Unit of competency Outline

Date retreived
23/07/2026 7:23 AM AWST

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Conduct internal audit

Conduct internal audit

Unit of competency
National Code
FNSACC606A
State Code
D4051
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
080101 - Accounting
Original Release Date
31/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to evaluate information systems and assess an organisation's risks as part of an internal audit process.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. Evaluate information systems
  • 1.1. System specifications are evaluated against user requirements and feedback to identify redundancies and constraints, and capacities of information technology
  • 1.2. Hardware and software needs are identified from assessment of available products and services
  • 1.3. Possible uses and handling of accounting data are evaluated in consultation with users to determine security requirements
  • 1.4. Organisational procedures and policies are analysed to evaluate scope of strategies for risk management, internal control of expenditure and compliance with statutory requirements
  • 1.5. Enquiries regarding use of systems are monitored and recorded to ensure ongoing evaluation
2. Develop implementation plans
  • 2.1. Principles, procedures and processes arising from internal control systems are examined to determine implementation issues relevant to organisational processes
  • 2.2. Strengths and weaknesses of organisational processes, including present and future capacities, are analysed and incorporated in the implementation plan
  • 2.3. Implementation is designed to cover outcomes, resource use, costs and the achievement and maintenance of professional accounting standards
  • 2.4. Schedules are established that are realistic and feasible in the context of the organisation's short-term and long-term objectives
3. Review resource use
  • 3.1. Sources of data input are monitored to identify influences and variations in returns and costs
  • 3.2. Estimates of stock levels are monitored and reviewed to ensure appropriate stocking and ordering of materials and inventory items
  • 3.3. Records of resource use are compared with unit cost estimates to evaluate projected costs
  • 3.4. Factors influencing resource use in the future are analysed to assess impact on operations and objectives
4. Monitor plans
  • 4.1. Implementation is adjusted to take account of emerging external influences and the establishment of alternative targets
  • 4.2. Costs of plans are monitored and controlled by evaluating net benefits to operations from the allocation of resources
  • 4.3. Internal control systems are adjusted to ensure the maintenance and achievement of accounting standards
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.
System specifications may include:
changing needs
client compatibilities
financial analysis functions
logical data models such as database design
networking capacities
processing capacities:
system size
speed
software:
upgrades
legacies
Security requirements may include:
data storage requirements
encrypted data
limited personnel access
passwords
read only files requirements
virus scanning.
Risk management strategies may include:
comparative analysis
decision making authorities
forecasting
periodic reporting
policy statements
quantification of risks.
Internal control systems and procedures may include:
accuracy in valuations
compliance testing
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.
Strengths and weakness of organisational processes may include:
attitudes to change
compliance with internal procedures
computer literacy using skills profiles
decision making authorities
documented procedures
recording systems
work practices.
Implementation may include:
budgeting
consultation
documentation and guidelines
evaluation
feedback
staged introduction
testing.
Professional accounting standards may include:
Auditing Guidance Statements
Australian Accounting Standards
Australian Accounting Standards Board (AASB) requirements
Australian Auditing Standards
ethical requirements
Superannuation Industry (Supervision) (SIS) Act requirements.
Short-term and long-term objectives may include:
budgetary targets:
quarterly
half-yearly
annual
client development
investment realisations
monthly cash flows
profit growth
sales and revenues targets.
Sources of input data and documentation may include:
invoices
purchase orders
receipts
requisitions
system reports.
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:
use internal control systems and meet organisational policies and procedures
apply professional accounting standards in identifying strengths and weakness within organisational policies and procedures
evaluate information systems
develop implementation plans
review resources and monitor plans.

Context of and specific resources for assessment
Assessment of performance requirements in this unit should be 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 or scenarios
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9613 FNSACCT606B Conduct internal audit Unit of competency
Replaced By
State Code National Code Title Type
AUQ30 FNSACC606 Conduct internal audit Unit of competency