Assessment strategy for the six units that
comprise the AAT Level 3 Diploma in Accounting
Accounts Preparation (ACPR)
Assessment duration: two hours.
For the purpose of assessment the competency level for AAT assessment is set at 70%. The level
descriptor below describes the ability and skills students at this level must successfully demonstrate
to achieve competence.
Accounts Preparation (ACPR) is the first of two financial accounting assessments at Level 3. It is
recommended that ACPR is studied and taken before Preparing Final Accounts for Sole Traders and
Partnerships (FSTP).
The ACPR assessment consists of six independent tasks. Students will normally be assessed by
computer-based assessment. Student’s ‘own figures’ will be taken into account whenever possible.
For this reason, and to achieve maximum marks, students should always try to offer answers for all
parts of a task.
Summary
Achievement at Level 3 reflects the ability to identify and use relevant understanding, methods and
skills to complete tasks and address problems that, while well defined, have a measure of complexity.
It includes taking responsibility for initiating and completing tasks and procedures as well as
exercising autonomy and judgement within limited parameters. It also reflects awareness of different
perspectives or approaches within an area of study or work.
Knowledge and understanding
 Use factual, procedural and theoretical understanding to complete tasks and address
problems that, while well defined, may be complex and non-routine.
 Interpret and evaluate relevant information and ideas.
 Be aware of the nature of the area of study or work.
 Have awareness of different perspectives or approaches within the area of study or work.
Application and action
 Address problems that, while well defined, may be complex and non-routine.
 Identify, select and use appropriate skills, methods and procedures.
 Use appropriate investigation to inform actions.
 Review how effective methods and actions have been.
Autonomy and accountability
 Take responsibility for initiating and completing tasks and procedures, including, where
relevant, responsibility for supervising or guiding others
 Exercise autonomy and judgement within limited parameters.
Tasks types include:
 completion of ledger accounts
 completion of pro-forma tables
 non-current assets register
 journal
 trial balance
 extended trial balance
 calculations
 multiple choice or similar.
The assessment will cover
Maintaining accounting records for non-current assets
Tasks will include accounting for acquisitions, disposals and depreciation:
 the non-current assets register
 ledger accounts relating to non-current asset transactions.
Accounting adjustments and reconciliations
Typically tasks will require accounting for period end adjustments and the correction of errors. This
will include using:
 ledger accounts
 the extended trial balance
 the journal
 short answer questions
 reconciliation of control accounts (sales, purchases) with subsidiary accounts
 reconciliation of bank account (cash book) with bank statement.
Principles, concepts and records
Tasks will include:
 showing basic understanding of accounting framework and concepts
 showing understanding of the principles of double entry bookkeeping
 showing awareness of the different types of accounting records, and their purpose.
The trial balance and extended trial balance
Tasks will include:
 production of a trial balance (or partial trial balance) from ledger accounts
 completion of an adjusted extended trial balance.
Prepare Final Accounts for Sole Traders and Partnerships (FSTP)
Assessment duration: two hours
For the purpose of assessment the competency level for AAT assessment is set at 70% of the
available marks. The level descriptor below describes the ability and skills students at this level must
successfully demonstrate to achieve competence.
Prepare final accounts for sole traders and partnerships (FSTP) is the second of two financial
accounting assessments at Level 3. It is recommended that ACPR is studied and taken before FSTP.
The FSTP assessment consists of five independent tasks. Students will normally be assessed by
computer-based assessment. Students’ ‘own figures’ will be taken into consideration wherever
possible. For this reason, and to achieve maximum marks, students should always try to offer
answers for all parts of a task.
Students will be assessed as competent if at least 70% of the available marks are achieved in the
assessment.
Summary
Achievement at Level 3 reflects the ability to identify and use relevant understanding, methods and
skills to complete tasks and address problems that, while well defined, have a measure of complexity.
It includes taking responsibility for initiating and completing tasks and procedures as well as
exercising autonomy and judgement within limited parameters. It also reflects awareness of different
perspectives or approaches within an area of study or work
Knowledge and understanding
 Use factual, procedural and theoretical understanding to complete tasks and address
problems that, while well defined, may be complex and non-routine.
 Interpret and evaluate relevant information and ideas.
 Be aware of the nature of the area of study or work.
 Have awareness of different perspectives or approaches within the area of study or work.
Application and action
 Address problems that, while well defined, may be complex and non-routine.
 Identify, select and use appropriate skills, methods and procedures.
 Use appropriate investigation to inform actions.
 Review how effective methods and actions have been.
Autonomy and accountability
 Take responsibility for initiating and completing tasks and procedures, including, where
relevant, responsibility for supervising or guiding others.
 Exercise autonomy and judgement within limited parameters.
Tasks types will include
 Calculations
 Completion of ledger accounts
 Completion of pro-forma statements
 Multiple choice or similar.
The assessment will cover
The process of preparing financial statements, and incomplete records
A variety of techniques for finding missing figures will be required, including a selection from:
 using the accounting equation
 using mark-up or gross sales margin
 reconstructing the capital account
 reconstructing the bank account
 reconstructing control accounts
 short answer questions to test the knowledge assessment criteria.
Producing financial statements for a sole trader
Typical tasks will include:
 preparing an statement of profit or loss from a final trial balance
 preparing a statement of financial position from a final trial balance
 short answer questions to test the knowledge assessment criteria.
Understanding the accounting requirements for partnerships and preparing financial
statements for a partnership
Typical tasks will include:
 preparing ledger accounts or making calculations to deal with specialised partnership
transactions such as admission or retirement of a partner
 preparing a partnership appropriation account or partners’ current accounts
 calculating appropriations of profit for a single partner for a given period
 preparing a statement of financial position from a trial balance
 preparing partners’ capital accounts and / or a goodwill account
 short answer questions to test the knowledge assessment criteria.
Cost and Revenues (CSTR)
Assessment duration: two hours and 30 minutes.
For the purpose of assessment the competency level for AAT assessment is set at 70%. The level
descriptor below describes the ability and skills students at this level must successfully demonstrate
to achieve competence.
Summary
Achievement at Level 3 reflects the ability to identify and use relevant understanding, methods and
skills to complete tasks and address problems that, while well defined, have a measure of complexity.
It includes taking responsibility for initiating and completing tasks and procedures as well as
exercising autonomy and judgement within limited parameters. It also reflects awareness of different
perspectives or approaches within an area of study or work.
Knowledge and understanding
 Use factual, procedural and theoretical understanding to complete tasks and address
problems that, while well defined, may be complex and non-routine.
 Interpret and evaluate relevant information and ideas.
 Be aware of the nature of the area of study or work.
 Have awareness of different perspectives or approaches within the area of study or work.
Application and action
 Address problems that, while well defined, may be complex and non routine
 Identify, select and use appropriate skills, methods and procedures
 Use appropriate investigation to inform actions
 Review how effective methods and actions have been
Autonomy and accountability
 Take responsibility for initiating and completing tasks and procedures, including, where
relevant, responsibility for supervising or guiding others.
 Exercise autonomy and judgement within limited parameters.
Assessment
The assessment will cover all of the learning outcomes and assessment criteria of the QCF Unit Cost
and Revenues. The assessment will comprise ten independent tasks. Students will normally be
assessed by computer-based assessment.
Indirect Tax (ITAX)
Assessment duration: one hour and 30 minutes.
For the purpose of assessment the competency level for AAT assessment is set at 70%. The level
descriptor below describes the ability and skills students at this level must successfully demonstrate
to achieve competence.
Summary
Achievement at Level 3 reflects the ability to identify and use relevant understanding, methods and
skills to complete tasks and address problems that, while well defined, have a measure of complexity.
It includes taking responsibility for initiating and completing tasks and procedures as well as
exercising autonomy and judgement within limited parameters. It also reflects awareness of different
perspectives or approaches within an area of study or work.
Knowledge and understanding
 Use factual, procedural and theoretical understanding to complete tasks and address
problems that, while well defined, may be complex and non-routine.
 Interpret and evaluate relevant information and ideas.
 Be aware of the nature of the area of study or work.
 Have awareness of different perspectives or approaches within the area of study or work.
Application and action
 Address problems that, while well defined, may be complex and non-routine.
 Identify, select and use appropriate skills, methods and procedures.
 Use appropriate investigation to inform actions.
 Review how effective methods and actions have been.
Autonomy and accountability
 Take responsibility for initiating and completing tasks and procedures, including, where
relevant, responsibility for supervising or guiding others.
 Exercise autonomy and judgement within limited parameters.
Assessment
The assessment consists of a total of eight tasks.
Five short-answer tasks assess the candidate’s knowledge of the principles of VAT and their ability to
understand and interpret VAT guidance given to them. Some simple calculations will be required. A
number of the tasks will be multiple-choice or true/false statements.
Three longer tasks will require: the preparation of certain figures for inclusion on the VAT return;
completion of all seven boxes for an online VAT return from information extracted from the accounting
system, including identifying the figures that are automatically calculated by the online return (for total
output tax and for the net amount to be paid or reclaimed); a short piece of communication to an
internal person.
The assessment material will normally be provided by AAT and delivered online. Details of additional
reference material that is available in the assessment will be provided in advance of the assessment.
Alternatively, with guidance and support from training providers students can provide workplace
evidence to be assessed locally by their training provider. The local assessor (training provider) will
be required to ensure that all assessment criteria are covered.
Professional Ethics (PETH)
Assessment duration: two hours and 30 minutes.
When making assessment decisions, the assessor must exercise professional judgement in
concluding whether the evidence the student has presented confirms that they are competent across
the assessment criteria for the unit.
Summary
Achievement at Level 3 reflects the ability to identify and use relevant understanding, methods and
skills to complete tasks and address problems that, while well defined, have a measure of complexity.
It includes taking responsibility for initiating and completing tasks and procedures as well as
exercising autonomy and judgement within limited parameters. It also reflects awareness of different
perspectives or approaches within an area of study or work.
Knowledge and understanding
 Use factual, procedural and theoretical understanding to complete tasks and address.
problems that, while well defined, may be complex and non-routine.
 Interpret and evaluate relevant information and ideas.
 Be aware of the nature of the area of study or work.
 Have awareness of different perspectives or approaches within the area of study or work.
Application and action
 Address problems that, while well defined, may be complex and non-routine.
 Identify, select and use appropriate skills, methods and procedures.
 Use appropriate investigation to inform actions.
 Review how effective methods and actions have been.
Autonomy and accountability
 Take responsibility for initiating and completing tasks and procedures, including, where
relevant, responsibility for supervising or guiding others.
 Exercise autonomy and judgement within limited parameters.
Assessment
Students will be assessed by completion of a computer-based project, consisting of nine tasks, which
will include a broad range of topics across the assessment criteria for this unit.
Five tasks will each require a more discursive response. These will be based on a scenario in a single
accountancy practice but will each have different matters to be considered. Four tasks will be short
answer questions and unrelated to that organisation.
The purpose of the assessment as a whole is to assess whether students are competent in knowing,
understanding, applying, acting on and resolving ethical and sustainability issues for accounting and
finance professionals in the workplace. The tasks requiring more discursive responses will in addition
assess the ability of the student to review information autonomously, to exercise professional
judgement and to express an opinion for which they will be accountable.
Guidance for assessors for AAT assessments will include sufficient guidance to enable the assessors
to confidently derive Competent and Not Yet Competent performance decisions. When making
assessment decisions, the assessor must use their professional judgement when concluding whether
they are satisfied that the evidence the student has presented confirms that they are competent
across the assessment criteria for the unit.
Students judged competent will demonstrate:
 knowledge and understanding of the topics covered in the professional ethics unit
 clear communication of the nature of professional ethics and sustainability, and how these
concepts are applied in the workplace
 appropriate evaluation and interpretation of the issues raised in a defined scenario
 awareness of the different challenges that face accountants in practice as opposed to those in
business
 application of knowledge and understanding to complex and non-routine problems, within
limited parameters
 appropriate investigation of issues arising in problems so that informed action is taken
 thoughtful review processes of the effectiveness of actions taken/recommended
 ability to tackle problems independently
 willingness to take responsibility for recommending, initiating and completing actions
 exercise of professional judgement in formulating responses to problems
Spreadsheet Software (SDST)
Assessment duration: two hours and 30 minutes.
Summary
An assessment should not present any surprises to a well-prepared student.
This is a skills unit where students are required to demonstrate they have the skills to be able to use
spreadsheet software competently to create spreadsheets and enter, edit and manipulate data to
meet organisational requirements. They will have to show competence in using techniques for data
analysis and auditing tools. The assessment for this unit will be project based and, as many students
will be using spreadsheets within their working environment, this can be either:
 work based evidence – for those students currently working (paid or voluntary) in an
accounting or other environment where they can generate the evidence necessary to
demonstrate their competence in using spreadsheet software
 work based evidence may be generated from work which occurs in the day to day role of the
student; or from a specific project designed by the employer when spreadsheets are designed
for a particular purpose. Work based evidence may include samples of spreadsheets where
the student has input and amended data, samples of spreadsheets designed by the student
for a specific purpose, observation by the assessor or witness testimony
 work based evidence must cover all of the assessment criteria from all three learning
outcomes for this unit. If all of the assessment criteria are not covered by the work based
evidence then the assessor can create questions, tasks or short exercises to cover very small
gaps. These should be stored with the work based evidence
 any work based evidence should be of sufficient depth to prove competence, but there is no
need to include spreadsheets that are lengthy, when a sample of this work will be sufficient to
make a competent assessment decision. This must be mapped to the standards and using
the unit guidance
 spreadsheets devised in the working environment may be included – they do not all have to
relate to the same subject or client
 there must be a statement to support work based evidence from the student that all the
evidence provided is their own unaided work and all evidence must be signed and dated by
the student. There must also be a letter or other document from the workplace, which attests
to the authenticity and agreement that this is the student’s own unaided work.
OR

by AAT assessment – where students will be required to complete a series of tasks, based
upon a case study, provided by the AAT, which will cover all three learning outcomes.
The AAT case study assessment will be assessed by a qualified assessor (or a trainee assessor,
registered for and working towards a recognised assessor qualification) employed by the training
provider. Assessor guidance will be provided by AAT that will include sufficient guidance to enable the
assessors to confidently derive Competent and Not Yet Competent performance decisions. When
making assessment decisions, the assessor must be satisfied that the evidence the student has
presented confirms that they are competent across the assessment criteria for the unit.
Students may not mix assessment methods – assessment must be either work based evidence or
AAT case study
In the assessment students will have to demonstrate their competence in:
 LO1 - Use a spreadsheet to enter, edit and organise numerical and other data. This will be
assessed by the student designing and using a spreadsheet and identifying what numerical
and other information is needed in the spreadsheet and how it should be structured Students
must be able to store and retrieve spreadsheets – therefore they could be assessed on using
folders (for example create and name) and files (for example, create, name, open, save, save
as, print, close, find, share); or on their ability to import/export files into other documents and
archive information (backup and restore).

LO2 - Select and use appropriate formulas and data analysis tools and techniques to meet
requirements. The assessment should ensure that students are able to summarise
information in a variety of ways, and can identify the most appropriate method. The
assessment should cover the use of a range of functions, the use of formulas and forecasting
tools. Students will also be assessed on their ability to identify and use the correct technique
to analyse and interpret data to meet organisational or other given requirements and identify
and use the most appropriate formulas for specific purposes. Short answer questions may be
used to assess student’s ability to choose appropriate techniques if necessary.

LO3 - Use tools and techniques to present, format and publish spreadsheet information. The
ability to check information for accuracy and present information suitable for a range of users
is an important skill. The assessment should cover the presentation of spreadsheet
information in different ways. Students should be able to produce spreadsheets which are of a
publishable standard, including charts and graphs. The assessment should allow students to
demonstrate an ability to use appropriate formatting, for cells, rows, columns and worksheets
on their evidence. Students will also be assessed on their ability or knowledge of how to
check spreadsheets for problems or errors. This can be evidenced by finding errors within
spreadsheets or the use of short answer questions.