The Unit 10 project

Whether you’re studying the Technician stage of the NVQ/SVQ pathway or the Diploma in
Accounting stage of the Diploma pathway, you will need to complete a project to fulfil the
requirements of Managing Systems and People in the Accounting Environment (MSAP).

Unit elements:
As with all units in the AAT qualification the MSAP is divided into elements that describe the
type of work that are covered in this unit. These elements are:
• manage people within the accounting environment
• identify opportunities for improving the effectiveness of an accounting system.

The first element requires you to show that you can co-ordinate work activities effectively
within the accounting environment. This includes setting realistic objectives, targets and
deadlines and managing people in such a way that these can be met. You also need to show
that you can prepare contingency plans to cover a variety of problems that can reduce the
likelihood of not meeting objectives, targets and deadlines.

The second element is about identifying weaknesses in an accounting system and making
recommendations to rectify these. This involves identifying potential for misuse of a system,
whether this is accidental (an error) or deliberate (fraud). You are also required to provide a
cost benefit analysis where you compare the costs of the recommendations to the expected
benefits (both financial and non-financial).

Why is this unit achieved by writing a report?

Reporting writing is an important part of business life. It is a skill that involves analysis,
research, thinking about the larger picture – not just tasks – and which demonstrates your
communications skills. By writing a report you will be able to show:
• your understanding of the operation and management of a specific section of an
accounting system including methods of control
• evidence of your competence in all performance criteria, range statements and
knowledge and understanding as defined for this unit (see your Student Record)
• evidence of your communication and report writing skills.

Where should you start?

This is always the most difficult area – facing the blank piece of paper. This first thing to say is
that the subject area must be an actual system from your place of work (see “What if I’m not
in accountancy?” below if this does not apply to you).

Here are some ways to get started.

• Ask your college for a list of topics that have led to successful projects
• Think about your department and ask, “What would I do differently to make the
process or system better?”
• Ask your line manager and other colleagues for ideas about something which could
be improved at work
• Look at a similar report at work (it needn’t be on accounting). Although unit 10 has to
be your own original work, you will be able to get an idea of how your final report will
look, the writing style and what each section contains
• Divide up all the accounting systems at work (e.g. payroll, sales ledger, petty cash,
capital expenditure, reconciliation, control systems, and so on) and list what you
could say about each in order to address the elements and performance criteria. Are
there any gaps in this list? Are there areas that you think could be improved?
 • Don’t try writing straight away – describe your job or the problem to a friend or
colleague. Very often the words you use will be the quickest and simplest way of
describing what it’s all about. Once you have that clear, you can then write it down
• You don’t have to start at the beginning – start with a section like the company
background or the description of the system under review. Work back from that
• Plan out your contents with a brief description of what you’ll say rather than the actual
words. Keep on going through it adding more detail until you’re getting close to your
final report. Then take time to polish your words and ensure it reads clearly and
matches all the performance criteria.

Some practical issues to think about early

Once you’re getting to grips with the areas you will tackle there are some practical tips to
consider.
• Will you be able to collect sufficient, valid evidence?
• If you can, select a topic that you will enjoy writing about – it will help with motivation!
• Will there be any confidentiality issues? Discuss how to overcome these with your
tutor and at work.
• Make sure that your employer is happy with the topic you’ve chosen.
• Is the subject area too large? Would it be appropriate to take a more detailed look at
only part of it?

What if you are not employed or not working in accounting?

If you are not currently working in an accounting role you can use experiences of other
accounting systems that you have worked with in the last two years.
These can include:
• previous employment
• work placement
• voluntary organisations

If you have no experience of any of these - do not despair - you can use an AAT simulation.
These are written as business case studies, which you need to read and analyse. In some of
the studies there are problems in many departments, just as there are in some real
workplaces, and you may find it better to focus on the problems within one department to
prepare your report.

Structure of the report

The project takes the form of a 4,000-word report to management. The report should be set
out formally and logically. It should be written in formal business language (i.e. in the third
person and avoiding subjective statements or personal opinion).

What follows is a rough guide to a possible structure - some may be sections in their own
right and some could combine within broader headings. Exactly how it is structured will
depend on the topic you are covering and your own decisions about how best to present the
report and communicate your points. A suggested template can be found on the AAT website.
• Covering page (detailing how your report fulfils the unit requirements and signed off
by your employer and your assessor).
• Title page, including your name.
• List of contents.
• Terms of reference – describing what the report’s objectives are.
• Methodology – how have you approached the preparation of this project? Your
methodology will explain how you planned and prepared the report.
• Acknowledgments – people who have helped you in this process.
• Management/Executive Summary – a brief overview of the report’s conclusions.
• The background to the organisation you are describing, including what it does.
 • The accounting function with the organisation, including personnel and
responsibilities of key staff and your role in the organisation.
• Description of the strengths and weakness of that system – you should consider
using the SWOT approach (strengths, weakness, opportunities and threats) for this
analysis – including comparison with best practice.
• Possible solutions.
• Recommendation for improvements.
• Cost/benefit analysis of the solutions
• Appendices

What to include?
The following ideas are very broad guidelines on what could be included in your report. It will
depend on the scope and focus of your report and you should discuss these with your AAT
tutor.
• Description of the system might include the operating cycle (e.g. daily, weekly,
monthly); where it fits into the accounting function; what checks and controls are in
place; who the internal and external customers are. Since this forms a part of the
background to your report, this area should be concise. For any point you include,
make sure that it relates to your report’s terms of reference.
• An explanation of your role.
• How errors and unusual circumstances are dealt with. Consider critical incident
reports and to whom such reports are made.
• What training is given in procedures, policies, regulations and timescales in order to
carry out the supervisory function?
• Comments on weaknesses or potential improvement in the system. This would
include issues such as motivation, training and work allocation; the physical location
or workspace; or resources, staff abilities or technology.
• Comments on measures taken to ensure the prevention of fraud in the system.
• Detailed descriptions of the organisation as a whole are not required.
• Any material included should illustrate points being made. Padding should be
avoided; it contributes to nothing and may prevent the clear development of
arguments.

Drafting your report

Here is some practical advice on drafting your report and preparing a final version.
• Start early!
• Confidentiality can be a problem so talk to your line manager to ensure they are
happy with the material you are going to include.
• Once you’ve started, your biggest problem could be keeping to ‘only’ 4,000 words!
Concentrate on the report’s objectives and cut out anything that doesn’t help meet
them.
• Keep checking back to the performance criteria and fill in any gaps you spot.
• Arrange to show drafts to your tutor so you can spot any gaps early.
• Talk to other students about your progress, perhaps set up a special unit 10 group.
• Read sections out loud (to yourself and others). This can help make sure your points
are clear and well communicated.
• Remember to start each section on a new page.
• Use diagrams, flow charts and tables and graphs where relevant.
• Type up your report – do not try hand writing it!
• Expect to have your report ready by early April so that it does not clash with exams
and your tutors have time to review it.
Some things to keep in mind once you have written your report.
Once you have completed your report you should ensure that:
• it covers all performance criteria, range statements and knowledge and
understanding
• issues and objectives are clearly defined
• all the objectives set out in the terms of reference are covered
• it is well laid out and easy to read, and in the format of a report to management
• there is clear progression of reasoning
• the main text is cross-referenced to any appendices
• it includes cross-references to the performance criteria (by paragraph number to
the student record) so it is clear where you have met them
• appropriate use is made of diagrams and flow charts
• a full and reasoned analysis of the current system is provided
• methodology is fully explained (i.e. how the information was obtained, how it was
validated)
• you have addressed the needs of the business rather than reflecting personal
feelings
• your employer (or assessor) statement of authenticity is included with the report
• you have checked your spelling!