AAT Level 4 Diploma in Professional Accounting - Oman

Applied Management Accounting Course Outline

Guided learning hours (GLH): 120

Module 1: Understand and Implement the Organisational Planning Process

• Budgetary Process
  • Purposes of a Budget
  • Budget Cycle
  • Types of Budget
  • Sources of Data for Budgeting
  • Principal Budget Factor
• Budgetary Responsibilities and Accountabilities
  • Role of the Budget Committee
  • Duties and Responsibilities of the Budget Accountant
  • Budgetary Accountabilities of Senior Managers in Organisations
  • Participatory Alternatives
  • Appropriate Managers to Provide Information Required to Prepare Budgets
  • Identify Appropriate Responsibility Centres and Recovery Methods
  • Classify and Allocate Direct Costs to Appropriate Responsibility Centres
  • Apply the Principle of Responsibility Accounting
  • Apply Responsibility Accounting to Controllable and Uncontrollable Costs
• Types of Budgets and Recommendations for their Use
  • Features of the Following Budget Types
  • Comparative Advantages of Each Method
  • Circumstances in Which Each Method Should be Recommended
  • Prepare Operating Budgets Incorporating the Following Types of Cost
  • Prepare Production Budgets Incorporating the Following Schedules
  • Prepare Cash Flow Forecasts/Budgets Allowing for
• Budgeting Where Resource Constraints Exist
  • Identify Budget Limiting Factors
  • Calculate the Maximum Level of Production Where a Constraint Exists
• Impact of Internal and External Factors on Forecasts
  • Stages and Features of the Product Life Cycle and their Impact on Income Forecasts
  • Market Trends and Competitive Pressures
  • Expected Impact of Promotional Activity
  • External Events Affecting the Reliability of Cost Forecasts
  • Advise on the Reliability of Forecasts
• Uncertainty in the Budget Setting Process
  • Methods of Dealing with the Uncertainty Inherent in Budgeting
• Budget Revision to Reflect Changing Circumstances
  • Key Planning Assumptions Used in the Budget
  • Potential Threats to Budget Achievement
  • When a Budget Revision is Appropriate
  • Impact of Changes to Planning Assumptions and Forecasts
  • Recalculate Budgets Accordingly

Module 2: Use Internal Processes to Enhance Operational Control

• Budgetary Control
  • Purpose of Budget Flexing as Part of the Control Process
  • Limitations of Budget Flexing
  • Concept of Feedback and Feedforward Control
  • Flex Budgets Based on Original Assumptions of Revenue and Cost
  • Provide Potential Reasons for Variances Either Calculated or Given
• Standard Costing
  • Different Types of Standards
  • Purpose of Standard Cost Cards
  • Why Variances Occur
  • Courses of Action to be Taken to Address Divergences from Standard
  • Interaction of Variances
  • Impact of Standards on Behaviour and Variance Level
  • How the Use of Standard Costing can Complement Budgetary Control
  • Value of Items to be Included in Standard Cost Cards
  • Variances for Revenue and Costs
  • Potential Reasons for Variances Either Calculated or Given
  • Incorporate Standard Costs into Budgetary Control Calculations
• Activity Based Costing
  • Where Activity Based Costing Would be Most Appropriate
  • Benefits of Activity Based Costing Over Traditional Absorption Costing
  • Issues Surrounding the Introduction of Activity Based Costing
  • Implications of Activity Based Costing on Prices and Profitability
  • Calculate Product Costs Using Activity Based Costing
  • Compare Costs under Activity Based vs Absorption Costing
• Target Costing
  • Principles Underpinning Target Costing
  • Concept of Value Analysis
  • Value Engineering Process
  • Actions to Take to Reduce Cost Gaps
  • Calculate Target Costs and Any Cost Gap
• Life Cycle Costing
  • Principles Underpinning Life Cycle Costing
  • How Life Cycle Costing Contributes to Operational Control
  • Economies of Scale, Mechanisation and Learning Effect in Life Cycle Costs
  • Identify the Components of the Life Cycle Cost of a Product
  • Calculate Discounted and Non-Discounted Life Cycle Costs
  • Interpret the Results of Calculations of Life Cycle Costs
• Technology and its Impact on Operational Control
  • Technologies that are Changing the Way Business Collects and Uses Data
  • How these Technologies can Provide Benefit to Operational Control Processes
  • Challenges Faced by Business in Adopting these Technologies

Module 3: Use Techniques to Aid Short-Term and Long-Term Decision Making

• Comparison of Short- and Long-Term Decisions
  • Differences Between Short-Term and Long-Term Decision Making
• Relevant Costing
  • How to Identify Relevant Costs
  • Concept of Opportunity Costs
  • Factors to be Considered When a Business Makes Decisions
  • Calculate Relevant Costs and Revenues
• Key Factor Analysis
  • Concept of Scarce Resources
  • Concept of Contribution
  • When Contribution Should be Used as Part of the Decision-Making Criteria
  • Calculate the Contribution per Unit of Scarce Resources
  • Optimum Production Plan in Situations Where there is One Scarce Resource
  • Total Profit or Total Contribution Based on the Optimum Production Plan
• Linear Programming
  • Assumptions Behind Linear Programming
  • Optimum Production Plan in Situations Where there are Multiple Scarce Resources
  • Optimum Production Plan Using Graphical Approach and Simultaneous Equations
• Discount Cash Flows
  • Concept of the Time Value of Money
  • Benefits of Discounted Cash Flows over Non-Discounted Cash Flows
  • Calculate Discounted Cash Flows
• Appraisal Methods for Long-Term Decisions
• Long-Term Investment Appraisal Techniques
• Strengths and Weaknesses of Each Method
• Net Present Values
• Use the IRR Formula
• ARR of Projects
• Payback Period of Projects
• Compare NPV IRR ARR and Payback Period to Support Decision Making

Module 4: Analyse and Report on Business Performance

• Financial Performance Indicators
  • What the Performance Indicator Means
  • Impact on Performance Indicators
  • How Some Performance Indicators Interrelate with Each Other
  • How Proposed Actions may Affect the Indicator
  • Actions that Could be Taken to Improve the Indicator
  • Calculate Key Financial Performance Indicators
  • Interpret Financial Performance Ratios to Evaluate Organisational Performance
• Non-Financial Performance Indicators
  • Costs of Quality
  • How the Behaviour of Managers Aiming to Achieve a Target can be Affected
  • Non-Financial Performance Indicators Covering
  • Measures that Could be Taken to Improve Performance
  • Balanced Scorecards
  • Calculate Non-Financial Performance Indicators
  • Interpret Non-Financial Performance Ratios to Evaluate Organisational Performance
  • Evaluate Results from a Balanced Scorecard
• Divisional Performance
  • Differences Between Cost, Profi,t and Investment Centres
  • Issues of Using Return on Investment and Residual Income as Performance Measures
  • Options Available to Organisations When Setting a Transfer Price and the Potential Issues that may Arise
  • Calculate Return on Investment and Residual Income
• Calculate Forecasts
  • Elements of a Time Series
  • Simple Regression Equation
  • Concept of Expected Values
  • Calculate Index Numbers
  • Use Moving Averages to Identify Seasonal Variations and Trends
  • Use the Simple Regression Equation to Calculate Total Cost
  • Calculate Forecasts of Future Performance Based on Historical Data
  • Interpret Statistical Data Calculated to Evaluate Organisational Performance
  • Make Recommendations Based on Results of Sensitivity Analysis

Internal Accounting Systems and Controls Course Outline

Guided learning hours (GLH): 60

Module 1: Understand the Role and Responsibilities of the Accounting Function within an Organisation

• Accounting Function
  • Importance of Ethics and Sustainability within the Accounting Function
  • Importance of Accuracy and Cost-Effectiveness within the Accounting System
  • Why Different Types and Sizes of Organisation or Departments
  • Different Accounting Team Staffing Structures
• Financial Information Used by Stakeholders
  • Different Stakeholders of an Organisation
  • Purpose of Financial Information Produced for Internal Use and External Use
  • How Financial Information is Used by Stakeholders
  • Financial Information must Comply with Legislation and Regulation
  • Importance of Ethical Information and Sustainability Practices to Stakeholders
  • Stakeholders use the Following Types of Financial Reports
• Changes to Management Information
  • How Organisational Requirements will Inform the Management Information System
  • How Management Information Systems should Enable the Calculation of Performance Indicators
  • Why Changes may be Required to Existing Systems to Meet Revised Organisation Requirements

Module 2: Evaluate Internal Control Systems

• Internal Controls
  • Purpose of Internal Controls
  • Types of Internal Controls Used in Different Parts of the Accounting Function
  • How Different Types of Internal Controls Suit Different Types of Organisations
  • How a Strong System of Internal Controls can Minimise the Risk of Loss
  • How a Strong System of Internal Controls can Ensure Ethical Standards
• Prevent and Detect Fraud and Systemic Weaknesses
  • Common Types of Fraud within a Business
  • Systemic Weaknesses and their Causes
  • Implications for an Organisation if Fraud Occurs
  • Role of Internal Controls in Preventing and Detecting Fraud and Errors
  • Identify the Circumstances when Fraud may Occur
  • Evaluate the Impact of Fraud on an Organisation
  • Assess How Internal Controls can be Used in Preventing and Detecting Fraud
  • Make Suggestions for Internal Controls to Detect and Prevent Fraud
  • Assess the Cause of Systemic Weaknesses in Internal Control Systems

Module 3: Evaluate an Organisation’s Accounting System and Underpinning Procedures

• Organisation’s Accounting System and its Effectiveness
  • Control Objectives Risks and Control Procedures for Accounting Systems
  • How an Organisation’s Accounting System can Support Ethical Standards and Sustainable Practice
  • Identify Deficiencies in Accounting Systems that have an Impact on Cost-Effectiveness Reliability and Timeliness
  • Analyse the Cause of Deficiencies in Accounting Systems
  • Evaluate Impact of Deficiencies in an Accounting System including Time Money and Reputation
• Risk of Fraud
  • Risk Assessment Process
  • Assess the Impact of Poor Internal Controls on an Organisation’s Exposure to Risk
  • Assess Risk Using Measures such as Risk Matrix Low Medium High or Numerical Grade
  • Recommend a Response to Risk Ensuring Compliance with Regulatory and Legal Requirements
  • Propose Monitoring Review and Report Actions in Response to an Identified Risk
• Operating Practice
  • Why Accounting Systems should be Reviewed Regularly to Ensure that they are Fit for Purpose
  • Accounting Systems should be Cost-Effective Ethical Sustainable and Informative

Module 4: Understand the Impact of Technology on Accounting Systems

• Reporting Information Using Technology
  • How Accounting Software Presents Data to Non-Financial Managers
  • How Visualisation Improves Financial Understanding of Managers and Clients
• Using Technology within the Accounting System
  • How Technological Changes may Affect the Accounting System
  • Different Types of Data Analytics
  • Requirement for Data Security
  • Risks to Data from Cyberattacks Unauthorised Access Loss or Errors

Module 5: Recommend Improvements to an Organisation’s Accounting System

• Changes to the Accounting System
  • Principles of a SWOT Analysis
  • How to Apply a SWOT Analysis to an Accounting System
  • Principles of a PESTLE Analysis
  • How to Apply a PESTLE Analysis to an Accounting System
  • Undertake a SWOT Analysis
  • Undertake a PESTLE Analysis
  • Recommend Changes to the Accounting System
  • Provide a Clear Rationale to Support Recommendations
• Cost and Benefit of Changes to the Accounting System
  • Cost-Benefit Analysis
  • Quantify the Cost of Recommendations Stating Assumptions Made
  • Review Recommendations Against Ethical and Sustainability Principles
  • Undertake a Cost-Benefit Analysis
  • Recommend Changes to the Accounting System
  • Provide a Clear Rationale to Support Recommendations
• Effects of Changes on Users of the System
  • Changes that Users may be Required to Make to Working Practices to Comply with Statutory and Organisational Requirements
  • Appropriate Controls during the Transition from One System to Another
  • Problems that might Occur during Transition
  • Methods of Support for Users during System Changes
  • Evaluate the Implications of the Changes to Operating Procedures and Time Spent

Business Tax Course Outline

Guided learning hours (GLH): 60

Module 1: Prepare Tax Computations for Sole Traders and Partnerships

• Adjusting Accounting Profits and Losses for Tax Purposes
  • Cash Basis Is the Default Basis
  • An Election Can Be Made for the Accruals Basis
  • Differences Between the Cash Basis and the Accruals Basis
  • How to Identify Deductible and Non-Deductible Expenditure
  • How Expenditure is Classified as Either Revenue or Capital
  • Adjust Accounting Profit and Losses for Tax Purposes
• Prepare Capital Allowances Computations
  • Which Capital Allowances Apply to Different Assets
  • Prepare Capital Allowance Computations for Accounting Periods
• Calculating Taxable Profits and Losses of Partners
  • Allocate Profits Between Partners
• Calculate NICs Payable by Self-Employed Taxpayers
  • What Income Class 4 NICs Are Payable On
  • Calculate Class 4 NICs

Module 2: Prepare Tax Computations for Limited Companies

• Adjusting Accounting Profits and Losses for Tax Purposes
  • How to Identify Deductible and Non-Deductible Expenditure
  • How Expenditure Is Classified as Either Revenue or Capital
  • Adjust Accounting Profit and Losses for Tax Purposes
• Prepare Capital Allowances Computations
  • Which Capital Allowances Apply to Different Assets
  • Prepare Capital Allowance Computations for Accounting Periods
• Calculate Taxable Profits and Corporation Tax Payable
  • Calculate Profits from Trading, Property, Investment Income, Chargeable Gains, and Charitable Donations for Periods.
  • Calculate Corporation Tax Payable

Module 3: Prepare Tax Computations for the Sale of Capital Assets by Limited Companies

• Calculate Chargeable Gains and Allowable Losses
  • Calculate
• Calculate Chargeable Gains and Allowable Losses for Shares
  • Apply Matching Rules for Companies
  • Account

Module 4: Understand Administrative Requirements of the UK's Tax Regime

• Administrative Requirements of UK Tax Law
  • Tax Return Filing Deadlines for Sole Traders, Partnerships and Companies
  • Tax Payment Dates for Sole Traders, Partners and Companies
  • Time Limits for Notifying Chargeability to Tax
  • The Enquiry Windows
  • The Time Period Within Which Amendments to a Tax Return Can Be Made
  • What Records Need to Be Maintained and for What Time Period
  • Calculate the Business Profits to Be Included in Each Tax Year Using the Tax Year Basis
• Penalties and Interest for Non-Compliance
  • Penalties
  • Calculate Penalties and Interest for Non-Compliance

Module 5: Understand the Tax Implications of Business Disposals

• Business Disposals
  • Income Tax and Capital Gains Tax Implications of Disposing of an Unincorporated Business
  • Capital Gains Tax Reliefs
  • Calculate

Module 6: Understand Tax Reliefs, Planning Opportunities and Agent Responsibilities

• Trading Losses
  • Options Available to Sole Traders, Partnerships and Companies to Utilise Trading Losses
  • Best Use of a Trading Loss for Sole Traders, Partnerships and Limited Companies
  • Calculate Available Loss Relief
• Badges of Trade
  • How to Identify if Clients Are Trading Through the Application of the Badges of Trade
• Tax Planning for Businesses
  • Tax Rates Apply
  • Implications of Different Business Structures on Tax Planning
  • Impact on Tax from Different Methods of Extracting Profits
  • Tax Planning Opportunities for Income Allocation
• Ethical Guidelines
  • Definitions
  • Ethical Implications of Tax Avoidance and Tax Evasion
  • Requirement to Report Suspected Tax Evasion
  • Ethical Principle of Confidentiality

Audit and Assurance Course Outline

Guided learning hours (GLH): 60

Module 1: Demonstrate an Understanding of The Audit and Assurance Framework

• The Concepts and Principles
  • Meaning of the Term 'Audit'
  • Meaning of the Term 'Assurance’
  • General Principles of Audit and Assurance
  • Audit Expectation Gap
  • Difference Between Reasonable and Limited Assurance
  • Difference Between Positive and Negative Expression of Assurance
  • Benefits Gained from Assurance
  • Importance of Professional Scepticism And Professional Judgement
• Apply a Questioning Attitude to All Audit Activities
• The Regulatory Environment
  • The Role of Corporate Governance in the Audit and Assurance Process
  • The Principles of Good Governance
  • Comply or Explain Principle
  • Respective Responsibilities of Management, Internal Auditors and External Auditors in Relation to the Financial Statements
  • Importance of an Effective Audit Committee
• The Role of Internal Audit
  • Difference Between Internal and External Audit
  • Requirement for Internal Audit
  • Roles of Internal Audit
  • Different Types of Internal Audit Work
  • Risks Associated with a Lack of Independence

Module 2: Demonstrate the Importance of Professional Ethics

• Principles and Characteristics of Ethical Codes and the Implications for the Auditor
  • Importance of a Code of Ethics for the Profession
  • Consequences of Failing to Comply with the AAT Code of Professional Ethics
  • Auditor's Liability to the Company and Shareholders
  • Requirement for Professional Indemnity Insurance
  • Supervisory Requirements for Accounting Technicians
  • Apply the AAT Code of Professional Ethics to Audit Activities
• Threats to the Independence of Auditors
  • How Audit and Assurance Work May Compromise the Fundamental Principles
  • Significance of Independence And Its Relationship With Objectivity
  • Threats
  • Evaluate Circumstances That May Threaten the Application
• Safeguards to Eliminate or Reduce Threats to the Independence of Auditors
  • Evaluate firm-Wide Safeguards
  • Evaluate Audit Safeguards
• Fundamental Ethical Principles in Relation to Internal and External Audit

Module 3: Evaluate the Planning Process For Audit And Assurance

• The Concept of Risk
  • Components of the Audit Risk Model
  • Relationship Between the Components
  • How Factors Such as The Entity’s Operating Environment and its System
  • Risk Assessment Process
  • How Analytical Procedures Can Be Used to Identify Potential Understatement
  • Identify Audit Risks
• Identify Analytical Procedures That Could Expose Understatement
  • The Concept of Materiality
  • Difference Between ‘Performance Materiality’ And Materiality for the Financial Statements as a ‘Whole’
  • Role of Materiality in Planning an Audit and Evaluating Misstatements
  • Methods Used to Calculate Materiality Thresholds
  • Difference Between ’Material’ and ’Material and Pervasive’
  • Calculate Materiality Levels
• Audit Procedures
  • Develop Procedures to Obtain Sufficient Appropriate Evidence
• The Role of Audit Working Papers

Module 4: Evaluate Procedures for Obtaining Sufficient and Appropriate Evidence

• Methods Used to Obtain Audit Evidence
  • Types of Verification Techniques
  • Characteristics of Good Evidence
  • Reliability and Relevance of Different Sources of Audit Evidence
  • Differences Between Tests of Controls and Substantive Procedures
  • Identify When it is Appropriate to Use Each Type of Verification Technique
  • Evaluate Methods Used to Test
• Audit Techniques in An it Environment
  • Types of Automated Tools And Techniques
  • How Automated Tools and Techniques?
  • Benefits and Drawbacks of Using Automated Tools and Techniques
• Different Sampling Techniques
  • Statistical and Non-Statistical Sampling Methods
  • Advantages and Disadvantages of Different Sampling Methods
  • Distinguish Between Statistical and Non-Statistical Sampling
  • Determine When It Is More Appropriate to Examine 100% or a Selection Of Items
  • Distinguish Between Selection Methods and When They Should be Used
  • Identify Factors Affecting Sample Sizes
  • Identify Appropriate Populations from Which to Select Samples
• Audit Approach
• Audit Assertions

Module 5: Review and Report Findings

• Matters to be Referred to Senior Colleagues
  • Assess Misstatements for Materiality
  • Identify Deviations from an Audited Entity's Prescribed Procedures
  • Identify Matters
• External Audit Opinion
  • Methods Used to Obtain Audit Evidence
  • Audit Techniques in an IT Environment
  • Different Sampling Techniques
  • Audit Approach
  • Audit Assertions
• Report Audit Findings to Management
  • Elements of a Report on Deficiencies in Internal Control
  • How Deficiencies in Internal Control are Reported to Management
  • How Deficiencies in Internal Control are Reported to the Audit Committee
  • Identify the Consequences of Deficiencies
  • Report Findings to Management.