ATHE Level 7

Extended Diploma in
Accounting and Finance

603/5422/7

Specification Version 1.0 Valid from 16.01.2020

Contents
Contents .......................................................................................................................................................................... 2
Introduction ...................................................................................................................................................................... 3
About ATHE ..................................................................................................................................................................... 3
Our Qualifications ............................................................................................................................................................ 3
Support for Centres ......................................................................................................................................................... 4
Introduction to ATHE’s Level 7 Extended Diploma in Accounting and Finance ............................................................. 5
The Aims of the Qualification .......................................................................................................................................... 5
Entry Requirements ......................................................................................................................................................... 5
Reasonable Adjustments and Special Considerations ................................................................................................... 6
Support and Recognition ................................................................................................................................................. 6
Progression from Level 7 Extended Diploma in Accounting and Finance ...................................................................... 6
Resources Required by Centres ..................................................................................................................................... 6
Modes of Delivery ............................................................................................................................................................ 7
Definition of Guided Learning Hours (GLH), Total Qualification Time (TQT) and Credit ................................................ 7
Total Qualification Time (TQT) ........................................................................................................................................ 8
Credit ............................................................................................................................................................................... 8
Qualification Structure for the Level 7 Extended Diploma in Accounting and Finance ................................................... 9
Guidance on Assessment and Grading........................................................................................................................... 9
Assessment ..................................................................................................................................................................... 9
Methods of Assessment .................................................................................................................................................. 9
Recording Assessment Judgements ............................................................................................................................... 9
Putting an Assessment Strategy in Place ....................................................................................................................... 9
Qualification Grading ..................................................................................................................................................... 10
Grading system ............................................................................................................................................................. 10
Qualification Grading Structure ..................................................................................................................................... 11
Determining the Overall Qualification Grade ................................................................................................................. 11
Quality Assurance of Centres ........................................................................................................................................ 12
Malpractice .................................................................................................................................................................... 12
Guidance for Teaching and Learning ............................................................................................................................ 12
Top Tips for Delivery ..................................................................................................................................................... 12

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Introduction

About ATHE

Awards for Training and Higher Education (ATHE) is a global awarding organisation regulated by Ofqual
and other United Kingdom and international regulators. We provide centres with a wide variety of
qualifications including, but not limited to: business and management, accounting, law, computing, health
& social care and religious studies. For the full list please visit our website: www.athe.co.uk
ATHE has also developed a wide range of bespoke qualifications for clients.

The ATHE mission is to provide outstanding qualifications, customer service and support, enabling
centres to thrive and their learners to achieve and progress. We will support this mission by:

• providing qualifications which enable learners to fulfil their potential and make a positive
contribution to society both socially and economically
• delivering the highest standards of customer service
• delivering support and guidance which meet the needs of all centres and enable them to improve
performance
• upholding and maintaining the quality and standards of qualifications and assessments
• having a commitment to lifelong learning and development.

Our Qualifications

Our qualifications have been created with the involvement of expert input from managers and staff in
colleges, industry professionals and our qualification development team. We have also taken into
account feedback from learners and consulted with higher education institutions to ensure the
qualifications facilitate progression to higher levels. We have taken advantage of the flexibility of the
RQF to develop a suite of awards, certificates and diplomas that offer progression across many of the
RQF levels.

Key features of the qualifications include:

• regular reviews of the units and the associated support materials so they are current and meet
the needs of learners
• alignment of the programmes of learning to degree and higher degree qualifications in HEIs in
the UK and international institutions, so there is comparability and smooth progression for
learners
• a smaller qualification for learners who do not have the time to undertake a full-time
programme
• challenging and relevant learning with flexible methods of assessment allowing tutors to select
the most appropriate methods for their learners
• opportunities for learners to achieve higher grades by unit and overall qualification and reach
their maximum potential
• learning that develops knowledge, understanding and skills e.g. problem-solving and
interpersonal skills needed by effective accounting professionals.

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Support for Centres

We are committed to supporting our centres and offer a range of training, support and consultancy
services including:

• a comprehensive guide for centres on delivering ATHE qualifications

• qualification guidance, assessor guidance, suggested resources and sample assignments for all
units which have been written and verified by experienced practitioners
• verification and guidance with all internally devised assignments
• guidance on how to deliver, assess and quality assure the qualifications
• an ATHE centre support officer who guides centres through the recognition process, learner
registration and learner results submission
• health check visits to highlight areas of good practice and any areas for development
• an allocated member of our team who can work with centres to support further improvements
in the quality of teaching, learning and assessment
• the services of a team of experienced external verifiers
• opportunities for training and staff development
• access to free webinars to support delivery, assessment and QA processes
• support for business development.

ATHE Extended Diploma in Accounting and Finance

This document provides key information on ATHE’s Level 7 Extended Diploma in Accounting and
Finance, including the rules of combination, the content of all the units and guidance on assessment
and curriculum planning. It should be used in conjunction with the ATHE handbook “Delivering ATHE
Qualifications”. Further guidance and supporting documentation on curriculum planning, internal
verification and assessment are provided separately in the Delivering ATHE Qualifications handbook
and via the ATHE website.
This qualification is regulated by Ofqual and is listed on Ofqual’s Register of Regulated Qualifications.
Each qualification has a Qualification Number (QN). This number will appear on the learner’s final
certification documentation. Each unit within a qualification also has a Unit Reference Number.

The QN number for this qualification is as follows:

ATHE Level 7 Extended Diploma in Accounting and Finance 603/5422/7

Regulation Dates
This qualification is regulated from 16.01.2020 and its operational start date in centres is 01.02.2020

Availability

This qualification is available to learners who are registered at a recognised ATHE centre which is based
in England, Wales or internationally, outside of the United Kingdom.

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Introduction to ATHE’s Level 7 Extended Diploma in Accounting and Finance

The Aims of the Qualification

The aims of this qualification are to develop knowledge, understanding and skills in a range of areas.
Areas include professional and ethical responsibilities, financial reporting, advisory skills in planning
strategic acquisitions and mergers, management accounting, taxation information and audit and
compliance in practice. These are pertinent to the development of participants and to accounting roles in
organisations. The qualification also supports progression for learners to higher qualification levels and
professional qualifications. The associated sample assignments support the development of skills
needed by individuals working in the Accounting profession.
The Level 7 Accounting and Finance qualification has been developed to conform to the requirements
of the RQF.
This qualification is therefore designed to provide:

• opportunities for learners to develop a breadth of knowledge and understanding of subject

matter related to accounting
• development of underpinning skills, personal qualities and attitudes essential for successful
performance in working life
• units that are directly related to learners’ current responsibilities or that meet a particular
interest and support career development
• a base for continued learning and a desire to constantly develop as an individual, further
improving knowledge, understanding and skills.

Entry Requirements

This qualification is designed for learners who are typically aged 18 and above.

ATHE’s policy regarding access to our qualifications is that:

• they should be available to everyone who is capable of reaching the required standards
• they should be free from any barriers that restrict access and progression
• there should be equal opportunities for all those wishing to access the qualifications.

Centres should review the prior qualifications and experience of each learner and consider whether
they provide the necessary foundations to undertake the programme of study at level 7. For learners
with disabilities and other specific needs, this review will need to take account of the support available
to the learner during teaching and assessment of the qualification. If there are exceptional entrants,
centres should contact ATHE.

For learners who have recently been in education or training the entry profile is likely to include one of
following:
• level 6 qualifications in Accounting or finance related subject
• other related level 7 subjects
• other equivalent international qualifications.

Learners must have an appropriate standard of English to enable them to access relevant resources and
complete the unit assignments.
Learners must also have an appropriate standard of Mathematics to enable them to achieve the Learning
Outcomes at the standards set by the Assessment Criteria in each unit.

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Mature learners may present a more varied profile of achievement that is likely to include relevant work
experience (paid and/or unpaid) with levels of responsibility, participation and/or achievement of relevant
professional qualifications. This may be used for recognition of prior learning (RPL). Learners may also
hold RQF qualifications which will enable them to claim an exemption from part of the qualification.

Please note that the UK Visas and Immigration Department (UKVI) requires adult students to have
acceptable English language ability before they can apply to become an adult student under Tier 4
(General) of the points-based system. As an education provider you must ensure that the applicant is
competent in the English language where the programme is taught and assessed in English. This
should be at IELTS 6.5 or 7 at a minimum of CEFR level C1 for an RQF qualification at level 7.

Centres are required to recruit learners to qualifications with integrity. Centres must carry out robust
initial assessment to ensure that learners, who undertake qualifications, have the necessary
background knowledge, understanding and skills to undertake the learning and assessment at level 7.
This assessment should take account of any support available to the learner within the centre during
the programme of study and any support that may be required to allow the learner to access the
assessment for the units within the qualification.

ATHE will review centre recruitment policies as part of the monitoring processes.

Reasonable Adjustments and Special Considerations

ATHE’s policy on reasonable adjustments and special consideration aims to enhance access to the
qualifications for learners with disabilities and other difficulties (as defined by the Equality Act 2010)
without compromising the assessment of skills, knowledge and understanding. Centres are also
required to have their own policies for reasonable adjustments and special considerations. Where the
learner has been awarded a reasonable adjustment or special consideration this must be recorded on
the assessment sheet and the learner record. External Verifiers will take account of this information at
the external verification of learner work. Further details on reasonable adjustments and special
considerations are provided in the ATHE policy document, which can be found on our website. Please
contact ATHE if you are uncertain about adjustments for certain learners.

Support and Recognition

This qualification has been developed with the support of higher education providers and centres who are
currently offering or planning to deliver accounting qualifications at this level.

Progression from Level 7 Extended Diploma in Accounting and Finance

This qualification supports learners studying alongside the ACCA Professional Papers.
Learners who complete the qualification will have the opportunity to ‘top-up’ and acquire a master’s
degree with ATHE university progression partners such as the University of Bolton. They may also seek
career advancement via employment.

ATHE Recognition of Prior Learning (RPL)

There will be occasions where learners wish to claim recognition of prior learning that has not been
formally assessed and accredited. ATHE has provided detailed guidance on RPL which is available for
centres on the ATHE website. Centres may also contact ATHE directly to obtain further clarification or
discuss the requirements for RPL.

Resources Required by Centres

ATHE expects centres to provide the right human and physical resources needed to ensure the quality of

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the learner experience. Centres must ensure that staff have the appropriate level of subject knowledge
and are normally qualified to at least a degree standard. It is desirable that staff have a teaching and/or
assessing qualification and practical experience of accounting.

The physical resources required will vary depending on the style of delivery. Where distance or
blended learning is used, ATHE expects centres to have appropriate learning support materials,
infrastructure and technology in place to meet student needs.
This information will be checked by external verifiers on their visits to centres.
Modes of Delivery

Subject to checks by external verifiers centres are able to deliver this qualification using the following
modes of delivery, in order to meet the needs of their learners. These can include:

• Full-time
• Part-time
• Blended learning
• Distance learning.

Definition of Guided Learning Hours (GLH), Total Qualification Time (TQT) and Credit

Values for Total Qualification Time, Guided Learning Hours and Credit, are calculated by considering the
different activities that a learner would typically complete in order to achieve the learning outcomes of a
qualification at the standards provided.

The needs of individual learners and the differing teaching styles used mean there will be variation in the
actual time taken to complete a qualification.

Values for Total Qualification Time, Guided Learning Hours and Credit are estimates.

Guided Learning Hours (GLH)

The term Guided Learning Hours (GLH) is an estimate of the amount of time, on average, that a lecturer,
supervisor, tutor or other appropriate provider of education or training, will immediately guide or
supervise the learner to complete the learning outcomes of a unit to the appropriate standard.

GLH are intended to provide guidance for centres on the amount of time required to deliver the
programme and support learners. GLH are made up of activities completed by the learner under
immediate guidance or supervision of a lecturer, supervisor, tutor or other appropriate provider of
education or training. Whether through actual attendance or via electronic means, the activity must be in
real time.

Some examples of activities that can contribute to Guided Learning Hours include:

• Supervised induction sessions

• Learner feedback with a teacher in real time
• Supervised independent learning
• Classroom-based learning supervised by a teacher
• Work-based learning supervised by a teacher
• Live webinar or telephone tutorial with a teacher in real time
• E-learning supervised by a teacher in real time
• All forms of assessment that take place under the immediate guidance or supervision of a
lecturer, supervisor, tutor or other appropriate provider of education or training, including
where the assessment is competence-based and may be turned into a learning opportunity.

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Total Qualification Time (TQT)

Total Qualification Time (TQT) is a guide to the amount of time a learner would take, on average, to
complete the different activities to demonstrate achievement of the learning outcomes of a whole
qualification at the standards provided.

TQT includes all the activities described under guided learning hours (GLH) plus an estimate of the
number of hours a learner will be likely to spend in completing other work, which is directed by the tutor.
This could include preparation, study or any form of participation in education or training, including
assessment, but unlike Guided Learning this is not under the immediate guidance or supervision of a
lecturer, supervisor, tutor or other appropriate provider of education or training.

Some examples of tutor directed activities that can contribute to Total Qualification Time, include:

• Preparation

- Preparation for classes

- Preparation for assignments

• Study

- Independent research/learning
- Background reading
- Compilation of a portfolio of work experience
- E-learning
- Drafting coursework or assignments
- Working in student teams
- Watching a pre-recorded podcast or webinar
- Work-based learning.

Credit

The credit value specifies the number of credits that will be awarded to a learner who has achieved the
learning outcomes of a unit at the specified standard.

Each credit represents 10 hours of learning time and equates to 10 hours of Total Qualification Time.
Therefore, one 15 credit unit represents 150 hours of Total Qualification Time. Learning time is a notional
measure which indicates the amount of time a learner at the level of the unit is expected to take, on
average, to complete the learning outcomes of the unit to the standard determined by the assessment
criteria.

Learning time includes all the activities described under Guided Learning Hours and additional learning.
The credit value of the unit will remain constant in all contexts regardless of the assessment method or the
mode of delivery. Learners will only be awarded credits for the successful completion of whole units.

The level is an indication of relative demand, complexity and depth of achievement and autonomy.

Each qualification has agreed rules of combination which indicates the number of credits to be achieved,
the units that are mandatory and the choice of optional units. The rules of combination for the unendorsed
qualifications and the pathway specific qualifications are given below.

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Qualification Structure for the Level 7 Extended Diploma in Accounting and Finance

ATHE Level 7 Extended Diploma in Accounting and Finance is a 100 credit qualification
To obtain the Level 7 Extended Diploma in Accounting and Finance learners must achieve all five
mandatory units.

The Total Qualification Time is 1000 Hours.

The Total Guided Learning Hours is 300
The Total Credit value is 100.

Unit Title Level Credit GLH

Mandatory Units
Unit 1: Corporate Reporting for Strategic Business - Advanced 7 20 60
Unit 2: Core Financial Management - Advanced 7 20 60
Unit 3: Management for Strategic Performance - Advanced 7 20 60
Unit 4: UK Taxation for Business and Individuals 7 20 60
Unit 5: Audit and Compliance Advanced 7 20 60

Guidance on Assessment and Grading

Assessment

Methods of Assessment

ATHE encourages centres to use a range of assessment vehicles that will engage learners and give them
an opportunity to both demonstrate their knowledge and understanding of a topic and to evaluate how
they might apply that knowledge in a given context. This should be part of the assessment strategy.
We would recommend avoiding essay writing and that more varied types of assessment are included. This
might include assessment through:
• a research activity resulting in the compilation of a report
• an academic paper or article for publication
• the compilation of a case study
• a critical review and evaluation of a chosen company’s policies, procedures and systems
• a set project completed for an employer (also known as an ‘employer-engagement’ activity)
• the production of a portfolio of evidence relating to a particular unit.

This list is by no means exhaustive but gives examples of some creative assessment methods that could
be adopted.

Recording Assessment Judgements

Assessors are required to record assessment judgements for each student by unit. ATHE has provided a
template for centres to use to record their judgements and this form should be used. The form enables
the centre to record any adjustments due to special considerations or reasonable adjustments. Any
adjustments following appeals should also be recorded. These records must be retained as they will be
checked at external verification visits. All learner work must be retained for a minimum of four years after
certification has taken place.
Putting an Assessment Strategy in Place

You will need to demonstrate to your External Verifier that you have a clear assessment strategy
supported by robust quality assurance in order to meet the ATHE requirements for registering learners
for a qualification. In devising your assessment strategy, you will need to ensure that:

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 • centre devised assignments are clearly mapped to the unit learning outcomes and
assessment criteria they have been designed to meet and are submitted to ATHE for
approval prior to issue to learners.
• the command verbs used in the assignment are appropriate for the level of the qualification,
e.g. analyse, evaluate, synthesise.
• the assignment gives the learner sufficient opportunity to meet the assessment criteria at
the right level, through the work they are asked to complete (The RQF level descriptors will
be helpful to you in determining the level of content of the assessment).
• students are well-briefed on the requirements of the unit and what they have to do to meet
them.
• assessors are well trained and familiar with the content of the unit/s they are assessing.
• there is an internal verification process in place to ensure consistency and standardisation
of assessment across the qualification.
• assessment decisions are clearly explained and justified through the provision of feedback
to the learner.
• work submitted can be authenticated as the learner’s own work and that there is clear
guidance and implementation of the centre’s Malpractice Policy.
• there is an assessment plan in place identifying dates for summative assessment of each
unit and indicating when external verification will be needed.
• sufficient time is included in the assessment planning to allow the learners time for any
necessary remedial work that may be needed prior to certification.

Qualification Grading

Grading system

The grading algorithms and overall grade thresholds published in any ATHE specification may be subject
to change where this is necessary to maintain standards.

This qualification involves assessment using judgements against ‘Pass’, ‘Merit’ and ‘Distinction’
Assessment Criteria to make a decision about whether a learner has met the required standard. Our
grading system is simple and we do not currently envisage the need to change this. However, should a
change become necessary, the change would be published in an updated version of the specification with
a clearly revised version number and a new ‘valid from’ date on the front cover. We will write to all centres
in good time to inform them of this change so that plans for any changes can be made to your programme
delivery, internal assessment and quality assurance arrangements.

The ATHE grading system where a qualification result can be either Pass, Merit, Distinction or Fail is as
currently follows and we plan to maintain this system for the foreseeable future:
• Learner meets all Learning Outcomes at Pass standards stated in the assessment criteria in a unit
> Learner gains a Pass for the unit
• Learner meets all Learning Outcomes at Pass standards, and where available also at Merit
standards stated in the assessment criteria in a unit > Learner gains a Merit for the unit
• Learner meets all Learning Outcomes at Pass standard, and where available also at Merit and
Distinction standards stated in the assessment criteria in a unit > Learner gains a Distinction for
the unit
• Learner does not meet all Learning Outcomes at Pass standards stated in the assessment criteria
in a unit > Learner gains a Fail for the unit
• Learner meets the rules of combination in a qualification and points for achieving units are added
up > points are converted to an overall qualification grade > learner meets minimum number of
points required > learner achieves a Pass, Merit or Distinction for the qualification
• Learner does not meet the rules of combination in a qualification and/or points for achieving units
are added up > points are converted to an overall qualification grade

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 • Learner does not meet rules of combination or minimum number of points required > learner
achieves a Fail for the qualification but may receive unit certification for those units achieving a
Pass.

Qualification Grading Structure

Determining the Overall Qualification Grade

Assessment is completed on the basis of achievement of the Learning Outcomes at the standards set by
the Assessment Criteria in each unit and the learner can achieve a pass, merit or distinction. The units
are equally weighted. As well as receiving a grade for each individual unit, learners will receive an overall
grade for the qualification. The calculation of the overall qualification grade is based on the student’s
performance in all units and the points gained from all units required for the Extended Diploma. The
learner must have attempted the valid combination of units. The formula for establishing the overall grade
is as follows.

Points for each 20-credit unit achieved are:

Pass (achieves Learning Outcomes at the standards stated in pass assessment criteria) – 40 points
Merit (achieves Learning Outcomes at the standards stated in pass and all merit assessment criteria) – 53
points
Distinction (achieves Learning Outcomes at the standards stated in pass, all merit and all distinction
Assessment Criteria) – 66 points

Calculations for the overall qualification grade:

Level 7 Extended Diploma in Accounting and Finance (100 credits)

Pass 200 - 264

Merit 265 – 329
Distinction 330 +

Example grading for Level 7 Extended Diploma in Accounting and Finance

Example 1

Marina has achieved a total of 252 points for the qualification:

Unit no. Unit result Unit points
1 Merit 53
2 Pass 40
3 Distinction 66
4 Pass 40
5 Merit 53
Total 252

Marina has achieved 252 points and will be awarded a Pass grade for the qualification as the requirement
for a Pass is 200 - 264 points.

Example 2
David has achieved a total of 278 points for the qualification:
Unit no. Unit result Unit points
1 Pass 40
2 Merit 53
3 Distinction 66
4 Distinction 66
5 Pass 53

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 Total 278

David has achieved 278 points and will be awarded an overall Merit grade for the qualification as the
requirement for a Merit is 265 - 330 points

Quality Assurance of Centres

Centres delivering ATHE qualifications must be committed to ensuring the quality of teaching and learning
so that the learner experience is assured. Quality assurance will include a range of processes as
determined by the centre and this could include: gathering learner feedback, lesson observation, analysis
of qualitative and quantitative date etc. There must also be effective standardisation of assessors and
verification of assessor decisions. ATHE will rigorously monitor the application of quality assurance
processes in centres.

ATHE’s quality assurance processes will include:

• Centre approval for those centres which are not already recognised to deliver ATHE RQF
qualifications
• Monitoring visits to ensure the centre continues to work to the required standards
• External verification of learner work.

Centres will be required to undertake training, internal verification and standardisation activities as agreed
with ATHE. Details of ATHE’s quality assurance processes are provided in the ATHE Guide “Delivering
ATHE Qualifications” which is available on our website.

Malpractice

Centres must have a robust Malpractice Policy in place, with a clear procedure for implementation.
Centres must ensure that any work submitted for verification can be authenticated as the learner’s own.
Any instance of plagiarism detected by the External Verifier during sampling, will be investigated and
could lead to sanctions against the centre.
Centres should refer to the Delivering ATHE Qualifications Guide, the ATHE Malpractice and
Maladministration Policy and Guidance on Centre Malpractice Policies. These documents are available on
the ATHE website.

Guidance for Teaching and Learning

Learners learn best when they are actively involved in the learning process. We would encourage
practitioners delivering our qualifications to use a range of teaching methods and classroom-based
activities to help them get information across and keep learners engaged in the topics they are
studying. Learners should be encouraged to take responsibility for their learning and need to be able to
demonstrate a high degree of independence in applying the skills of research, analysis and evaluation.
You can facilitate this by using engaging methods of delivery that involve active learning rather than
relying on traditional methods of lecture delivery to impart knowledge.
Your approach to delivery should give the learners sufficient structure and information on which to
build without you doing the work for them. In achieving the right balance, you will need to produce well-
planned sessions that follow a logical sequence and build on the knowledge, understanding and skills
already gained.

Top Tips for Delivery

• Adopt a range of teaching and learning methods, including active learning.

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 • Plan sessions well to ensure a logical sequence of knowledge, understanding and skills
development.
• Include study skills aspects, e.g. how to construct a report or Harvard Referencing. Build time
into your Scheme of Work and Session Plans to integrate study skills teaching.
• Set structured additional reading and homework tasks to be discussed in class.
• Elicit feedback from your students. Get them to identify where the work they have done meets
the Assessment Criteria and demonstrates achievement of the Learning Outcome.
• Contextualise your activities, e.g. using real case studies as a theme through the sessions.
• Use learner experience from the work place or other personal learning.
• Take an integrated approach to teaching topics across units, where appropriate, rather than
always taking a unit-by-unit approach. In this way, learners will be able to see the links between
the content of the different units.

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Unit Specifications

Unit Format
Each unit in ATHE’s suite of level 7 qualifications is presented in a standard format. This format
provides guidance on the requirements of the unit for learners, tutors, assessors and external verifiers.

Each unit has the following sections:

Unit Title
The unit title reflects the content of the unit. The title of each unit completed will appear on a learner’s
statement of results.

Unit Aims
The unit aims section summarises the content of the unit.

Unit Code
Each unit is assigned a unit number that appears with the unit title on the Regulated Qualifications
Framework.

RQF Level
All units and qualifications in the RQF have a level assigned to them which represents the level of
achievement. The level of each unit is informed by the RQF level descriptors. The RQF level
descriptors are available on the ATHE website.

Credit Value
The credit value is the number of credits that may be awarded to a learner for the successful
achievement of the learning outcomes of a unit.

Guided Learning Hours (GLH)

Guided learning hours are an estimate of the amount of time, on average, that a tutor, trainer, workshop
facilitator etc., will work with a learner, to enable the learner to complete the learning outcomes of a unit to
the appropriate standard.

Learning Outcomes
The learning outcomes set out what a learner is expected to know, understand or be able to do as the
result of the learning process.

Assessment Criteria
The assessment criteria describe the requirements a learner is expected to meet in order to
demonstrate that the learning outcome has been achieved. Command verbs reflect the level of the
qualification.

Unit Indicative Content

The unit indicative content section provides details of the range of subject material for the programme
of learning for the unit.

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Unit 1 – Corporate Reporting for Strategic Business – Advanced
Unit Aims The unit will ensure that students are able to examine corporate reporting
from a number of perspectives, i.e. the preparer of corporate reports and
from the perspective of a variety of different stakeholders
such as finance providers.
On completion of the unit, students will also be proficient in the assessment
and evaluation of the reporting decisions made by management and their
implications for a range of stakeholders and entities. The unit also explores
the professional and ethical responsibilities of the accountant to these
stakeholders. The unit requires students to have a cohesive understanding
of the International Accounting Standards Board’s
(IASB) Conceptual Framework for Financial Reporting and to use the
Framework as a basis for judgement in applying International Financial
Reporting Standards in corporate reports. While studying this unit, the
student will consider both the principles and practices of International
Financial Reporting Standards (IFRS) and uses these principles as a basis
for the preparation of the financial statements of single entities and groups.
By reflecting on the usefulness of corporate reports to stakeholders including
developments in narrative reporting such as Integrated Reporting, students
will be able to discuss the nature of the information that would help various
stakeholders.
Unit Level 7
Unit code F/617/9086
GLH 60
Credit Value 20
Unit Grading Pass-Merit-Distinction
Structure
Learning Outcomes. Assessment Criteria
The Learner will: The learner can:
P M D
1. Understand 1.1 Explain the
fundamental ethical and importance of
professional principles professional behaviour
in relation to accounting and compliance with
standards and accounting standards.
corporate reporting 1.2 Analyse ethical
requirements of
corporate reporting.
2. Understand the 2.1 Assess the 2M1
appropriateness of the applications of the Compare and contrast
financial reporting financial reporting the reporting of financial
framework framework. performance of different
2.2 Analyse the strengths entities.
and weaknesses of the
financial reporting
framework.

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3. Be able to prepare 3.1 Prepare group 3M1 3D1
financial statements for accounts including Analyse the accounting Evaluate the need to
groups of entities statements of cash flows. requirements that relate prepare detailed
3.2 Prepare group to foreign transactions financial statements
accounts incorporating and entities. when changes in a
associates and joint group structure occur.
arrangements.
3.3 Prepare group
accounts that involve
changes in group
structures.
4. Be able to interpret 4.1 Interpret financial 4M1
financial statements statements using ratio Analyse solutions to
and make justified analysis. current issues in
recommendations for 4.2 Make justified financial reporting that
business stakeholders recommendations based may affect the
on financial statement interpretation of key
integration. financial statements’.

Indicative Content

1. Understand fundamental ethical and professional principles in relation to accounting standards

and corporate reporting
• Professional behaviour characteristics and practical examples
• Compliance with accounting standards
• Ethical requirements
• Understanding of the consequences of non-compliance.
• Consequences of unethical behaviour.
• Understanding of different Accounting Bodies in different countries around the world, to include
AAT, ACCA, ICAEW, CIMA, CIPFA etc.
• International Accounting Standards, to include:
• IAS 1 Presentation of financial statements
• IAS 2 Inventories
• IAS 7 Statement of cash flows
• IAS 8 Accounting policies, changes in accounting estimates and errors
• IAS 10 Events after the reporting period
• IAS 16 Property, plant and equipment
• IFRS 15 Revenue
• IAS 36 Impairment of assets
• IAS 37 Provisions, contingent liabilities and contingent assets
• IAS 38 Intangible assets.

2. Understand the appropriateness of the financial reporting framework

Financial Performance of different entities:
• Revenue
• Non-current assets
• Financial instruments
• Leases
• Employee benefits
• Income taxes
• Provisions, contingencies and events after the reporting date

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 • Share-based payment
• Fair Value Measurement
• Reporting requirements of small and medium sized entities
• Other reporting issues

Sole traders and partnerships:

• Understanding of Financial Reporting Statements for sole traders and partnerships, for example:
• Income Statements
• Statements of Financial Position
• Capital and Current Accounts
• Appropriation Accounts
• Period end adjustments:
o valuation of inventory
o depreciation of non-current assets, i.e.
▪ straight line method
▪ reducing (diminishing) balance method
o irrecoverable debts
o provision for doubtful debts
o accruals
o prepayments

• Understanding of Financial Reporting Statements for limited companies:

o Main elements of Private Limited Companies’ annual accounts, i.e. income statement and
statement of financial position
o Main elements of Public Limited Companies’ annual reports, i.e. general corporate
information, accounting policies, income statement, statement of financial position,
statement of cash flows, notes to the financial statements, chairperson’s and directors’
reports and auditor’s report.
• Period end adjustments:
o valuation of inventory
o depreciation of non-current assets, i.e.
▪ straight line method
▪ reducing (diminishing) balance method
o irrecoverable debts
o provision for doubtful debts
o accruals
o prepayments

3. Be able to prepare financial statements for groups of entities

• Statements of cash flows
• Structure and preparation of group accounts
• Associate and joint arrangements – understanding and practical application
• Changes in group structures – application of the relevant accounting procedures in the financial
statements of a parent company
• Foreign transactions and entities

4. Be able to interpret financial statements and make justified recommendations for business
stakeholders
• Calculation and interpretation of:
o Liquidity ratios

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 o Profitability ratios
o Working capital ratios
o Efficiency ratios
o Resource Utilisation ratios

• Interpretation of accounting ratios and comparison of them to similar companies and industry
average ratios.
• Justified recommendations and conclusions to meet the needs of relevant parties.
• The usefulness of ratio analysis when assessing the performance of a business.
• Application of relevant accounting standards, for example, IASs and IFRSs, international financial
reporting standards and UK GAAP for FRS102 and FRS 105.
• Stakeholders to include:
o Shareholders
o Employees
o Potential investors
o Directors
o Managers
o Suppliers
o Customers
o Lenders
o Government
o Analysts

• Current issues in corporate reporting may include accounting policy changes, developments in
sustainability reporting and materiality in the context of reporting.

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Unit 2 – Core Financial Management – Advanced
Unit Aims This unit develops the students understanding of key financial management
knowledge and skills and prepares them to advise management and/or
clients on complex strategic financial management issues facing an
organisation.
The unit explores the role and responsibility of a senior executive or advisor
in meeting competing needs of stakeholders within the
business environment of multinationals. Students will examine investment
and financing decisions, considering the strategic consequences of making
such decisions in a domestic, as well as
international, context. On completion of the unit, the learners will have
developed advisory skills in planning strategic acquisitions and mergers and
corporate re-organisations.
Unit Level 7
Unit code J/617/9087
GLH 60
Credit Value 20
Unit Grading Pass-Merit-Distinction
Structure
Learning Outcomes. Assessment Criteria
The Learner will: The learner can:
P M D
1. Understand the 1.1 Explain key macro- 1M1
impact of economic terms. Evaluate the effect of
macroeconomics on 1.2 Describe changes in the macro-
different organisations determinants of national economic business
income. environment on a
1.3 Explain the impact of specific organisation.
government policies on a
world economy.
1.4 Assess the impact of
the macro-economic
environment on
organisations.
2. Understand the role 2.1 Explain the key roles 2M1
of senior financial and responsibilities of Analyse the use of
advisers and executives senior financial advisers dividend policies in
in multinational and executives. multinational
organisations 2.2 Explain how to organisations.
formulate a financial
strategy for a
multinational
organisation.
2.3 Review ethical and
governance issues when
managing a multinational
organisation.

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3. Be able to evaluate 3.1 Apply appropriate 1M1 1D1
investment decisions investment appraisal Discuss the benefits Evaluate critical
techniques to and limitations of success factors in
potential investment different investment relation to investments
projects. appraisal methods. for an organisation.
3.2 Evaluate and make
justified
recommendations on
capital and
investment strategy.
3.3 Apply the capital
asset pricing model
(CAPM) and know
how to determine the
weighted average
cost of capital
(WACC) to assess
risk and returns.
4. Be able to assess 4.1 Explain the concept 3M1
and plan acquisitions of financial Analyse the financing
and mergers reconstruction. options available for
4.2 Explain the concept acquisitions and
of business re- mergers.
organisation.
4.3 Compare and
contrast acquisitions and
mergers with other
growth strategies.
5. Be able to apply 5.1 Analyse the role of
treasury and risk the treasury function
management in multinational
techniques organisations.
5.2 Examine the use of
financial derivatives
to hedge against
forex risk.
5.3 Evaluate the use of
financial derivatives
to hedge against
interest rate risk.

Indicative Content

1. Understand the impact of macroeconomics on different organisations

• The definitions, concepts and application of the following: Macro-economics, Measurement and
issues, Data sources and reliability, Equilibrium and circular flow, Multiplier, Inflation, Deflation,
Economic cycle.
• Government policies and their impact: Fiscal policy, Monetary policy, Taxation, Expenditure,
Interest rates, Aggregate demand and supply, Supply side policies, Inflation, Unemployment,
Balance of payments, Economic growth and development.

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 • Determinants of national income: stock of factors of production, labour, capital, enterprise,
technical knowledge, political stability.

2. Understand the role of senior financial advisers in multinational organisations

• Role of a senior financial executive in a multinational organisation
• Role of a senior financial advisor in a multinational organisation
• Understanding of how to formulate a financial strategy.
• Review of the management of international trade and finance.
• Transfer pricing.
• Importance of ethical and governance issues.
• Ethical and governance issues and how these are addressed
• Key dividend polices for multinational companies.

3. Be able to evaluate investment decisions

Appraisal Methods
• Capital budgeting
• The investment appraisal process
• Identification of relevant cash flows
• Methods of investment appraisal:
• Accounting rate of return (ARR)
• Payback period
• Net present value
• Discounted payback period
• Internal rate of return (IRR)
• Advantages and disadvantages of investment appraisal methods
• Making and justifying recommendations
• Critical success factors, e.g. the assessment of the impact of financing and capital structure on an
organisation in relation to:
o Agency effects
o Pecking order propositions
o Static trade-off theory
o Modigliani and Miller propositions, before and after tax
• Assessing risk and returns
• Using CAPM and WACC

Assessing performance
• Balanced scorecard
• Shareholder value
• Economic value added

4. Be able to assess and plan acquisitions and mergers

• Definitions of acquisitions and mergers.

• Practical examples of planning an acquisition and a merger.
• Business Valuation – definition and purpose.
• Strategic implication of mergers.
• Post-merger values.
• Management theories that enable the understanding of the current market position.
• Strategies to enhance value.

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Sources of finance
• Internal and external sources of finance, to include:
• Loans
• Debentures
• Mortgages
• Retained earnings
• Government sources
• Shares

5. Be able to apply alternative treasury and risk management techniques

Hedging:
• Nature & objectives.
• Hedging risk on individual equities.
• Hedging market risk on equity portfolios.
• Hedging interest rate risk.

Speculation:
• Nature & objectives.
• Speculation using futures.
• Speculation using options.

Arbitrage:
• Nature & objectives.
• Arbitrage using futures.
• Arbitrage using options.

Use of the Capital Asset Pricing Model

• Cost of Capital
• WACC
• Use of Exchange Rates
• Interest Rates
• Foreign Exchange Rate Risk

Risk mitigation techniques to include:

• Risk Avoidance
• Risk Mitigation
• Transfer of Risk
• Risk Acceptance

The use of financial derivatives to hedge against forex and interest rate risks. Consideration of the
following:
• Forward exchange market and creation of a money market hedge
• Synthetic foreign exchange agreements
• Exchange-traded currency futures contracts
• Currency swaps
• FOREX swaps
• Currency options
• Forward rate agreements

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 • Interest rate futures
• Interest rate swaps
• Interest rate options, including collars

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Unit 3 – Management for Strategic Performance – Advanced
Unit Aims The aim of this unit is to introduce students to the strategic role of
management accounting as a discipline for planning and controlling
business performance to ensure strategic objectives can be set, monitored
and controlled. The unit covers the impact of external factors on strategic
management issues, such as macro-economic, fiscal, market and
environmental impacts on performance. The unit allows students to
consider the scope and application of high-level performance
measurement techniques in a variety of contexts, including not-for-profit
organisations and multinational businesses.
Unit Level 7
Unit code L/617/9088
GLH 60
Credit Value 20
Unit Grading Structure Pass-Merit-Distinction
Learning Outcomes. Assessment Criteria
The Learner will: The learner can:
P M D
1. Understand strategic 1.1. Describe strategic 2M1 2D1
planning and control management Assess the need for Evaluate the impact of
accounting and management risk on performance
techniques. accounting information management.
1.2.Assess the impact when a change in
of external factors on business structure
performance occurs.
management.
1.3 Analyse the
importance of
performance hierarchy.
2. Understand 2.1. Describe
performance performance
management information management systems.
systems 2.2.Review different
sources of
management
information.
2.3 Explain the use of
Data analytics in
business
3. Understand strategic 3.1 Assess the use of 3M1 3D1
performance performance Analyse divisional Assess the role of
measurement and measurement in the performance and quality in management
performance evaluation private sector. transfer pricing issues. information and
3.2 Review strategic performance
measurement in management systems.
not-for-profit
organisations.

Indicative Content

1. Understand strategic planning and control

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 • Strategic management accounting:
o Role of strategic performance management
o Role of performance measurement in working towards corporate objectives
o Comparison of planning and control at strategic and operational levels
o Scope of potential conflict between strategic business plans and decisions
o Evaluation of methods to benchmark performance
o Changing role of the management accountant as outline by Burns and Scapens

• Strategic analysis of the external environment, to include:

o PESTEL
o SWOT
o Boston Consulting Group
o Balanced Scorecard
o Porter’s generic strategies
o Five Forces Framework
o RBV
o Core Competences
o Value Chain
o McKinsey’s 7S’s
• Consideration of links to the political climate and market conditions.
• Performance Hierarchy To include:
o the purpose, structure and content of a mission statement.
o consideration of how this will impact on performance measurement and management.
o critical success factor analysis in developing performance metrics.
o how strategic objectives are passed down an organisation.
o the significance of planning activities against controlling activities.
• Performance management and control to include fixed and flexible, rolling, activity based, zero
based and incremental budgeting.
• Key uses of budgetary control for:
o Co-ordination
o Responsibility allocation
o Motivation
o Planning/Evaluation
o Communication.
• Comparison of manufacturing businesses and service businesses from a budget perspective.
• Consideration of the use and benefits of preparing budgets.
• Target setting following budget preparation - clear targets which are specific, measurable,
achievable, realistic with a time period specified for which the target should be achieved.
• Drawbacks of using forecasted data such as uncertainty and changes in demand.
• Use of variance analysis to include:
o Materials price
o Material usage
o Labour rate
o Labour efficiency
o Fixed overhead expenditure
o Fixed overhead capacity, efficiency and volume
• Splitting a variance between controllable and uncontrollable elements and make valid arguments
as to why they have occurred and suggest realistic improvements.
• Finance theories to include:
• Strategic implementation techniques

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 • Portfolio management tools.
• Models of Strategic Management
• Objective setting
• Definition of the balanced scorecard – a strategic planning and management system that is
used extensively in business to align business activities to the vision and strategy of the
organization, to improve internal and external communications and to monitor organization
performance against strategic goals.
• Portfolio theory and risk.
• Environmental and ethical issues – review and use of Mendelow’s matrix.

2. Understand performance management information systems

• Preparation of key management information systems.

• The use of enterprise resource planning systems.
• Use of the 5S’s.
• External and internal factors.
• Sources of management information – to include their costs, benefits and limitations.
• Recording and processing methods, including IT developments, for example unified corporate
databases, RFIDs, cloud and network technology.
• Data Analytics.
• Impact of Big Data.
• Role of the management accountant in relation to data analytics and big data.
• Management reports and integrated reporting to stakeholders.

Understand the use of accounting software packages

• Accounting Software – types of software, for example, Spreadsheets, Commercial Software etc.
• Commercial Software, for example, Sage, Xero, Quickbooks, etc.
• Accounting Software features, including calculation of payroll, VAT, invoice preparation etc.
• Usefulness to different business organisations.

3. Understand strategic performance measurement and performance evaluation

Capital investment appraisal in relation to finance invested in a business organisation for the purpose of
furthering its strategic objectives

Aspects of strategy may include:

o Scope of operations
o Resource allocation
o Competitive advantage
o Synergy

Financial effects of strategic decisions, to include:

o A definition of strategic decisions relating to long term, complex decisions developed by
management.
o The importance of strategic decisions which can consist of less complex, medium term and
tactical decisions.

Strategic performance measures in the private sector. Review of measures of performance to include:

Interpretation of:
• Liquidity ratios

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 • Profitability ratios
• Working capital ratios
• Efficiency ratios
• Resource Utilisation ratios
• Net Present Value
• Internal Rate of Return
• Economic Value Added

Development and calculation of relevant performance indicators for a business measuring profitability and
performance and apply benchmarking and balance scorecard as a method of appraisal. (Comparing
different companies and to industry averages).

Distinguishing between qualitative and quantitative measures and application to case study material.

Explanation of why quality and continuous improvement is important with knowledge of the different
testing and sampling methods/total quality management and internal and external quality costs.
The use of publicly available reports and financial analysis by different stakeholder groups. For example:

• Shareholders
• Employees
• Potential investors
• Directors
• Managers
• Suppliers
• Customers
• Lenders
• Government
• Analysts
.
The usefulness of ratio analysis when assessing the performance of a business

Consideration of:

• Strategic performance measures for profit making and not-for-profit making organisations.
• Non-financial performance indicators
• Role of quality in management information
• Role of quality in performance measurement systems
• Application of Japanese business techniques to include:
o Kaizen
o Target costing
o Just in Time
o Total Quality Management
• Performance measurement and the link with Human Resource Management issues
• Behavioural aspects of performance measurement
• Views of performance measurement and management – balanced scorecard approach,
performance pyramid, the theory of Fitzgerald and Moon, activity-based management and valued
based management approaches.
• Strategic performance issues in complex business structures, for example, strategic alliances, joint
ventures and complex supply chain structures.
• Corporate failure – to include the use of Z-scores and Argenti.

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Unit 4 – UK Taxation for Business and Individuals – Advanced
Unit Aims The aims of this unit are to ensure that students have a detailed
understanding of the techniques of the key aspects of taxation. It will extend
the students’ knowledge of the tax system, together with
their ability to apply that knowledge to the issues commonly encountered by
individuals and businesses in the UK. This knowledge will allow students to
interpret and analyse the information provided and communicate the
outcomes in a manner appropriate to the intended audience.

The unit builds on previous taxation study and extends the knowledge of
income tax, corporation tax, capital gains tax and inheritance tax to
encompass, further overseas aspects of taxation, the taxation of trusts and
additional exemptions and reliefs.

This unit does not focus in detail on the numerical and computational
aspects of taxation, but seeks to develop a student’s ability to analyse,
interpret and communicate taxation information. Computations and practical
examples will be used to support explanations and client advice.
Unit Level 7
Unit code R/617/9085
GLH 60
Credit Value 20
Unit Grading Pass-Merit-Distinction
Structure
Learning Outcomes. Assessment Criteria
The Learner will: The learner can:
P M D
1. Understand 1.1.Analyse income and 2M1 2D1
advanced income tax liabilities Evaluate income and Assess the use of
aspects of the relating to overseas income tax liabilities in stamp taxes in the UK
UK Taxation aspects of organisational relation to trusts. Taxation System.
System activities.
1.2.Explain the
application of additional
exemptions and reliefs.
1.3.Analyse chargeable
gains and capital gains
tax liabilities involving
overseas aspects of
organisational activities.
1.4.Examine the
application of inheritance
tax, relating to the
principles of valuation
and the reliefs available,
transfers of property to
and from trusts, overseas
aspects of organisational
activities and further
aspects of administration.

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 1.5.Assess the
application of corporation
taxation liabilities relating
to overseas aspects of
organisational activities.
1.6 Evaluate the use of
Value Added Tax in the
UK Taxation System.
2. Be able to 2.1 Apply taxes to given 2M1 2D1
assess the situations. Assess the effect on Evaluate how
impact of 2.2 Analyse tax taxation of financial alternative ways of
relevant taxes in advantages and decisions made by achieving personal
given situations disadvantages of individuals and and business
different courses of businesses. outcomes may
action.
lead to different tax
2.3 Assess the Statutory
obligations imposed in a consequences.
given situation, including
the implications of non-
compliance.
3. Be able to apply 3.1Evaluate types of 3M1 3D1
taxation planning investment and Evaluate ethical and Review current issues
measures to expenditure resulting in a professional issues in taxation.
minimise or defer reduction in tax liabilities. arising from the giving
tax liabilities 3.2 .Review legitimate tax of tax planning advice.
planning measures.
3.3 Evaluate the
mitigation of tax for
individuals and
businesses.
4. Be able to 4.1 Communicate advice
communicate and information in an
taxation appropriate format for all
information to all relevant stakeholders.
relevant 4.2 Note assumptions
stakeholders made and limitations to
the information provided
to stakeholders.
4.3 Assess non-taxations
factors applicable to
individual stakeholders.

Indicative Content

1. Understand advanced aspects of the UK Taxation System

• Income Tax and National Insurance to include:

o The scope of income tax
o Income from employment
o Income from self-employment
o Property and investment income
o The comprehensive computation of taxable income and the income tax liability

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 o National insurance contributions for employed and self-employed persons
o The use of exemptions and reliefs in deferring and minimising income tax liabilities
o Concepts of residence, domicile and deemed domicile.
o Chargeable Gains and Capital Gains Tax liabilities to include:
o The scope of the taxation of capital gains
o The basic principles of computing gains and losses
o Gains and losses on the disposal of movable and immovable property
o Gains and losses on the disposal of shares and securities
o The computation of capital gains tax
o The use of exemptions and reliefs in deferring and minimising tax liabilities arising on the
disposal of capital assets.
o Inheritance tax to include:
o The scope of Inheritance Tax
o The basic principles of computing transfers of value
o Liabilities arising on chargeable on the death of an individual person
o Calculation of Inheritance Tax liabilities
o Payment systems for Inheritance Tax liabilities
o The liabilities arising on the chargeable lifetime transfers and on the death of an individual
o The use of exemptions in deferring and minimising inheritance tax liabilities

• Corporation tax to include:

o The scope of Corporation Tax
o Taxable total profits
o Chargeable gains for companies
o The comprehensive computation of the corporation tax liability
o The effect of a group corporate structure for corporation tax purposes
o The use of exemptions and reliefs in deferring and minimising corporation tax liabilities

• Stamp taxes to include:

o The scope of stamp taxes
o Liabilities arising on transfers
o Use of exemptions and reliefs in deferring and minimising stamp taxes

• Value Added Tax (VAT) to include:

o The scope of VAT
o VAT Registration requirements
o VAT rates
o Cash and accruals systems of accounting for VAT
o Computation of VAT liabilities and completion of VAT Returns
o Special schemes for accounting VAT

2. Be able to assess the impact of relevant taxes in given situations

• Identification of key advice that is required to be supplied on the taxes applicable in a specific
situation.
• Alternative ways of achieving personal or business outcomes learning to different tax
consequences – to include comparisons of alternative scenarios.
• Assessment of how taxation affects financial decisions for both incorporated and unincorporated
business organisations.
• Assessment of how taxation affects financial decisions of individuals.

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 • Advantages and Disadvantages of different courses of actions for individuals and both
incorporated and unincorporated business organisations.
• Understanding of statutory obligations imposed in a set scenario – to include time limits and non-
compliance.

3. Be able to apply taxation planning measures to minimise or defer tax liabilities

• Range of different types of investment and other expenditure that may result in a reduction in tax
liabilities for individuals and both incorporated and unincorporated business organisations. Be able
to advise on the appropriateness of each of these types.
• Understanding of legitimate tax planning.
• Mitigation of tax based on numerical analysis and reasoned argument.
• Assessment of ethical and professional issues.
• Current issues in taxation in the UK

4. Be able to communicate taxation information to all relevant stakeholders

• Stakeholders, to include:
o Shareholders
o Employees
o Potential investors
o Directors
o Managers
o Suppliers
o Customers
o Lenders
o Government
o Analysts
o HMRC

• Communication to include:
o Emails
o Reports
o Letters
o Memoranda
o Meeting notes
o Face to Face communication
• Understanding of the limitations of any analysis completed.
• Explanation of assumptions made when providing a client with information.

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Unit 5 – Audit and Compliance – Advanced
Unit Aims The aims of this unit are to ensure that students have a sound
understanding of audit and assurance in practice. The unit begins with a
review of the legal and regulatory environment and the need to comply with
appropriate practice management techniques.
Students will have opportunity to consider the audit of financial statements,
including planning, evidence and review.
Unit Level 7
Unit code J/617/9090
GLH 60
Credit Value 20
Unit Grading Pass-Merit-Distinction
Structure
Learning Outcomes. Assessment Criteria
The Learner will: The learner can:
P M D
1. Understand the 1.1 Describe international 2M1 2D1
regulatory regulatory frameworks for Evaluate the need for Discuss how to
environment and audit and assurance money laundering comply with the
professional and services. regulation. regulatory
ethical 1.2 Discuss the environment for an
considerations regulation surrounding accountant including
money laundering.
professional and
1.3 Discuss the use of
the Code of Ethics and ethical considerations.
Conduct in Accounting
Practice
2. Understand 2.1 Review the need for
issues and firm-wide quality control.
developments in 2.3 Discuss current
audit and professional and ethical
assurance developments in audit
and assurance.
3. Be able to plan 3.1 Demonstrate how to 3M1 3D1
and conduct an plan an audit on historical Analyse the need for Evaluate auditing
audit financial information. social, environmental aspects of insolvency.
3.2 Demonstrate how to and integrated
conduct an audit on reporting.
historical financial
information.

Indicative Content

1. Understand the regulatory environment and professional and ethical considerations

• The regulatory environment, to include:

o Laws
o International Regulatory Frameworks for audit and assurance services
o Rules and regulations to control the behaviour and actions of business activities
• Professional conduct – regulation of members of professional bodies acting under statutory or
contractual powers.

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 • Rules of professional conduct to ensure proper standards of professional conduct are observed.
• Rules to include:
o Integrity
o Objectivity
o Confidentiality
o Competency
• Regulations relating to Money Laundering
• Code of Ethics and Conduct
• Risk of Fraud and Error in audit and assurance services
• Professional Liability

2. Understand quality control, practice management and current issues and developments in audit
and assurance

• Definition of audit risk.

• Types of audit risk:
o Inherent risk
o Control risk
o Detection risk
• The audit risk model – used by auditors to manage the overall risk.
• Link between account preparation and the audit conducted.
• Different kinds of controls, e.g. behavioural, social and output
• Financial controls – detective, preventative and corrective controls.
• Controls, feedback and feed forward controls;
• Advantages and disadvantages of controls;
• Understanding of key business risks; people risks, process risks.
• Role of internal control function; how controls help to management risk.
• Management of risk within organisations.
• Organisational structures including responsibility centres, department and functional relationships.
• External business factors, for example taxes and interest rates that affect budget processes.
• Principles and theories related to the development of budgets and forecasts.

3. Be able to plan and conduct an audit

Audit Strategies and Plans

Audit process to include:

• Requesting documents
• Preparing an audit plan
• Holding an open meeting
• Drafting a report
• End meeting – to discuss the report.

Be able to design appropriate audit procedures in relation to:

• inventory
• non-current assets
• intangible assets
• investment properties
• assets held for sale and discontinued operations
• financial instruments

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 • fair values
• government grants
• leases
• impairment
• provisions, contingent liabilities and contingent assets
• borrowing costs.
• employee benefits
• share-based payment transactions
• taxation (including deferred tax)
• related parties
• revenue from contracts with customers
• statement of cash flows
• business combinations
• events after the end of the reporting period
• the effects of foreign exchange rates
• segmental reporting
• earnings per share
• changes in accounting policy

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