Aat_Unit_10_Managing_Systems_and_People_in_the_Accounting_Environment

Unit 10 – Managing systems and people in the accounting environment Unit commentary This unit is about your role as a manager in the accounting environment, whether you are a line manager or are managing a particular function or project. The first element requires you to show that you co-ordinate work activities effectively within the accounting environment. This includes setting realistic objectives, targets and deadlines and managing people in such a way that these can be met. You also need to show that you prepare contingency plans to cover a variety of problems that can reduce the likelihood of meeting objectives, targets and deadlines. The second element is about identifying weaknesses in an accounting system and making recommendations to rectify these. This involves identifying potential for misuse of a system, whether this is accidental (errors) or deliberate (fraud). You are also required to update the system, for example to comply with legislative requirements, and to check that the output is correct after the system has been updated. Elements contained within this unit Element 10.1 – Manage people within the accounting environment. Element 10.2 – Identify opportunities for improving the effectiveness of an accounting system. Knowledge and understanding To perform this unit effectively you will need to know and understand the following areas. 1. The business environment • The range of external regulations affecting accounting practice (Element 10.2). • Common types of fraud (Element 10.2). • The implications of fraud (Element 10.2). 2. Management techniques • Methods for scheduling and planning work (Element 10.1). • Techniques for managing your own time effectively (Element 10.1). • Methods of measuring cost-effectiveness (Element 10.2). • Methods of detecting fraud within accounting systems (Element 10.2). • Techniques for influencing and negotiating with decision-makers and controllers of resources (Element 10.1). • Techniques for reviewing recommendations through cost-benefit analysis (Element 10.2). 3. Management principles and theory • Principles of supervision and delegation (Element 10.1). • Principles of fostering effective working relationships, building teams and motivating staff (Element 10.1). 4. The organisation • How the accounting systems of an organisation are affected by its organisational structure, its Management Information Systems, its administrative systems and procedures and the nature of its business transactions (Elements 10.1 & 10.2). • The overview of the organisation’s business and its critical external relationships (customers/clients, suppliers, etc.) (Elements 10.1 & 10.2). • The purpose, structure and organisation of the accounting function and its relationships with other functions within the organisation (Element 10.2). • Who controls the supply of resources (equipment, materials, information and people) within the organisation (Element 10.1). Element 10.1 Manage people within the accounting environment Performance criteria In order to perform this element successfully you need to: |Performance criteria |Complete' Y/N | |Plan work activities to make the optimum use of resources and to ensure that work is completed within agreed | | |timescales. | | |Review the competence of individuals undertaking work activities and arrange the necessary training. | | |Prepare, in collaboration with management, contingency plans to meet possible emergencies. | | |Communicate work methods and schedules to colleagues in ways that help them to understand what is expected of| | |them. | | |Monitor work activities sufficiently closely to ensure that quality standards are being met. | | |Co-ordinate work activities effectively and in accordance with work plans and contingency plans. | | |Encourage colleagues to report to you promptly any problems and queries that are beyond their authority or | | |expertise to resolve, and resolve these where they are within your authority and expertise | | |Refer problems and queries to the appropriate person where resolution is beyond your authority or expertise. | | Range statement Performance in this element relates to the following contexts: Contingency plans allowing for: • Fully functioning computer system not being available • Staff absence • Changes in work patterns and demands Element 10.2 Identify opportunities for improving the effectiveness of an accounting system Performance criteria In order to perform this element successfully you need to: |Performance criteria |Complete' Y/N | |Identify weaknesses and potential for improvements to the accounting system and consider their impact on the | | |operation of the organisation. | | |Identify potential areas of fraud arising from control avoidance within the accounting system and grade the | | |risk. | | |Review methods of operating regularly in respect of their cost-effectiveness, reliability and speed. | | |Make recommendations to the appropriate person in a clear, easily understood format. | | |Ensure recommendations are supported by a clear rationale which includes an explanation of any assumption | | |made. | | |Explain to those affected the implications of recommended changes in terms of financial costs and benefits. | | Range statement Performance in this element relates to the following contexts: Weaknesses • Potential for errors • Exposure to possible fraud Accounting system • Manual • Computerised Recommendations • Oral • Written Changes affecting systems • External regulations • Organisational policies and procedures