Study Guide: FNSACCT602B Audit and Report on Financial Systems and Records

School of Finance & Library

Faculty of Workforce Development, Victoria University

ADVANCED DIPLOMA OF ACCOUNTING

COURSE CODE: FNS60204

STUDY GUIDE
COMPETENCY FNSACCT602B
CODE:

COMPETENCY Audit and Report on Financial Systems and Records

TITLE:

DESCRIPTION: This subject covers supervising an audit of financial systems and preparing the
appropriate reports.
This module will be taught in a classroom. Activity will comprise of teacher-led
instruction and discussion, small group discussions, selected hands on activities,
team-based research and an individual presentation to the class group.

SEMESTER: 2, 2010

CAMPUS: FN, SA

GROUPS: GAG, SAG

PRE-REQUISITES: FNSACCT506B

RECOGNITION OF Students who already possess the competencies developed in this unit of study
PRIOR LEARNING: are eligible for recognition of prior learning (RPL) or credit upon substantiation
of competency in the relevant learning areas. For further details please refer to
the RPL policy in your student manual.

1. Assess options
LEARNING
OUTCOMES: 2. Identify information sources
3. Determine audit strategies
4. Schedule resources and timelines and monitor progress
5. Review data
6. Verify statements
7. Determine reporting formats

EMPLOYABILITY This unit contains the Employability Skills. The Employability Skills are deemed
SKILLS/VU equivalent to VU Graduate Capabilities 1 - 4:
GRADUATE
1. Problem solve in a range of settings
CAPABILITIES
2. Locate, critically evaluate, manage and use written, numerical and electronic
information

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 Study Guide: FNSACCT602B Audit and Report on Financial Systems and Records

3. Communicate in a variety of ways

4. Work both autonomously and collaboratively

TIME STRUCTURE: Classes will be held from week beginning 19th July 2010 to the week ending 3rd
December 2010. A schedule of class dates and content is outlined below.

CLASS This study program is designed around a series of classroom activities and related
ATTENDANCE: non-classroom work. Success in the course is dependent on class attendance. It
is the student’s responsibility to ensure that, where possible, the teacher and team
members are advised of any proposed absence so that arrangements can be made
by teacher and fellow team members to keep the student advised of important
information and activity.

TEACHERS: Mechelle Lane

Footscray Nicholson
Email: mechelle.lane@vu.edu.au

Saba Khan
St Albans
Email: saba.khan@vu.edu.au

PROGRAM Antonietta Muraca

MANAGER: Footscray Nicholson Campus – Beanland Building
Phone: 9919 8836
email: antonietta.muraca@vu.edu.au
ASSESSMENT Assessment of this unit of study will comprise the submission of Assessment
TASKS: Exercises as per Work Schedule. Students must achieve at least Pass in all
assessment pieces. Assessment items are weighted as follows:

Test 1 (open book) 5% (week 4)

Test 2 (open book) 20% (week 16)
Case Study 25% (Part 1 due Week 6
Part 2 due Week 12
Part 3 due Week 15)

Virtual Business
Integrated Focus Questions (Individual) 10%
Virtual Business Report (Team) 20%
Virtual Business Presentation (Team 20%

ASSESSMENT The University issues results as follows:

POLICY HD 80 – 100
D 70 – 79
C 60 – 69
P 50 – 59
U Not Yet Competent
Late submission of any assessment task will result in loss of marks unless a
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 Study Guide: FNSACCT602B Audit and Report on Financial Systems and Records

student has applied for special consideration, and approved. For each day late,
up to five days from the due date,10% will be deducted. After day five no
assessment will be accepted, and no re-assessment available unless special
consideration has been granted.
Supplementary assessment is a form of second chance assessment for students
who have failed an assessment task or a unit of study. All forms of
supplementary assessment will be marked to a pass grade only, unless special
consideration has been granted.
If an individual assessment task does not meet a Pass grade, a student may be
allowed to re-submit or to a re-assessment. A student must have attended a
scheduled assessment to be eligible for a second attempt.
In order to be declared competent in a unit of study, students must pass all
assessment pieces. Where a student has not passed all assessment pieces but
has achieved an overall mark exceeding 40%, they will be granted
supplementary assessment. Students with an overall mark below 40% may be
granted supplementary assessment at the discretion of the teacher. Students
who do not have an appropriate attendance record will not be granted teacher
discretion.
Please see your student guide for further detail
http://business.tafe.vu.edu.au/dsweb/View/Collection-2471.

PRESCRIBED TEXT: Auditing Fundamentals – Lee Homewood, Tertiary Press.

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 Study Guide: FNSACCT602B Audit and Report on Financial Systems and Records

WORK SCHEDULE

The following Work Schedule is a GUIDE only. In consultation with students, the teacher may alter the order of topics or the dates of
assessments to suit the progress and needs of the group or to accommodate unforeseen circumstances. Changes will be documented and
students will be advised in writing.

Week Learning/Delivery Strategy Assessment Strategy Student

Commencing Notes
Topic/Assessment Criteria
Feedback
/Progress
19/07/2010 Auditor duties, rights and responsibilities • Advise on auditor rights,
(chapter 1 and 2) duties and responsibilities
Test 1 & 2
• Identify and discuss ethical
issues Case Study
• Describe common law and
statutory duties and
obligations
26/07/2010 Audit principles and overview of audit • Locate relevant accounting
process (chapter 3 and 4) and auditing standards and
pronouncements of Test 1 & 2
professional bodies
Case Study
• Overview of an audit
process
02/08/2010 Accepting the audit • Accepting an audit
Prepare an audit plan (chapter 5 and 6) engagement Test 1 & 2
• Letter of engagement
Case Study
• Audit planning- budget and
time frame
09/08/2010 Test 1 (5%)
16/08/2010 Audit materiality (chapter 7) • Materiality factors Test 2
• Relationship between
materiality and audit risk Case Study

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 Study Guide: FNSACCT602B Audit and Report on Financial Systems and Records

23/08/2010 Audit risk (chapter 8) • Outline of audit risk Test 2

• Risk components
Case Study
Revision

30/08/2010 Analytical review (chapter 9) • Types of analytical review Test 2

• Significant differences and
unusual relationship Case Study
• Ratio calculation
06/09/2010 Evidence and documentation (chapter 10) • Evidence and audit Test 2
objectives Case Study
• Types of evidence and
audit procedures
• Audit documentation

13/09/2010 Preliminary evaluation of internal control • Internal control aspects Test 2

(chapter 11) • Gathering information on
internal control Case Study
• Estimating control risk

20/09/2010
27/09/2010 Mid Semester Break NO CLASSES

04/10/2010 Audit sampling (chapter 12) • Sampling risk Test 2

Compliance testing (chapter 13) • Types of audit sampling
• Elements of compliance Case Study
testing
• Compliance testing in
various subsystem
• Documentation and
reporting on controls
11/10/2010 Substantive testing (chapter 14 & 15) • Audit objectives and Test 2

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substantive testing
• Designing substantive Case Study
programs
18/10/2010 Substantive testing (chapter 14 & 15) • Audit objectives and Test 2
substantive testing
• Designing substantive Case Study
programs
25/10/2010 Completion of the audit (chapter 16) • Subsequent events- Test 2
Audit reports (chapter 17) definition, types
• Contingencies and going Case Study
concern assumptions
• Management
representation letter and
audit review
• Elements of an audit report
• Types of audit report

01/11/2010 Case Study (20%) Assessment

08/11/2010 Test 2 (15%) Open book Assessment
15/11/2010 VB Presentation and Report Assessment

22/11/2010 Reassessments
29/11/2010 Finalization of Results

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