Level 4 Syllabus

Level 4 Diploma in Accounting

This covers the skills necessary for a ‘finance team leader’ role: complex management accounting tasks; general management skills; drafting financial statements; specialisation in specific subject areas.

Financial Statements (FSTM) Computer based test To develop students’ knowledge so that they are able to understand the regulatory and conceptual frameworks which underpin the preparation of limited company financial statements. To develop students’ knowledge and skills so that they able to understand and apply International Financial Reporting Standards and relevant legislation in the drafting of financial statements of single limited companies and consolidated financial statements to develop students’ knowledge and skills so that they are able to analyse and interpret the financial statements of limited companies using ratio analysis.
Budgeting (BDGT) Computer based test Prepare forecasts of income and expenditure. Prepare budgets. Assess the impact of internal and external factors on budgets. Use budgetary control to improve organisational performance. Report budgetary information to management in a clear and appropriate format.
Financial performance (FPFM) Computer based test Collate and analyse cost information from various sources. Be able to use standard costing to analyse performance. Be able to use appropriate techniques to measure performance and manage costs. Make suggestions for improving financial performance by monitoring and analysing information. Prepare performance reports for management
Internal control and accounting systems (ISYS) AAT e-delivered project or case study Understand the role of accounting within the organisation. Understand the importance and use of internal control systems. Evaluate the accounting system and identify areas for improvement. Conduct an ethical evaluation of the accounting systems. Conduct a sustainability evaluation of the accounting system. Make recommendations to improve the accounting system.


Level 4 Optional units – you will be required to choose 2 from the following:

Cash management (CSHM) Computer based test Use statistical techniques and financial information to prepare forecasts of income and expenditure. Prepare cash budgets. Use cash budgets to monitor cash flow within the organisation. Manage cash balances effectively. Raise finance in accordance with organisational requirements. Invest surplus funds observing organisational policies.
Credit control (CRDC) Workplace evidence or Computer based test Understand relevant legislation that impacts upon credit management. Use information from a variety of sources to grant credit to customers within organisational guidelines. Use a range of techniques for the collection of debts. Monitor and control the supply of credit.
Personal tax (PTAX) Computer based test Demonstrate an understanding of legislation and procedures relating to personal tax. Understand the current taxation principles of income from employment, investment income, property income and capital gains tax. Calculate income from all sources and apply relevant allowances, deductions and reliefs to prepare accurate income tax computations. Calculate the income tax liability of an individual. Calculate the capital gains tax liability of an individual. Prepare accurate computations and complete sections of relevant tax returns.
Business tax (BTAX) Computer based test Understand the impact of legislation and legislative changes. Understand tax law and its implications for Unincorporated businesses Understand tax law and its implications for incorporated businesses. Understand how to treat capital assets prepare the relevant pages of a tax return for an Unincorporated business and accurately produce the computations to support this. Correctly complete corporation tax returns with all supporting computations for incorporated businesses.
External auditing (EXTA) Computer based test In the External Auditing unit students develop an understanding of the legal and regulatory requirements relating to external audit engagements and how the external audit process meets those requirements. Students should demonstrate a knowledge of the concept of assurance, internal controls within accounting systems, the different types of audit evidence and the use of interview and listening skills. Students should understand the role of materiality and risk assessment in the external audit process.