Finance and Management


07 May 2023 14:36 PM | UPDATED 1 year ago







  • Read this document in its entirety
  • Contextualise the activities, observations/demonstrations and other submitted evidence to ensure it reflects the learner cohort. Check this against the mapping, to ensure it is still valid
  • Ensure that workplace (or simulated environment for learners that are not working) is suitable for the parameters of any required task, to ensure the learners will have an appropriate opportunity to demonstrate their skills
  • If observations are undertaken on the job/in a simulated environment, discuss the assessment methods with the third party, so that they are aware of what is required of them (e.g. using the Third Party Observations/Demonstrations document), as well as any modifications that may be required in the workplace
  • Ensure that the learner is allocated the appropriate time and resources required for the tasks
  • If appropriate, determine and agree with the third party an acceptable timeframe for each observation
  • Advise the learner prior to conducting observation/assessment:
    • what will occur throughout the assessment process
  • when the assessment will occur
  • the level of competency expected
  • Confirm arrangements for the third party to observe the learner in the workplace with the learner and the third party
  • Ensure that the third party understands the requirements and instructions regarding the Third Party Observations/Demonstrations
  • Never tell the learner how to perform a task or answer a question, as that would render the assessment invalid – the expectation is that the learner should know this prior to commencing the assessment
  • Use the checklists and answer guides to assist you with marking, but never show or share them with the learner or the third party.


  • The third party must be someone in a position to make a valid comment on performance of the learner, e.g. a line manager
  • You may use the third party at your discretion, when you feel the learner has not given a satisfactory response for any of the criteria in the unit of competency. Therefore, you may not need third party evidence for all of the performance criteria.


  • Establish and oversee the evidence-gathering process to ensure it remains valid, sufficient, authentic, current and flexible
  • Advise the learner when to commence the SITXFIN002 INTERPRET FINANCIAL INFORMATION assessment
  • Gather supporting documents, where available and appropriate, as evidence to help you make a judgement of the learner’s competency
  • Record observations and evidence against the checklist
  • Where a checklist point is not observable due to reasons outside the learner’s control, modify the scenario to allow the learner an opportunity to perform the task in question
  • Do not interfere with the assessment unless the learner’s actions impose a risk of harm
  • If there is an error, record it
  • When the assessment is complete, advise the learner and record your comments in the relevant section. You must determine whether they are competent (C) or not yet competent (NYC).


  • The learner needs to be deemed satisfactory for all of the criteria in the unit to gain competency
  • If you are in doubt of the learner’s competency, gather further evidence to guide your decision. For example, this may include asking supplementary questions or requesting a portfolio of evidence from the learner
  • Assess learners on their performance in this unit, not on actions before or after the assessment (unless a portfolio of evidence is required)
  • Use the checklists and your professional judgment to determine the final outcome. However, if the learner’s performance in the assessment does not reflect

performance during the course, consider undertaking an oral quiz or other supplementary assessment

  • If you are marking the learner NYC (Not Yet Competent), ensure you outline why you have made this decision, and provide advice on how the learner can improve skills/knowledge prior to their next attempt.

When using evidence you have gathered on the learner to judge their competency, the following criteria will need to be met (as applicable to the unit of competency):

  • All the performance criteria elements have been addressed to the required standard (set out in the unit of competency)
  • The knowledge evidence/required knowledge has been demonstrated
  • The performance evidence has been practically demonstrated
  • The foundation skills/required skills have been practically demonstrated
  • The assessment conditions/critical aspects of assessment have been met
  • The context and consistency of assessment are addressed to appropriate AQF level
  • The learner has been assessed through a range of assessment methods
  • The learner has completed all assessments to the levels defined in the assessor workbook (as stated in the Learner Workbook activity answers and summative assessment answers).


  • Provide learners with:
  • clear and constructive feedback based on the assessment decision
  • information on ways of overcoming any identified gaps in competency revealed by the assessment
    • the opportunity to discuss the assessment process and outcome
  • information on reassessment and the appeals process
  • an opportunity for reassessment, if appropriate
  • Regardless of the outcome of the assessment, provide all learners with a copy of the completed checklist, ensuring the comments section is completed.
  • Where the learner’s performance is deemed not yet competent, provide detailed feedback on the criteria they need to improve upon, if requested
  • Record and report the outcome of assessment for each learner.

Observation/ demonstration

Throughout this unit, the learners will be expected to show their competency of the elements through observations or demonstrations. As trainer/assessor, you will compile a list of demonstrations that you recognise the leaners will need to complete, or tasks to be observed. Any required observations and demonstrations will need to be completed, as well as the activities found in the Learner Workbook.

An explanation of observations and demonstrations:

Observation is on-the-job

The observation will usually require:

  • Performing a work based skill or task
  • Interaction with colleagues and/or customers.

Demonstration is off-the-job

A demonstration will require:

  • Performing a skill or task that is asked of you
  • Undertaking a simulation exercise.

You will need to inform each learner which one of the above they will be required to do. The observation/demonstration will cover one of the unit’s elements.

The observation/demonstration will take place either in the workplace or the training environment, depending on the task to be undertaken and whether it is an observation or demonstration. As trainer/assessor, you will ensure each learner is provided with the correct equipment and/or materials to complete the task. Learners should also be informed on how long they have to complete the task.

Learners should be able to demonstrate the skills, knowledge and performance criteria required for competency in this unit, as seen in the Learner Guide.


Where learners are unable to complete the tasks in the methods specified due to situations beyond your/their control, you will need to make reasonable adjustments.

These will be dependent on the specific needs of the learners.

While learner needs will vary on an individual basis, examples are given below:

Learner workbook written answers

If the student is unable to write (e.g. due to a disability or injury), you may ask them questions verbally and record their responses on an audio device.

Also, you have the option of asking supplementary questions to confirm their competency in a given criteria, if necessary.

Skills activity

If the learner is unable to demonstrate their skills at the time of your presence, for whatever reason, they could provide a video demonstration to the assessor, or obtain third party evidence of them demonstrating the skills in question.

Knowledge activity

If the learner is unable to verbally answer questions, for whatever reason, they could provide written answers to the questions, or provide an audio recording of their answer at a later date.

Performance activity

If the learner is unable to perform the required practical tasks at the time of asking, for whatever reason, they may provide video evidence at a later date, or complete the task in a simulated environment, with evidence given by the designated third party, if required.


In addition to the SITXFIN002 INTERPRET FINANCIAL INFORMATION assessments provided in this unit, learners may also display competence through additional evidence.

This may include, but is not limited to:

  • Workplace evidence
  • Portfolios
  • Existing qualifications
  • Workplace documents
  • Case studies
  • Research
  • Reports.

This additional evidence may be submitted by the learner or their third party, but should be subject to validation by the assessor.


Complete the following activities individually or in a group (as applicable to the specific activity and the assessment environment).


ObjectiveTo provide you with an opportunity to identify and interpret the range of financial information and reports required to monitor business performance.
 Why is it important to monitor financial performance indicators closely? Give five examples of types of financial information that you are required to monitor in your organisation.  


ObjectiveTo provide you with an opportunity to interpret financial information and reports applicable to operational or departmental activities.
 Why can it be beneficial to monitor finances at a departmental or operational level, as opposed to at an organisational level? Give examples of three types of financial documentation.  


ObjectiveTo provide you with an opportunity to review financial information for impacts on operational activities and resolve discrepancies according to own level of responsibility.
 How does your position and level of authority in your organisation affect the action that you can take to change financial activities? What should you do if financial data tells you that operational changes need to be made, but you don’t have the authority to make those changes?  


ObjectiveTo provide you with an opportunity to routinely provide information on operational or departmental financial activities within required timelines.
 What methods do you use to report financial information, and how often are you expected to compile reports on the organisation’s financial status?  


The summative assessments are the major activities designed to assess the learner’s skills, knowledge and performance, as required to show competency in this unit. These activities should be completed after finishing the Learner Guide. These should be completed as stated under the trainer/assessor instructions.

Skills, knowledge and performance may be termed as:

  • Skills – skill requirements, required skills, essential skills, foundation skills
  • Knowledge – knowledge requirements, required knowledge, essential knowledge, knowledge evidence
  • Performance – evidence requirements, critical aspects of assessment, performance evidence.

Section A: Skills Activity

The Skills Activity is designed to be a series of demonstrative tasks that should be assessed by observation (by the assessor or third party, depending on the circumstances).

It will demonstrate all of the skills required for this unit of competency, and observation should be recorded in the relevant section of the Observations/Demonstrations document.

Section B: Knowledge Activity (Q & A)

The Knowledge Activity is designed to be a verbal questionnaire where the assessor asks the learner a series of questions to confirm their competency for all of the required knowledge in the unit of competency.

Section C: Performance Activity

The Performance Activity is designed to be a practical activity performed either in the workplace or a simulated environment. The learner should demonstrate the required practical tasks for the unit of competency and be observed by the assessor and/or third party, as applicable to the situation.

The observation should be recorded in the relevant section of the Observations/Demonstrations document.

Note: The learner should have completed written answers, portfolios or any evidence of competency should be attached to the learner workbook.



Objective: To provide you with an opportunity to show you have the required skills for this unit.

This activity will enable you to demonstrate the following skills:

  • Writing skills to:
    • prepare explanatory notes to accompany financial information
  • Technology skills to:
    • use accounting software packages

Answer the activity in as much detail as possible, considering your organisational requirements.

All activity answers will vary depending on the learner and the organisation they work for but the learner should be able to demonstrate their competency in the unit requirements.

  1. Using your writing skills, compile a detailed profit/loss report for one month of business activity. Make sure you include all financial activity from all departments and operations.
  • Using your technological skills, create a graph showing cash flow for one month of business activity. You can create this graph on any software, as long as it permitted for use by your organisation.
  1. The learner must demonstrate that they can create a clear and detailed profit/loss report, either using computer software or drafting it by hand. They should include all areas of expenditure and income. Expenditure details may include labour costs, general overheads, maintenance costs, invested money, tax, and marketing/advertising. Income details may include sales revenue, rentals, and credit payments. The learner must reach an accurate figure for net and gross profit/loss.
  • The learner should demonstrate their ability to use computer software to create a line graph which shows accurate cash flow data for a month of business activity. The overall financial balance of the organisation should be clearly displayed as cash leaves and comes into the business. The learner will need to enter data into software correctly, so that any graph generated is accurate.


Objective: To provide you with an opportunity to show you have the required knowledge for this unit.

The answers to the following questions will enable you to demonstrate your knowledge of:

  • Specific industry sector and organisation:
    • financial terminology specific to financial reportreporting periods and different financial years observed by different businesseskey features and functions of accounting software programs used to manage financial operationsuse of financial information and reports in monitoring overall business performanceOperational or departmental financial activities relevant to the sector:
      • average customer spenddaily, weekly and monthly transactionsdepartmental expenditure on:
        • labourstock purchasedwastage
        departmental income:
        • covers and gross incomecommission earningsoccupancy and gross incomesales
        outstanding accounts:
        • payablereceivable
        quotations realised to salessales performancestock levelsvariance from budget
    • Types of financial reports and their purpose:
      • budgets
      • cash flow
      • covers
      • expenditure
      • labour and wages
      • occupancy rates
      • purchases
      • receivables
      • sales
      • stock
      • transactions
      • transactions exempted
      • units sold
      • variance
  • wastage
    • Key elements of financial record-keeping and key terminology:
      • ledgers, subsidiary ledgers and journals
      • transactions, receipts and disbursements
      • invoices, accounts payable, debtors and creditors
      • cash flow
    • Key elements of accounting and how it provides information for business management:
      • charts of accounts and account categoriesbasic rules for double-entry accounting and the concept of debits and creditsaccrual versus cash accountingprofit and loss statements and balance sheets as key financial statements used to measure business performance:
        • purposehow these reports are generatedformatfeatureskey information
        • purposedifferent types of reconciliation, and the impact of unpresented chequesbank chargesdirect debits and credits
        concept of costing, and fixed and variable costs
      • accounting for and reporting goods and services tax (GST)

Answer each question in as much detail as possible, considering your organisational requirements for each one.

All answers will vary depending on the learner and the organisation they work for but the learner should be able to answer each question competently.

  1. State how often you have to compile financial reports in your organisation. Specify why this level of regularity suits the business and industry you work in.
  • Describe how sales performance can impact on organisational activity, such as recruitment.
  • Choose three types of financial report and explain what purpose each of them serves.
  • Define ‘cash flow’.
  • What information should a profit/loss statement include?


Objective: To provide you with an opportunity to demonstrate the required performance elements for this unit.

This activity will enable you to demonstrate the following performance evidence:

  • Correctly complete each of the following financial information documents or reports used to monitor overall business performance:
    • account summaries and balancesbalance sheetsbank deposit documentationbank statementsbanking summariesbusiness activity statementscredit card transaction statementsinvoicesjournal entriesmerchant statementsmerchant summariesprofit and loss statementstrial balance
    • Provide financial information using correct financial terminology on six different operational or departmental financial activities listed in the knowledge evidence

Answer the activity in as much detail as possible, considering your organisational requirements.

All SITXFIN002 INTERPRET FINANCIAL INFORMATION activity answers will vary depending on the learner and the organisation they work for but the learner should be able to demonstrate their competency in the unit requirements.

  1. The learner must compile the following reports, while adhering to organisational standards. Each report must be laid out clearly and include the correct details for a specific timeframe.

The learner must complete one:

  • Account summary and balance
    • Balance sheet
    • Bank deposit documentation
    • Bank statement
    • Banking summary
    • Business activity statement
    • Credit card transaction statement
    • Invoices
    • Journal entry
    • Merchant statement
    • Merchant summary
    • Profit and loss statement
    • Trial balance.
  • Complete detailed expenditure reports on six different departments or large operational tasks. You must identify and record all types of expenditure accurately, before compiling this data into a clear report.
  • The learner should demonstrate that they can use organisational computer software to create a range of accurate reports and documentation, using templates if necessary. They will need to identify and collect a range of financial data from individual departments if they are to compile the reports listed. For each document, they will need to be able to pinpoint the exact data needed and be able to arrange this data so that it is easy to read and understand.
  • The learner must show that they have a strong knowledge of expenditure in departments across their organisation and be able to include these details in six expenditure reports. They must be able to examine individual departments to establish how much is spent in different areas. Areas of expenditure may include labour costs, general overheads, marketing/advertising, manufacturing, tax, maintenance, and new technology. The learners should ensure that all figures are accurate, before including them in a clear and easy-to-understand report.


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