AAT Level 4 Syllabus
The AAT level 4 syllabus is the final stage of the AAT qualification. It consists of four compulsory units and four optional units of which candidates must choose and complete two. The compulsory units within the level 4, Diploma in Accounting module are:
• Financial Statements
• Financial Performance
• Internal Control and Accounting Systems
Optional units in the level 4 AAT Diploma in Accounting:
• Credit Management and Control
• Personal Tax
• Business Tax
• External Auditing
Detailed AAT Level 4 Syllabus
Detailed list of Compulsory units:
• Regulatory framework that forms the basis for financial reporting
• Main elements of a published set of accounts
• Basic principles of consolidation
• Drafting statutory and consolidated financial statements
• Using ratio analysis to interpret financial statements.
• The external financial reporting environment for limited companies and groups which need to publish accounts
• Preparing a variety of financial statements and effectively identifying an organisation’s current financial position.
• Justification for Budgets and how they are prepared – candidates learn how to prepare revenue forecasts and a number of other budgets for various circumstances
• An explanation of budgeting procedures that aid organisational planning and aspects of control
• Preparing budgets and analysing variances in order to make recommendations to improve organisational performance
• Managing and monitoring financial performance using a range of techniques for expenditure information analysis and supporting the decision making, control and planning processes of managers
• The presentation of performance reports to management
Internal Control and Accounting Systems
• The role of internal control within an organisation is examined as well as the different approaches to making informed recommendations on system improvements or implementation.
• The communication of these recommendations to management and the identification of the potential impact of these changes on the system its users
Optional modules, candidates must choose TWO out of four
Credit management and control
• Principles of credit management within a business or organisation, advising on the approval of credit, deciding credit limits, collection of monies owed and the likelihood of receipt of payment based on past payment trends
• Advising on debt management issues and additional ways to minimise risk to the organisation.
• How Income Tax and Capital Gains Tax is applied to income.
• Calculating Income Tax liabilities and income originating from various sources.
• Applying relevant allowances, deductions and reliefs to calculate and prepare accurate Income Tax computations.
• Preparing tax returns for sole traders, partnerships and incorporated businesses. Learn to recognise trading profits, make adjustments and apply current legislation.
• Legislative and professional requirements and how one should act as part of a professional audit team in the planning, and conducting of an external audit.
• Drafting working papers and a final audit report.
AAT Level 4 Past Papers
A range of past papers and questions are available as study resources for the level 4 AAT Diploma in Accounting although student registration is necessary first. Just choose your preferred training provider and decide whether you want to study full or part-time.