AAT Level 2 exam stands for Automated External Accountancy. This is a test that can be taken after completing Level 1, or if you have already passed this level. This will give you the opportunity to study for further examinations, which will give you a qualification if you want to become a Chartered Accountant (CAA). However, before moving onto the next stage you may want to consider whether or not you are ready for this degree. There are a few things you should think about before you start.
First you must decide what type of aat level 2 examination you wish to sit aat level 2. There are two options: a synoptic assessment or a unit assessment. A synoptic examination is an examination that covers a large number of topics, usually between six and ten topics depending on the level of your qualification. Unit assessments are usually shorter, covering either four or eight topics, although this may vary according to the unit.
The second part of aat level 2 is all about reading and writing. You will need to know how to read accounts and journals, how to prepare accounting documents and how to analyse accounting transactions. You will need to be able to write well and understand the small print, such as the sections of tax codes. If you have already completed your education and your accounting background is satisfactory then you will be expected to pass a similar section of the exam. You will need to demonstrate your knowledge of these topics by answering detailed questions.
As part of your at level 2 preparation you will want to review all of the topics covered in chapter one of the accountancy curriculum aat level 3. These include an introduction to the concepts and terminology associated with accounting, including definitions and explanations of terms, principles and concepts, database design and administration, accounting data, and financial statement analysis. At this point you will need to apply your learned concepts to a real life example. To do this you should select an accounting procedure and examine the results obtained by applying it to a company’s records. It is also important to note that this chapter of accountancy curriculum requires you to demonstrate that you understand the concepts presented within it, through example, and explain how these concepts can be applied in an actual accounting situation.
During your aat level 2 preparation you will be required to write a summary of your academic studies. This should include any research you have completed and the results of your examinations. It should also highlight any part of accountancy that you find particularly interesting, and the applications that you think might be useful in the workplace. This part of accountancy is referred to as ‘problem solving’. You will need to show that you can successfully apply your knowledge of problem solving techniques to a real world accounting situation. It is important however, that you understand that the accounting profession only tolerates those who demonstrate a high standard of performance.
In the final part of your at level 2 examination you will have to demonstrate that you are fully prepared to undertake the additional modules and examinations required from the second year onwards. The final section of this part of the examination involves modules which focus on company and personal development. These are normally prepared by a panel of experts who will select a topic for you to read up on and then present to you, one at a time, their opinion on the topic. Whilst each author is usually chosen at random, you may wish to consider reading one in particular to become more knowledgeable about it before approaching it with a mind to take it on board at a later stage. The majority of authors will provide a short synopsis of their own personal experience, along with their view of what an accountant should be, and should strive to leave you with a clear and concise impression of their opinion. As always, it is recommended that you confirm these opinions with further research yourself.