Advanced Diploma in Accountancy

Purpose

The primary purpose of this qualification is to provide learners and certain categories of graduates with a focused, systematic and specialised understanding of current theory and practice in Accounting and related fields of study. They will be able to demonstrate the ability to integrate and apply the relevant accounting theory, principles, concepts, practices and techniques as embodied in any one of the specialised fields of Professional Accounting and Internal Auditing.

Rationale

The Advanced Diploma in Accountancy will replace the Bachelor of Technology (BTech) in Cost and Management Accounting and Internal Auditing qualifications. The new Advanced Diploma in Accountancy builds on the Diploma in Accountancy (NQF Exit Level 6) offered by the Faculty, and its design of a generic core of accountancy-related modules, together with specialisation streams in Professional Accounting and Internal Auditing. This qualification will cater for the consistently demonstrated need in the labour market for mid-level Internal Auditors and Professional Accountants. A confirmation of the need for the qualification can be found in the increasing demand over a number of years for the current BTech qualification. The Advanced Diploma is nevertheless not merely a BTech Degree with a new name it has been completely redesigned based on the curriculum.

The Advanced Diploma in Accountancy is vocationally focused. Learners will thus be able to work as Financial Accountants, Management Accountants, Internal Auditors and Taxation Consultants.

The qualification will prepare learners for Postgraduate study and for those learners specialising in internal auditing, provide an articulation route to the Postgraduate Diploma in Internal Auditing at Level 8. Those learners choosing the Professional Accounting option will be able to, after successfully completing three years of training and passing the qualifying examination of the South African Institute of Professional Accountants (SAIPA), qualify as Professional Accountants.

Recognition of Prior Learning (RPL)

An applicant's experience in an accounting environment will be considered and competence in the relevant fields of accountancy, including numeracy, computer and communications competence, will be assessed in order to determine whether exemption from modules may be given. Institutional RPL policy will be applied.

The Faculty policy, derived from the institutional policy, requires that each applicant be assessed on an individual basis. The applicant will approach the Head of Department (HOD) of the relevant specialisation regarding the Faculty RPL policy and process. Applicants who qualify to pursue this option will complete the standard application form upon which the HOD will nominate an assessor to be approved by the Faculty Management Committee (FMC). The appointed assessor will meet with the applicant to explain the RPL assessment process, the specific assessment criteria and the type and format of evidence(s) required. The outcome of the RPL process, including written reports by the assessor and a recommendation regarding status recognition and admission to the respective specialisation stream will be documented by the HOD concerned and the final decision regarding the RPL status of the applicant will be presented to the FMC. The FMC secretary will communicate the FMC decision to the Faculty Officer, who in turn will communicate the outcome to the applicant.

Entry Requirements

The minimum entrance requirements are

• A relevant 360-Credit Diploma in Accountancy at Level 6 or an appropriate qualification.

This qualification comprises compulsory modules at Level 7, totalling 120 Credits.

Compulsory Module (12 Credits Each); 96 Credits

• Financial Accounting.
• Financial Reporting I.
• Financial Reporting II.
• Risk Management and Assurance.
• Management Accounting.
• Financial Management.
• Commercial Law: Corporate Procedures.
• Introduction to Public Sector Finance.

Electives (12 Credits Each) (Select Group 1 OR Group 2), 24 Credits

Group 1

• Taxation: Non-Residents.
• Taxation: Administration.

Group 2

• Internal Auditing.
• Information Systems Governance and Control.

1. Integrate and apply the relevant accounting theory, principles, concepts, practices and techniques as embodied in any one of the following specialised, elective fields:

> Professional Accounting.

> Internal Auditing.

1. Apply the principles of financial accounting and reporting in complex scenarios.
2. Perform review engagements and evaluate and respond appropriately to business risks.
3. Apply relevant principles and techniques of management and cost accounting.
4. Apply relevant principles and techniques of financial management.
5. Apply the basic principles of corporate procedures and governance in terms of the Companies Act 71 of 2008.
6. Explain and apply the theoretical and practical components of the public sector environment and the public sector accounting framework.
7. Apply and integrate the nature and scope of Information Systems audit engagements.

Associated Assessment Criteria for Exit Level Outcome 1

• Identify key terms, concepts, facts, principles, rules and theories within an accounting, taxation or internal auditing context.
• Analyse selected problems and resolve it within a taxation or internal auditing context.
• Utilise an appropriate technology across specialised areas of internal auditing or taxation.
• Apply research skills in an integrated manner.
• Apply financial accounting, resource and process management skills ethically and accountably.

Associated Assessment Criteria for Exit Level Outcome 2

• Collect, analyse, process and critically review the data for effective financial decision-making.
• Identify and define different elements of financial statements in terms of the conceptual framework and apply them to selected cases.
• Map the regulatory environment for financial reporting with specific reference to IFRS, IRFRS for SMEs, the JSE, the Companies Act 71 of 2008 and the King 3 report.
• Apply principles, practices and procedures of group accounting.
• Draft Purposeful financial statements/reports related to:

> Presentation of financial statements (IAS1).

> Property, plant and equipment (IAS16).

> Investment property (IAS40).

> Intangible assets (IAS38).

> Borrowing costs (IAS23).

> Non-current assets held for sale and discontinued operations (IFRS5).

> Revenue (IAS18).

> Changes in accounting policies, accounting estimates and prior period errors (IAS8).

> Taxation and deferred tax (IAS12).

> Financial instruments (IAS32, IAS39, IFRS7 and IFRS9).

> Foreign transactions and entities (IAS21).

> Employee benefits (IAS19).

> Government grants and assistance (IAS20).

> Provisions and contingencies (IAS38).

> Financial analysis

• Report findings, decisions, recommendations and relevant information coherently, reliably and in an appropriate format and register or style.

Associated Assessment Criteria for Exit Level Outcome 3

• Establish and perform terms of review engagements and draft reports.
• Draw a clear distinction between review engagements and audit engagements.
• Identify and apply analytical procedures to assess risk of material misstatement in financial statements.
• Evaluate irregularities that have arisen during review engagements and deal with them in an appropriate and accountable manner.
• Apply the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise risk management (ERM) framework to assess the risk profile of organisations.
• Apply the COSO Control Framework to evaluate the internal control systems of organisations.

Associated Assessment Criteria for Exit Level Outcome 4

• Demonstrate by means of a case study analysis the value of the application of cost and management accounting principles and techniques to an organisation's value chain.
• Apply the theory of constraints to determine and explain the constraints for effective business performance.
• Apply Margin of error, certainty-equivalent and diagrammatic approaches and techniques to analyse risk and uncertainty in business decision-making.
• Apply a system of benchmarking and the balanced scorecard approach to evaluate the operational performance of a business.
• Identify appropriate managerial actions to improve business performance proposed by means of the process of business re-engineering.
• Compute the target cost of a new product or service.
• Demonstrate an improvement in operational performance by comparing activity-based costing to traditional costing.

Associated Assessment Criteria for Exit Level Outcome 5

• Critically review the principal findings of the King 3 Report on corporate governance and apply them to specific financial management scenarios.
• Distinguish and apply the industry comparative and time-series analysis to specific financial management contexts.
• Calculate and evaluate profitability, liquidity, activity, solvency and securities market ratios and propose possible corrective actions.
• Calculate the cost of debt and preference share capital by means of the application of relevant formulae.
• Identify and analyse business and financial risks by means of the various risk indicators and statistical measurements.
• Evaluate leasing and alternative sources of finance using discounted cash flows.
• Identify and assess factors that affect the dividend decision.
• Analyse and respond to typical ethical challenges faced by financial managers.

Associated Assessment Criteria for Exit Level Outcome 6

• Investigate, analyse, describe and evaluate by means of a case study approach the following items in terms of ACT 71 of 2008.

> The governance of companies relating to shareholders and directors.

> The application of the provisions of the Act in relation to business rescue and compromises.

> The procedural steps for the winding up of solvent companies and the deregistration of companies.

> The principles of remedies and enforcement as stipulated by the Act.

> The need for enhanced accountability and transparency by the company secretary, auditors and audit committee.

> The consequences of offences and miscellaneous matters such as civil actions and complaints.

> The conversion of a close corporation to a company.

> The amendment laws to close corporations in the context of the emerging corporate landscape.

Associated Assessment Criteria for Exit Level Outcome 7

• Discuss, assess and apply the theory of the public sector accounting framework and legislation to various public sector accounting cases and contexts.
• Analyse and differentiate the private sector and public sector budgeting, management processes and accounting frameworks.
• Analyse the Public Finance Management Act and Municipal Finance Management Act to identify and describe the accountabilities and responsibilities of accounting officers and other public sector officials and to evaluate their application in specific cases.

Associated Assessment Criteria for Exit Level Outcome 8

• Explain and apply the COBIT governance framework in the context of information systems audit engagements.
• Analyse and review selected databases with reference to data structures and principles of Database Management Systems (DBMS).
• Explain and assess selected risk and control activities applicable to the management of databases.
• Describe and apply Computer Assisted Auditing Tools and Techniques (CAATTs) in selected audit engagements.

Integrated Assessment

The method of assessment may vary according to the module purpose, its subject matter and the teaching and learning approach adopted. Some modules are theoretically oriented; others require a more practical, hands-on approach. This will be reflected in the assessment procedures.

The assessment tasks will require students to demonstrate the ability to

• Identify, collect and integrate information effectively.
• Identify and analyse complex, rapidly changing situations.
• Take action appropriate to the context and justify such courses of action.
• Present information in a written mode.

Formative assessment will be based on a combination of assignments during the semester, ranging from informal and formal tests and progress evaluations during contact sessions. The results of these assessments will be used to provide feedback to students and lecturers in order to facilitate improved learning.

The outcomes of the formal assignments and tests will contribute to a cumulative class mark as per pre-arrangement with the students.

In the formal assignments and tests, and in the respective semester examinations (summative assessment) students will have to demonstrate the ability to communicate and integrate knowledge of the key issues, highlighted in the respective modules, and identify and resolve typical problems in the subfields as indicated. This will require critical and creative thinking as well as the ability to make practical applications of the learning outcomes as indicated in the module descriptors.

The assessment topics and tasks, their format and criteria will be set out in the student module guides made available at the beginning of each semester.