AAT Professional Diploma in Accounting qualification (Level 4)
The Level 4 qualification comprises four mandatory units and two which can be chosen from a list of options.
Management Accounting: Budgeting
This unit focuses on management accounting, specifically the budgeting of an organisation. It covers planning, coordinating and controlling activities and costs of a business. The unit delivers knowledge on performance improvement and skills to measure this through the use of target-setting, the planning process and results analysis. Students will perform a number of skills such as constructing written communications, applying standard costing techniques and the completion of statistical and variance analysis to monitor performance.
Management Account: Decision and Control
This unit focuses on management accounting principles and concepts. Students will develop their knowledge of cost behaviour, cost analysis, standard costing and contribution. A range of performance analysis skills will be required, including ‘what-if’ analysis and key performance indicators. Students will be required to recognise appropriate techniques for decision-making and analysis and when to use them.
Financial Statements of Limited Companies
This unit focuses on drafting the financial statements of single limited companies and consolidated financial statements for groups of companies. Students will develop their knowledge of international accounting standards in order to apply the prescribed methods to the construction, analysis and interpretation of the financial statements. Students will also gain an understanding of regulatory and conceptual frameworks and be expected to calculate and analyse ratios.
Accounting Systems and Controls (Professional Diploma Synoptic Assessment)
In this unit, students will evaluate an accounting system and analyse potential weaknesses and their effects on the organisation. Students will develop an understanding of fraud and the associated risks with reference to professional ethics. Students will need to be able to suggest appropriate recommendations and analyse the costs and benefits of these suggestions.
Accounting Systems and Controls is the main unit assessed throughout the scenario set out in the Professional Diploma Synoptic Assessment. However, in addition to this, the other three mandatory units will be linked to the scenario and assessed in breadth during this exam.
Two optional units must be selected from the following:
This unit is focused on UK taxation for businesses inclusive of sole traders, partnerships and limited companies. Students will be expected to prepare tax computations and returns and demonstrate a range of skills to account for the taxation of capital expenditure, adjustment to profits, profit allocation and the calculation of national insurance contributions for the self-employed. Knowledge regarding HMRC authority and the implications of late or incorrect filing will also be covered.
This unit focuses on the taxation of UK taxpayers and covers income tax, national insurance, capital gains tax and inheritance tax. Students will develop their knowledge of three core areas of income; employment income, investment income and property income and the deductions and reliefs that apply to these. Tax liability calculation is covered as is the knowledge of how to minimise tax liability legally. Students are required to advise on this and will do so through development of their written communication.
This unit focuses on the external audit of financial statements of an organisation. Students will develop a knowledge of the audit process, regulatory requirements and the ethical consequences surrounding these. Analysis of internal controls and associated weaknesses is covered and students will be expected to be able to provide an evaluation of the findings of an audit in accordance with International Standards on Auditing (ISA).
Cash and Treasury Management
This unit studies the movement of cash within a business and requires students to be able to make decisions in order to improve the wealth of an organisation. Cash and Treasury Management focuses on management accounting for a business and decision-making. It is concerned with controlling cash, raising finance and investment. Students will learn how to monitor the cash flow of a business.
This unit looks at the credit control function of a business and students can expect to learn about relevant legislation, contract law, ethics and policies relating to this. Students will learn credit checking techniques to assess risk and will be expected to demonstrate an understanding of performance measures. Students will gain knowledge on topics such as debt collection, credit monitoring and discounts in order to evaluate credit control and liquidity management.
Solvo Vir offers Level 4 Diploma as part of the Level 4 Accountancy Apprenticeship.