1. Understand the importance of keeping effective accounting systems within a business
Explain the purpose and use of the different accounting records
Assess the importance and meaning of the fundamental accounting concepts
Evaluate the factors which influence the nature and structure of accounting systems
2. Be able to contribute to the planning and LO 3 conduct of an audit assignment
Plan an audit with reference to scope, materiality and risk
Identify and use appropriate audit tests
Record the audit process in an appropriate manner
To achieve merit. maintain appropriate structure and approach during the recording process. (M3)
To achieve distinction, demonstrate autonomy while evaluating the above scenario. (D2)
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
Task 1
To achieve pass, answer what is an account' 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. (MI)
To achieve distinction, demonstrate autonomy while evaluating the above scenario. (1)2) Lot - Assessment Criteria 1.2.
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. (M2)
To achieve distinction, indicate innovation and creative thought applied with proper in text referencing. (03)
Assessment Criteria 1.3
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. (M3)
To achieve distinction. propose realistic improvements against the defined characteristics for success for the firm.
(DI)
LO3 - Assessment Criteria 3.1:
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. (M2)
To achieve distinction, indicate innovation and creative thought applied with proper in text referencing. (D3)
LO3 - Assessment Criteria 3.2:
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. (M2)
To achieve distinction, suggest realistic improvements for the stated audit tests of the firm. (DI)
Assessment Criteria 3.3:
Task 6
o achieve pass, record the audit process in an appropriate manner. (Pass)
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 my Generally Accepted Accounting Principles (GAAI') 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 laced 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.
Word limit = 4500 words