Internal Control and Accounting Systems

Internal Control and Accounting Systems
Learning Area Overview
Welcome to this learning area overview for Internal Control and Accounting Systems, prepared by AAT. In this overview we’ll explain what Internal Control and Accounting Systems is all about, and how it fits into the bigger picture of the AAT Accounting Qualification. We’ll explore the main topics you can expect to cover, and how the knowledge and skills you’ll pick up will be of practical use to you in the workplace. Finally, we’ll explain how this learning area relates to the others you’ve already studied, and those you’ll study in the future. What you’ll learn in Internal Control and Accounting Systems In Internal Control and Accounting Systems you’ll learn how to identify good accounting systems. You’ll learn how to review and evaluate record keeping and internal control systems, identify areas of weakness and judge how vulnerable an accounting system is to fraud. You’ll then be able to make justifiable and costed recommendations for improvement, and show that you can report formally on your findings. There are eight main topics in Internal Control and Accounting Systems. The first is record keeping systems, including the purpose of financial reports and how well the organisation’s current reports meet its needs. The next topic covers internal systems of control. You’ll examine how internal controls support the accounting system, the types of control that are in place and any that may be missing. The third topic looks at the various implications of fraud and how to prevent it. You’ll develop an awareness of the causes of fraud; common types of fraud; what methods to use to detect fraud; and potential areas for fraud within the organisation. The fourth topic is concerned with working methods and practices. For example, you’ll learn how to evaluate computer software, and the organisation’s operating methods in terms of reliability, speed and cost effectiveness. You’ll learn about training within an