What is AAT Level 4 Accounting?

Are you looking to advance your career in accounting? Are you ready to take your accounting career to the next level? If so, studying AAT Accounting level 4 qualification could be the next step for your career.

AAT Accounting Level 4 is the highest level of the Association of Accounting Technicians (AAT) qualification. This level covers a wide range of topics. This qualification will help you to handle complex financial tasks confidently.

This qualification is designed for the individuals who have already completed AAT Accounting Level 3 qualification or have the relevant work experience in accounting and finance field.

AAT Accounting Level 4 qualification is equivalent to a higher diploma or the first year of a bachelor’s degree.

It is also comparable to HNC qualification.

Association of Accounting Technicians aka AAT does not set any entry requirements for this qualification but for the better understanding, individuals must typically meet some requirements such as completion of AAT Accounting Level 3, basic understanding of accounting principles, numeric skills and much more.

It is recommended by AAT for students to use AAT Skillcheck to ensure that they are ready to start on a particular level. Find the link below.

https://www.aat.org.uk/qualifications-and-courses/skillcheck

AAT Accounting Level 4 is designed for the individuals who have completed the AAT Accounting Level 3 qualification or equivalent. It is suitable for anyone who has a career in accounting and finance and are looking to advance their career.

Qualification name	AAT Level 4 Diploma in Professional Accounting
Qualification number	603/6339/3
Level	4
Guided learning hours (GLH)	390
Total qualification time (TQT)	985, 1022 or 1059 (depending on completed options)

AAT Accounting Level 4 typically consists of 3 mandatory units and 2 optional units.

Mandatory Units

The mandatory units include:

• Applied Management Accounting Techniques
• Internal Accounting Techniques
• Drafting and Interpreting Financial Statements

Optional Units

The optional units include:

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

 

• Applied Management Accounting

This is a mandatory unit in AAT Accounting Level 4.

Unit level	GLH value	Unit reference number	Assessment
4	120	F/618/3591	Unit assessment

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• Drafting And Interpreting Financial Statements

This is a mandatory unit for in Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	90	L/618/3593	Unit assessment

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• Internal Accounting Systems and Controls

This is a mandatory unit in AAT Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	60	R/618/3594	Unit assessment

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• Business Tax

This is an optional unit in AAT Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	60	Y/618/3595	Unit assessment

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• Personal Tax

This is an optional unit in AAT Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	60	D/618/3596	Unit assessment

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• Audit and Assurance

This is an optional unit in AAT Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	60	H/618/3597	Unit assessment

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• Cash and Financial Management

This is an optional unit in AAT Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	60	K/618/3598	Unit assessment

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• Credit and Debt Management

This is an optional unit in AAT Accounting Level 4

Unit level	GLH value	Unit reference number	Assessment
4	60	M/618/3599	Unit assessment

AAT Accounting Level 4 qualification consists of 5 units assessments in total, in which 3 are mandatory and 2 are optional. The students can choose 2 optional units out of 5 units.

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• Applied Management Accounting Assessment and Marking Structure

Assessment method	Marking type	Duration of assessment
Computer-based assessment	Partially computer/ partially human marked	3 hours

 

Learning outcomes	Weighting
1. Understand and implement the organisational planning process	25%
2. Use internal processes to enhance operational control	27%
3. Use techniques to aid short-term and long-term decision making	25%
4. Analyse and report on business performance	23%
Total	100%

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• Drafting And Interpreting Financial Statements Assessment and Marking Structure

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours 30 minutes

 

Learning outcomes	Weighting
1. Understand the reporting frameworks that underpin financial reporting	7%
2. Draft statutory financial statements for limited companies	43%
3. Draft consolidated financial statements	25%
4. Interpret financial statements using ratio analysis	25%
Total	100%

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• Internal Accounting Systems and Controls

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours 30 minutes

 

Learning outcomes	Weighting
1. Understand the role and responsibilities of the accounting function within an organisation	10%
2. Evaluate internal control systems	25%
3. Evaluate an organisation’s accounting system and underpinning procedures	25%
4. Understand the impact of technology on accounting systems	15%
5. Recommend improvements to an organisation’s accounting system	25%
Total	100%

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• Business Tax Assessment and Marking Structure

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours 30 minutes

 

Learning outcomes	Weighting
1. Prepare tax computations for sole traders and partnerships	19%
2. Prepare tax computations for limited companies	19%
3. Prepare tax computations for the sale of capital assets by limited companies	17%
4. Understand administrative requirements of the UK’s tax regime	15%
5. Understand the tax implications of business disposals	10%
6. Understand tax reliefs, tax planning opportunities and agent’s responsibilities in reporting taxation to HM Revenue & Customs	20%
Total	100%

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• Personal Tax Assessment and Marking Structure

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours 30 minutes (FA23)

 

Learning outcomes	Weighting
1. Understand principles and rules that underpin taxation systems	10%
2. Calculate UK taxpayers’ total income	24%
3. Calculate income tax and National Insurance contributions payable by UK taxpayers	28%
4. Calculate capital gains tax payable by UK taxpayers	28%
5. Understand the principles of inheritance tax	10%
Total	100%

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• Audit and Assurance

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours 30 minutes

 

Learning outcomes	Weighting
1. Demonstrate an understanding of the audit and assurance framework	10%
2. Demonstrate the importance of professional ethics	15%
3. Evaluate the planning process for audit and assurance	25%
4. Evaluate procedures for obtaining sufficient and appropriate evidence	35%
5. Review and report findings	15%
Total	100%

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• Cash and Financial Management

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours

 

Learning outcomes	Weighting
1. Prepare forecasts for cash receipts and payments	15%
2. Prepare cash budgets and monitor cash flows	25%
3. Understand the importance of managing finance and liquidity	15%
Understand ways of raising finance and investing funds	20%
4. Understand regulations and organisational policies that influence decisions in managing cash and finance	25%
Total	100%

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• Credit and Debt Management

Assessment method	Marking type	Duration of assessment
Computer based assessment	Partially computer/ partially human marked	2 hours

 

Learning outcomes	Weighting
1. Understand relevant legislation and contract law that impacts the credit control environment	15%
2. Understand how information is used to assess credit risk and grant credit in compliance with organisational policies and procedures	45%
3. Understand the organisation’s credit control processes for managing and collecting debts	25%
4. Understand different techniques available to collect debts	15%
Total	100%

Students will be awarded an overall qualification grade (Distinction, Merit, and Pass).

Students who do not achieve the qualification will not receive a qualification certificate and will be shown as unclassified. This is indicated below for illustrative purposes only.

The raw marks of each assessment will be converted into a percentage mark and rounded up or down to the nearest whole number. For example, 75.5% would be rounded up to 76%, whereas 82.1% would be rounded down to 82%. This percentage mark is then weighted according to the weighting of the unit assessment within the qualification. The resulting weighted assessment percentages are combined to arrive at a percentage mark for the whole qualification

 

Grade definition	Percentage threshold
Distinction	90–100%
Merit	80–89%
Pass	70–79%
Unclassified	0–69% Or failure to pass one or more assessment/s

 

Example of Pass Assessment	Contribution of assessment to qualification grade	Percentage achieved	Weighted percentage contribution to grade
Applied Management Accounting	30%	78%	23.4%
Drafting and Interpreting Financial Statements	20%	85%	17%
Internal Accounting Systems and Controls	20%	72%	14.4%
Business Tax	15%	81%	12.2%
Personal Tax	15%	72%	10.8%
Total		78%*

This has been rounded to the whole number

 

 

Example of Merit Assessment	Contribution of assessment to qualification grade	Percentage achieved	Weighted percentage contribution to grade
Applied Management Accounting	30%	81%	24.3%
Drafting and Interpreting Financial Statements	20%	86%	17.2%
Internal Accounting Systems and Controls	20%	87%	17.4%
Personal Tax	15%	82%	12.3%
Credit and Debt Management	15%	79%	11.6%
Total		83%*

This has been rounded to the whole number

 

 

Example of Distinction Assessment	Contribution of assessment to qualification grade	Percentage achieved	Weighted percentage contribution to grade
Applied Management Accounting	30%	91%	27.3%
Drafting and Interpreting Financial Statements	20%	92%	18.4%
Internal Accounting Systems and Controls	20%	89%	17.8%
Audit and Assurance	15%	94%	14.1%
Cash and Financial Management	15%	86%	12.9%
Total		91%*

This has been rounded to the whole number

Throughout the life of this qualification, AAT will make available a range of free materials and resources to support tutors and students in delivery and assessment.

Materials produced for this qualification will include:

• practice assessments for each unit
• one Sample Assessment and Mark Scheme (Introduction to Bookkeeping)
• Qualification Technical Information (QTI)
• annual Chief Examiner reports.

 

Additional materials may also include:

• e-learning
• Green Light tests
• webinars
• tutor-to-tutor sessions at network meetings.

 

All AAT study support resources can be accessed via the AAT Lifelong Learning Portal.

After completing AAT Accounting Level 4, individuals have gained a comprehensive knowledge of advance accounting. With this knowledge and skills, individual can pursue a variety of careers in accounting and finance field. Some of the examples are given below:

• Assistant Accountant
• Tax Accountant
• Management Accountant
• Auditor and much more

Additionally, students can pursue higher studies such as Association of Charted Certified Accountants (ACCA) or Chartered Institude of Management Accounting (CIMA) to enhance their career prospects.

In conclusion, completing AAT Accounting Level 4 qualification demonstrate a high level of knowledge and competence in the field of accounting and finance. This qualification provides individuals with the skills and confidence to pursue a successful career in the accounting and finance field.

Overall, AAT Accounting Level 4 is a valuable qualification that can open up a wide range of opportunities and career options in the accounting and finance profession.