Assessment - FNSACC606

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STUDENT ASSESSMENT
CONDUCT INTERNAL AUDIT - FNSACC606
Conduct internal audit - FNSACC606

Issue Date: 14/02/2018 Page 1 of 25
ABN: 57 169 281 501
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Melbourne VIC 3000
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Instructions
You are advised to commence work on your assessment from week 1 and all tasks must be
submitted by the due dates provided.
1. All assessments must be completed and delivered individually. Where an assessment

involves group discussions, you should consider the input of your group but submit an
individual assessment to your trainer.
2. Please read all instructions on completing each assessment. Instructions for completion
are provided at the beginning of each assessment.
3. All written answers must be typed in a word document using Arial font, 12 size and single
spacing if similar instructions are not provided in the assessment.
4. Your trainer will not be able to assist you in answering questions. However, your trainer
will address any issues concerning questions requiring further explanation.
5. You may refer to your student learning resources or any other relevant resources when
completing your assessment.
6. Assessments are due for submission as specified in the assessment schedule. Any
variations to this arrangement must be approved by your trainer prior to the due date for
submission.
7. You have access to computers which are equipped with Microsoft suite of products or
any other relevant software and printing facility.
8. Use assessment templates if provided, to complete relevant sections of the assessment.
You can also create your known templates for assessment evidence.
9. You must achieve a satisfactory result for all tasks to achieve competency in this unit.
10. All assessment answers should be submitted to the trainer in required format (soft or
hard copy) as per trainer instructions with completed assessment cover sheet (if
required).
Assessment Schedule
Task Due Date
Learning Activity Only Week 1
Task 1 Week 2
Task 2 Week 3
These materials were originally developed by Enhance Your Future Pty Ltd but may
now be altered from the original form. Enhance Your Future Pty Ltd does not accept
any liability for the Materials, the content and/or any reliance thereon.’

ABN: 57 169 281 501
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Task 1: Theory Assessment

Student Instructions
1. Type all the answers in a word document if required.

2. You can conduct internet research to answer these questions.
3. Provide explanation of 2-3 lines when answering ‘Describe’ questions.
4. Provide detailed workings for calculations questions.
5. Provide answers in table format wherever possible.
Question 1 – Question and Answers
Answer the following questions in writing.
1. Identify at least 5 of the key consideration that are to be made when reviewing and
evaluating the specifications of accounting information systems.
- The Data storage in sufficient details to accurately and fairly reflect company asset The Data
storage in sufficient details to accurately and fairly reflect company asset
- The implementation of Data collection could save shareholder’s money and time
- Data processing caused the improvement of the quality of the financial reports and facilitated the
process of the company’s transactions
- managers to form predictions about the outcomes of past, present, and future events to evaluate
financial performance in organization
- The automated data collection speed up the process to generate financial statements and
overcome human weaknesses in data processing
2. Identify at least 4 of the hardware and software needs of available products and
services.
- Desktop and Notebook Computers
- A Network Switch
- An Internet Modem
- Servers for companies that have gone “all-in” on the cloud
3. What information will you need to evaluate in consultation with the users to
determine the security requirements?
- people, information and assets that are critical to the ongoing operation of the entity
and the national interest and apply appropriate protections to these resources to
support their core business.
- identify a risk steward (or manager) who is responsible for each security risk or
category of security risk, including for shared risks.

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- communicate to the affected Commonwealth entity any identified risks that could
potentially impact on the business of another entity
- an alternative mitigation measure or control to a PSPF requirement, they must
document the decision and adjust the maturity level for the related PSPF
requirement.
4. Identify and briefly describe 4 possible uses for accounting data.
- Business Performance Management
- Create Company Budgets
- Making Business Decisions
- Informing Investment Decisions
5. What are 5 of the organisation’s procedures and policies that may be analysed to
evaluate the scope of strategies for risk management, internal control of
expenditure and compliance with statutory requirements?
- Screening and hiring employees
- Incident reporting
- Confidentiality, and privacy procedures
- Accident reporting procudures
- Ethics in workplace
6. Why is it important to monitor and record all enquiries regarding the use of the
systems?
- have identified that there are recordkeeping requirements you are not meeting
- have identified that there are system functionalities missing that you need
- you want to make your recordkeeping or business activities more efficient or
innovative
7. Identify at least 4 of the types of internal controls that may be reviewed to
determine implementation issues that could impact on organisational processes.
Detective Internal Controls
Detective internal controls are designed to find errors after they have occurred. They
serve as part of a checks-and-balances system and to determine how efficient policies
are. Examples include surprise cash counts, taking inventory, review and approval of
accounting work, internal audits, peer reviews, and enforcement of job descriptions and
expectations. Detective internal controls also help protect assets. For instance, if a
cashier does not know when her cash drawer will be counted, she may be more likely to
be honest.
Preventative Internal Controls

Preventative internal controls are put into place to keep errors and irregularities from
happening. While detective controls usually occur irregularly, preventative controls
usually occur on a regular basis. They range from locking the building before leaving to
entering a password before completing a transaction. Other preventative controls include

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testing for clerical accuracy, backing up computer data, drug testing of employees,
employee screening and training programs, segregation of duties, enforced vacations,
obtaining approval before processing a transaction and having physical control over
assets (locking money in a safe, for example).
Corrective Internal Controls

As the name suggests, corrective internal controls are put into place to correct any errors
that were found by the detective internal controls. When an error is made, employees
should follow whatever procedures have been put into place to correct the error, such as
reporting the problem to a supervisor. Training programs and progressive discipline for
errors are other examples of corrective internal controls.
8. Briefly discuss a method that could be used to analyse the strengths and
weaknesses of organisational processes before incorporating them into the
implementation plan.
SWOT analysis, also known as the SWOT matrix, is one of the techniques project
managers and organizations have implemented in their risk management practices.
SWOT stands for Strengths Weaknesses, Opportunities, and Threats.
It is a framework through which organizations and teams assess the pending internal
and external influences that can affect a project, product or institution positively or
negatively.
9. Identify the steps to follow to design an implementation plan that considers the
outcomes, resource use, costs, and the achievement and maintenance of
professional accounting standards.
Step 1 – Create a list of the outcomes required
Step 2 – Allocate a champion for each outcome
Step 3 – Determine what action needs to be taken for outcomes to be achieved
Questions to ask here include:
Who do we need to talk to?

What needs to be decided?
What resources are needed?
What milestones need to be set to know we’re on track?
When do we need to check on the progress of those milestones?
What potential set backs do we need to plan for?
Do any tasks need to be done before taking this action?
Step 4 – Establish roles, budgets and accountabilities
Step 5 – Set up a tracking sheet to monitor progress
Step 6 – Follow a project management methodology

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10. What do you need to consider when establishing the schedules for the audit?
- Identify the area to be audited

- Identify the purpose of the audit. For example, an objective might be to determine
whether program source code changes occur in a well-defined and controlled
environment.
- Identify the specific systems, function or unit of the organization to be included in the
review. For example, in the previous example (program changes), the scope
statement might limit the review to a single application, system or a limited period of
time.
11. There are a range of in-depth reviewing and checking techniques that should be
performed when monitoring sources of data input to identify influences and
variations in returns and costs. What are 4?
12. Monitoring and reviewing estimates of stock levels will ensure appropriate
stocking and ordering of materials and inventory items. What are 4 things that
might be included in the system of stock control used?
- Lead-times
- Inventory levels – they need to be accurate
- Inventory control software – or a lack thereof
- Match the inventory control system to the type of product
13. How can you evaluate the projected costs?
Developmental evaluation, on the other hand, is designed to provide real-time evaluative
information to guide an initiative continually changing in response to its environment. If
you have selected a developmental evaluation approach in recognition of the complexity
of the evaluation and its context, the planning and budgeting process should be in
alignment with the adaptive nature of this evaluation approach. Your budget should be
as responsive as you expect your evaluation to be
14. Identify at least 5 of the factors that may influence resource use in the future that
can be analysed to assess their impact on operations and objectives.

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- Technological change
- Legal & environmental change
- Economic environment
- Corporate objectives
- Finance
15. Identify at least 6 potential emerging external influences that the implementation
would need to be adjusted to take account of, and will require the establishment of
alternative targets.
- Social Influences
- Economical Influences
- Legal Influences
- Tecnological influences
- Global influences
- Market influences
16. What can you do to monitor and control the costs of the plans?
The Control Costs process monitors project progression and update costs while
managing changes to the project cost baseline. It helps to identify deviation to the project
planned costs and possible corrective action to minimize threats or capitalize on
opportunities
17. Why is it important to ensure the achievement of accounting standards?
When corporations and other organisations comply with accounting standards, their
general purpose financial statements should be more comparable than they would
otherwise be. This allows investors and other users of the financial statements to better
compare the organisations.
18. Discuss two methods that could be used to identify any adjustments required to
ensure the maintenance and achievement of accounting standards
19. What are the key features of risk management strategies?
Process
Integration
Culture
Infrastructure.
20. Briefly discuss the ethical considerations you will need to identify and apply in
relation to records and file management.
Businesses often keep records of their operations, including client information. Records
managers routinely encounter challenges that can present an ethical crisis, such as
improper disclosure, alteration, destruction or withholding of records. A proper records
management structure requires those in charge to practice professional ethics to ensure
trust by both clients and employees. Professional ethics may be seen as as a system of

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ethical guidelines and principles that develop over time and become codified and well
understood.
21. Compare and contrast recording and information management systems and
software applicable to financial recording (100-150 words)?
strength of the information governance model is that it enables those organisations that
did manage to establish electronic records management systems to extend the reach of
those systems to shared drives, e-mail accounts and SharePoint sites. This could be
done by using an analytics/indexing/clean-up/in-place records management tool to move
selected content from repositories such as shared drives into the electronic records
management system.
The problem with the electronic records management system approach being so
dependant on end-users changing their behaviour was not so much the resource
implications of the training necessary. It was the fact that there was no certainty that
the change management would succeed. A significant number of electronic records
management system projects were abandoned due to lack of user buy-in.
Software: quickbook, xero, ware accounting
22. Explain the key principles of internal control, including statutory requirements
(100-150 words)?
the organizational level, internal control objectives relate to the reliability of financial
reporting, timely feedback on the achievement of operational or strategic goals, and
compliance with laws and regulations. At the specific transaction level, internal control
refers to the actions taken to achieve a specific objective (e.g., how to ensure the
organization’s payments to third parties are for valid services rendered.) Internal control
procedures reduce process variation, leading to more predictable outcomes. Internal
control is a key element of the Foreign Corrupt Practices Act(FCPA) of 1977 and the
Sarbanes–Oxley Act of 2002, which required improvements in internal control in United
States public corporations. Internal controls within business entities are also referred to
as operational controls.
Internal control plays an important role in the prevention and detection of fraud. Under
the Sarbanes-Oxley Act, companies are required to perform a fraud risk assessment and
assess related controls. This typically involves identifying scenarios in which theft or loss
could occur and determining if existing control procedures effectively manage the risk to
an acceptable level. The risk that senior management might override important financial
controls to manipulate financial reporting is also a key area of focus in fraud risk
assessment. The AICPA, IIA, and ACFE also sponsored a guide published during 2008
that includes a framework for helping organizations manage their fraud risk.
23. Outline the key features of risk management strategies (100-150 words)?
- Working out the risks to your business could be as easy as thinking about what could
go wrong, and how and why it could happen

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- After identifying the risks to your business, it’s time to work out which ones are
urgent.
- To evaluate a risk, you should compare the level of risk for various events against
your risk criteria
24. Explain the key principles of internal control, including the associated statutory
requirements.
The main internal control principles include:
- Establish Responsibilities
- Maintain Records
- Insure Assets by Bonding Key Employees
- Segregate of Duties
- Mandatory Employee Rotation
- Split Related Party Responsibility
- Use Technological Controls
- Perform Regular Independent Reviews
The subject of internal controls is always expanding and this list of principles will
probably expand in the future as well. This is just a list of the most common and
influential ones. That being said, these principles are the basis by which management
uses to create and implement the internal controls it establishes. In other words, these
are the basic ideas of controls. They aren’t controls in and other themselves.
Management must take these ideas and apply them to their specific business
25. Identify the financial legislation that relates to taxable transactions and reporting
requirements, and briefly explain the key features of the financial legislation
identified.
Financial Transaction Reports Act 1988
In addition to the core requirements of the Corporations Act 2001, some entities have
additional reporting considerations arising under other mandates such as the ‘general
purpose financial statements’ requirement arising under the Tax Administration Act 1953,
constitution requirements, agreements or funding arrangements
Having prepared the key financial report, entities may need to consider other reporting
obligations including continuous disclosure, half-year reporting, concise financial reports
and relevant financial reporting.

ABN: 57 169 281 501
T: 02 8937 0991
Melbourne VIC 3000
T: 03 0 9077 0758
Task 2: Case Study and Practical Assessment

Student Instructions
1. Type all the answers in a word document if required.

2. You can conduct internet research to answer these questions.
3. Provide explanation of 2-3 lines when answering ‘Describe’ questions.
4. Provide detailed workings for calculations questions.
5. Provide answers in table format wherever possible.
Question 1 – Internal Audit
For this task, you are to complete the following steps to conduct an internal audit that
complies with organisational policy and procedures. Use the information provided in
appendix for ‘SamVille Enterprises Pty Ltd’ to conduct the analysis and create a
complete internal audit report. Please note the following additional information regarding
the organisation:
 Organisation uses MYOB accounting system for all its accounting processes. For more
information about the system being implemented by the organisation, see link
https://www.myob.com/au/accounting-software/essentials
 Accounting Standards implemented can be accessed from the link provided:
http://www.aasb.gov.au/Pronouncements/Current-standards.aspx
 Additional Organisational policies and procedures: http://startupjunkies.com/extras/acct-
policies.pdf
1. Perform each of the following steps to evaluate the information systems:

a) Evaluate the system specifications against the user’s requirements, any feedback
provided by the user and use professional accounting standards to identify the
capacities, redundancies, constraints, strengths and weaknesses of the available
information technology systems.
There is the fact that according to accounting standards, all the records must be filed
for five or more years. In this case, the records was easily deleted even though they
was stored for less than 5 year.
Besides, customer information is company property and was kept confidentially.
However, it also belongs to customers themselves since they are able to provide their
identification. Furthermore, the customer information must be highly secret and it can
not be bring out without their consent. Hence, the point of selling old customer profile
is illegal.
In total, the system is undergone many severe problems

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b) Conduct an assessment of the available products and services to identify any

hardware and software needs.
Here are a few for you to consider:
Who will be using the computer?

What will they be using it for?
How often will it be used?
Where will the computer be used?
Do you have enough space for a traditional desktop?
Could you consider other options like notebooks, tablets or all-in-ones?
Do you need a single function printer or multi-function printer with colour?
Business technology changes all the time. While it's not always good advice to get
the 'next best thing', the well-established trend to 'cloud computing' is something you
could consider when making your list.
Cloud computing is a general term for anything that involves delivering hosted
services over the internet such as infrastructure, platforms and software
c) In consultation with the users, evaluate the possible uses and handling of accounting
data to determine the security requirements.
Availability means that information can be accessed and modified by anyone
authorized to do so in an appropriate timeframe. Customers cannot access their
information whenever they need
Another essential tool for information security is a comprehensive backup plan for the
entire organization. Not only should the data on the corporate servers be backed up,
but individual computers used throughout the organization should also be backed up.
Since the old customer profile was deleted, we can easily restored those files
Once a user has been authenticated, the next step is to ensure that they can only
access the information resources that are appropriate
Good password policies must be put in place in order to ensure that passwords
cannot be compromised

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d) Analyse the organisational procedures and policies to evaluate the scope of

strategies to use for risk management, the internal control of expenditure and to
ensure compliance with all statutory requirements.
The current risk management procedures is not to eliminate risk, but rather to
manage the risks involved in all SamVille activities to maximise opportunities and
minimise adversity
However, there are some point need to be added which involve commit and mandate,
communicate and train, structure and accountabilities, and review and improve
This approach to risk management is linked to its corporate strategy. Understanding

company strategies and the related objectives of each management layer is a
prerequisite to accurately identifying and managing the associated risks.
It is important to recognise that change brings uncertainty. risk management process

inherently recognises this uncertainty. Every time a change is considered, the range

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of associated uncertainties, or risks, are identified, documented and managed

following a Board-approved and systematic process.
2. Complete the following steps to develop implementation plans:

a) Conduct an assessment and review of the internal control systems to determine if
there are any implementation issues that may impact on the organisational
processes.
There are many questions that need to take into account in assessing internal
control:
Are there ongoing review processes embedded within the organisation’s operations,
that monitor the effective application of the policies, processes and activities related
to internal control and risk management?
- Do these processes monitor the organisation’s ability to re-evaluate risks and adjust
controls effectively in response to changes in its objectives, business, external
environment and other changes in risk and control assessments?
- Is there appropriate communication to the board (and committees) on the
effectiveness of the ongoing monitoring processes for risk and internal control
matters, including reporting on any significant failings or weaknesses on a timely
basis?
- Do any internal control findings or weaknesses indicate a need for more extensive
monitoring of the internal control system?
- Is inconsistent risk or internal control information received from a number of
competing functions and, if so, are steps needed to ensure management gives a
single view of risk and internal control?
At the process level, the overall assessment of the internal control design is based on
the quality
of the controls identified within the process’s phases, rather than the quantity.
Moreover, the adequate
controls illustrated:
■ Relevance of each control in relation to the business and governance control
objectives associated with the process
■ Completeness of coverage of all associated control objectives

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■ Strength (consisting of its various critical elements)10
■ Timeliness of the controls in responding to negative events
■ Functioning of the controls

■ A cost/benefit relationship of the controls
b) Analyse and incorporate into the implementation plan the strengths and weaknesses
of the organisational processes, including the present and future capacities.
Strategic planning depends on a clear understanding of your organization’s resources
and capabilities, as well as critical ingredients that are lacking. The assessment of
organizational strengths and weaknesses and opportunities and threats must be
candid, open, thorough, and reflective. It should not be superficial, with the usual
statements about “good, committed staff” or “community good will…”. It may be that
strengths are also be weaknesses. For example, an organization may say one
strength is committed staff. However, though they are committed, there are not
enough of them with the requisite technical skills or training to be more competitive.
In other words commitment alone may not be enough to propel the organization
forward. In short, the SWOT analysis is a vital precondition for good strategic
planning in that it will point the way towards challenges and opportunities that must
be addressed by an organization if it hopes to be competitive, sustainable and
successful in the years ahead.
c) Design an implementation plan to cover the outcomes, resource use, costs, and
achievement and maintenance of professional accounting standards
There is a model of implementation plan which will cover factors of outcome,
resource, cost
There are some other point should be added to ensure the success of
implementation such as:
Implementation Schedule: You do not need to create a detailed, inflexible task
schedule in your implementation plan — we’ll talk later on about how to create a
schedule in the execution plan. At this stage, it’s appropriate to simply list the task

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order and predicted phase durations to roughly outline and allot for all the many
moving pieces.
Security and Privacy: Discuss the privacy features and considerations of the software
tools, processes, or information that you may use in implementation. Address security
issues and how to handle sensitive information (personal data, medical history,
financials, etc.).
Implementation Support/Resources List: Describe the various tools, activities, and
departments that you require to support successful implementation. These might
include hardware or software tools, facilities, and additional external human
resources or services.
Documentation: In this section, you must attach any other documentation that
supports your implementation plan. This could include your strategic plan,
confirmation of adequate materials and resources, and a history of past successful
projects.
Monitoring Performance: Define the metrics by which you will measure success. How
and when will you review your progress?
Beside to ensure and maintain the professional standard staff should be continuously
trained. The maintenance of professional competence requires a continuing
awareness and an understanding of relevant technical, professional and business
developments.
Continuing professional development enables a Member to develop and maintain
the capabilities to perform competently within the professional environment.
d) Establish implementation schedules that are realistic and that are feasible in the
context of the organisation’s short-term and long-term objectives.
In short term, organization can do something on bookkeeping and tax
In 1 week, you can allocate staff to review invoices and statement of last 6 week and
double check any uncertain payment or number
In next 2 week, starting to clarify the statement and sort the number in correct
categories
In week 4th, finishing the Bas and lodged
In long term, review the information system

In first 3 months, figure out with software is the best for company
In 4th months, arranging meeting to compose policies on data recording and storing.
Who will have access to customer profiles and when profile should be deleted.
In next 3 month, testing the data information system and reviewing
End of 1st year, apply the system but still under tight monitoring
During 2nd year, continuously evaluate and patching the system faults

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In 3rd year, officially using the system with widespread knowledge and policies among
staff and regularly update system
3. Perform each of the following steps to review resource use:

a) Identify any influences and variations in returns and costs by monitoring sources of
data input.
There are 2 type of influence which are human and system. Data input may have
mistake which result from human mistake and variation depend on error of the
system . in fact, any mistake interm of data will result in wrong number and wrong
cost which we cannot get correct return.
b) Ensure the appropriate stocking and ordering of materials and inventory items by
monitoring estimates of stock levels, and reviewing as required.
There is the fact that the company’s performance is often dependent on external
conditions such as seasonal demand, market trends, economic conditions and other
business trends that can cause unpredictable demand variability. Automated demand
forecasting can be used to take the guesswork out of how much inventory should be
carried for a given period. Automation dynamically calculates an inventory item’s
based demand according to historical sales data to ensure minimum and maximum
order quantities are optimal.
c) Evaluate the projected costs by comparing records of the resource use with the unit
cost estimates.
By comparing the resource use and unit cost estimated we will know the variation.
Managers will talk with department staff and supervisors to uncover the reason for
the budget variance. For example, if the materials expense variance was significant,
a manager would probably contact the purchasing agent in charge of supplies. It's
possible that there was a supply shortage and the purchasing agent was forced to
purchase a more expensive alternative. Alternatively, if the purchasing agent was
able to negotiate a contract with a vendor, he may have locked in a lower rate for
materials. Whatever the cause, the manager will evaluate the reason for the variance
and update the budget if he expects the variance to continue
d) Analyse the factors that will influence future resource use to assess the impact on the
operations and objectives.
The objectives that are set for the operations function of a business are affected by a
variety of internal and external influences
Human resources

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For a services business in particular, the quality and capacity of the workforce is a
key factor in affecting operational objectives. Targets for productivity, for example, will
be affected by the investment in training and the effectiveness of workforce planning
Legal & environmental change
Greater regulation and legislation of the environment places new challenges for
operations objectives.
Economic environment
Crucial for operations. Sudden or short-term changes in demand impact on capacity

utilisation, productivity etc. Changes in interest rates impact on the cost of financing
capital investment in operations
4. Complete the following steps to monitor the plans:

a) Adjust the implementation as required to take account of any emerging external
influences and the establishment of alternative targets.
Implementation must be monitored to be successful. Due to constantly changing
external and internal conditions managers must continuously review both
environments as new strengths, weaknesses, opportunities and threats may arise. If
new circumstances affect the company, managers must take corrective actions as
soon as possible.
Usually, tactics rather than strategies are changed to meet the new conditions, unless
firms are faced with such severe external changes as the 2007 credit crunch.
The key element in strategy monitoring is to get the relevant and timely information
on changing environment and the company’s performance and if necessary take
corrective actions.
b) Monitor and control the costs of the implementation plans by evaluating the net
benefits to the operations from the allocation of resources.
cost-benefit analysis involves a comprehensive economic evaluation of all the costs
and benefits associated with each proposed project option, including financial,
environmental and social. The objective is to determine the most economic use of
resources. Then we can know how much effectiveness that allocation of resource
achieved and find out other better solution if needed.
c) Ensure maintenance and achievement of accounting standards by adjusting the

internal control systems, as required.

ABN: 57 169 281 501
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The board of directors provides guidance to management. Because board members

have a working knowledge of the functions of the company, they help shield the
company from managers who try to override some control procedures for dishonest
purposes. Often, an efficient board that has access to the company’s internal auditors
can discover such fraud.
Auditors within the organization evaluate the effectiveness of the internal control
structure and determine whether company policies and procedures are being
followed. All employees are part of a communications network that enables an
internal control structure to work effectively.
The report should be a minimum of 1000 words and should be accurate and evidence
provided through references. You may choose any relevant business report template for
this task.
Business report
1/ information system
1.1 Evaluate the system
There is the fact that according to accounting standards, all the records must be filed for
five or more years. In this case, the records was easily deleted even though they was
stored for less than 5 year.
Besides, customer information is company property and was kept confidentially.
However, it also belongs to customers themselves since they are able to provide their
identification. Furthermore, the customer information must be highly secret and it can
not be bring out without their consent. Hence, the point of selling old customer profile is
illegal.
1.2 Conduct an assessment

There are many question that should be carried out:
Who will be using the computer?
What will they be using it for?
How often will it be used?
Where will the computer be used?
Do you have enough space for a traditional desktop?
Could you consider other options like notebooks, tablets or all-in-ones?

ABN: 57 169 281 501
T: 02 8937 0991
Melbourne VIC 3000
T: 03 0 9077 0758
Do you need a single function printer or multi-function printer with colour?

Business technology changes all the time. While it's not always good advice to get
the 'next best thing', the well-established trend to 'cloud computing' is something you
could consider when making your list.
1.3 handling of accounting data to determine the security requirements

essential tool for information security is a comprehensive backup plan for the entire
organization. Not only should the data on the corporate servers be backed up, but
individual computers used throughout the organization should also be backed up. Since
the old customer profile was deleted, we can easily restored those files
Once a user has been authenticated, the next step is to ensure that they can only
access the information resources that are appropriate
Good password policies must be put in place in order to ensure that passwords cannot
be compromised
1.4 Analyse the organisational procedures and policies
The current risk management procedures is not to eliminate risk, but rather to manage
the risks involved in all SamVille activities to maximise opportunities and minimise
adversity
However, there are some point need to be added which involve commit and mandate,
communicate and train, structure and accountabilities, and review and improve
2/ develop implementation plans
2.1 Conduct an assessment and review of the internal control systems
There are many questions that need to take into account in assessing internal control:
Are there ongoing review processes embedded within the organisation’s operations, that
monitor the effective application of the policies, processes and activities related to
internal control and risk management?
- Do these processes monitor the organisation’s ability to re-evaluate risks and adjust
controls effectively in response to changes in its objectives, business, external
environment and other changes in risk and control assessments?
- Is there appropriate communication to the board (and committees) on the effectiveness
of the ongoing monitoring processes for risk and internal control
matters, including reporting on any significant failings or weaknesses on a timely basis?
- Do any internal control findings or weaknesses indicate a need for more extensive
monitoring of the internal control system?

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Melbourne VIC 3000
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- Is inconsistent risk or internal control information received from a number of competing

functions and, if so, are steps needed to ensure management gives a
single view of risk and internal control?
2.2 Analyse and incorporate into the implementation plan the strengths and weaknesses of
the organisational processes
Strategic planning depends on a clear understanding of your organization’s resources
and capabilities, as well as critical ingredients that are lacking. The assessment of
organizational strengths and weaknesses and opportunities and threats must be
candid, open, thorough, and reflective. It should not be superficial, with the usual
statements about “good, committed staff” or “community good will…”. It may be that
strengths are also be weaknesses. For example, an organization may say one
strength is committed staff. However, though they are committed, there are not
enough of them with the requisite technical skills or training to be more competitive.
In other words commitment alone may not be enough to propel the organization
forward. In short, the SWOT analysis is a vital precondition for good strategic
planning in that it will point the way towards challenges and opportunities that must
be addressed by an organization if it hopes to be competitive, sustainable and
successful in the years ahead
2.3 Design an implementation plan
There are some other point should be added to ensure the success of
implementation such as:
Implementation Schedule: You do not need to create a detailed, inflexible task
schedule in your implementation plan — we’ll talk later on about how to create a
schedule in the execution plan. At this stage, it’s appropriate to simply list the task
order and predicted phase durations to roughly outline and allot for all the many
moving pieces.
Security and Privacy: Discuss the privacy features and considerations of the software
tools, processes, or information that you may use in implementation. Address security
issues and how to handle sensitive information (personal data, medical history,
financials, etc.).
Implementation Support/Resources List: Describe the various tools, activities, and
departments that you require to support successful implementation. These might
include hardware or software tools, facilities, and additional external human
resources or services.
Documentation: In this section, you must attach any other documentation that
supports your implementation plan. This could include your strategic plan,
confirmation of adequate materials and resources, and a history of past successful
projects.
2.4 Establish implementation schedules
In short term, organization can do something on bookkeeping and tax

ABN: 57 169 281 501
T: 02 8937 0991
Melbourne VIC 3000
T: 03 0 9077 0758
In 1 week, you can allocate staff to review invoices and statement of last 6 week and
double check any uncertain payment or number
In next 2 week, starting to clarify the statement and sort the number in correct
categories
In week 4th, finishing the Bas and lodged
In long term, review the information system

In first 3 months, figure out with software is the best for company
In 4th months, arranging meeting to compose policies on data recording and storing.
Who will have access to customer profiles and when profile should be deleted.
In next 3 month, testing the data information system and reviewing
End of 1st year, apply the system but still under tight monitoring
During 2nd year, continuously evaluate and patching the system faults
In 3rd year, officially using the system with widespread knowledge and policies among
staff and regularly update system
3/ review resource use
3.1 Identify any influences and variations
There are 2 type of influence which are human and system. Data input may have
mistake which result from human mistake and variation depend on error of the system .
in fact, any mistake interm of data will result in wrong number and wrong cost which we
cannot get correct return
3.2 stocking and ordering
There is the fact that the company’s performance is often dependent on external
conditions such as seasonal demand, market trends, economic conditions and other
business trends that can cause unpredictable demand variability. Automated demand
forecasting can be used to take the guesswork out of how much inventory should be
carried for a given period. Automation dynamically calculates an inventory item’s based
demand according to historical sales data to ensure minimum and maximum order
quantities are optimal.
3.3 Analyse the factors that will influence future resource use
Human resources
For a services business in particular, the quality and capacity of the workforce is a key
factor in affecting operational objectives. Targets for productivity, for example, will be
affected by the investment in training and the effectiveness of workforce planning
Legal & environmental change

ABN: 57 169 281 501
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Melbourne VIC 3000
T: 03 0 9077 0758
Greater regulation and legislation of the environment places new challenges for
operations objectives.
Economic environment
Crucial for operations. Sudden or short-term changes in demand impact on capacity

utilisation, productivity etc. Changes in interest rates impact on the cost of financing
capital investment in operations
4/ monitoring the plans

4.1 Adjust the implementation
Implementation must be monitored to be successful. Due to constantly changing
external and internal conditions managers must continuously review both environments
as new strengths, weaknesses, opportunities and threats may arise. If new
circumstances affect the company, managers must take corrective actions as soon as
possible.
Usually, tactics rather than strategies are changed to meet the new conditions, unless
firms are faced with such severe external changes as the 2007 credit crunch.
The key element in strategy monitoring is to get the relevant and timely information on
changing environment and the company’s performance and if necessary take corrective
actions.
4.2 Monitor and control the costs of the implementation plans
cost-benefit analysis involves a comprehensive economic evaluation of all the costs and
benefits associated with each proposed project option, including financial, environmental
and social. The objective is to determine the most economic use of resources. Then we
can know how much effectiveness that allocation of resource achieved and find out
other better solution if needed
4.3 Ensuring maintenance and achievement of accounting standards
The board of directors provides guidance to management. Because board members
have a working knowledge of the functions of the company, they help shield the
company from managers who try to override some control procedures for dishonest
purposes. Often, an efficient board that has access to the company’s internal auditors
can discover such fraud.
Auditors within the organization evaluate the effectiveness of the internal control
structure and determine whether company policies and procedures are being followed.
All employees are part of a communications network that enables an internal control
structure to work effectively.

ABN: 57 169 281 501
T: 02 8937 0991
Melbourne VIC 3000
T: 03 0 9077 0758

ABN: 57 169 281 501
T: 02 8937 0991
Melbourne VIC 3000
T: 03 0 9077 0758
Appendix
Case Study Scenario – Sam Ville Case Study Scenario – Policies and
Entreprises Pty Ltd Procedures
Case Study Case Study

Scenario – Sam Ville Entreprises Pty Ltd.docx Scenario – Policies and Procedures.docx

ABN: 57 169 281 501
T: 02 8937 0991
Melbourne VIC 3000
T: 03 0 9077 0758
References / recommended resources

Conduct internal audit - FNSACC606, Enhance Your Future.


Assessment - FNSACC606

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CONDUCT INTERNAL AUDIT - FNSACC606

Conduct internal audit - FNSACC606

1. All assessments must be completed and delivered individually. Where an assessment

Conduct internal audit - FNSACC606

Task 1: Theory Assessment

1. Type all the answers in a word document if required.

Question 1 – Question and Answers

Answer the following questions in writing.

Conduct internal audit - FNSACC606

Preventative Internal Controls

Conduct internal audit - FNSACC606

Corrective Internal Controls

Who do we need to talk to?

Conduct internal audit - FNSACC606

- Identify the area to be audited

Conduct internal audit - FNSACC606

19. What are the key features of risk management strategies?

Conduct internal audit - FNSACC606

Conduct internal audit - FNSACC606

Conduct internal audit - FNSACC606

Task 2: Case Study and Practical Assessment

1. Type all the answers in a word document if required.

Question 1 – Internal Audit

1. Perform each of the following steps to evaluate the information systems:

Conduct internal audit - FNSACC606

b) Conduct an assessment of the available products and services to identify any

Who will be using the computer?

Conduct internal audit - FNSACC606

d) Analyse the organisational procedures and policies to evaluate the scope of

This approach to risk management is linked to its corporate strategy. Understanding

It is important to recognise that change brings uncertainty. risk management process

Conduct internal audit - FNSACC606

of associated uncertainties, or risks, are identified, documented and managed

2. Complete the following steps to develop implementation plans:

Conduct internal audit - FNSACC606

■ Strength (consisting of its various critical elements)10

■ Timeliness of the controls in responding to negative events

■ Functioning of the controls

Conduct internal audit - FNSACC606

In long term, review the information system

Conduct internal audit - FNSACC606

3. Perform each of the following steps to review resource use:

Conduct internal audit - FNSACC606

Crucial for operations. Sudden or short-term changes in demand impact on capacity

4. Complete the following steps to monitor the plans:

c) Ensure maintenance and achievement of accounting standards by adjusting the

Conduct internal audit - FNSACC606

The board of directors provides guidance to management. Because board members

1.2 Conduct an assessment

Conduct internal audit - FNSACC606

Do you need a single function printer or multi-function printer with colour?

1.3 handling of accounting data to determine the security requirements

Conduct internal audit - FNSACC606

- Is inconsistent risk or internal control information received from a number of competing

Conduct internal audit - FNSACC606

In long term, review the information system

Conduct internal audit - FNSACC606

Crucial for operations. Sudden or short-term changes in demand impact on capacity

4/ monitoring the plans

Conduct internal audit - FNSACC606

Conduct internal audit - FNSACC606

Case Study Case Study

Conduct internal audit - FNSACC606