AAT Level 4 AMAC study plan

Prepare a full set of statutory financial statements for a fictional limited company from a trial balance, including statement of financial position, statement of profit or loss and statement of changes in equity

Adjust the trial balance for accruals, prepayments, depreciation, inventory valuation and tax provisions before drafting statements

Calculate and present basic and diluted earnings per share and explain when dilution arises

Explain the purpose and required contents of the notes to the accounts for a small company claiming audit exemption

Produce a consolidated statement of financial position for a parent and one subsidiary, eliminating intra-group balances and calculating goodwill

Distinguish between control, significant influence and joint control and select the correct accounting treatment for each

Map the components of an accounting system (source documents, books of prime entry, ledgers, trial balance) and identify where a control failure could occur at each stage

Design a set of internal controls over cash receipts and payments and justify each control by the risk it mitigates

Prepare operating, cash and flexible budgets from given assumptions and reconcile budgeted profit to budgeted cash movement

Calculate and interpret variances for materials, labour and overheads, classifying each as favourable or adverse and identifying possible causes

Reconcile budgeted to actual figures using a variance report and recommend corrective action to management

Explain the behavioural and motivational implications of how budgets are set and used

Apply marginal costing and absorption costing to the same scenario and reconcile the difference in reported profit

Compute break-even point, margin of safety and target profit, and evaluate a special-order decision using relevant costing

Perform investment appraisal using payback, net present value and internal rate of return, and rank mutually exclusive projects

Evaluate a make-or-buy or discontinue decision, correctly excluding sunk costs and apportioned fixed overheads

Compute corporation tax on trading profits, including capital allowances and the treatment of non-trading income

Apply the rules for trading losses, including carry-forward and carry-back relief, to two contrasting scenarios

Identify when VAT registration is compulsory, prepare a VAT return from invoice data and state the deadlines

Explain the tax treatment of dividends and director remuneration when deciding how to extract profit from a company

Compute income tax for an employee and a self-employed individual, applying personal allowance taper and the correct rate bands

Calculate capital gains tax on the disposal of shares and property, applying annual exemption and available reliefs

Apply inheritance tax rules to a simple estate, including the nil rate band and the transferable nil rate band

Compare the tax position of employed versus self-employed status for the same level of income

Explain the purpose of an external audit and distinguish the responsibilities of directors from those of auditors

Assess audit risk for a given entity and identify the assertions at risk for two material balances

Design substantive procedures for receivables and inventory that address the identified risks, including sampling and cut-off testing

Draft an appropriate audit opinion, choosing between unmodified, qualified and disclaimer, and justify the choice

Evaluate a credit application using ratio analysis and credit reference information, and recommend a credit limit with conditions

Explain the tools available to manage receivables, including credit terms, early settlement discounts, invoice discounting and factoring

Complete two timed mixed-topic mock sections and review every error against the syllabus area it came from

Revisit the weakest two domains identified by mock performance and re-work three questions from each