RECENT ASSIGNMENT

Assessment Details
Qualification Code/Title Diploma of Accounting
Assessment Type Assessment -2 ( Project) Time allowed
Due Date Location AHIC Term / Year
Unit of Competency
National Code/Title FNSACC506 Implement and maintain internal control procedures
Student Details
Student Name Student ID
Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. Signature: ____________________________
Date: _____/______/__________
Assessor Details
Assessor’s Name
RESULTS (Please Circle) SATISFACTORY NOT SATISFACTORY
Feedback to student:
....................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my appeal rights.
Signature: _______________________________
Date: ______/_______/___________
Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback.
Signature: ________________________________________
Date: ______/_______/___________

Instructions to the Candidates
? This assessment is to be completed according to the instructions given below in this document.
? Should you not answer the tasks correctly, you will be given feedback on the results and gaps in knowledge. You will be entitled to one (1) resubmit in showing your competence with this unit.
? If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
? Please refer to the College re-submission and re-sit policy for more information.
? If you have questions and other concerns that may affect your performance in the Assessment, please inform the assessor immediately.
? Please read the Tasks carefully then Complete all of them.
? To be deemed competent for this unit you must achieve a satisfactory result with all tasks in this project along with a satisfactory result for the another assessment.
? This is an Open book assessment which you will do in your own time but complete in the time designated by your assessor. Remember, that it must be your own work and if you use other sources then you must reference these appropriately.
? This is Individual Assessments. Once you have completed the assessment, please provide the Hard copy of the Assessments to your Trainer/ Assessor.
? Plagiarism is copying someone else’s work and submitting it as your own. Any Plagiarism will result in a mark of Zero..
Project 1
‘How to do it’ is a company which provides information and products for the DIY sector. It has grown significantly in the past few years and turnover has increased from around $3m to over $15m per annum.
The company was originally managed by the owners who, as it grew, hired staff from predominantly amongst people that they knew or were already known to other staff. Staff numbers had grown from less than 10 to over 60 during this period and many employees were married to, or in relationships with, others within the company.
Audits are conducted annually and the audit company is well regarded and has been doing the audits since the company began. The auditors are regarded as part of the team and attend the Christmas function each year.
At the most recent Christmas function one of the auditors, commented to the general manager, as an aside during a conversation, that he was surprised that given the increase in turnover that the yearly profits were not higher.
The general manager decided that during the Christmas break he would look at the auditor’s report and review the situation. The auditor’s report made no such statement but after examining the figures it was apparent that profits should have been higher.
When the office re-opened he requested the auditors to undertake an examination specifically to discover why it was so.
The auditors investigated and reported that the section manager responsible for major purchases had paid invoices to a company which he and his wife owned. The amount paid to the company was in excess of $500,000.
The section manager was responsible for signing off on work completed, or supplies received, and authorising payments. His wife was responsible for issuing the cheques. Both were signatories to the cheque account.
What breaches of internal control were there and what modifications to procedures would you implement? Prepare a 5-page report outlining your suggested course of action.