AAT Professional Diploma in Accounting | Level 4

AAT Professional Diploma(Level 4)This level builds on the knowledge you gained in the Advanced Diploma (Level 3). After qualifying you can work in accounting roles or progress onto studying chartered accountancy.

The course is made up of three mandatory units (also known as subjects), one synoptic unit, and five optional units. You must pass all the mandatory assessments, synoptic assessment, and two optional unit assessments to achieve the qualification.

Financial Statements of Limited Companies (FSLC) (Compulsory course)

• Demonstrating knowledge of reporting frameworks and ethical principles relating to financial reporting, including key features of published financial statements
• Learn to draft consolidated financial statements and statutory financial statements for a limited company, as well as interpreting them using ratio analysis

Management Accounting: Budgeting (MABU) (Compulsory course)

• Study how to prepare and report budgets, forecasts of income and expenditure, and demonstrate how budgeting can improve organisational performance

Management Accounting: Decision and Control (MDCL) (Compulsory course)

• Analyse a range of costing techniques to support the management accounting function of an organisation, including standard costing to improve performance, and statistical techniques to analyse business information
• Master different financial and non-financial performance techniques to enhance value and aid everyday decision making

Professional synoptic assessment (PDSY):Accounting Systems and Controls

You’ll demonstrate your understanding by evaluating internal control systems within a business, and make recommendations to any weaknesses you find, to minimise the risk of loss. The synoptic assessment will also draw on your understanding from FSLC, MABU, and MDCL.

Unit assessment only (optional units - choose two):

Business Tax (BSTX) (optional)

• Complete tax returns for sole traders, partnerships and limited companies – preparing any supporting tax computations
• Understand how to advise business clients on tax reliefs, tax regime impacts and their and their agent’s responsibilities in reporting taxation to HMRC
• Learn to prepare tax computations for the sale of capital assets.

Personal Tax (PLTX) (optional)

• Analyse the theories, principles and rules that underpin taxation systems
• Learn to calculate a UK taxpayer’s total income, income tax and National Insurance (NI) contributions, as well as how to account for capital gains tax
• Cover the basics of inheritance tax

External Auditing (ETAU) (optional)

• Understand the principles of auditing and importance of professional ethics, including evaluating the audited entity's system of internal control, audit procedures for obtaining audit evidence, and planning process

Cash and Treasury Management (CTRM) (optional)

• Demonstrate use of statistical techniques and financial information to prepare cash receipts and payment forecasts, and evaluate cash budgets and track cash flows
• Evaluate the principles of cash management, raising finance, and investing surplus within the context of regulation and government monetary policies

Credit Management (CDMT) (optional)

• Develop skills to analyse relevant legislation, information and contract law that has an impact on the credit control environment, including assessing credit risk
• Learn to evaluate a range of techniques to collect debts
• Understand credit control evaluation in line with organisational policies and procedures, including presenting advice and recommendations