Financial Systems and Auditing

Aim

The aim of this unit is to enable learners to develop understanding and skills in the management of business accounting systems and the conduct and reporting of audits.

Learning outcomes and assessment

LO1 Understand the importance of keeping effective accounting systems within a business

1.1 explain the purpose and use of the different accounting records

1.2 assess the importance and meaning of the fundamental accounting concepts

1.3 evaluate the factors which influence the nature and structure of accounting systems

LO2 Be able to analyse the management control systems of a business

2.1 identify the different components of business risk

2.2 analyse the control systems in place in a business

2.3 evaluate the risk of fraud within a business suggesting methods for detection

LO3 Be able to contribute to the planning and conduct of an audit assignment

3.1 plan an audit with reference to scope, materiality and risk

3.2 identify and use appropriate audit tests

3.3 record the audit process in an appropriate manner

LO4 Be able to prepare audit reports

4.1 prepare a draft audit report

4.2 draft suitable management letters in relation to a statutory audit.