Edexcel Level 4 Diploma in Accounting (QCF)

Specification

Edexcel NVQ/competence-based qualifications For first registration 1 March 2012

Pearson Education Ltd is one of the UK’s largest awarding organisations, offering academic and vocational qualifications and testing to schools, colleges, employers and other places of learning, both in the UK and internationally. Qualifications offered include GCSE, AS and A Level, NVQ and our BTEC suite of vocational qualifications, ranging from Entry Level to BTEC Higher National Diplomas. Pearson Education Ltd administers Edexcel GCSE examinations.

Through initiatives such as onscreen marking and administration, Pearson is leading the way in using technology to modernise educational assessment, and to support teachers and learners.

References to third-party material made in this specification are made in good faith. We do not endorse, approve or accept responsibility for the content of materials, which may be subject to change, or any opinions expressed therein. (Material may include textbooks, journals, magazines and other publications and websites.)

Authorised by Martin Stretton Prepared by Roger Field

Publications code N031199

All the material in this publication is copyright © Pearson Education Limited 2012

Contents

Qualification title covered by this specification 1

Key features of the Edexcel Level 4 Diploma in Accounting (QCF) 2

What is the purpose of this qualification? 2

Who is this qualification for? 2

What are the benefits of this qualification to the learner and employer? 2

What are the potential job roles for those working towards this qualification? 3

What progression opportunities are available to learners who achieve this qualification? 3

What is the qualification structure for the Edexcel Level 4 Diploma in Accounting (QCF)? 4

Qualification structure 4

How is the qualification graded and assessed? 5

Assessment strategy 5

Types of evidence 6

Centre recognition and approval 7

Centre recognition 7

Approvals agreement 7

Quality assurance 7

What resources are required? 7

Unit format 8

Units 9

Unit 1: Principles of drafting financial statements 11

Unit 2: Drafting financial statements 15

Unit 3: Principles of budgeting 19

Unit 4: Drafting budgets 23

Unit 5: Principles of managing financial performance 27

Unit 6: Measuring financial performance 31

Unit 7: Principles of internal control 35

Unit 8: Evaluating accounting systems 39

Unit 9: Principles of credit management 43

Unit 10: Control of debt and credit 47

Unit 11: Principles of personal tax 51

Unit 12: Calculating personal tax 55

Unit 13: Principles of business tax 59

Unit 14: Calculating business tax 63

Unit 15: Principles of external audit 67

Unit 16: Auditing financial statements 71

Further information 75

Useful publications 75

How to obtain National Occupational Standards 75

Professional development and training 76

Annexe A: Progression pathways 77

Selected Edexcel qualifications available in accounting and finance 77

Annexe B: Quality assurance 79

Key principles of quality assurance 79

Quality assurance processes 79

Annexe C: Centre certification and registration 81

What are the access arrangements and special considerations for the qualifications in this specification? 81

Annexe D: Assessment strategy 83

Introduction and scope 83

A: Teaching and assessment 83

B: Workplace assessment and simulation 84

C: Quality assurance and quality control 84

D: Competence of assessors and verifiers 84

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

1

Qual

ific

atio

n t

itle

cov

ered

by

this

spec

ific

atio

n

This

spec

ific

atio

n g

ives

you t

he

info

rmation y

ou n

eed t

o o

ffer

the

Edex

cel Le

vel 4 D

iplo

ma in A

ccounting (

QCF)

:

Qu

alifi

cati

on

tit

le

Qu

alifi

cati

on

N

um

ber

(QN

) A

ccre

dit

ati

on

st

art

date

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

600/4

723/9

01/0

3/2

012

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atio

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as

bee

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ppro

ved w

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ific

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redit F

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N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

2

Key features of the Edexcel Level 4 Diploma in Accounting (QCF)

This qualification:

is nationally recognised

is based on the National Occupational Standards (NOS) for Accounting.

Edexcel expects that the Edexcel Level 4 Diploma in Accounting will be approved as a component required for the Higher Apprenticeship in Accounting.

What is the purpose of this qualification?

This qualification is designed to recognise occupational competence in accounting at level 4 and thus provide opportunities for career and educational progression.

Who is this qualification for?

This qualification has been developed for those working, or wishing to work, in accounting. It is intended to provide progression from the Edexcel Level 3 Diploma in Accounting, allowing learners to further develop their accounting skills.

This qualification is for all learners aged 16 and above who are capable of reaching the required standards.

Edexcel’s policy is that its qualifications should:

be free from any barriers that restrict access and progression

ensure equality of opportunity for all wishing to access them.

What are the benefits of this qualification to the learner and employer?

For learners, the benefits of this qualification are that it:

allows them to develop skills that will be useful to them in their day-to-day job role

confirms their occupational competence, thus enhancing their employability

motivates them by giving the opportunity to gain a nationally-recognised level 4 qualification that demonstrates ongoing professional development.

For employers, the benefits of this qualification are that it:

helps identify training needs by benchmarking best practice

motivates staff to perform at a high standard, resulting in better customer satisfaction and improved staff retention

allows for increased confidence in the performance of staff who have achieved the qualification.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

3

What are the potential job roles for those working towards this qualification?

Accounting technician – duties may include overall strategic responsibility for an accounts payable and receivable department, with wider credit management and people management duties.

Accounts manager – duties may include controlling budgets, assisting with the preparation of accounts and writing reports.

What progression opportunities are available to learners who achieve this qualification?

Learners who have successfully completed this qualification can progress on to foundation degrees in Accounting, and also to qualifications for chartered accountants.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

4

What is the qualification structure for the Edexcel Level 4 Diploma in Accounting (QCF)?

Qualification structure summary

Learners must achieve all eight mandatory units (31 credits) plus two of the optional unit groups B1–B4 (comprising 4 units in total) for a minimum combined total of 41 credits.

Individual units can be found in the Units section.

Qualification structure

Edexcel Level 4 Diploma in Accounting (QCF)

No. Unit reference

Group A: Mandatory units Credit Level

1 L/600/4954 Principles of drafting financial statements 4 4

2 R/600/4955 Drafting financial statements 6 4

3 Y/600/4956 Principles of budgeting 3 4

4 D/600/4957 Drafting budgets 4 4

5 H/600/4958 Principles of managing financial performance 3 4

6 K/600/4959 Measuring financial performance 4 4

7 D/600/4960 Principles of internal control 3 4

8 H/600/4961 Evaluating accounting systems 4 4

No. Unit reference

Group B1: Optional units – credit management

Credit Level

9 M/600/4963 Principles of credit management 2 4

10 T/600/4964 Control of debt and credit 3 4

No. Unit reference

Group B2: Optional units – personal tax Credit Level

11 A/600/4965 Principles of personal tax 2 4

12 F/600/4966 Calculating personal tax 3 4

No. Unit Ref. Group B3: Optional units – business tax Credit Level

13 J/600/4967 Principles of business tax 3 4

14 L/600/4968 Calculating business tax 3 4

No. Unit Ref. Group B4: Optional units – audit Credit Level

15 R/600/4969 Principles of external audit 3 4

16 J/600/4970 Auditing financial statements 4 4

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

5

How is the qualification graded and assessed?

The overall grade for this qualification is a ‘pass’. The learner must achieve all the required units within the specified qualification structure.

To pass a unit the learner must:

achieve all the specified learning outcomes

satisfy all the assessment criteria by providing sufficient and valid evidence for each criterion

show that the evidence is their own.

The qualification is designed to be assessed:

in the workplace or

in conditions resembling the workplace, as specified in the assessment strategy for the sector.

Assessment strategy

The assessment strategy for this qualification can be found in Annexe D. This includes details on:

teaching and assessment strategies

workplace assessment and simulation

quality control of assessment

competence of assessors and verifiers.

Evidence of competence may come from:

current practice where evidence is generated from a current job role

a programme of development where evidence comes from assessment opportunities built into a learning/training programme whether at or away from the workplace

the Recognition of Prior Learning (RPL) where a learner can demonstrate that they can meet the assessment criteria within a unit through knowledge, understanding or skills they already possess without undertaking a course of learning. They must submit sufficient, reliable and valid evidence for internal and standards verification purposes. RPL is acceptable for accrediting a unit, several units or a whole qualification

a combination of these.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

6

It is important that the evidence is:

Valid relevant to the standards for which competence is claimed

Authentic produced by the learner

Current sufficiently recent to create confidence that the same skill, understanding or knowledge persist at the time of the claim

Reliable indicates that the learner can consistently perform at this level

Sufficient fully meets the requirements of the standards.

Types of evidence

To successfully achieve a unit, the learner must gather evidence which shows that they have met the required standard in the assessment criteria. Evidence can take a variety of forms, including the following:

products of work carried out in the workplace. This may include, for example, written documents, screen dumps, print-outs or electronic copies of accounting records, etc

simulation of real work, using case studies and assignments

oral presentation and questioning

written tests, including multiple choice papers

direct observation of workplace activities by the assessor

professional discussion between the assessor and the candidate

witness testimony from managers and others at the workplace.

Learners can use one piece of evidence to prove their knowledge, skills and understanding across different assessment criteria and/or across different units. It is, therefore, not necessary for learners to have each assessment criterion assessed separately. Learners should be encouraged to reference the assessment criteria to which the evidence relates.

Evidence must be made available to the assessor, internal verifier and Edexcel standards verifier. A range of recording documents is available on the Edexcel website www.edexcel.com. Alternatively, centres may develop their own.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

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Centre recognition and approval

Centre recognition

Centres that have not previously offered Edexcel qualifications need to apply for and be granted centre recognition as part of the process for approval to offer individual qualifications. New centres must complete both a centre recognition approval application and a qualification approval application.

Existing centres will be given ‘automatic approval’ for a new qualification if they are already approved for a qualification that is being replaced by the new qualification and the conditions for automatic approval are met. Centres already holding Edexcel approval are able to gain qualification approval for a different level or different sector via Edexcel Online.

Approvals agreement

All centres are required to enter into an approvals agreement which is a formal commitment by the head or principal of a centre to meet all the requirements of the specification and any linked codes or regulations. Edexcel will act to protect the integrity of the awarding of qualifications, if centres do not comply with the agreement. This could result in the suspension of certification or withdrawal of approval.

Quality assurance

Detailed information on Edexcel’s quality assurance processes is given in Annexe B.

What resources are required?

This qualification is designed to support learners working in the Accounting sector. Physical resources need to support the delivery of the qualification and the assessment of the learning outcomes and must be of industry standard. Staff assessing the learner must meet the requirements within the assessment strategy for the sector as shown in Annexe D.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

8

Unit format

Each unit in this specification contains the following sections.

Unit title:

Unit reference number:

QCF level:

Credit value:

Guided learning hours:

Unit summary:

Evidence requirements:

Assessment methodology:

Recording of evidence:

Learning outcomes:

Assessment criteria:

Evidence type:

Portfolio reference:

Date:

The unit title is accredited on the QCF and this form of words will appear on the learner’s Notification of Performance (NOP).

This code is a unique reference number for the unit.

All units and qualifications within the QCF have a level assigned to them, which represents the level of achievement. There are nine levels of achievement, from Entry level to level 8. The level of the unit has been informed by the QCF level descriptors and, where appropriate, the NOS and/or other sector/professional.

All units have a credit value. The minimum credit value is one, and credits can only be awarded in whole numbers. Learners will be awarded credits when they achieve the unit.

A notional measure of the substance of a qualification. It includes an estimate of the time that might be allocated to direct teaching or instruction, together with other structured learning time, such as directed assignments, assessments on the job or supported individual study and practice. It excludes learner-initiated private study.

This provides a summary of the purpose of the unit.

Learners must provide evidence for each of the requirements stated in this section.

Learning outcomes state exactly what a learner should know, understand or be able to do as a result of completing a unit.

The assessment criteria of a unit specify the standard a learner is expected to meet to demonstrate that a learning outcome, or a set of learning outcomes, has been achieved.

Learners must reference the type of evidence they have and where it is available for quality assurance purposes. The learner can enter the relevant key and a reference. Alternatively, the learner and/or centre can devise their own referencing system.

This provides a summary of the how evidence should be recorded.

The learner should use this box to indicate where the evidence can be obtained eg portfolio page number.

The learner should give the date when the evidence has been provided.

Information about how the unit must be delivered and assessed.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

9

Units

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

10

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

11

Unit 1: Principles of drafting financial statements

Unit reference number: L/600/4954

QCF level: 4

Credit value: 4

Guided learning hours: 35

Unit summary

Learners will develop knowledge and understanding of the external reporting environment for limited companies and for groups who are required to publish accounts. The principles of consolidated accounts and the analysis and interpretation of financial statements through ratio analysis are also covered.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of preparing forecasts and budgets. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 2: Drafting financial statements.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

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Edex

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iplo

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in A

ccounting (

QCF)

–

Issu

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Mar

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012 ©

Pea

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duca

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imited

2012

12

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

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ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Under

stan

d t

he

regula

tory

fr

amew

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that

under

pin

s finan

cial

rep

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1.1

Exp

lain

the

scope,

ele

men

ts a

nd p

urp

ose

, fo

r diffe

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use

rs,

of pre

par

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anci

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tate

men

ts

for

exte

rnal re

port

ing

1.2

D

escr

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legis

lation a

nd r

egula

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hic

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ust

be

com

plie

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ith in t

he

pre

para

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f th

e finan

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st

atem

ents

1.3

Exp

lain

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reaso

ns

for

gove

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by

legis

lation

and r

egula

tion

1.4

Exp

lain

the

rele

vance

of

acco

unting s

tandar

ds

1.5

Exp

lain

the

duties

and r

esponsi

bili

ties

of th

e direc

tors

, or

oth

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esponsi

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par

ties

, of

a co

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te o

rgan

isat

ion

2

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d t

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key

feat

ure

s of a

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D

escr

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the

key

com

ponen

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purp

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stat

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finan

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bal

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D

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the

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purp

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key

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and t

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effe

ct o

f th

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cial

sta

tem

ents

N031199 –

Spec

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atio

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Edex

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QCF)

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012 ©

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Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

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D

ate

3

Under

stan

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asi

c princi

ple

s of

conso

lidat

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3.1

D

escr

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the

key

com

ponen

ts o

f a s

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f co

nso

lidat

ed fin

anci

al st

atem

ents

: par

ent,

su

bsi

dia

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non-c

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(m

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), g

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fair v

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pro

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D

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the

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Appre

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4.1

D

emonst

rate

an u

nder

stan

din

g o

f th

e re

lationsh

ip

bet

wee

n t

he

elem

ents

of

the

finan

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Exp

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how

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late

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atio

s:

pro

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bili

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inte

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tation a

nd a

naly

sis

of

acco

unting r

atio

s is

use

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busi

nes

s en

viro

nm

ent

N031199 –

Spec

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Edex

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Mar

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012 ©

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Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

15

Unit 2: Drafting financial statements

Unit reference number: R/600/4955

QCF level: 4

Credit value: 6

Guided learning hours: 55

Unit summary

Learners will be able to prepare a full range of financial statements for a limited company including consolidated accounts for a simple group. They will also be able to use the information they have collated to identify the financial position of the business in terms of profitability, liquidity and how they use their resources.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in preparing financial statements. In order for them to do this successfully, this unit must be delivered and assessed alongside Unit 1: Principles of drafting financial statements, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

16

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Dra

ft s

tatu

tory

fin

anci

al

stat

emen

ts for

a lim

ited

co

mpan

y

1.1

Apply

acc

ounting s

tandar

ds

and r

elev

ant

legis

lation

to c

orr

ectly

iden

tify

, an

d a

ccura

tely

adju

st,

acco

unting info

rmat

ion

1.2

U

se a

ppro

priat

e in

form

atio

n t

o a

ccura

tely

dra

ft a

st

atem

ent

of

com

pre

hen

sive

inco

me

1.3

U

se a

ppro

priat

e in

form

atio

n t

o a

ccura

tely

dra

ft a

st

atem

ent

of

finan

cial

posi

tion (

bal

ance

shee

t)

1.4

Pr

epare

note

s to

the

acco

unts

whic

h s

atis

fy

stat

uto

ry c

urr

ent

dis

closu

re r

equirem

ents

in r

espec

t of acc

ounting p

olic

ies,

fix

ed a

sset

s, c

urr

ent

and

long-t

erm

lia

bili

ties

, eq

uity

1.5

D

raft

an a

ccura

te s

tate

men

t of

cash

flo

ws

(cas

h

flow

sta

tem

ent)

2

Dra

ft s

imple

conso

lidat

ed

finan

cial

sta

tem

ents

2.1

D

raft

a c

onso

lidat

ed inco

me

state

men

t fo

r a

pare

nt

com

pany

with o

ne

part

ly-o

wned

subsi

dia

ry

2.2

D

raft

a c

onso

lidat

ed s

tate

men

t of

finan

cial

posi

tion

(bal

ance

shee

t) f

or

a p

aren

t co

mpan

y w

ith o

ne

par

tly-

ow

ned

subsi

dia

ry

2.3

Apply

curr

ent

stan

dard

s to

acc

ura

tely

cal

cula

te a

nd

appro

priat

ely

dea

l w

ith t

he

acco

unting t

reat

men

t of

goodw

ill,

non-c

ontr

olli

ng inte

rest

(m

inori

ty inte

rest

) an

d p

ost

-acq

uis

itio

n p

rofits

, in

the

gro

up f

inan

cial

st

atem

ents

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

17

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

3

Inte

rpre

t finan

cial

st

atem

ents

usi

ng r

atio

an

alys

is

3.1

Cal

cula

te a

nd inte

rpre

t th

e re

lationsh

ip b

etw

een t

he

elem

ents

of th

e finan

cial

sta

tem

ents

with r

egar

d t

o

pro

fita

bili

ty,

liquid

ity,

eff

icie

nt

use

of

reso

urc

es a

nd

finan

cial

posi

tion

3.2

D

raw

val

id c

oncl

usi

ons

from

the

info

rmat

ion

conta

ined

within

the

finan

cial

sta

tem

ents

3.3

Pr

esen

t cl

early

and c

onci

sely

iss

ues

, an

alys

is a

nd

concl

usi

ons

to t

he

appro

pri

ate

peo

ple

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

18

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

19

Unit 3: Principles of budgeting

Unit reference number: Y/600/4956

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about understanding how and why budgets are prepared. The learner will develop the necessary knowledge to allow them to prepare revenue forecasts and a range of budgets for different circumstances and be able to tailor them to meet organisational requirements. They will be able to understand the components parts of budgetary procedure to aid organisational planning and control.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of preparing forecasts and budgets. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 4: Preparing budgets.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

20

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Dem

onst

rate

an

under

stan

din

g o

f th

e im

pac

t of

inte

rnal

and

exte

rnal busi

nes

s fa

ctors

on b

udget

s

1.1

Exp

lain

the

stru

cture

of

the

org

anis

atio

n,

resp

onsi

bili

ty c

entr

es a

nd t

he

rela

tionsh

ips

bet

wee

n

the

dep

artm

ents

and funct

ions

1.2

Id

entify

inte

rnal

and e

xter

nal so

urc

es o

f in

form

atio

n o

n c

ost

s, p

rice

s, d

eman

d,

availa

bili

ty o

f re

sourc

es a

nd a

vaila

bili

ty a

nd c

ost

of finance

, to

in

clude:

gove

rnm

ent

stat

istics

tr

ade

asso

ciat

ions

finan

cial

pre

ss

quota

tions

price

lis

ts

1.3

D

escr

ibe

the

impac

t of th

e ex

tern

al e

nvi

ronm

ent

and a

ny

spec

ific

ext

ernal

cost

s on b

udget

s

1.4

D

escr

ibe

the

inte

rnal

char

ges

mad

e to

att

ribute

in

direc

t co

sts

to p

roduct

ion

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

21

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2

Under

stan

d w

hy

budget

s ar

e use

d

2.1

Exp

lain

the

beh

avi

oura

l asp

ects

of budget

ing

2.2

Ju

stify

the

use

s of budget

ary

contr

ol fo

r:

pla

nnin

g

co

-ord

inat

ing

au

thorisi

ng

co

st c

ontr

ol

2.3

Id

entify

the

corr

ect

budget

to p

repar

e ac

cord

ing t

o

the

org

anis

atio

nal

req

uirem

ents

:

in

com

e an

d e

xpen

diture

pro

duct

ion

m

ater

ial

la

bour

(em

plo

yees

and o

ther

res

ourc

es)

re

venue

ca

pital

fixe

d

flex

ible

ca

sh

2.4

Exp

lain

the

rela

tionsh

ip b

etw

een b

udget

ary

contr

ol,

pro

duct

lifec

ycle

s, a

nd fore

cast

s an

d p

lannin

g

2.5

Exp

lain

the

signific

ance

of

budget

var

iance

s

2.6

Rec

ognis

e th

e ef

fect

that

capac

ity,

pro

duct

ion a

nd

sale

s co

nst

rain

ts h

ave

on b

udget

s

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

22

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

3

Under

stan

d t

he

skill

s nee

ded

in b

udget

pre

par

ation

3.1

Exp

lain

the

princi

ple

s of

stan

dard

cost

ing

3.2

D

escr

ibe

the

purp

ose

of

reve

nue

and c

ost

fore

cast

s an

d h

ow

they

lin

k to

budget

s

3.3

Id

entify

when

to u

se t

he

follo

win

g t

echniq

ues

:

in

dex

ing

sa

mplin

g

m

ovi

ng a

vera

ges

lin

ear

regre

ssio

n

se

asonal

tre

nds

3.4

Rec

ognis

e ex

pen

ses

as d

iffe

rent

types

of

cost

s, t

o

incl

ude:

direc

t or

indirec

t (o

verh

ead)

fixe

d,

variab

le,

sem

i-va

riable

or

step

ped

3.5

Id

entify

the

sourc

es o

f re

leva

nt

dat

a u

sed in b

udget

pro

posa

ls

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

23

Unit 4: Drafting budgets

Unit reference number: D/600/4957

QCF level: 4

Credit value: 4

Guided learning hours: 35

Unit summary

This unit is about preparing forecasts and budgets. The learner will develop the necessary skills to allow them to prepare budgets, analyse variances and make recommendations for improving organisational performance. They will be able to guide managers in planning and control.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in preparing forecasts and budgets. In order for them to do this, this unit must be delivered and assessed alongside Unit 3: Principles of budgeting, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

24

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Prep

are

fore

cast

s an

d

budget

s 1.1

Id

entify

rel

evan

t dat

a for

fore

cast

ing inco

me

and

expen

diture

fro

m inte

rnal and e

xter

nal so

urc

es

1.2

Corr

ectly

code,

cla

ssify

and a

lloca

te c

ost

and

reve

nue

dat

a to

res

ponsi

bili

ty c

entr

es

1.3

Fo

reca

st futu

re inco

me

from

rel

evan

t in

tern

al a

nd

exte

rnal dat

a

1.4

Sch

edule

the

required

pro

duct

ion r

esourc

es

(mat

eria

ls,

labour

and p

roduct

ion faci

litie

s) t

o m

eet

fore

cast

s

1.5

Budget

in a

ccord

ance

with t

he

org

anis

atio

n’s

co

stin

g s

yste

ms

stat

ing a

ny

assu

mptions

mad

e

1.6

Pr

epare

acc

ura

te c

ash

-flo

w fore

cast

to faci

litat

e th

e ac

hie

vem

ent

of org

anis

atio

nal

obje

ctiv

es

1.7

Pr

epare

dra

ft b

udget

s fr

om

fore

cast

dat

a

1.8

Bre

ak

dow

n b

udget

s in

to t

ime

per

iods

acc

ord

ing t

o

org

anis

atio

nal

nee

ds

1.9

Pl

an a

nd a

gre

e dra

ft b

udget

s w

ith a

ll par

ties

in

volv

ed

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

25

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2

Under

stan

d t

he

impact

th

at c

han

ges

in t

he

econom

ic e

nvi

ronm

ent

will

hav

e on t

he

budget

2.1

Cal

cula

te t

he

effe

ct t

hat

variat

ions

in c

apac

ity

on

cost

s, p

roduct

ion a

nd s

ales

will

hav

e on b

udget

ed

cost

s an

d r

even

ues

2.2

Pr

epare

an a

ccura

tely

fle

xed b

udget

2.3

Anal

yse

critic

al fact

ors

affec

ting c

ost

s an

d r

even

ues

an

d d

raw

cle

ar c

oncl

usi

ons

2.4

Id

entify

and e

valu

ate

options

and s

olu

tions

to

incr

ease

pro

fita

bili

ty o

r re

duce

fin

anci

al lo

sses

or

exposu

re t

o r

isk

3

Use

budget

ary

contr

ol to

en

sure

org

anis

atio

nal

ta

rget

s are

met

3.1

Set

cle

ar

targ

ets

and p

erfo

rmance

indic

ators

to

enab

le t

he

budget

s to

be

monitore

d

3.2

Chec

k an

d r

econci

le b

udget

fig

ure

s on a

n o

ngoin

g

bas

is

3.3

Rev

iew

and r

evis

e th

e va

lidity

of budget

s in

the

light

of an

y si

gnific

ant

antici

pate

d c

han

ges

3.4

Id

entify

varian

ces

bet

wee

n b

udget

and a

ctual

in

com

e/ex

pen

diture

3.5

Anal

yse

the

vari

ance

s an

d e

xpla

in t

he

impac

t th

at

this

will

have

on t

he

org

anis

atio

n

3.6

In

form

manag

emen

t of an

y si

gnific

ant

issu

es

aris

ing f

rom

budget

ary

contr

ol

3.7

Pr

esen

t an

y re

com

men

dat

ions

with a

cle

ar

rational

e to

appro

priat

e peo

ple

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

26

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

27

Unit 5: Principles of managing financial performance

Unit reference number: H/600/4958

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about understanding the principles of managing financial performance. Learners will have the knowledge to be able to use a range of techniques to analyse information on expenditure. They will be able to make judgements to support decision making, planning and control by managers.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of managing financial performance. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 6: Measuring financial performance.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

28

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Dem

onst

rate

an a

ccura

te

under

stan

din

g o

f th

e in

tern

al a

nd e

xter

nal

fa

ctors

that

affe

ct

org

anis

atio

ns

1.1

Exp

lain

the

purp

ose

and s

truct

ure

of re

port

ing

syst

ems

within

the

org

anis

atio

n

1.2

D

escr

ibe

the

contr

ibution o

f an

org

anis

atio

n’s

fu

nct

ional

spec

ialis

ts t

o c

ost

red

uct

ion a

nd v

alue

enhan

cem

ent

1.3

Exp

lain

the

org

anis

ation's

ext

ernal

envi

ronm

ent

and t

he

spec

ific

ext

ernal

cost

s

1.4

Id

entify

cost

s co

rrec

tly

(mat

eria

ls,

labour

and

expen

ses)

and t

he

sourc

es o

f in

form

ation a

bout

thes

e co

sts,

incl

udin

g:

gove

rnm

ent

stat

istics

pro

fess

ional

or

trade

asso

ciat

ions

quota

tions

price

lis

ts

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

29

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2

Be

awar

e of th

e co

st

acco

unting t

echniq

ues

nee

ded

in m

onitoring

finan

cial

per

form

ance

2.1

Exp

lain

the

types

of

cost

cen

tres

, pro

fit

centr

es a

nd

inve

stm

ent

centr

es

2.2

D

escr

ibe

the

use

of

stan

dar

d u

nits

of in

puts

and

outp

uts

2.3

Rec

ognis

e th

e diffe

rence

s bet

wee

n s

tandard

, m

argin

al and a

bso

rption c

ost

ing in t

erm

s of co

st

reco

rdin

g,

cost

rep

ort

ing a

nd c

ost

beh

avio

ur

2.4

Exp

lain

the

use

of

varian

ce a

nal

ysis

in labour,

m

ater

ials

and o

verh

ead c

ost

ing

2.5

Acc

ura

tely

iden

tify

fix

ed,

variable

, se

mi-

variab

le

and s

tepped

cost

s an

d e

xpla

in t

hei

r use

in c

ost

re

cord

ing,

cost

rep

ort

ing a

nd c

ost

analy

sis

3

Under

stan

d t

he

tech

niq

ues

nec

essa

ry f

or

mea

suring

per

form

ance

and

man

agin

g c

ost

s

3.1

Id

entify

the

rele

vant

per

form

ance

and q

ualit

y m

easu

res

to u

se t

o m

onitor

finan

cial

per

form

ance

3.2

Exp

lain

the

princi

ple

s of dis

counte

d c

ash f

low

3.3

Id

entify

appro

priat

e per

form

ance

indic

ators

to u

se

for:

ef

fici

ency

ef

fect

iven

ess

pro

duct

ivity

co

st p

er u

nit

bal

ance

d s

core

card

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

30

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

ben

chm

ark

ing

co

ntr

ol ra

tios

(effic

iency

, ca

paci

ty a

nd a

ctiv

ity)

sc

enar

io p

lannin

g (

‘what

-if’ a

nal

ysis

)

3.4

Exp

lain

the

use

and p

urp

ose

of

tech

niq

ues

:

in

dex

ing

sa

mplin

g

tim

e se

ries

(eg

movi

ng a

vera

ges

, lin

ear

regre

ssio

n a

nd s

easo

nal

tre

nds)

3.5

Id

entify

the

corr

ect

ratios

use

d t

o m

onitor

finan

cial

per

form

ance

3.6

D

escr

ibe

a ra

nge

of co

st m

anag

emen

t te

chniq

ues

an

d r

ecognis

e w

hen

thes

e sh

ould

be

use

d

lif

e cy

cle

cost

ing

ta

rget

cost

ing (

incl

udin

g v

alu

e en

gin

eering)

ac

tivi

ty-b

ase

d c

ost

ing

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

31

Unit 6: Measuring financial performance

Unit reference number: K/600/4959

QCF level: 4

Credit value: 4

Guided learning hours: 35

Unit summary

This unit is about measuring financial performance. Learners will have the skills to collect and analyse information, monitor performance, and present reports to management.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in measuring financial performance. In order for them to do this, this unit must be delivered and assessed alongside Unit 5: Principles of managing financial performance, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

32

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Colla

te info

rmat

ion f

rom

va

rious

sourc

es a

nd

pre

par

e ro

utine

cost

re

port

s

1.1

O

bta

in inco

me

and e

xpen

diture

info

rmat

ion fro

m

diffe

rent

units

within

the

org

anis

atio

n a

nd

conso

lidat

e in

an a

ppro

priat

e fo

rm

1.2

Rec

onci

le inco

me

and e

xpen

diture

info

rmation

colle

cted

fro

m v

ario

us

dep

artm

ents

or

info

rmat

ion

syst

ems

within

the

org

anis

atio

n

1.3

Acc

ount

for

transa

ctio

ns

bet

wee

n t

he

separa

te u

nits

of th

e org

anis

atio

n,

in a

ccord

ance

with t

he

org

anis

atio

n’s

pro

cedure

s

1.4

Id

entify

oth

er v

alid

rel

evan

t in

form

atio

n f

rom

in

tern

al a

nd e

xter

nal

sourc

es

1.5

Pr

epare

routine

cost

rep

ort

s

1.6

Anal

yse

routine

cost

rep

ort

s an

d c

om

par

e w

ith

budget

and s

tandar

d c

ost

s to

acc

ura

tely

iden

tify

an

y diffe

rence

s an

d t

he

implic

atio

ns

of th

ese

1.7

Corr

ectly

iden

tify

var

iance

s an

d p

repare

rel

evan

t re

port

s fo

r m

anag

emen

t

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

33

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2

Mak

e su

gges

tions

for

impro

ving f

inan

cial

per

form

ance

by

monitoring a

nd a

nal

ysin

g

info

rmat

ion

2.1

Com

par

e re

sults

ove

r tim

e usi

ng m

ethods

that

al

low

for

chan

gin

g p

rice

lev

els

2.2

M

onitor

and a

nal

yse

curr

ent

and fore

cast

tre

nds

in

price

s an

d m

arke

t co

nditio

ns

on a

reg

ula

r bas

is

2.3

Com

par

e tr

ends

with p

revi

ous

dat

a an

d iden

tify

pote

ntial

im

plic

atio

ns

2.4

Consu

lt r

elev

ant

staf

f in

the

org

anis

atio

n a

bout

the

anal

ysis

of tr

ends

and v

arian

ces

2.5

Cal

cula

te r

atio

s, p

erfo

rman

ce indic

ators

and

mea

sure

s of

valu

e ad

ded

in a

ccord

ance

with t

he

org

anis

atio

n’s

pro

cedure

s

2.6

Pr

epare

rel

evan

t per

form

ance

indic

ators

2.7

In

terp

ret

the

resu

lts

of re

leva

nt

per

form

ance

in

dic

ato

rs,

iden

tify

pote

ntial im

pro

vem

ents

and

estim

ate

the

valu

e of su

ch im

pro

vem

ents

2.8

Id

entify

way

s to

red

uce

cost

s an

d e

nhan

ce v

alues

, co

nsu

ltin

g s

pec

ialis

ts a

s nec

essa

ry

2.9

Pr

epare

est

imat

es o

f ca

pital in

vest

men

t pro

ject

s usi

ng d

isco

unte

d c

ash flo

w t

echniq

ues

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

34

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

3

Prep

are

per

form

ance

re

port

s fo

r m

anag

emen

t 3.1

Pr

epare

rep

ort

s in

the

most

appro

priat

e fo

rmat

and

pre

sent

them

to m

anag

emen

t w

ithin

the

required

tim

esca

les

3.2

Pr

epare

exc

eption r

eport

s to

iden

tify

mat

ters

whic

h

require

furt

her

inve

stig

atio

n

3.3

M

ake

spec

ific

rec

om

men

dat

ions

to m

anagem

ent

in

a cl

ear

and a

ppro

priate

form

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

35

Unit 7: Principles of internal control

Unit reference number: D/600/4960

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about understanding principles of internal control. Learners will be able to identify the role of internal control within an organisation, and be able to recognise different approaches and make informed reasoned judgements to inform management on how to implement or improve systems within an organisation.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of internal control. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 8: Evaluating accounting systems.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

36

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Dem

onst

rate

an

under

stan

din

g o

f th

e ro

le

of acc

ounting w

ithin

the

org

anis

atio

n

1.1

D

escr

ibe

the

purp

ose

, st

ruct

ure

and o

rganis

atio

n o

f th

e acc

ounting f

unct

ion a

nd its

rel

atio

nsh

ips

with

oth

er f

unct

ions

within

the

org

anis

atio

n

1.2

Exp

lain

the

various

busi

nes

s purp

ose

s fo

r w

hic

h t

he

follo

win

g fin

anci

al info

rmat

ion is

required

:

in

com

e st

ate

men

t (p

rofit

and loss

acc

ount)

fo

reca

st o

f ca

sh f

low

(ca

sh f

low

sta

tem

ent)

st

atem

ent

of

finan

cial

posi

tion (

bal

ance

shee

t)

1.3

G

ive

an o

verv

iew

of th

e org

anis

atio

n’s

busi

nes

s an

d

its

critic

al e

xter

nal re

lationsh

ips

with s

take

hold

ers

1.4

Exp

lain

how

the

acc

ounting s

yste

ms

are

affe

cted

by

the

org

anis

atio

nal

str

uct

ure

, sy

stem

s, p

roce

dure

s,

and b

usi

nes

s tr

ansa

ctio

ns

1.5

Exp

lain

the

effe

ct o

n u

sers

of ch

anges

to

acco

unting s

yste

ms

cause

d b

y:

ex

tern

al re

gula

tions

org

anis

atio

nal

polic

ies

and p

roce

dure

s

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

37

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2

Under

stan

d t

he

import

ance

and u

se o

f in

tern

al c

ontr

ol sy

stem

s

2.1

Id

entify

the

exte

rnal

reg

ula

tions

that

aff

ect

acco

unting p

ract

ice

2.2

D

escr

ibe

the

cause

s of,

and c

om

mon t

ypes

of,

fr

aud a

nd t

he

impac

t of th

is o

n t

he

org

anis

atio

n

2.3

Exp

lain

met

hods

that

can

be

use

d t

o d

etec

t fr

aud

within

an a

ccounting s

yste

m

2.4

Exp

lain

the

types

of

contr

ols

that

can

be

put

in

pla

ce t

o e

nsu

re c

om

plia

nce

with s

tatu

tory

or

org

anis

atio

nal

req

uirem

ents

3

Be

able

to iden

tify

and u

se

the

appro

priat

e ac

counting s

yste

m t

o

mee

t sp

ecific

org

anis

atio

nal

re

quirem

ents

3.1

Id

entify

wea

knes

ses

in a

ccounting s

yste

ms

pote

ntial

for

erro

rs

ex

posu

re t

o p

oss

ible

fra

ud

3.2

Exp

lain

how

an a

ccounting s

yste

m c

an s

upport

in

tern

al c

ontr

ol

3.3

Id

entify

way

s of su

pport

ing indiv

iduals

who o

per

ate

acco

unting s

yste

ms

usi

ng:

tr

ainin

g

m

anual

s

w

ritt

en info

rmat

ion

hel

p m

enus

3.4

Exp

lain

the

valu

e an

d b

enef

it t

o a

spec

ific

org

anis

atio

n o

f diffe

rent

types

of ac

counting

syst

ems

and s

oft

ware

pac

kages

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

38

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

39

Unit 8: Evaluating accounting systems

Unit reference number: H/600/4961

QCF level: 4

Credit value: 4

Guided learning hours: 35

Unit summary

This unit is about the evaluation of the accounting systems within an organisation. Learners will be able to identify where improvements could be made and make valid suggestions about how to do this. They will be able to communicate this to management in a clear manner supported by a reasoned argument to support their recommendations, and identify the impact that changes would have on the system and its users.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in evaluating accounting systems. In order for them to do this successfully, this unit must be delivered and assessed alongside Unit 7: Principles of internal control, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

40

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Eva

luat

e th

e ac

counting

syst

em a

nd iden

tify

are

as

for

impro

vem

ent

1.1

Id

entify

an o

rgan

isat

ion’s

acc

ounting s

yste

m

requirem

ents

1.2

Rev

iew

rec

ord

kee

pin

g s

yste

ms

to c

onfirm

whet

her

th

ey m

eet

the

org

anis

atio

n’s

req

uirem

ents

for

finan

cial

info

rmation

1.3

Id

entify

wea

knes

ses

in,

and t

he

pote

ntial

for

impro

vem

ents

to,

the

acco

unting s

yste

m a

nd

consi

der

thei

r im

pact

on t

he

oper

atio

n o

f th

e org

anis

atio

n

1.4

Id

entify

pote

ntial

are

as o

f fr

aud a

risi

ng fro

m lack

of

contr

ol w

ithin

the

acco

unting s

yste

m a

nd g

rade

the

risk

1.5

Rev

iew

met

hods

of oper

atin

g for

cost

eff

ective

nes

s,

relia

bili

ty a

nd s

pee

d

2

Mak

e re

com

men

dat

ions

to

impro

ve t

he

acco

unting

syst

em

2.1

M

ake

reco

mm

endat

ions

for

chan

ges

to t

he

acco

unting s

yste

m in a

n e

asily

under

stood f

orm

at,

w

ith a

cle

ar

rational

e an

d a

n e

xpla

nat

ion o

f an

y as

sum

ptions

made

2.2

Id

entify

the

effe

cts

that

any

reco

mm

ended

chan

ges

w

ould

have

on t

he

use

rs o

f th

e sy

stem

2.3

Enab

le indiv

idual

s w

ho o

per

ate

acco

unting s

yste

ms

to u

nder

stand h

ow

to u

se t

he

syst

em t

o f

ulfil

thei

r re

sponsi

bili

ties

2.4

Id

entify

the

implic

atio

ns

of

reco

mm

ended

chan

ges

in

ter

ms

of

tim

e, fin

anci

al c

ost

s, b

enef

its,

and

oper

atin

g p

roce

dure

s

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

41

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

42

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

43

Unit 9: Principles of credit management

Unit reference number: M/600/4963

QCF level: 4

Credit value: 2

Guided learning hours: 15

Unit summary

This unit is about understanding the principles of credit management in an organisation. The learner will be able to give advice on the granting of credit and also the collection of monies owed. The learner will be able to advise on the management of debts and on methods which will minimise the risk to the organisation.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of credit management. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 10: Control of credit and debt.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

44

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Under

stan

d h

ow

le

gis

lation im

pac

ts u

pon

cred

it c

ontr

ol

1.1

Exp

lain

the

mai

n fea

ture

s of co

ntr

act

law

and

rem

edie

s fo

r bre

ach o

f co

ntr

act

in r

elat

ion t

o t

he

cred

it t

he

org

anis

atio

n o

ffer

s its

cust

om

ers

1.2

D

efin

e th

e te

rms

and c

onditio

ns

asso

ciate

d w

ith

contr

act

s re

lating t

o t

he

gra

nting o

f cr

edit

1.3

Exp

lain

the

import

ance

of

dat

a pro

tect

ion

legis

lation a

nd h

ow

it

applie

s to

cre

dit m

anag

emen

t

1.4

Exp

lain

leg

al a

nd a

dm

inis

trat

ive

pro

cedure

s fo

r th

e co

llect

ion o

f deb

ts

1.5

Exp

lain

the

effe

ct o

f ban

kruptc

y an

d inso

lven

cy o

n

org

anis

atio

ns

2

Under

stan

d h

ow

to

pre

par

e an

d u

se

info

rmat

ion fro

m a

var

iety

of

sourc

es t

o m

anage

the

org

anis

atio

n’s

gra

nting o

f cr

edit

2.1

Exp

lain

the

import

ance

of

liquid

ity

man

agem

ent

2.2

Id

entify

the

info

rmation r

equirem

ents

for

cred

it

contr

ol

2.3

Id

entify

sourc

es o

f cr

edit s

tatu

s an

d o

ther

rel

ated

in

form

atio

n incl

udin

g:

cr

edit r

atin

g a

gen

cies

su

pplie

r re

fere

nce

s

ban

k re

fere

nce

s

an

alys

is o

f th

e acc

ounts

co

lleag

ues

offic

ial public

atio

ns

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

45

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2.4

Exp

lain

met

hods

of

anal

ysin

g c

redit c

ontr

ol

info

rmat

ion incl

udin

g:

ag

e an

aly

sis

av

erag

e per

iods

of

cred

it g

iven

and r

ecei

ved

in

ciden

ce o

f bad a

nd d

oubtf

ul deb

ts.

2.5

Id

entify

a r

ange

of

met

hods

of

anal

ysin

g

info

rmat

ion o

n d

ebto

rs

3

Be

awar

e of a r

ange

of

tech

niq

ues

and m

ethods

of

cred

it c

ontr

ol th

at m

ay

be

use

d w

ithin

an

org

anis

atio

n

3.1

Exp

lain

the

reaso

ns

for

offer

ing d

isco

unts

for

pro

mpt

paym

ent

and iden

tify

the

effe

cts

of off

erin

g

such

a d

isco

unt

3.2

Id

entify

a r

ange

of

met

hods

for

the

colle

ctio

n a

nd

man

agem

ent

of deb

ts a

nd e

xpla

in t

he

appro

priat

enes

s of ea

ch m

ethod

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

46

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

47

Unit 10: Control of debt and credit

Unit reference number: T/600/4964

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about applying the principles of credit management in an organisation. The learner will be able to give advice on the granting of credit and setting credit limits. They will also be able to identify debt collection methods, and advise on the collection of monies owed, and the likelihood of payment being received.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in applying the principles of credit management. In order for them to do this, this unit must be delivered and assessed alongside Unit 9: Principles of credit management, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

48

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Gra

nt

cred

it t

o c

ust

om

ers

within

org

anis

atio

nal

guid

elin

es

1.1

Eva

luat

e th

e cu

rren

t cr

edit s

tatu

s of

cust

om

ers

and

pote

ntial

cust

om

ers

1.2

Agre

e cr

edit t

erm

s w

ith c

ust

om

ers

in a

ccord

ance

w

ith t

he

org

anis

atio

n's

polic

ies

1.3

O

pen

new

acc

ounts

for

those

cust

om

ers

with a

n

esta

blis

hed

cre

dit s

tatu

s

1.4

Agre

e ch

anges

to c

redit lev

els

or

cred

it t

erm

s w

ith

cust

om

ers

1.5

D

iscu

ss t

act

fully

the

reas

ons

for

refu

sing o

r ex

tendin

g c

redit w

ith c

ust

om

ers

2

Man

age

the

supply

of

cred

it

2.1

Reg

ula

rly

monitor

and a

nal

yse

info

rmation r

elating

to d

ebto

rs' ac

counts

2.2

Pr

om

ptly

send info

rmat

ion r

egar

din

g s

ignific

ant

outs

tandin

g a

ccounts

and p

ote

ntial

bad

deb

ts t

o

rele

vant

indiv

idual

s w

ithin

the

org

anis

atio

n

2.3

N

egotiate

with d

ebto

rs in a

court

eous

and

pro

fess

ional

man

ner

and a

ccura

tely

rec

ord

the

outc

om

e of neg

otiations

2.4

In

acc

ord

ance

with o

rgan

isational

pro

cedure

s,

sele

ct d

ebt

reco

very

met

hods

appro

priat

e to

in

div

idual

outs

tandin

g d

ebto

rs

2.5

M

ake

reco

mm

endat

ions

to w

rite

off

bad

deb

ts a

nd

mak

e pro

visi

ons

for

doubtf

ul deb

ts b

ased

upon a

re

alis

tic

anal

ysis

of

all kn

ow

n fact

ors

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

49

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

50

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

51

Unit 11: Principles of personal tax

Unit reference number: A/600/4965

QCF level: 4

Credit value: 2

Guided learning hours: 15

Unit summary

On completion of this unit the learner will be able to demonstrate knowledge of how income tax and capital gains tax is applied to income.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of personal taxation. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 12: Calculating Personal Tax.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

52

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Dem

onst

rate

an

under

stan

din

g o

f le

gis

lation a

nd p

roce

dure

s re

lating t

o p

erso

nal

tax

1.1

Exp

lain

the

mai

n c

urr

ent

legis

lation r

elat

ing t

o

per

sonal

tax

atio

n

1.2

D

etai

l th

e re

sponsi

bili

ties

that

indiv

idual

s hav

e fo

r dis

closu

re o

f in

com

e an

d p

aym

ent

of ta

x to

the

rele

vant

tax

auth

orities

1.3

Exp

lain

the

mai

n fea

ture

s of th

e se

lf-a

sses

smen

t sy

stem

of

taxa

tion

1.4

D

escr

ibe

the

duties

and r

esponsi

bili

ties

of

a ta

x pra

ctitio

ner

1.5

Id

entify

sourc

es o

f ta

xation info

rmat

ion for

indiv

idual

s

1.6

Exp

lain

the

tax

auth

ority

’s fili

ng a

nd p

aym

ent

pro

cess

in r

elat

ion t

o a

ll per

sonal in

com

e

2

Under

stan

d t

he

curr

ent

taxa

tion p

rinci

ple

s of

inco

me

from

em

plo

ymen

t

2.1

Exp

lain

the

mai

n leg

isla

tive

fea

ture

s re

lating t

o

inco

me

from

em

plo

ymen

t

2.2

D

escr

ibe

sourc

es o

f in

com

e fr

om

em

plo

ymen

t (i

ncl

udin

g b

enef

its

in k

ind)

and p

rovi

de

exam

ple

s of

whic

h a

re a

nd w

hic

h a

re n

ot

taxa

ble

2.3

D

escr

ibe

and p

rovi

de

exam

ple

s of ta

xation r

elie

f w

hic

h c

an b

e giv

en o

n inco

me

from

em

plo

ymen

t in

cludin

g d

educt

ible

(al

low

able

) ex

pen

ses,

pen

sions

relie

f an

d c

har

itab

le d

onat

ions

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

53

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

3

Under

stan

d t

he

curr

ent

taxa

tion p

rinci

ple

s of

savi

ngs,

non s

avi

ngs

and

div

iden

d inco

me

for

an

indiv

idual

3.1

Exp

lain

the

mai

n leg

isla

tive

fea

ture

s re

lating t

o

savi

ngs

inco

me,

incl

udin

g e

xem

pt

savi

ngs

inco

me

3.2

D

escr

ibe,

with e

xam

ple

s, s

avin

gs

inco

me

whic

h is

subje

ct t

o t

axat

ion a

nd t

hat

whic

h is

not

3.3

Id

entify

the

mai

n leg

isla

tive

fea

ture

s re

lating t

o

div

iden

d inco

me

from

UK r

egis

tere

d c

om

panie

s

4

Under

stan

d t

he

curr

ent

taxa

tion p

rinci

ple

s of

pro

per

ty inco

me

for

an

indiv

idual

4.1

Id

entify

the

mai

n leg

isla

tive

fea

ture

s re

lating t

o

pro

per

ty inco

me

incl

udin

g f

urn

ished

and

unfu

rnis

hed

ren

ted p

roper

ty,

rent-

a-ro

om

sch

eme,

holid

ay

lets

, buy-

to-l

et inve

stm

ents

4.2

D

escr

ibe

types

of re

lief w

hic

h a

re a

vaila

ble

on

pro

per

ty inco

me

incl

udin

g a

llow

able

exp

ense

s, w

ear

and t

ear

allo

wan

ce,

renew

als

allo

wan

ce,

loss

rel

ief,

an

d t

he

circ

um

stan

ces

in w

hic

h e

ach a

pply

5

Under

stan

d t

he

curr

ent

princi

ple

s of basi

c ca

pital

gai

ns

taxa

tion f

or

an

indiv

idual

5.1

Id

entify

the

mai

n fea

ture

s of th

e ca

pital

gai

ns

tax

syst

em

5.2

D

escr

ibe,

with e

xam

ple

s, c

har

gea

ble

and e

xem

pt

asse

ts

5.3

D

escr

ibe

how

the

com

puta

tion o

f a c

harg

eable

gai

n

or

allo

wab

le loss

is

mad

e

5.4

D

escr

ibe

the

pro

cess

for

relie

f of cu

rren

t ye

ar

allo

wab

le loss

es,

and for

loss

es u

nre

lieve

d in t

he

curr

ent

year

5.5

Id

entify

the

curr

ent

annual

exe

mption a

mount

and

des

crib

e th

e ef

fect

of

this

on a

n indiv

idual

’s c

apital

gai

ns

tax

liabili

ty

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

54

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

55

Unit 12: Calculating personal tax

Unit reference number: F/600/4966

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about the learner being able to calculate income tax liabilities of an individual. The learner will be able to calculate income from all sources, and apply relevant allowances, deductions and reliefs to prepare accurate income tax computations. The learner will also be able to calculate the individual liability for capital gains tax.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in calculating personal tax. In order for them to do this successfully, this unit must be delivered and assessed alongside Unit 11: Principles of personal tax, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

56

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Cal

cula

te inco

me

from

all

sourc

es a

ccura

tely

1.1

Pr

epare

acc

ura

te c

om

puta

tions

of em

olu

men

ts,

incl

udin

g b

enef

its

in k

ind

1.2

Li

st n

on-s

avi

ngs,

savi

ngs

and d

ivid

end inco

me,

and

chec

k fo

r co

mple

tenes

s

1.3

Pr

epare

sch

edule

s of

inco

me

from

lan

d a

nd

pro

per

ty,

and d

eter

min

e pro

fits

and loss

es

2

Cal

cula

te a

ccura

tely

the

tax

pay

able

on inco

me

2.1

Apply

allo

wan

ces

that

can

be

set

agai

nst

non-

savi

ngs

inco

me

2.2

Apply

ded

uct

ions

and r

elie

fs a

nd c

laim

loss

set

-off

s.

2.3

Acc

ount

for

per

sonal al

low

ance

s

2.4

Cal

cula

te inco

me

tax

pay

able

3

Acc

ount

for

capital

gai

ns

tax

corr

ectly

3.1

Id

entify

and v

alu

e ch

argea

ble

per

sonal ass

ets

and

share

s th

at

have

bee

n d

ispose

d o

f

3.2

Cal

cula

te c

har

gea

ble

gai

ns

and a

llow

able

loss

es

3.3

Apply

rel

iefs

and e

xem

ptions

corr

ectly

3.4

Cal

cula

te c

apital

gai

ns

tax

pay

able

4

Prep

are

acc

ura

te

com

puta

tions

and

com

ple

te t

he

rele

vant

par

ts o

f th

e se

lf-

asse

ssm

ent

tax

retu

rns

corr

ectly

4.1

M

ake

com

puta

tions

and s

ubm

issi

ons

in a

ccord

ance

w

ith c

urr

ent

tax

law

4.2

Rec

ord

rel

evan

t det

ails

of gai

ns,

and t

he

capital

gai

ns

tax

pay

able

, le

gib

ly a

nd a

ccura

tely

in t

he

tax

retu

rn

4.3

Apply

the

due

dat

es o

f paym

ent

of in

com

e ta

x by

indiv

idual

s, incl

udin

g p

aym

ents

on a

ccount

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

57

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

58

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

59

Unit 13: Principles of business tax

Unit reference number: J/600/4967

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about the learner understanding the information required to complete tax returns for sole traders, partnerships and incorporated businesses. The learner will know how to recognise trading profits, making adjustments and applying the current relevant legislation to enable them to accurately prepare the required computations to support the completion of the tax returns to the statutory authorities.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of business taxation. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 14: Calculating business tax.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

60

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Under

stan

d t

he

impact

of

legis

lation a

nd leg

isla

tive

ch

anges

1.1

Id

entify

the

rele

vant

tax

auth

ority

leg

isla

tion a

nd

guid

ance

1.2

Exp

lain

the

syst

em o

f pen

altie

s an

d inte

rest

as

it

applie

s to

inco

me

tax,

corp

ora

tion t

ax

and c

apital

gai

ns

tax

2

Under

stan

d t

ax

law

and its

im

plic

atio

ns

for

unin

corp

ora

ted b

usi

nes

ses

2.1

D

escr

ibe

the

mai

n r

egula

tions

rela

ting t

o d

isal

low

ed

expen

diture

2.2

Exp

lain

the

bas

is o

f as

sess

men

t fo

r unin

corp

ora

ted

busi

nes

ses

2.3

Exp

lain

the

availa

bili

ty a

nd t

ypes

of

capital

al

low

ance

s

2.4

Id

entify

alter

nat

ive

loss

rel

iefs

, dem

onst

rating h

ow

bes

t to

utilis

e th

at r

elie

f

2.5

Exp

lain

the

bas

ic a

lloca

tion o

f tr

adin

g p

rofits

bet

wee

n p

artn

ers

2.6

Exp

lain

the

self-a

sses

smen

t pro

cess

, in

cludin

g

pay

men

t of ta

x an

d fili

ng o

f re

turn

s fo

r unin

corp

ora

ted b

usi

nes

ses

2.7

Id

entify

due

dat

es o

f pay

men

ts,

incl

udin

g p

aym

ents

on a

ccount

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

61

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

3

Under

stan

d t

ax

law

and its

im

plic

atio

ns

for

inco

rpora

ted b

usi

nes

ses

3.1

Exp

lain

the

calc

ula

tion o

f co

rpora

tion t

ax

pay

able

by

diffe

rent

size

s of

com

pan

ies

incl

udin

g t

hose

with

asso

ciate

d c

om

pan

ies

3.2

Id

entify

alter

nat

ive

loss

rel

iefs

for

trad

ing loss

es,

dem

onst

rating h

ow

bes

t to

utilis

e th

at r

elie

f

3.3

Id

entify

the

amount

of

corp

ora

tion t

ax

paya

ble

and

the

due

date

s of pay

men

t, incl

udin

g inst

alm

ents

4

Under

stan

d h

ow

to t

reat

ca

pital ass

ets

4.1

Id

entify

capital

gai

ns

exem

ptions

and r

elie

fs o

n

asse

ts

4.2

Id

entify

corr

ectly

the

met

hods

in w

hic

h c

har

gea

ble

as

sets

can

be

dis

pose

d o

f

4.3

Id

entify

the

rate

of ta

x paya

ble

on g

ains

on c

apital

as

sets

dis

pose

d o

f by

indiv

idual

s an

d e

ntitlem

ent

to

rele

vant

relie

fs

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

62

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

63

Unit 14: Calculating business tax

Unit reference number: L/600/4968

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about the learner being able to prepare tax returns for sole traders, partnerships and incorporated businesses. The learner will be able to recognise trading profits, making adjustments and applying the current relevant legislation to enable them to accurately prepare the required computations to support the submission of the tax returns to the statutory authorities.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in calculating business tax. In order for them to do this sucessfully, this unit must be delivered and assessed alongside Unit 13: Principles of business tax, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

64

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Prep

are

the

rele

vant

pag

es o

f a

tax

retu

rn f

or

an u

nin

corp

ora

ted

busi

nes

s and a

ccura

tely

pro

duce

the

com

puta

tions

to s

upport

this

1.1

Adju

st t

radin

g p

rofits

and loss

es f

or

tax

purp

ose

s

1.2

Apply

the

bas

is o

f ass

essm

ent

for

unin

corp

ora

ted

busi

nes

ses,

incl

udin

g o

pen

ing a

nd c

losi

ng y

ears

and

ove

rlap

pro

fits

1.3

Cla

ssify

expen

diture

on c

apital as

sets

in a

ccord

ance

w

ith t

he

stat

uto

ry d

istinct

ion b

etw

een c

apital

and

reve

nue

expen

diture

1.4

Pr

epare

com

puta

tions

of

capital

allo

wan

ces

1.5

M

ake

adju

stm

ents

for

pri

vate

use

of ass

ets

by

ow

ner

s

1.6

D

ivid

e pro

fits

and loss

es o

f par

tner

ship

s am

ongst

par

tner

s

1.7

Pr

epare

com

puta

tions

to s

how

the

chan

ges

in

par

tner

ship

str

uct

ure

for

new

par

tner

s an

d

dep

arting p

artn

ers

1.8

Cal

cula

te t

he

nat

ional in

sura

nce

contr

ibutions

pay

able

by

self-e

mplo

yed p

erso

ns

1.9

Id

entify

and v

alu

e co

rrec

tly

any

char

gea

ble

ass

ets

that

have

bee

n d

ispose

d o

f, a

nd c

alc

ula

te t

he

char

gea

ble

gai

n/o

r allo

wab

le loss

and r

elev

ant

relie

fs a

s applic

able

under

curr

ent

tax

law

; an

d

calc

ula

te t

he

tax

liabili

ty

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

65

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1.1

0

Com

ple

te t

he

self-e

mplo

yed o

r par

tner

ship

su

pple

men

tary

pag

es o

f th

e ta

x re

turn

for

indiv

idual

s, a

nd s

ubm

it t

hem

within

sta

tuto

ry t

ime

limits

2

Corr

ectly

com

ple

te

corp

ora

tion t

ax r

eturn

s w

ith a

ll su

pport

ing

com

puta

tions

for

inco

rpora

ted b

usi

nes

ses

2.1

Adju

st t

radin

g p

rofits

and loss

es f

or

tax

purp

ose

s

2.2

Cla

ssify

expen

diture

on c

apital as

sets

in a

ccord

ance

w

ith t

he

stat

uto

ry d

istinct

ion b

etw

een c

apital

and

reve

nue

expen

diture

2.3

Pr

epare

com

puta

tions

of

capital

allo

wan

ces

2.4

Ente

r ad

just

ed t

radin

g p

rofits

and loss

es,

capital

allo

wan

ces,

inve

stm

ent

inco

me

and c

apital gai

ns

in

the

corp

ora

tion t

ax c

om

puta

tion

2.5

Cal

cula

te p

rofits

char

gea

ble

to c

orp

ora

tion t

ax,

and

oth

er r

elev

ant

figure

s, a

s it a

pplie

s to

com

pan

ies

with p

erio

ds

longer

or

short

er t

han

12 m

onth

s

2.6

Cal

cula

te c

orp

ora

tion t

ax p

ayab

le,

taki

ng a

ccount

of

mar

gin

al re

lief an

d a

ssoci

ated

com

pan

ies

2.7

Com

ple

te c

orp

ora

tion t

ax r

eturn

s co

rrec

tly,

and

subm

it t

hem

within

sta

tuto

ry t

ime

limits

2.8

Id

entify

and v

alu

e co

rrec

tly

any

char

gea

ble

ass

ets

that

have

bee

n d

ispose

d o

f, a

nd c

alc

ula

te t

he

char

gea

ble

gai

n/o

r allo

wab

le loss

and r

elev

ant

relie

fs a

s applic

able

under

curr

ent

tax

law

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

66

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

67

Unit 15: Principles of external audit

Unit reference number: R/600/4969

QCF level: 4

Credit value: 3

Guided learning hours: 25

Unit summary

This unit is about understanding principles of external audit. Learners will have the knowledge to be able to help plan and undertake an audit using a range of techniques appropriate to the element being validated, and understand legislative and professional requirements that auditors are duty bound to follow.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ knowledge and understanding of external auditing. In order for learners to be able to apply this knowledge and understanding effectively, this unit must be delivered and assessed alongside Unit 16: Auditing financial statements.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

N031199 –

Spec

ific

atio

n –

Edex

cel Le

vel 4 D

iplo

ma

in A

ccounting (

QCF)

–

Issu

e 1 –

Mar

ch 2

012 ©

Pea

rson E

duca

tion L

imited

2012

68

Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Dem

onst

rate

an

under

stan

din

g o

f th

e le

gal

and p

rofe

ssio

nal

stan

dar

ds

required

for

an

exte

rnal auditor

1.1

Exp

lain

the

legal an

d e

thic

al d

uties

of au

ditors

, in

cludin

g t

he

conte

nt

of re

port

s an

d t

he

def

initio

n

of pro

per

rec

ord

s

1.2

Exp

lain

the

liabili

ty o

f au

ditors

under

contr

act

and

neg

ligen

ce,

incl

udin

g lia

bili

ty t

o t

hird p

arties

1.3

Exp

lain

the

rele

vant

legis

lation a

nd a

uditin

g

stan

dar

ds

1.4

D

efin

e au

dit r

isk

and h

ow

it

applie

s to

ext

ernal

au

dit

1.5

D

efin

e m

ate

rial

ity

and e

xpla

in its

applic

atio

n in

auditin

g

2

Under

stan

d t

he

org

anis

atio

n’s

ext

ernal

au

ditin

g p

roce

dure

s

2.1

D

escr

ibe

the

org

anis

atio

n's

sys

tem

s an

d t

he

exte

rnal auditin

g p

roce

dure

s

2.2

D

escr

ibe

the

featu

res

of acc

ounting s

yste

ms

incl

udin

g p

urc

has

es,

sale

s, s

tock

, ex

pen

ses,

st

atem

ent

of

finan

cial

posi

tion (

bal

ance

shee

t)

item

s an

d p

ayro

ll

2.3

Id

entify

princi

ple

s of

contr

ol an

d w

hen

they

should

be

use

d,

incl

udin

g s

epar

atio

n o

f fu

nct

ions,

the

nee

d

for

auth

ori

sation,

reco

rdin

g c

ust

ody,

vouch

ing a

nd

veri

fica

tion

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ific

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Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

3

Under

stan

d a

ran

ge

of

auditin

g t

echniq

ues

and

know

whic

h t

o u

se w

hen

pla

nnin

g a

udits

on

diffe

rent

asp

ects

of th

e sy

stem

3.1

D

escr

ibe

the

diffe

rent

verifica

tion t

echniq

ues

that

ca

n b

e use

d a

nd e

xpla

in w

hat

type

of

item

could

be

audited

by

this

met

hod (

met

hods

to incl

ude

phys

ical

exa

min

atio

n,

re-p

erfo

rman

ce,

third-p

arty

co

nfirm

atio

n,

vouch

ing,

docu

men

tary

evi

den

ce a

nd

iden

tifica

tion o

f unusu

al ite

ms)

3.2

Id

entify

diffe

rent

sam

plin

g t

echniq

ues

use

d in

auditin

g a

nd d

escr

ibe

wher

e th

ese

could

be

use

d,

incl

udin

g c

onfiden

ce lev

els,

sel

ection t

echniq

ues

in

cludin

g r

andom

num

ber

s, inte

rval

sam

plin

g a

nd

stra

tified

sam

plin

g

3.3

Exp

lain

tes

ts o

f co

ntr

ol an

d s

ubst

antive

pro

cedure

s an

d t

hei

r lin

ks t

o t

he

audit o

bje

ctiv

e

3.4

Exp

lain

the

auditin

g t

echniq

ues

that

should

be

use

d

in a

n I

T e

nvi

ronm

ent

3.5

Exp

lain

how

man

agem

ent

feed

bac

k (t

hat

incl

udes

sy

stem

s w

eakn

esse

s, c

leri

cal/

acc

ounting m

ista

kes,

dis

agre

emen

t re

gar

din

g a

ccounting p

olic

ies

or

trea

tmen

t) c

an b

e use

d w

hen

pla

nnin

g a

n a

udit

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Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

4

Under

stan

d a

ran

ge

of

audit d

ocu

men

tation a

nd

reco

gnis

e th

e ap

pro

priat

enes

s

4.1

Exp

lain

the

featu

res

of re

cord

ing a

nd e

valu

atin

g

syst

ems,

incl

udin

g t

he

use

of

conve

ntional sy

mbols

, flow

char

ts,

inte

rnal

contr

ol ques

tionnaires

(IC

Qs)

an

d c

hec

klis

ts

4.2

Rec

ognis

e th

e im

port

ance

of

audit f

iles

and w

ork

ing

pap

ers

and t

hei

r ro

le in t

he

audit p

roce

ss

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

71

Unit 16: Auditing financial statements

Unit reference number: J/600/4970

QCF level: 4

Credit value: 4

Guided learning hours: 35

Unit summary

This unit is about being able to act as part of an audit team in planning and conducting an audit, and drafting working papers and a final audit report. Learners will be able to use a range of appropriate audit techniques to verify the accounting records and recognise deficiencies or errors.

Evidence requirements

Assessment must be carried out in a way that is consistent with the requirements outlined in Annexe D: Assessment strategy and the Assessment methodology below.

To pass the unit, learners must meet all of the assessment criteria.

Assessment methodology

This unit develops learners’ skills in planning and conducting an audit. In order for them to do this, this unit must be delivered and assessed alongside Unit 15: Principles of external audit, which will provide them with the necessary underpinning knowledge and understanding.

Recording of evidence

The type of evidence, portfolio reference and date should be entered against each assessment criterion in the table. Alternatively, centre documentation could be used to record this information. If evidence cannot be included in a portfolio, its location must be recorded in assessment documentation. All assessment evidence must be accessible for internal verifiers and Edexcel standards verifiers.

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Spec

ific

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Lear

nin

g ou

tcom

es a

nd a

sses

smen

t cr

iter

ia

Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

1

Be

able

to h

elp p

lan a

n

audit a

ccura

tely

id

entify

ing a

reas

to b

e ve

rified

and a

ny

asso

ciate

d r

isks

1.1

Id

entify

the

acco

unting s

yste

ms

under

rev

iew

and

accu

rate

ly r

ecord

them

on a

ppro

priat

e w

ork

ing

pap

ers

1.2

Corr

ectly

iden

tify

the

contr

ol fr

amew

ork

1.3

Acc

ura

tely

ass

ess

risk

s as

soci

ated

with t

he

acco

unting s

yste

m a

nd its

contr

ols

1.4

Corr

ectly

reco

rd s

ignific

ant

wea

knes

ses

in c

ontr

ol

1.5

Id

entify

acc

ount

bal

ance

s to

be

verified

and t

he

asso

ciate

d r

isks

1.6

Sel

ect

an a

ppro

priat

e sa

mple

for

test

ing

1.7

Sel

ect

or

dev

ise

appro

priat

e te

sts

in a

ccord

ance

w

ith t

he

auditin

g p

rinci

ple

s an

d a

gre

e th

em w

ith

the

audit s

uper

viso

r

1.8

Pr

ovi

de

clea

r in

form

ation

and r

ecom

men

dations

for

the

pro

pose

d a

udit p

lan,

and s

ubm

it it

to t

he

appro

priat

e per

son for

consi

der

atio

n

2

Under

take

an a

udit u

nder

su

per

visi

on

2.1

Conduct

tes

ts c

orr

ectly,

pro

per

ly r

ecord

tes

t re

sults

and d

raw

val

id c

oncl

usi

ons

from

them

as

spec

ifie

d

in t

he

audit p

lan

2.2

Est

ablis

h t

he

exis

tence

, co

mple

tenes

s, o

wner

ship

, va

luat

ion a

nd d

escr

iption o

f as

sets

and lia

bili

ties

an

d g

ather

appro

priate

evi

den

ce t

o s

upport

thes

e findin

gs

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ific

atio

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012 ©

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Learn

ing

ou

tco

mes

Ass

ess

men

t cr

iteri

a

Evid

en

ce

typ

e

Po

rtfo

lio

re

fere

nce

D

ate

2.3

Id

entify

all

mat

ters

of an

unusu

al n

ature

and r

efer

th

em p

rom

ptly

to t

he

audit s

uper

viso

r

2.4

Id

entify

and r

ecord

mat

eria

l an

d s

ignific

ant

erro

rs,

def

icie

nci

es o

r oth

er v

aria

tions

from

sta

ndar

d a

nd

report

them

to t

he

audit s

uper

viso

r

3

Pre

pare

dra

ft r

eport

s fo

r ap

pro

val.

3.1

Pre

pare

and s

ubm

it c

lear

and c

onci

se d

raft

rep

ort

s ill

ust

rating c

onst

ruct

ive

and p

ract

icab

le

reco

mm

endat

ions

in lin

e w

ith o

rgan

isat

ional

pro

cedure

s

3.2

Agre

e pre

limin

ary

concl

usi

ons

and

reco

mm

endat

ions

with t

he

audit s

uper

viso

r

3.3

Fo

llow

confiden

tial

ity

and s

ecurity

pro

cedure

s at

all

tim

es

Lear

ner

nam

e:__________________________________________

D

ate:

___________________________

Lear

ner

sig

nat

ure

:_______________________________________

D

ate:

___________________________

Ass

esso

r si

gnat

ure

:______________________________________

D

ate:

___________________________

Inte

rnal

ver

ifie

r si

gnatu

re:

________________________________

(i

f sa

mple

d)

Dat

e:___________________________

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

74

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

75

Further information

Our customer service numbers are:

BTEC and NVQ 0844 576 0026

GCSE 0844 576 0027

GCE 0844 576 0025

The Diploma 0844 576 0028

DiDA and other qualifications 0844 576 0031

Calls may be recorded for training purposes.

Useful publications

Related information and publications include:

Centre Handbook for Edexcel QCF NVQs and Competence-based Qualifications published annually

Functional Skills publications – specifications, tutor support materials and question papers

Regulatory Arrangements for the Qualification and Credit Framework (published by Ofqual, August 2008)

the current Edexcel publications catalogue and update catalogue.

Edexcel publications concerning the Quality Assurance System and the internal and standards verification of vocationally related programmes can be found on the Edexcel website.

NB: Some of our publications are priced. There is also a charge for postage and packing. Please check the cost when you order.

How to obtain National Occupational Standards

To obtain the National Occupational Standards for Accounting, please go to: www.ukstandards.org.uk.

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

76

Professional development and training

Edexcel supports UK and international customers with training related to NVQ and BTEC qualifications. This support is available through a choice of training options offered in our published training directory or through customised training at your centre.

The support we offer focuses on a range of issues including:

planning for the delivery of a new programme

planning for assessment and grading

developing effective assignments

building your team and teamwork skills

developing student-centred learning and teaching approaches

building Functional Skills into your programme

building effective and efficient quality assurance systems.

The national programme of training we offer can be viewed on our website (www.edexcel.com/training). You can request customised training through the website or by contacting one of our advisers in the Training from Edexcel team via Customer Services to discuss your training needs.

The training we provide:

is active

is designed to be supportive and thought provoking

builds on best practice

may be suitable for those seeking evidence for their continuing professional development.

N031199 –

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ific

atio

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Annex

e A

: Pro

gres

sion

pat

hw

ays

Sele

cted

Edex

cel qual

ific

atio

ns

avai

labl

e in

acc

ounti

ng

and f

inan

ce

Level

Gen

era

l q

uali

fica

tio

ns

Dip

lom

as

BTE

C v

oca

tio

nall

y-

rela

ted

q

uali

fica

tio

ns

BTEC

sp

eci

ali

st

qu

alifi

cati

on

/

pro

fess

ion

al

NV

Q/

com

pete

nce

5

Edex

cel BTEC L

evel

5

Hig

her

National

D

iplo

ma

in B

usi

nes

s (A

ccounting)

(QC

F)

4

Ed

exce

l Level

4

Dip

lom

a i

n

Acc

ou

nti

ng

(Q

CF)

3

Edex

cel Le

vel 3

Prin

cipal Le

arnin

g in

Busi

nes

s,

Adm

inis

tration a

nd

Finan

ce

Edex

cel BTEC L

evel

3

Cer

tifica

te/S

ubsi

dia

ry

Dip

lom

a in

Per

sonal

and B

usi

nes

s Fi

nan

ce

(QCF)

Edex

cel BTEC L

evel

3

Dip

lom

a/Ext

ended

D

iplo

ma

in B

usi

nes

s (A

ccounting)

(QC

F)

Edex

cel BTEC L

evel

3

Aw

ard in F

inan

cial

Ser

vice

s Reg

ula

tion,

Eth

ics

and T

rends

(QCF)

Edex

cel Le

vel 3

Dip

lom

a in

Acc

ounting

(QCF)

Edex

cel Le

vel 3 A

war

d

in P

rovi

din

g F

inan

cial

Advi

ce (

QC

F)

Edex

cel Le

vel 3 N

VQ

in

Pro

vidin

g F

inan

cial

Ser

vice

s (Q

CF)

N031199 –

Spec

ific

atio

n –

Edex

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vel 4 D

iplo

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in A

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QCF)

–

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Mar

ch 2

012 ©

Pea

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imited

2012

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Level

Gen

era

l q

uali

fica

tio

ns

Dip

lom

as

BTE

C v

oca

tio

nall

y-

rela

ted

q

uali

fica

tio

ns

BTEC

sp

eci

ali

st

qu

alifi

cati

on

/

pro

fess

ion

al

NV

Q/

com

pete

nce

2

Edex

cel Le

vel 2

Prin

cipal Le

arnin

g in

Busi

nes

s,

Adm

inis

tration a

nd

Finan

ce

Edex

cel Le

vel 2

Cer

tifica

te in

Acc

ounting (

QCF)

Edex

cel Le

vel 2 N

VQ

in

Pro

vidin

g F

inan

cial

Ser

vice

s

1

Edex

cel Le

vel 1

Prin

cipal Le

arnin

g in

Busi

nes

s,

Adm

inis

tration a

nd

Finan

ce

En

try

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Annexe B: Quality assurance

Key principles of quality assurance

A centre delivering Edexcel qualifications must be an Edexcel recognised centre and must have approval for qualifications that it is offering.

The centre agrees, as part of gaining recognition, to abide by specific terms and conditions relating to the effective delivery and quality assurance of assessment. The centre must abide by these conditions throughout the period of delivery.

Edexcel makes available to approved centres a range of materials and opportunities to exemplify the processes required for effective assessment and provide examples of effective standards. Approved centres must use the guidance on assessment to ensure that staff who are delivering Edexcel qualifications are applying consistent standards.

An approved centre must follow agreed protocols for: standardisation of assessors; planning, monitoring and recording of assessment processes; internal verification and recording of internal verification processes and dealing with special circumstances, appeals and malpractice.

Quality assurance processes

The approach to quality assured assessment is made through a partnership between a recognised centre and Edexcel. Edexcel is committed to ensuring that it follows best practice and employs appropriate technology to support quality assurance processes where practicable. The specific arrangements for working with centres will vary. Edexcel seeks to ensure that the quality-assurance processes it uses do not inflict undue bureaucratic processes on centres, and works to support them in providing robust quality-assurance processes.

The learning outcomes and assessment criteria in each unit within this specification set out the standard to be achieved by each learner in order to gain each qualification. Edexcel operates a quality-assurance process, designed to ensure that these standards are maintained by all assessors and verifiers.

For the purposes of quality assurance, all individual qualifications and units are considered as a whole. Centres offering these qualifications must be committed to ensuring the quality of the units and qualifications they offer, through effective standardisation of assessors and internal verification of assessor decisions. Centre quality assurance and assessment processes are monitored by Edexcel.

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The Edexcel quality-assurance processes will involve:

gaining centre recognition and qualification approval if a centre is not currently approved to offer Edexcel qualifications

annual visits to centres by Edexcel for quality review and development of overarching processes and quality standards. Quality review and development visits will be conducted by an Edexcel quality development reviewer

annual visits by occupationally competent and qualified Edexcel Standards Verifiers for sampling of internal verification and assessor decisions for the occupational sector

the provision of support, advice and guidance towards the achievement of National Occupational Standards.

Centres are required to declare their commitment to ensuring quality and appropriate opportunities for learners that lead to valid and accurate assessment outcomes. In addition, centres will commit to undertaking defined training and online standardisation activities.

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Annexe C: Centre certification and registration

Edexcel Standards Verifiers will provide support, advice and guidance to centres to achieve Direct Claims Status (DCS). Edexcel will maintain the integrity of Edexcel QCF NVQs through ensuring that the awarding of these qualifications is secure. Where there are quality issues identified in the delivery of programmes, Edexcel will exercise the right to:

direct centres to take action

limit or suspend certification

suspend registration.

The approach of Edexcel in such circumstances is to work with the centre to overcome the problems identified. If additional training is required, Edexcel will aim to secure the appropriate expertise to provide this.

What are the access arrangements and special considerations for the qualifications in this specification?

Centres are required to recruit learners to Edexcel qualifications with integrity.

Appropriate steps should be taken to assess each applicant’s potential and a professional judgement should be made about their ability to successfully complete the programme of study and achieve the qualification. This assessment will need to take account of the support available to the learner within the centre during their programme of study and any specific support that might be necessary to allow the learner to access the assessment for the qualification. Centres should consult Edexcel’s policy on learners with particular requirements.

Edexcel’s policy on access arrangements and special considerations for Edexcel qualifications aims to enhance access to the qualifications for learners with disabilities and other difficulties (as defined by the 1995 Disability Discrimination Act and the amendments to the Act) without compromising the assessment of skills, knowledge, understanding or competence. Please refer to Access Arrangements and Special Considerations for BTEC and Edexcel NVQ Qualifications for further details. www.edexcel.com.

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N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

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Annexe D: Assessment strategy

Introduction and scope

The purpose of this assessment strategy is to ensure that the Edexcel Level 4 Diploma in Accounting is subject to consistently rigorous and fair assessment. It is also designed to ensure that individuals who make judgments about competence are both qualified and competent to do so.

The assessment strategy addresses issues of:

teaching and assessment

workplace assessment and simulation

quality assurance and quality control

the competence and development of assessors and verifiers.

A: Teaching and assessment

Although individual QCF units define specific learning outcomes and assessment criteria, it is not a requirement that QCF units be taught and assessed individually.

Where two or more QCF units within a qualification contain some of the same, similar or complementary learning outcomes or assessment criteria, it is acceptable and potentially desirable that such units be taught and/or assessed together where practicable.

Therefore, centres are encouraged to consider the suitability, practicality and cost or time benefits of holistic teaching and/or assessment wherever possible.

Acceptable assessment methods for these qualifications include:

– products of work carried out in the workplace. This may include, for example, written documents, screen dumps, print-outs or electronic copies of accounting records, etc

– simulation of real work, using case studies and assignments

– oral presentation and questioning

– written tests, including multiple-choice papers

– observation by the assessor of workplace activities

– professional discussion between the assessor and the candidate

– witness testimony from managers and others at the workplace.

The centre will be responsible for designing, administering and marking all assessment activities.

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B: Workplace assessment and simulation

1 Assessment by candidate performance of tasks naturally undertaken in the workplace is the most reliable form of assessment and should be used wherever appropriate and practicable. Workplace assessment may take various forms, but the methods adopted must allow candidates to fully demonstrate their attainments against the assessment criteria.

2 In accounting, individuals are normally required to be qualified before they can be considered for the corresponding job. This is also because they are likely to be dealing with confidential and personal information. Simulation as a form of assessment is therefore acceptable in the interests of access to assessment and the integrity of data.

Simulation should replicate, as closely as possible, the performance expected in employment. Attention must be paid to: the realism of the tasks to be carried out; the realism of source and other documents; relevant legal requirements; the realism of the setting and any associated equipment; workplace and customer relationships; and the pace and intensity of work-related activity. This simulation may be computer-based where that closely resembles workplace practice.

Wherever simulation is used, it must conform to the following principles:

tasks must be based on the QCF units under assessment

performance must be assessed against the assessment criteria in the relevant QCF units.

C: Quality assurance and quality control

To promote consistency across qualifications, provision incorporates arrangements for external quality control. This will be achieved by the monitoring of centre assessment using Edexcel’s standards verification procedures. For further information about these, see Annexe B.

D: Competence of assessors and verifiers

Assessors and individuals responsible for verifying the quality of assessment must be competent to undertake the tasks they are required to perform. Accordingly, all must:

1 have relevant and credible occupational experience, including understanding of current and emerging practice, issues and legislative requirements in the occupational area concerned. Each practitioner will normally have operated at or above the level of the qualification that they are assessing or verifying

2 hold a relevant vocational/professional award or other recognised evidence of occupational competence at least one level above that of the qualification being assessed or verified

N031199 – Specification – Edexcel Level 4 Diploma in Accounting (QCF) – Issue 1 – March 2012 © Pearson Education Limited 2012

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or

hold a relevant vocational/professional award or other recognised evidence of occupational competence and provide sufficient evidence of experience and expertise at the level of the qualification being assessed or verified

3 have knowledge and experience of the relevant operational processes for the qualification concerned

4 have good interpersonal skills

5 hold a qualification or award relevant to the assessor, verifier or moderator role they are fulfilling that is acceptable to the regulatory authorities

6 have a commitment to their continuing professional development.

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