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Evidence Guide: FNSACC602 - Audit and report on financial systems and records

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSACC602 - Audit and report on financial systems and records

What evidence can you provide to prove your understanding of each of the following citeria?

Assess options

  1. Identify statutory requirements from assessment of terms of reference, and client objectives and obligations
  2. Review and analyse client activities and procedures to establish familiarity with systems and guide selection of appropriate audit methodologies
  3. Develop financial audit methodologies to identify significant features of audit and establish criteria for conducting audit in accordance with professional auditing standards
Identify statutory requirements from assessment of terms of reference, and client objectives and obligations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review and analyse client activities and procedures to establish familiarity with systems and guide selection of appropriate audit methodologies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop financial audit methodologies to identify significant features of audit and establish criteria for conducting audit in accordance with professional auditing standards

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify information sources

  1. Identify audit financial data sources from evaluation of organisation’s information systems
  2. Create audit lines of enquiry to support audit objectives and reduce audit risk to acceptable level
Identify audit financial data sources from evaluation of organisation’s information systems

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Create audit lines of enquiry to support audit objectives and reduce audit risk to acceptable level

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine audit strategies

  1. Establish client financial business characteristics from analysis of general economy, industry and client’s provided information
  2. Assess client’s inherent financial risk through value chain risk analysis
  3. Identify internal control procedures for financial transactions through discussion with client and established professional standards
  4. Ensure audit methodologies use established sampling and selection techniques in manner consistent with internal control procedures and substantive testing
Establish client financial business characteristics from analysis of general economy, industry and client’s provided information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess client’s inherent financial risk through value chain risk analysis

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify internal control procedures for financial transactions through discussion with client and established professional standards

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure audit methodologies use established sampling and selection techniques in manner consistent with internal control procedures and substantive testing

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Schedule resources and timelines and monitor progress

  1. Establish timeframes and allocate personnel to functions and tasks based on audit lines of enquiry
  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
Establish timeframes and allocate personnel to functions and tasks based on audit lines of enquiry

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review data and verify statements

  1. Identify significant strengths and weaknesses in controls and rank in accordance to audit objectives
  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
  3. Test management assertions to achieve audit objectives
  4. Gather sufficient appropriate audit evidence as basis for expert opinion
  5. Verify financial statements as materially misstated or correct
Identify significant strengths and weaknesses in controls and rank in accordance to audit objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain and evaluate evidence on financial systems and controls under review using established testing procedures and in accordance with criteria identified in audit methodology

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Test management assertions to achieve audit objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Gather sufficient appropriate audit evidence as basis for expert opinion

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Verify financial statements as materially misstated or correct

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine reporting formats

  1. Identify and document financial operational functions, services and systems in accordance with standard formats
  2. Ensure format is consistent with documentation requirements of auditor and professional auditing standards
  3. Formulate and provide financial audit opinions, including recommendations, to client in established and acceptable format
Identify and document financial operational functions, services and systems in accordance with standard formats

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Ensure format is consistent with documentation requirements of auditor and professional auditing standards

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Formulate and provide financial audit opinions, including recommendations, to client in established and acceptable format

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.