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ICB LEARNERSHIPSAQA Qualification ID No. 36213 FASSET Learnership Code 01/Q010022/28/251/5 National Diploma: Technical Financial Accounting

ASSESSMENT RECORDName of Learnerand ICB Student Number

Name of Workplace Provider and Accreditation NumberName of Training Provider and Accreditation Number

Purpose of the Assessment Record:

To make the assessment process more manageable for both Learner and Assessor, the unit standards have been adapted into 28 units (learning outcomes). Each unit, with its component assessment criteria, have been included in this Assessment Record. This is to be completed by the Assessor. The Assessment Record is vital to the assessment process as it indicates the progress that the learner is making towards meeting all assessment criteria. After successfully completing this whole assessment the learner will have been assessed against all the outcomes for each unit (and all the relevant SAQA unit standards) and will be deemed competent. For each task answered in writing, evidence to demonstrate competence

ICB National Diploma: Technical Financial Accounting Learnership Page 1 of 116

Workplace Assessment Record – Original Version August 2006

should be filed in the learner’s Portfolio of Evidence and cross-referenced with the Assessment Record. For questions/tasks answered orally, the Assessor should initial and date the relevant question/task in the Assessment Record to indicate competence and support this where necessary, either by taking notes or by recording on cassette and filing this in the learner’s Portfolio of Evidence.

This Assessment Record is to be referred to in conjunction with the ICB’s NDTFA ‘Summarised SAQA Unit Standards Booklet’ as well as the learner's Portfolio of Evidence and ‘Practical Training Logbook’. Assessors are to check that all the relevant reports, forms and documents are completed and filed by the learner to assist in demonstrating competence in each unit standard of this learnership. Assessors are also to ensure that they sign off the learner as ‘Competent’ or ‘Not yet Competent’ for every unit in this Assessment Record.

Portfolio of Evidence (Training Record):The Learner's Training Record (Portfolio of Evidence) consists of several lever arch files and includes the following:

1. Learner’s Quarterly Reports – four formal reports in MS Word format 2. Practical Training Logbook – split into 27 sections - one for each unit standard selected from the 28 available

(this Logbook includes exactly the same unit standards, learning outcomes and assessment criteria as the Assessment Record)3. Documentary evidence for each unit – e.g. reports, print-outs, statements, summaries, letters, memos, projects, etc

It also includes the following completed ICB forms:

4. Examinations Report form (only if applicable)5. Courses and Seminars Attended form 6. Employment Record form/s7. Diary form/s – optional - only if required by the Supervisor/Mentor to supplement 1 and 2 above8. Review form/s – alternatively the company’s own performance appraisal form can be used

Responsibilities:The Learner is responsible for completing and filing all aspects of his/her Portfolio of Evidence (Training Record) except the Review form/s.The Supervisor/Mentor is responsible for completing the Review forms and providing the learner with copies. The Assessor is responsible for completing this Assessment Record in stages and providing the Learner with copies for his/her Portfolio of Evidence.



Contents of this Assessment Record:

Unit 1 Record income and receipts

Unit 2 Make and record payments

Unit 3 Prepare ledger balances and an initial trial balance

Unit 4 Maintain financial records and prepare ledger accounts

Unit 5 Draft financial statements

Unit 6 Prepare financial reports and returns

Unit 7 Work with information technology in an accounting environment

Unit 8 Produce spreadsheets using information technology in an accounting environment

Unit 9 Supply costing information for management control

Unit 10 Record, analyse and prepare cost information

Unit 11 Contribute to the management of costs and the enhancement of value

Unit 12 Contribute to the planning and allocation of resources within an accounting environment

Unit 13 Contribute to the implementation of auditing procedures

Unit 14 Manage accounting systems

Unit 15 Recognise, measure, classify and record financial and non-financial data



Unit 16 Operate a cash management and credit control system

Unit 17 Determine what is taxable income

Unit 18 Prepare business tax returns

Unit 19 Prepare personal tax returns

Unit 20 Interpret and apply the laws and procedures related to taxes levied

Unit 21 Interpret the laws and procedures relating to the duty which is levied on the estates of deceased persons

Unit 22 Interpret statutes and provide basic information on RSA legislation as it relates to the accounting function

Unit 23 Achieve personal effectiveness in an accounting environment (only 2 of units 23, 24 and 25 must be selected)

Unit 24 Administer and wind up the estates of deceased persons (only 2 of the 3 units 23, 24 and 25 must be selected)

Unit 25 Administer and wind up insolvent estates (only 2 of the 3 units 23, 24 and 25 must be selected)

Unit 26 Apply workplace communication skills

Unit 27 Demonstrate an understanding of professional values and ethics

Unit 28 Analyse and communicate workplace data

Note 1: These 28 units (unit standards) in this Assessment Guide should be read in conjunction with the NDTFA ‘Summarised SAQA Unit Standards Booklet’ which is available from the ICB in electronic format.

Note 2: In all the units which follow ‘GAAP’ stands for Generally Accepted Accounting Practice (and includes all the AC statements published by SAICA), while ‘PPAS’ represents all the relevant Policies, Procedures and Accounting Systems that are specific to the learner’s own organisation and workplace.



Unit 1 Record income and receipts

US ID 12988 - NQF Level 5 (10 credits) Please note that the evidence for Unit 1 can be combined and filed with Units 2 and 3

Instructions to the AssessorRequest the learner to produce a minimum of three documentations each (for aspects of tasks 1.1 and 1.2) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.

Unit 1 – Learning OutcomesPortfolio of EvidenceReference

Competence confirmed(Assessor’s initials and date)

Task 1.1Process documents relating to all types of goods and services (of a capital or revenue nature) supplied :

Prepare and check invoices and credit notes against e.g. quotes, orders, price lists, trade discounts, tenders, delivery notes, proof of delivery signatures, VAT compliance and PPAS (organisational Policies, Procedures and Accounting Systems)

Process sales, sales returns and general journals using both the periodic and perpetual inventory systems

Post journals to the general, debtors and creditors ledgers Prepare and distribute debtors’ statements Communicate proactively with debtors

Task 1.2Receive and record receipts (of a capital or revenue nature):

Check and reconcile receipts against e.g. statements, invoices, till registers, signatures, paying-in documents, deposit slips, cheques, cash, electronic banking records and PPAS

Process cash receipts journals and any related general journal entries using both the periodic and perpetual inventory systems

Check and process interest and cash/settlement discounts and reversals of payments



Ensure VAT compliance Post journals to the general, debtors and creditors ledgers Prepare and send debtors statements Identify and then resolve (or refer) unusual issues

OVERALL COMPETENCY IN UNIT 1 C = Competent NYC = Not Yet Competent

In the case of a NYC (not yet competent) decision, the Assessor must document the reassessment date and any other relevant information below (e.g. suggested learning interventions, additional tasks/projects, coaching sessions, etc.)

Learner’ Signature: ________________________ Assessor’s Signature: _______________________ Date: _____________



Unit 2 Make and record payments


Instructions to the AssessorRequest the learner to produce a minimum of three documentations each (for aspects of tasks 2.1 and 2.2) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 2.1Process documents relating to all types of goods and services (of a capital or revenue nature) received:

Check invoices, debit notes and credit notes against e.g. quotes, orders, price lists, trade discounts, tenders, delivery notes, proof of delivery signatures, VAT compliance and PPAS (organisational Policies, Procedures and Accounting Systems)

Identify discrepancies in pricing, quantities delivered, discounts, etc. Process purchases, purchases returns and general journals using both the periodic and

perpetual inventory systems Post journals to the general, debtors and creditors ledgers Check and reconcile creditors’ statements Communicate proactively with creditors

Task 2.2Prepare, make and record authorised payments (of a capital or revenue nature):

Calculate, check, reconcile, schedule and make payments against e.g. statements, invoices, cheque/electronic requisitions, signatures, electronic banking records, security/confidentiality requirements and PPAS

Process cash payments journals and any related general journal entries using both the periodic and perpetual inventory systems



Check and process interest and cash/settlement discounts and reversals of receipts Ensure VAT compliance Post journals to the general, debtors and creditors ledgers Reconcile creditors statements and distribute remittance advices Identify and then resolve (or refer) unusual issues






Unit 3 Prepare ledger balances and an initial trial balance


Instructions to the AssessorRequest the learner to produce a minimum of three documentations each (for aspects of tasks 3.2, 3.3 and 3.4) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. Also refer to the learner’s evidence in units 1 and 2 for task 3.1.



Task 3.1

Use evidence from units 1 and 2 to demonstrate an understanding of how both cash and credit transactions are processed from source documents into all the journals (subsidiary books) in compliance with GAAP, PPAS and statutory legislation (e.g. the VAT, Income Tax, SDL, UIF and COID acts:

Cash and bank transactions Other transactions

Use evidence from units 1 and 2 to demonstrate an understanding of how all the journals subsidiary books) are posted to the general, debtors and creditors ledgers:

Posting to all accounts Balancing of accounts

Task 3.2

Perform a month-end bank reconciliation: Entries on the bank statement are compared (ticked off) to entries in the cash book



Differences are highlighted in the cash book or bank statement and itemised Entries on bank statement not recorded in the cash book (cash receipts and payments

journals) are entered in the cash book Other differences and bank errors are entered in the bank reconciliation statement

Draft a monthly bank reconciliation statement to reconcile the bank statement balance and the general ledger bank account

Task 3.3

Prepare ledger balances and reconcile control/clearing accounts: Prepare a debtors aged listing and reconcile to the debtors control account Prepare a creditors list and reconcile to the creditors control account Prepare and post the salary register to the general ledger and reconcile all the payroll

and statutory clearing/control accounts as well as the VAT control account Identify and resolve (or refer) discrepancies

Task 3.4

Draft an initial trial balance in accordance with GAAP and PPAS: The draft trial balance must balance Examine and analyse the trial balance for reasonability Any discrepancies and/or anomalies must be identified and resolved (or reported) Documents and financial records must be file, stored and retained in line with all

statutory and PPAS requirements








Unit 4 Maintain financial records and prepare general ledger accounts

US ID 12995 - NQF Level 5 (12 credits) Please note that the evidence for Unit 4 can be combined and filed with Unit 5

Instructions to the AssessorRequest the learner to produce a minimum of two documentations (for aspects of task 4.1) and three documentations (for aspects of task 4.2) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. Also refer to the any relevant evidence in unit 5 for task 4.2.



Task 4.1Demonstrate an understanding of procedures and processes in handling fixed assets:

Assets at cost and accumulated depreciation Capital expenditure procedures; request and authorization Purchase of assets and their cost Depreciation policies – straight line and reducing balance etc. Correctly recording depreciation in the income statement and net carrying value (cost

less accumulated depreciation) in the balance sheet Disposal of fixed assets; accounting for profit/loss Periodic vouching of assets; procedures for losses and gains

Task 4.2Given the ledgers and pre-adjustment trial balance for a small business, provide for and journalise the following adjustments, update the ledgers, meet deadlines and produce a post-adjustment trial balance according to GAAP and PPAS:

Stock valuation and cost of sales (periodic and perpetual inventory methods) Stock valuation and cost of sales (using FIFO, LIFO and AWC methods)



Depreciation (straight-line and diminishing balance methods) Prepaid and accrued expenses Prepaid and accrued income Reversals of accruals and prepayments Corrections of errors Bad debts written off Creation, increasing and/or decreasing the provision for doubtful debts Profit and/or loss on disposal of assets Reconciliations of suspense accounts Differences between financial records and physical existence of assets are finalised Any other discrepancies and/or anomalies are identified and resolved (or reported)






Unit 5 Draft financial statements (sole traders, partnerships, close corporations and private companies)

US ID 13015 - NQF Level 5 (12 credits) Please note that the evidence for Unit 4 can be combined and filed here with Unit 5

Instructions to the AssessorRequest the learner to produce a minimum of three documentations each (for aspects of tasks 5.1, 5.2 and 5.3), as well as two documentations each (for aspects of tasks 5.4a and 5.4b) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. Also refer to the learner’s evidence in unit 4 for task 5.1 as tasks 4.2 and 5.1 are identical.



Task 5.1 (this is the same as task 4.2 – refer to unit 4))Given the ledgers and pre-adjustment trial balance for a small business, provide for and journalise the following adjustments, update the ledgers, meet deadlines and produce a post-adjustment trial balance according to GAAP and PPAS:

Stock valuation and cost of sales (periodic and perpetual inventory methods) Stock valuation and cost of sales (using FIFO, LIFO and AWC methods) Depreciation (straight-line and diminishing balance methods) Prepaid and accrued expenses Prepaid and accrued income Reversals of accruals and prepayments Corrections of errors Bad debts written off Creation, increasing and/or decreasing the provision for doubtful debts Profit and/or loss on disposal of assets Reconciliations of suspense accounts Differences between financial records and physical existence of assets are finalised Any other discrepancies and/or anomalies are identified and resolved (or reported)



Task 5.2Given a post-adjustment trial balance for a sole trader, draft the following in accordance with PPAS and (if applicable) GAAP:

Income Statement (and/or Trading and Profit & Loss account) Balance Sheet Notes to the financial statements Explain the relationships between elements within the financial statements and

demonstrate by means of ratio analysis (refer to Appendix 7)

Task 5.3Given a post-adjustment trial balance for a partnership, draft the following in accordance with PPAS and GAAP (if applicable):

Income Statement (including the appropriation of profit in terms of the agreement) Balance Sheet Statement of Changes in Equity Notes to the financial statements Explain the relationships between elements within the financial statements

Task 5.4Given a post-adjustment trial balance for (a) a private company and (b) a close corporation, draft the following in accordance with GAAP and the relevant legislation:

Income Statement Balance Sheet Cash Flow Statement Statement of Changes in Equity Notes to the financial statements Explain the relationships between elements within the financial statements Highlight some the key differences between the four different entities (in terms of

their legal status as well as their GAAP and taxation requirements








Unit 6 Prepare financial reports and returns

US ID 12997 - NQF Level 5 (8 credits) Please note that much of the evidence for Unit 6 can be based on the information that has already provided in units 1 to 5

Instructions to the AssessorRequest the learner to produce a minimum of two documentations each (for aspects of tasks 6.1 and 6.2) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. For task 6.1 only, it is recommended that learners base the reports and ratios on their documentations already prepared for tasks 5.3 and/or 5.4. Task 6.2 will require learners to source new data.



Task 6.1Prepare and present periodic performance reports (in accordance with PPAS) that:

Consolidate information from (and between) different units of the organisation Reconcile any differences between different organisational information systems Allow for changing price levels when comparing results over time Accurately calculate and compare ratios and performance indicators

Some examples (refer to Appendix 7): Profitability, turnover, expenses, productivity and utilisation ratios Liquidity - working capital, current ratio and acid test ratio Efficiency - Inventory days, debtors days, creditors days, etc.

Task 6.2Prepare reports and returns for outside agencies (in accordance with legislation/regulations:

VAT, Tax, UIF, SDL, Seta, COID, etc Pension, medical aid and insurance Handle queries, audits and inspections (or obtain authorisation or instructions)








Unit 7 Work with information technology in an accounting environment

US ID 12991 - NQF Level 5 (6 credits)

Some of the evidence for Unit 7 can be based on information that the learner has already provided in several other units. If so the assessor can make notes here:

Instructions to the AssessorRequest the learner to produce a minimum of two documentations each (for aspects of tasks 7.1, 7.2 and 7.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 7.1Demonstrate an understanding of MIS principles:

GIGO – garbage in, garbage out Vetting of input data Virus protection Saving data Storage of data with reference to offsite storage



Task 7.2

Formative assessment (prior to the final interview) in inputting, storing and outputting data:

Prepare a table on a spreadsheet (Excel, Lotus, etc.) with column and row headers Password protect workbook Input raw data with a control total; compare this to the control total calculated on the

spreadsheet Make a deliberate mistake in raw data input and identify by comparing control totals;

correct the mistake Use the “find” command, or equivalent, to find data Save worksheet to drive or disk Print the table Send an e-mail to the assessor with the spreadsheet file as an attachment

Summative assessment (the interview) – Refer to Unit 28 which is assessed in the workplace at the learner’s own PC and printer - Task 7.2 can be assessed at the same time as Unit 28 using data provided by the assessor at the interview

Task 7.3

Demonstrate an understanding of how to minimize risk to data held on a computer system:

Backup procedures Offsite storage Password protection Systematic close down of computer system so as not to corrupt data Outside support; service level agreements Physical protection of hardware Software protection; contact and backup arrangements with software house; testing

backups of software for integrity





The Assessor must also list any pertinent information (in the space provided at the beginning of this unit) where the learner has already demonstrated this competency in any of the specific outcomes related to other unit standards (e.g. units 1 to 6, 9 to 10, and 15)




Unit 8 Produce spreadsheets using accounting related information technology


Some of the evidence for Unit 8 can be based on information that the learner has already provided in several other units. If so the assessor can make notes here:

Instructions to the AssessorRequest the learner to produce a minimum of two documentations each (for aspects of tasks 8.1, 8.2, 8.3 and 8.4) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Formative assessment and/or summative assessment – the Assessor must also observe the learner actually working on a spreadsheet and carrying out suitable tasks

Task 8.1Assess candidate’s ability to prepare a basic spreadsheet with guaranteed accuracy and clear presentation:

Name of spreadsheet concisely describes its function and purpose Clear headings of columns and rows Sizing cells so that data is clearly displayed



Able to format key information witho Boldo Italicso Underliningo Colouringo Etc.

Logical totals foro Rowso Columns

Crosscasts; diagnostic checks involving cross relating data to ensure integrity of calculated values

Run tests to ensure accuracy of totals/calculated values when data is changed

Task 8.2Assess learner’s understanding of:

Principles of downloading data from one MIS to a spreadsheeto E.g. Trial Balance to a spreadsheet

Converting an asci file to an Excel/Lotus spreadsheet Diagnostic checking to ensure accuracy and completeness of downloaded data

o E.g. Control totals

Task 8.3Assess learner’s ability to structure a workbook (e.g. Excel) with several spreadsheets:

Data input sheet Calculation sheet Output sheet

o Calculated datao Formatted for easy reading

Task 8.4Assess learner’s ability to password protect worksheets and workbook files





The Assessor must also list any pertinent information (in the space provided at the beginning of this unit) where the learner has already demonstrated this competency in any of the specific outcomes related to other unit standards (e.g. units 1 to 6, 9 to 10, and 15)




Unit 9 Supply costing information for management control





Task 9.1Demonstrate an understanding of the business and accounting environment:

What revenue iso Sale of goodso Service feeso Other income

What costs areo Materialso Wageso Salarieso Electricityo Etc.

Profit centres within an organization (so that management can understand them)o Revenueo Cost of saleso = Gross profito Expenses



o = Net profit before interest and tax (by division/branch/etc.) Role of MIS (Management Information Systems) in an organization

o Measurement of performanceo Monitoring of activitieso Assigning revenues/costs and profits to individuals who take accountabilityo The purpose of MIS is to enhance performance

Organizational policies and procedures in accounting systemso Methods of revenue and cost collection

Software Data capture Capture points Responsibilities for capture Monitoring and corrective action

o Chart of accounts Designed for organization requirements Classifications – costs; revenues Responsibility centres and cost centres

o Types of documents Inputs

Cheque requisitions Invoices – suppliers Other costs Invoices- sales

Outputs Report layouts

Task 9.2Demonstrate an understanding of coding and extracting cost information:

Definition and understanding of cost elementso Materials o Wageso Electricityo Advertising



o Etc.

Extracting cost elements into cost centreso Wages and salaries

Code each employee to a cost centreo Electricity, consumables, etc.

To machines Machines to cost centres Associated costs to cost centres

o Advertising To cost centres

o Other expenses To cost centres

Extracting revenues into profit centreso Sales

To divisions To branches/geographic areas

o Other income To cost centres

Creation of profit centreso Revenue and costs matched offo Some cost centres are without revenue an part of overhead cost for absorption

type allocation Coding methods

o Negative – once a cost element is coded it will always default to the ascribed cost centre

o Positive – have to code to a cost centre for each period Coding discipline

o Methodology set in coding cost elements and revenues to cost and profit centres

o Procedures in coding laid downo Audit and follow up of coding



o Corrective actions for incorrect coding

Task 9.3Demonstrate an understanding on how to provide comparisons between actual income and costs to a benchmark:

Generate an actual income statemento Revenueo Less costs

Wages Materials Etc

o Profit Then take revenue and costs, line by line, and compare to a benchmark which can be

o Budgeto Prior periodo Forecast

Calculate the difference between actual and benchmark – revenue and costs (line by line) – to arrive at a variance

o Actual revenue and costso Budget revenue and costso Variance – actual and budget

Forward above analysis to the appropriate persons in the organizationo CEOo Department headso Line managerso Etc.

The policy and procedures for each officer receiving the above information with respect to confidentiality

(Refer to Appendix 4 for an example)










Unit 10 Record, analyse and prepare cost information


Instructions to the AssessorRequest the learner to produce a minimum of three documentations each (for aspects of tasks 10.1 and 10.2) and one documentation (for task 10.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 10.1

Demonstrate the ability to record direct costs and analyse them: Define direct costs

o Materialso Wageso Factory related overheads

Elementary understanding of variance analysiso Layout of a standard bill of material – refer to Appendix 3 for an exampleo Variance analysis

Materials Labour Variable and fixed overheads(Refer Appendix 1 for formulas and layout)

o Elementary discussion on variances and identifying problem areas



Task 10.2Define overhead costs and demonstrate an elementary knowledge on how overheads are allocated:

Examples of overhead costso Indirect labouro Supervision salarieso Factory rento Depreciation chargeso Indirect materialso Consumableso Others

Allocation of fixed overheadso Direct allocation to cost centreso % allocations based on

Floor area Machine hours Others

(Refer to Appendix 2 for an example)

Task 10.3Learner to prepare a standard cost report:

Set out variance analysis per Task 10.1 in a user friendly layout

Task 10.4Learner to list and briefly highlight the key differences between some of the following costing systems:

o Standard costingo Variance reportingo Marginal costingo Absorption costingo Activity based costingo Job costing








Unit 11 Contribute to the management of costs and the enhancement of value





Task 11.1Highlight and set out techniques for analyzing costs:

Budgetary control systems – refer Appendix 4 for an example Statistical measurements

o Examples of KPIs (Key performance indicators) Headcounts Expenses month by month Productivity measurements Index numbers to compare cost trends (convert using 100 as a base)

Task 11.2Demonstrate methods of cost control:

Review costs in 11.1 and recommend corrective action TQM (Total quality management)

o Reduce defects – scrap and rework; returned goods; cost of recalling products Standard costing and variance analysis (covered in unit 10 so assessment is optional

in this unit)



Use of a specialist to implement quality and re-engineering with expected cost reductions

Task 11.3Set out some criterion for determining selling prices:

Mark-up on cost Analyzing competitor selling prices Profit margin required Sustainability of selling prices set






Unit 12 Contribute to the planning and allocation of resources within an accounting framework

US ID 13000 - NQF Level 5 (10 credits) Please note that the evidence for Unit 12 can be referenced to the evidence filed withUnits 5, 6, 9, 10 and 11 and does not necessarily have to be duplicated here




Task 12.1Demonstrate an ability to prepare forecasts of income and expenditure:

Determine activity levelo General economic data

Growth Inflation; CPI Interest rates Etc.

Prepare forecasts of incomeo Number of units and productso Selling price of productso Sales forecasto Sundry income forecast

Scrap sales Rentals collected Etc.



Prepare forecast of expenditureo Head count wages and salaries

Headcount converted into costo Cost of materials

Number of units and products Material cost price of products Material cost forecast

o Direct costs Activity level

Products sold and produced Direct costs in relation to activity

Direct wages Electricity Consumables Others

o Indirect costs Factory overhead Selling cost overhead Admin overheads Salaries Indirect wages Rent Depreciation Advertising, Telephones, etc.

Prepare income and expenditure in logical detailo Tableso Clear lines making up saleso Clear lines making up expenses

Specify all your assumptionso Economic factorso Where sales projections were obtained

E.g. Sales manager’s forecast



Comparison to previous year for validityo Where expense projections were obtained

E.g. Departmental managers’ forecasts Comparison to previous year for validity

Circulate to relevant individualso Assessment of forecasto Queries raisedo Queries investigatedo Queries answered or forecast changed in the light of queries

Monitor changeso Economic factorso Sales forecasto Expense forecast

Final changes if necessary in the light of the above

Task 12.2Demonstrate an ability to produce draft budget proposals:

Understand organizational objectiveso Market positiono Growth targeto Service levelso Others

Obtain all relevant datao Prepare budget in line with task 12.1 above

Agree budget with relevant stake holderso Sales managerso Departmental headso Middle management

Present draft budget proposals to top managemento Tables and graphso Clear lines making up sales



o Clear lines making up expenses Top management then agree or make changes If changes are made - cascade down to middle management and obtain agreement Budget finalized Break budget into periods

o Sales and cost of sales according to seasonal factors; e.g. higher levels in activity over October to December for retail businesses

o Fixed expenses; or period expenses; 1/12th of year per month Inclusion of all stakeholders in the budget process

o Buy in at all levels of organizationo Budget seen as value adding to department heads, etc. - rather than a whip

Task 12.3

Demonstrate an ability to monitor the performance of responsibility centres against budget Routine cost reports per task 11.2 Ensure that correct budgets (month and YTD – year to date) are loaded into the

reporting system of an organizationo Use the GL (accounting package) budget facilityo Or special purpose reporting forms like

Excel Special budget software

Check integrity of budgets loadedo Ensure detailed lines add to control totalo Cost centres add to master budget

Identify variances and report to management – refer to Appendix 4 for an example Highlight significant variances

o Over a threshold amount – say 10% over/under budgeto Report to management



Task 12.4Demonstrate an understanding of the business and accounting environment

Budgets and planningo Use computer packages for budgetingo Mention some statistical methods for extrapolating revenues and costso Understand how capacity levels impact on fixed costs

Low volumes – high unit product costs High volumes – low unit product cost

o Analysis of budgets and comparison to actual costs – refer to Appendix 1 and Appendix 4 for examples of the layout

Budget control and co-ordinationo Different types of budgets

Master budget prepared annually Revised budget Forecasts

o Planning and co-ordination in creating budgetso Management and organization in co-ordinating budget preparation

Forms to department heads and line managers in charge of cost centres Inputting of their budget returns Logical groupings in budget software Final budget built up from detailed budgets prepared at various levels

in the organizationo Inter-relationships between departments and functions

Impact of activity on cost centres Activities crossing boundaries of cost centres Co-ordination of departments to achieve overall organizational

objectives










Unit 13 Contribute to the implementation of auditing procedures

US ID 13018 - NQF Level 5 (12 credits)Please note that the evidence for Unit 13 can be based on the information in:The Principles and Practice of Auditing (Puttick and van Esch) – th Edition or later

Instructions to the AssessorRequest the learner to produce a minimum of three documentations (one for task 13.1, one for task 13.2 and one for task 13.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 13.1Review and record systems (DOCUMENTATION 1) – select any one option from Subsection 1 to Subsection 6:

Purchasing cycle (Subsection 1) Purchase order Receipt of goods or services Processing supplier invoices Payment

Revenue cycle (Subsection 2)o Sales ordero Delivery of goods or serviceso Invoicingo Cash collection

Security of assets (Subsection 3)o Fixed assetso Stocko Debtors



Integrity of balance sheet accounts (Subsection 4)o Control of journalso Regular reconciliations conducted and reviewed

Expense control (Subsection 5)o Costs collected in such a way that they are understoodo Compared to benchmarks such as budget or previous period – refer to

Appendix 4 for an exampleo Regular reviews and analysis

Payroll (Subsection 6)o Employees true & correcto Good data baseo Regular review by senior management

Task 13.2Risks are accurately assessed (DOCUMENTATION 2) – select any one option from Subsection 1 to Subsection 3:

Accurately assess the risks (Subsection 1)o E.g. Purchase cycle mapped

Who can authorize various stages – order, receipt, invoice and payment; weaknesses, division of duties and authorizations – refer to Appendix 5 for an example

o E.g. Revenue cycle Who can receive a sales order, who can authorize & allow delivery,

who collects funds; weaknesses, division of duties and valid authorizations

Control objectives to minimize risk (Subsection 2)o Understanding where risks in various accounting cycles lieo Analyzing the controls in place and the degree to which they control and

minimize the riskso Identifying weaknesses in control from the above to form the focus of an audit

Samples and testing (Subsection 3)



o Which areas are audited Method can be to focus on areas of weak internal control and leave

areas of strong controlo Select transactions and trace them through the cycle

E.g. Example from the purchase cycle Select 5 purchase orders

Who authorized them? Who entered them in the system – who has user rights to

process a purchase order? Are purchase orders linked to approved suppliers? Who approved the supplier and with what authority? Who authorized the receipt and with what authority? Who signed off the invoice and with what authority? Who processed the invoice into accounts payable? Who authorized and allowed payment?

Similar for revenue cycle, stock, fixed assets, etc.

Task 13.3Draft a report demonstrating an ability to conduct, or contribute to the conducting, of an audit (DOCUMENTATION 3) – select any one from Subsection 1 to Subsection 3:

Conduct tests according to audit plan (Subsection 1)o Tests are completeo Tests are properly conductedo Results are properly recordedo Valid conclusion are drawn

Compliance to procedures Authority limits followed

Balance sheet accounts examined (Subsection 2)o Control accounts – Fixed assets, Debtors, creditors, stock – do they agree to

subsidiary ledgers?o Subsidiary ledgers are complete



All fixed assets on subsidiary ledger Sample counts and checks to subsidiary ledger Sample valuations – asset to purchase invoice

All stock on subsidiary ledger Sample count – top 100 items by value – makes up, say, 40%

of stock value Compare count to theoretical stock balance on subsidiary

ledger Values are in accordance with AC108 Obsolescence provision is sufficient

Debtors accounts summarized on an age analysis Debtors identified by current/30/60 etc days Review and corrective action to delinquent debtors

o Dunning letterso Phone callso Closure of accounts

Creditors No duplicate invoice posting Recon to suppliers, if any concern over weaknesses in

receipting and invoice processing Accruals

Completeness; all unrecorded liabilities included in this areao History of expenseso Regular payments – e.g. credit cards – one month in

arrearso Liability for commissions only paid in the following

montho Etc.

o Identification of significant errors and areas of non compliance Identified by examination of above and appropriate tests Discuss with line managers responsible for their comment and input Report to the audit supervisor - refer to Appendix 5 for an example of



the layout

Examination of the IT environment (Subsection 3)o Password structures

Systems users only given to access to what is needed Clerk can process data Manager can authorize payment of data processed Others can read only but not process

o Data and program backups Plans in place Frequency of backups

Mirror imaging Daily Weekly Month-ends

Off site storage

The report prepared in task 13.3 above should be set out in the following format: Clear, concise report

o User friendly; short and to the pointo Clearly and logically set outo Use of an index – refer to Appendix 6 for an exampleo Critical areas highlighted and right focus brought to bear

Conclusions supported with evidence; exampleso Stock shortages – shortfalls agreed and signed by Store Managero Deliveries without invoice – schedule to prove; agreement by Dispatch

Manager and signed by him/her Recommendations made can be implemented

o Staff available to implement procedureso Recommendations are in line with existing procedures

Conclusions and recommendations are discussed and approved by audit supervisor before being released to operational staff








Unit 14 Manage Accounting Systems


Instructions to the AssessorRequest the learner to produce a minimum of one documentations each (for aspects of tasks 14.1, 14.2, 14.3, 14.4, 14.5 and 14.6) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 14.1Identify and describe the type of staff needed to process:

o Creditors ledger; invoice capture and paymento Stock ledger; stock movementso Debtors ledger; invoices and receiptso Cash book; receipts and paymentso Fixed assets; purchases, disposals and depreciationo General ledgero Preparation of financial statements

Task 14.2Identify and explain some examples of techniques to manage the above staff:

o Job descriptionso Goal setting



o Performance managemento Absences due to leave, sickness, etc.o Cross skilling to cover absences, etc.

Task 14.3Give specific examples of where accounting systems can be improved (for example):

o Use of accounting softwareo Communications by e-mailo Accounting reports generated by General Ledger software package; rather

than copying data from one system to anothero Others that learner recommends

Task 14.4Demonstrate an appreciation of the concept of comparing the value of information to the cost of obtaining it. Examples are:

o Creditors reconciliations; are they necessary if the purchase and stock receipting system is reliable?

o Amount of detail in reportso Others that the learner recommends

Task 14.5Identify and evaluate deficiencies in control:

o This is covered in unit 13 “Contribute to the implementation of auditing procedures”

Task 14.6List and describe three areas of external relations within an accounting department

o Other departments Liaise to ascertain information requirements Provision of info within framework of cost effectiveness

o Auditorso Suppliers



o Customerso Banko Other business partners








Unit 15 Recognise, measure, classify and record financial and non-financial data

US ID 12935 - NQF Level 6 (8 credits) Some of the evidence already provided in Units 5, 6, 9 and 10 can also be used hereand does not have to be duplicated

Instructions to the AssessorRequest the learner to produce a minimum of two documentations each (for aspects of tasks 15.1, 15.2, 15.3, 15.4 and 15.5) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 15.1Demonstrate an ability to recognise and classify Balance Sheet information:

Assetso Recognise and classify into non-current and current assets

Non-current assets Fixed assets – Property, Plant and Equipment – Cost,

Accumulated Depreciation and Carrying Value Investments Long-term loans made Goodwill, Patents, etc.

Current assets – Inventories, Debtors, Prepayments, Cash and cash equivalents

Equityo Recognise and classify into

Share capital – ordinary shares, preference shares Distributable reserves – retained earnings, general reserves Non distributable reserves – share premium, asset revaluations



Liabilitieso Recognise and classify into non-current and current liabilities

Non-current liabilities – debentures, long term loans, financing agreements (HP, rentals etc)

Current liabilities – creditors, tax owing, accruals and provisions, bank overdraft

Task 15.2Demonstrate an ability to recognise and classify Income Statement information:

Revenue itemso Saleso Rents receivedo Fees receivedo Others

Expenseso Cost of sales

Materials Wages Other production related costs, e.g. factory overheads

o Operating expenses e.g. salaries, rents, depreciation, advertising, etc..

Gross profit, Net profit before interest and tax (NPBIT), Net profit after interest & before tax (NPAIBT and Net profit after Tax (NPAT) Net profit available to ordinary shareholders

Task 15.3Demonstrate an ability to recognise and classify Cash Flow Statement information:

Alternative 1 - the Direct Method - (recommended)o Receipts from clientso Less Payments to suppliers and employeeso = Cash generated from operations (1#)o Less Interest, Tax and Dividends paid (#2)



o = Net cash flow from operating activitieso Plus/minus net cash flow from investment activities (+ sales and –

purchases of non-current assets)o Plus cash flow from financing activities (proceeds of share issues and loans)o = Increase/decrease in cash and cash equivalentso Plus cash and cash equivalents at the beginning of the yearo = cash and cash equivalents at the end of the yearo Note 1: Reconciling the net profit before tax with cash generated from

operations (#1)o Note 2: Calculating tax and dividends paid (#2)

Alternative 2 – the Indirect Method – (not recommended) o The indirect method is also acceptable but not recommended

Task 15.4Demonstrate an ability to recognise and classify non-financial data:

Unit sales, unit production – numbers, tonnages, litres Percentages – e.g. market share, divisions, geographic areas SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) Share prices and share price trends Various relevant statistics

Task 15.5 Demonstrate an ability to measure financial and non-financial data:

Summarise and complete balance sheet, income statement, cash flow and non- financial data as per tasks 15.1, 15.2, 15.3 and 15.4 above

Perform ratio analysis to relate balance sheet and income statement components to each other (refer to Appendix 7)

Trend analyses – e.g. stock days year on year, debtors year on year, share prices year on year, market share year on year, unit sales year on year, etc.

Cross relate financial and non financial data – e.g. compare PBIT to market share –



regression analysis








Unit 16 Operate a cash management and credit control system





Task 16.1Demonstrate an ability to forecast and monitor cash flow:

Forecast cash receiptso Cash collection from receiptso Relationship of sales and changing debtor balances, i.e. cash receipts =

opening debtors + sales – closing debtorso Loans advanced

Forecast paymentso Cash purchaseso Creditor paymentso Cash expenseso Ignore non-cash expenses e.g. deprecation, accruals and provisionso Repayment of loanso Capital expenditure

Project cash requirements – outflow or inflow – from forecasts above Record receipts



o Cash book receipts – debtor receipts and other receipts Record payments

o Cash book payments Classify into expenses – purchases and others , capital expenditure

Compare actual cash flow to forecasted cash flowo Sales receiptso Paymentso Capital expenditureo Financingo Highlight significant variances in above

Task 16.2Demonstrate and ability to manage cash balances:

Calculate cash requirements from cash forecast exercise For a cash outflow using up all cash balances

o Long term – most favourable loan interest and conditionso If short term overdraft facilityo Determine best mix of long-term loan and overdrafto Calculate: expected, worst and besto Arrange facility for worst case scenario

For cash inflowo Best financial instruments with which to place money

Fixed term Short term – e.g. money market

o Arrange various options so that unexpected inflows can be quickly placed to earn interest

Ensure cash liquidity at all stages irrespective of inflow or outflow of casho Inflow – leave some cash in 1-day accounts even if interest rates are lowero Outflow – ensure adequate overdraft facilities in case worst case scenario

happens

Task 16.3



Demonstrate an ability to safely allow credit facilities with customers with minimal loss in bad debts:

Credit screening processo Credit applications with applicants datao Check various other credit references cited by applicant, bank rating, legal

search for judgements, credit rating agencieso Analyse annual financial statements for reasonability of credit limit and

liquidity If applicable, ask for personal sureties from directors Credit limit within company policy and procedures – e.g. 2 months of the customer’s

purchases Monitor debtor status

o Age analysiso Systematic reminders (phone calls, emails, resolve queries)o Formal follow up after 60 dayso Block problematic accounts

Task 16.4:Demonstrate an ability to monitor and control the collection of debts:

Monitor debtor statuso Age analysiso Systematic reminders (phone calls, emails, resolve queries)o Formal follow up after 60 dayso Block problematic accounts

Communicate with relevant persons in own company to follow up on bad debtso Sales managers/representativeso Chief Executiveo Establish importance of relationship with customer

Processes for final non-paymento All avenues of recovery exhaustedo Legalo Blacklist



o Bad debt write off – approval and journal process








Unit 17 Determine what is taxable income

US ID 13025 - NQF Level 6 (16 credits)Please note that the evidence for Unit 17 can be based on the information in either:Notes on South African Income Tax (Huxham and Haupt) – 2006 or laterSilk: South African Income Tax (Jordaan et al) – 2006 or later




Task 17.1Determine gross income (in accordance with the relevant tax legislation):

Identify receipts and accruals in cash or otherwise Identify both the true and deemed source of an amount (in terms of Section 9 of the

Income Tax Act) Determine the income or capital nature of receipts and accruals Identify receipts and accruals of amounts specifically included in gross income as per

gross income special inclusions Identify deemed accruals of certain amounts

Task 17.2Determine and advise on which income is exempt from tax (in accordance with the relevant tax legislation):

Identify certain income accruing to non-residents Determine the taxation of lump sums on retirement or retrenchment Identify the interest from certain investments which is exempt from normal tax



Identify dividends received or accrued which are exempt from normal tax Identify and calculate exemptions relative to employment Identify other exemptions from normal tax Determine the taxation of purchased annuities

Task 17.3Identify and calculate deductions and allowances in accordance with the relevant tax legislation:

Identify and apply the various aspects of the general deduction formula to expenses and losses incurred

Identify and calculate the particular deductions and allowances






Unit 18 Prepare business tax returns


Please note that the evidence for Unit 18 can be based on the information in any of:Notes on South African Income Tax (Huxham and Haupt) – 2006 or laterSilk: South African Income Tax (Jordaan et al) – 2006 or laterA Student’s Approach to Income Tax: Business Activities (Stiglingh et al) – 2006 or later




Task 18.1

Calculate taxable income from trade and complete the business sections of IT 12 returns: Calculate taxable income for inclusion by a sole trader Apportion profits and losses (in accordance with the partnership agreements) for

inclusion by each partner Complete and submit IT 12 returns in accordance with legislation and Sars practice

Complete, submit and pay IRP 6 provisional tax returns for individuals (for first, second and voluntary third payments) in accordance with legislation and Sars practice

Be able to: Conduct consultations with Sars staff openly and constructively Give timely and constructive advice to clients on the maintenance of tax records Maintain client confidentiality at all times



Task 18.2Prepare computations of capital allowances and recoupments:

Calculate and submit returns and schedules in accordance with legislation and Sars practice

Classify expenditure on capital assets according to whether it is capital or revenue Calculate capital allowances correctly; wear & tear, initial write downs, investment

allowances, etc.


Task 18.3Adjust income or losses of companies and/or close corporations to taxable income and complete IT 14 returns in accordance with legislation and Sars practice:

Accounting profits/losses are accurately adjusted to taxable income/loss South African normal tax is correctly calculated Assessed losses and provisional payments are brought into account on the IT 12

Complete, submit and pay IRP 6 provisional tax returns for companies and/or close corporations (for first, second and voluntary third payments) in accordance with legislation and Sars practice

Calculate, submit and pay STC (Secondary Tax on Companies) tax returns and payments for companies and/or close corporations in accordance with legislation and Sars practice









Unit 19 Prepare personal tax returns


Please note that the evidence for Unit 19 can be based on the information in any of:Notes on South African Income Tax (Huxham and Haupt) – 2006 or laterSilk: South African Income Tax (Jordaan et al) – 2006 or laterA Student’s Approach to Income Tax: Natural Persons (Venter et al) – 2006 or later

Instructions to the AssessorRequest the learner to produce a minimum of two documentations each (for aspects of tasks 19.1, 19.2, 19.3 and 19.4) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. Some of this evidence is similar to that provided for units 17 and 18 and can just be cross referenced and does not have to be duplicated here.



Task 19.1

Calculate income from employment, SITE and PAYE deductions: Calculate remuneration (including fringe benefits) and distinguish between

‘remuneration’ and ‘balance of remuneration’ Distinguish between remuneration for PAYE, SDL and UIF purposes Complete and submit IT 12 and other returns in accordance with legislation and Sars

practice and deadlines




Task 19.2Prepare computations of investment, royalty and rental taxable income:

Determine the correct source of investment, royalty and rental income Accurately prepare schedules of annuities, dividends and interest received Accurately prepare schedules of royalty income received and appropriate deductions

claimed Accurately prepare schedules of rental income received, appropriate deductions

claimed and profits and losses determined The Section 6quat rebate is properly brought into account Calculate and submit returns and schedules in accordance with legislation and Sars

practice


Task 19.3Calculate the taxable portions of lump sum benefits:

Distinguish between lump sums received from the employer and lump sums received from retirement annuity, pension and provident funds

Calculate exempt amounts correctly Calculate the rating concession accurately Complete and submit returns in accordance with legislation and Sars practice




Task 19.4

Prepare personal tax returns and calculate the tax liability in accordance with legislation and Sars practice:

Calculate, record and submit schedules of income from all sources and allowable deductions

Take into account the potential impact of answers to the general questions on the IT12 tax returns

Taxable income and South African normal tax is correctly calculated The correct tax rebates are brought into account

(The completion, submission and payment of IRP 6 provisional tax returns for individuals is part of task 18.1 of unit 18)











Unit 20 Interpret and apply the laws and procedures related to taxes levied


Please note that the evidence for Unit 20 can be based on the information in any of:Notes on South African Income Tax (Huxham and Haupt) – 2006 or laterSilk: South African Income Tax (Jordaan et al) – 2006 or laterA Student’s Approach to Income Tax: Natural Persons (Venter et al) – 2006 or laterA Student’s Approach to Income Tax: Business Activities (Stiglingh et al) – 2006 or later

Instructions to the AssessorRequest the learner to produce a minimum of one documentation each (for aspects of tasks 20.1, 20.2 and 20.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. Some of the evidence provided in units 17, 18 and 19 also applies to this unit and can just be cross referenced and does not have to be duplicated here.



Task 20.1Interpret and apply the Income Tax Act:

The intentions and underlying principles of the Income Tax Act (and the Value Added Tax Act) can be highlighted in layman’s terms

The basis of taxation is interpreted and applied to individual and business entities The administration of the act is explained in relation to individual and business

entities Income exempt from tax is identified and included in tax planning

Task 20.2Keep abreast of and explain developments in the field of taxation to clients and management:



Important decisions of the courts are noted and quoted National trends in taxation are noted and explained Sars practice notes are interpreted and explained Individual and business clients are kept informed of any taxation developments that

may affect them

Task 20.3Apply the laws and procedures related to taxes levied:

Different elements of taxation are included in the tax planning process Elements relating to credit agreements, debtors’ allowances, foreign exchange profits

& losses and interest incurred & accrued are included in the tax planning process Secondary tax on companies is explained to clients; tax on distributions/dividends;

member/shareholder loans deemed to be distributions/dividends The tax planning process is described to clients Representative taxpayers are identified in terms of the Income Tax Act

Notes on the assessment of Tasks 20.1, 20.2 and 20.3In order to demonstrate competency in tasks 20.1, 20.2 and 20.3 during the assessment interview, it will be enough for the learner to provide written evidence and then be able to explain orally to the assessor:

Any two important decisions handed down by the courts during the previous 24 months and their effect on the taxation of individuals and/or business entities

Any two Sars practice notes issued during the previous 24 months and their effect on the taxation of business entities

Any two Sars practice notes issued during the previous 24 months and their effect on the taxation of individuals

However, the documentation for tasks 20.1, 20.2 and 20.3 must be provided for the assessor to review before or during the interview








Unit 21 Interpret and apply the laws and procedures relating to the duty which is levied on the estates of deceased persons


Please note that the evidence for Unit 21 can be based on the information in any of:Notes on South African Income Tax (Huxham and Haupt) – 2006 or laterSilk: South African Income Tax (Jordaan et al) – 2006 or laterA Student’s Approach to Income Tax: Natural Persons (Venter et al) – 2006 or laterEstate and Financial Planning (Abrie et al) – 5th Edition or laterDeceased Estates (Abrie et al) – 5th Edition or later

Instructions to the AssessorRequest the learner to produce a minimum of one documentation each (for aspects of tasks 21.1, 21.2 and 21.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit. If any of the evidence that has already been provided in units 17, 19, 20 and/or 24 also applies to this unit, then it can just be cross referenced here and does not have to be duplicated here.



Task 21.1

Interpret legislation related to Estate Duty: The intentions and underlying principles of the legislation can be highlighted and

explained to clients in layman’s terms The nature of an estate can be defined in accordance with related legislation Allowable deductions relating to estate planning are identified Calculation and apportionment of estate duty payable is completed accurately and in

accordance with standard procedures



Task 21.2Keep abreast of and explain developments in the field of taxation to clients and management:

Important decisions of the courts are noted and quoted National trends in estate duty and taxation are noted and explained Sars practice notes are interpreted and explained Clients are kept informed of any taxation developments that may affect them

Task 21.3Apply the laws and procedures related to taxes levied:

Estate planning is explained to clients All aspects of estate duty related legislation are consistently adhered to in the estate

planning process All the returns required by legislation are determined and adhered to for clients Elements of transfer duty and trust incomes are considered throughout the estate

planning process for clients


Any two important decisions handed down by the courts during the previous 36 months and their effect on estate duty and/or the taxation of individuals and/or trusts for estate planning purposes

Any two Sars practice notes issued during the previous 36 months and their effect on estate duty and/or the taxation of individuals and/or trusts for estate planning purposes

However, the documentations for tasks 21.1, 21.2 and 21.3 must be provided for the assessor to review before or during the interview








Unit 22 Interpret statutes and provide basic information on SA legislation as it relates to the accounting function

US ID 12983 - NQF Level 5 (10 credits)Please note that the evidence for Unit 22 can be based on the information in:Guide to Business Law (Shawn Kopel) – 3rd Edition or later

Instructions to the AssessorRequest the learner to produce a minimum of one documentation each (for aspects of tasks 22.1, 22.2. and 22.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 22.1Demonstrate a knowledge of the SA legal system:

Concept of judicial precedento Doctrine of precedent results in the modification of the law being binding by

court rulingso Past judicial decisions as a guide to future actionso Courts stand by decisions and will not disturb settled pointso Advantages – certainty and therefore decrease in litigationo Disadvantages – if past rulings are incorrect, it can be inflexible in a world of

changing circumstances Court structure

o Constitutional Court - highest Disputes over executive or administrative acts or conduct Violation of bill of rights – discrimination; dignity; privacy; religion,

etc.o High Courts – for various regions in SA

JudgesICB National Diploma: Technical Financial Accounting Learnership Page 79 of 116


Decisions of High Court binding on lower courts Appeals to Supreme Court of Appeal in Bloemfontein Decisions reported in law reports Can set case precedents

o Magistrates Court Lesser cases Magistrates Cases not reported in law reports and cannot set precedents

o Labour Courts Same status as High Court Resolve disputes between employers and employees Arbitration awards

o Small Claims Court Small values; civil only Presiding officers No legal representation

Difference between criminal and civil lawo Criminal – only state prosecutes; fines and imprisonments onlyo Civil – citizens against each other – plaintiffs and defendants – court decides

Difference between law of contract and law of delicto Contract – agreements between two or more partieso Delict – breach of general duty imposed by law; damages against the party

who neglected to carry out obligations specified by law resulting in damage to a 3rd party; e.g. failure to adhere to safety standards set by law by an employer resulting in injury to the employee

Basic principles of the SA constitutiono Defines the relationship between the state and its citizenso Supreme law of SAo Guarantees freedom, equality and dignity of its citizens; enshrined in a bill of

rights Definition and recourse against unjustifiable enrichment

o Where one party is enriched at the expense of another – e.g. a voided contract



o Mistaken payment for property not received

Task 22.2Demonstrate and ability to provide information on the SA legal system and an demonstrate understanding of the SA legal system:

Law of sale and purchaseo Sales that have to be in writing

Land property sales Credit agreements

o Contract – offer and acceptance; verbal, in writingo Transfer of ownership – on deliveryo Usury act mandating disclosure of interest and termso Limitations in finance

Suretyshipo Definition – personal surety via 3rd person; ordinary; co- or joint suretyo Valid debtor/creditor contracto In writingo Right of person giving surety against debtor

Insuranceo Indemnity – uncertain as to amount; e.g. fire or thefto Non-indemnity – specific amount agreed to occurrence of specific event, e.g.

death of spouseo Contract between insurer and insured; in writing; articles insured; type of risk;

premium; time frameo Duty of disclosure by insured for risk assessment by insurero Subrogation right of insurer to recover from relevant party after having paid

out insured Arbitration

o Dispute settled by arbitrator in place of a court – cheaper and quickero Exclusion to arbitration – matrimonial, criminal and illegal

Marketing related lawso Copyright – protection of intellectual property – literature; films; sound



recordings; softwareo Patents

Intrinsic – application of science, but not a basic scientific discovery Extrinsic – discovery is novel, not obvious, useful and correct,

documentation is in placeo Advertising practice

Misrepresentation Untrue allegations about rival goods Covered by common law

Laws of carriageo Passing of ownershipo Bill of lading passes ownership from seller to purchasero FOB & CIF agreements

FOB – purchaser responsible for insurance & freight CIF – seller responsible for insurance & freight

Financial institutionso Negotiable instruments – cheques; EFT; credit cards; letters of credit – laws

pertaining to themo Usury Acto Credit Agreement Act

Task 22.3Demonstrate a knowledge of SA statutes relating to contract and commercial law and an understanding of them

Relevant statuteso Credit Agreement Act of 1980 o Alienation of Land Act 1981 o Usury Act of 1986 o Arbitration Act of 1965 o Copyright, patents and trademarks acts o Financial Markets Control Act of 1989



o Stock Exchange Control Act of 1985 o Banks Act of 1990

o Long-term Insurance Act 52 of 1998 o Short-term Insurance Act 53 of 1998 o Second Hand Goods Acto General law amendment Act

Case precedents for interpretation of these acts Regulation of legal practitioners to ensure competent advice is given

o Apprenticeship/articleso Examso Admittance to the bar after experience and on recommendationo Ethical conduct code

Notes on the assessment of Tasks 22.1, 22.2 and 22.3In order to demonstrate competency in tasks 22.1, 22.2 and 22.3 during the assessment interview, it will be enough for the learner to provide written evidence and then be able to explain verbally to the assessor:

Any two important decisions handed down by the courts during the previous 36 months and their effect on either the insurance or banking sectors today

Any two important decisions handed down by the courts during the previous 36 months and their effect on the relationship between employers and employees today

Any two important decisions handed down by the courts during the previous 36 months and their effect on the law of contract, with special reference to protecting the rights of the consumer today

The learner must briefly highlight his/her six decisions and why they were chosen - the assessor will then select one from each category for the learner to answer questions and clarify verbally

However, the documentation for tasks 22.1, 22.2 and 22.3 (as well as the six legal decisions) must be provided for the assessor to review before or during the interview










Unit 23 Achieve personal effectiveness in an accounting environment





Task 23.1Demonstrate an ability to plan and organize own work:

Schedule and prioritizeo Long term projects

Manageable components Milestones

o Day to day routine worko Handling of queries

Use planning aidso Diaries (electronic)o Scheduleso Action planso Deadlines

Review priorities from time to timeo Reschedule and prioritize work plans

Manage difficulties in reaching deadlineso Motivate resource/backup assistance



o Keep stakeholders informed if deadlines have to be extended

Task 23.2Demonstrate an ability to establish and maintain working relationships:

Teamwork Relationships – respect for individual and other cultures Information exchange

o With 3rd partieso From 3rd parties

Appropriate communicationo In writing and verbalo Reportso E-mailso Graphing, flowchartingo Resolve communication breakdowns

Promote positive image of department and organization Respect confidentiality of data

Task 23.3Demonstrate an ability to maintain accounting files and records:

Archiving policyo Adherence to legal requirements, e.g. Sars, contractualo Filing methods according to policy

Year by year Creditors invoices, e.g. by supplier Sales, e.g. by number Wages and salaries data

o Rapid and effective traceabilityo Confidentiality

Recording and indexing



o Index agrees to archive fileso Updates in archives added to index

Destruction policyo Sars – 5 yearso Others according to company policy

IT back up datao On site and off siteo Daily, monthly, yearly

Notes on the assessment of Tasks 23.1, 23.2 and 23.3In order to demonstrate competency in tasks 23.1, 23.2 and 23.3 during the assessment interview, it will be enough for the learner to provide written evidence and then be able to clarify orally any questions from the assessorHowever, the two documentations for each of tasks 23.1, 23.2 and 23.3 must be provided for the assessor to review before or during the interview










Unit 24 Administer and wind up the estates of deceased persons

US ID 12981 - NQF Level 5 (8 credits)Please note that the evidence for Unit 24 can be based on the information in:Deceased Estates (Abrie et al) – 5th Edition or later




Task 24.1Demonstrate a working knowledge of the laws and procedures relating to the administration of estates by:

Explaining estate duty (in terms of the Estate Duty Act 45 of 1955) to an inexpert client by describing in simple terms:

The levying of estate duty What constitutes an estate The net value of an estate compared to the dutiable amount of an estate How property is valued How returns are rendered What constitutes “information, documents and things” Assessment of duty and interest Rate of estate duty

Explaining estate planning to a layman client by describing in simple terms: Marriages in community of property



Marriages out of community of property (before 1 November 1984) Marriages out of community of property (after 1 November 1984) The accrual system Intestate succession Wills and testate succession The implications of donations tax Testamentary trusts versus trusts inter vivos

Defining the rights and duties of: The Master The Executor The Administrator Guardians Tutors Curators

Task 24.2Administer and wind up the estate of a deceased person in accordance with relevant legislation and GAAP:

Assist clients in disposing of their estates through formal and legal planning processes (refer to aspects of task 24.1 above)

Administer and wind up an estate: Appointment Preliminary tasks (4 tasks as per Abrie ) Tasks after receipt of letters executorship (25 tasks as per Abrie ) Remuneration

Deal with clients in a professional manner and with due consideration of the nature of their personal and financial circumstances (refer to aspects of Unit 27)

Task 24.3



Prepare and submit executors’ accounts in accordance with relevant legislation and GAAP: Full account of the executor:

The heading The liquidation account The recapitulation statement The distribution account The income and expenditure account The fiduciary assets account The estate duty addendum The executor’s certificate

Immovable property and related matters: Description of the immovable property Value of the immovable property Bequest price Bequests subject to usufructs Usufruct as an estate asset Bare dominium as an estate A fiduciary interest

Movable property and other transactions: General - valuation and description Motor vehicles Firearms Shares Dividends on shares Insurance policies of the deceased Insurance policies of the survivor Other claims of the estate

Administration costs: General Cost of providing security



Advertising Transfer costs of immovable property Costs of liquidating assets Funeral expenses Master’s fees Executor’s remuneration

Claims against the estate: Introduction Sundry creditors The Receiver of Revenue

Books and accounts of tutors and curators: Submission of account Master’s fees Remuneration of tutors and curators Format of accounts


All the actual executor’s documents and final accounts in respect of an actual deceased estate that the learner has assisted in administering and winding up, or

If the learner has not had the opportunity at work to assist in the administration of a deceased estate, then a case study to simulate this process including preparing all the actual sample executor’s documents and final accounts

However, the documentations for each of tasks 24.1, 24.2 and 24.3 must be provided for the assessor to review before or during the interview








Unit 25 Administer and wind up insolvent estates

US ID 12982 - NQF Level 5 (8 credits)Please note that the evidence for Unit 25 can be based on the information in:Insolvent Estates (Graham, Abrie and Evans) – 5th Edition or later




Task 25.1Demonstrate an understanding of the laws and procedures relating to the administration of insolvent companies and quote the relevant legislation:

Court establishes that a company is unable to pay debts Provisional liquidator appointed to replace directors of company; liquidator

confirmed by concurrent creditors

Task 25.2Demonstrate an understanding of company liquidation procedures and quote the relevant legislation:

Recommend liquidation or judicial management Deal with debtors and accept reasonable offers to settle Admit claims from creditors Sell assets



Task 25.3Demonstrate an understanding of the duties of trustees/liquidators and quote the relevant legislation:

Recover assets Keep accounting records Examine affairs and action of company directors prior to liquidation/ judicial

management for irregular conduct and potential recovery of monies/assets Submit report to creditors: net asset value, state of accounts, director offences if

applicable Prepare legislated final accounts compliant to GAAP

o Liquidation accounto Distribution accounto Contribution account (if applicable)o Trading account (if applicable)

Publish accounts in government gazetteTask 25.4Demonstrate an understanding of judicial management and quote the relevant legislation:

Limited companies or CCs; not partnerships or private persons Confine judicial management to normal trading Endeavour to pay creditors from company profits and cash flow

Notes on the assessment of Tasks 25.1, 25.2, 25.3 and 25.4In order to demonstrate competency in tasks 25.1, 25.2, 25.3 and 25.4 during the assessment interview, it will be enough for the learner to provide written evidence and then be able to explain verbally to the assessor:

All the actual trustee’s final accounts (refer to task 25.3) in respect of an actual insolvent estate that the learner has assisted in administering and winding up, or

If the learner has not had the opportunity at work to assist in the administration of an insolvent estate, then a case study to simulate this process including preparing sample trustee’s final accounts

However, the documentations for each of tasks 25.1, 25.2, 25.3 and 25.4 must be provided for the assessor to review before or during the interview








Unit 26 Apply workplace communication skills


Instructions to the AssessorRequest the learner to produce the two documentations each for tasks 26.1 and 26.2. Then ask the learner to conduct an oral presentation of task 26.3 to you and an audience of at least one additional witness.



Task 26.1 – Interpret and respond to written communication in the workplaceProvide the assessor with two office memorandums that you have initiated and distributed in the past 12 months, and then clarify verbally:

The background to each communication What you intended to achieve by this method of communication Whether you in fact achieved what you originally set out to accomplish Given similar circumstances, would you do anything differently in the future Answer any other questions that the assessor may wish you to clarify

Task 26.2 – Produce simple written communication in the workplaceProvide the assessor with two sets of agenda plus minutes of group meetings that you have prepared and distributed in the past 12 months, and then clarify verbally:

The background to each meeting What you intended to achieve when you distributed the agenda Whether you in fact achieved what you originally set out to accomplish with the

agenda What some of the group dynamics and difficulties were that emerged at the meeting



How you set out to plan, take notes, organise and finally draft the minutes Why you decided on the particular format/layout you chose for your minutes Whether the meeting in fact achieved what the group originally set out to accomplish Whether responsibilities, actions and deadlines agreed at the meeting were achieved Given similar circumstances, would you do anything differently in the future

Task 26.3 – Produce and respond to accessible oral communication in the workplaceProvide the assessor with your plan/outline/notes for a ten minute oral presentation on any one topic that you have chosen from any one of the 28 unit standards of this learnership. Then give an oral presentation to the assessor and at least one other witness. (Before you start, explain to the assessor and the witness that your target audience is meant to be a group of newly appointed NDTFA learners and request them to act out the role/s of typical members of such an audience.) The assessor (and optionally the witness) will complete the following checklist during your presentation and provide you with feedback:

INTRODUCTION – “Tell them what you’ll tell them” Did you capture their attention? Did you highlight the objective/purpose of your presentation?

BODY – “Tell them” Was the topic explained in a logical sequence? Did you cover no more than 4 to 6 main ideas/points? Were your explanations clear and relevant? Did you use practical examples to support your explanations? Did you demonstrate that you understood the topic? Optional – Were any visual aids you used clear and appropriate?

CONCLUSION – “Tell them what you told them” Did you summarise the objective and main ideas in your conclusion? Did you check for understanding by inviting questions at the end? Did you handle the questions appropriately?

PRESENTATION SKILLS Was your voice audible and did you maintain eye contact?










Unit 27 Demonstrate an understanding of professional values and ethics


Instructions to the AssessorRequest the learner to produce a minimum of one documentation each (for aspects of tasks 27.1, 27.2 and 27.3) to enable you, as the Assessor, to evaluate the evidence supplied for this unit.



Task 27.1Demonstrate an understanding of professional standards by selecting two professions which embrace the values below. Now, in the case of each profession you selected, give one practical example for of each of the values, standards/qualities below:

Expert knowledge of subject matter Necessary resource, quality control and time take to ensure that the job is done

properly Maintaining client confidentiality Integrity in all business dealings

Task 27.2Demonstrate an understanding of professional values in an organization:

Appropriate qualifications of company officers – academic and work – refer back to the two professions you selected in 27.1 above and provide one example for each profession

Fair and ethical relationships between various officers from different departments in an organization – provide three practical examples

Fair and ethical relationships between various officers at different levels but in the same departments in an organization – provide three practical examples



Task 27.3Demonstrate an ability to identify value conflict in the workplace and then apply effective methods in dealing with them. Examples could be:

The Purchasing Manager’s desire to buy the cheapest versus the Factory Manager’s desire to buy the best quality

The Managing Director’s desire to report enhanced profits versus the Financial Director’s desire to publish a conservative income statement according to GAAP

After discussing the above two examples, the learner must provide and discuss two other examples of how conflicts of interest can be reconciled ethically






Unit 28 Analyse and communicate workplace data


Instructions to the Assessor1. Formative Assessment:Request the learner to produce a minimum of one documentation based on his/her own data and analysis for each of tasks 28.1, 28.2, 28.3, and 28.4 to enable you, as the Assessor, to evaluate the evidence supplied for this unit. This can be completed at anytime during the period of the learnership and verified as the learner’s own work by the mentor/supervisor. It must then be provided to the assessor prior to the final assessment.1. Summative (final) Assessment:A. The assessment interview should preferably take place at the learner’s own work station with his/her own hardware and software.B. Use the assessment interview for the learner to confirm unit competence at his/her own work station using data and instructions provided by

the assessor. (If this assessment is not conducted at the learner’s own work station, then first allow the learner some time to familiarise himself/herself to another PC and printer).



At the assessment interview, first present the learner with raw data obtained from a questionnaire on performance by a group of up to 20 employees – e.g. up to 10 questions with 4 answers each – e.g. ‘poor’, ‘average’, ‘good’, ‘excellent’ or ‘strongly agree’, ‘agree’ ‘disagree’, strongly disagree’ Task 28.1Ask learner to develop a report on the questionnaire using his/her own software tools, e.g. Excel, PowerPoint, other chart software, etc:

Tables Graphs Others



Task 28.2

Learner to verbally provide reasons as to what is appropriate for this particular data: Tables – can summarize in many variations Graphs – clarity of presentation Others

Task 28.3

Learner to demonstrate an ability to analyze data and draw conclusions: Summarize the number and variety of responses in the questionnaire Highlight a tendency to e.g. ‘poor or excellent’, ‘strong or mild’, etc. Draw conclusions on e.g. results, performance, product or service perception, etc.

Next present the learner with raw data of e.g. sales of up to 5 companies in the same market and product line and operating in up to 4 geographical areas

Task 28.4

Learner to select a chart or diagram analyzing market share Select a pie chart and/or other method/s Analyze and draw conclusions as to the top performer Present data, highlighting -

o Colouring of segmentso Bold lettering for top achievero Etc.








APPENDIX 1 - FORMULAS FOR VARIANCE CALCULATIONS

Material Variances Standard cost to Actual cost split:

Usage variance (Standard units – Actual units) x Standard cost

Price variance (Standard cost – Actual cost) x Actual units

Wage variances Standard cost to Actual cost split:

Efficiency variance (Standard hours – Actual hours) x Standard rate

Rate variance (Standard rate – Actual rate) x Actual hours

Variable Overhead variances Standard cost to Actual cost split:

Efficiency variance (Standard hours – Actual hours) x Standard rate

Expenditure variance (Standard rate – Actual rate) x Actual hours

Fixed overheads (Actual cost to Value transferred to finished goods) split:

Cost variance Budget cost - Actual cost

Volume variance Value transferred to Finished Goods – Budget cost





APPENDIX 2 – OVERHEAD COST ALLOCATION

Overheads in one cost centre

Production area 1

Production area 2

Production area 3

Service department 1

Service department 2



Credit out of “overheads in one cost centre”

Debit into “other cost centres”

APPENDIX 3 – CREATING A STANDARD BILL OF MATERIALS

Standard

cost ( R )

Materials 10 Kgs @ R5/Kg 50

Wages 2 hours @ R15/hour 30

Variable overheads 2 hours @ R20/hour 40

Fixed overheads 2 hours @ R15/hour 30

150

Let us say that we plan, or budget, to make 1000 units in

a month. Then the budget for the month is:

Budget cost

Materials 1000 units R 50 50,00

0

Wages R 30 30,00

0

Variable overheads R 40 40,00

0

Fixed overheads R 30 30,00

0 150,00

0



APPENDIX 4 – BUDGETARY CONTROL

Description Actual Budget Variance

Sales 20000 25000 (5000)

Cost of salesFactory materials 5000 7000 2000Factory wages 4000 5000 1000Other costs 2000 3000 1000

11000 15000 4000

Gross Profit 9000 10000 (1000)

Selling and adminSalaries 1000 2000 1000Rent 500 500 NilDepreciation 1000 1000 NilAdvertising 2000 4000 2000Consumables 500 500 Nil

5000 8000 3000

Net Profit 4000 2000 2000

( ) = unfavourable+ = favourable



APPENDIX 5 - INTERNAL AUDIT PURCHASE CYCLE

Area Risk Test Done FindingsPurchase order (PO) Supplier not approved

Systemic linkage of PO to approved supplier

Person raising order does not have authority

Access to purchase order

Review of POs

Suppliers linked

Computer system determines access and therefore only authorized users can use

Senior management review

Excessive use of “sundries” account by passing system

Works

WorksReceipt Procedure on receipting

Is the rule that nothing can be receipted without a PO

Compliance to rules Record keeping

Are all GRVs/Delivery notes matched to POs?

Exceptions found where stores allow difference in units to PO

Invoice Procedure on processing invoice

Must be matched to a PO

If no PO then invoice not processed into creditors and therefore not paid

Invoice authorization

Computer system – blocks any invoice not tied to a computerized invoice

Works

Signatures missing and creditors have still been processed

Payment Remittance Advice review

Creditors recons Invoice review

All OK



APPENDIX 6 – INDEX FOR AUDIT REPORT

1. Summary and recommendations

2. Findings and discussions of each area audited2.1. Purchase cycle2.2. Revenue cycle2.3. Balance sheet items

2.3.1. Fixed assets2.3.2. Stock2.3.3. Debtors2.3.4. Creditors2.3.5. Accruals and provisions

3. Hot spots3.1. E.g. Stock shortages from sample counts3.2. E.g. 90+ day debtors are 12% of total book3.3. E.g. Deliveries made without invoices being raised

4. Assessment4.1. Internal control4.2. Balance sheet integrity



APPENDIX 7 – FINANCIAL RATIOS

Profitability

% Gross margin Gross Margin Sales

% Net Margin Net income to ordinary shareholdersSales

ROABIT Net operating profit Total assets

ROE Net profit to ordinary shareholdersEquity

Liquidity

Current ratio Current assetsCurrent liabilities

Acid ratio Current assets – Inventory Current liabilities

Efficiency

Non- current asset turnover TurnoverNon current assets

Total asset turnover TurnoverTotal assets

Days inventory Inventory x 365 Cost of sales



Debtors collection days Debtors x 365 Credit sales

Creditors settlement days Creditors x 365Credit purchases

Financial / Geari ng

Debt ratio Total debtTotal assets

Debt to equity Long term loansShareholders’ equity

Interest cover Net profit before interest & taxInterest

Market

Return to shareholder SP (end) – SP (beg) + Dividends Share price (beginning)

Dividend yield (DY) Dividend per share Share price

Earnings yield (EY) Earnings per shareShare price (end)

Price earnings ratio (P/E) Price per shareEarnings per share

