1. PERFORMANCE EVIDENCE

Evidence of the ability to:

identify and document record and systems requirementsevaluate alternative systems and acceptance test systemsprepare systems documentation and implement reporting systems and records that comply with:

statutory requirementsorganisational policy and procedures

monitor and review reporting systems.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

2. KNOWLEDGE EVIDENCE

To complete the unit requirements safely and effectively, the individual must:

outline the key features of statutory requirements, codes of practice and organisational policy and procedures relating to accounting systemsdiscuss ethical considerations for the handling of financial reconstruction explain the key features of financial legislation relating to taxable transactions and reporting requirementsoutline a range of considerations for developing accounting system specificationscompare and contrast methods of data protection explain the key principles and practices of budgetary control and implications for accounting systemsexplain the process and procedures for recording and storing financial data.

3. ASSESSMENT CONDITIONS

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

common office equipment, technology, software and consumablesan integrated financial software system and data organisational records, policy and procedures.

Assessors must satisfy NVR/AQTF assessor requirements.

ASSESSM EN T 1 – C ASE STU DY

For this assessment the student must complete the following case study.

‘Stratford on Murray’ is a company that arranges cosmetic parties and presentations in customers’

homes selling a range of Stratford cosmetics and giftware. The firm is currently comprised of

Qiuhong, Samia and Samia’s daughter, Erica. Sales have been increasing steadily and Quihong and

Samia wish to migrate from a manual system to a computerised management information system.

They wish to record sales and receipts, maintain debtor control and keep better track of customers.

Instead of only providing cash sales, they will accept credit flexibility obtained through Veeza, a large

credit provider. Veeza’s terms are a minimum flat fee per transaction of $2.50 or 3.50% of the value

charged.

‘Stratford on Murray’ receive orders from clients, if paying by credit card a check is conducted to make sure that the credit card is not on the list of stolen or cancelled cards. If it is on the list, credit is refused immediately. If not, an invoice is raised and a Veeza receipt is printed for the client to sign. All invoices are posted at the end of the day.Quihong and Samia will both draw $1800 a fortnight as a salary paying full tax on it. Cheques are drawn and data is processed and posted.A purchasing/accounts payable system is also required with facility for BPAY, payment by direct transfer and cheques.

REQUIRED:

The student must prepare a report outlining the Design of the Accounting system to be used by ‘Stratford on Murray’. Areas to be included are:

Objectives of Accounting system System specification System design Documentation design System Testing Security requirements Recording processes Implementation plan Training Schedules Compliance Integrity of system Reporting requirements Reporting Procedures Evaluation and modification of accounting system Continuous Improvement

Students will need to research beyond the learner resource to complete this assignment.

Answer Sheet (Expandable)

ASSESSM EN T 2 - KN O WLE DG E QUE STIO N I NG

Answer Sheet (Expandable)

1. How would you define an Accounting Information System? An accounting information system (AIS) is a system of collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.

2. Different users want different things from their accounting system. What might those things be?

3. What tasks does a basic accounting system perform?

4. What steps are involved in Identifying and recording system requirements? Prepare comprehensive specifications based on requirements of potential users that include system objectives, document specifications, and security and records requirements Review features of any existing system and records to establish their suitability and usabilityEstablish recording processes according to accepted practice and in accordance with legislation and codes of practice

5. What are five (05) primary components of a Management Information System (MIS)?The five primary components of a Management Information System are:

Hardware Software Data (information for decision making) Procedures (design, development and documentation) People (individuals, groups, or organisations)

6. How would you evaluate alternative systems?Compare and measure features of various systems against user requirements in order to identify alternative systems and solutionsCarry out cost–benefit analysis of the alternative systems and solutions, and document recommendations . A cost-benefit analysis is an analysis of the benefit and the costs of the product on paper so that the user can more easily compare the product. 

7. Why should you perform a test on the system prior to purchasing?You test systems in an operational environment in order to ensure compliance with the user requirements, company policy and guidelines as well as system specifications and relevant legislation or industry codes of practice

8. Write down 4 vital security elements for an Accounting Information System.

Physical securityAuthenticationVirus protectionBackup

9. How can you ensure system documentation is prepared thoroughly?

10. What are the 5 critical steps when implementing a new accounting system? Describe each one.

11. Monitoring and reporting of systems is vital in continuous improvement and to ensure compliance. Why?

12. Write down five steps of Communication Process.

ASSESSM EN T 3 - PR O JE CT

For the project the learner will complete the following assessment.The project will allow the learner to display required knowledge and skills that are essential when contextualising overall competency. This assessment should be no less than 1000 words and should address each of the below points.Your task is to research the following information and prepare a short report on each of the

following points:

Ethical considerations for the handling of financial reconstruction such as:

o Conflict of interests

o Confidentiality

o Disclosure requirements

Financial legislation such as:

o Taxable transactions

o Reporting requirements

Methods of data protection including:

o Back-ups

o Security

Principles and practices of budgetary control such as:

o Double-entry bookkeeping

o Accrual accounting

Principles of internal control including statutory reporting

Procures and procedures for recording and storing financial data

The information in your report must be relevant to the financial services sector and should be

presented in a formal structure.

Answer Sheet (Expandable)