Unit of competency Outline
Date retreived
23/07/2026 5:45 AM AWST
23/07/2026 5:45 AM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Audit and report on financial systems and records
Audit and report on financial systems and records
Unit of competency
National Code
FNSACC602A
FNSACC602A
State Code
D4047
D4047
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
07/07/2014
Field of Education
080101 - Accounting
Original Release Date
07/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to supervise an audit of financial systems and prepare the appropriate reports, including assessing options, identifying information sources, determining audit strategies, monitoring progress, reviewing data, verifying financial statements and determining appropriate reporting formats.This unit has application to a variety of financial services sectors and is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Assess options
- 1.1. Statutory requirements are identified from assessment of terms of reference and client objectives and obligations
- 1.2. Client activities and procedures are reviewed and analysed to establish familiarity with systems and guide the selection of appropriate audit methodologies
- 1.3. Financial audit methodologies are developed to identify significant features of the audit and establish criteria for conducting the audit in accordance with professional auditing standards
2. Identify information sources
- 2.1. Audit financial data sources are identified from evaluation of organisation's information systems
- 2.2. Audit lines of enquiry are created to support audit objectives and reduce audit risk to an acceptable level
3. Determine audit strategies
- 3.1. Client financial business characteristics are established from analysis of the general economy, the industry and the client's provided information
- 3.2. Client's inherent financial risk is assessed through value chain risk analysis
- 3.3. Internal control procedures for financial transactions are identified through discussion with the client and established professional standards
- 3.4. Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing
4. Schedule resources and timelines and monitor progress
- 4.1. Timeframes are established and personnel allocated to functions and tasks based on audit lines of inquiry
- 4.2. Resource use is reviewed regularly and intermittent reports developed and monitored with resource allocation and timeframes adjusted through discussion and agreement with the client and in accordance with professional accounting standards
5. Review data and verify statements
- 5.1. Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives
- 5.2. Evidence on financial systems and controls under review is obtained and evaluated using established testing procedures and in accordance with criteria identified in audit methodology
- 5.3. Management assertions are tested to achieve audit objectives
- 5.4. Sufficient appropriate audit evidence is gathered as a basis for an expert opinion
- 5.5. Financial statements are verified as materially misstated or correct
6. Determine reporting formats
- 6.1. Financial operational functions, services and systems are identified and documented in accordance with standard formats
- 6.2. Format is consistent with documentation requirements of the auditor and professional auditing standards
- 6.3. Financial audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Statutory requirements may include:
delegated authorities
internal control procedures
reporting periods
taxable transactions
taxation payment timings.
Client objectives may include:
administrative efficiency
asset development
compliance adherence
financial consolidation
reduction in tax liabilities.
Financial audit methodologies may include:
analysis of documentation
application of criteria from recognised authorities
assessment of commercial viability
compliance and substantive testing
examination of processes and procedures of internal control
gathering and evaluating data
interpretation of compliance with statutory requirements
valuation of assets.
Data sources may include:
Australian Bureau of Statistics (ABS) economic data
budgets and forecasts
cash flow
credit ratings
financial markets monitoring services
financial statements and reports
market valuations.
Audit lines of enquiry may include:
questioning accounting staff and company officers
assessment of objectives of internal control
evaluation of achievement of accounting system objectives
management structure and practices
operation and strategic plans
specialist and expert advice.
Internal control procedures may include:
accuracy in valuations
decision making authorities
identification, measurement and recording of
income
assets
expenditure
liabilities
equity
risk management strategies
safeguarding and insurance of assets
transparency in financial reporting.
Established professional standards may include:
Auditing Guidance Statements
Australian Accounting Standards
Australian Accounting Standards Board (AASB) requirements
Australian Auditing Standards
ethical principles and professional practise
Superannuation Industry (Supervision) (SIS) Act.
Testing procedures may include:
achievement of debt repayment schedules
inspection of documentation for evidence of control procedures
interviews with personnel concerning the performance of duties
observation of personnel
reconstruction of accounting routines
submission of statutory returns.
Systems may include:
communication and distribution systems
databases
decision making authorities
financial information systems
personal information systems
recording and filing systems.
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Statutory requirements may include:
delegated authorities
internal control procedures
reporting periods
taxable transactions
taxation payment timings.
Client objectives may include:
administrative efficiency
asset development
compliance adherence
financial consolidation
reduction in tax liabilities.
Financial audit methodologies may include:
analysis of documentation
application of criteria from recognised authorities
assessment of commercial viability
compliance and substantive testing
examination of processes and procedures of internal control
gathering and evaluating data
interpretation of compliance with statutory requirements
valuation of assets.
Data sources may include:
Australian Bureau of Statistics (ABS) economic data
budgets and forecasts
cash flow
credit ratings
financial markets monitoring services
financial statements and reports
market valuations.
Audit lines of enquiry may include:
questioning accounting staff and company officers
assessment of objectives of internal control
evaluation of achievement of accounting system objectives
management structure and practices
operation and strategic plans
specialist and expert advice.
Internal control procedures may include:
accuracy in valuations
decision making authorities
identification, measurement and recording of
income
assets
expenditure
liabilities
equity
risk management strategies
safeguarding and insurance of assets
transparency in financial reporting.
Established professional standards may include:
Auditing Guidance Statements
Australian Accounting Standards
Australian Accounting Standards Board (AASB) requirements
Australian Auditing Standards
ethical principles and professional practise
Superannuation Industry (Supervision) (SIS) Act.
Testing procedures may include:
achievement of debt repayment schedules
inspection of documentation for evidence of control procedures
interviews with personnel concerning the performance of duties
observation of personnel
reconstruction of accounting routines
submission of statutory returns.
Systems may include:
communication and distribution systems
databases
decision making authorities
financial information systems
personal information systems
recording and filing systems.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and analyse organisational financial policies and procedures
comply with relevant professional standards and internal control procedures
access options to determine financial audit strategies
schedule resources and timelines and monitor progress
review data, verify financial statements and determine reporting formats.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.
access to an integrated financial software system and data.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations and scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and analyse organisational financial policies and procedures
comply with relevant professional standards and internal control procedures
access options to determine financial audit strategies
schedule resources and timelines and monitor progress
review data, verify financial statements and determine reporting formats.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables.
access to an integrated financial software system and data.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations and scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9609 | FNSACCT602B | Audit and report on financial systems and records | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ22 | FNSACC602 | Audit and report on financial systems and records | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S735 | FNS60210 | Advanced Diploma of Accounting | Qualification |
| J324 | PSP60312 | Advanced Diploma of Government (Financial Management) | Qualification |