Assessor Resource

FNSACC602
Audit and report on financial systems and records

Assessment tool

Version 1.0
Issue Date: May 2024


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.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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

Evidence of the ability to:

assess client risk and determine financial audit strategy and methodology

schedule resources and timelines, and monitor progress

review data, verify financial statements and determine reporting formats that comply with:

organisational financial internal control policy and procedures

relevant legislative requirements and professional standards.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify and explain the key features of current financial legislation and statutory requirements relating to internal control, taxable transactions and reporting requirements

identify and explain the key features of current, relevant professional accounting standards

outline the duties and responsibilities of auditors

discuss professional standards and ethical considerations for management and handling of files and records

identify and explain the key principles of:

auditing

internal control

compare and contrast testing procedures and methods of enquiry.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

common office equipment, technology, software and consumables

an integrated financial software system and data.

Assessors must satisfy NVR/AQTF assessor requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

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

Evidence of the ability to:

assess client risk and determine financial audit strategy and methodology

schedule resources and timelines, and monitor progress

review data, verify financial statements and determine reporting formats that comply with:

organisational financial internal control policy and procedures

relevant legislative requirements and professional standards.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify and explain the key features of current financial legislation and statutory requirements relating to internal control, taxable transactions and reporting requirements

identify and explain the key features of current, relevant professional accounting standards

outline the duties and responsibilities of auditors

discuss professional standards and ethical considerations for management and handling of files and records

identify and explain the key principles of:

auditing

internal control

compare and contrast testing procedures and methods of enquiry.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

common office equipment, technology, software and consumables

an integrated financial software system and data.

Assessors must satisfy NVR/AQTF assessor requirements.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify statutory requirements from assessment of terms of reference, and client objectives and obligations 
Review and analyse client activities and procedures to establish familiarity with systems and guide selection of appropriate audit methodologies 
Develop financial audit methodologies to identify significant features of audit and establish criteria for conducting audit in accordance with professional auditing standards 
Identify audit financial data sources from evaluation of organisation’s information systems 
Create audit lines of enquiry to support audit objectives and reduce audit risk to acceptable level 
Establish client financial business characteristics from analysis of general economy, industry and client’s provided information 
Assess client’s inherent financial risk through value chain risk analysis 
Identify internal control procedures for financial transactions through discussion with client and established professional standards 
Ensure audit methodologies use established sampling and selection techniques in manner consistent with internal control procedures and substantive testing 
Establish timeframes and allocate personnel to functions and tasks based on audit lines of enquiry 
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 
Identify significant strengths and weaknesses in controls and rank in accordance to audit objectives 
Obtain and evaluate evidence on financial systems and controls under review using established testing procedures and in accordance with criteria identified in audit methodology 
Test management assertions to achieve audit objectives 
Gather sufficient appropriate audit evidence as basis for expert opinion 
Verify financial statements as materially misstated or correct 
Identify and document financial operational functions, services and systems in accordance with standard formats 
Ensure format is consistent with documentation requirements of auditor and professional auditing standards 
Formulate and provide financial audit opinions, including recommendations, to client in established and acceptable format 

Forms

Assessment Cover Sheet

FNSACC602 - Audit and report on financial systems and records
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSACC602 - Audit and report on financial systems and records

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: