Syllabus

This AAT Level 4 Accounting qualification covers complex accounting and finance topics and tasks, providing advanced-level financial management skills and applications. You will learn how to draft financial statements for limited companies.

Additionally, you will develop the ability to recommend accounting systems strategies, as well as construct and present complex management accounting reports and tasks. The qualification includes the following three mandatory units:

• Applied Management Accounting
• Drafting and Interpreting Financial Statements
• Internal Accounting Systems and Controls

You will also complete two optional specialist units from the following five options:

• Business Tax
• Personal Tax
• Audit and Assurance
• Cash and Financial Management
• Credit and Debt Management

Three Mandatory Units | Select all

1. Applied Management Accounting

In this unit, you will learn to understand and manage the budgetary process, gaining skills to critically evaluate organisational performance. You’ll also acquire the ability to construct budgets, identify areas of success and concern, and report these to stakeholders.
Upon completion, you will:

• Understand and implement the organisational planning process
• Utilise internal processes to enhance operational control
• Apply techniques to support short- and long-term decision-making
• Analyse and report on business performance

2. Drafting and Interpreting Financial Statements

This unit will teach you how to draft financial statements for single limited companies, as well as prepare consolidated financial statements for groups of companies. You will gain a strong understanding of international accounting standards and how to apply them in drafting financial statements.

The focus will be on preparing financial statements for limited companies, along with acquiring knowledge of regulatory and conceptual frameworks. Upon completion, you will:

• Understand financial reporting frameworks
• Know how to draft consolidated financial statements
• Be able to prepare statutory financial statements for limited companies
• Use ratio analysis to interpret financial statements

3. Internal Accounting Systems and Controls

You will gain knowledge of the accounting function's roles and responsibilities, learning how to use financial reports to inform key stakeholders' decisions. Additionally, you’ll learn to review accounting systems to identify weaknesses.

You will also understand how to recommend strategies to mitigate future operational weaknesses, and how to apply various analytical methods to evaluate changes and their implications for operating procedures. Upon completion, you will:

• Understand the roles and responsibilities within an organisation’s accounting function
• Evaluate internal control systems
• Assess an organisation’s accounting systems and procedures
• Understand the impact of technology on accounting systems
• Recommend improvements to an organisation’s accounting systems

Five Optional Specialist Units | Select any 2 units

1. Business Tax

This unit develops your understanding of UK business taxation. You will learn to compute taxes for sole traders, partnerships, and limited companies, while also maintaining ethical standards.

You’ll also learn how to identify tax planning opportunities. Upon completion, you will:

• Prepare tax computations for sole traders and partnerships
• Prepare tax computations for limited companies
• Compute taxes for the sale of capital assets by limited companies
• Understand the administrative requirements of the UK tax regime
• Understand the tax implications of business disposals
• Identify tax relief and tax planning opportunities, alongside understanding the agent's taxation reporting responsibilities to HMRC

2. Personal Tax

This unit will equip you with fundamental knowledge of the three most common taxes affecting UK taxpayers: income, capital gains, and inheritance. You will learn to prepare the computational aspects of these taxes and understand how taxpayers can legally minimise their overall tax liability.

Upon completion, you will:

• Understand the principles and rules that underpin taxation systems
• Calculate total income for UK taxpayers
• Compute income tax and National Insurance contributions (NICs) for UK taxpayers
• Calculate capital gains tax for UK taxpayers
• Understand the principles of inheritance tax

3. Audit and Assurance

In this unit, you will gain an understanding of audit and assurance principles and concepts, alongside the audit process from planning and risk assessment to final completion. You will also learn about the legal and professional rules governing audit and assurance services.

Additionally, you’ll acquire skills in producing audit reports and gain a practical perspective on audit and assurance, focusing on the application of audit and assurance techniques to current systems. Upon completion, you will:

• Demonstrate understanding of the audit and assurance framework
• Recognise the importance of professional ethics
• Evaluate the audit and assurance planning process
• Develop skills in reviewing and reporting findings

4. Cash and Financial Management

This unit will teach you the importance of cash management within an organisation. You’ll gain knowledge and skills to make informed decisions on financing and investment in line with organisational policies and external regulations.

You will learn how to eliminate non-cash items and use various techniques to prepare cash budgets. You’ll also learn to identify current and future cash transactions from a range of sources. Upon completion, you will:

• Forecast cash receipts and payments
• Prepare cash budgets and monitor cash flows
• Understand the importance of managing finance and liquidity
• Understand how to raise finance and investment funds
• Recognise how regulations and organisational policies influence decisions in managing cash and finance

5. Credit and Debt Management

This unit will equip you with the skills to manage debt effectively, providing knowledge on applying credit control systems principles. You will also learn techniques for assessing credit risk and gain an understanding of relevant policies, legislation, and ethical principles.

Upon completion, you will:

• Understand relevant legislation and contract law impacting the credit control environment
• Use information to assess credit risk and grant credit in compliance with organisational policies and procedures
• Understand credit control processes for managing and collecting debts within an organisation
• Learn different debt collection techniques available.

Remote learning delivery options

Khpalwaak's distance learning delivery is perfect if you prefer independent study at your own pace, allowing you to work towards your qualification on a timeline that suits you. This flexible approach fits seamlessly into your daily life.

We will provide you with study materials, assignments, and practice resources aligned with AAT requirements. Our dedicated tutors and support staff will assist you throughout your distance learning experience via our online student portal.

Assessments

This qualification is completed through 3 mandatory unit assessments and 2 optional units out of 5, with 100% of the qualification assessed by externally marked exams. All assessments for this qualification are:

• Computer-based
• Set and marked by the AAT
• Time-limited
• Conducted under controlled conditions
• Scheduled by training providers or assessment venues

Assessment Schedule

You can book your assessments when you're ready. You can sit for the assessments once you have completed the course, as they are available at specific times throughout the year.

Grading

To successfully complete the qualification, you must pass 3 mandatory unit assessments and 2 optional out of 5 assessments. The AAT will award grades based on your overall performance across the qualification, rather than on individual units. The final grades are:

- Distinction
- Merit
- Pass

Results

You will receive your results in up to 6 weeks for all subjects, which can be accessed through your AAT portal under the "See Your Progress" section.

Resits

You should only take an assessment when you are fully prepared to pass. There are no restrictions on the number of resits you can take, giving you the flexibility to retake assessments if needed. If you do not pass an assessment, you will have the opportunity to discuss your results with your tutor and prepare for a retake accordingly.