Accreditation of prior learning (APL) – portfolio of evidence documentation

IIA Diploma

P2 Financial Risks and Controls OutlineYou should complete and submit this documentation if you wish to make a submission for accreditation of prior learning for the module indicated above, once you have registered for the qualification. Guidance notes are provided in a separate document available on the Institute’s website.

In this document you will find sixteen defined knowledge areas each requiring you to provide and discuss evidence of learning. You will also find a concluding testimonial sheet for completion to accompany the entire submission.

Initial submission: You should complete any two of the evidence pages for two separate knowledge areas from within this pack and return electronically to the IIA via the address studentsupport@iia.org.uk, using the title APL- Initial submission. You will receive comments and feedback from an assessor to help you with your full submission.

Full submission: On receipt of your feedback from your initial submission, you will be given advice for completion of all sixteen knowledge areas and concluding testimonial. Following review and signature by your authenticating signatory or signatories (electronic insertion of name and date constitutes signature), you should submit the complete document electronically to address studentsupport@iia.org.uk, using the title APL- Full submission.

Payment detailsAn assessment fee of £137.50 + VAT is payable (current to 31 March 2015). We can invoice you or your employer. Your employer may require a purchase order number to be supplied with the invoice. Please note the required purchase order number in the box below or state "Not required". If no purchase order number is supplied then submission of this application will be taken as confirmation that your employer does not require a purchase order number. Please complete the options below:

Invoice me Invoice my employer

Submission confirmationI supply the information below as my submission for the accreditation of prior learning for the module named above. I also supply a copy of my Curriculum Vitae showing my internal audit experience totalling more than five years. I understand that my submission will be assessed under the process outlined in the APL policy and supporting materials:

Full Name

Membership number

Date

April 2014

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Purchase order number

Ref Knowledge area Syllabus reference

P2.1 Financing organisations and associated risks 1.1, 1.2, 1.3, 1.4, 1.5

Indicative knowledge and understanding requirements:

The main types of organisation and the sectors in which they operate, their objectives, the main internal and external sources of finance and the associated risks.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.2 The workings of the finance/accounts department 2.1

Indicative knowledge and understanding requirements:

The role of the main functions within a finance/accounts department.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.3 Financial risks and controls 2.2, 2.7

Indicative knowledge and understanding requirements:

The main risks and key controls in: cash and banking, income and debtors, expenditure and creditors, payroll, fixed assets and stock, and the use of the journal for correcting errors and making adjustments.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.4 Fraud risk 2.3

Indicative knowledge and understanding requirements:

How fraud or improper activities can occur within financial systems.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.5 Double entry systems 2.4, 2.8

Indicative knowledge and understanding requirements:

The basis of double entry, the presentation of ledger accounts and the purpose of the trial balance.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.6 Computerised accounting systems 2.5, 2.6

Indicative knowledge and understanding requirements:

The main components and operation of an integrated computerised accounting system, including the operation of a coding system.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.7 Accounting controls 3.1, 3.2, 3.3, 3.4, 3.5

Indicative knowledge and understanding requirements:

The role of accounting controls in preventing and detecting errors and fraud, including sales and purchase ledger control accounts, and bank and other reconciliation statements, and the impact on audit work of errors and discrepancies shown up by accounting controls.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.8 External financial reporting and published accounts 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, 4.9

Indicative knowledge and understanding requirements:

The purpose and main contents of a published annual report, including the layout, use, interpretation and associated terminology for different types of organisation of: an income statement, a balance sheet and a cash flow statement, together with the role of the external auditor in giving an opinion on the financial statements.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.9 Accounting concepts and objectives 5.1, 5.2, 5.3, 5.4

Indicative knowledge and understanding requirements:

The role of accounting objectives (relevance, reliability, understandability, comparability and materiality), concepts (going concern and accruals) and standards in regulating the preparation of financial statements, including the growing impact of international accounting standards, and the impact of adopting different accounting methods allowed by accounting standards on the financial statements (the choice of estimation techniques for provision for depreciation, and the methods of calculating the cost of stock).

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.10 Accounting adjustments and calculations 5.5, 5.6, 5.7

Indicative knowledge and understanding requirements:

Accounting adjustments when preparing financial statements (accruals and prepayments, provision for depreciation, provision for doubtful debts) together with calculations of depreciation (straight line and reducing balance methods) and explanations of the benefits of each method (estimation technique), and the basis for valuation of stock as the lower of cost and net realisable value.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.11 Cost accounting 6.1, 6.2, 6.3, 6.4. 6.5, 6.6, 6.7

Indicative knowledge and understanding requirements:

The main purposes of management accounting, costs analysis (direct and indirect costs; fixed, variable and semi-variable costs), the role of cost centres in cost accounting, and marginal and absorption costing and their use (the use of absorption costing and the assumptions made in the allocation of overheads, and the use of marginal costing for decision making, including the concept of contribution).

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.12 The budgeting process 6.8, 6.9, 6.10

Indicative knowledge and understanding requirements:

The steps and assumptions in the budget setting process, the function of budgetary control, the action to be taken when variances are identified, the preparation of a cash budget (cash flow forecast) from given information and the identification of future funding needs based on the forecast.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

- 13 -

Ref Knowledge area Syllabus reference

P2.13 Financial and non financial performance indicators 6.11

Indicative knowledge and understanding requirements:

The use of financial and non-financial performance indicators to monitor performance.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.14 Capital investment appraisal 6.12

Indicative knowledge and understanding requirements:

The key features of capital investment appraisal techniques and how to undertake calculations using net present value, payback period, and accounting rate of return.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

- 15 -

Ref Knowledge area Syllabus reference

P2.15 Interpreting accounting information 7.2, 7.5, 7.6, 7.7, 7.8, 7.9

Indicative knowledge and understanding requirements:

The usefulness of computerised data interrogation techniques for analysis of financial data; the calculation of accounting ratios relating to profitability, liquidity and efficiency and how to use them to draw conclusions about organisational performance; the limitations of financial statements in providing information about organisational performance; the interpretation of a given cash flow statement and the liquidity of the organisation; the use of results of accounting information analysis to suggest areas for further audit work; and the analysis of the results of capital investment appraisal techniques for a project and the process of management decision making.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Ref Knowledge area Syllabus reference

P2.16 The presentation of data and management accounts 7.1, 7.3, 7.4, 7.10

Indicative knowledge and understanding requirements:

The benefits of good presentation of numerical information and the need for analysis of this information by internal auditors; the preparation of numerical tables from given data to convey appropriate management information, including the use of ratios, fractions and percentages and calculations of the mean, median and mode from given data; the presentation of numerical information in graphical form; and the preparation of reports for management on the analysis of financial and management accounting information.

Source(s) of evidence – what specific evidence sources can you produce that demonstrate you have the required knowledge and understanding? These must be listed with a brief description and must be reviewed by the person who is authenticating your submission.

Explanation of how the evidence satisfies the knowledge and understanding requirements – how does the evidence cited demonstrate that you have the required knowledge and understanding? (Word count: 500)

Authenticating signature: I have viewed the evidence quoted above and in my opinion it demonstrates the candidate has the required knowledge and understanding of this subject.

Name Signature Date

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Please provide details of the person(s) making the authenticating signature for your portfolio.

Ideally the signatory should be a member of the IIA and hold a relevant professional qualification. Where this is not possible you should explain why the person or persons signing your portfolio is/are most appropriately placed to do so.

Signatory (1)

Name: Job role/title:

Relevant professional qualifications held: Professional relationship to you with relevant dates:

Signatory (2)

Name: Job role/title:

Relevant professional qualifications held: Professional relationship to you with relevant dates:

Signatory (3)

Name: Job role/title:

Relevant professional qualifications held: Professional relationship to you with relevant dates:

Candidate’s signature: I confirm that all of the evidence referred to in this portfolio is recent, reliable and authentic.

Name Signature Date

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© March 2012