AAT Level 4 Diploma

Association of Accounting Technicians - AAT

AAT Level 4 Diploma in Accounting

Study Plan

The AAT Level 4 Diploma has 4 mandatory study units and 4 optional units (of which 2 must be chosen). Each study unit covers different aspects of accounting topics. Please see below for details of which topics and subjects each study unit will cover:

Budgets

Drafting statutory financial statements for a limited company	Understanding the impact of internal and external business factors on budgets
Understanding why budgets are used	Preparing forecasts and budgets
Understanding the skills needed in budget preparation	Using budgetary control to ensure organisational targets are met
Understanding the impact that changes in the economic environment will have on budgets

Financial Statements

Draft limited company financial statements from appropriate information

Performance criteria

Financial statements comply with relevant accounting standards

Identify and implement adjustments

Prepare and interpret a limited company cash flow

Confidentiality procedures

Interpret limited company financial statements

The general purpose of financial statements

Unusual features or significant issues within financial statements of limited companies

Relationships between the elements within financial statements

Conclusions within financial statements

Present issues, interpretations and conclusions

Financial Performance

Developing forecasts and budgets of demand, turnover, expenditure, resources to be consumed and capital expenditure

Identifying other information, such as competitors' prices and market trends, from external sources

Using forecasts to prepare budgets for income and expenditure

Monitoring and analysing costs against trends and standards

Finding the major sources of information on prices, costs and availability

Identifying and calculating performance indicators

Internal Control Systems

External regulations affecting accounting practices	Common types of fraud
The implications of fraud	Methods of work planning and scheduling
Personal time management techniques	Methods of measuring cost-effectiveness
Methods of fraud detection within accounting systems	Techniques for influencing and negotiating with decision makers & resource holders
Principles of supervision and delegation	Principles of creating effective inter-personal relationships, team building and staff motivation
The impact on an accounting system of organisational structure, Management Information Systems, administrative systems and procedures and the nature of its business transactions	The organisation's business and its relationships with external stakeholders
The purpose, structure and organisation of the accounting system and its inter-relation with other internal functions	The control of resources by individuals within the organisation

External Auditing (Mandatory)

Reviewing systems	Identifying control objectives
Risk assessment	Understanding control weaknesses
Verifying account balances	Confidentiality and security procedures
Consultation with appropriate personnel	Conducting tests and recording the results
Recording assets and liabilities	Identifying audit errors
Examining and assessing the IT environment	Producing clear and concise reports in accordance with organisation procedures

Business Tax (Mandatory)

Classifying expenditure on capital assets	Checking against current tax law and HMRC
Adjustments for tax purposes	Partnership profit and losses
National Insurance contributions	Identify and valuing chargeable assets
Share disposal	Calculating chargeable gains and allowable losses
Applying reliefs, deferrals and exemptions	Adjusting for trading profit and losses, capital allowances, investment income and capital gains
Calculating corporation tax	Identifying and setting off income tax deductions and credits

Personal Tax (Mandatory)

Preparing emoluments	Adding employment income to a tax return
Preparing schedules on dividends and interest	Determining profits and losses form property
Applying deductions and reliefs and claiming loss set offs	Listing general, savings, and dividend income
Updating the tax return with property and investment income	Calculating and deducting charges and personal allowances
Calculating income tax payable	Identify and value disposed of chargeable personal assets
Identify shares disposed of by individuals	Calculating chargeable gains and allowable losses

Credit Management and Control (Mandatory)

Contract law and breach of contract

Data protection legislation

Bankruptcy and insolvency

Techniques and methods of credit control

Understanding how legislation impacts upon credit control

Request Information on AAT Level 4 Diploma

Draft limited company financial statements from appropriate information	Performance criteria
Financial statements comply with relevant accounting standards	Identify and implement adjustments
Prepare and interpret a limited company cash flow	Confidentiality procedures
Interpret limited company financial statements	The general purpose of financial statements
Unusual features or significant issues within financial statements of limited companies	Relationships between the elements within financial statements
Conclusions within financial statements	Present issues, interpretations and conclusions

Developing forecasts and budgets of demand, turnover, expenditure, resources to be consumed and capital expenditure	Identifying other information, such as competitors' prices and market trends, from external sources
Using forecasts to prepare budgets for income and expenditure	Monitoring and analysing costs against trends and standards
Finding the major sources of information on prices, costs and availability	Identifying and calculating performance indicators

Contract law and breach of contract	Data protection legislation
Bankruptcy and insolvency	Techniques and methods of credit control
Understanding how legislation impacts upon credit control