CAF SYLLABUS5 CAF Syllabus Spring 2020 Syllabus Ref Contents Level Learning Outcomes Proficiency Testing materiality, prudence, going Elements of financial statements (meaning) - Assets,

CAF SYLLABUS Spring 2020

1 CAF Syllabus Spring 2020

SYLLABUS

Proficiency level and testing level mentioned against each content of the syllabus are explained as follows:

1. Proficiency Level

a. Level 1

This level requires understanding and awareness of the subject matter and related concepts. The candidates will be expected to have ability to understand the nature of basic concepts.

b. Level 2 This level requires good understanding and detailed evaluation of the subject matter and related concepts, along with the ability to apply concepts and skills in simple professional scenario. The candidates will be expected to have ability to provide reasonable justification and logical explanation to support their professional judgment and decision making.

c. Level 3 This level requires in-depth understanding of the subject matter and related concepts. The candidates will be expected to have ability to critically examine and evaluate all concepts and available information to make firm professional judgments and make decisions.

2. *Testing Level and assessment of contents of earlier stages of qualification

The following policy for testing level and assessment of contents shall be applicable for Accounting related subjects i.e. (CAF 1 Introduction to Accounting, CAF 5 Financial Accounting and Reporting-I, CAF 7 Financial Accounting and Reporting-II and CFAP 1 Advanced Accounting and Financial Reporting)

a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8 marks per topic in an attempt.

b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per question as 8, 20 and 25, respectively.

c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a maximum limit of 35 marks in aggregate in an attempt.

*Explanation: A topic of CAF 1 can be examined in CAF 5, CAF 7 and CFAP 1 even if it is not in the

syllabus or study material of the later stage papers, likewise CAF 5 topics can be examined in CAF 7 and

CFAP 1; and CAF 7 topics can be examined in CFAP 1.


TABLE OF CONTENTS

Syllabus Page No.

CERTIFICATE IN ACCOUTING AND FINANCE

CAF-1 INTRODUCTION TO ACCOUNTING 03

CAF-2 INTRODUCTION TO ECONOMICS AND FINANCE 10

CAF-3 BUSINESS LAW 21

CAF-4 BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES 34

CAF-5 FINANCIAL ACCOUNTING AND REPORTING I 42

CAF-6 PRINCIPLES OF TAXATION 47

CAF-7 FINANCIAL ACCOUNTING AND REPORTING II 53

CAF-8 COST AND MANAGEMENT ACCOUNTING 59

CAF-9 AUDIT AND ASSURANCE 67

PCSC PRESENTATION AND COMMUNICATION SKILLS COURSE 80

GWE 01 *GATEWAY EXAMINATIONS 81

GWE 02 *GATEWAY EXAMINATIONS 84


CAF-1 CERTIFICATE IN ACCOUNTING AND FINANCE

INTRODUCTION TO ACCOUNTING

Objective

To enable candidates to equip themselves with the fundamental concepts of accounts needed as a foundation

for higher studies of accounting.

Learning Outcome

On the successful completion of this paper candidates will be able to:

1 understand the nature of accounting, elements of accounts, double entry rules and conceptual framework for financial reporting.

2 identify financial transactions and make journal entries.

3 prepare general ledger accounts and a trial balance.

4 make period end adjustments prior to the completion of financial statements.

5 have familiarity with the items shown on the face of statement of financial position and statement of comprehensive income.

6 prepare partnership accounts.

7 understand the basic concepts given in international accounting standards on inventories and Property, plant and equipment.

Grid Weighting

Introduction to accounting and book keeping 20-30

Adjustments including corrections of errors 20-30

Preparation of financial statements and partnership records 20-30

Inventories and Property, plant and equipment 20-30

Total 100

Note: * Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018


Syllabus

Ref Contents

Level Learning Outcomes

Proficiency

Testing

A Introduction to accounting

and bookkeeping

1 Introduction to accounting

Meaning of business

Mode of business organization (meaning) - sole proprietorship; partnership; limited company

Financial statements- components, responsibility, presentation, users

1 1 LO1.1.1: Explain the characteristic of a

business

LO1.1.2: Classify transactions that fall

under the definition of business

transactions

LO1.1.3: Describe the key features of sole

proprietorship, partnership and limited

company

LO1.1.4: Differentiate amongst the

features of sole proprietorship,

partnership and limited company

LO1.1.5: List the components of a set of

financial statements.

LO1.1.6: Explain the characteristics and

purpose of the statement of financial

position and the statement of

comprehensive income.

LO1.1.7: Describe the basic presentation

layout of statements of financial position

and statements of comprehensive

income.

LO1.1.8: Identify users of financial

information and describe how the

information is useful to them

2 Conceptual Framework for

Financial Reporting

Fundamental accounting concepts - accrual, consistency, true and fair view, materiality, prudence, completeness, going concern, substance over form

2

1 LO1.2.1: Explain the difference between

book-keeping and accounting

LO1.2.2: Understand and apply the main

accounting concepts, namely, accrual,

consistency, and completeness

LO1.2.3: Demonstrate familiarity with the

concepts of true and fair view,


Syllabus

Ref Contents


Proficiency

Testing

Elements of financial statements (meaning) - Assets, liabilities, equity, income, expense

materiality, prudence, going concern and

substance over form

LO1.2.4: Define and identify examples of

assets, liabilities, equity, income and

expenses

LO1.2.5: Apply the underlying concepts

of assets, liabilities, income and

expenses.

3 Accounting equation 2 1 LO1.3.1: Understand and apply the

accounting equation (Assets = Liabilities +

Equity)

4 Double Entry book keeping

system

Rules of debit and credit and Chart of accounts

Books of prime entry

Ledgers

Trial balance

2 2 LO1.4.1: identify financial and non-

financial transactions in a well-defined

scenario

LO1.4.2: Understand and apply the

concept of double entry accounting

LO1.4.3: Understand the use of business

documents as source of information

LO1.4.4: Understand the meaning of a

chart of accounts and explain its purpose.

LO1.4.5: Describe the basic contents of

the sales day book, sales ledger,

customer/debtors ledger, purchase day

book, purchase journal and purchase

ledger/creditors ledger

LO1.4.6: Understand the use and format

of the cash book and its types

LO1.4.7: Record their respective entries.

LO1.4.8: Describe the main features of

the general ledger

LO1.4.9: Post entries in the general

ledger


Syllabus

Ref Contents


Proficiency

Testing

LO1.4.10: Balance the ledger accounts as

required, make transfers to the final

accounts.

LO1.4.11: Understand the purpose of the

trial balance

LO1.4.12: Understand and demonstrate

mapping between general ledger

balances and the trial balance

LO1.4.13: Identify the limitations of a trial

balance.

B Adjustments including

corrections of errors

1 Allowance for bad debts and

write off

2 1 LO2.1.1: Estimate allowance for bad debts

based on a given policy

LO2.1.2: Post journal entry to record bad

debt expense

LO2.1.3: Compute and record write off

and understand its impact on allowance

for bad debts.

2 Prepayments and accruals 2 1 LO2.2.1: Understand the matching

concept that applies to prepayments and

accruals.

LO2.2.2: Post journal entries and ledger

entries for prepayments and accruals.

LO2.2.3: Post adjusting entries to

recognize revenues or expenses

3 Bank reconciliation and

related adjustments

2 2 LO2.3.1: Understand the need for a bank

reconciliation

LO2.3.2: Identify the main reasons for

differences between the cash book and

bank statements.

LO2.3.3: Prepare a bank reconciliation

statement in the circumstance of simple

and well explained transactions.


Syllabus

Ref Contents


Proficiency

Testing

LO2.3.4: Correct cash book errors and

post journal entries after identifying the

same in bank reconciliation statement

4 Correction of errors in record

keeping

2 2 LO2.4.1: Identify the types of error which

may occur in a record keeping system

LO2.4.2: Calculate and understand the

impact of errors on the financial

statements within a reporting period

LO2.4.3: Prepare journal entries to

correct errors that have occurred within a

reporting period

C Preparation of financial

statements and partnership

records

1 IAS 1: Preparation of

financial statements

Statement of financial position (items to be shown on the face)

Statement of Comprehensive Income (items to be shown on the face)

2 2 LO3.1.1: Prepare face of the statements of

financial position from information

provided (No adjustments with regard to

dividend, taxation and share capital).

LO3.1.2: Prepare face of statement of

comprehensive income from information

provided (No adjustments with regard to

dividend and taxation.

2 Preparation of partnership

account

2 2 LO3.2.1: Define a partnership and state its

essential elements

LO3.2.2: Understand goodwill

LO3.2.3: Prepare

Capital account

Current account LO3.2.4: Prepare a profit and loss

account and a statement of financial

position of a partnership.


Syllabus

Ref Contents


Proficiency

Testing

D Inventories & Property,

Plant and equipment

1 IAS 2: Inventories 2 2 LO4.1.1: Calculate cost of inventory in

accordance with IAS-2 using data

provided including cost of purchase, cost

of conversions, and other costs.

LO4.1.2: Describe net realizable value

(NRV)

LO4.1.3: Explain the situation when the

cost of inventories may not be

recoverable.

LO4.1.4: Demonstrate the steps in

measuring inventory at lower of cost or

NRV.

LO4.1.5: Post journal entries for

adjustments in carrying value (excluding

reversal of write downs)

LO4.1.6: Understand the disclosure

requirements and prepare extracts of

necessary disclosures (excluding pledged

inventories and reversal of write downs)

2 IAS 16: Property, plant and

equipment (other than

disclosure and revaluation)

2 2 LO4.2.1: Calculate the cost on initial

recognition of property, plant and

equipment in accordance with IAS-16

including different elements of cost and

the measurement of cost

LO4.2.2: Analyse subsequent expenditure

that may be capitalised, distinguishing

between capital and revenue items.

LO4.2.3: Explain the nature of

depreciation expense and accumulated

depreciation

LO4.2.4: Compute depreciation for assets

using different depreciation methods


Syllabus

Ref Contents


Proficiency

Testing

LO4.2.5: Post journal entry to record

depreciation expense

LO4.2.6: Account for de-recognition of

property, plant and equipment recognised

earlier under cost methods

LO4.2.7: Understand the disposal of Fixed

Assets and gain/loss on disposal

LO4.2.8: Post journal entries of disposal

and gain or loss on disposal

*Testing Level and assessment of contents of earlier stages of qualification





CAF-2

CERTIFICATE IN ACCOUNTING AND FINANCE

INTRODUCTION TO ECONOMICS AND FINANCE

Objective

To enable candidates to equip themselves with the fundamental concepts of economics and finance needed as foundation for higher studies of finance.

Learning Outcome

The candidate will be able to:

1 understand the nature of micro-economics and its basic concepts

2 understand the nature of macro-economics and its relation with the measurement of economic growth

3 understand how the balance of payments of a country is worked out

4 understand the nature of banking systems

5 understand the basic function of financial markets.

Grid Weightage

Concepts of economics 5-10

Microeconomics 25-35

Macroeconomics 25-35

Introduction to banking system, financial markets and international trade 25-35

Total 100

Syllabus Ref

Contents Level Learning Outcome

A Concepts of economics

1 Fundamentals of economics 1 LO1.1.1: Overview of the definitions of economics put forward by Adam Smith, Alfred Marshall and Lionel Robbins

LO1.1.2: Describe the scope, objectives and importance of economics

LO1.1.3: Describe the concept of scarcity, kinds of scarce resources, choices and wants

LO1.1.4: Describe, with examples, the concept of economic problem and its implications for an economy


Syllabus Ref


LO1.1.5: Describe the concepts of

goods and services and identify various

types of goods namely merit goods,

demerit goods, public goods, private

goods, club goods and free goods

LO1.1.6: Explain with examples the four

factors of production and identify the

rewards of factors of production


economic agents, consumption,

production and specialisation, division

of labour, technology and capital

formation

LO1.1.8: Describe the production

possibility curve and its relevance to

the concept of opportunity cost

LO1.1.9: Differentiate between

microeconomics and macroeconomics

and their scope, importance and

limitations.

LO1.1.10: Distinguish income from

wealth.

2 Economic systems 1 LO1.2.1: Describe the major functions

of an economic system

LO1.2.2: Explain the salient features of

planned, mixed , market economy and

Islamic economic system

LO1.2.3: Provide example of a mixed

economy, a planned economy and a

market economy

LO1.2.4: Describe the merits and

demerits of planned, mixed and market

economies

LO1.2.5: Compare the Islamic economic

system with other economic systems.


Syllabus Ref


B Microeconomics

1 Demand 2 LO2.1.1: Define the concept of demand, state the differences between want and demand and individual and market demand

LO2.1.2: Define and explain law of demand with the help of schedule and graph and explain assumptions and limitations of the law

LO2.1.3: Identify the movements along and shifts of a demand curve and explain the factors responsible

LO2.1.4: Assess the practical importance of law of demand.

2 Supply 2 LO2.2.1: Define supply and differentiate

it from stock

LO2.2.2: State law of supply and explain

its assumptions

LO2.2.3: Interpret the relationship

between price and supply with the help

of schedule and graph

LO2.2.4: Describe movement along the

supply curve and shift in supply

LO2.2.5: Discuss the relation between

time and supply

LO2.2.6: Define reserve price and

discuss the factors influencing reserve

price

LO2.2.7: Assess the practical

importance of law of supply.

3 Equilibrium of demand and supply 2 LO2.3.1: Define the concept of market and market equilibrium

LO2.3.2: Explain the determination of price by equilibrium of demand and supply with the help of a schedule and graph

LO2.3.3: Explain the effect of changes in demand and supply on market equilibrium


Syllabus Ref


LO2.3.4: Discuss the determination of price of perishable and durable goods.

4 Elasticity of demand and supply 2 LO2.4.1: Define price elasticity of

demand and explain the degrees of

price elasticity of demand

LO2.4.2: Explain approaches to

measure price elasticity of demand

LO2.4.3: Explain practical importance

and determinants of price elasticity of

demand

LO2.4.4: Discuss income and cross

elasticity of demand and their practical

importance

LO2.4.5: Describe the concept of

elasticity of supply and explain the

percentage and graphical methods of

measurement of elasticity of supply

LO2.4.6: Describe the determinants of

supply elasticity.

5 Utility analysis and indifference curve 2 LO2.5.1: Define the term “utility”, total

and marginal utility

LO2.5.2: Explain the law of diminishing

marginal utility with the help of a graph

and a schedule

LO2.5.3: Explain the assumptions,

limitations and practical importance of

the law of diminishing marginal utility

LO2.5.4: Explain the law of equi-

marginal utility with the help of a

schedule and a graph

LO2.5.5: Explain the limitations and

practical importance of law of equi-

marginal utility

LO2.5.6: Describe the meaning and

characteristics of indifference curves

LO2.5.7: Explain Budget line and

consumer’s equilibrium through

indifference curve analysis


Syllabus Ref


LO2.5.8: Explain the income effect, price effect and substitution effect on consumer equilibrium.

6 Laws of production

2 LO2.6.1: Explain the law of variable

proportion and its assumptions

LO2.6.2: Explain the law of increasing returns its assumptions, application and impact on the cost of production

LO2.6.3: Explain the law of constant returns its assumptions and impact on the cost of production

LO2.6.4: Explain the law of diminishing returns its assumptions, application and impact on the cost of production.

7 Cost and revenue curves 2 LO2.7.1: Understand the concept of

cost of production and its further

classification into implicit and explicit

costs

LO2.7.2: Discuss short run curves of

total cost, total fixed cost, total variable

cost, average cost and marginal cost

with the help of a schedule and graph.

LO2.7.3: Derive a long run average cost

curve from a short run average cost

curve

LO2.7.4: Derive a long run marginal cost

curve with the help of total cost curve.

LO2.7.5: Explain the concept of

economies and diseconomies of scale

and their impact on the long run costs.


marginal revenue, total revenue and

average revenue

LO2.7.7: Define perfect competition,

state its features and explain revenue

curves under perfect and imperfect

competition.


Syllabus Ref


8 Equilibrium of firm in short and long run under perfect competition, monopoly, monopolistic competition and oligopoly

2 LO2.8.1: Understand the concept of equilibrium and the conditions of firm’s equilibrium under perfect competition

LO2.8.2: Explain short and long run equilibrium of a firm under perfect competition.

LO2.8.3: Understand the concept of equilibrium and the conditions of firm’s equilibrium under imperfect competition.

LO2.8.4: Define monopoly and describe its features

LO2.8.5: Explain short and long run equilibrium of a firm under monopoly

LO2.8.6: Explain price discrimination and advantages and disadvantages of monopoly.

LO2.8.7: Differentiate perfect competition from monopoly

LO2.8.8: Define monopolistic competition and state its features

LO2.8.9: Explain short run and long run equilibrium of a firm under monopolistic competition

LO2.8.10: Describe advantages and disadvantages of monopolistic competition

LO2.8.11: Define oligopoly and state its features

LO2.8.12: Explain price output determination under collusive oligopoly, the success and failures of cartel

LO2.8.13: Price output determination under non-collusive oligopoly including kinked demand and price leadership model

LO2.8.14: Describe advantages and disadvantages of oligopoly.


Syllabus Ref


C Macroeconomics

1 Measurement of national income including knowledge of basic concepts like GDP, GNP and NNP

2 LO3.1.1: Define national income , gross

domestic product, gross national

product, net national product, personal

income, disposable personal income

per capita, nominal and real GDP

LO3.1.2: Explain circular flow of

national income

LO3.1.3: Explain the product approach,

income approach and expenditure

approach to the measurement of

national income

LO3.1.4: State the difficulties usually

faced in measuring National Income.

2 Consumption, saving and investment functions

2 LO3.2.1: Define and explain

consumption, autonomous and induced

consumption, average and marginal

propensity to consume

LO3.2.2: Identify how Keynes’

Psychological law of consumption

explains the relationship between

consumption and income with the help

of average propensity to consume and

marginal propensity to consume curves

LO3.2.3: Explain the determinants of

the consumption function

LO3.2.4: Define and explain saving,

average and marginal propensity to

saving

LO3.2.5: Explain the determinants of

saving

LO3.2.6: Understand the stability of

consumption and saving functions in

the short run and discuss the reasons

thereof


Syllabus Ref


LO3.2.7: Understand the meaning of investment, induced investment and autonomous investment

LO3.2.8: Explain the relationship of investment with marginal efficiency of capital and interest rate

LO3.2.9: Explain classical and Keynesian approach to determine equilibrium level of output/income.

3 Multiplier and accelerator 2 LO3.3.1: Comprehend the effect of the multiplier on the level of national income and is limitations

LO3.3.2: Comprehend the principle of acceleration and its assumptions

LO3.3.3: Understand how the multiplier and accelerator interact and cause fluctuations in output.

4 Growth and recession 2 LO3.4.1: Understand different phases of the business cycle

LO3.4.2: Understand the indicators of growth and recession

LO3.4.3: Discuss the determinants of cost and benefits of growth.

5 Unemployment and Inflation

2 LO3.5.1: Describe the concept of

unemployment, full employment and

types of unemployment

LO3.5.2: Discuss the measures to

reduce unemployment

LO3.5.3: Understand concepts of

inflation, deflation, stag-flation, wage

spiral inflation, mild and hyperinflation

LO3.5.4: Explain the causes of inflation

and measures to overcome inflation

with special reference to Pakistan

LO3.5.5: Discuss the cost of inflation

and Phillips Curve

6 Fiscal policy 2 LO3.6.1: Explain the objectives of fiscal policy and how they are achieved through fiscal budgets


Syllabus Ref


LO3.6.2: Explain the limitations of fiscal

policy

LO3.6.3: Define direct, indirect,

proportional, progressive and

regressive taxation

LO3.6.4: Understand functions of

taxation, types of taxes and

characteristics of good tax policy

LO3.6.5: Explain the canons of taxation

LO3.6.6: Explain the advantages and

disadvantages of direct taxation

LO3.6.7: Explain the advantages and

disadvantages of indirect taxation

7 Public and private finance 2 LO3.7.1: Distinguish between public

finance and private finance

LO3.7.2: Explain the importance of

public finance stating its major

functions

LO3.7.3: State the major causes of

continuous increase in the public

expenditure of the nations

LO3.7.4: Explain the role of public

expenditure in developing countries

with special reference to Pakistan.

D Introduction to banking system, financial markets and international trade

a Banking system

1 Types of banks and financial institutions

1 LO4.1.1: Define a bank and describe its kinds

LO4.1.2: Describe the functions of a central bank.

2 Money and its value

1 LO4.2.1: Define the term “money”, describe its evolution, functions and the various forms it takes

LO4.2.2: Understand credit money, types of credit and its advantages and disadvantages


Syllabus Ref


LO4.2.3: Understand sources of the

money supply

LO4.2.4: Define interest rate, describe

its types and also explain the

determinants of interest rate

LO4.2.5: Understand the quantity

theory of money

LO4.2.6: Describe the Keynesian

liquidity preference theory and

Keynesian liquidity trap and define their

role in determining interest rates.

LO4.2.7: Understand the measurement

of the value of money

3 Monetary policy 1 LO4.3.1: Understand the meaning of

monetary policy

LO4.3.2: Understand the objectives of

monetary policy and the mutual conflict

of the objectives.

b Financial instruments and market-Meaning

1 Money market 1 LO5.1.1: Describe the main features

and objectives of money markets.

2 Capital markets. 1 LO5.2.1: Describe the main features

and objectives of capital markets.

3 Derivative market 1 LO5.3.1: Describe the main features

and objectives of derivatives and

derivative markets.

c International trade

1 Balance of trade and payment 2 LO6.1.1: Distinguish between balance

of trade and balance of payment

LO6.1.2: Understand the nature of

items that are accounted for the

concept of balance of trade and

payment

LO6.1.3: Understand the different parts

of balance of payment


Syllabus Ref


LO6.1.4: Explain the reasons of balance of payment deficit and measures to rectify it with special reference to Pakistan

LO6.1.5: Explain the concept of J curve and inverse J curve

LO6.1.6: Explain the concept of exchange rate, its determination and government’s policy to influence it.


CAF-3


BUSINESS LAW

Objective

To give students an understanding of the legal system and commercial laws; and build a knowledge base of corporate laws.

Learning Outcome

The candidate will be able to demonstrate:

1 basic knowledge of the legal environment

2 comprehension of laws governing contracts, partnership and negotiable instruments

3 knowledge of the legal terminology of company law and the basics of company incorporation

4 familiarity with the provisions governing the issuance of shares

5 knowledge of the management of companies

6 familiarity with investment by companies, financial accounts and distribution of profit

7 knowledge of the appointment and removal of auditors and their responsibilities and duties.

Grid Weightage

Introduction to legal system 5-10

Mercantile law

Contract Act, 1872 20-30

Partnership Act, 1932 10-15

Negotiable Instruments Act, 1881 10-15

50

Companies Act, 2017 and Securities Act, 2015

Preliminary and incorporation 8-15

Allotment and issuance of shares, registration of charge etc. 8-15

Management and administration 8-15

Investments, accounts etc. 8-15

Audit, appointment, removal, rights and duties of auditors etc. 8-15

Total 50


Syllabus Ref


A Introduction to the Legal System

Sources and process of legislation

1 Sources of law and an introduction to the Constitution of Pakistan

1 LO1.1.1: Briefly describe sources of law in Pakistan

LO1.1.2: Describe the basic structure of the constitution of the Islamic Republic of Pakistan.

2 Process of legislation and legal system in Pakistan

1 LO1.2.1: Define legislation and describe its forms

LO1.2.2: Briefly describe the process of legislation as per the Constitution

LO1.2.3: Identify and briefly explain the structure of the courts in Pakistan

LO 1.2.4 Explain alternate dispute resolution (ADR) and its advantages and disadvantages.

B Mercantile law

a Contract Act 1872

1 Introduction to the Law of Contract 2 LO 2.1.1: Define “contract”, “agreement” and “promise”

LO 2.1.2: Identify essential elements of a valid contract

LO 2.1.3: Be aware of factors which might affect the validity of a contract and their consequences

LO 2.1.4: Identify different types of a contract.

2 Offer and acceptance 2 LO 2.2.1: Define offer and acceptance

LO 2.2.2: Identify different types of offers

LO 2.2.3: Explain how offer is different from invitation of an offer

LO 2.2.4: Identify essential elements of offer and acceptance

LO 2.2.5: Understand the timing of revocation and its communication

LO 2.2.6: Identify circumstances when an offer lapses.


Syllabus Ref


3 Capacity of Parties 2 LO 2.3.1: Identify circumstances when a person is not competent to contract

LO 2.3.2: Be aware of consequences or enforceability of contracts with persons not competent to contract.

4 Consideration 2 LO 2.4.1: Define consideration and identify essentials of consideration

LO 2.4.2: Understand rules relating to consideration

LO 2.4.3: Identify agreements which are valid without consideration.

5 Free consent 2 LO 2.5.1: Define free consent

LO 2.5.2: Know the effect of absence of free consent

LO 2.5.3: Be aware of factors which may affect the consent

LO 2.5.4: Identify and explain coercion, undue influence, fraud, misrepresentation and mistake.

6 Legality of object and consideration and agreements opposed to public policy

2 LO 2.6.1: Identify circumstances where object or consideration is unlawful

LO 2.6.2: Identify agreements opposed to public policy.

7 Void agreement 2 LO 2.7.1: Be aware of circumstances or conditions when an agreement is considered as voidable / void

LO 2.7.2: Identify different types of voidable / void agreements.

8 Contingent contract 2 LO 2.8.1: Define contingent contract

LO 2.8.2: Identify characteristics of contingent contract

LO 2.8.3: Understand rules regarding contingent contract

LO 2.8.4: Understand the difference between contingent contact and wagering agreement.

9 Quasi contract 2 LO 2.9.1: Know meaning of quasi contract

LO 2.9.2: Understand and apply rules regarding quasi contract


Syllabus Ref


LO 2.9.3: Be aware of different kinds of quasi contract.

10 Performance of a contract 2 LO 2.10.1: Explain performance and its types i.e. actual and attempted

LO 2.10.2: Understand rules relating to joint and reciprocal contracts and appropriation of payment

LO 2.10.3: Identify essentials of a valid tender

LO 2.10.4: Define tender and explain its types and effects. Describe the essentials of a valid tender

LO 2.10.5: Identify factors which may affect the performance of a contract

LO 2.10.6: Understand and apply rules relating to joint and reciprocal promises

LO 2.10.7: Understand the meaning of appropriation of payment and rules regarding appropriation of payment

LO 2.10.8: Explain the assignment of contracts.

11 Discharge of a contract 2 LO 2.11.1: Understand the meaning of discharge of contract

LO 2.11.2: Identify modes of discharge of a contract: discharge by performance, by consent, operation of law, impossibility of performance, lapse of time and breach (actual and anticipatory)

LO 2.11.3: Understand rules relating to discharge of a contract.

12 Remedies for breach of contract 2 LO 2.12.1: Explain the remedy

LO 2.12.2: Describe the various remedies available in case of breach of a contract

LO 2.12.3: Understand rules relating to amount of damages

LO 2.12.4: Identify and explain different kinds of damages

LO 2.12.5: Understand the remoteness of damages.


Syllabus Ref


13 Indemnity and guarantee 2 LO 2.13.1: Define contract of indemnity and contract of guarantee. Differentiate between contract of guarantee and indemnity

LO 2.13.2: Identify parties in a contract of indemnity and contract of guarantee

LO 2.13.3: Differentiate between contract of guarantee and indemnity

LO 2.13.4: Describe the rights of indemnity holder

LO 2.13.5: Identify the essentials of the contract of guarantee

LO 2.13.6: Understand the kinds of guarantees i.e. specific and continuing, and revocation of continuing guarantee

LO 2.13.7: Describe rights and responsibilities of surety

LO 2.13.8: Explain how surety is discharged

LO 2.13.9: Understand rules relating to indemnity, guarantee and surety.

14 Bailment and pledge 2 LO 2.14.1: Define bailment and identify the essentials of the contract of bailment

LO 2.14.2: Explain the types of bailment

LO 2.14.3: Identify duties and rights of the bailor and bailee

LO 2.14.4: Explain how contract of bailment is terminated

LO 2.14.5: Identify rights and duties of finder of goods

LO 2.14.6: Explain pledge (pawn), pledgor (pawnor) and pledgee (pawnee)

LO 2.14.7: Explain rights of pledgor and pledgee

LO 2.14.8: Understand the rules of pledge by non-owners

LO 2.14.9: Differentiate between bailment and pledge.


Syllabus Ref


15 Agency 2 LO 2.15.1: Define agency, agent and principal and explain types of agents

LO 2.15.2: Identify rights and duties of the agent and principal

LO 2.15.3: Understand rules relating to agency

LO 2.15.4: Differentiate between sub agent and co-agent

LO 2.15.5: Explain how an agency can be created

LO 2.15.6: Understand the circumstances when an agent is personally liable

LO 2.15.7: Identify irrevocable agency

LO 2.15.8: Explain how an agency can be terminated

LO 2.15.9: Understand the meaning of undisclosed agency, position of agent, principal and third party.

b Partnership Act 1932

1 Chapter I – Preliminary 2 LO3.1.1: Define the terms.

2 Chapter II - The nature of partnership 2 LO3.2.1: Understand and describe the partnership relationship, its creation and identify and explain the types of partnership and the mode of determining existence of a partnership.

3 Chapter III - Relations of partners to one another

2 LO3.3.1: Determine and explain the rights and duties of partners of the firm under various circumstances

LO3.3.2: Explain the provisions of the law relating to conduct of the business, property of the firm and personal profits earned by partners.

4 Chapter IV - Relations of partners to third parties

2 LO3.4.1: Describe the relationship of partners with third parties

LO3.4.2: Identify and explain the concepts of implied authority of the partner in relation to third parties, partner’s authority in an emergency, mode of doing act to bind the firm, effect of admissions by a partner, effect of notice to acting partner, liability of a


Syllabus Ref


partner for acts of the firm and liability of the firm for wrongful acts of a partner or misapplication by partners, principle of holding out in given situations

LO3.4.3: Identify and explain the rights and restrictions of transferee of a partner’s interest

LO3.4.4: Identify and explain the rights and liabilities of a minor admitted to the benefits of partnership.

c Negotiable Instruments Act 1881

1 Definitions and meanings (Section 1 to 25)

1 LO4.1.1: Define and explain terms LO4.1.2: Explain provisions relating to types of negotiable instruments and their maturity.

2 Discharge of liability (Section 82 to 90) 2 LO4.2.1: Identify and explain how the maker of a negotiable instrument is discharged from his liability under given scenarios.

3 Provisions relating to cheques (Section 122A to 131C)

2 LO4.3.1: Describe provisions relating to crossing of cheques

LO4.3.2: Briefly describe and differentiate between a cheque crossed generally and a cheque crossed specially and their payment modes.

C a Preliminary and incorporation

1 Definitions (Section 2 and 118 of Companies Acts,2017)

1 LO5.1.1: Define/describe the terms which are relevant to the areas covered in the syllabus.

2 Meaning of “holding company” and “subsidiary” (Section 2 (37), (68) of Companies Acts,2017)

2 LO5.2.1: Explain holding company and subsidiary company and when a company becomes a subsidiary or holding company of another company.

LO5.2.2: Apply the concepts of holding and subsidiary in simple scenarios.

3 Powers and functions of the Commission (Section 7 of Companies Acts,2017)

1 LO5.3.1: Demonstrate familiarity with the powers and functions of the Commission and the registrar.

4 Business and objects of a company (section 26 of Companies Acts,2017)

LO5.4.1: Describe the business and objects of a company


Syllabus Ref


5 Memorandum of association (Section 27,28,29,30,31,32,33,34, 35, 40 and 41 of Companies Acts,2017)

2 LO5.5.1: Describe the memorandum of association and state its purpose LO5.5.2: List/explain the clauses of memorandums of association of various types of companies and the form of memorandum of association

LO5.5.3: Describe the purpose and procedure of alteration to different clauses of a memorandum of association

LO5.5.4: Describe the effect of alteration/noting of alteration of memorandum of association

L05.5.5: State the provisions relating to printing, signing and date of memorandum of association

6 Registration of memorandum and articles of association (Section16,17,18, 36,37,38 and 39 of Companies Acts,2017)

2

LO5.6.1: Define the articles of association and state its purpose

LO5.6.2: State the information which should be contained in the articles of various companies.

LO5.6.3: Describe the procedure for alteration of articles

LO5.6.4: Describe the procedure of registration of the memorandum and articles of association

LO5.6.5: Describe the effects of registration of the memorandum and articles of association.

L05.6.6: State the provisions relating to printing, signing and date of article of association

7 Provisions with respect to names of companies/its change (Section 10,11,12 and 13 of Companies Acts,2017)

2 LO5.7.1: Describe with examples the provision/procedure / prohibitions with regard to the selection of the name of a company /change of name/ registration of change of name and effect thereof/Rectification of name

LO5.7.2: Identify/explain the actions and procedures needed to be taken by company and registrar, if a company is registered by a prohibited name.


Syllabus Ref


8 Association not for profit (Section 42 and 43 of Companies Acts,2017)

1 LO5.8.1: Comprehend the nature of association not for profit/provisions relating to licensing/revocation of licenses granted under section 42

9 Companies limited by guarantee (Section 45 of Companies Acts,2017)

1 LO5.9.1: Understand the provisions regarding divisible profit and dividing the undertaking into shares or interest in relation to companies limited by guarantee.

b Allotment of shares, registration of charge etc.

1 Prospectus, allotment, issue and transfer of shares and debentures, deposits, etc.

(Section 87(2),(4),(5),(6),(7), 88(1-8), 90, 91, 92 and 93 of the Securities Act 2015)

(Section 57 of Companies Acts,2017)

1 LO6.1.1: Define a prospectus and explain its purpose

LO6.1.2: Understand the requirements relating to a prospectus as laid down in Securities Act 2015

LO6.1.5: Understand/explain the provisions regarding statement and consent of expert.

2 Share capital and debentures (Section 58,59,60,61,62,85,86 and 87 of Companies Act, 2017)

1 LO6.2.1: Provision relating to nature / number of shares and other securities

LO6.2.2: Describe the classes and kinds of shares

LO6.2.3: Describe with simple example the condition of fully paid shares

LO6.2.4: State the provision relating to alteration of share capital / kinds of alterations that can be made to the share capital

LO6.2.5: Understand the meaning of variation of shareholders’ rights

LO6.2.6: Demonstrate familiarity with the provisions relating to variation of shareholders’ rights.

LO6.2.7: State the provision with respect to prohibition of purchase of own shares by a company

3 Registration of mortgages, charges etc. (Section 100, 105, 109, 110 and 112 of Companies Act, 2017)

1 LO6.3.1: Discuss the meaning of mortgage/charge with simple examples, and the requirement / duty of company and the procedure for registration of charges


Syllabus Ref


LO6.3.2: State the right of an interested party in respect of a registration of mortgage/charge

LO6.3.3: State the provisions relating to the duty and procedure of payment or satisfaction of mortgage/ charge and power of registrar to make entries of satisfaction and release in absence of intimation from company

LO6.3.4: Demonstrate familiarity with the provisions relating to the right to inspect the instrument creating a mortgage/charge

LO6.3.5: Discuss the consequences of registered and unregistered mortgages/ charges.

c Management and administration

1 Registered office, publication of names etc. (Section 21, 22, 24, 25 of Companies Acts,2017)

2 LO7.1.1: Discuss with simple examples the provisions with regard to having a registered office, publication of name, Penalties for non- publication of names and publication of authorized and paid-up capital.

2 Commencement of business by a public company (Section 19 and 20 of Companies Acts,2017)

1 LO7.2.1: define minimum subscription and State the conditions to be fulfilled before commencement of business by a company

LO7.2.2: State the applicability and non-applicability of the conditions on different kinds of company.

LO7.2.3: State the consequences of non-compliance of Section 19

3 Meeting and proceedings (Section 131,132,133,134,135,136,137,138,139, 140,141,142,143,144,145,146,147,149, 150,151 and 152 of Companies Acts,2017)

1 LO7.3.1: State the timing, matters and reports relating to statutory meetings

LO7.3.2: State the timing, matters and reports relating to an annual general meeting using simple examples

LO7.3.3: State who can call an annual general meeting

LO7.3.4: State the timing, matters and reports relating to an extraordinary general meeting


Syllabus Ref


LO7.3.5: State who can call an extraordinary general meeting

LO7.3.6: State the provisions relating to quorum for a general meeting

LO7.3.7: State the provisions with respect to appointment of proxy and conditions applicable thereon

LO7.3.8: Describe the provisions relating to notice/ agenda/ resolution /voting/polling/ minutes of meetings.

LO 7.3.9: State the circumstances in which proceedings of the general meeting may be declared invalid.

4 Appointment and Removal of Directors and Disqualification by the Commission (Section 153,154,155,156,157,158,159,160,161, 162,163,164,165,166,167,168,170,171, 174,176,177,178,179,180,181,182,183, 184 and to 185of Companies Acts,2017)

1 LO 8.4.1: Explain and apply in given scenarios, the legal provision with respect to directors’:

Ineligibility

Minimum number and number of directorships

Appointment / retirement of First and subsequent directors

Independent directors

Nominee director

Term/tenure of office of directors/consent to act as director

Elections

Removal/vacation of office

Filling of casual vacancies

Remuneration

Powers, liabilities and limitations

Protection to independent and non-executive directors

Assignment of office and alternate directors

Proceedings/ Validity of acts of directors

Compliance with code of Corporate Governance

Passing of resolution

LO8.4.2: State the legal provisions relating to loans to directors.


Syllabus Ref


LO8.4.3: Describe the Prohibition regarding political contributions/ distribution of gifts

5 Chief executive (Section 186,187,188,189,190,191,192,194,195 and 196 of Companies Acts,2017)

1 LO8.5.1: Explain the provisions relating to the appointment of first chief executive and subsequent chief executives using simple examples

LO8.5.2: Describe the restriction on appointment of chief executive

LO8.5.3: State the provisions/ conditions applicable on removal of a chief executive and his engagement in any business

LO8.5.4: State the provisions relating to appointment of a chairman and his responsibilities/ share registrar/ sole purchase/sales agents/ secretary.

d Investments, accounts etc.

1 Investment in associated companies and undertakings (Section 199 of Companies Acts,2017)

2 LO9.1.1: Describe the conditions applicable to a company for making investment in associated companies and undertakings.

2 Investment of companies to be held in its own name (Section 200 of Companies Acts,2017)

1 LO9.2.1: Discuss with simple examples as to how a company can hold its investment in names other than its own name.

3 Disclosure of interest by directors (Section 205 of Companies Acts,2017)

1 LO9.3.1: Explain the provisions/requirements of disclosure of interest by director in contract / arrangement entered into by or on behalf of the company.

4 Interest of other officers etc. (Section 206 of Companies Acts,2017)

1 LO9.4.1: Explain the provisions/ requirements of disclosure of interest by officers in contract / arrangement entered into by or on behalf of the company.

5 Interested director not to participate or vote in proceedings of directors (Section 207 of Companies Acts,2017)

1 LO9.5.1: Describe the provisions relating to participation of interested director in the proceedings of directors in contract / arrangement entered into by or on behalf of the company.


Syllabus Ref


6 Accounts (Section 220, 223, 226, 227, 232 and 233 of Companies Acts,2017 )

1 LO9.6.1: Describe the provisions relating to the books of accounts to be kept by company.

LO9.6.2: Explain the provisions/requirements with respect to the Financial statements

LO9.6.3: Describe contents of directors’ report and statement of compliance / duty to prepare directors’ report and statement of compliance

LO9.6.4: Describe the provisions relating to approval and authentication of financial statements

LO9.6.5: Discuss requirements of filing of financial statements with the registrar.

7 Dividends and Manner and Time of Payment thereof (Section 240,241,242,243 and 244 of Companies Acts,2017)

1 LO9.7.1: Explain the provisions/ requirements relating to declaration of dividend and identify/explain certain restrictions on declaration of dividend

LO9.7.2: Describe the provisions applicable to payment / withholding of dividend.

LO9.7.3: Describe the provision applicable to unclaimed share and dividend to vest with the Federal Government

e Audit, Appointment, Removal Rights and Duties of Auditors

1 Audit ,Appointment, Removal, Rights, and Duties of Auditors (Section 246,247,248,249,250 and 251 of Companies Acts,2017)

2 LO10.1.1: Explain the provisions applicable to

• Appointment, removal and remuneration of auditors

• Qualification and disqualification of auditors

• Powers/ duties of auditors and an auditor’s right to access the record and information

• An auditor’s duty to report and contents thereof

• Audit of cost accounts • Signature on an audit report.


CAF-4


BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES

Objective

To equip candidates with the fundamentals of management and behavioral studies.

Learning Outcome


1 demonstrate an understanding of the nature of management concepts and approaches

2 show familiarity with the structure of business organisations, their culture and the change process

3 demonstrate an understanding of human behavior

4 demonstrate an understanding of the concepts of motivation

5 show familiarity with the nature and kinds of leadership

5a demonstrate an understanding with group dynamics and effective teamwork

6 show familiarity with the nature and importance of negotiation and conflict resolution

7 demonstrate a basic understanding of IT based management information systems.

Grid Weightage

Management concepts 25-35

Organisational process 20-30

Individual behavior and motivation 20-30

Leadership, negotiation and conflicts 20-30

Management information system 15-25

Total 100

Syllabus Ref


A Management concepts

1 Meaning 2 LO1.1.1: Define the terms leadership and management; their nature and purpose

LO1.1.2: State the difference between Managers and Leaders using examples LO1.1.3: Describe the classification of management roles enunciated by Henry Mintzberg.

LO 1.1.4 Describe the major aspects of managerial work: planning, organising, leading and controlling.


Syllabus Ref


2 Functions 2 LO1.2.1: Illustrate management model and explain the functions of management

LO1.2.2: Describe the roles and skills of management

LO 1.2.3 Integrating managerial levels, roles and skills.

3 Classical approach 2 LO1.3.1: Describe the principles of scientific management stated by Fredrick Taylor

LO1.3.2: Explain the key principles of management by Fayol and Urwick LO1.3.3: Explain theories of management by Weber, Rosemary Stewart and Elton Mayo

LO1.3.4: Discuss the criticism on scientific management and classical approach to management

LO1.3.5: List the characteristics of bureaucratic organisations and discuss criticism on this form of management LO1.3.6: Discuss theories of management presented by Peter Drucker, Rosabeth Moss Kanter and Mintzberg.

4 Behavioral approach 2 LO1.4.1: Discuss the Hawthorne experiments on human relation approach, their significance and implications

LO1.4.2: Discuss critically the relevance of these experiments for management and organisational behaviour

LO1.4.3: Discuss Theory X, Theory Y and Theory Z including their implications and differences.

5 Management science approach 2 LO1.5.1: Explain the effects of operations research in business sciences

LO1.5.2: Discuss management skills involving time and stress management, innovations and creativity, communications, mentoring and leadership.


Syllabus Ref


6 External factors – Competitors, suppliers, labour, customers

2 LO1.6.1: Describe the direct and indirect interactive forces including political, legal health and safety and consumer protection forces may affect the organisational environment.

7 General environment - Political, legal, technological, economic, social

2 LO1.7.1: Explain how the external forces affect the organisational environment using examples

LO1.7.2: Explain how social, demographic, ecological and competitive factors would impact business environment.

B Organisational process

1 Organisational structure - principles of organisation, different ways of structuring organisation

2 LO 2.1.1 Explain the role of vision &

mission in an organisation

LO2.1.2: Explain the meaning and

nature of organisational structure

LO2.1.3: Describe the different types of

organisations and their distinguishing

features

LO2.1.4: Identify the different

stakeholders who have interests in

business firms

LO2.1.5: Describe the features of

matrix functional, divisional and

virtual organisations and their salient

features

LO 2.1.6: Explain the contingency

theory of organisation structure

including Burns & Stalker mechanistic

and organic structure and

Mintzberg’s five building blocks for

organisational Configuration with the

examples of six organisation

configuration

LO 2.1.7: Advantages and limitations of

each type of organisational structure.


Syllabus Ref


2 Organisational change - nature of change process, resistance to change

2 LO2.2.1: Identify and explain the external forces creating changes in the performance of organisations

LO2.2.2: Describe the process of organisational change

LO2.2.3: Explain the forms of reactions to change

LO 2.2.4: Discuss managing strategic change including change management, change levers and management skills. LO 2.2.4: Explain Lewin’s force field analysis, Lewin’s three step approach, the change agent, Gemini 4 Rs and Mckinsey’s 7s approach.

3 Organisational culture - concept, dysfunctional aspect of culture

2 LO2.3.1: Describe organisational culture using examples

LO2.3.2: Discuss using examples the different levels of organisational culture LO2.3.3: Describe the types of cultures and their efficacies in the context of performances of organisations.

C Individual behavior and motivation

1 Perception 2 LO3.1.1: Explain perception and perception process and their effects LO3.1.2: Discuss using examples the difference between sensation and perception

LO 3.1.3 Discuss using examples the Perceiver (internal factors) and Perceived (external factors) and their characteristics that affect perceptual selectivity

LO3.1.4: Analyse the perceptual problems/distortions in dealing with other people like stereotyping and halo effect, etc.

2 Attitude 2 LO 3.2.1: Define attitude and its components with reference to organisational cultures

LO3.2.2: Discuss the differences between cognitively based attitudes and affectively based attitudes


Syllabus Ref


LO3.2.3: Describe the difference between implicit and explicit attitudes LO3.2.4: Discuss cross-cultural differences in the bases for attitudes LO3.2.5: Explain the relationship between attitude and behaviour.

3 Job satisfaction and stress 2 LO3.3.1: Explain by offering examples meaning and outcomes of job satisfaction

LO3.3.2: Identify the measures to enhance satisfaction

LO3.3.3: Describe stress and identify the causes of job stress

LO3.3.4: Explain using examples the general categories of stressors or triggers of job stress that can affect performance

LO3.3.5: Identify consequences of stress and strategies in order to cope up with stress.

4 Maslow need hierarchy model 2 LO3.4.1: Describe using examples motivation

LO3.4.2: Explain Maslow’s need hierarchy theory

LO3.4.3: Explain strengths and problems in the application of Maslow’s theory.

5 Herzberg’s Two-Factor Theory 2 LO3.5.1: Explain Herzberg’s Two Factor theory of motivation and major criticism thereon

6 McClelland’s Theory of Needs 2 LO3.6.1: Explain the three motivational needs theory presented by McClelland LO3.6.2: State the difference between intrinsic and extrinsic motives.

7 Goal setting 2 LO3.7.1: Explain the major dimensions of goal setting theory

LO3.7.2: Explain why and how goals contribute to self-motivation

LO3.7.3: Describe how to set effective goals and the problems encountered in setting goals.

8 Management by objective 2 LO3.8.1: Explain the basic steps of the overall performance system of MBO.


Syllabus Ref


9 Self-efficacy 2 LO3.9.1: Define the term self-efficacy LO3.9.2: Demonstrate understanding of the concepts of high self-efficacy and low self-efficacy.

10 Reinforcement 2 LO3.10.1: Describe law of effect using relevant examples

LO3.10.2: Describe the concept of reinforcement as used in behavioural management

LO3.10.3: Describe positive and negative reinforcers using examples.

11 Equity/organisational justice 2 LO3.11.1: Explain organisational justice and three components of the same, namely, distributive, procedural and interactional.

12 Expectancy 2 LO3.12.1: Describe using simple examples Vroom’s Expectancy theory and its three elements, namely, expectancy, instrumentality and valence.

D Leadership, negotiation and conflicts

1 Type of leadership 2 LO4.1.1: Discuss different leadership styles, namely, free-rein, engaging, participative, task oriented and autocratic.

2 Theories of leadership 2 LO4.2.1: Discuss using simple examples different theories of leadership, namely, trait theories, Blake and Mouton theory, situational and contingency theories

LO4.2.2: Discuss Tannenbaum and Schmidt’s continuum model of leadership styles

LO4.2.3: Discuss the various Contigency theories of leadership

LO4.2.4: Describe the principles and the need for adaptive change.

3 Roles, activities, skills of leaders 2 LO4.3.1: Discuss leadership roles and activities

LO4.3.2: Identify skills needed for effective leadership.


Syllabus Ref


4 Group Dynamics and teamwork - types of groups, group formation, group structure, individual in groups, team work

2 LO4.4.1: Explain the differences between groups and teams

LO4.4.2: Discuss individual and group behavior at work. Discuss formal and informal group behavior in work settings

LO4.4.3: Explain and illustrate balance theory of group formation

LO4.4.4: Describe the concept and stages of team formation, team roles and performances of effective and ineffective teams

LO4.4.5: Identify and describe stages of group development

LO4.4.6: List down the factors that increase and decrease group cohesiveness

LO4.4.7: Explain the ways to make teams more effective.

5 Negotiation skills 2 LO4.5.1: Explain various stages of the negotiation process

LO4.5.2: Describe the different skills of effective negotiators

LO4.5.3: Describe the roles of mediators, arbitrators, conciliators and consultants

LO4.5.4: Explain the low risk techniques of negotiation

LO4.5.5: Explain the high risk techniques of negotiation.

6 Conflict resolution 2 LO4.6.1: Discuss the conflict resolution process

LO4.6.2: Discuss conflicts at the individual and inter-group levels LO4.6.3: Discuss the advantages and disadvantages of conflicts in organisations

LO4.6.4: Explain intra-individual conflict with model of frustration

LO4.6.5: List some of the physical, psychological and behavioural problems that occur due to conflict.


Syllabus Ref


E Management information systems

1 General system concepts of information technology

1 LO5.1.1: Demonstrate basic understanding of computer hardware i.e. input, output, storage of information and networking

LO5.1.2: Understand the concepts of information technology and information systems

LO5.1.3: Understand the role and types of information systems in business.

2 IT-based transaction processing systems 1 LO5.2.1: Understand data entry, batch processing, online processing and real time -online processing.

3 IT-based financial reporting systems 1 LO5.3.1: Understand IT based financial reporting system.

4 IT-based order processing and inventory control systems

1 LO5.4.1: Understand IT based order processing and inventory control systems.

5 IT-based personnel systems 1 LO5.5.1: Understand IT based personnel systems.

6 Integrated IT systems 1 LO5.6.1: Briefly describe integrated systems, their advantages and disadvantages

LO5.6.2: Understand main features of Enterprise Resource Planning.


CAF-5


FINANCIAL ACCOUNTING AND REPORTING I

Objective

To provide candidates with an understanding of the fundamentals of accounting theory and basic financial accounting with particular reference to international pronouncements.

Learning Outcome


1 prepare statement of changes in equity and statement of cash flows (other than consolidated statement of cash Flow) in accordance with specified international pronouncements.

2 interpret and evaluate the financial statement with the help of ratio analysis.

3 prepare income and expenditure account, accounts from incomplete records and manufacturing account.

4 understand the requirements for recognition and measurement of the elements of financial statements and concepts of capital and capital maintenance.

5 account for transactions related to property, plant and equipment in accordance with international pronouncements.

6 account for transactions related to government grants and provide disclosures for the same in accordance with international pronouncements.

7 account for transactions related to impairment of assets (other than cash generating units), investment property and financing of assets in accordance with international pronouncements

8 understand the nature of revenue and account for the same in accordance with international pronouncements.

Grid Weighting

Preparation of financial statements in accordance with IFRS and its interpretations 20-30

Preparation of income and expenditure account, accounts from incomplete records and manufacturing account

25-35

Other areas of IFRS 40-50

Total 100



Syllabus Ref

Contents Level Learning Outcomes

Proficiency Testing

A Preparation of financial statements in accordance with IFRS and its interpretation

1 IAS 1 Preparation of financial statements (preparation of statement of changes in equity only)

2 1 LO1.1.1 Prepare statement of changes in equity in accordance with the guidance in IAS 1 from data and information provided

2 IAS 7 Preparation of statement of cash flows (other than consolidated statement of cash flow)

2 2 LO1.2.1: Demonstrate thorough understanding of cash and cash equivalents, operating, investing and financing activities

LO1.2.2: Calculate changes in working capital to be included in the operating activities

LO1.2.3: Compute items which are presented on the statement of cash flows other than consolidated statement of cash

LO1.2.4: Prepare a statement of cash flows of a limited company in accordance with IAS 7

3 Interpretation of financial statements and ratio analysis including limitations of financial statement and ratio analysis

2 2 LO1.3.1: Compute the following ratios:

Current ratio

Acid-test ratio/quick ratio

Gross profit

Return on equity

Return on assets

Return on capital employed

Debt-equity ratio

Inventory turnover

Debtor turnover

Creditor turnover

LO1.3.2: Interpret the relationship

between the elements of the financial

statements with regard to profitability,


Syllabus Ref


Proficiency Testing

liquidity, efficient use of resources and

financial position.

LO1.3.3: Draw conclusions from the information contained within the financial statements for appropriate user (Preparation of financial statements is not required from the ratios provided / calculated).

LO1.3.4: Understand the limitation of

financial statements and ratio analysis.

B Preparation of income & expenditure account, accounts from incomplete records and manufacturing account

1 Accounting for non-profit organization / Income and expenditure account

2 2 LO2.1.1: Prepare simple income and expenditure account using data and information provided.

2 Preparation of accounts from incomplete records

2 2 LO2.2.1: Understand situations that might necessitate the preparation of accounts from incomplete records (stock or assets destroyed, cash misappropriation or lost, accounting record, destroyed etc.)

LO2.2.2: Understand and apply the following techniques used in incomplete record situations:

• Use of the accounting equation • Use of opening and closing balances of

ledger accounts • Use of a cash and / or bank summary • Use of markup on cost and gross and

net profit percentage.

3 Maintenance of factory ledger and related accounting entries and preparation of manufacturing account.

2 2 LO2.3.1: Explain the scope of cost accounting and managerial accounting and compare them with financial accounting.

LO2.3.2: Explain using examples the nature and behaviour of costs

LO2.3.3 Identify and apply the concept of fixed, variable, and semi variable costs in given scenarios.


Syllabus Ref


Proficiency Testing

LO2.3.4: Identify and apply the concept of direct and indirect material and labour cost in given scenarios and differentiate them from overhead expenditure.

LO2.3.5: Understand cost accounting cycle and factory ledger of a manufacturing unit.

LO2.3.6: Post journal entries in factory ledger.

LO2.3.7: Prepare manufacturing account using given data.

C Other areas of IFRS

1 The conceptual framework for financial reporting

Recognition and measurement of the elements of financial statements

Concepts of capital and capital maintenance

2 1 LO3.1.1: Recognize and measure elements of financial statements

LO3.1.2: Apply concepts of financial reporting, capital and capital maintenance.

2 IAS 16 Property, plant and equipment (revaluation and disclosure)

2 2 LO3.2.1: Present property, plant and equipment after recognition under revaluation model using data and information provided.

LO3.2.2: Compute depreciation for assets carried underrevaluation models using information provided.

LO3.2.3: Account for de-recognition of property, plant and equipment recognised earlier under revaluation methods

LO3.2.4: Understand the disclosure requirements and prepare extracts of necessary disclosures.

3 IAS 20 Accounting for government grants and disclosure of government assistance

2 1 LO3.3.1 Understand accounting and disclosure for government grants.

LO3.3.2 Understand disclosure for government assistance.

4 IAS 23 Borrowing Costs 2 1 LO3.4.1: Discuss and understand accounting treatment for borrowing cost

LO3.4.2: Identify and account for borrowing costs in accordance with IAS 23


Syllabus Ref


Proficiency Testing

LO3.4.3: Disclose borrowing costs in financial statements

5 IAS 36 Impairment of Assets (other than cash-generating units CGU)

2 1 LO3.5.1: Identify and assess the circumstances when the assets may be impaired (other than cash-generating units CGU).

LO3.5.2: Discuss the measurement of recoverable amount

LO3.5.3: Account for the related impairment expenses

6 IAS 40 Investment Property (other than lease issues)

2 1 LO3.6.1: Apply the requirements of IAS 40 in respect of recognition and measurement (excluding lease issues)

7 IFRS 15 Revenue from Contracts with Customers

2 2 LO3.7.1: Describe and apply the principles relating to accounting and reporting of revenue arising from the following contracts with customers:

• sale of goods; • rendering of services

*Testing Level and assessment of contents of earlier stages of qualification





CAF-6


PRINCIPLES OF TAXATION

Objective

To provide basic knowledge in the understanding of objectives of taxation and core areas of Income Tax Ordinance, 2001, Income Tax Rules 2002 and Sales Tax Act 1990 and Sales Tax Rules.

Learning Outcome

The candidate will be able to:

1 understand the objective of levy of taxation, and its basic concepts

2 understand the system of taxation in Pakistan

3 understand the historical background of taxation in Pakistan

4 understand constitutional provisions of taxation in Pakistan

5 understand and explain the basic ethics of taxation

6 understand and explain provisions of income tax law mainly relevant to individuals and association of persons

7 understand and explain sales tax law relevant to operational level tasks.

Grid Weightage

Objective, system and historical background, constitutional provisions and ethics 8-12

Income tax 60-70

Sales tax 20-30

Total 100

Syllabus Ref


A Objective, system and historical background, constitutional provisions and ethics

a Basic concepts of taxation

1 Objectives 1 LO1.1.1: Comprehend the main objectives of taxation

LO1.1.2: Justify taxation as means of development.

2 Basic concepts 1 LO1.2.1: Understand the implication of direct and indirect taxation.

3 System of taxation in Pakistan (Income Tax, Sales Tax, Federal Excise Tax, Capital Value Tax, Customs)

1 LO1.3.1: Comprehend different kinds of taxes and their scope including the powers of provinces to legislate on taxes.


Syllabus Ref


4 Historical background 1 LO1.4.1: State the history of taxation in the sub-continent.

b Constitutional provisions

1 Federal financial procedures (Article 78 to 88 of the Constitution of Pakistan)

1 LO2.1.1: Demonstrate familiarity with the Federal Consolidated Fund and Public Account

LO2.1.2: Demonstrate familiarity with the expenditure that can be charged upon Federal Consolidated Fund.

2 Provincial financial procedures (Article 118 to 127 of the Constitution of Pakistan)

1 LO2.2.1: Demonstrate familiarity with the Provincial Consolidated Fund and Public Account

LO2.2.2: Demonstrate familiarity with the expenditure that can be charged upon Provincial Consolidated Fund.

3 Distribution of revenues between Federation and the Provinces (Article 160 to 165A of the Constitution of Pakistan)

1 LO2.3.1: Demonstrate familiarity with the formation of National Finance Commission and its main function LO2.3.2: Demonstrate familiarity with the taxes that can be raised under the authority of Parliament

LO2.3.3: Demonstrate familiarity with the powers of provincial assemblies in respect of professional tax

LO2.3.4: Demonstrate familiarity with the exemption available to federal and provincial governments

LO2.3.5: Demonstrate familiarity with the tax on corporation owned by federal and provincial government.

4 Federal legislative lists relating to revenue generating measures (related part of Fourth Schedule to the Constitution of Pakistan)

1 LO2.4.1: Enlist the revenue collection as mentioned at S. No. 43 to 53 in Fourth Schedule attached to the Constitution.

c Ethics

1 Ethics for tax legislation 2 LO3.1.1: Describe how canons of taxation developed by economists are relevant for legislators while formulating tax policies.


Syllabus Ref


2 Ethics for taxpayers and tax practitioners 2 LO3.2.1: Understand the right and purpose of state to tax its citizens LO3.2.2: Understand morality behind compliance with tax laws by taxpayers and tax practitioners.

3 Ethics for tax implementing authorities 2 LO3.3.1: Understand the powers vs ethical responsibilities of tax implementation authorities

LO3.3.2: Understand pillars of tax administration, namely; fairness, transparency, equity and accountability.

4 Tax evasion and avoidance 2 LO3.4.1: Explain with simple examples the basic difference between evasion and avoidance of tax.

B Income Tax

1 Chapter I – Preliminary (concepts of terms defined section 2 sub-section 1, 5, 5A, 6, 7, 9, 10, 11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46, 47, 49, 50, 51, 52, 53, 68)

1 LO4.1.1: Describe the definitions given in section 2 sub-section –

1, 5, 5A, 6, 7, 9, 10, 11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46, 47, 49, 50, 51, 52, 53, 68

LO4.1.2: Describe other definitions covered under relevant sections LO4.1.3: Understand and apply definitions on simple scenarios.

2 Chapter II – Charge of tax (excluding section 4B, 5A, 7, 7A)

2 LO4.2.1: Explain the chargeability of tax with simple examples.

3 Chapter III – Tax on Taxable income (Excluding Section 29A, 30 and 31 , 36, 49, 57A, 59AA, 59B, 65C, 65D and 65E)

2 LO4.3.1: Understand the concepts of Income, total income & taxable income with heads of income

LO 4.3.2: Understand and compute taxable income and tax thereon relating to salary, income from property, income from business, capital gain, dividend, profit on debt, ground rent, rent from sub-lease, income from provision of amenities, utilities or any other services connected with rented building and consideration for vacating the possession of building


Syllabus Ref


LO 4.3.3: Explain different exemption and tax concession for income including 2nd schedule exemptions

LO 4.3.4: Comprehend and apply the concepts of set-off and carry forward of losses for different heads of income

LO 4.3.5 Understand and compute deductible allowances and tax credits available to tax payers.

4 Chapter IV – (Part I, II and III) – Common rules (Excluding Sections 78 and 79)

1 LO4.4.1: Understand and apply on simple scenarios provisions for income of joint owner, apportionment of deductions, fair market value and receipt of income

LO4.4.2: Explain using simple examples the provisions relating to tax year LO4.4.3: Explain with simple examples the provisions relating to disposal and acquisition of assets, cost and consideration received.

5 Chapter V Part I – Central concepts 2 LO4.5.1: Describe with simple examples the meaning of persons, resident and non-resident persons and associates.

6 Chapter V Part II Div I and II – Individuals 2 LO4.6.1: Describe with simple examples the principles of taxation of individuals.

7 Chapter V Part III and Part VA – Association of persons

2 LO4.7.1: Describe with simple examples the principles of taxation of association of persons and computational aspects of AoP and its members.

8 Chapter VII Part II – Taxation of foreign-source income of residents

2 LO4.8.1: Understand the applicability of tax on foreign salary income, credit against foreign tax and treatment of foreign loss of a resident in simple scenarios.

9 Chapter IX Minimum Tax

(Section113)

2 LO 4.9.1 : Understand the provisions relating to Minimum Tax

LO 4.9.2 : Calculate Minimum Tax according to the provisions.

10 Chapter X Part I – Returns 2 LO4.10.1: Identify persons required to furnish a return of income

LO4.10.2: Identify persons not required to furnish a return of income


Syllabus Ref


LO4.10.3: Identify persons required to furnish wealth statements

LO4.10.4: List the contents of wealth statement

LO 4.10.5: Understand the procedure for extension in time for furnishing the returns and other documents.

11 Chapter X Part II – Assessments 1 LO4.11.1: Understand the meaning of assessment by Commissioner and power of Commissioner to conduct audit.

12 Chapter X Part III – Appeals 1 LO4.12.1: List the appellate bodies LO4.12.2: Explain using simple examples the circumstances when appeal to the Commissioner (Appeals) is made and the pre-conditions applicable

LO4.12.3: Explain the provisions relating to decision of appeals by Commissioner (Appeals) using simple examples.

13 Chapter X Part VIII – Records, Information Collection and Audit (Section174 and 177)

2 LO4.13.1: Understand the provisions relating to records to be kept by the taxpayers

LO4.13.2: Describe the provisions relating to audit by Commissioner.

14 The Income Tax Rules related to the above chapters of the Income Tax Ordinance 2001 shall also be examined

1 LO4.14.1: Apply rules relevant to learning outcomes specified against each topic on well explained scenarios.

15 First and Second Schedule attached to the Income Tax Ordinance 2001

2 LO4.15.1: Apply clauses relevant to learning outcomes specified against each topic on well explained scenario.

C Sales Tax

a Sales Tax Act 1990

1 Chapter I – Preliminary (concepts of terms defined Section 2 sub-sections 3, 5AA, 9, 11, 14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33, 35, 39, 40, 41, 43, 44, 46)

2 LO5.1.1: Describe the definitions given in section 2 sub-section 3, 5AA, 9, 11, 14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33, 35, 39, 40, 41, 43, 44, 46

LO5.1.2: Describe other definitions covered under relevant sections LO5.1.3: Apply definitions on simple scenarios.


Syllabus Ref


2 Chapter II – Scope and payment of tax 2 LO5.2.1: Understand the application of sales tax law on taxable supplies including zero rated and exempt supplies

LO5.2.2: State the determination, time and manner of sales tax liability and payment using simple examples

LO 5.2.3: Understand how excess input tax will be carried forward and refunded.

3 Chapter III – Registration 2 LO5.3.1: State the requirement and procedure of registration and de-registration.

4 Chapter IV – Book keeping and invoicing requirements

2 LO5.4.1: List the record to be kept by a registered person

LO5.4.2: State the requirements of tax invoice

LO5.4.3: Explain the retention period of record using simple examples.

5 Chapter V – Returns 2 LO5.5.1: Understand the various types of returns required to be filed by registered and un-registered persons.

b Sales Tax Rules, 2006

1 Chapter I – Registration, Compulsory registration and De-registration

2 LO6.1.1: Explain the requirement and procedure of registration, compulsory registration and deregistration using simple examples.

2 Chapter II – Filing of return 2 LO6.2.1: Explain the requirement and procedure of filing of return using simple examples.

3 Chapter III – Credit and Debit And Destruction of Goods

2 LO6.3.1: Explain the requirement and procedure of issuing debit and credit notes using simple examples

LO6.3.2: State the procedure for destruction of goods.

4 Chapter IV – Apportionment of Input Tax 2 LO6.4.1: Explain the requirement and procedure of apportionment of input tax using simple examples.


CAF-7 CERTIFICATE IN ACCOUNTING AND FINANCE

*FINANCIAL ACCOUNTING AND REPORTING II

Objective

To broaden the knowledge base of basic accounting acquired in earlier modules with emphasis on

International Financial Reporting Standards.

Learning Outcome


1 prepare financial statements in accordance with the relevant law of the country and in compliance with the reporting requirements of the international pronouncements

2 account for transactions relating to non-current assets and operating segment

3 understand the implication of contingencies; changes in accounting policies, estimates and; errors, events occurring after reporting period and changes in foreign exchange rates

4 account for transactions relating to taxation

5 demonstrate knowledge of basic ethical issues in preparation and reporting of financial information

Grid Weighting

Preparation of financial statements in accordance with the Companies Act, 2017 and IFRSs

25-35

Accounting for non-current assets 30-40

Ethics and other areas of IFRS 30-40

Total 100



Syllabus Ref


Proficiency Testing

A Preparation of Financial Statements in accordance with the Companies Act 2017 and IFRS

1 Preparation of financial statements of limited companies in line with the requirement of the Companies Act, 2017 and International Financial Reporting Standards (excluding liquidations, reconstructions and mergers)

2 2 LO1.1.1: Identify the laws, regulations, reporting standards and other requirements applicable to statutory financial statements of a limited company

LO1.1.2: Prepare and present the following in accordance with the disclosure requirements of IAS1, Companies Act, fourth schedule / fifth schedule

Statement of financial position

Statement of comprehensive income

Statement of changes in equity

Notes to the financial statements

2 Preparation of consolidated financial statements (one subsidiary)

IFRS 3 Business combinations (goodwill and cost of investment)

IFRS 10 Consolidated financial statements (Preparation of consolidated statements of financial position and comprehensive income)

IAS 28 Investment in associates and joint venture (Equity method and test of one associate)

2 2 LO1.2.1: Describe the concept of a group as a single economic unit

LO1.2.2: Define using simple examples subsidiary, parent and control

LO1.2.3: Describe situations when control is presumed to exist

LO1.2.4: Identify and describe the circumstances in which an entity is required to prepare and present consolidated financial statements

LO1.2.5: Eliminate (by posting journal entries) the carrying amount of the parent’s investment in single subsidiary against the parent’s portion of equity of subsidiary and recognise the difference between the two balances as either goodwill; or gain from bargain purchase

LO1.2.6: understand preparation of


Syllabus Ref


Proficiency Testing

consolidated financial statements for business combinations and their impacts.

LO1.2.7: Prepare and present simple consolidated statements of financial position involving a single subsidiary in accordance with IFRS 10.

LO1.2.8: Prepare and present a simple consolidated statement of comprehensive income involving a single subsidiary in accordance with IFRS 10.

LO1.2.9: understand equity method and test of one associate for preparation of financial statements for associates and joint ventures.

LO1.2.10: Define and describe non-controlling interest in the case of a partially owned subsidiary

LO1.2.11: Identify the non-controlling interest in the following:

net assets of a consolidated subsidiary; and

profit or loss of the consolidated subsidiary for the reporting period

LO1.2.12: Post adjusting entries to eliminate the effects of intergroup sale of inventory and depreciable assets.

3 Accounting policies, changes in accounting estimates; and errors (IAS-8)

2 1 LO1.3.1: Define accounting policies, accounting estimates and prior period errors

LO1.3.2: Account for the effect of change in accounting estimates and policies in the financial statements

LO1.3.3: Understand and analyse using examples, IFRS guidance on accounting policies, change in accounting policies and disclosure

LO1.3.4: Understand and analyse


Syllabus Ref


Proficiency Testing

using examples, IFRS guidance on accounting estimates, changes in accounting estimates and disclosure

LO1.3.5: Understand and analyse using examples, IFRS guidance on errors, correction of errors and disclosure.

B Accounting for non-current Assets

1 IFRS 9 Classification, recognition and measurement of financial assets and liabilities Other than derivatives -Financial Instruments

1 1 LO2.1.1: Apply requirements of IFRS 9 in respect of recognition, classification and measurement of financial assets and liabilities.

2 IFRS 16 Leases (Excluding modification, sale and lease back and reassessment)

2 2 LO2.2.1: Determine a lease type using given information.

LO2.2.2: Prepare journal entries and present extracts of financial statements in respect of lessee accounting, lessor accounting after making necessary calculations.

3 IAS 38 Intangible assets Recognition, de-recognition, measurement, amortization and measurement after recognition of non-current assets (including SIC 32 Intangible Assets – Web Site Costs)

2 2 LO2.3.1: Apply the principles relating to recognition, de-recognition, measurement, amortization and measurement after recognition of non-current intangible assets as per IAS 38 and related SIC.

4 IAS 41 Agriculture 2 1 LO2.4.1: Understand accounting and disclosure requirements for agriculture as per IAS 41

C Ethics and other areas of IFRS

1 Ethics

Fundamental principles (sections 100 to 150 of the Code of Ethics for Chartered Accountants)

An understanding of ethics relating to

2 1 LO3.1.1: Describe with simple examples the fundamental principles of professional ethics of integrity, objectivity, professional competence and due care, confidentiality and professional behavior


Syllabus Ref


Proficiency Testing

preparation and reporting of financial information (Section 320 of Code of Ethics for Chartered Accountants)

LO3.1.2: Apply the conceptual framework to identify, evaluate and address threats to compliance with fundamental principles.

LO3.1.3: Explain using simple examples the ethical responsibilities of a Chartered Accountant in preparation and reporting of financial information.

2 IFRS 8 Operating Segment 2 1 LO3.2.1: Understand and apply disclosure requirement about operating segments as per IFRS 8

3 Events occurring after the reporting period (IAS-10)

2 1 LO3.3.1: Assess and account for adjusting and non-adjusting events after the reporting period.

LO3.3.2: Determine items that require separate disclosure, including their accounting treatment and required disclosures.

LO3.3.3: Understand and analyse using examples, going concern issues arising after the end of the reporting period.

4 IAS 37 Provisions, contingent liabilities and contingent assets (including IFRIC 1 changes in existing decommissioning, restoration and similar liabilities)

2 2 LO3.4.1: Define liability, provision, contingent liability and contingent asset also describe their accounting treatment.

LO3.4.2: Distinguish between provisions, contingent liabilities or contingent assets

LO3.4.3: Understand and apply the recognition and de-recognition criteria for provisions

LO3.4.4: Calculate/measure provisions such as warranties/guarantees, restructuring, onerous contracts, environmental and similar provisions, provisions for future repairs or refurbishments

LO3.4.5: Account for changes in provisions, decommissioning,


Syllabus Ref


Proficiency Testing

restoration and similar liabilities

LO3.4.6: Apply disclosure requirements for provisions.

LO3.4.7: Understand changes in the measurement of decommissioning and restoration cost and similar liabilities

5 IAS 12 Income Taxes (other than Business combination)

2 2 LO3.5.1: Define temporary differences and identify temporary differences that cause deferred tax liabilities and deferred tax assets (other than Business combination)

LO3.5.2: Determine amounts to be recognised in respect of temporary differences

LO3.5.3: Prepare and present deferred tax calculations using the balance sheet approach (other than Business combination)

LO3.5.4: Account for the major components of tax expense/income and its relationship with accounting profit

LO3.5.5: Formulate accounting policies in respect of deferred tax

LO3.5.6: Apply disclosure requirements of IAS12 (other than Business combination)

6 IAS 21 The effects of changes in foreign exchange rates (foreign exchange transactions)

2 1 LO3.6.1: understand and apply accounting for foreign currency transactions

Testing Level and assessment of contents of earlier stages of qualification





CAF-8


COST AND MANAGEMENT ACCOUNTING

Objective

To equip candidates with techniques of cost accounting to provide a knowledge base for decision making skills.

Learning Outcome


1 establish the costs associated with the production of products and provision of services

2 demonstrate an understanding of different costing systems

3 prepare various types of forecasts and budgets

4 apply the concepts of costing in the decision making process

5 demonstrate a functional knowledge of financial instruments

6 apply concept of time value of money

7 understand the concepts of sustainability reporting.

Grid Weightage

Costs associated with the production 15-20

Costing system 25-35

Budget and budgetary controls 35-45

Financial instruments , time value of money and sustainability reporting 20-30

Total 100

Syllabus Ref


A Costs associated with production

1 Basis of valuation - FIFO, weighted average, lower of cost and net realizable value

2 LO1.1.1: Apply inventory valuation methods ( namely, FIFO, weighted average, lower of cost and net realizable value) in simple scenarios LO1.1.2: Comment on the suitability of inventory valuation under FIFO, weighted average, lower of cost and net realizable value

LO1.1.3: Compare inventory valuation under FIFO, weighted average, lower of cost and net realizable value

LO1.1.4: Calculate NRVs of inventories in a given scenario.


Syllabus Ref


2 Economic Order Quantity 2 LO1.2.1: Determine the usefulness of Economic Order Quantity (EOQ) model

LO1.2.2: Calculate the EOQ from data provided and apply the concept in given scenarios

3 Safety stock 2 LO1.3.1: Describe safety stocks for inventories

LO1.3.2: Explain the reasons for maintaining safety stock

LO1.3.3: Calculate the safety stock from data provided.

4 Re-order level 2 LO1.4.1: Explain the re-order levels and the objectives of setting re-order levels LO1.4.2: Calculate re-order levels by using data provided.

5 Manufacturing expenses - actual and applied

2 LO1.5.1: Describe manufacturing overheads using examples

LO1.5.2: Compare manufacturing, administrative and selling costs LO1.5.3: Identify manufacturing overheads from data provided

LO1.5.4: Describe and distinguish between actual overhead and applied overhead

LO1.5.5: Calculate applied overheads using data provided.

6 Over or under absorbed overhead 2 LO1.6.1: Compare actual and absorbed overheads from data provided

LO1.6.2: Analyse over or under absorption in terms of expenditure and volume variances

LO1.6.3: Account for over or under-absorbed overheads.

7 Production and service departments 2 LO1.7.1: Identify production and service departments in a manufacturing facility and analyse their related costs LO1.7.2: Explain the basis of allocation of cost of service department to production department.

8 Apportionment, allocation and absorption of service departments, overheads to production

2 LO1.8.1: Allocate costs to production and service departments using information provided


Syllabus Ref


LO1.8.2: Allocate costs of service departments to production department using data and information provided.

9 Labour Costing 2 LO1.9.1: Discuss productivity and efficiency measurement in relation to controlling labour costs LO1.9.2: Explain the concept of remuneration systems, incentive wage plans and types therein. LO1.9.3: Record labour costs LO1.9.4: Apply the impact of learning curve theory on the productivity of employees.

B Costing systems

1 Marginal costing 2 LO2.1.1: Explain the concept of marginal costing and apply on given data

LO2.1.2: Explain how marginal costing helps managerial decisions using examples.

2 Absorption costing 2 LO2.2.1: Describe and apply absorption costing approach in given scenarios LO2.2.2: Compare marginal costing and absorption costing

LO2.2.3: Reconcile the differences between the profits resulting from marginal and absorption costing.

3 Manufacturing cost accounting cycle 2 LO2.3.1: Explain the flow of cost in the production process using examples LO2.3.2: Prepare accounting entries for the flow of cost.

4 Job order costing 2 LO2.4.1: Describe job order costing LO2.4.2: Calculate the cost of a job and inventories by application of job order costing

LO2.4.3: Prepare accounting entries under the job order costing system.

5 Process costing 2 LO2.5.1: Describe the process costing including the treatment of normal / abnormal loss / gain

LO2.5.2: Calculate cost of product and inventories by application of process costing


Syllabus Ref


LO2.5.3: Prepare accounting entries under the process costing system. LO2.5.4: Account for the cost of rework LO2.5.5: Account for the units added in subsequent departments

LO2.5.6: Account for the N.R.V of by-product in process account.

6 Treatment of Joint and By-Products 2 LO2.6.1: Describe joint and by products using examples

LO2.6.2: Allocate joint production costs using sales value, physical units, average units and weighted average methods

LO2.6.3: Account for by-products using recognition of gross revenue, recognition of net revenue and replacement cost approaches.

7 Cost of services rendered 2 LO2.7.1: Explain how departmentalization in a service organisation helps in cost planning and control

LO2.7.2: Calculate cost of services rendered by a service organisation.

8 Standard costing 2 LO2.8.1: Explain standard costing using examples

LO2.8.2: Perform standard setting for material, labour and factory overhead.

9 Variance analysis-material, labour and overhead

2 LO2.9.1: Calculate, analyse and interpret various variances relating to material, labour and factory overhead.

10 Target costing 2 LO2.10.1: Describe target costing and how target cost is determined LO2.10.2: Apply the target costing tools to given scenarios.

C Budget budgetary controls and decision making

1 Planning, forecasting and budgeting of sales, cost and profit

2 LO3.1.1: Explain how budgeting process works and how it fits into overall planning and control


Syllabus Ref


LO3.1.2: Prepare forecasts on given data and assumptions using Qualitative and Quantitative methods including Time Series Models, Moving Averages and Linear Regression Analysis.

LO3.1.3: Identify and describe different purposes of budgeting

LO3.1.4: Identify and describe the various stages in the budgeting process LO3.1.5: Prepare following types of budgets:

• fixed and flexible budgets; • performance budgeting; • sales budget; • production budget; • direct materials budget; • direct labour budget; • manufacturing overhead budget; • inventory budget; • cost of goods sold budget; • selling and administrative expenses

budget with inflation aspects; • Master/cash budget; • zero based budgets, and • capital expenditure budgets;

LO3.1.6: Discuss various approaches to Budgeting (i.e. flexible and fixed budgets, incremental budgeting, zero based budgeting, continuous (rolling) budgeting and performance budgeting

LO3.1.7: Describe the human & motivational aspects of budgets LO3.1.8: Describe budgeting and planning in a non-profit organisation

2 Opportunity cost 2 LO3.2.1: Describe opportunity cost using examples.

3 Relevant cost 2 LO3.3.1: Describe relevant costs using examples

LO3.3.2: Identify the costs that are relevant to a particular decision in given data.

4 Breakeven analysis 2 LO3.4.1: Explain the break-even point using examples and margin of safety


Syllabus Ref


LO3.4.2: Calculate the breakeven point

in quantity and amount from

information provided

LO3.4.3: Apply cost volume profit (CVP)

analysis and explain its usefulness for

management.

5 Make or buy decisions 2 LO3.5.1: Apply marginal and relevant

costing concepts to analyse make or

buy options

LO3.5.2: Analyse make or buy options

in case of capacity constraints

LO3.5.3: Discuss using examples the

importance of qualitative

considerations in make or buy

decisions.

6 Pricing for special orders 2 LO3.6.1: Perform incremental cost

benefit analysis for a special order.

7 Further processing decisions 2 LO3.7.1: Perform incremental cost

benefit analysis for further processing

costs.

D Financial instruments (basic functions) , Time value of money and Sustainability reporting

1 Business Finance: Shares, debentures, bonds, futures, options, cap, floor, collar, swaps, forward

1 LO4.1.1: Recognise common sources of finance

LO4.1.2: Describe factors that need to be considered before raising finance.

LO4.1.3: Explain and discuss methods of raising equity finance, including:

Initial Public Offer (IPO)

Private Placing

Right Issue

LO4.1.4: Explain (with examples) the difference between short term and long term debt finance and factors influencing choice of such finance

LO4.1.5: Discuss the advantages and disadvantages of Debt Finance


Syllabus Ref


LO4.1.6: Understand the basic features

of following debt finances:

bonds,

loan notes,

debentures,

commercial paper

loan stock

deeply discounted bonds

zero coupon bonds

euro bonds

convertible bonds and securities

warrants and hybrids

bank Loans

leases

certificate of deposits (CDs)

treasury bills (T Bills)

LO4.1.7: Explain and discuss other

common sources of finance:

venture capital

Business angels

private equity Funds

asset securitization and sale

LO4.1.8:Describe direct and indirect

investment using examples

LO4.1.9: Describe using examples

shares, debentures, bonds, futures,

options

LO4.1.10: Describe using simple

examples the following characteristics

of indirect investments and compare

them with direct investments:

• Divisibility

• Liquidity

• Holding period

LO4.1.11: Differentiate between

investment and speculation using

simple examples

LO4.1.12: Describe using simple

examples cap, floor, collar, swaps,

forwards.


Syllabus Ref


2 Computation and usefulness of net present value and internal rate of return

1 LO4.2.1: Explain the time value of money

LO4.2.2: Identify and calculate relevant cash flows for investment projects. LO4.2.3: Calculate net present value and internal rate of return of given cash flows.

LO4.2.4: Assess the usefulness of NPV and IRR models.

3 An introduction to sustainability reporting

1 LO4.3.1: Understand different phases of reporting

LO4.3.2: Understand the concept of sustainability reporting

LO4.3.3: Describe the concept of integrated reporting

LO4.3.4: Identify and explain the users of sustainability report

LO4.3.5: Explain benefits of sustainability reporting and apply this in given scenarios

LO4.3.6: Explain the IFAC Framework of sustainability reporting

LO4.3.7: Explain Key themes and key considerations of sustainability reporting (Business strategy perspective, operational perspective and reporting perspective).


CAF-9


AUDIT AND ASSURANCE

Objective

To acquire knowledge of theory, skills, techniques of auditing and to enable the students to understand International Standards on Auditing, Assurance and Ethics.

Learning Outcome


1 demonstrate knowledge of general concepts governing an audit

2 demonstrate working knowledge in respect of performance of simple audit procedures and understand the audit report requirement under the companies act, 2017

3 understand the requirement and application guidelines relating to some of the specific areas of audit procedures including external confirmation, review of subsequent events etc.

4 comprehend nature of engagements of review of interim financial statements

5 demonstrate familiarity with computer programming and IT controls relevant to financial reporting

6 respond on audit matters in the light of fundamental principles given in the code of ethics.

Grid Weightage

General concepts and principles of audit 15-20

Performance of audit and reporting 25-35

Specific areas 20-25

Computer programming and IT controls 10-15

Professional Ethics 10-15

Total 100

Syllabus Ref


A General concepts and principles of audit

1 Introduction to International Federation of Accountants

1 LO1.1.1: Briefly describe the organisational overview encompassing

• History; • Vision and mission

2 Introduction to international auditing and assurance standard setting body

1 LO1.2.1: Briefly describe the objectives and functions of IAASB.

3 Objective and general principles governing an audit (ISA 200)

2 LO1.3.1: Describe the objectives of audit including concepts of accountability, stewardship, agency, independence and fair presentation


Syllabus Ref


LO1.3.2: Describe the overall objectives of the independent auditor.

LO1.3.3: Describe the concepts of assurance and levels of assurance i.e. absolute, reasonable and limited assurance including elements of an assurance engagement, assurances provided by audit and review engagement

LO1.3.4: Explain the requirements of an external audit, eligibility and ineligibility of auditor

LO1.3.5: Describe the rights and duties of auditors

LO1.3.6: Explain the nature and scope of an audit designed to enable the independent auditor to meet those objectives

LO1.3.7: Outline the requirements establishing the general responsibilities of the independent auditor applicable in all audits including consideration of inherent limitations of an audit

LO1.3.8 Discuss the concept of professional skepticism.

LO1.3.9: Discuss the concept of interim and final audit

LO1.3.10: List the audit procedures that can be performed by the external auditor at the interim and final stage of an audit

LO1.3.11: Discuss the concept of audit of Not-for-profit organisations.

4 Responsibility for the financial statements

2 LO1.4.1: Understand the responsibility of management and those charged with governance for financial reporting and related internal control on financial reporting.

5 Auditor’s responsibility to consider fraud (ISA 240)

2 LO1.5.1: Distinguish between the terms ‘error’, ‘fraud’ and ‘misstatement’ LO1.5.2: Compare the respective responsibilities of management and auditors for fraud


Syllabus Ref


LO1.5.3: Describe the matters to be considered and procedures to be carried out to assist the auditor in identifying, assessing and detecting the risks of material misstatement due to fraud

LO1.5.4: Identify the fraud risk factors in the simple scenario as given in the appendix 1 of ISA 240

LO1.5.5: Identify the circumstances that indicate the possibility of fraud in the simple scenario as given in the appendix 3 of ISA 240.

6 Legal considerations relating to appointment and removal of auditors (sections 246 to 253 of the Companies Act, 2017)

2 LO1.6.1: Explain how the first and subsequent auditors are appointed LO1.6.2: Explain how the first and subsequent auditors are removed

LO1.6.3: Describe qualification and disqualification of the auditor

LO1.6.4: Describe the powers and duties of auditors

LO1.6.5: Describe the concept of audit of cost accounts

LO1.6.6: Discuss the additional matters to be included in the auditor’s report.

7 Terms of Audit engagements (ISA 210) 2 LO1.7.1: Describe the preconditions for an audit and upon which it is necessary for the auditor and the entity’s management to agree

LO1.7.2: Respond if preconditions are not present or limit is imposed on scope of audit in well explained simple situations

LO1.7.3: State the contents of an audit engagement letter

LO1.7.4: Discuss the requirement of issuance of engagement letter and factors that necessitate the issuance of engagement letter in case of recurring audit

LO1.7.5: Discuss the circumstances of acceptances of changes in terms of engagement by the auditor.


Syllabus Ref


B Performance of audit and reporting

1 Planning an audit (ISA 300) 2 LO2.1.1: Discuss the need for planning an audit including contents of an audit plan and its relation with risk assessment

LO2.1.2: Discuss the contents of overall audit strategy and audit plan

LO2.1.3: State who should be involved in planning and what preliminary engagement activities are necessary LO2.1.4: Outline the additional considerations that should be identified while planning the initial audit.

2 Assessment of audit risks (ISA 315 and 330)

2 LO2.2.1: Discuss the risk based approach to auditing including audit risk model

LO2.2.2: Identify the inherent risk, control risk and detection risk in simple scenario

LO2.2.3: Explain relationship between audit risk and its components i.e. inherent risk, control risk and detection risk

LO2.2.4: Discuss the identification and assessment of the risks of material misstatement at both the financial statement level and assertion level, including understanding of entity, its environment, accounting and internal control systems

LO2.2.5: Explain the elements of internal control

LO2.2.6: Discuss the evaluation of controls and control environment and communication of deficiencies to the management

LO2.2.7: Explain the categories of control activities (internal controls) by using simple examples including Application and General IT Controls


Syllabus Ref


LO2.2.8: Explain and identify the control weaknesses in the given scenario and suggest appropriate recommendations to remove these weaknesses

LO2.2.9: Discuss and explain the limitations of internal control system LO2.2.10: Discuss and explain the risks in specialised IT systems

LO2.2.11: Explain the different methods of recording internal control systems.

3 Audit materiality (ISA 320) 2 LO2.3.1: Explain the concepts of materiality and performance materiality using simple examples.

LO2.3.2: Explain materiality level or levels for particular classes of transactions, account balances or disclosures

LO2.3.3: Explain the relationship between audit risk and level of materiality

4 Audit evidence (ISA 500) 2 LO2.4.1: Explain, using examples, sufficient appropriate audit evidence LO2.4.2: Discuss the general principles assisting the auditor in assessing the relevance and reliability of audit evidence

LO2.4.3: Discuss audit procedures to obtain audit evidence including types of audit procedures

LO2.4.4: Discuss the course of action available to auditor in case sufficient appropriate audit evidence is not obtained

LO2.4.5: Explain the financial statement assertions including Assertions about class of transactions, account balances and presentation and disclosure LO2.4.6: Explain the audit work related to Inventory


Syllabus Ref


5 Audit sampling (ISA 530) 2 LO2.5.1: Explain audit sampling, statistical sampling and sampling and non-sampling risk using simple examples

LO2.5.2: Discuss the relationship between sampling and audit risk model LO2.5.3: Explain what matters are considered by auditors in respect of sample design, size and selection of items for testing using simple examples including sample selection method LO2.5.4: Discuss the concept of misstatement and rate of deviation including expected and tolerated LO2.5.5: State the audit procedures to be performed on selected sample LO2.5.6: Discuss the concept of projecting misstatement and evaluating the results of audit sampling.

6 Substantive procedures (ISA 330) 2 LO2.6.1: Understand the financial statement assertions

LO2.6.2: Briefly explain the advantages and dis-advantages of both test data and audit software.

LO2.6.3: Discuss the use of computer software in substantive testing, auditing around the computer and directional testing

LO2.6.4: Discuss the methods of obtaining audit evidence for substantive testing

LO2.6.5: Explain the nature, extent and timing of substantive procedures for different items of financial statements.

7 Tests of controls (ISA 330) 2 LO2.7.1: Explain the nature, extent and timing of test of controls using simple examples

LO2.7.2: Explain the concept of Computer Assisted Audit Techniques LO2.7.3: Explain how auditors evaluate the operating effectiveness of controls using simple examples


Syllabus Ref


LO2.7.4: Explain the controls over major transaction cycles including related risks, weaknesses control objectives and designing appropriate tests of controls.

8 Analytical procedures (ISA 520) 2 LO2.8.1: Explain the nature and purpose of substantive analytical procedures using simple examples LO2.8.2: State the purpose of analytical procedures performed near the end of the audit

LO2.8.3: Applying analytical procedures through calculations of different ratios for different items of financial statements

LO2.8.4: Factors to be considered when using analytical procedures as substantive procedures

LO2.8.5: Course of action when results of analytical procedures identify fluctuations and inconsistencies.

9 Documentation (ISA 230) 2 LO2.9.1: Explain the nature and purpose of audit documentation LO2.9.2: Describe the form, content and extent of audit documentation using simple examples

LO2.9.3: Discuss the use of computer based audit working papers

LO2.9.4: Explain the difference between permanent and current working papers with examples.

LO2.9.5: List the contents of working paper file / audit documentation

LO2.9.6: Discuss the ownership, custody and confidentiality of audit working papers

LO2.9.7: Understand the nature of assembly of the final audit file.

LO2.9.8: Explain the features of audit working papers.


Syllabus Ref


10 Audit opinion and form of audit report under International Standards on Auditing and under the Companies Act, 2017 and Going Concern (ISA-570 Revised)

2 LO2.10.1: Understand modified and unmodified audit opinion

LO2.10.2: Explain qualified opinion, disclaimer of opinion and adverse opinion

LO2.10.3: Explain emphasis of matter and other matter in the auditor’s report

LO2.10.4: List the circumstances under which an external auditor uses an emphasis of matter and other matter paragraph in the auditor’s report

LO2.10.5: Discuss the modification of audit opinion and audit report in different situations including when entity is not a going concern and related concepts.

LO2.10.6: Drafting of opinion paragraph

LO2.10.7: Key Audit matters and other related concepts as per ISA 701.

LO2.10.8: Briefly state the contents of the auditor’s report under International Standards on Auditing and under the Companies Act, 2017

LO2.10.9: Explain the differences between auditor’s report under International Standards on Auditing and under the Companies Act, 2017 LO2.10.10: State the penalty for noncompliance with provisions related to the audit report.

C Specific areas

1 External confirmations (ISA 505) 2 LO3.1.1: Define external confirmation and list various types of third party confirmations available to an external auditor.

LO3.1.2: Describe the significance of using external confirmation procedures for obtaining relevant and reliable audit evidence

LO3.1.3: Describe the steps involved in external confirmation procedures


Syllabus Ref


LO3.1.4: Differentiate between the positive confirmation request and negative confirmation request, including their appropriateness in different situations

LO3.1.5: Discuss the conditions of sending negative confirmations LO3.1.6: Discuss the auditor’s course of action if management refuses to allow auditor to send confirmation.

2 Subsequent events (ISA 560) 2 LO3.2.1: Explain subsequent events and its relevance with the following critical dates

• Date of the financial statements • Date of approval of the financial

statements • Date of the auditor’s report • Date the financial statements are

issued

LO3.2.2: Explain the subsequent events review procedure

LO3.2.3: Discuss the classification of subsequent events into adjusting and non-adjusting events

LO3.2.4: Describe the auditor’s responsibility in respect of following situations

• Events occurring between the date of the financial statements and the date of the auditor’s report

• Facts which become known to the auditor after the date of the auditor’s report but before the date the financial statements are issued

• Facts which become known to the auditor after the financial statements have been issued

LO3.2.5: Identify the subsequent events and explain the auditor’s responses.

3 Written representation (ISA 580) 2 LO3.3.1: Discuss the nature of written representations as audit evidence


Syllabus Ref


LO3.3.2: Discuss the circumstances where written representations are necessary and the matters on which representations are commonly obtained

LO3.3.3: Discuss the form and content of written representations

LO3.3.4: Explain the various types of written representation

LO3.3.5: Discuss the auditor’s course of action if management refuses to provide requested written representation.

LO3.3.6: Discuss the auditor’s course of action when there is doubt as to the reliability of written representation provided by the management.

4 Consideration of related parties (ISA 550) 2 LO3.4.1: Describe the term related party using simple examples

LO3.4.2: Discuss how related party transactions can give rise to the risk of material misstatement using simple examples

LO3.4.3: describe the audit procedures including risk assessment procedures and related activities to obtain information relevant to identifying the related party relationships and transactions including responses to the assessed risk of material misstatement.

5 Using the work of internal auditors and auditor’s experts (, ISA 610 and ISA 620)

2 LO3.5.1: Explain the relationship between the external auditor with internal auditors and auditor’s experts

LO3.5.2: Explain the internal audit function including internal audit activities

LO3.5.3: Discuss the factors determining the independence of internal auditors and weaknesses and limitations of internal audit

LO3.5.4: Discuss how external auditors determine whether and to what extent they use the work of internal audit


Syllabus Ref


LO3.5.5: Discuss how the auditor assesses the work of an expert

LO3.5.6: Discuss how the external auditor uses the work of an auditor’s expert when that work is used to assist in obtaining sufficient appropriate audit evidence.

6 Engagement to review financial statements 2400

2 LO3.6.1: Explain the objective of a review engagement of financial statements and how it differs from an audit

LO3.6.2: State the terms of engagement which may be included in the engagement letter

LO3.6.3: Explain assurance and non-assurance engagement with examples.

LO3.6.4: Describe the procedures generally adopted by the practitioner to obtain evidence in review engagements LO3.6.5: Discuss and explain the report issued under engagement to review financial statements.

D Computer programming and IT controls

1 Benefits and limitations of flowcharts 1 LO4.1.1: Describe the macro, mini and micro level details of flowcharts

LO4.1.2: State the benefits and limitations of flowcharts using simple examples.

2 Types of flowcharts 1 LO4.2.1: Classify and distinguish between types of flowcharts, namely, linear, deployment and opportunity flowcharts

LO4.2.2: Draw different types of

flowcharts for given situations

3 General and application controls in IT systems/environment

1 LO4.3.1: Describe general controls and classify them into environment, development, maintenance and operational controls using simple examples

LO4.3.2: Describe IT application controls using simple examples


Syllabus Ref


LO4.3.3: Discuss the evaluation of various IT controls including authorization, separation of duties/functions, adequacy of documentation, access controls, safeguard of IT assets, independent check on performance, verification of accounting records, comparison of accounting records with assets, computer-dependent controls (edit, validation, etc.), user controls (control balancing, manual follow-up, etc.), audit trails

LO4.3.4: State controls over data

transmission

4 Preventative, detective and corrective controls

2 LO4.4.1: Describe preventative, detective and corrective controls using simple examples.

LO4.4.2: Describe procedures and controls for identification/investigation /correction / tracking of errors in IT systems/environment

5 Logical access controls 2 LO4.5.1: Describe logical access controls for a given situation/system.

LO4.5.2: Describe the usefulness of system logs for analysing a system’s performance.

E Professional Ethics

1 Fundamental principles (sections 100 to 150 of the Code of Ethics for Chartered Accountants)

2 LO5.1.1: Describe with simple examples

the fundamental principles of

professional ethics of integrity,

objectivity, professional competence

and due care, confidentiality and

professional behavior

LO5.1.2: Apply the conceptual

framework to identify, evaluate and

address threats to compliance with

fundamental principles

LO5.1.3: Understand the threats and

circumstances that cause threats of

selfinterest, self-review, advocacy,

familiarity, and intimidation


Syllabus Ref


LO5.1.4: Discuss the safeguards to offset the threats to compliance with the fundamental principles

LO5.1.5: Discuss the concept of ethical conflict resolution.

2 Client and engagement acceptance (section 210 of the Code of Ethics for Chartered Accountants)

2 LO5.2.1: Explain the advertisement and publicity guidelines of ICAP’s Code of Ethics for obtaining the audit work LO5.2.2: Apply the conceptual framework to identify, evaluate and address threats in case of Fees, Referral Fees and Tendering for audit work. LO5.2.3: Explain using simple examples the matters to be considered and the procedures that an audit firm/ professional accountant should carry out in the following circumstances:

• Client acceptance • Engagement acceptance • Changes in a professional

appointment (including Additional work, Mid-Term Removal and Non reappointment)


PCSC

PRESENTATION AND COMMUNICATION SKILLS COURSE

50 Hours Course to be completed in any RAET or recognized institutes

Learning outcomes of the Course

S.No. Skills Weightage

1 Intellectual

Demonstrate openness and objectivity in giving and receiving feedback.

10

2 Interpersonal and Communication

Present information in written and numeric form clearly.

Depict awareness of clear communication. 30

Demonstrate listening skills and understand given instructions. 10

3 Professional skepticism and professional judgment

Probe and question the relevant facts. 10

4* Write Essay on topics generally known to a school leaver. 15

5* Write meaningful and effective Précis. 10

6* Write business letter on a well explained scenario.

Write short business report on a well explained scenario. 15

Total 100

Methodology

Method Numbers Hours

*Classroom lectures on presentation, group discussion and writing skills and practice

5 10

Formal presentations before a group:

• Attended • Presented • Facilitators feedback on presentations

12

6

2

6

3

6

Group discussion on pre-seen and well prepared topics 4 8

*Essay writing on unseen topics 3 3

*Précis writing 4 3

*Write business letter on a well explained scenario

*Write short business report on a well explained scenario

6

3

3

3

*Feedback of trainer on essay, précis, letters and short business reports written by students

5

50

Note: *Syllabus has been revised in 264th meeting of the Council held on May 8th and 9th , 2015. The Institute shall conduct a Writing Skills Test of I hour 15 minutes duration that shall carry 40 marks. Subject to a transition under Directive 1.01, passing of the Test shall be a condition for issuance of Course Completion Certificate.


GWE 01

CERTIFICATE IN ACCOUNTING AND FINANCE *GATEWAY EXAMINATIONS

ACCOUNTING & REPORTING AND COST AND MANAGEMENT ACCOUNTING

Grid Weightage

Accounting and reporting

Preparation of financial statements in accordance with the Companies Act, 2017 and IFRSs including preparation of accounts from incomplete records

10-20

Preparation of consolidated financial statements and Accounting policies, changes in accounting estimates; and errors

15-25

Other areas of IFRS 20-30

Cost and management accounting

Cost, costing system and cost behavior 15-25

Decision making and financial management 15-25

Total 100

Note: *Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.


Contents Level

Proficiency Testing

Preparation of financial statements in accordance with the Companies Act, 2017 and IFRSs including preparation of accounts from incomplete records

Preparation of financial statements of limited companies in line with the requirement of the Companies Act, 2017 and International Financial Reporting Standards (excluding liquidations reconstructions and mergers)

2 2

Preparation of accounts from incomplete records 2 2

Preparation of consolidated financial statements and Accounting policies, changes in accounting estimates; and errors

Preparation of consolidated financial statements (one subsidiary)

IFRS 3 Business combinations (goodwill and cost of investment)

IFRS 10 Consolidated financial statements (Preparation of consolidated statements of financial position and comprehensive income)

IAS 28 Investment in associates and joint venture (Equity method and test of one associate)

2 2

Accounting policies, changes in accounting estimates; and errors (IAS-8) 2 2

Other areas of IFRS

IFRS 8 Operating Segment 2 1

IFRS 9 Classification, recognition and measurement of financial assets and liabilities Other than derivatives -Financial Instruments

1 1

IFRS 16 Leases (Excluding modification, sale and lease back and reassessment) 2 2

Events occurring after the reporting period (IAS-10) 2 1

IAS 12 Income Taxes (other than Business combination) 2 2

IAS 21 The effects of changes in foreign exchange rates (foreign exchange transactions)

2 1

IAS 37 Provisions, contingent liabilities and contingent assets (including IFRIC 1 changes in existing decommissioning, restoration and similar liabilities)

2 2

IAS 38 Intangible assets Recognition, de-recognition, measurement, amortization and measurement after recognition of non-current assets (including SIC 32 Intangible Assets – Web Site Costs)

2 2

IAS 41 Agriculture 2 1


COST AND MANAGEMENT ACCOUNTING Proficiency

Level

Inventory, Costing system and cost behaviour 2

Economic Order Quantity 2

Safety stock 2

Re-order level 2

Manufacturing expenses -actual and applied 2

Over or under absorbed overhead 2

Costing systems

Marginal costing 2

Absorption costing 2

Job order costing 2

Process costing 2

Treatment of Joint and By-Products 2

Standard costing 2

Relevant cost

Variance analysis-material, labour and overhead 2

Decision making

Breakeven analysis 2

Make or buy decisions 2

Pricing for special orders 2

Further processing decisions 2

Utilization of spare capacity 2

Time value of money

Computation of net present value and internal rate of return 2


GWE 02 CERTIFICATE IN ACCOUNTING AND FINANCE

*GATEWAY EXAMINATIONS

AUDIT & ASSURANCE AND TAXATION

Grid Weightage

Audit and assurance

General concepts and principles of audit; Performance of audit and reporting 25

Specific areas and control systems 20

Professional ethics 5

Taxation

Income tax 35

Sales tax 15

Total 100

AUDIT AND ASSURANCE Level

Objective and general principal governing an audit (ISA 200) 2

Responsibility for the financial statements 2

Auditors responsibility to consider fraud (ISA 240) 1

Terms of Audit engagements (ISA 210) 2

Performance of audit and reporting

Planning an audit (ISA 300) 2

Assessment of audit risks (ISA 315) 2

Audit materiality (ISA 320) 2

Audit evidence (ISA 500) 2

Audit sampling (ISA 530) 2

Substantive procedures (ISA 330) 2

Tests of controls (ISA 330) 2

Analytical procedures (ISA 520) 2

Documentation (ISA 230) 2

Understanding of audit opinion and form of audit report under the Companies Act, 2017

2

Specific areas

External confirmations (ISA 505) 2

Subsequent events (ISA 560) 2

Written representation (ISA 580) 2

Consideration of related parties (ISA 550) 2



Using the work of component auditors, internal audits and auditor’s experts ( ISA 610 and ISA 620)

2

Review of interim financial statements by the independent auditor (ISRE 2400) 2

IT Controls

Control design 1

General controls 2

Preventative, detective and corrective controls 2

Audit trails 2

Professional ethics

Fundamental principles (sections 100 to 150 of the Code of Ethics for Chartered Accountants)

2

Client and engagement acceptance (section 210 of the Code of Ethics for Chartered Accountants)

2

TAXATION

INCOME TAX

Chapter I – Preliminary (concepts of terms defined in section 2 sub-section 1, 5, 5A, 6, 7, 9, 10, 11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46, 47, 49, 50, 51, 52, 53, 68) 52, 53, 68)

1

Chapter III – Tax on Taxable income (Excluding Section 29A, 30, 31, 36, 49, 57A, 59AA, 59B, 65C, 65D and 65E)

2

Chapter IV – (Part I, II and III) – Common rules (Excluding Sections 78 and 79) 1

Chapter V Part I – Central concepts 2

Chapter V Part II Div I and II – Individuals (Excluding Section 88A) 2

Chapter V Part III – Association of persons 2

Chapter VII Part II – Taxation of foreign-source income of residents 2

Chapter x Part I – Returns 2

Chapter x Part II – Assessments 1

Chapter x Part III – Appeals 1

Chapter x Part VIII – Records, Information Collection and Audit (Section174 and 177) 2

The Income Tax Rules related to the above chapters of the Income Tax Ordinance 2001 shall also be examined

1

First and Second Schedule attached to the Income Tax Ordinance 2001 2



Sales Tax

Sales Tax Act 1990 2

Chapter I – Preliminary (concepts of terms defined Section 2 sub-sections 3, 5AA, 9, 11, 14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33, 35, 39, 40, 41, 43, 44, 46)

2

Chapter II – Scope and payment of tax 2

Chapter III – Registration 2

Chapter IV – Book keeping and invoicing requirements 2

Chapter V – Returns 2

SalesTaxRules,2006

Chapter I – Registration, Compulsory registration and De-registration 2

Chapter II – Filing of return 2

Chapter III – Credit and Debit Notes 2

Chapter IV – Apportionment of Input Tax 2

Documents

CAF SYLLABUS5 CAF Syllabus Spring 2020 Syllabus Ref Contents Level Learning Outcomes Proficiency Testing materiality, prudence, going Elements of financial statements (meaning) - Assets,