Occupational Standards for Accounting Technicians

in the ECSAFA Region

In 2003, ECSAFA carried out a survey of accounting technician qualifications in the ECSAFA
region. In view of the diversity disclosed by the research, ECSAFA agreed to work towards
the harmonisation of technician qualifications in the region.

In May 2005, ECSAFA Council approved these occupational standards for accounting
technicians as the basis for harmonisation following an extensive consultation exercise that
included a workshop involving 22 delegates from 10 countries. ECSAFA is grateful to
everyone involved in this process for their input and feedback.

The occupational standards are an agreed statement of the skills, knowledge and
understanding required by accounting technicians to perform their roles efficiently and
effectively.

ECSAFA member bodies are encouraged to use the occupational standards for accounting
technicians as:

• a benchmark for mapping qualifications and identifying gaps

• a reference point when accounting technician qualifications are reviewed and updated

• a basis for training programmes, curriculum development and work experience

requirements

• a model for developing new qualifications.

ECSAFA acknowledges the support of the AAT and ACCA in facilitating the consultation
process and publishing and distributing the occupational standards.

Butler Phirie
President
ECSAFA
September 2005

ECSAFA is the Eastern Central and Southern African Federation of Accountants. Any
comments on this document should be addressed to:-
Chief Executive Officer
2nd Floor, Hughes Building
Kenyatta Avenue
P O Box 42423 – 00100
Nairobi, Kenya
E-mail [email protected]
Website www.ecsafa.org

©These standards are largely drawn from the Accounting Standards of the UK based
Accountancy Occupational Standards Group. They are subject to UK crown copyright
regulations and, as such, may not be reproduced for commercial, profit-making purposes.
However if the contents of this publication are to be used for education and training or other
non-commercial purposes, permission is hereby given for the document, or any part thereof,
to be copied or reproduced.

The Professional Ethics standards are the intellectual property of the UK based AAT:
Association of Accounting Technicians, © 15 March 2005
Contents

Introduction to the Accounting Standards..........................................................................2

Unit 1 Recording Income and Receipts.................................................................3

Element 1.1 Process documents relating to goods and services supplied .........................5
Element 1.2 Process receipts .......................................................................................7
Unit 2 Making and Recording Payments ...............................................................8
Element 2.1 Process documents relating to goods and services received ....................... 10
Element 2.2 Process payments .................................................................................. 11
Unit 3 Preparing Ledger Balances and an Initial Trial Balance ............................. 12
Element 3.1 Balance bank transactions....................................................................... 14
Element 3.2 Prepare ledger balances and control accounts........................................... 15
Element 3.3 Draft an initial trial balance ..................................................................... 16
Unit 4 Supplying Information for Management Control ........................................ 17
Element 4.1 Code and extract information .................................................................. 19
Element 4.2 Provide comparisons on costs and income ................................................ 20
Unit 5 Maintaining Financial Records and Preparing Accounts............................... 21
Element 5.1 Maintaining records relating to capital acquisition and disposal................... 23
Element 5.2 Collecting and collating information for the preparation of final accounts..... 24
Element 5.3 Preparing the final accounts of sole traders and partnerships ..................... 25
Unit 6 Recording and Evaluating Costs and Revenues ........................................ 26
Element 6.1 Record and analyse information relating to direct costs and revenues ......... 28
Element 6.2 Record and analyse information relating to the allocation,
apportionment and absorption of overhead costs ...................................... 29
Element 6.3 Prepare and evaluate estimates of costs and revenues .............................. 30
Unit 7 Preparing Reports and Returns ............................................................... 31
Element 7.1 Prepare and present periodic performance reports .................................... 33
Element 7.2 Prepare reports and returns for outside agencies ...................................... 34
Element 7.3 Prepare Sales Tax returns ....................................................................... 35
Unit 8 Contributing to the Management of Performance and the Enhancement
of Value ................................................................................................ 36
Element 8.1 Collect, analyse and disseminate information about costs .......................... 38
Element 8.2 Monitor performance and make recommendations to enhance value........... 39
Unit 9 Contributing to the Planning and Control of Resources .............................. 40
Element 9.1 Prepare forecasts of income and expenditure............................................ 42
Element 9.2 Prepare draft budget proposals ............................................................... 43
Element 9.3 Monitor the performance of responsibility centres against budgets ............. 44
Unit 10 Managing Systems and People in the Accounting Environment ................... 45
Element 10.1 Manage people within the accounting environment ................................... 47
Element 10.2 Identify opportunities for improving the effectiveness of an accounting
system .................................................................................................. 48
Unit 11 Drafting Financial Statements (Accounting Practice, Industry and
Commerce)............................................................................................ 49
Element 11.1 Draft limited company financial statements............................................... 51
Element 11.2 Interpret limited company financial statements ......................................... 52
Unit 15 Operating a Cash Management and Credit Control System ......................... 53
Element 15.1 Monitor and control cash receipts and payments ....................................... 55
Element 15.2 Manage cash balances ............................................................................ 56
Element 15.3 Grant credit ........................................................................................... 57
Element 15.4 Monitor and control the collection of debts ............................................... 58
Unit 16 The contents in this unit have now been incorporated within other
units, but the original unit numbers have been maintained to avoid
confusion. ............................................................................................. 59

Unit 17 Implementing Audit Procedures............................................................... 60

Element 17.1 Contribute to the planning of an audit assignment .................................... 62
Element 17.2 Contribute to the conduct of an audit assignment ..................................... 63
Element 17.3 Prepare related draft reports ................................................................... 64
Unit 18 Preparing Business Taxation Computations............................................... 65
Element 18.1 Prepare capital allowances computations.................................................. 67
Element 18.2 Compute assessable business income ...................................................... 68
Element 18.3 This element has been removed, but the original numbering remains in
place to avoid confusion ......................................................................... 69
Element 18.4 Prepare Company/Corporation Tax computations ...................................... 70
Unit 19 Preparing Personal Taxation Computations ............................................... 71
Element 19.1 Calculate income from employment ......................................................... 73
Element 19.2 Calculate property and investment income ............................................... 74
Element 19.3 Prepare Income Tax computations........................................................... 75
Unit 20 The contents in this unit have been incorporated within other units, but
the original unit numbers have been maintained to avoid confusion............ 76

Unit 21 Working With Computers ........................................................................ 77

Element 21.1 Use computer systems and software ........................................................ 78
Element 21.2 Maintain the security of data ................................................................... 79
Unit 32 Professional Ethics.................................................................................. 80
Element 32.1 Apply general principles and procedures for ethical compliance
expected within the accounting sector...................................................... 81
Element 32.2 Develop, maintain and apply ethics in employer/employee situations .......... 83
Element 32.3 Develop, maintain and apply ethics in public practice ................................ 84
2

Introduction to the Accounting Standards

This document sets out the Occupational Standards as at April 2004 for Accounting
Technicians in the ECSAFA region.

What is an accounting technician?

An accounting technician is a skilled person who undertakes many of the day to day functions
in the accounting environment. Accounting technicians may work alone in smaller
organisations but in larger organisations usually work in support of senior accountants.
Accounting technicians generally work at an operational level, making decisions appropriate
to their role, with guidance from a senior accountant as appropriate.

Accounting technicians work in all types of organisations, including commerce and industry,
government, public services and private practice. Accounting technicians may progress to
higher level jobs or qualifications once they have completed their technician level training.

What are the Standards?

These occupational standards set out the competences which Accounting Technicians need to
be able to perform effectively in the workplace. They specify what Accounting Technicians
should know and do to undertake particular tasks. They are a common standard for the
accounting sector.

Using the standards

The standards speak to the candidate or jobholder

The standards address the candidate or jobholder directly. This gives the standards a feeling
of immediacy and relevance and helps individuals to engage with the standards.

The standards use clear language

The outcomes the individual is expected to achieve (the Performance Criteria) are expressed
in active language, making them easy to understand.

The links between Performance Criteria and Range are clearer

The links between the outcomes to be achieved (the Performance Criteria) and the
circumstances in which competence needs to be demonstrated (the Range) have been made
clear. This has been done by highlighting words in the Performance Criteria which are then
elaborated upon in the Range.

The use of Information Technology is integral to the standards

To reflect current and emerging practice in the workplace, the use of Information Technology
has been integrated wherever possible into the standards. In keeping with workplace
requirements, candidates are required to demonstrate their understanding of manual book-
keeping methods as well as showing that they can use computerised methods. Unit 21
covers those generic aspects of using IT that would otherwise have to be repeated many
times in individual units. It is expected that evidence of competence in Unit 21 can be
provided by performance within other units in the Accounting standards.
3

Unit 1 Recording Income and Receipts

Unit Commentary

This unit relates to the role of invoicing and receiving payments. The first element involves
you in manually preparing and coding invoices and credit notes for goods and services
supplied, and entering the details in both a manual and computerised accounting system.
The element also requires you to prepare statements of account manually, and as
computerised output. It is expected that you will communicate with customers politely and
effectively, in response to their queries or when chasing payments.

The second element is concerned with checking and recording receipts in a manual and
computerised system. The element requires you to deal with receipts in a variety of different
forms and, therefore, to complete paying-in documents where necessary. You are required
to deal with unusual features relating to wrongly completed cheques, out-of-date cheques,
debit or credit card limits exceeded and disagreement with supporting documentation.
Where these features are outside of your own area of responsibility the element expects you
to refer them to an appropriate person.

Elements contained within this unit are:

Element: 1.1 Process documents relating to goods and services supplied

Element: 1.2 Process receipts

Knowledge and Understanding

To perform this unit effectively you will need to know and understand:

The Business Environment

1. Types of business transactions and documents involved (Element 1.1)
2. Basic law relating to contract law and Sale of Goods Act (Elements 1.1 & 1.2)
3. Document retention policies (Elements 1.1 & 1.2)
4. General principles of Sales Tax (Element 1.1)
5. Types of discounts (Element 1.1)
6. Cheques, including crossings and endorsements (Element 1.2)
7. The use of banking documentation (Element 1.2)
8. Automated payments (Element 1.2)
9. Credit limits (Elements 1.1 & 1.2)
10. [Basic law relating to data protection] (Element 1.2)

Accounting Methods
11. Double entry bookkeeping, including balancing accounts (Elements 1.1 & 1.2)
12. Accounting for receipts from credit customers and customers without credit accounts
(Elements 1.1 & 1.2)
13. Methods of coding data (Element 1.1)
14. Operation of manual accounting systems (Elements 1.1 & 1.2)
15. Operation of computerised accounting systems, including output (Elements 1.1 & 1.2)
16. The use of the cash book and petty cash book as part of the double entry system or as
books of prime entry (Elements 1.1 & 1.2)
17. Batch control (Elements 1.1 & 1.2)
18. Relationship between accounting system and the ledger (Elements 1.1 & 1.2)
19. Credit card procedures (Element 1.2)
20. Methods of handling and storing money, including the security aspects (Element 1.2)
21. Petty cash procedures: imprest and non imprest methods; analysis (Elements 1.1 & 1.2)
4

Unit 1 Recording Income and Receipts

Knowledge and Understanding, continued

The Organisation
22. Relevant understanding of the organisation’s accounting systems and administrative
systems and procedures (Elements 1.1 & 1.2)
23. The nature of the organisation’s business transactions (Elements 1.1 & 1.2)
24. Organisational procedures for authorisation and coding of sales invoices (Element 1.1)
25. Organisational procedures for filing source documents (Elements 1.1 & 1.2)
26. House style for correspondence (Element 1.1)
27. Banking and personal security procedures (Element 1.2)
5

Unit 1 Recording Income and Receipts

Element 1.1 Process documents relating to goods and services
supplied

Performance Criteria

In order to perform this element successfully you need to:

A. Accurately prepare invoices and credit notes in accordance with organisational

requirements and check against source documents
B. Ensure invoices and credit notes are correctly authorised before being sent to customers
C. Ensure invoices and credit notes are correctly coded
D. Enter invoices and credit notes into books of prime entry according to organisational
procedures
E. Enter invoices and credit notes in the appropriate ledgers
F. Produce statements of account for despatch to debtors
G. Communicate politely and effectively with customers regarding accounts, using the
relevant information from the aged debtors analysis

Range Statement

Performance in this element relates to the following contexts:

Invoices and credit notes:

• Pricing
• Price extensions
• Discounts
• Sales Tax

Source documents:
• Quotations
• Purchase orders
• Delivery notes
• Sales orders

Coded:
• Manual systems
• Computerised systems

Books of prime entry:

• Manual sales daybook
• Manual sales returns daybook
• Relevant computerised records

Ledgers:
• Manual general ledger
• Manual subsidiary ledger
• Computerised ledgers
6

Range Statement, continued

Statements:
• Manual
• Computerised

Communicate:
• Respond to queries
• Chase payments
7

Unit 1 Recording Income and Receipts

Element 1.2 Process receipts

Performance Criteria

In order to perform this element successfully you need to:

A Check receipts against relevant supporting information

B Enter receipts in appropriate accounting records
C Prepare paying-in documents and reconcile to relevant records
D Identify unusual features and either resolve or refer to the appropriate person

Range Statement

Performance in this element relates to the following contexts:

Receipts:
• Cash
• Cheques
• An automated payment

Accounting records:
• Manual cash book
• Manual general ledger and subsidiary ledger
• Computerised records

Unusual features:
• Wrongly completed cheques
• Out-of-date cheques
• Credit and debit card limits exceeded
• Disagreement with supporting documentation
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Association of Accounting Technicians, © 15 March 2005

Unit 21 Working With Computers

Unit Commentary

This unit is about your ability to use a computer system safely and effectively. For the first
element, you will need to demonstrate that you are fully aware of your responsibilities when
using a computer system and the software packages you will need. For the second element
you will be required to show an understanding of the need to keep data confidential and
secure.

Elements contained within this unit are:

Element 21.1 Use computer systems and software

Element 21.2 Maintain the security of data

Knowledge and Understanding

To perform this unit effectively you will need to know and understand:

General Information Technology

1. The importance of carrying out simple visual safety checks on hardware and correct
powering up and shutting down procedures (Element 21.1)
2. The purpose of passwords (Element 21.2)
3. How to save, transfer and print documents (Element 21.1)
4. How to take back up copies (Element 21.1)
5. Causes of difficulties, necessary files which have been damaged or deleted, printer
problems, hardware problems (Element 21.1)
6. Different types of risk, viruses, confidentiality (Element 21.2)
7. Relevant security and legal regulations, data protection legislation, copyright, VDU
legislation, health and safety regulations, retention of documents (Element 21.2)

The Organisation
8. Location of hardware, software and back up copies (Elements 21.1 & 21.2)
9. Location of information sources (Element 21.1)
10. The organisation’s procedures for changing passwords, and making back ups
(Elements 21.1)
11. House style for presentation of documents (Element 21.1)
12. Organisational security policies (Elements 21.2)
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Unit 21 Working With Computers

Element 21.1 Use computer systems and software

Performance Criteria

In order to perform this element successfully you need to:

A. Perform initial visual safety checks and power up the computer system
B. Use passwords to gain access to the computer system where limitations on access to
data is required
C. Access, save and print data files and exit from relevant software
D. Use appropriate file names and save work
E. Back up work carried out on a computer system to suitable storage media at regular
intervals
F. Close down the computer without damaging the computer system
G. Seek immediate assistance when difficulties occur

Range Statement

Performance in this element relates to the following contexts:

• Visual safety checks:

• Hardware components
• Plugs
• Cables
• Interfaces

Computer system:
• Stand alone PC
• Networked system

Passwords:
• System
• Software
•
Difficulties:
• Hardware failure
• Software failure
• Corruption of data
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Unit 21 Working With Computers

Element 21.2 Maintain the security of data

Performance Criteria

In order to perform this element successfully you need to:

A. Ensure passwords are kept secret and changed at appropriate times

B. Ensure computer hardware and program disks are kept securely located
C. Identify potential risks to data from different sources and take steps to resolve or
minimise them
D. Maintain security and confidentiality of data at all times
E. Understand and implement relevant legal regulations

Range Statement

Performance in this element relates to the following contexts:

Appropriate times:
• On a regular basis
• If disclosure is suspected

Potential risks:
• Corruption
• Loss
• Illegal copying

Sources:
• Internal
• External
• Viruses
• Poor storage facilities
• Theft

Security:
• Back up copies
• Secure storage

Confidentiality:
• Passwords

Legal regulations:
• Data protection legislation
• VDU regulations
• Health and safety
• Document retention
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Association of Accounting Technicians, © 15 March 2005

Unit 32 Professional Ethics

Unit Commentary

There is no specific assessed unit relating exclusively to ethics within the AAT Accounting
Qualification NVQ/SVQ pathway. The AAT has, however, provided guidance to its members
clearly identifying expected and acceptable behaviour in relation to ethics. As the unit is new
there are few comparisons to be drawn or indicative mapping to be made against current
units.

The Professional Ethics unit requires the candidate to provide evidence of their ability to
demonstrate the ethical duties and responsibilities necessary and the knowledge required to
underpin ethical practice in this sector.

The unit has been developed using the existing AAT Guidelines on Professional Ethics (based
upon principles approved by the International Federation of Accountants, IFAC). From this
basis, the key components have been extracted and assimilated to reflect the most critical
requirements for professional conduct and competence in this field. The Professional Ethics
unit is not designed to replicate the ethical requirements detailed by
the professional sponsoring bodies of the AAT. However, it provides a sound basis for
progression in application of ethics and related knowledge and understanding required of
students at the higher level.

In addition to the specific learning outcomes for this unit, the ethics subject matter forms an
ideal basis for developing the candidate’s communication skills, at a level sufficient to
provide a smoother progression for candidates from level 3 to level 4. The AAT National
Archive Forum identified recently that candidates’ communication skills were an area that
could benefit from further enhancement to provide a smoother transition to level 4. This unit
also provides an ideal forum to develop critical decision making skills.

The unit can be taken at either level 3 or level 4.

Elements contained within this unit are:

Element: 32.1 Apply general principles and procedures for ethical compliance expected
within the accounting sector

Element: 32.2 Develop, maintain and apply ethics in employer / employee situations

Element: 32.3 Develop, maintain and apply ethics in public practice

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Association of Accounting Technicians, © 15 March 2005

Unit 32 Professional Ethics

Element 32.1 Apply general principles and procedures for ethical
compliance expected within the accounting sector

Performance Criteria

In order to perform this element successfully you need to:

A. Identify and apply the fundamental principles of honesty and integrity.

B. Highlight situations within accounting work that require objectivity and fairness, and
where judgements and actions could compromise personal or organisations integrity and
reputation.
C. Recognise the principles of effective Continuing Professional Development (CPD) to
maintain professional and technical competence (to include sources of advice and
information outside formal learning).
D. Recognise and explain why certain types of information should be regarded as
confidential.
E. Identify circumstances when it would be appropriate to disclose confidential information.
F. Identify the key issues which ensure accounting work is performed within the scope of
professional ethics guidance.
G. Make critical decisions to identify appropriate ethical behaviour when interacting with
others in a variety of circumstances.
H. Refer and seek advice from relevant sources for issues beyond own competence.
I. Describe the types of contractual obligations you would have in providing services to
clients to include due care and carrying out assignments within a reasonable timescale.
J. To discuss, agree and resolve ethical conflicts.

Range Statement

Performance in this element relates to the following contexts:

Fundamental principles:
• Integrity
• Objectivity
• Professional and technical competence
• Due care
• Confidentiality
• Professional behaviour

Sources of information for CPD:

• The internet
• Professional journals
• Professional body network opportunities
• Organisational/company training updates

Accounting work:
• Provision of services as self-employed
• Preparation of financial statements for client
or own organisation
• Performance of internal audit services
• Provision of financial management services
• Provision of taxation services
• Sales Tax calculations
• Acceptance of gifts
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Range Statement, continued

Confidential information & disclosure:

• Basic duties
• Usage
• Non disclosure and disclosure (when
expressly authorised by client, or legal,
regulatory or professional body

Contractual:
• Nature of service/contract (to include performance and responsibilities by whom, for whom,
by when, fees, due care, ownership and lien)

Communication and personal skills:

• Communication with peers, superiors, clients, external bodies and agencies, and including
specifically skills of negotiation, critical decision making, discussion, letter and report writing

Organisational:
• Tax authority
• Client organisations
• Employer
• Professional bodies
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Association of Accounting Technicians, © 15 March 2005

Unit 32 Professional Ethics

Element 32.2 Develop, maintain and apply ethics in
employer/employee situations

Performance Criteria

In order to perform this element successfully you need to:

A. Describe the type of culture within organisations which supports and promotes high
ethical values and helps resolve any conflict of loyalties.
B. Resolve conflicting loyalties where an employer may ask you to perform tasks which are
illegal, unethical or against the rules or standards of the accounting profession.
C. Follow appropriate procedures where you believe an employer has or will commit an act
which you believe to be illegal or unethical.
D. Respond appropriately to confines of your own accounting experience.

Range Statement

Performance in this element relates to the following contexts:

Cultural values:
• Openness
• Trust
• Integrity
• Respect
• Empowerment
• Accountability

Acts (illegal or unethical):

• Fraud
• Other illegal activity
• Falsification of records
• Supply of information or statements which are misleading, false, or deceptive
• Client influence
• Employer influence
• Actions of delegated staff

Procedures:
• Seek confidential independent or professional counselling and advice
• Keep accurate records of meetings/discussions
• Persuade employer not to perpetrate action
• Advise client of ethical and legal considerations
• ‘Enforced’ resignation

Performance in this element relates to professional conduct with: peers, employers, superiors
and subordinates.
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Unit 32 Professional Ethics

Element 32.3 Develop, maintain and apply ethics in public practice

Performance Criteria

In order to perform this element successfully you need to:

A. Prepare appropriate letters of engagement and develop and implement a fair fees policy
for your accounting services.
B. Identify and explain how specific situations can undermine professional independence.
C. Prepare a policy to be followed for handling clients monies.
D. Maintain independence and objectivity and impartiality in a range of circumstances.
E. Make recommendations for a policy statement in relation to a client wishing to change
accountant.
F. Identify scope of professional liability.
G. Prepare clear guidelines which should be followed to advertise your account services in a
professional and ethical manner.
H. Give advice to clients on retention of books, working papers and other documents.

Range Statement

Performance in this element relates to the following contexts:

Specific situations & Professional independence:

• Simultaneous engagement in other related business
• Ownership or interest in client’s companies
• Personal and family relationships
• Agency

Performance in this element can relate to the following contexts of Self

Employment:
• Accounting Services Work assignments such as taxation, reporting, accounting services, and
advertising of such services

Recommendations to policy on performing recurring work for a client:

• Which has or is being currently undertaken by another professional advisor, in relation to
instructions by another advisor who is taking work over that you are currently performing for
a client
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Unit 32 Professional Ethics

Knowledge and Understanding

To perform this unit effectively you will need to know and understand:

1. The guidelines of your accountancy body – including professional liability and negligence.
2. A principle based approach to professional ethics.
3. Legal considerations: UK or own country – with particular consideration of
- The common types of fraud (see also 10.2),
- Ownership of records,
- Lien: retention of books and other documentation.