Summary AAT Level 4 - Professional Diploma in Accounting (Synoptic)

PDSY‌‌-‌‌Professional‌‌Diploma‌‌in‌‌Accounting:‌‌Accounting‌‌Systems‌‌and‌‌Controls‌ ‌




PDSY‌‌-‌‌Professional‌‌Diploma‌‌in‌‌Accounting:‌‌
Accounting‌‌Systems‌‌and‌‌Controls‌ ‌
Chapter‌‌1‌‌-‌‌Introduction‌‌to‌‌the‌‌Organisation‌ 2‌ ‌
Role‌‌of‌‌Accounting‌‌Function‌ 2‌ ‌
Stakeholders‌ 2‌ ‌
See‌‌FSLC‌‌notes‌‌for‌‌Regulatory‌‌Requirements‌‌in‌‌FS‌ 3‌ ‌
Tax‌‌and‌‌Other‌‌Government‌‌Legislation‌ 3‌ ‌
Management‌‌Accounting‌ 3‌ ‌
Other‌‌Reporting‌‌Requirements‌ 3‌ ‌
Other‌‌Regulations‌ 4‌ ‌
Chapter‌‌2‌‌-‌‌The‌‌Accounting‌‌Function‌‌(AF)‌ 4‌ ‌
Purpose,‌‌Structure‌‌and‌‌Organisation‌ 4‌ ‌
Ethical‌‌Considerations‌ 6‌ ‌
See‌‌MABU‌‌notes‌‌for‌‌Budgetary‌‌Control‌‌Systems‌ 6‌ ‌
Working‌‌practices‌ 6‌ ‌
Management‌‌Information‌‌Systems‌‌(MIS)‌ 7‌ ‌
Chapter‌‌3‌‌-‌‌Accounting‌‌Systems‌ 8‌ ‌
Accounting‌‌Systems‌ 8‌ ‌
Objectives‌‌of‌‌Accounting‌‌System‌ 8‌ ‌
Accounting‌‌System‌‌Controls‌ 8‌ ‌
Security‌ 9‌ ‌
Integrated‌‌Accounting‌‌Systems‌ 9‌ ‌
Influences‌‌on‌‌the‌‌System‌ 9‌ ‌
Chapter‌‌4‌‌-‌‌Internal‌‌Control‌‌Systems‌ 10‌ ‌
Internal‌‌controls‌ 10‌ ‌
Control‌‌Environment‌ 10‌ ‌
Control‌‌Activities‌ 11‌ ‌
Sales‌‌System‌‌Controls‌ 11‌ ‌
Purchases‌‌System‌‌Controls‌ 12‌ ‌
Payroll‌‌System‌‌Controls‌ 12‌ ‌
SWOT‌‌Analysis‌ 13‌ ‌
Limitations‌ 13‌ ‌
Chapter‌‌5‌‌-‌‌Monitoring‌‌Controls‌‌and‌‌Detecting‌‌Fraud‌ 13‌ ‌
Monitoring‌‌Controls‌ 13‌ ‌
Fraud‌ 13‌ ‌
Controls‌‌(OAPSPASM)‌ 14‌ ‌
Risk‌‌Assessment‌‌Process‌ 14‌ ‌
Detecting‌‌Fraud‌ 15‌ ‌
Using‌‌Financial‌‌Information‌ 15‌ ‌
Fraud‌‌Matrix‌ 16‌ ‌
Chapter‌‌6‌‌-‌‌Making‌‌Changes‌‌to‌‌Systems‌ 16‌ ‌
Identifying‌‌the‌‌need‌‌for‌‌change‌ 16‌ ‌

, PDSY‌‌-‌‌Professional‌‌Diploma‌‌in‌‌Accounting:‌‌Accounting‌‌Systems‌‌and‌‌Controls‌ ‌


Types‌‌of‌‌Change‌ 17‌ ‌
Cost-Benefit‌‌Analysis‌ 17‌ ‌
Implementation‌ 18‌ ‌
Making‌‌the‌‌change‌ 18‌ ‌
Transition‌‌Process‌ 19‌ ‌
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, PDSY‌‌-‌‌Professional‌‌Diploma‌‌in‌‌Accounting:‌‌Accounting‌‌Systems‌‌and‌‌Controls‌ ‌


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Chapter‌‌1‌‌-‌‌Introduction‌‌to‌‌the‌‌Organisation‌ ‌

Role‌‌of‌‌Accounting‌‌Function‌ ‌
Accounting‌‌function‌‌=‌‌provides‌‌financial‌‌and‌‌management‌‌accounting‌‌information‌‌internal‌‌
stakeholders‌‌and‌‌financial‌‌information‌‌to‌‌external‌‌stakeholders‌ ‌
- Management‌‌accounting‌‌enables‌‌managers‌‌to‌‌make‌‌critical‌‌decisions‌‌based‌‌on‌‌the‌‌
financial‌‌information‌ ‌
- Needs‌‌to‌‌be‌‌set‌‌up‌‌to‌‌produce‌‌accurate‌‌and‌‌useful‌‌information‌ ‌
- Organisations‌‌can‌‌ensure‌‌goals‌‌are‌‌met‌ ‌
- Management‌‌can‌‌ensure‌‌sufficient‌‌training,‌‌time‌‌and‌‌resources‌‌are‌‌available‌ ‌
- Employees‌‌can‌‌know‌‌what’s‌‌required‌‌of‌‌them‌ ‌

Stakeholders‌ ‌
Stakeholder‌‌=‌‌individuals‌‌or‌‌groups‌‌that‌‌have‌‌an‌‌interest‌‌in‌‌what‌‌the‌‌company‌‌does‌ ‌
- Internal‌‌or‌‌external,‌‌e.g‌‌shareholders‌‌or‌‌banks‌‌respectively‌ ‌
- Directly‌‌or‌‌indirectly‌‌affected,‌‌e.g.‌‌customers,‌‌suppliers,‌‌employees‌ ‌
Stakeholders‌‌have‌‌different‌‌needs‌‌and‌‌so‌‌need‌‌different‌‌information‌ ‌
- Stakeholders‌‌with‌‌high‌‌levels‌‌of‌‌interest‌‌and‌‌power‌‌in‌‌the‌‌business,‌‌e.g.‌‌banks,‌‌
should‌‌be‌‌kept‌‌well‌‌informed‌ ‌
- Lower‌‌level‌‌stakeholders‌‌should‌‌be‌‌kept‌‌informed‌‌in‌‌line‌‌with‌‌legislation/contracts‌ ‌
Internal‌‌Stakeholders‌ ‌
- Information‌‌varies‌‌depending‌‌on‌‌their‌‌role‌ ‌
- E.g‌‌managers/owners‌‌will‌‌need‌‌to‌‌know‌‌about‌‌whole‌‌business‌‌performance‌‌
while‌‌purchases‌‌manager‌‌will‌‌need‌‌to‌‌know‌‌payments‌‌on‌‌a‌‌supplier‌‌by‌‌
supplier‌‌basis‌ ‌
- Generally‌‌not‌‌formalised‌‌by‌‌regulation‌‌or‌‌legal‌‌guidance‌ ‌
- Stakeholders‌‌can‌‌request‌‌the‌‌info‌‌and‌‌how‌‌they‌‌want‌‌it‌
- May‌‌use‌‌the‌‌system‌‌to‌‌access‌‌the‌‌information,‌‌e.g‌‌stock‌‌locations‌ ‌
External‌‌Stakeholders‌ ‌
- Require‌‌formal‌‌and‌‌standardised‌‌reporting‌‌format‌ ‌
- Must‌‌be‌‌filed‌‌w/‌‌Registrar‌‌of‌‌Companies‌‌in‌‌line‌‌with‌‌Companies‌‌Act‌‌2006‌ ‌

See‌‌FSLC‌‌notes‌‌for‌‌Regulatory‌‌Requirements‌‌in‌‌FS‌ ‌
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Purpose‌‌of‌‌financial‌‌statements‌ ‌
- Determine‌‌if‌‌the‌‌company‌‌has‌‌made‌‌a‌‌profit‌‌or‌‌loss‌ ‌
- Determine‌‌the‌‌management’s‌‌stewardship‌ ‌
- Meet‌‌statutory‌‌requirements‌ ‌
- To‌‌help‌‌shareholders,‌‌new‌‌investors,‌‌lenders‌‌or‌‌supplier‌ ‌

Tax‌‌and‌‌Other‌‌Government‌‌Legislation‌ ‌
Need‌‌to‌‌pay‌‌sufficient‌‌tax‌‌based‌‌on‌‌profits‌‌for‌‌the‌‌period‌ ‌
- Need‌‌to‌‌understand‌‌reporting‌‌implications‌ ‌