Unit of competency Outline
Date retreived
22/07/2026 8:03 PM AWST
22/07/2026 8:03 PM 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
FNSACCT602B
FNSACCT602B
State Code
C9609
C9609
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
16/10/2008
Field of Education
080101 - Accounting
Original Release Date
16/10/2008
Nominal Hours
40
Description
This unit covers the competency to supervise an audit of financial systems and prepare the appropriate reports.This unit covers the competency to supervise an audit of financial systems and prepare the appropriate reports.
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 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 data sources are identified from evaluation of organisation's information systems
- 2.2 Audit lines of inquiry are created to support audit objectives and reduce audit risk to an acceptable level
3 Determine audit strategies
- 3.1 Knowledge of the client is established from the economy, the industry and the client's business
- 3.2 Client's inherent risk is assessed through value chain risk analysis
- 3.3 Internal control procedures 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
- 4.3 Resource allocations and timeframes are adjusted through discussion and agreement with the client and in accordance with professional accounting standards
- 4.4 Resourcing needs and the allocation of personnel, time and equipment are assessed and identified within the scope of the audit methodology
5 Review data
- 5.1 Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives
- 5.2 Evidence on 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
6 Verify statements
- 6.1 Sufficient appropriate audit evidence has been gathered as a basis for an opinion
- 6.2 Financial statements are verified as materially misstated or not
7 Determine reporting formats
- 7.1 Operational functions, services and systems are identified and documented in accordance with standard formats
- 7.2 Format is consistent with documentation requirements of the auditor and professional auditing standards
- 7.3 Audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format
The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Statutory requirements may include:
reporting periods
taxation payment timings
delegated authorities
internal control procedures
taxable transactions
Client objectives may include:
reduction in tax liabilities
financial consolidation
compliance adherence
asset development
administrative efficiency
Audit methodologies may include:
gathering and evaluating data
compliance and substantive testing
interpretation of compliance with statutory requirements
application of criteria from recognised authorities
examination of processes and procedures of internal control
analysis of documentation
assessment of commercial viability
valuation of assets
Data sources may include:
budgets and forecasts
financial statements and reports
market valuations
Australian Bureau of Statistics (ABS) economic data
financial markets monitoring services (eg Reuters)
credit ratings
cash flow
Audit lines of inquiry may include:
evaluation of achievement of accounting system objectives
assessment of objectives of internal control
accounting staff
management
specialist and expert advice
company officers
operation and strategic plans
Internal control procedures may include:
identification, measurement and recording of income, assets, expenditure, liabilities and equity
safeguarding and insurance of assets
decision making authorities
accuracy in valuations
transparency in financial reporting
risk management strategies
Established professional standards may include:
Australian Accounting Standards Board (AASB)
Australian Accounting Standards
Australian Auditing Standards
Auditing Guidance Statements
ethical requirements
Superannuation Industry (Supervision) (SIS) Act 1993
Testing procedures may include:
interviews with personnel concerning the performance of duties
observation of personnel
inspection of documentation for evidence of control procedures
reconstruction of accounting routines
achievement of debt repayment schedules
submission of statutory returns
Systems may include:
financial information systems
personal information systems
recording and filing systems
communication and distribution systems
data bases
decision making authorities
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Statutory requirements may include:
reporting periods
taxation payment timings
delegated authorities
internal control procedures
taxable transactions
Client objectives may include:
reduction in tax liabilities
financial consolidation
compliance adherence
asset development
administrative efficiency
Audit methodologies may include:
gathering and evaluating data
compliance and substantive testing
interpretation of compliance with statutory requirements
application of criteria from recognised authorities
examination of processes and procedures of internal control
analysis of documentation
assessment of commercial viability
valuation of assets
Data sources may include:
budgets and forecasts
financial statements and reports
market valuations
Australian Bureau of Statistics (ABS) economic data
financial markets monitoring services (eg Reuters)
credit ratings
cash flow
Audit lines of inquiry may include:
evaluation of achievement of accounting system objectives
assessment of objectives of internal control
accounting staff
management
specialist and expert advice
company officers
operation and strategic plans
Internal control procedures may include:
identification, measurement and recording of income, assets, expenditure, liabilities and equity
safeguarding and insurance of assets
decision making authorities
accuracy in valuations
transparency in financial reporting
risk management strategies
Established professional standards may include:
Australian Accounting Standards Board (AASB)
Australian Accounting Standards
Australian Auditing Standards
Auditing Guidance Statements
ethical requirements
Superannuation Industry (Supervision) (SIS) Act 1993
Testing procedures may include:
interviews with personnel concerning the performance of duties
observation of personnel
inspection of documentation for evidence of control procedures
reconstruction of accounting routines
achievement of debt repayment schedules
submission of statutory returns
Systems may include:
financial information systems
personal information systems
recording and filing systems
communication and distribution systems
data bases
decision making authorities
EVIDENCE GUIDE
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:
knowledge of organisational policies and procedures
knowledge of relevant professional standards
knowledge of internal control procedures
ability to access options
ability to identify information sources
ability to determine audit strategies
ability to schedule resources and timelines and monitor progress
ability to review data
ability to verify statements
ability to determine reporting formats
Critical aspects of evidence
Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.
Delivery/assessment relationship to other units:
Prerequisite units:
FNSACCT506B Implement and maintain internal control procedures.
Assessment requirements
Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.
Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Resources required for assessment:
Assessment of this unit of competence requires access to suitable resources to demonstrate competence.
Assessment instruments, including personal planner and assessment record book.
Access to registered provider of assessment services.
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:
knowledge of organisational policies and procedures
knowledge of relevant professional standards
knowledge of internal control procedures
ability to access options
ability to identify information sources
ability to determine audit strategies
ability to schedule resources and timelines and monitor progress
ability to review data
ability to verify statements
ability to determine reporting formats
Critical aspects of evidence
Evidence required for demonstration of consistent performance:
Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.
Delivery/assessment relationship to other units:
Prerequisite units:
FNSACCT506B Implement and maintain internal control procedures.
Assessment requirements
Method of assessment:
For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.
Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.
Resources required for assessment:
Assessment of this unit of competence requires access to suitable resources to demonstrate competence.
Assessment instruments, including personal planner and assessment record book.
Access to registered provider of assessment services.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C7406 | FNSACCT602A | Audit and report on financial systems and records | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| D4047 | FNSACC602A | Audit and report on financial systems and records | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| C718 | FNS60204 | Advanced Diploma of Accounting | Qualification |