AAT Diploma for Accounting Level 4

AAT Level 4 Diploma for Accounting Technicians

Course Details

Completing the AAT (Association of Accounting Technicians) Level 4 Diploma is the final leg of attaining the full Accounting Technician status.  Obtaining the level of Accounting Technician will vastly improve your prospects and widens the range of accounting roles available to you.  Some of the roles included in this could be corporate finance, insolvency, forensic accounting and more.

The AAT Level 4 Diploma has been designed to allow you to focus on specialist study units enabling you to choose specific areas of accountancy if you wish.  There are a total of 8 study units on the AAT Diploma which can be purchased and studied separately.  You will be able to learn an extensive variety of skills including how to develop management competence, drafting statements for limited companies and performing complicated management accounting tasks.

In order to complete the Level 4 AAT Diploma you will need to successfully complete 6 of the 8 units available.  The AAT Level 4 Diploma for Accounting Technicians qualification is equivalent to the first year of an honours degree.

*Please note that all students must be registered with AAT before they begin their studies.  If you have a criminal record or have been made bankrupt the AAT may not accept you.

Qualifications

Upon successful completion of the course you will be accredited with the Association of Accounting Technicians (AAT) Level 4 Diploma for Accounting Technicians.

This course will also enable you to progress to chartered accountancy or study for a degree and allows entry to and/or exemptions from the following:

 

• The Institute of Chartered Accountants of Scotland (ICAS)
• The Association of Chartered Certified Accountants (ACCA)
• The Institute of Chartered Accountants in England and Wales (ICAEW)
• The Chartered Institute of Management Accountants (CIMA)
• Chartered Institute of Public Finance and Accountancy (CIPFA)
• Many degree courses at universities and other higher education (HE) institutions

The Association of Accounting Technicians (AAT) has over 100,000 members worldwide and is recognised as the leading body in the Accounting industry. The advanced certificate is sure to stand you out from the crowd and assist you in working in highly regarded accounting roles.

Study Plan

The AAT Level 4 Diploma has 8 study units which can be studied separately.  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

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

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

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

 

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

Study Details

Budgeting

The Budgeting unit will introduce you to drafting and comprehending the standards of budgeting.  By the end of the budgeting study unit you will have learnt how to prepare forecasts and understand how economic environment changes affect budgeting.

 

• Exams – 2 mock exams
• Study Hours – 100 Hours
• Number of Units – 1
• Assignments – 1 assignment and 6 self tests

Financial Statements

The AAT Level 4 Diploma Financial Statements unit will teach you how to draft financial statements of limited companies, sole traders and partnerships and help increase your knowledge of what detail should be incorporated in financial statements.  It will also show you how to present financial statements and the principles in financial reports.

 

• Exams – None
• Study Hours – 130 hours
• Number of Units – 1
• Assignments – 5

Financial Performance

AAT Financial Performance unit is very much tailored towards management accounting techniques.  The Financial Performance Unit will teach managers the methods of controlling, planning and measuring performance.  The study unit also focuses on the identification and analysis of costs, forecasting and monitoring organisation performance.

 

• Exams – 2 mock exams
• Study Hours – 100 hours
• Number of Units – 1
• Assignments – 1 assignment and 7 self tests

Internal Control Systems

The Internal Control Systems of the AAT Level 4 Diploma is very much about people management within the accounting arena and recognising opportunities to develop the efficiency of an accounting system.  This unit will focus on many subject areas including the tools used to run accounts functions, the management structure and fraud amongst other things.

 

• Exams – 1 mock simulation
• Study Hours – 100 hours
• Number of Units – 1
• Assignments – 1 assignment and 5 self tests 

External Auditing (launch late 2010)

The External Auditing unit of the AAT Level 4 Diploma will add to your existing familiarity of the audit procedure and will prepare you to work on audit files.  The core areas of this unit will concentrate on planning and conducting an audit as well as preparing the related draft report.

 

• Study Hours – 100 hours
• Number of Units – 1

Business Tax (launch December 2010)

The focus of the Business Tax unit is on taxation for businesses.  You will be taught how to prepare business taxation computations and how to calculate tax liabilities for limited companies, sole traders and partnerships.  During your studies you will learn the procedures involved with preparing computations for capital allowances, capital gains and corporation tax along with computing assessable organisation income.

 

• Study Hours – 80 hours
• Number of Units – 1

Personal Tax (launch December 2010)

The focus of the Personal Tax unit is on taxation for individuals.  You will be taught how to prepare trading profit for a sole trader on a self assessment income tax return.  During your studies you will learn the procedures involved with calculating income for employment, property and investments along with preparing income tax and capital gains tax computations.

 

• Study Hours – 100 hours
• Number of Units – 1

 

Credit Management and Control (launch late 2010)

The focus of the Credit Management and Control study unit is to teach you the skills of credit and debt management.  You will be trained to provide efficient debt management advice, learn the legislation and procedures involved in providing credit advice and acquire the skills to grant credit.

 

• Exams – 2 mock exams
• Study Hours – 80 hours
• Number of Units – 1
• Assignments – 1 assignment and 7 self tests

Careers

Gaining the Level 4 Diploma can open a whole world of opportunities for you.  You could be the financial expert within a smaller company or hold a key role within a financial team at a larger firm.  Alternatively, you could work for yourself and offer expert accountancy services to others.

Roles that may be available to you include a Finance Officer or Finance Team Leader amongst many others.  Roles such as this can expect to earn £28,000 to £35,000* per annum.

*Source: Trovit

Other example roles include:

Assistant Account Team Manager                                 Head of Purchase Ledger
£28,000                                                                                  £35,000
Source: Trovit                                                                        Source: Trovit