditure and compliance with statutory requirements?

Why is it important to monitor and record all enquiries regarding the use of the systems?

Identify at least 4 of the types of internal controls that may be reviewed to determine implementation issues that could impact on organisational processes.

Briefly discuss a method that could be used to analyse the strengths and weaknesses of organisational processes before incorporating them into the implementation plan.

Identify the steps to follow to design an implementation plan that considers the outcomes, resource use, costs, and the achievement and maintenance of professional accounting standards.

What do you need to consider when establishing the schedules for the audit?

There are a range of in-depth reviewing and checking techniques that should be performed when monitoring sources of data input to identify influences and variations in returns and costs. What are 4?

Monitoring and reviewing estimates of stock levels will ensure appropriate stocking and ordering of materials and inventory items. What are 4 things that might be included in the system of stock control used?

How can you evaluate the projected costs?

Identify at least 5 of the factors that may influence resource use in the future that can be analysed to assess their impact on operations and objectives.

Identify at least 6 potential emerging external influences that the implementation would need to be adjusted to take account of, and will require the establishment of alternative targets.

What can you do to monitor and control the costs of the plans?

Why is it important to ensure the achievement of accounting standards?

Discuss two methods that could be used to identify any adjustments required to ensure the maintenance and achievement of accounting standards

What are the key features of risk management strategies?

Briefly discuss the ethical considerations you will need to identify and apply in relation to records and file management.

Compare and contrast recording and information management systems and software applicable to financial recording (100-150 words)?

Explain the key principles of internal control, including statutory requirements (100-150 words)?

Outline the key features of risk management strategies (100-150 words)?

Explain the key principles of internal control, including the associated statutory requirements.

Conduct some research and compare and contrast at least 3 different types of recording and information management systems and software applicable to financial recording, ensuring to discuss the pros, cons, and the cost of the products selected.

Identify the financial legislation that relates to taxable transactions and reporting requirements, and briefly explain the key features of the financial legislation identified.

Task 2: Case Study and Practical Assessment

Student Instructions

Type all the answers in a word document if required.

You can conduct internet research to answer these questions.

Provide explanation of 2-3 lines when answering ‘Describe’ questions.

Provide detailed workings for calculations questions.

Provide answers in table format wherever possible.

Question 1 – Internal Audit

For this task, you are to complete the following steps to conduct an internal audit that complies with organisational policy and procedures. Use the information provided in appendix for ‘SamVille Enterprises Pty Ltd’ to conduct the analysis and create a complete internal audit report. Please note the following additional information regarding the organisation:

Organisation uses MYOB accounting system for all its accounting processes. For more information about the system being implemented by the organisation, see link https://www.myob.com/au/accounting-software/essentials

Accounting Standards implemented can be accessed from the link provided: http://www.aasb.gov.au/Pronouncements/Current-standards.aspx

Additional Organisational policies and procedures: http://startupjunkies.com/extras/acct-policies.pdf

Perform each of the following steps to evaluate the information systems:

Evaluate the system specifications against the user’s requirements, any feedback provided by the user and use professional accounting standards to identify the capacities, redundancies, constraints, strengths and weaknesses of the available information technology systems.

Conduct an assessment of the available products and services to identify any hardware and software needs.

In consultation with the users, evaluate the possible uses and handling of accounting data to determine the security requirements.

Analyse the organisational procedures and policies to evaluate the scope of strategies to use for risk management, the internal control of expenditure and to ensure compliance with all statutory requirements.

Monitor and record enquiries received regarding the use of the systems to ensure there is an ongoing evaluation of the information system.

Complete the following steps to develop implementation plans:

Conduct an assessment and review of the internal control systems to determine if there are any implementation issues that may impact on the organisational processes.

Analyse and incorporate into the implementation plan the strengths and weaknesses of the organisational processes, including the present and future capacities.

Design an implementation plan to cover the outcomes, resource use, costs, and achievement and maintenance of professional accounting standards

Establish implementation schedules that are realistic and that are feasible in the context of the organisation’s short-term and long-term objectives.

Perform each of the following steps to review resource use:

Identify any influences and variations in returns and costs by monitoring sources of data input.

Ensure the appropriate stocking and ordering of materials and inventory items by monitoring estimates of stock levels, and reviewing as required.

Evaluate the projected costs by comparing records of the resource use with the unit cost estimates.

Analyse the factors that will influence future resource use to assess the impact on the operations and objectives.

Complete the following steps to monitor the plans:

Adjust the implementation as required to take account of any emerging external influences and the establishment of alternative targets.

Monitor and control the costs of the implementation plans by evaluating the net benefits to the operations from the allocation of resources.

Ensure maintenance and achievement of accounting standards by adjusting the internal control systems, as required.

The report should be a minimum of 1000 words and should be accurate and evidence provided through references. You may choose any relevant business report template for this task.

Role-Play

Once you have successfully completed the steps outlined above to conduct an internal audit and create the relevant report, you will explain to your General Manager (your assessor) the following points and will answer to all the queries of your GM.

The key considerations for reviewing the system requirements and specifications

The key principles of internal control, including the statutory requirements

Any ethical considerations identified for records and file management.

The key features of financial legislation considered, especially that relating to taxable transactions and reporting requirements.

The key features of the risk management strategies applied throughout the audit.

For above discussion, your assessor will be looking for:

Did the student participate in verbal exchanges?

Did the student demonstrate active listening and questioning techniques?

Selects and uses appropriate conventions and protocols when communicating with his team members

Communicate ideas and information in a manner which is appropriate and sensitive to the cultural and social diversity

Did the candidate collect relevant information from appropriate sources and analyses?

Adjust interpersonal styles and methods to meet organization’s social and cultural environment

Effectively engages others to elicit, clarify and convey information

Takes responsibility for planning, sequencing and prioritizing complex tasks and own workload for efficiency and effective outcomes

Develops plans to introduce new systems and processes with strategic implications for the organisation

Uses systematic analytical problem-solving processes in complex, routine and non-routine situations, gathering information and identifying and evaluating options against criteria

Evaluates the effectiveness of systems and processes to inform decisions on how to implement improvements

Actively identifies systems, devices and applications with potential to meet needs, including consideration of data security.

Appendix

Case Study Scenario – Sam Ville Entreprises Pty Ltd

Case Study Scenario – Policies and Procedures

References / recommended resources

Conduct internal audit – FNSACC606, Enhance Your Future.

Tags: , , , , , , , , , ,