COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF PROFESSIONAL STUDIES
Assignment (Semester IV)
Assignment - 1
Qualification
Unit number and title
Pearson BTEC Level 5 HND Diploma in Accounting
Unit 11 – Financial Systems & Auditing
Semester
Batch
IV
Spring 2016 - 17
Student name :
Assessor name : Mr. Vaheed / Dr. Salman / Mr. Lakmal
Student No.:
Internal Verifier (IV) name : Ms Shobhna
Date issued
Completion date
Submitted on
th
20 April 2017
LO 1: Accounting Systems; and
Assignment title
Learning
Learning Outcome
LO 3: Planning and conduct of an Audit Assignment
Assessment Cri
Outcome
In this assessment you will have the opportunity to present evidence
that shows you are able to:
Evidence
Task no.
(Page no)
Criteriaa
Understand the
importance of
1.1
Explain the purpose and use of the different accounting
records
1
keeping effective
LO 1
accounting systems
1.2
within a business
1.3
Assess the importance and meaning of the fundamental
accounting concepts
Evaluate the factors which influence the nature and
structure of accounting systems
2
3
Be able to contribute
to the planning and
LO 3
conduct of an audit
3.1
Plan an audit with reference to scope, materiality and risk
4
3.2
Identify and use appropriate audit tests
5
3.3
Record the audit process in an appropriate manner
6
assignment
Learner Declaration
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Student signature : ____________
Date: ______________
Page 1 of 8
In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades
Grade Descriptor
Indicative characteristic/s
Contextualisation
M1 Identify and apply strategies to find
appropriate solutions
Effective judgements have been made.
Task 1 - To achieve merit, give your judgements advocating the accounting software to the Chief Financial
Officer of the mentioned firm. (M1)
M2 Select / design and apply
appropriate methods / techniques
A range of methods and techniques have
been applied
A range of sources of information has
been used
referencing style to support accounting concepts and their usage to the case firm. (M2)
Task 4 - To achieve merit, use a range of methods and techniques to justify your audit. You can use a
specimen audit to justify the scope, materiality and risk. (M2)
Task 5 - To achieve merit, use a range of sources of information during the audit tests. Use secondary data to
justify the audit tests for the case firm. (M2)
Task 3 - To achieve merit, use appropriate structure and approach to answer the question. Use the templates
M3 Present and communicate
appropriate findings
Task 2 - To achieve merit, use a range of sources of information to answer the question. Use Harvard
The appropriate structure and approach
or specimen of accounting systems used by most of the business organizations. (M3)
has been used
Task 6 - To achieve merit, maintain appropriate structure and approach during the recording process. Audit
record process should be reflected with the help of suitable templates or specimen. (M3)
Task 3 - To achieve distinction, propose realistic improvements against the defined characteristics for
D1 Use critical reflection to evaluate
own work and justify valid conclusions
Realistic improvements have been
success for the firm. Suggestive and preventive methods should be reflected to improve and insulate the
proposed against defined characteristics
accounting systems of the case firm. (D1)
for success
Task 5 - To achieve distinction, suggest realistic improvements for the stated audit tests of the firm. The
suggestions should be made for preventive and corrective action plans. (D1)
Task 1 - To achieve distinction, demonstrate autonomy in critical evaluation of the accounting records. Use
D2 Take responsibility for managing
and organising activities
Autonomy/independence has been
proper referencing to reflect your judgements. (D2)
demonstrated
Task 6 - To achieve distinction, demonstrate autonomy while evaluating the above scenario. Use creative
thinking, secondary references and real business examples to demonstrate your understanding. (D2)
Innovation and creative thought have
Task 4 - To achieve distinction, indicate innovation and creative thought applied with proper in text
D3 Demonstrate convergent /lateral /
been applied
referencing. Planning of audit should be creative, so as to reduce the audit cost and improve its overall
creative thinking
A range of sources of information has
productivity. (D3)
been used
Page 2 of 8
Assignment Brief
Purpose of this assignment
The purpose of accounting is to accumulate and report on financial information about the performance, financial
position, and cash flows of a business. This information is then used to reach decisions about how to manage the
business, or invest in it, or lend money to it. Financial statements are assembled under certain sets of rules, known as
accounting frameworks, of which the best known are Generally Accepted Accounting Principles (GAAP) and
International Financial Reporting Standards (IFRS). The results shown in financial statements can vary somewhat,
depending on the framework used. The framework that a business uses depends upon which one the recipient of the
financial statements wants. Thus, a European investor might want to see financial statements based on IFRS, while an
American investor might want to see statements that comply with GAAP.
The accountant may generate additional reports for special purposes, such as determining the profit on sale of a product,
or the revenues generated from a particular sales region.
Thus, the purpose of accounting centers on the collection and subsequent reporting of financial information.
In an audit of the financial statements of a company with operations in multiple locations or business units, the auditor
should determine the extent to which audit procedures should be performed at selected locations or business units to
obtain sufficient appropriate evidence to obtain reasonable assurance about whether the consolidated financial
statements are free of material misstatement. This includes determining the locations or business units at which to
perform audit procedures, as well as the nature, timing, and extent of the procedures to be performed at those individual
locations or business units. The auditor should assess the risks of material misstatement to the consolidated financial
statements associated with the location or business unit and correlate the amount of audit attention devoted to the
location or business unit with the degree of risk of material misstatement associated with that location or business unit.
Case Scenario
The case study talks about Moon Hyper Market. Moon Hyper Market is similar to any other hyper markets dealing in
consumer goods and having different retail outlets in Oman. The firm maintains different types of transaction in both
cash and credit. Recently the firm faced issue of lack of proper data management at their offices. The Chief Financial
Officer is worried about lack of proper financial records maintained at the head office. Last year a fire broke at the
head office damaging the source documents. Next year there is a state audit, which requires thorough investigation of
accounting books and source documents. The Chief IT Officer has argued to convert all the accounting procedures and
records to a computer based accounting software. The IT officer emphasizes that using an accounting software will be
productive and efficient for the firm. The Chief Financial Officer is concerned about the heavy investment cost to
purchase and install the software. In addition, it requires further investment of training the employees so that they can
use the software properly.
Page 3 of 8
LO1 - Assessment Criteria 1.1: Explain the purpose and use of the different accounting records
Task 1
To achieve pass, answer what is an accounting record and explain the purpose and usage of appropriate accounting
records to Moon Hyper Market. (Pass)
To achieve merit, give your judgements advocating the accounting software to the Chief Financial Officer of the
mentioned firm. (M1)
To achieve distinction, demonstrate autonomy in critical evaluation of the accounting records. Use proper referencing
to reflect your judgements. (D2)
LO1 - Assessment Criteria 1.2: Assess the importance and meaning of the fundamental accounting concepts
Task 2
To achieve pass, assess the importance and meaning of the fundamental accounting concepts with reference to the
attached case study. (Pass)
To achieve merit, use a range of sources of information to answer the question. Use Harvard referencing style to
support accounting concepts and their usage to the case firm. (M2)
To achieve distinction, indicate innovation and creative thought with proper in text referencing. The use of creativity
and innovation should be reflected in demonstrating accounting concepts to the case firm. (D3)
LO1 - Assessment Criteria 1.3: Evaluate the factors which influence the nature and structure of accounting
systems
Task 3
To achieve pass, evaluate the factors, which will influence the nature and structure of accounting systems in Moon
Hyper Market. (Pass)
To achieve merit, use appropriate structure and approach to answer the question. Use the templates or specimen of
accounting systems used by most of the business organizations. (M3)
To achieve distinction, propose realistic improvements against the defined characteristics for success for the firm.
Suggestive and preventive methods should be reflected to improve and insulate the accounting systems of the case
firm. (D1)
LO3 - Assessment Criteria 3.1: Plan an audit with reference to scope, materiality and risk
Task 4
To achieve pass, consider external audit, plan an audit with reference to scope, materiality and risk of the mentioned
firm. (Pass)
To achieve merit, use a range of methods and techniques to justify your audit. You can use a specimen audit to justify
the scope, materiality and risk. (M2)
To achieve distinction, indicate innovation and creative thought with proper in text referencing. Planning of audit
should be creative, so as to reduce the audit cost and improve its overall productivity. (D3)
LO3 - Assessment Criteria 3.2: Identify and use appropriate audit tests
Page 4 of 8
Task 5
To achieve pass, identify and use appropriate audit tests for the mentioned audit. (Pass)
To achieve merit, use a range of sources of information during the audit tests. Use secondary data to justify the audit
tests for the case firm. (M2)
To achieve distinction, suggest realistic improvements for the stated audit tests of the firm. The suggestions should be
made for preventive and corrective action plans. (D1)
LO3 - Assessment Criteria 3.3: Record the audit process in an appropriate manner
Task 6
To achieve pass, record the audit process in an appropriate manner. (Pass)
To achieve merit, maintain appropriate structure and approach during the recording process. Audit record process
should be reflected with the help of suitable templates or specimen. (M3)
To achieve distinction, demonstrate autonomy while evaluating the above scenario. Use creative thinking, secondary
references and real business examples to demonstrate your understanding. (D2)
Evidence
Summary of evidence required by student
checklist
Evidence
presented
Task 1
Explain the purpose and use of the different accounting records
Task 2
Assess the importance and meaning of the fundamental accounting concepts
Task 3
Evaluate the factors which influence the nature and structure of accounting systems
Task 4
Plan an audit with reference to scope, materiality and risk
Task 5
Identify and use appropriate audit tests
Task 6
Record the audit process in an appropriate manner
Guidance notes:
1. Use standard document formats and structures.
2. Word process the documents.
3. Use 12 point Arial or Times New Roman script.
4. Provide a list of references and use the Harvard referencing system.
5. Complete the title page and sign the statement of authenticity.
6. Upload the entire assignment in MS word format only on Turnitin.
7. Staple only once to keep the pages of your work together.
Page 5 of 8
8. Late submission, late work will only be marked on the next occasion the unit is taught.
9. Submit the work along with the Turnitin report to the respective assessors in their offices.
10. Collect the assignment submission form duly signed by the assessor and the learner.
11. Grades are subject to External Verification.
Word limit = 4500 words
Achievement Summary
Pearson BTEC Level 5 HND
Qualification
Assessor name
Diploma in Business
Unit Number and title
Mr. Vaheed / Dr. Salman / Mr.
Lakmal
Unit 11 – Financial Systems &
Ms Shobhna
IV name
Auditing
Student Number
Criteria
Student name
To achieve the criteria the evidence must show that the student is able to:
Reference
Achieved?
(tick)
LO1
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
3.1
Identify and use appropriate audit tests
3.2
Record the audit process in an appropriate manner
3.3
Explain the purpose and use of the different accounting records
Higher Grade achievements (where applicable)
Grade descriptor
Achieved?
(tick)
Grade descriptor
Achieved?
(tick)
Page 6 of 8
M1: Identify and apply strategies to find
D1: Use critical reflection to evaluate
appropriate solutions
own work and justify valid conclusions
D2: Take responsibility for managing
M2: Select/design and apply appropriate
and organising activities
methods/techniques
D3: Demonstrate convergent/lateral
M3: Present and communicate appropriate
/creative thinking
findings
Page 7 of 8
Assignment Feedback
Formative Feedback: Assessor to Student
Action Plan
Summative feedback
Feedback: Student to Assessor
Assessor Signature
Date
IV Signature
Date
Student Signature
Date
Page 8 of 8
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