Level 7 Diploma in Accounting and Finance

LEVEL 7 DIPLOMA IN ACCOUNTING
AND FINANCE (RQF)
Credits : 120
Duration : 6 months / 9 months
Londan School of Planning and Management

www.LSPM.org.uk
admissions@lspm.org.uk
2
About London School of Planning and Management
London School of Planning and Management (LSPM) assasaasas
LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

3
Table of Contents
Qualification Objectives .......................................................................................................................... 3

Quality, Standards and Recognitions ..................................................................................................... 3
Regulatory Information ........................................................................................................................... 3
Equivalence ............................................................................................................................................ 3
Programme Structure ............................................................................................................................. 4
About the Units ....................................................................................................................................... 4
Entry Requirements ............................................................................................................................... 4
Progression ............................................................................................................................................ 4
Delivering the Qualifications................................................................................................................... 4
Assessment and Verification .................................................................................................................. 5
Unit Specifications .................................................................................................................................. 6
Unit 01: Investment Analysis .............................................................................................................. 7
Unit 02: Corporate Social Responsibility and Governance ............................................................... 11
Unit 03: Global Finance and Strategy ............................................................................................... 14
Unit 05: Strategic Audit ..................................................................................................................... 18
Unit 04: Strategic Financial Management………………………………………………………………...21
Unit 06: Corporate Reporting ............................................................................................................ 24

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QUALIFICATION OBJECTIVES
The Level 7 Diploma in Accounting and Finance qualification is designed for learners with relevant
experience, and/or qualifications the knowledge and skills they need work in the fields of accounting
and finance. For those learners that have prior experience in accounting and finance and who also
possess a professional qualification, the pathway through this programme will develop their
professional competence.
The qualification enables learners to develop knowledge and understanding of accounting and
finance within wider organisational contexts in addition to applying technical and specialist skills to a
range of contexts within which they operate.
QUALITY, STANDARDS AND RECOGNITIONS

Qualifications are approved and regulated by Ofqual (Office of Qualifications and Examinations
Regulation). Visit register of Regulated Qualifications.
Qualifications Wales is a Welsh Government Sponsored Body but independent from the Welsh
Government in relation to its qualifications functions for which is directly accountable to the National
Assembly for Wales. It is responsible for the regulation of awarding bodies and the quality assurance
of qualifications in Wales. It is charged with ensuring that qualifications in Wales are fit for purpose,
that the qualification system in Wales is efficient and effective and that there is public confidence in
qualifications in Wales. Visit Qualifications Wales for more information.
This qualification offers progression arrangements with several UK universities that acknowledge the
ability of learners after studying Level 3-7 qualifications to be considered for advanced entry into
corresponding degree year/top up and master’s/top-up programmes.
REGULATORY INFORMATION
Qualification Title Level 7 Diploma in Accounting and Finance (RQF)
Duration 1 Year
Total Credit Value 120 Credits
Total Qualification Time (TQT) 1200 Hrs
Overall Grading Type Pass
Assessment Methods Coursework
Language of Study English
EQUIVALENCE
This Level 7 qualification according to the Regulated Qualifications Framework (RQF) which consists
of 6 mandatory units worth total 120 credits and equivalent to Master’s Degrees in the UK.

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PROGRAMME STRUCTURE
The qualification consists of 6 units all of which are mandatory totalling 120 credits in order to
achieve the full Diploma qualification.
Unit Ref. No. Mandatory Units Credit TQT

R/615/3236 Investment Analysis 20 200 hours
Y/615/3237 Corporate Social Responsibility and Governance 20 200 hours
D/615/3238 Global Finance and Strategy 20 200 hours
H/615/3242 Strategic Financial Management 20 200 hours
Y/615/3240 Strategic Audit 20 200 hours
D/615/3241 Corporate Reporting 20 200 hours
ABOUT THE UNITS

Credit value is defined as being the number of credits that may be awarded to a Learner for
the successful achievement of the learning outcomes of a unit.
The RQF credit value of the unit will remain constant in all contexts, regardless of the
assessment method used or the qualification(s) to which it contributes. Learners will only be
awarded credits for the successful completion of whole units. (One credit is awarded for those
learning outcomes achievable in 10 hours of learning time).
ENTRY REQUIREMENTS
Learner must fulfil at least one of the following criteria to be allowed entry to the qualification:

Possession of an honours degree in related subject or UK level 6 diploma or an
equivalent overseas qualification

Mature learners (over 21) with relevant work experience.

If you are not from the United Kingdom or a majority English-speaking country, you must
provide evidence that you are competent in English language.
PROGRESSION
Successful completion of the Level 7 Diploma Finance and Accounting (RQF)
enables learners to progress into or within employment and/or continue their
further study towards UK Masters top up qualifications. This qualification enables
learners to top up their qualification with number of UK universities that
acknowledges the ability of learners after studying Level 3-7 qualifications to be
considered for advanced entry into corresponding degree year/top up and
masters/top-up programmes.
DELIVERING THE QUALIFICATIONS

This qualification is delivered 100% online by London School of Planning and Management
using its online learning platform.

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ASSESSMENT AND VERIFICATION

All units within this qualification are internally assessed by the centre and verified by OTHM. The
qualifications are criterion referenced, based on the achievement of all the specified learning
outcomes.
To achieve a ‘pass’ for a unit, a learner must have successfully passed all the assessment criteria
for that unit.

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Unit Specifications

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UNIT 01: INVESTMENT ANALYSIS
Unit Reference Number R/615/3236

Unit Title Investment Analysis
Unit Level 7
Number of Credits 20
Guided Learning Hours (GLH) 175
Learner Self Study / Prep 25
Mandatory / Optional Mandatory
Unit Grading Structure Pass
Unit Aims
The aim of this unit is to allow learners to gain a working knowledge and understanding of investment
theories and market equilibrium models. Study of this unit will allow learners to perform bond
valuations and evaluate current performance. On completion of this unit, learners should have gained
sufficient skills to critically assess the cause and effect of the impact of developments on the world’s
capital market. Learners will be able to make effective recommendations for further improvement.
Learning Outcomes and Assessment Criteria
Learning Outcomes Assessment Criteria

1. Understand different types of 1.1 Identify types of securities and associated concepts
securities 1.2 Evaluate key characteristics of each type of security
2. Understand the regulation of 2.1 Identify regulations and procedures used in trading
security trading and new securities
issues in world markets 2.2 Analyse the policies and procedures relating to the
trading of securities and new issues in world markets
2.3 Review issues in global markets including the London
Stock Exchange
3. Be able to apply principles of 3.1 Explain the principles of investment theory
investment theory, securities 3.2 Evaluate the use of securities
and market analysis 3.3 Critically review the underlying concepts of market
analysis and efficiency
4. Understand the principles of 4.1 Identify indirect and direct taxes
taxation 4.2 Analyse the characteristics of indirect and direct taxes
4.3 Assess the principles of taxation and their implications
for relevant stakeholders.
5. Understand the laws and 5.1 Identify laws and regulations controlling the financial
regulations controlling the services industry
financial services industry 5.2 Evaluate a range of risk mitigation methods used in
investments
5.3 Analyse practical risk mitigation methods
6. Be able to plan, manage and 6.1 Identify client portfolios in accordance with customer
review client portfolios profiles
6.2 Make justified recommendations of appropriate types of
savings and investments
6.3 Critically review issues relating to portfolio management

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Indicative Contents
Learning Outcome 1
Bonds

Types and characteristics


Pricing bonds
Bond yields


Term Structure of Interest Rates
Theories of term structure

Bond risk - types and measurement.
Equities
 Types and characteristics

 Measures of equity performance
 Equity pricing
 Risk
 Equity evaluation
Securities
 Types and characteristics

 Synthetic securities - swaps, bundled and unbundled securities.
Learning Outcome 2
Derivatives
 Description
 Evaluation
Forward contracts
 Description
 Evaluation
Financial futures
 Characteristics
 Operation of futures markets
 Types of financial future
 Pricing financial futures
Financial options
 Characteristics
 Operation of options markets
 Types of option
 Option pricing
 Warrants
 Convertible

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Learning Outcome 3
Motives for investment
 Risk & return

 Pricing securities
 Market efficiency
Money Market Investments
 Markets & investors

 Securities quoted on a yield basis
 Securities quoted on a discount basis
Learning Outcome 4
Taxation
Definitions and characteristics of:
 Income tax
 Capital gains tax
 Inheritance
 Corporation tax
 Sales tax
 Value Added Tax (VAT)
 Progressive v Regressive taxation
Principles of Taxation
 Principle of simplicity
 Principle of convenience
 Principle of certainty
 Principle of equality
Learning Outcome 5
Hedging
 Nature & objectives

 Hedging risk on individual equities
 Hedging market risk on equity portfolios
 Hedging interest rate risk
Speculation

 Speculation using futures
 Speculation using options
Arbitrage

 Arbitrage using futures
 Arbitrage using options
Learning Outcome 6
Portfolio Management
 Functions of portfolio management

 Active and passive portfolio management
 Portfolio performance measurement

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Managing Client Portfolios


The Efficient Markets Hypothesis


The Capital Asset Pricing Model

The Arbitrage Pricing Model
Implications for investment strategy

Portfolio management
Assessment
To achieve this unit, learners must achieve the learning outcomes and meet the standards specified
by all assessment criteria for the unit.
Learning Outcomes Assessment criteria Type of assessment Word count (approx.

to be met to be covered length of coursework)
1-6 All under LO 1-6 15 minute presentation and 4500
accompanying Report
Resources
Textbooks

Reilly & Brown, Investment Analysis & Portfolio Management, 10th ED, 2009.


Cheng,L, Advances in Investment Analysis and Portfolio Management, 9th ED, 2002.
Graham Mott. Kogan Page, Accounting for non-accountants: a manual for managers and
students. 9th ed., 2013.

Peter Howells and Keith Bain, Financial markets and institutions. 5th ed. Harlow, Essex:
Pearson Education, 2007.

Marc Bungerberd, et al., International investment law: a handbook. Oxford: Hart Publishing,
2015.

Edwin J Elton et al. New York: John Wiley, Modern portfolio theory and investment
analysis: international student version. 8th ed., 2011.

Frank Fabozzi. London, Wiley, The basics of finance: an introduction to financial markets,
business finance, and portfolio management. 2010.
Journals

Journal of International Financial Markets


The Hedge Fund Journal
Journal of Asset Management
Websites
Management Study Guide:

http://www.managementstudyguide.com/portfolio-management.htm
Reference for business:
http://www.referenceforbusiness.com/encyclopedia/Int-Jun/Investment-
Analysis.html
Slide Share: http://www.slideshare.net/aakashkulkarni3/mgbpm-market-efficiency-
and-portfolio-theory
Financial adviser. London: FT Business: www.ftadviser.com
Investment adviser. London: Financial Times Business: www.ftadviser.com
Investor’s chronicle. London: Financial Times Business: www.investorschronicle.co.uk
Investment week. London: Incisive Financial Publishing: www.investmentweek.co.uk
Money management. London: www.ftadviser.com

Money marketing. London: Centaur Communications: www.moneymarketing.co.uk



12 
UNIT 02: CORPORATE SOCIAL RESPONSIBILITY AND

GOVERNANCE
Unit Reference Number Y/615/3237

Unit Title Corporate Social Responsibility and Governance
Unit Level 7
Unit Aims
The aim of this unit is to allow learners to gain an in depth understanding of Corporate Social
Responsibility and Corporate Governance. Learners will consider the various ways that businesses
and financial institutions need to operate to ensure that society accepts their processes and
procedures. Learners will gain an understanding of the importance of acting in such a way that ethical
codes and practices are followed and individual dignity is enhanced. Learners will understand the
skills required to deal appropriately with governing authorities in the private, public and charitable
sectors.

1. Understand laws and practices 1.1 Identify national and international laws and practices
in a national and international 1.2 Evaluate the practical application of the legal framework
context from both a national and international perspective
2. Understand the nature and 2.1 Critically analyse the importance of corporate
importance of corporate governance and ethical behavior
governance and ethical 2.2 Evaluate ethical issues arising in relation to corporate
behavior activities
2.3 Critically review solutions identified to overcome
corporate governance and ethical behavior issues
3. Be able to assess the impact of 3.1 Identify stakeholders specific to a named business
financial reporting on a organization
business organisation’s 3.2 Evaluate the impact of financial reporting on
stakeholders stakeholders of a named business organisation
4. Understand the principal 4.1 Analyse principal approaches to governance
approaches of governance and 4.2 Review how risk can be managed to achieve effective
assessment of risk corporate governance
5. Be able to communicate 5.1 Identify CSR and governance issues in a specific
complex issues in CSR and business organization / setting
governance 5.2 Critically review CSR and governance issues in an
appropriate and professional format

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Indicative Contents
Learning Outcome 1

Definitions:
o Profession
o Governance law and practices


Purpose of governance laws
Key governance laws and other regulatory issues.
Learning Outcome 2

Definitions:
o Corporate governance is the framework of rules and practices by which a board of
directors ensures:
- Accountability
- Fairness
- Transparency
o Ethical behaviour can be defined as the act which is in line with what society and
individuals think are good and acceptable values.
o Agency theory involves directors controlling the company whilst shareholders own the
company.

Accountability and Ethics:
p Ethical issues, including:
- Falsifying documents
- Ilegally evading taxes
- Tax avoidance
- Fraud

Application of governance rules and principles in order to overcome those issues that arise
from unethical behaviour.
Learning Outcome 3

Definitions:
o Stakeholders are the people who can affect or be affected by an organisation’s actions.
Key stakeholders could include:
- Employees
- Directors
- Government
- Debtors (Trade receivables)
- Creditors (Trade payables)
- Financial Institutions
- Shareholders
o Financial reporting is the process of statement production that discloses a business
organisation’s financial status to a number of key stakeholders. The statements will
include:
- Statement of Financial Position (Balance Sheet)
- Income Statement (Profit and Loss Account)
- Statement of cash flows
- Statement of stock holders’ equity
- Notes to the financial statements.

Corporate social responsibility (CSR) – Theory and Practice
Learning Outcome 4

Role of the board of directors and its governance responsibilities

Remuneration of directors and senior executives

Principles of good corporate governance, including:
o Fairness
o Accountability
o Responsibility
o Transparency

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Learning Outcome 5

Definitions, to include:
o Corporate social responsibility can be defined as the responsibility for a company’s
effect on environmental and social well being.
Reports:
p The Cadbury report (1992) is issued by “The committee on the financial aspects of
corporate Governance” led by Adrian Cadbury that sets out recommendations to
mitigate corporate governance risk.
o The Greenbury report (1995) addresses the growing concern about the level of director
remuneration.
o The Hampel report (1998) is a UK corporate governance report which looks into the
achievement of the code’s original purpose.
o The Turnbull report (1999) drawn up with the London Stock Exchange for listed
companies.
Assessment

1-5 All under LO 1-5 Business Report 4500
Resources
Textbooks

Peter Howells and Keith Bain, Financial markets and institutions. 5th ed. Harlow, Essex:

Pearson Education, 2007.
Marc Bungerberd, et al., International investment law: a handbook. Oxford: Hart Publishing,

2015.
Edwin J Elton et al. New York: John Wiley, Modern portfolio theory and investment analysis:

international student version. 8th ed., 2011. 

business finance, and portfolio management. 2010. 

Fernando, A.C., Corporate Governance, 2009. 
Justin,S., John,T., Corporate Governance, Ethics and CSR, 2013. 
Journals

International Journal of Corporate Strategy and Social Responsbility
Websites
Management Study Guide: http://www.managementstudyguide.com/portfolio-
management.htm
Financial Adviser. London: FT Business: www.ftadviser.com
Investment Adviser. London: Financial Times Business: www.ftadviser.com
Investor’s Chronicle. London: Financial Times Business: www.investorschronicle.co.uk
Investment Week. London: Incisive Financial Publishing: www.investmentweek.co.uk
Money Management. London: www.ftadviser.com
Forbes: http://www.forbes.com
OECD: http://www.oecd.org/corporate/principles-corporate-governance.htm
IOS Press: http://www.iospress.nl/book/ethics-and-accountability-in-a-context-of-governance-and-new-
 public-management/



15
UNIT 03: GLOBAL FINANCE AND STRATEGY
Unit Reference Number D/615/3238

Unit Title Global Finance and Strategy
Unit Level 7
Learner Self Study / Prep (LSSP) 25
Unit Aims
On completion of this unit learners will have gained an appreciation and understanding of the types of
decisions that need to be taken when entering global markets. Learners will gain an understanding of
why independence in solving financial issues within a specific period of time is vital for business
success.

1. Understand the concept of 1.1 Analyse the concept of globalisation
globalisation 1.2 Assess the link between the concept of globalisation and
the investment process
2. Understand the impact of the 2.1 Identify factors affecting the global business environment
global business environment on 2.2 Assess the impact of identified factors on national and
national and multinational multinational business organisations
business organisations
3. Be able to construct strategies 3.1 Identify the current value statement of a named business
that will result in the enhancement organisation
of organisational value 3.2 Explain how a named business organization achieved its
values
3.3 Recommend strategies that would enhance the value of
a named business organisation
4. Be able to evaluate the financial 4.1 Analyse the strategic decision of a named business
consequences of strategic organisation
decisions 4.2 Evaluate the financial consequences of a strategic
decision made by a named business organisation
5. Understand appropriate sources 5.1 Explain sources of finance available to business
of finance organisations
5.2 Assess the risk involved in a range of sources of finance
5.3 Critically review the costs involved in managing global
risk
6. Be able to review techniques to 6.1 Explain risk mitigation techniques
manage global risk 6.2 Analyse global risks
6.3 Review the suitability of techniques used by a named
business organisation to manage their global risk
7. Be able to assess potential 7.1 Analyse the potential investment decisions and strategies
investment decisions and global available to a named business organisation
strategies 7.2 Assess the global environment decisions and strategies
affecting a named business organization

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Indicative Contents
Learning Outcome 1

 Definition of globalisation

 Types of globalisation

 Investment processes in globalisation

Investments which have taken place between countries as a result of globalisation 
Learning Outcome 2

 Definition of the Global Business Environment

 Factors exogenous to the home environment of a business organisation 

 Influence of decision making on resource utilisation 

Global Business Environmental Factors: 
o Social
o Legal
o Economic
o Political
o Technological
o Environmental (Green Issues)

 Entry and Exit barriers

Effect of Globalisation and of the Global Business Environment on national and multinational
 business organisations

Environmental factors that affect national and multinational business organisations 
Learning Outcome 3

 Business Valuation – definition and purpose

 Strategic implication of mergers

 Post-merger values

 Management theories that enable the understanding of the current market position 

Strategies to enhance value
Learning Outcome 4

Strategic decisions are usually long term, complex decisions developed by a management


team. The decisions made will affect the future direction of the business organsiation. 
 Strategic decisions that consist of less complex, medium term and tactical decisions. 

Financial consequences of making strategic decisions.
Learning Outcome 5

 Sources of finance – definition

Internal and external sources of finance, for example:
o Loans
o Debentures
o Mortgages
o Retained earnings
o Government sources
o Shares

Then financial risks associated with using different sources of finance
Learning Outcome 6

 Use of the Capital Asset Pricing Model

 Cost of Capital

 WACC

 Use of Exchange Rates

Interest Rates

 Foreign Exchange Rate Risk


Risk 
mitigation techniques: 
 
o Risk Avoidance
o Risk Mitigation
o Transfer of Risk
o Risk Acceptance

17
Learning Outcome 7

 Investment appraisal

 Impact of investment appraisal on global financing 

 Financial strategies used in the global environment

Capital investment relating to funds invested in a business organisation for the purpose of
 furthering its strategic objectives

Aspects of strategy (often international), which include: 
o Scope of operations
o Resource allocation
o Competitive advantage
o Synergy
Assessment

1 - 12 All under LO 1-12 Business Report 4500
Resources
Textbooks

 Margaret, W.,International Risk Management, 2008. 

 Larry, J.K., Business Valuations, 1997. 

 Reilly & Brown, Investment Analysis & Portfolio Management, 10th ED, 2009. 

 Cheng,L, Advances in Investment Analysis and Portfolio Management, 9th ED, 2002.

Graham Mott. Kogan Page, Accounting for Non-Accountants: A Manual for Managers and
 Students. 9th ed., 2013.

Peter Howells and Keith Bain, Financial Markets and Institutions. 5th ed. Harlow, Essex:
 Pearson Education, 2007.

Marc Bungerberd, et al., International Investment Law: a handbook. Oxford: Hart Publishing,
 2015.

Edwin J Elton et al. New York: John Wiley,  Modern Portfolio Theory and Investment Analysis:
 International Student Version. 8th ed., 2011.

Frank Fabozzi. London, Wiley, The Basics of Finance: an introduction to financial markets,
Journals

 Journal of International Financial Markets

 The Hedge Fund Journal

 Journal of Asset Management

 Journal of Business Strategy

Journal of Financial and Quantitative Analysis 
Websites
Management Study Guide: http://www.managementstudyguide.com/portfolio-
management.htm
Reference for Business: http://www.referenceforbusiness.com/encyclopedia/Int-
Jun/Investment-Analysis.html
Slide Share: http://www.slideshare.net/aakashkulkarni3/mgbpm-market-efficiency-and-portfolio-
theory
Money Marketing. London: Centaur Communications: www.moneymarketing.co.uk
  
Financial Managers Society: http://www.fmsinc.org/
Accounting Coach: http://www.accountingcoach.com/
IDEAS: https://ideas.repec.org/a/scm/ausvfe/v10y2010ispecialp180-188.html

18
UNIT 04: STRATEGIC FINANCIAL MANAGEMENT
Unit Reference Number H/615/3242

Unit Title Strategic Financial Management
Unit Level 7
Unit Aims
On completion of this unit, learners will have gained knowledge and understanding relating to
planning the usage and management of a business organisation’s financial resources. Learners will
understand the importance of attaining business objectives and maximizing shareholder return.
Learners will gain a working knowledge of business strategy design and the production of
comprehensive business plans.

1. Understand the significance of 1.1 Apply relevant academic theories to demonstrate an
strategic management and understanding of various internal and external
decision making to the organisational factors
performance of a business 1.2 Evaluate business resources used to meet organisational
organisation objectives
2. Understand key financial 2.1 Evaluate key financial theories
theories 2.2 Assess strategic implementation techniques using balanced
scorecard and portfolio management tools
3. Be able to apply stakeholder 3.1 Analyse the significance of stakeholder analysis
analysis and corporate 3.2 Analyse business expansion methods and their impact on
valuation techniques stakeholders
3.3 Apply stakeholder analysis to a named business
organisation
3.4 Prepare return and risk computations
3.5 Explain the concepts of corporate and business valuation
techniques
4. Understand the role of culture 4.1 Explain the role of culture in creating a strategy
in strategic decision making 4.2 Analyse the role of change management
4.3 Analyse the role and effect of culture on change
management
5. Understand performance 5.1 Evaluate performance measurement systems
measurement systems 5.2 Explain financial analysis techniques
5.3 Apply financial analysis systems and techniques to practical
business problems

19
Indicative Contents
Learning Outcome 1

 Strategic analysis of the external environment, internal strategic capability and stakeholder
expectations including:
 o PESTEL
o Five Forces Framework
 o RBV
o Core Competences
o Value Chain
Learning Outcome 2

 Finance theories and their application to financial decision making. 

 Strategic implementation techniques 

 Portfolio management tools.

 Models of Strategic Management

 Objective setting

Definition of the balanced scorecard – a strategic planning and management system that is
used extensivly in business to align business activities to the vision and strategy of the
organisation, to improve internal and external communications and to monitor organisation
 performance against strategic goals.

Portfolio theory and risk
Learning Outcome 3

Organizational culture, including
 o Shared beliefs
o Norms and Values
o Roles of culture

 Change management process

 Managing strategic change.

Concept of value, including:
o EVA
o MVA
o SVA

 Dividend policy, including:
p relevance and irrelevance
o signalling
o clientele effects

 Corporate valuations, including:
p asset values
o stock market
o cashflow
o dividend valuation.
Learning Outcome 4

Stakeholder analysis – key project management skill for classifying people who have
 influence over the business

 Shareholder and stakeholder perspectives 

 Impacts and management of stakeholder analysis 

Mergers and Acquistions, including: 
o Motivations
o Wealth effects
o Regulation

The impact on shareholders and stakeholders due to the mergers and acquisition 

20
Learning Outcome 5

Investment appraisal techniques, including: 
o Payback
o Discounted Payback
o Accounting Rate of Return
o Net Present Value
o Internal Rate of Return
o Risk Appraisal
o Project Risk
 
Sources of long term finance, including 
p Shares
o Borrowing
o Leases
o Collateral / Security
o Hire Purchase
o Grants
 
Ratio Analysis, including:
p Liquidity ratios
o Profitability ratios
o Investor ratios
o Efficiency ratios
o Performance ratios
Assessment

Resources
Textbooks


Margaret, W.,International Risk Management, 2008. 
Larry, J.K., Business Valuations, 1997. 


Reilly & Brown, Investment Analysis & Portfolio Management, 10th ED, 2009. 

Cheng,L, Advances in Investment Analysis and Portfolio Management, 9th ED, 2002. 
students. 9th ed., 2013.


Charles, W.L.H., Gareth, R.J., Strategic Management Theory, 9th Ed, 2009. 
Ross, G., Valuation and Investment Appraisal, 2002. 
Journals


Journal of Risk and Financial Management
Strategic Management Journal
Websites
Financial Managers Society: http://www.fmsinc.org/
Finance: http://finance.mapsofworld.com/strategic-management/model.html
ACCA: http://www.accaglobal.com/lk/en/student/exam-support-resources/professional-
exams-study-resources/p4/technical-articles/economic-value-added.html

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UNIT 05: STRATEGIC AUDIT

Unit Reference Number Y/615/3240
Unit Title Strategic Audit
Unit Level 7
Unit Aims
On completion of this unit, learners will have gained knowledge and understanding of how managers
can position and execute business strategy appropriately. This will involve an in-depth study of the
strategic auditing process and related procedures. Learners will be able to understand and apply
suitable investigative techniques to both positive and negative environments.

1. Understand historic and current 1.1 Review the historic and current auditing regulatory
auditing processes and environment
procedures 1.2 Identify the rules of professional conduct for auditors
1.3 Critically assess the rules of professional conduct for
auditors
2. Understand the importance of 2.1 Explain the legal and professional requirements when
legal and professional completing an audit
requirements when completing 2.2 Evaluate the importance of the legal and professional
an audit requirements on the performance of an audit
3. Understand audit strategy 3.1 Analyse audit strategy used in business organizations
3.2 Assess the effectiveness of the audit monitoring process
4. Understand the risk involved in 4.1 Discuss the risk involved in the audit process
the audit process 4.2 Analyse appropriate measures to minimise identified risk
4.3 Explain the link between account preparation and the
audit completed
5. Understand current 5.1 Review current development in auditing
developments in auditing 5.2 Assess the importance of the current developments in
audit processes
Indicative Contents
Learning Outcome 1

The regulatory environment, including:
o Laws
o Rules and regulations which are put in place by the state, or other government
entities,to control the behaviour and actions of business activities

Professional conduct – the fieldof regulation of members of professional bodies acting under
 statutory or contractual powers.

 Rules of professional conduct to ensure proper standards of professional conduct are
observed. Rules to include:
p Integrity
o Objectivity
o Confidentiality
o Competency

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Learning Outcome 2

 The standards and responsibilities for internal auditors and internal audit activity. 

Impact of the global financial crisis – increase in legal and professional requirements when
performing audit processes.
Learning Outcome 3

The auditing process may
include: 
 o Requesting documents
o Preparing an audit plan
o Holding an open meeting
o Drafting a report
o End meeting – to discuss
the report.

 Audit Strategy

Audit Plan
Learning Outcome 4

 Definition of audit risk

Typeso of audit risk: 
Inherent
o
risk 
o
Control risk
Detection
 risk

 The audit risk model – used by auditors to manage the overall risk 

 Link between account preparation and the audit conducted 

 Definition of a financial audit

Auditor reports
Learning Outcome 5

 Current and future audit services

 Internationalisation of accounting and auditing standards – for example, IAS

Role of information technology in the audit process 
Assessment

Resources
Textbooks

 Margaret, W.,International Risk Management, 2008.

 Larry, J.K., Business Valuations, 1997. 

 students. 9th ed., 2013.




 Millichamp,A.H., Auditing, 8th Ed, 2002.

Frank, C., The essentials of auditing, 2015. 

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Journals

 Journal of Auditing

 Journal of Accounting, Auditing & Finance 

Managerial Auditing Journal
Websites
  Financial Managers Society: http://www.fmsinc.org/

Accounting Coach: http://www.accountingcoach.com/
Slide Share: http://www.slideshare.net/vishwacrv/auditing-notes-27123132
What are auditing and accounting: http://smallbusiness.chron.com/auditing-accounting-
 11772.html
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24
UNIT 06: CORPORATE REPORTING
Unit Reference Number D/615/3241

Unit Title Corporate Reporting
Unit Level 7
Unit Aims
On completion of this unit, learners will be able to prepare and interpret the financial statements for a
range of business organizations. The learners will be able to apply relevant accounting concepts and
principles. The unit provides an opportunity for learners to enhance their quantitative and qualitative
analytical skills, through the interpretation of financial data.

1. Understand the accounting and 1.1 Identify the main sources for regulatory framework
finance regulatory framework 1.2 Evaluate the impact of the accounting and finance
regulatory framework on business organisations
1.3 Assess areas of abuse and exploitation in accounting and
financial reporting
2. Understanding accounting 2.1 Identify key accounting concepts, principles and theories
concepts, principles and theories 2.2 Analyse the importance of accounting concepts, principles
and theories
3. Be able to prepare and interpret 3.1 Prepare accounting information
accounting information 3.2 Interpret published accounting information
3.3 Assess published accounting information
4. Be able to demonstrate specific 4.1 Identify specific policies, practices and regulations within
policies, practices and regulations corporate accounting
within corporate accounting 4.2 Review accounting regulations for a named business sector
4.3 Critically assess the key accounting practices and policies
identified for a named business sector
Indicative Contents
Learning Outcome 1

 History of accounting and financial information 

 Document development

 Early auditing systems and their development over time

Useful information provided to business organisations, to
 include: o Growth / expansion strategies
o Performance management
o Budget creation
o Business decisions
o Investment decisions.

 The regulatory framework and financial reporting 

 Reporting Standards
  Frameworks – Principle vs Rule Based Systems

The importance and the impact of the regulatory framework on business organisations 

International Financial Reporting Standards – accounting standards developed by the
International Accounting Standards Board (IASB)

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Learning Outcome 2

Concepts, principles and theories – rules and guidelines of the financial accounting
 profession.

Concepts, principles and theories to include: 
o Accruals concept
o Prudence
o Materiality
o Consistency
o Going concern
o Business entity concept
o Money measurement
o Duality
o Stability
o Objectivity
Learning Outcome 3

Definitions:
o Cash flow statements show how the changes in the balance sheet and income have an
effect on cash and cash equivalents. They consider operating, investing and financing
activities
o Accounting for non-current assets, including:
- Intangibles
- Government grants
- Research and development

 Accounting for taxation including deferred taxation 

 Accounting for long term contracts
  Group accounting - acquisition basis, including:
p Goodwill
o Non-controlling interest
o Inter-company transactions
o Statements of comprehensive income
o Statements of financial position

 Issue and redemption of shares and debt 

 Accounting for company failure – liquidations

Interpretation and critical evaluation of accounting and financial information 
Learning Outcome 4

 Accounting rules and regulations

 UK accounting standards

 Generally accepted accounting principles 

Corporate accounting, including:
o Preparation of companies’ final accounts and cash flow statements
o Analysis and interpretation of financial results
o Key events such as amalgamation

 Accounting practices

Accounting policies

26
Assessment

Resources
Textbooks

  Keith Bain, Financial Markets and Institutions. 5th ed. Harlow, Essex: Pearson
Peter Howells and
Education, 2007.
 Marc Bungerberd, et al., International Investment Law: a handbook. Oxford: Hart Publishing, 2015.


 Edwin J Elton et al. New York: John Wiley, Modern Portfolio Theory and Investment Analysis: international
student version. 8th ed., 2011.

 Frank Fabozzi. London, Wiley, The Basics  of Finance: an introduction to financial markets, business
finance, and portfolio management. 2010.
  Fernando, A.C., Corporate Governance, 2009.

  Justin,S., John,T., Corporate Governance, Ethics and CSR, 2013.

  Geoff,E., Corporate Reporting, 7th Ed, 2004.

 
Andrew, H., Corporate Financial Reporting Theory & Practice, 2003.
Journals
  Journal of Financial Reporting and Accounting

 
Journal of Critical Perspectives On Accounting
Websites
Management Study Guide: http://www.managementstudyguide.com/portfolio-management.htm
Investor’s Chronicle. London: Financial Times Business: www.investorschronicle.co.uk
Investment week. London: Incisive Financial Publishing: www.investmentweek.co.uk
Integrated Reporting: http://integratedreporting.org/corporate-reporting-dialogue/
ACCA: http://www.accaglobal.com/lk/en/student/exam-support-resources/fundamentals-exams-study-
 resources/f7/technical-articles/conceptual-framework-need.html
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Level 7 Diploma in Accounting and Finance

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LEVEL 7 DIPLOMA IN ACCOUNTING

AND FINANCE (RQF)

Londan School of Planning and Management

About London School of Planning and Management

London School of Planning and Management (LSPM) assasaasas

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Qualification Objectives .......................................................................................................................... 3

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

QUALITY, STANDARDS AND RECOGNITIONS

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Unit Ref. No. Mandatory Units Credit TQT

ABOUT THE UNITS

DELIVERING THE QUALIFICATIONS

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

ASSESSMENT AND VERIFICATION

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

UNIT 01: INVESTMENT ANALYSIS

Unit Reference Number R/615/3236

Learning Outcomes and Assessment Criteria

Learning Outcomes Assessment Criteria

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

 Types and characteristics

 Types and characteristics

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Motives for investment

 Risk & return

Money Market Investments

 Markets & investors

Definitions and characteristics of:

 Nature & objectives

 Nature & objectives

 Nature & objectives

 Functions of portfolio management

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Managing Client Portfolios

Learning Outcomes Assessment criteria Type of assessment Word count (approx.

Management Study Guide:

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

UNIT 02: CORPORATE SOCIAL RESPONSIBILITY AND

Unit Reference Number Y/615/3237

Learning Outcomes and Assessment Criteria

Learning Outcomes Assessment Criteria

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Learning Outcomes Assessment criteria Type of assessment Word count (approx.

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

UNIT 03: GLOBAL FINANCE AND STRATEGY

Unit Reference Number D/615/3238

Learning Outcomes and Assessment Criteria

Learning Outcomes Assessment Criteria

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Learning Outcomes Assessment criteria Type of assessment Word count (approx.

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

UNIT 04: STRATEGIC FINANCIAL MANAGEMENT

Unit Reference Number H/615/3242

Learning Outcomes and Assessment Criteria

Learning Outcomes Assessment Criteria

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

Learning Outcomes Assessment criteria Type of assessment Word count (approx.

LONDON SCHOOL OF PLANNING AND MANAGEMENT www.LSPM.org.uk

UNIT 05: STRATEGIC AUDIT