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Page 1: SYLLABUS Spring 2015

Syllabus Spring - 2015

Page 2: SYLLABUS Spring 2015

Against each content of the syllabus, the given number shows the level of understanding

expected by the Institute.

The levels are explained as under:

Level 1

The competency of 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.

Level 2

The competency of 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 support in professional judgment and decision making.

Level 3

The competency of this level requires in-depth understanding of the subject matter and related

concepts. The candidate will be expected to have ability to critically examine and evaluate all

concepts and available information to make firm professional judgments and make decisions.

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C Contents

Page

(AFC-1) Functional English 1

(AFC-2) Business Communication 3

(AFC-3) Quantitative Methods 6

(AFC-4) Introduction to Information Technology 16

(CAF-1) Introduction to Accounting 21

(CAF-2) Introduction to Economics and Finance 28

(CAF-3) Business Law 34

(CAF-4) Business Management and Behavioural Studies 42

(CAF-5) Financial Accounting and Reporting I 49

(CAF-6) Principles of Taxation 54

(CAF-7) Financial Accounting and Reporting II 61

(CAF-8) Cost And Management Accounting 67

(CAF-9) Audit and Assurance 73

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Assessment of Fundamental Competencies Functional English

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Syllabus objectives and learning outcomes

ASSESSMENT OF FUNDAMENTAL COMPETENCIES

FUNCTIONAL ENGLISH

Objective

To ensure that candidates can communicate effectively in the English language.

Learning Outcome

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

1 use vocabulary correctly

2 construct sentences using correct grammar

3 write meaningful essays and précis and comprehend written English

Grid Weighting

English

Vocabulary 20

Practical use of Grammar 30

Composition and Comprehension (General) 50

Total 100

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Functional English

© Emile Woolf International vi The Institute of Chartered Accountants of Pakistan

Syllabus Ref

Contents Level Learning Outcome

A English

a Vocabulary

1 Meanings and application of vocabulary listed on "The Oxford 3000- Seventh Edition".

3 LO1.1.1: Use synonyms or antonyms for the given words in a sentence.

LO1.1.2: Construct meaningful sentences using the prescribed word list.

b Practical use of Grammar

1 Rules of sentences 3 LO2.1.1: Understand and construct declarative, interrogative, imperative, exclamatory and optative sentences

LO2.1.2: Understand and construct compound, complex, multiple and conditional sentences

2 Phrases and idioms 3 LO2.2.1: Construct meaningful sentences using commonly used phrases and idioms

3 Tenses 3 LO2.3.1: Understand and apply rules of tenses in sentences

4 Direct and indirect speech 3 LO2.4.1: Change sentences from direct to indirect and from indirect to direct speech

5 Active and passive voice 3 LO2.5.1: Change of sentences from active to passive voice and from passive to active voice

c Composition and

Comprehension (General)

1 Essay Writing 3 LO3.1.1: Write essays on topics generally known to a school leaver

2 Précis Writing 3 LO3.2.1: Write meaningful and effective précis

3 Comprehension and speed reading

3 LO3.3.1: Comprehend a brief write up and answer questions based on that write up

LO3.3.2: Assimilate the contents of a lengthy write up and answer questions based on that write up

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Assessment of Fundamental Competencies Business Communication

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Syllabus objective and learning outcomes

ASSESSMENT OF FUNDAMENTAL COMPETENCIES

BUSINESS COMMUNICATION

Objective

To ensure that candidates can communicate effectively while performing their professional responsibilities.

Learning Outcome

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

1 Comprehend concepts of business communication

2 Demonstrate awareness of listening skills concepts

3 Write simple business letters and short reports

4 Understand the utility of the internet with respect to business communication

Grid Weighting

Concepts 20

Listening skills 20

Business messages and report writing 40

Communication via the internet 20

Total 100

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Business Communication

© Emile Woolf International vi The Institute of Chartered Accountants of Pakistan

Syllabus Ref

Contents Level Learning Outcome

A Business Communication

a Concepts

1 Introduction to business communication

3 LO1.1.1: Define business communication

LO1.1.2: Describe with simple examples the goals, patterns (formal and informal) and channels of business communication

2 Communication process 1 LO1.2.1: Define “communication process”

LO1.2.2: Explain and illustrate the components of the communication process, namely: context, sender, message, medium, recipient, feedback

3 Seven C’s of effective communication

3 LO1.3.1: Describe with simple examples the seven C’s of effective communication

LO1.3.2: Identify weakness in a given simple communication applying the Seven C’s concept and suggest corrections

b Listening skills

1 Meaning, types and barriers to listening

3 LO2.1.1: Explain why listening is important in good business communication.

LO2.1.2: Describe types and barriers to listening

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Syllabus and study guide

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c Business messages

1 Business letters and circulars

2 LO3.1.1: Classify the type of business letters and circulars

LO3.1.2: Draft simple business letters and circulars

2 Persuasive letters and circulars

2 LO3.2.1: Explain the salient features of the persuasive letters and circulars

LO3.2.2: Draft simple persuasive letters and circulars

3 Short business reports 2 LO3.3.1: State the meaning and purpose of a short business report

LO3.3.2: Describe with examples the common sections of a short business report

LO3.3.3: Draft a simple business report

d Communication via the internet

1 Website hosting (types and services)

1 LO4.1.1: State meaning, types and services of web hosting

2 Features, benefits and limitations of email

1 LO4.2.1: State the main features of email.

LO4.2.2: Enlist the benefits and limitations of email

3 Features, benefits and limitations of video conferencing

1 LO4.3.1: State the main features of video conferencing

LO4.3.2: Enlist the benefits and limitations of video conferencing

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Assessment of Fundamental Competencies Quantitative Methods

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Syllabus objectives and learning outcomes

ASSESSMENT OF FUNDAMENTAL COMPETENCIES

QUANTITATIVE METHODS

Objective

To develop the ability to apply quantitative methods and statistics to business problems.

Learning Outcome

On completion of this paper the candidate will be able to:

1 Understand basic mathematics to build a base for financial analysis and transform business problems into mathematical equations;

2 Apply financial mathematics to solve business problems;

3 Analyse business solutions and identify feasible, alternative optimum and unbounded solutions using graphical methods;

4 Evaluate maximised profit, minimised cost and feasible manufacturing quantity by using calculus;

5 Analyse production planning cases and formulate solutions using matrices;

6 Present collected data using diagrams, charts and graphs and evaluate common measures of dispersion and central tendencies;

7 Evaluate the impact of inflation and rebase numbers using indices:

8 Use statistical methods in analyzing historical data for decision making and estimating future outcomes.

9 Explain and apply probability theory

10 Explain sampling and explain and carry out tests of significance 6

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Quantitative Methods

© Emile Woolf International x The Institute of Chartered Accountants of Pakistan

Grid Weighting

Mathematics

Basic mathematics 10

Financial mathematics 20

Calculus 10

Matrices and determinants 10

Statistics

Statistical methods 20

Methods of least square and regression 10

Probability and probability distribution 10

Sampling and decision making 10

Total 100

   

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Syllabus objectives and learning outcomes

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Contents Level Learning Outcome

Mathematics

Basic mathematics

Exponential and logarithmic functions

2 LO1.1.1: Demonstrate adequate knowledge of laws of logarithm.

LO1.1.2: Make use of logarithms in solving business problems.

LO1.1.3: Perform calculations involving exponential and logarithmic functions.

LO1.1.4: Analyse the behaviour of business problems involving exponential and logarithmic functions.

Equation of straight line 2 LO1.2.1: Demonstrate adequate understanding of various forms of the equation of a straight line.

Application of straight line in business and economics

2 LO1.3.1: Identify business situations where the equation of a straight line could be used.

LO1.3.2: Use the equation of a straight line in relevant business problems.

Simultaneous equation- linear and quadratic

2 LO1.4.1: Demonstrate adequate command of solving simple equations, including two variable simultaneous equations and quadratic equations.

Coordinate system 2 LO1.5.1: Demonstrate understanding of the coordinate system and be able to prepare graphs of linear equations.

System of linear inequalities and their graphical presentation

2 LO1.6.1: Demonstrate an understanding of linear inequalities.

LO1.6.2: Demonstrate the graphical presentation of linear inequalities.

Factorisation of equations including factorisation by completion of squares

2 LO1.7.1: Perform multiplication and division operations on linear and quadratic equations.

LO1.7.2: Solve quadratic equations by factoring and by completing the square method.

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Quantitative Methods

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Contents Level Learning Outcome

Mathematics

Basic mathematics (continued)

Arithmetic progression 2 LO1.8.1: Identify situations where data is in arithmetic progression.

LO1.8.2: Use arithmetic progression in business problems to calculate monthly instalments, first instalment, total amount paid and total time required for settlement of a loan etc.

Geometric progression 2 LO1.9.1: Use geometric progression in relevant situations.

Financial mathematics

Simple interest 2 LO2.1.1: Calculate interest value using simple interest.

Compound interest 2 LO2.2.1: Calculate interest value using compound interest.

Present value 2 LO2.3.1: Calculate the present value of a future cash sum using both a formula and tables.

LO2.3.2: Calculate the net present value (NPV) of a project.

LO2.3.3: Use NPVs to choose between mutually exclusive projects..

Future values 2 LO2.4.1: Calculate future values using both simple and compound interest.

Annuities 2 LO2.4.1: Calculate the present value of an annuity using both a formula and tables.

Internal rate of return 2 LO2.4.1: Explain with examples the use of the internal rate of return of a project.

Interpolation and perpetuities 2 LO2.4.1: Calculate the present value of a perpetuity.

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Syllabus objectives and learning outcomes

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Contents Level Learning Outcome

Mathematics

Linear programming

Graphical solution to linear programming problems involving redundant constraints, bounded and unbounded feasible regions, no feasible solution and alternative optimum solution

2 LO3.1.1: Demonstrate adequate expertise in transforming a business problem into a system of linear programming.

LO3.1.2: Identify constraints and cost minimization or profit maximization functions.

LO3.1.3: Identify the redundant constraint.

LO3.1.4: Use the Corner Point Theorem.

LO3.1.5: Prepare a graphical solution of a linear programming problem.

LO3.1.6: Analyse a graphical solution and identify whether it has a bounded or an unbounded feasible region or no feasible solution at all.

LO3.1.7: Analyse the solution of a linear programming problem and identify alternative and optimum solutions, if any exist.

Calculus

Rules for differentiation- Sum, difference, product and quotient rules of differentiation

2 LO4.1.1: Demonstrate an adequate understanding of rules of differentiation.

Marginal function, calculation of revenue, cost and profit of marginal unit

2 LO4.2.1: Make use of differentiation techniques in determining marginal functions.

LO4.2.2: Calculate revenue, cost and profit of a marginal unit using differentiation techniques.

Use of second order derivatives; maxima, minima and point of inflexion.

2 LO4.3.1: Demonstrate the application of second order derivatives in calculating maxima, minima and the point of inflexion.

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Quantitative Methods

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Contents Level Learning Outcome

Mathematics

Matrices and determinants

Fundamentals of matrices, addition, subtraction, multiplication, inverse of matrices

2 LO5.1.1: Demonstrate an adequate knowledge of matrix algebra (addition, subtraction and multiplication).

LO5.1.2: Calculate the determinant, adjoint and inverse of a matrix.

LO5.1.3: Make use of the properties of determinants while calculating determinants.

Solution of simultaneous linear equations using Cramer’s Rule and Matrix Inverse Method

2 LO5.2.1: Represent simultaneous linear equations in matrix form.

LO5.2.1: Solve simultaneous linear equations using Cramer’s Rule and Matrix Inverse Method.

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Syllabus objectives and learning outcomes

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Contents Level Learning Outcome

Statistics

Presentation and use of data

Collection and tabulation of data 2 LO6.1.1: Classify different types of data.

LO6.1.2: Perform data collection through various methods.

LO6.1.3: Organise and summarise data and present it as a frequency distribution.

Presentation through graphs, charts and diagrams, including stem and leaf display, box and whisker plot.

2 LO6.2.1: Present data using a simple bar chart, a multiple bar chart and a component bar chart.

LO6.2.2: Construct pie charts, histograms, frequency polygons, ogives, stem and leaf displays and box and whisker plots.

LO6.2.3: Analyse graphical representations of data.

Measures of central tendencies and measures of dispersions.

2 LO6.3.1: Calculate various measures of central tendency such as mode, median, arithmetic, geometric and harmonic means.

LO6.3.2: Analyse the advantages and disadvantages of various central tendency measures.

LO6.3.3: Identify the characteristics and measures of dispersion.

LO6.3.4: Use measures of dispersion, such as standard deviation or variance, to ascertain the degree of variation or variability in a distribution.

Index numbers

Index numbers, weighted index numbers, concept of purchasing power and deflation of income.

2 LO7.1.1: Define the index number and its types.

LO7.1.2: Use different formulae/methods to calculate various types of index number.

LO7.1.3: Analyse the uses and limitations of index numbers. For example, use index numbers to deflate or inflate a series and explain the result.

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Quantitative Methods

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Contents Level Learning Outcome

Methods of least square and regression

Scatter diagram, linear relationship, simple linear regression lines by method of least square.

2 LO8.1.1: Demonstrate an understanding of scatter diagrams, including their construction, uses and limitations.

LO8.1.2: Demonstrate an understanding of the basic concept of regression lines and how they are used.

LO8.1.3: Use least squares linear regression to construct a regression line (line of best fit).

LO8.1.4: Analyse regression lines.

LO8.1.5: Use a regression line to calculate a forecast of the value of a dependent variable where given the value of an independent variable.

Simple linear correlation 2 LO8.2.1: Demonstrate an understanding of the basic concept of correlation coefficient analysis.

Coefficient of correlation and determination

2 LO8.3.1: Calculate and analyse coefficients of correlation and determination.

Rank correlation 2 LO8.4.1: Define rank correlation.

LO8.4.2: Calculate the rank correlation coefficient between two sets of data and explain the value.

Probability and probability distribution

Counting techniques 2 LO9.1.1: Use counting techniques, like the mn counting rule and factorials for calculating, for example, a total number of outcomes.

LO9.1.2: Use permutations and combination to calculate the total number of possible selections from a set of data.

Probability 2 LO9.2.1: Understand the definition of probability and other basic terms as well as their applications.

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Syllabus objectives and learning outcomes

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Contents Level Learning Outcome

Probability and probability distribution (continued)

Addition law for mutually exclusive and not mutually exclusive events.

2 LO9.3.1: Use the addition rule while calculating probabilities.

LO9.3.2: Identify the difference between mutually exclusive and non-mutually exclusive events.

Multiplicative laws for dependent and independent events.

2 LO9.4.1: Identify the difference between dependent and independent events.

LO9.4.2: The Use multiplication rule while calculating conditional probabilities.

Binomial distribution 2 LO9.5.1: Account for the assumptions that underlie the Binomial distribution.

LO9.5.2: Demonstrate the use of Binomial distribution to calculate probabilities.

Poisson distribution 2 LO9.6.1: Account for the properties of the Poisson distribution.

LO9.6.2: Demonstrate the use of the Poisson distribution to calculate probabilities.

Hyper-geometric distribution 2 LO9.7.1: Identify situations where Hyper-geometric distribution could be used.

LO9.7.2: Demonstrate the use of Hyper-geometric distribution to calculate probabilities.

Normal distribution 2 LO9.8.1: Demonstrate the use of normal distribution including the use of tables.

LO9.8.2: Demonstrate the application of the normal distribution to calculate probabilities.

Sampling and decision making

Simple random sampling 2 LO10.1.1: Understand the terms, population and sample.

LO10.1.2: Explain methods for selecting a simple random sample.

Sampling distribution of mean 2 LO10.2.1: Define and construct a sampling distribution of the sample means.

LO10.2.2: Calculate the mean and standard deviation of a sampling distribution of sampling means.

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Quantitative Methods

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Contents Level Learning Outcome

Sampling and decision making (continued)

Standard error of mean 2 LO10.3.1: Calculate standard error of mean.

Sampling with and without replacement

2 LO10.4.1: Select an appropriate sampling technique for calculating the probabilities of sample means.

Testing of hypothesis for population means, difference between population means and population proportion and difference between two population proportions

2 LO10.5.1: Demonstrate the use of hypothesis testing, significance testing and testing a hypothesis.

LO10.5.2: Perform hypothesis test of populations means based on small and large samples

LO10.5.3: Perform hypothesis tests of the difference between two population means based on small and large samples

LO10.5.4: Perform hypothesis tests of the difference between two population proportions

LO10.5.5: Select appropriate distributions i.e., z or t for constructing a confidence interval for a population mean

Single population variance based on test of Chi-square.

2 Use the Chi-square distribution to perform tests of goodness of fit and independence.

Confidence interval for estimating population means, proportions and variance, and differences between proportions means, proportions and variance.

2 LO10.7.1: Construct the confidence interval for population means and difference of means.

LO10.7.2: Construct the confidence interval for population means and difference of proportion and variance.

Problems of determination of sample size for the study of population mean and proportion.

2 LO10.8.1: Calculate a sample size for an interval estimate of a population mean.

LO10.8.2: Calculate a sample size for an interval estimate of a population proportion.

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Assessment of Fundamental Competencies Introduction to Information Technology

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Syllabus objective and learning outcomes

ASSESSMENT OF FUNDAMENTAL COMPETENCIES

INTRODUCTION TO INFORMATION TECHNOLOGY

Objective

To enable candidates to equip themselves with the fundamental skills and proficiency required to cope with today’s highly challenging IT oriented business environment.

Learning Outcome

The candidates will be able to:

LO1 describe and classify different elements of a computer system

LO2 describe the basic operations in commonly used operating systems

LO3 demonstrate performance level knowledge in Microsoft Excel

LO4 demonstrate performance level knowledge in Microsoft Word

LO5 demonstrate performance level knowledge in Microsoft PowerPoint

Grid Weighting

A. Computer hardware and types of operating system 10

B. Microsoft Excel 40

C. Microsoft Word 30

D. Microsoft PowerPoint 20

Total 100

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Introduction to Information Technology

© Emile Woolf International vi The Institute of Chartered Accountants of Pakistan

Syllabus Ref Contents Level Learning Outcome

A Computer hardware and operating systems

1 Central processing units (CPUs) – processor, hard disk, random access memory, read-only memory

1 LO1.1.1 Explain the role and importance of basic components of a CPU

2 Input devices – Key board, mouse, touch pads, Scanner

1 LO1.2.1 State the uses and limitations of common input devices

3 Output devices – monitor, printer

1 LO1.3.1 State the differences between CRT and LCD/LED monitors

LO1.3.2 Classify different types of printers and state their relative advantages and limitations

4 Operating systems – DOS, Windows, Linux

1 LO2.1.1 State key operating system commands used for efficient searches, formatting disks, viewing IP configurations, testing network connections and exploring the network

5 Core Windows tasks – customize desktop and start menus, work with files and folders, log-on and log-off, search for information, lock the computer, use a screen-saver password, reset a password

1 LO2.2.1 State methods for customizing desktop presentation and the start menu

LO2.2.2 Define techniques to work efficiently with files and folders

LO2.2.3 State efficient ways to search for required information from active and archive files

LO2.2.4 State the important information that could be recorded whilst a user is logged-in

LO2.2.5 Define basic controls and practices that should be adopted by users for safeguarding of data stored in computers

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Syllabus objective and learning outcomes

© Emile Woolf International vii The Institute of Chartered Accountants of Pakistan

Syllabus Ref Contents Level Learning Outcome

B Microsoft Excel

1 Application of basic built-in functions and formulae like Sumif, Count, IF, Vlookup, Average, Sub-total

2 LO3.1.1 Demonstrate adequate command of and perform Sumif, Count, Vlookup, Average and Subtotal functions

LO3.1.2 Demonstrate effective use of functions such as IF, AND, OR

2 Creating and modifying customized data formats

2 LO3.2.1 Use appropriate Excel features to create customized data formats for storing currency and phone numbers

LO3.2.2 Modify existing data formats to enhance readability

3 Using conditional formatting 2 LO3.3.1 Use the conditional formatting feature to highlight exceptions

4 Protecting cells, worksheets and workbook

2 LO3.4.1 Perform the steps to protect certain cells, individual worksheets and an entire workbook

5 Merging workbooks 2 LO3.5.1 Perform the steps to share a workbook

LO3.5.2 Perform the steps to merge multiple copies of a shared workbook

6 Importing and exporting data to and from Excel

2 LO3.6.1 Export data from Excel to other applications and in other formats

LO3.6.2 Import data to Excel from other applications and in other formats

7 Creating and editing templates

2 LO3.7.1 Demonstrate adequate knowledge in creating and editing Excel templates

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Introduction to Information Technology

© Emile Woolf International viii The Institute of Chartered Accountants of Pakistan

Syllabus Ref Contents Level Learning Outcome

C Microsoft Word

1 Creating custom style for text, tables and lists

2 LO4.1.1 Use various Word features to present letters, reports and other documents in a presentable custom style LO4.1.2 Select an appropriate pre-defined table style for improved presentation

2 Sorting contents in lists and tables

2 LO4.2.1 Use Word’s built-in features to sort contents saved in tables

3 Modifying table formats 2 LO4.3.1 Use formatting tools to improve readability of data in tables

4 Creating and modifying a table of contents

2 LO4.4.1 Identify the basic formatting requirements to insert a table of contents LO4.4.2 Demonstrate performance level knowledge to insert and modify a table of contents

5 Inserting and modifying endnotes, footnotes, captions & cross references

2 LO4.5.1 Demonstrate performance level knowledge to insert and modify endnotes, footnotes, captions & cross references

D Microsoft PowerPoint

1 Creating new presentations from templates

2 LO5.1.1 Select a template from PowerPoint’s sample templates to construct simple presentations

2 Inserting and editing text-based content

2 LO5.2.1 Perform inserting and editing of text based content

3 Inserting, and editing tables, charts, diagrams, pictures, shapes, graphs and objects

2 LO5.3.1 Demonstrate performance-level knowledge of inserting and editing tables, charts and other objects in the presentation LO5.3.2 Use appropriate PowerPoint features to insert pictures, videos, graphs and other objects in the presentation 19

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Syllabus objective and learning outcomes

© Emile Woolf International ix The Institute of Chartered Accountants of Pakistan

Syllabus Ref Contents Level Learning Outcome

4 Applying slide transitions 2 LO5.4.1 Demonstrate performance-level knowledge whilst applying meaningful slide transitions

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© Emile Woolf International v The Institute of Chartered Accountants of Pakistan

Certificate in Accounting and Finance Introduction to accounting

S

Syllabus objective

and learning outcomes

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 and double entry rules.

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 prepare basic financial statements

6 prepare partnership accounts and account for transactions of admission, retirement etc.

Grid Weighting

Introduction to accounting and book keeping 40

Adjustments prior to completion of financial statements 20

Preparation of final accounts of sole traders 20

Accounting for partnerships 20

Total 100

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Introduction to accounting

© Emile Woolf International vi The Institute of Chartered Accountants of Pakistan

Contents Level Learning Outcome

Introduction to accounting and bookkeeping

Introduction to accounting

Meaning of business 1 LO1.1.1: Explain the characteristic of a business

LO1.1.2: Classify transactions that fall under the definition of business transactions

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

1 LO1.2.1: Describe the key features of sole proprietorship, partnership and limited company

LO1.2.2: Differentiate the features of sole proprietorship, partnership and limited company

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

2 LO1.3.1: Describe and illustrate the main concepts, namely, accrual, consistency, and completeness

LO1.3.2: Demonstrate familiarity with the concepts of true and fair view, materiality, prudence, going concern and substance over form

LO1.3.3: Apply the concepts of accrual, consistency and completeness to simple and well explained circumstances.

Financial statements- components, responsibility, presentation, users

1 LO1.4.1: List the components of a set of financial statements.

LO1.4.2: Explain the characteristics and purpose of the statement of financial position and the statement of comprehensive income.

LO1.4.3: Identify the responsibility to prepare and present financial statements

LO1.4.4: Describe the basic presentation layout of statements of financial position and statements of comprehensive income.

LO1.4.5: Identify users of financial information and describe how the information is useful to them

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Syllabus objective and learning outcomes

© Emile Woolf International vii The Institute of Chartered Accountants of Pakistan

Contents Level Learning Outcome

Bookkeeping

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

2 LO2.1.1: Define and give examples of assets, liabilities, equity, income and expenses

LO2.1.2: Apply the underlying concepts of assets, liabilities, income and expenses in simple and well explained circumstances.

Chart of accounts 1 LO2.2.1: Understand the meaning of a chart of accounts

LO2.2.2: Explain the purpose of establishing a chart of accounts

LO2.2.3: Construct a chart of accounts using given data

Double entry system, accounting equation and rules of debit and credit

2 LO2.3.1: Understand and apply, the accounting equation (Assets = Liabilities + Equity) in simple practical and common scenarios

LO2.3.2: identify financial and non-financial transactions in a well defined scenario

LO2.3.3: Understand and apply the concept of double entry accounting to simple and common business transactions

General journal 2 LO2.4.1: List and describe the basic contents of the general journal

LO2.4.2: prepare and use the general journal to record journal entries

Sales journal and the sales ledger

2 LO2.5.1: Describe the basic contents of the sales day book and the customer/debtors ledger

LO2.5.2: record entries in the sales day book and the customer/debtors ledger.

Purchase journal and the purchase ledger

2 LO2.6.1: Describe the basic contents of the purchase journal and purchase ledger/creditors ledger.

LO2.6.2: record entries in the purchase journal and purchase ledger/creditors ledger.

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Introduction to accounting

© Emile Woolf International viii The Institute of Chartered Accountants of Pakistan

Contents Level Learning Outcome

General ledger and trial balance

General ledger 2 LO3.1.1: Describe the main features of the general ledger

LO3.1.2: Post entries in the general ledger

Trial balance 2 LO3.2.1: Understand the purpose of the trial balance

LO3.2.2: Understand and demonstrate mapping between general ledger balances and the trial balance

LO3.2.3: Identify the limitations of a trial balance.

Adjustments before final accounts

Straight line, diminution balance, sum-of-years-digit, number of units produced methods and recording of depreciation on fixed Assets

2 LO4.1.1: Calculate depreciation expense using straight line, diminution balance, sum-of-digits and number of units produced methods

LO4.1.2: Post journal entry to record depreciation expense

Allowance for bad debts and write off

2 LO4.2.1: Estimate allowance for bad debts based on a given policy

LO4.2.2: Post journal entry to record bad debt expense

LO4.2.3: Compute and record write off and understand its impact on allowance for bad debts.

Prepayments and accruals 2 LO4.3.1: Understand the matching concept that applies to prepayments and accruals.

LO4.3.2: Post journal entries and ledger entries for prepayments and accruals.

LO4.3.3: Post adjusting entries to recognize revenues or expenses

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Contents Level Learning Outcome

Adjustments before final accounts (continued)

Closing entries of inventory 2 LO4.4.1: Understand the concepts of periodic and perpetual inventory system

LO4.4.2: Identify the need to post the adjustment entries of inventory at the end of the period in case of periodic inventory system.

LO4.4.3: Pass the adjusting entries and ledger entries at the end of the period.

Bank reconciliation and related adjustments

2 LO4.5.1: Understand the need for a bank reconciliation

LO4.5.2: Identify the main reasons for differences between the cash book and bank statements.

LO4.5.3: Prepare a bank reconciliation statement in the circumstance of simple and well explained transactions.

LO4.5.4: Correct cash book errors and post journal entries after identifying the same in bank reconciliation statement.

Control accounts - reconciliation and adjustments

2 LO4.6.1: Understand the mapping between control accounts and subsidiary ledger for accounts receivable and accounts payable.

LO4.6.2: Prepare control accounts and subsidiary ledger from well explained information provided.

LO4.6.3: Perform control accounts reconciliation for accounts receivable and accounts payable.

LO4.6.4: Identify errors after performing reconciliation

LO4.6.5: Identify and correct errors in control account and subsidiary ledgers.

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Introduction to accounting

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Contents Level Learning Outcome

Adjustments before final accounts (continued)

Correction of errors in record keeping

2 LO4.7.1: Identify the types of error which may occur in a record keeping system

LO4.7.2: Calculate and understand the impact of errors on the financial statements within a reporting period

LO4.7.3: Prepare journal entries to correct errors that have occurred within a reporting period

Preparation of final accounts of a sole trader

Statement of financial position 2 LO5.1.1: Understand the purpose of the statement of financial position

LO5.1.1: Prepare simple statements of financial position from information provided.

Statement of comprehensive income

2 LO5.1.1: Understand the purpose of the statement of comprehensive income

LO5.1.1: Prepare simple statements of comprehensive income from information provided

Receipt and payment accounts 2 LO5.1.1: Understand the purpose of a receipts and payments account.

LO5.1.1: Prepare a simple receipts and payments account from information provided.

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Contents Level Learning Outcome

Accounting for partnerships

Preparation of partnership accounts

2 LO6.1.1: Define a partnership and state its essential elements

LO6.1.1: Understand goodwill

LO6.1.1: Prepare

Capital account Current account

LO6.1.1: Prepare a profit and loss account and a statement of financial position of a partnership.

Admission and amalgamation 2 LO6.1.1: Process the necessary adjustments on the admission of a new partner, namely:

Revaluation of assets and liabilities of the firm

Treatment of goodwill

Application of new profit sharing ratio

LO6.1.1: Prepare the nominal accounts, profit and loss account and statement of financial position upon amalgamation of two partnerships.

Retirement, death, dissolution, liquidation

2 LO6.1.1: Make journal entries in the case of the dissolution of a partnership to record:

transfer and sale of assets and liabilities to third parties and partners,

payment of realization expenses, closing of the realization account and

settlement of partners’ capital account.

LO6.1.1: Process the necessary adjustments on the death or retirement of a partner:

adjustments relating to goodwill, accumulated reserves and undistributed profits

revaluation account adjustment and treatment of partners’

capital;

application of new profit sharing ratio

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Certificate in Accounting and Finance Introduction to economics and finance

S

Syllabus objectiveand learning outcomes

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.

2Understand 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.

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Introduction to economics and finance

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Grid Weighting

Concepts of economics 10

Microeconomics 30

Macroeconomics 30

Introduction to banking system, financial markets and international trade 30

Total 100

 

Syllabus Ref

Contents Level Learning Outcome

A Concepts of economics

1 The economic problem - wants, resources, scarcity

1 LO1.1.1: Describe, with examples, the economic problem

LO1.1.2: Discuss the production possibility curve

2 Economic systems - planned, market and mixed economies

1 LO1.2.1: Describe the functions of an economic system

LO1.2.2: Explain the features of planned, mixed and market economies

LO1.2.3: Provide example of a mixed economy, a planned economy and a market economy

LO1.2.4: Describe the shortfalls of a market economy

3 Islamic economic system 1 LO1.3.1: Describe the main features of the Islamic economic system

B Microeconomics

1 Microeconomics – nature 2 LO2.1.1: Define micro economics and discuss its scope

2 Demand and supply 2 LO2.2.1: Define law of demand and explain its assumptions and limitations

LO2.2.2: Define law of supply and explain its assumptions

3 Equilibrium of demand and supply

2 LO2.3.1: Explain the determination of price by equilibrium of demand and supply

LO2.3.2: Explain the effect of changes in demand and supply

LO2.3.3: Discuss the determination of price of perishable and durable goods 29

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4 Elasticity of demand and supply

2 LO2.4.1: Define elasticity of demand and briefly explain the measurement of price, income and cross elasticity of demandLO2.4.2: Describe the determinants of the elasticity of demand LO2.4.3: Define elasticity of supply and briefly explain the percentage and graphical methods of measurement of elasticity of supply LO2.4.4: Describe the determinants of supply elasticity

5 Utility analysis and indifference curve

2 LO2.5.1: Explain the law of diminishing marginal utility and discuss its assumptions and limitations LO2.5.2: Discuss the meaning and characteristics of indifference curves LO2.5.3: Explain consumers’ equilibrium through indifference curve analysis

6 Cost and revenue curves 2 LO2.6.1: Discuss short run curves of total cost, total fixed cost, total variable cost, average cost and marginal cost LO2.6.2: Derive a long run average cost curve from a short run average cost curve LO2.6.3: Derive a long run marginal cost curve LO2.6.4: Discuss revenue curves under perfect and imperfect competition

7 Equilibrium of firm short and long term under perfect competition, monopoly, oligopoly and monopolistic conditions

2 LO2.7.1: State the features of perfect and imperfect competition LO2.7.2: Discuss the short and long run equilibrium of firms under perfect and imperfect competition

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Syllabus Ref

Contents Level Learning Outcome

8 Laws of increasing and diminishing returns

2 LO2.8.1: Explain the law of increasing returns and its application and assumptions

LO2.8.2: Explain the law of diminishing returns and its application and assumptions

C Macroeconomics

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

2 LO3.1.1: Define gross national product, gross domestic product and net national product

LO3.1.2: Explain the product approach, income approach and expenditure approach to the measurement of national income

2 Consumption, saving and investment functions;

2 LO3.2.1: Understand the meaning of consumption and saving and its relationship with the income

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: Understand the determinants of the consumption function

LO3.2.4: Understand the stability of consumption and saving functions in the short run and discuss the reasons thereof

LO3.2.5: Understand the meaning of investment, induced investment and autonomous investment

LO3.2.6: Explain the relationship of investment with marginal efficiency of capital and interest rate.

3 Marginal propensity to consume and save

2 LO3.3.1: Discuss the marginal propensity to consume and save

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4 Multiplier and accelerator; 2 LO3.4.1: Comprehend the effect of the multiplier on the level of national incomeLO3.4.2: Understand the assumptions which underlie the multiplier concepts LO3.4.3: Comprehend the principle of acceleration of derived demand LO3.4.4: Understand how the multiplier and accelerator interact

5 Money and its value LO3.5.1: Understand the main functions of money LO3.5.2: Understand credit money and its advantages and disadvantages LO3.5.3: Understand sources of the money supply LO3.5.4: Understand the quantity theory of money LO3.5.5: Understand the measurement of the value of money LO3.5.6: Understand inflation and its kindsLO3.5.7: Understand the causes of inflation and measures for overcoming inflation

6 Growth and recession 2 LO3.6.1: Understand different phases of the business cycle LO3.6.2: Understand the indicators of growth and recession

7 Fiscal budget 2 LO3.7.1: Explain the objectives of fiscal policy and how they are achieved through fiscal budgets

8 Direct and indirect taxation 2 LO3.8.1: Define direct and indirect taxationLO3.8.2: Explain the advantages and disadvantages of direct taxation LO3.8.3: Explain the advantages and disadvantages of indirect Taxation

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Syllabus Ref

Contents Level Learning Outcome

D Introduction to banking system, financial markets and international trade

Banking system

1 Credit formation by banks 1 LO5.1.1: Explain the process of creation of credit money by the banks

LO5.1.2: Discuss the limitations on the creation of credit

2 Role of Central Bank; 1 LO5.2.1: Describe the functions of a central bank

3 Monetary policy 1 LO5.3.1: Understand the meaning of monetary policy

LO5.3.2: Understand the objectives of monetary policy and the mutual conflict of the objectives

4 Types of banks and financial institution

1 LO5.4.1: Define a bank and describe different kind of banks

Financial instruments and market-Meaning

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

1 LO6.1.1: Describe the main features of shares, debentures, bonds, futures, options, cap, floor, collar, swaps, forward

2 Money market 1 LO6.2.1: Describe the main features of money markets

3 Capital markets. 1 LO6.3.1: Describe the main features of capital and capital markets

4 Derivative market LO6.4.1: Describe the main features of derivatives and derivative markets

International trade

1 Balance of trade and payment

2 LO4.1.1: Understand the nature of items that are included in balance of trade and payment

LO4.1.2: Understand the different parts of balance of payment

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Certificate in Accounting and Finance Business Law

S

Syllabus objectiveand learning outcomes

CERTIFICATE IN ACCOUNTING AND FINANCE

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.

2Comprehension of law governing contracts, partnership and negotiable instruments.

3Knowledge 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.

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

7 Knowledge of the appointment of auditors and their responsibilities and duties.

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Business Law

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Grid Weighting

Introduction to legal system 5

Mercantile law

Contract Act 1872 25

Partnership Act 1932 10

Negotiable Instrument Act 1881 10

Companies Ordinance 1984

Sections 1 to 51 of the Companies Ordinance, 1984 10

Sections 52 to 136 of the Companies Ordinance, 1984 10

Sections 142 to 204A of the Companies Ordinance, 1984 10

Sections 208 to 251 of the Companies Ordinance, 1984 10

Sections 252 to 257 of the Companies Ordinance, 1984 10

Total 100

 

Syllabus Ref

Contents Level Learning Outcome

A Introduction to the Legal System

Sources and process of legislation

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

1 LO 1.1.1: Briefly describe sources of law in Pakistan

LO 1.1.2: Describe the basic structure of the constitution of the Islamic Republic of Pakistan

2 Process of legislation and legal system in Pakistan

1 LO 1.2.1: Define legislation and describe its forms.

LO 1.2.2: Briefly describe the process of legislation as per the Constitution.

LO 1.2.3: Identify the structure of the courts in Pakistan

.

B Mercantile law

Contract Act 1872

1 All sections 2 LO 2.1.1: Discuss the provisions of the act with respect to the following and demonstrate comprehension in simple scenario based problems)

communication, acceptance and revocation of proposals

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contracts, voidable contracts and void agreements

Contingent contracts performance of contracts breach of contract indemnity and guarantee bailment and pledge contract of agency

C Partnership Act 1932 1 Chapter I – Preliminary 2 LO 2.2.1: Define the terms

2 Chapter II - The nature of partnership

2 LO 2.3.1: Understand and describe the partnership relationship and its creation and identify which mode determines existence of a partnership.

3 Chapter III - Relations of partners to one another

2 LO 2.4.1: Determine the rights and duties of partners of the firm over property of the firm in given situations.

4 Chapter IV - Relations of partners to third parties

2 LO 2.5.1: Describe the relationship of partners with third parties. LO 2.5.2: Identify the implied authority of the partner in relation to third parties, liability of a partner for acts of the firm and liability of the firm for wrongful acts of a partner in given situations. LO 2.5.3: Identify the rights and liabilities of a minor admitted to the benefits of partnership:

D Negotiable Instruments Act 1881 1 Definitions and meanings

(Section 1 to 25) LO 2.6.1: Define and explain terms. LO 2.6.2: Explain types of negotiable instruments.

2 Discharge of liability (Section 82 to 90)

LO 2.7.1: Identify how the maker of a negotiable instrument is discharged from his liability under given scenarios.

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

LO 2.8.1: Describe crossing of chequesLO 2.8.2: Differentiate between a cheque crossed generally and a cheque crossed specially and their payment modes.

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Contents Level Learning Outcome

E Companies Ordinance 1984

Preliminary and incorporation (Sections 1 to 51)

1 Definitions (Section 2) 1 LO 3.1.1: Define the terms which are relevant to the areas covered in the syllabus

2 Meaning of "subsidiary" and "holding company" (Section 3)

2 LO 3.2.1: Explain subsidiary and holding company and when a company becomes a subsidiary or holding company of another company.

LO 3.2.2: Apply the concept of subsidiary in simple scenarios.

3 Powers and functions of the Commission (Section 12)

1 LO 3.3.1: Demonstrate familiarity with the powers and functions of the Commission.

4 Memorandum of association (Section 15 to 25)

2 LO 3.4.1: Describe the memorandum of association and state its purpose.

LO 3.4.2: List the clauses of memorandums of association of various types of companies.

LO 3.4.3: Describe the purpose and procedure of alteration to different clauses of a memorandum of association.

5 Articles of association (Section 26)

2 LO 3.5.1: Define the articles of association and state its purpose.

LO 3.5.2: State the information which should be contained in the articles of various companies.

6 Registration of memorandum and articles of association (Section 30 to 36)

2 LO 3.6.1: Describe the procedure of registration of the memorandum and articles of association

LO 3.6.2: Describe the effects of registration of the memorandum and articles of association.

7 Provisions with respect to names of companies (Section 37 to 41)

2 LO 3.7.1: Describe with examples the prohibitions with regard to the selection of the name of a company.

LO 3.7.2: Identify the actions and procedures needed to be taken by company and registrar, if a company is registered by a prohibited name.

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8 Association not for profit (Section 42)

1 LO 3.8.1: Comprehend the nature of association not for profit.

9 Companies limited by guarantee (Section 43)

1 LO 3.9.1: Understand the provisions regarding divisible profit and dividing the undertaking into shares or interest.

F Allotment of shares, registration of charge etc. (Sections 52 to 136) 1 Prospectus, allotment, issue

and transfer of shares and debentures, deposits, etc. (Section 52 to 57)

1 LO 4.1.1: Define a prospectus and explain its purpose. LO 4.1.2: Understand the requirements relating to a prospectus as laid down in Section 52, 53 (1), (5) and (8) LO 4.1.3 Describe the matters that are to be specified in a a prospectus as required under clause 1 to 7 and 17, 18 19, 24, 26 and 27 of Section 1 of Part I of Second Schedule. LO 4.1.4: Describe the reports that are to be included in a prospectus as required under Section 2 of Part I of Second Schedule. LO 4.1.5: Understand the provisions regarding statement and consent of expert.

2 Share capital and debentures (Section 89 to 95 and 108)

1 LO 4.2.1: Describe the nature of shares and share certificates LO 4.2.2: Describe the classes and kinds of shares LO 4.2.3: Describe with simple example the condition of fully paid shares. LO 4.2.4: State with simple examples the kinds of alterations can be made to the share capital. LO 4.2.5: State the rules on prohibition of purchase of a company’s own or its holding company’s shares. LO 4.2.6: Understand the meaning of variation of shareholders’ right. LO 4.2.7: Demonstrate familiarity with the procedure for cancellation of variation of shareholders’ right.

Syllabus objective and learning outcomes

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Contents Level Learning Outcome

3 Registration of mortgages, charges etc. (Section 121, 129, 132 and 136)

1 LO 4.3.1: Discuss the meaning of mortgage/charge with simple examples, and the duty of company and the procedure for registration of charges.

LO 4.3.2: State the right of an interested party in respect of a registration of mortgage/charge.

LO 4.3.3: State the duty and procedure of payment or satisfaction of mortgage/charge.

LO 4.3.4: Demonstrate familiarity with the right to inspect the instrument creating a mortgage/charge.

LO 4.3.5: Discuss the consequences of registered and unregistered mortgages/charges.

G Management and administration (Sections 142 to 204A)

1 Registered office, publication of names etc. (Section 142 to 145)

2 LO 5.1.1: Discuss with simple examples the provisions with regard to having a registered office, publication of name and publication of paid-up capital.

2 Commencement of business by a public company (Section 146)

1 LO 5.2.1: State the conditions to be fulfilled before commencement of business by a company.

LO 5.2.2: State the applicability and non-applicability of the conditions on different kinds of company.

3 Meeting and proceedings (Section 157 to 173)

1 LO 5.3.1: State the timing, matters and reports relating to statutory meetings.

LO 5.3.2: State the timing, matters and reports relating to an annual general meeting using simple examples.

LO 5.3.3: State who can call an annual general meeting.

LO 5.3.4: State the timing, matters and reports relating to an extraordinary general meeting

LO 5.3.5: State who can call an extraordinary general meeting.

LO 5.3.6: State the quorum for a general meeting

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LO 5.3.7: State the entitlement of a member in respect of appointment of proxy and conditions applicable thereon.LO 5.3.8: Describe the provisions relating to minutes of meetings

4 Directors(Section 174 to 197A)

1 LO 5.4.1: Explain and apply in given scenarios, the legal provision with respect to directors’: Eligibility Number Elections Vacation of office Powers, duties and liabilities

LO 5.4.2: State the legal restrictions on a company with reference to loans to directors

5 Chief executive(Section 198 to 204A)

1 LO 5.5.1: Explain the appointment of first chief executive and subsequent chief executives using simple examples. LO 5.5.2: State the conditions applicable on appointment, removal, engagement in any business LO 5.5.3: State the provisions relating to appointment of a secretary

H Investments, accounts etc. (Sections 208 to 251) 1 Investment in associated

companies and undertakings (Section 208)

2 LO 6.1.1: 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 209)

1 LO 6.2.1: 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 214)

1 LO 6.3.1: Explain the requirements of disclosure of interest by director in contract / arrangement entered into by or on behalf of the company.

Syllabus objective and learning outcomes

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4 Interest of other officers etc. (Section 215)

1 LO 6.4.1: Explain the 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 216)

1 LO 6.5.1: Describe the participation of interested director in the proceedings of directors in contract / arrangement entered into by or on behalf of the company

6 Accounts (Section 230, 233, 236, 241 and 242 )

LO 6.6.1: List the books of accounts to be kept by company

LO 6.6.2: Explain the major requirements with respect to the annual accounts and the balance sheet.

LO 6.6.3: Describe the contents of a directors’ report

LO 6.6.4: Describe the authentication of balance sheet and profit and loss account

LO 6.6.5: Discuss requirements of filing of balance sheets and profit and loss accounts with the registrar.

7 Dividend (Section 248 to 251)

LO 6.7.1: Explain the requirement relating to declaration of dividend and identify certain restrictions on declaration of dividend.

LO 6.7.2: Describe the provisions applicable to payment of dividend.

I Audit (Sections 252 to 257)

1 Audit (Section 252 to 257) 2 LO 7.1.1: Explain the provisions applicable to

Appointment and remuneration of auditors

Qualification and disqualification of auditors

An auditor’s right to access the record and information

An auditor’s duty to report and contents thereof

Signature of an audit report

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Certificate in Accounting and Finance Business management and behavioural studies

S

Syllabus objective and learning outcomes

CERTIFICATE IN ACCOUNTING AND FINANCE

BUSINESS MANAGEMENT AND BEHAVIOURAL STUDIES

Objective

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

Learning Outcome

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

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

2 Show familiarity with the structure of business organizations, 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

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

7 Demonstrate a basic understanding of IT based management information systems

 

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Business management and behavioral studies

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Grid Weighting

Management concepts 25

Organizational process 20

Individual behavior and motivation 20

Leadership, negotiation and conflicts 20

Management information system 15

Total 100

 

Syllabus Ref

Contents Level Learning Outcome

A Management concepts

1 Meaning 1 LO 1.1.1 Define the term Management, its nature and purpose

LO 1.1.2 State the difference between Managers and Leaders using examples

LO 1.1.3 Describe the classification of management roles by Henry Mintzberg

2 Functions 1 LO 1.2.1 Illustrate management model and explain the functions of management

LO 1.2.2 Describe the roles and skills of management

3 Classical approach 2 LO 1.3.1 Describe the principles of Scientific management by Fredrick Taylor

LO 1.3.2 Explain the key principles of management by Fayol and Urwick

LO 1.3.3 Discuss the criticism on scientific management and classical approach to management

LO 1.3.4 List the characteristics of bureaucratic organizations and discuss criticism on this form of management

4 Behavioral approach 2 LO 1.4.1 Discuss the Hawthorne experiments on human relation approach, their significance and implications.

LO 1.4.2 Discuss critically the relevance of these experiments for management and organizational behaviour.

LO 1.4.3 Discuss Theory X and Theory

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Contents Level Learning Outcome

Y including their implication and differences

5 Management science approach

2 LO 1.5.1 Explain the effects of operations research in business sciences

6 External factors – Competitors, suppliers, labour, customers

2 LO 1.6.1 Describe the direct and indirect interactive forces which may affect the organizational environment

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

2 LO 1.7.1 Explain how the external forces affect the organizational environment using examples.

B Organizational process

1 Organizational structure - principles of organization, different ways of structuring organization

2 LO 2.1.1 Explain the meaning and nature of organizational structure.

LO 2.1.2 Explain the importance of good structure and consequences of a deficient structure.

LO 2.1.3 Describe how the elements of organizational structure can be combined to create mechanistic and organic structures

LO 2.1.4 Describe the advantages and disadvantages of mechanistic and organic structure of organization

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

2 LO 2.2.1 Identify the external forces creating change on the part of organizations

LO 2.2.2 Describe process of organizational change

LO 2.2.3 Explain the forms of reactions to change

3 Organizational culture - concept, dysfunctional aspect of culture

2 LO 2.3.1 Describe organizational culture using examples

LO 2.3.2 Discuss using examples the different levels of organizational culture

C Individual behavior and motivation

1 Perception 2 LO 3.1.1 Explain perception and perception process

LO 3.1.2 Discuss using examples the difference between sensation and perception

LO 3.1.3 Discuss using examples the internal and external factors that affect 44

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Contents Level Learning Outcome

perceptual selectivity

LO 3.1.4 Describe the characteristics of Perceiver and Perceived

LO 3.1.5 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 culture of an organization

LO 3.2.2 Discuss the differences between cognitively based attitudes and affectively based attitudes

LO 3.2.3 Describe the difference between implicit and explicit attitudes

LO 3.2.4 Discuss cross-cultural differences in the bases for attitudes

LO 3.2.5 Explain the relationship between attitude and behaviour

3 Job satisfaction and stress 2 LO 3.3.1 Explain using examples the meaning of job satisfaction.

LO 3.3.2 Identify the outcomes of job satisfaction and ways to enhance satisfaction

LO 3.3.3 Describe stress and identify the causes of job stress

LO 3.3.4 Explain using examples the general categories of stressors that can affect job

LO 3.3.5 Identify consequences of stress and strategies in order to cope up with stress

4 Maslow need hierarchy Model

2 LO 3.4.1 Describe using examples motivation

LO 3.4.2 Explain Maslow’s need hierarchy theory

LO 3.4.3 Explain strengths and problems in applications of Maslow’s theory

5 Herzberg’s Two-factor Theory

2 LO 3.5.1 Explain Herzberg’s two factors of motivation and major criticism thereon

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Contents Level Learning Outcome

6 McClelland’s theory of needs

2 LO 3.6.1 Explain the three motives by McClelland.

LO 3.6.2 State the difference between intrinsic and extrinsic motives

7 Goal setting 2 LO 3.7.1 List the major dimensions of goal setting theory

LO 3.7.2 Explain why and how goals contribute to self-motivation

LO 3.7.3 Describe how to set effective goals and the problems sometimes created by goals

8 Management by objective 2 LO 3.8.1 Explain the basic steps of the overall performance system of MBO.

9 Self-efficacy 2 LO 3.9.1 Define the term self-efficacy

LO 3.9.2 Understand high self-efficacy and low self-efficacy

10 Reinforcement 2 LO 3.10.1 Describe law of effect using simple examples

LO 3.10.2 Describe reinforcement as used in behavioural management

LO 3.10.3 Describe positive and negative reinforcers using examples

11 Equity/organizational justice 2 LO 3.11.1 Explain organizational justice and three components of the same, namely, distributive, procedural and interactional

12 Expectancy 2 LO 3.12.1 Describe using simple examples the Expectancy theory and its three elements, namely, expectancy, instrumentality and valence

D Leadership, negotiation and conflicts

1 Type of leadership 2 LO 4.1.1 Discuss different leadership styles, namely, free-rein, engaging, participative, task oriented and autocratic

2 Theories of leadership 2 LO 4.2.1 Discuss using simple examples different theories of leadership, namely, trait theories, Blake and Mouton theory, situational and contingency theories

3 Roles, activities, skills of leaders

2 LO 4.3.1 Discuss leadership roles and activities

LO 4.3.2 Identify Skills needed for 46

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Contents Level Learning Outcome

effective leadership

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

2 LO 4.4.1 List differences between groups and teams

LO 4.4.2 Explain and illustrate balance theory of group formation

LO 4.4.3 Identify and describe stages of group development

LO 4.4.4 List down the factors that increase and decrease group cohesiveness

LO 4.4.5 Explain the ways to make teams more effective

5 Negotiation skills 2 LO 4.5.1 Explain various stages of the negotiation process

LO 4.5.2 List five skills of effective negotiator

LO 4.5.3 Explain the low risk techniques of negotiation

LO 4.5.4 Explain the high risk techniques of negotiation

6 Conflict resolution 2 LO 4.6.1 Discuss the conflict resolution process

LO 4.6.2 Explain Intra-individual conflict with model of frustration

LO 4.6.3 List some of the physical, psychological and behavioural problems occur due to conflict

E Management information systems

1 General system concepts of information technology

1 LO 5.1.1 Demonstrate basic understanding of computer hardware i.e. input, output, storage of information and networking

LO 5.1.2 Understand the concepts of information technology and information systems.

LO 5.1.3 Understand the role and types of information systems in business

2 IT-based transaction processing systems

1 LO 5.2.1 Understand data entry, batch processing, online processing and real time -online processing

3 IT-based financial reporting 1 LO 5.3.1 Understand IT based financial

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Contents Level Learning Outcome

systems reporting system

4 IT-based order processing and inventory control systems

1 LO 5.4.1 Understand IT based order processing and inventory control systems

5 IT-based personnel systems 1 LO 5.5.1 Understand IT based personnel systems

6 Integrated IT systems 1 LO 5.6.1 Briefly describe integrated systems, their advantages and disadvantages

LO 5.6.2 Understand main feature of Enterprise Resource Planning

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Certificate in Accounting and Finance Financial accounting and reporting I

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Syllabus objectives and learning outcomes

CERTIFICATE IN ACCOUNTING AND FINANCE

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

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

1 prepare financial statements in accordance with specified international pronouncements.

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

3 understand the nature of revenue and be able to account for the same in accordance with international pronouncements.

4 account for simple transactions between head office and branches.  

Grid             Weighting 

Preparation of component of financial statements  20 

Income  and  expenditure  account  and  preparation  of  accounts  from incomplete records 

20 

Accounting for inventories; and property, plant and equipment  35 

Revenue accounting  15 

Branch accounts  10 

Total                100 

 

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Financial accounting and reporting I

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Contents Level Learning Outcomes

Preparation of components of financial statements with adjustments included in the syllabus

Preparation of statement of financial position (IAS 1)

1 LO1.1.1: Prepare simple statement of financial position in accordance with the guidance in IAS 1 from data and information provided

Preparation of statement of comprehensive income (IAS 1)

1 LO1.2.1: Prepare simple statement of comprehensive income in accordance with the guidance in IAS 1 from data and information provided

Preparation of statement of cash flows (no format specified)

1 LO1.3.1: Compute items which are presented on the statement of cash flows

LO1.3.2: Prepare a statement of cash flows under any standard method

Income and expenditure account

2 LO1.4.1: Prepare simple income and expenditure account using data and information provided

Preparation of accounts from incomplete records

2 LO1.5.1: Understand situations that might necessitate the preparation of accounts from incomplete records (stock or assets destroyed, cash misappropriation or lost, accounting record destroyed etc.)

LO1.5.2: 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

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Syllabus objective and learning outcomes

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Contents Level Learning Outcomes

Accounting for inventories (IAS 2); and property, plant and equipment (IAS-16)

Application of cost formulas (FIFO/ weighted average cost) on perpetual and periodic inventory system

2 LO2.1.1: Understand and analyze the difference between perpetual and periodic inventory systems.

LO2.1.2: Understand and analyze the difference between FIFO and weighted average cost formulas and use them to estimate the cost of inventory).

LO2.1.3: Account for the application of cost formulas ( FIFO/ weighted average cost) on perpetual and periodic inventory system

LO2.1.4: Identify the impact of inventory valuation methods on profit.

Cost of inventories (cost of purchase, cost of conversions, other costs)

2 LO2.2.1: Calculate cost of inventory in accordance with IAS-2 using data provided including cost of purchase, cost of conversions, and other costs.

LO2.2.2: Identify relevant and irrelevant cost from data provided.

Measurement of inventories (lower of cost or net realizable value)

2 LO2.3.1: Describe net realizable value (NRV)

LO2.3.2: Explain the situation when the cost of inventories may not be recoverable.

LO2.3.3: Demonstrate the steps in measuring inventory at lower of cost or NRV.

LO2.3.4: Post journal entries for adjustments in carrying value (excluding reversal of write downs)

Presentation of inventories in financial statements

2 LO2.4.1: Understand the disclosure requirements and prepare extracts of necessary disclosures (excluding pledged inventories and reversal of write downs).

Initial measurement of property, plant & equipment (components of cost, exchange of assets)

1 LO2.5.1: 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

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Financial accounting and reporting I

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Contents Level Learning Outcomes

IAS 2 and IAS-16 (continued)

Measurement after recognition of property, plant and equipment

1 LO2.6.1: Present property, plant and equipment after recognition under cost model and revaluation model using data and information provided.

Depreciation - depreciable amount, depreciation period and depreciation method

1 LO2.7.1: Define depreciation, depreciable amount and depreciation period

LO2.7.2: Calculate depreciation according to the following methods

straight-line, diminishing balance the units of production

LO2.7.3: Compute depreciation for assets carried under the cost and revaluation models using information provided including impairment.

LO2.7.4: Prepare journal entries and ledger accounts.

De-recognition 1 LO2.8.1: Describe de-recognition of property, plant and equipment

LO2.8.2: Post journal entries to account for de-recognition using data provided

Revenue accounting

Revenue (IAS-18) 2 LO3.1.1: Describe revenue

LO3.1.2: Describe and demonstrate the accounting treatment (measurement and recognition) for revenue arising from the following transactions and events:

sale of goods; rendering of services use by others of entity assets yielding

interest, royalties and dividends.

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Contents Level Learning Outcomes

Branch accounts

Branch accounts (excluding foreign branches)

2 LO4.1.1: Describe the special features of branch accounting including differences to routine accounting

LO4.1.2: Understand and apply the treatment of branch inventory, branch mark-up, goods sent to branch and branch debtors; in the books of head office

LO4.1.3: Prepare trading/income statement of branch.

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© Emile Woolf International v The Institute of Chartered Accountants of Pakistan

Certificate in Accounting and Finance Principles of Taxation

S

Syllabus objectives and learning outcomes

CERTIFICATE IN ACCOUNTING AND FINANCE

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

 

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Principles of Taxation

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Grid Weighting

Objective, system and historical background,Constitutional provisions and Ethics

Income tax

Sales tax

10

65

25

Total 100  

Syllabus Ref

Contents Level Learning Outcome

A Basic concepts of taxation

1 Objectives 1 LO 1.1.1: Comprehend the main objectives of taxation LO 1.1.2: Justify Taxation as means of development

2 Basic concept 1 LO 1 2.1: Understands 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 LO 1.3.1: Comprehend different kinds of taxes and their scope

4 Historical background 1 LO 1.4.1: State the history of taxation in sub-continent

B Constitutional provisions

1 Federal financial procedures

(Article 78 to 88 of the Constitution of Pakistan)

1 LO 2.1.1: Demonstrate familiarity with the Federal Consolidated Fund and Public Account

LO 2.1.2: 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 LO 2.2.1: Demonstrate familiarity with the Provincial Consolidated Fund and Public Account

LO 2.2.2: Demonstrate familiarity with the expenditure that can be charged upon Provincial Consolidated Fund

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3 Distribution of revenues between Federation and the Provinces

(Article 160 to 165A of the Constitution of Pakistan)

1 LO 2.3.1: Demonstrate familiarity with the formation of National Finance Commission and its main function.

LO 2.3.2: Demonstrate familiarity with the taxes that can be raised under the authority of Parliament

LO 2.3.3: Demonstrate familiarity with the powers of provincial assemblies in respect of professional tax

LO 2.3.4: Demonstrate familiarity with the exemption available to federal and provincial governments

LO 2.3.5: 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 LO 2.4.1: Enlist the revenue collection mentioned at S. No. 43 to 53 in Fourth Schedule attached to the Constitution

C Ethics

1 Ethics for tax legislation 2 LO 3.1.1: Describe how canons of taxation developed by economist are relevant for legislators while formulating tax policies

2 Ethics for taxpayers 2 LO 3.2.1: Understand the right and purpose of state to tax its citizen

LO 3.2.2: Understand morality behind compliance with tax laws

3 Ethics for tax implementing authorities

2 LO 3.3.1: Understand the powers Vs ethical responsibilities of tax implementation authorities

LO 3.3.2: Understand pillars of tax administration, namely, fairness, transparency, equity and accountability

4 Tax evasion and avoidance 2 LO 3.4.1: Explain with simple examples the basic difference between evasion and avoidance of tax

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Syllabus Ref

Contents Level Learning Outcome

D 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 LO 4.1.1: 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 LO 4.1.2: Describe other definitions covered under relevant sections LO 4.1.3: Apply definitions on simple scenarios

2 Chapter II – Charge of tax (excluding section 7)

2 LO 4.2.1: Explain the chargeability of tax with simple examples

3 Chapter III – Tax on Taxable income (Excluding Section 29A, 30 and 31)

2 LO 4.3.1: 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

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

1 LO 4.4.1: Understand and apply on simple scenarios provisions for income of joint owner, apportionment of deductions, fair market value and receipt of income

LO 4.4.2: Explain using simple examples the provisions relating to tax year

LO 4.4.3: 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 LO 4.5.1: 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 (Excluding Section 88A)

2 LO 4.6.1: Describe with simple examples the principles of taxation of individuals

7 Chapter V Part III – Association of persons

2 LO 4.7.1: Describe with simple examples the principles of taxation of association of persons

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Contents Level Learning Outcome

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

2 LO 4.8.1: Understand the applicability of tax on foreign salary income, credit against foreign tax and treatment of foreign loss of a resident on simple scenarios.

9 Chapter X Part I – Returns 2 LO 4.9.1: Identify persons required to furnish a return of income

LO 4.9.2: Identify persons not required to furnish a return of income

LO 4.9.3: Identify persons required to furnish wealth statements

LO 4.9.4: List the contents of wealth statement

10 Chapter X Part II – Assessments

1 LO 4.10.1: Understand the meaning of assessment by Commissioner and power of Commissioner to conduct audit

11 Chapter X Part III – Appeals 1 LO 4.11.1: List the appellate bodies

LO 4.11.2: Explain using simple examples the circumstances when appeal to the Commissioner (Appeals) is made and the pre-conditions applicable

LO 4.11.3: Explain the provisions relating to decision of appeals by Commissioner (Appeals) using simple examples

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

2 LO 4.12.1: Understand the provisions relating to records to be kept by the taxpayers

LO 4.12.2: Describe the provisions relating to audit by Commissioner

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

1 LO 4.13.1: Apply rules relevant to learning outcomes specified against each topic on well explained scenarios

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

2 LO 4.14.1: Apply clauses relevant to learning outcomes specified against each topic on well explained scenario

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Syllabus Ref

Contents Level Learning Outcome

E Sales Tax

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 LO 5.1.1: 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

LO 5.1.2: Describe other definitions covered under relevant sections

LO 5.1.3: Apply definitions on simple scenarios

2 Chapter II – Scope and payment of tax

2 LO 5.2.1: Understand the application sales tax law on taxable supplies including zero rated and exempt supplies

LO 5.2.2: State the determination, time and manner of sales tax liability and payment using simple examples

3 Chapter III – Registration LO 5.3.1: State the requirement and procedure of registration

4 Chapter IV – Book keeping and invoicing requirements

LO 5.4.1: List the record to be kept by a registered person

LO 5.4.2: State the requirements of tax invoice

LO 5.4.3: Explain the retention period of record using simple examples.

5 Chapter V – Returns LO 5.5.1: Understand the various types of returns required to be filed by registered and un-registered persons.

Sales Tax Rules, 2006

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

2 LO 6.1.1: Explain the requirement and procedure of registration, compulsory registration and deregistration using simple examples

2 Chapter II – Filing of return 2 LO 6.2.1: Explain the requirement and procedure of filing of return using simple examples

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Contents Level Learning Outcome

3 Chapter III – Credit and Debit And Destruction of Goods

2 LO 6.3.1: Explain the requirement and procedure of issuing debit and credit notes using simple examples

LO 6.3.2: State the procedure for destruction of goods

4 Chapter IV – Apportionment of Input Tax

2 LO 6.4.1: Explain the requirement and procedure of apportionment of input tax using simple examples

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Certificate in Accounting and Finance Financial accounting and reporting II

S

Syllabus objectives and learning outcomes

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

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

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

2 account for transactions relating to tangible and intangible assets including transactions relating to their common financing matters.

3 understand the implication of contingencies; changes in accounting policies and estimates; errors and events occurring after reporting period.

4 account for simple transactions relating to taxation.

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

 

Grid Weighting Final Accounts 20

Consolidation of single subsidiary 15

Accounting for tangible and intangible assets, leases and borrowing cost 30

Provisions and contingencies; changes in accounting policies and estimates; errors and events occurring after reporting period; and taxation

30

Ethics 5 Total 100

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Financial accounting and reporting II

© Emile Woolf International vi The Institute of Chartered Accountants of Pakistan

Contents Level Learning Outcome

Preparation of financial statements – Final accounts

Preparation of financial statements of limited companies in line with the requirement of the Companies Ordinance, 1984 and International Financial Reporting Standards (IAS 1 and 7 and others included in the syllabus) excluding liquidations reconstructions and mergers

2 LO1.1.1: Prepare simple statements of financial position in accordance with the guidance in IAS 1 from data and information provided

LO1.1.2: Identify the laws, regulations, reporting standards and other requirements applicable to statutory financial statements of a limited company

LO1.1.3: Prepare and present the following in accordance with the disclosure requirements of IAS1, Companies ordinance, fourth schedule / fifth schedule.

Statement of financial position Statement of comprehensive income.

Statement of changes in equity

LO1.1.4: Prepare statement of cash flows in accordance with the requirements of IAS 7.

Preparation of financial statements – Consolidation of a single subsidiary

Elimination of investment in subsidiary and parent’s equity

1 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 subsidiary against the parent’s portion of equity of subsidiary and recognize the difference between the two balances as either

goodwill; or

gain from bargain purchase

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Contents Level Learning Outcome

Preparation of financial statements – Consolidation of a single subsidiary (continued)

Identification of non-controlling interest

1 LO1.3.1: Define and describe non- controlling interest in the case of a partially owned subsidiary.

LO1.3.2: 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

Profit and loss from intra-company transactions relating to assets and inventories without tax implications

1 LO1.4.1: Post adjusting entries to eliminate the effects of intergroup sale of inventory and depreciable assets.

Preparation of consolidated statements of financial position

1 LO1.5.1: Prepare and present simple consolidated statements of financial position involving a single subsidiary in accordance with IFRS 10.

Preparation of consolidated statements of comprehensive income

1 LO1.6.1: Prepare and present a simple consolidated statement of comprehensive income involving a single subsidiary in accordance with IFRS 10.

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Financial accounting and reporting II

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Contents Level Learning Outcome

Accounting for tangible and intangible assets, leases and borrowing costs

Recognition, de-recognition, measurement, depreciation / amortization and measurement after recognition of non-current assets (IAS 16 and IAS 38)

2 LO2.1.1: Explain and apply the accounting treatment of property, plant and equipment and intangible assets.

LO2.1.2: Formulate accounting policies in respect of property, plant and equipment and intangible assets

Leases (IAS 17) 2 LO2.2.1: Prepare and present extracts of financial statements in respect of lessee accounting, lessor accounting, and sale and lease back arrangements.

LO2.2.2: Formulate accounting policies in respect of different lease transactions

LO2.2.3: Analyze the effect of different leasing transactions on the presentation of financial statements

Recognition of borrowing costs (IAS 23)

2 LO2.3.1: Describe borrowing cost and qualifying assets using examples.

LO2.3.2: Identify and account for borrowing costs in accordance with international pronouncements.

LO2.3.3: Report borrowing costs in final accounts

LO2.3.4: Formulate accounting policies in respect of borrowing cost

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Contents Level Learning Outcome

Provisions and contingencies; changes in accounting policies and estimates; errors and events occurring after reporting period; and taxation

Provisions, contingent liabilities and contingent assets (IAS-37)

2 LO3.1.1: Define liability, provision, contingent liability and contingent asset

LO3.1.2: Distinguish between provisions, contingent liabilities or contingent assets.

LO3.1.3: Understand and apply the recognition criteria for provisions IFRS.

LO3.1.4: Calculate/ measure provisions

LO3.1.5: Account for changes in provisions

LO3.1.6: Report provisions in final accounts

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

2 LO3.2.1: Define accounting policies, accounting estimates and prior period errors.

LO3.2.2: Understand and analyze using examples, IFRS guidance on accounting policies, change in accounting policies and disclosure.

LO3.2.3: Understand and analyze using examples, IFRS guidance on accounting estimates, changes in accounting estimates and disclosure.

LO3.2.4: Understand and analyze using examples, IFRS guidance on errors, correction of errors and disclosure.

Events occurring after the reporting period (IAS-10)

2 LO3.3.1: Explain using examples events after the reporting period, adjusting events, and non-adjusting events.

LO3.3.2: Understand and analyze using examples IFRS guidance on the recognition, measurement and disclosure of adjusting events and non-adjusting events.

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

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Financial accounting and reporting II

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Contents Level Learning Outcome

Accounting for taxation

Taxation: Current year, prior years and deferred (IAS-12)

Note that the deferred consequences of the following transactions are not examinable:

Business combination (including goodwill

Assets carried at fair value Un-used tax losses and

credits Re-assessment of un-

recognized deferred tax assets

Investments in subsidiaries, branches, associates and interest in joint venture

Items recognized outside profit and loss account

Share based payment

2 LO4.1.1: Define temporary differences and identify temporary differences that cause deferred tax liabilities and deferred tax assets

LO4.1.2: Determine amounts to be recognised in respect of temporary differences

LO4.1.3: Prepare and present deferred tax calculations using the balance sheet approach.

LO4.1.4: Formulate accounting policies in respect of deferred tax

LO4.1.5: Apply disclosure requirements of IAS12 to scenarios of a moderate level of complexity

Ethics

An understanding of ethics relating to preparation and reporting of financial information (Section 320 of Code of Ethics for Chartered Accountants)

2 LO5.1.1: Explain using simple examples the ethical responsibilities of a chartered accountant in preparation and reporting of financial information

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Certificate in Accounting and Finance Cost and management accounting

S

Syllabus objectives and learning outcomes

CERTIFICATE IN ACCOUNTING AND FINANCE

COST AND MANAGEMENT ACCOUNTING

Objective

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

Learning Outcome

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

1 understand the nature of cost accounting and analyse data in terms of cost behaviour

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

3 demonstrate an understanding of different costing system

4 apply the concepts of costing in the decision making process

5 demonstrate a functional knowledge of financial instruments

6 take account of the time value of money in making decisions

7 analyse the financial statements of a company using various ratios

Grid Weighting

Nature of cost accounting and elements of cost 10 Costing Systems and cost behavior 40 Decision making 35 Basics of financial management 15

Total 100

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Cost and management accounting

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Contents Level Learning Outcome

Nature of cost accounting and cost behaviour

Meaning and scope of cost accounting

1 LO1.1.1: Explain the scope of cost accounting and managerial accounting and compare them with financial accounting.

Analysis of fixed, variable and semi variable expenses

2 LO1.2.1: Explain using examples the nature and behaviour of costs.

LO1.2.2: Explain using examples fixed, variable, and semi variable costs.

Direct and indirect cost 2 LO1.3.1: Describe direct and indirect cost.

Cost estimation using high-low points method and linear regression analysis

2 LO1.4.1: Calculate estimated cost by using high-low points method.

LO1.4.2: Apply regression analysis for cost estimation.

Product cost and period cost 2 LO1.5.1: Explain using examples the terms product cost and period cost.

Costs associated with production

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

2 LO2.1.1: Apply inventory valuation methods ( namely, FIFO, weighted average, lower of cost and net realizable value) in simple scenarios

LO2.1.2: Comment on the suitability of inventory valuation under FIFO, weighted average, lower of cost and net realizable value

LO2.1.3: Compare inventory valuation under FIFO, weighted average, lower of cost and net realizable value

LO2.1.4: Calculate NRVs of inventories in a given scenario

Economic Order Quantity 2 LO2.2.1: Describe the economic order quantity (EOQ) and apply the concept in given scenarios.

LO2.2.2: Calculate the EOQ from data provided.

Safety stock 2 LO2.3.1: Describe safety stocks for inventories.

LO2.3.2: Explain the reasons for maintaining safety stock.

LO2.3.3: Calculate the safety stock using data provided.

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Contents Level Learning Outcome

Costs associated with production (continued)

Re-order level 2 LO2.4.1: Explain re-order levels and the objectives of setting re-order levels.

LO2.4.2: Calculate of re-order levels using data provided.

Manufacturing expenses - actual and applied

2 LO2.5.1: Describe manufacturing overheads using examples.

LO2.5.2: Compare manufacturing, administrative and selling costs.

LO2.5.3: Identify manufacturing overheads from data provided.

LO2.5.4: Describe and distinguish actual overhead and absorbed overhead.

LO2.5.5: Calculate absorbed overheads using data provided.

Over or under absorbed overhead

2 LO2.6.1: Compare actual and absorbed overheads from data provided.

LO2.6.2: Analyze over or under absorption in terms of expenditure and volume variances.

LO2.6.3: Account for over or under-absorbed overheads.

Production and service departments

2 LO2.7.1: Identify production and service departments in a manufacturing facility and analyze their related cost.

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

2 LO2.8.1: Allocate direct and indirect costs to production and service departments using information provided.

LO2.8.2: Allocate costs of service departments to production department using data and information provided.

Costing systems

Marginal costing 2 LO3.1.1: Explain the concept of marginal costing and apply on given data.

LO3.1.2: Explain how it helps managerial decisions using examples.

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Costing systems (continued)

Absorption costing 2 LO3.2.1: Describe absorption costing using examples.

LO3.2.2: Compare marginal costing and absorption costing.

Manufacturing cost accounting cycle

2 LO3.3.1: Explain the flow of cost in production process using examples.

LO3.3.2: Prepare accounting entries for flow of cost.

Job order costing 2 LO3.4.1: Describe the job order costing.

LO3.4.2: Calculate cost of job and inventories by application of job order costing.

LO3.4.3: Prepare accounting entries under the job order costing system.

Process costing 2 LO3.5.1: Describe the process costing.

LO3.5.2: Calculate cost of product and inventories by application of process costing.

LO3.5.3: Prepare accounting entries under the process costing system.

Treatment of Joint and By-Products

2 LO3.6.1: Describe joint and by product using examples.

LO3.6.2: Allocate joint production costs using sales value, physical unit, average unit and weighted average methods.

LO3.6.3: Account for by-products using recognition of gross revenue, recognition of net revenue and replacement cost approaches.

Cost of services rendered 2 LO3.7.1: Explain how departmentalization in a service organization help in cost planning and control

LO3.7.2: Calculate cost of services rendered by a service organization.

Standard costing 2 LO3.8.1: Explain standard costing using examples.

LO3.8.2: Perform standard setting for material, labour and factory overhead.

Variance analysis-material, labour and overhead

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Costing systems (continued)

Target costing 2 LO3.10.1: Describe target costing and how target cost is determined.

LO3.10.2: Apply the target costing tools to given scenarios.

Decision making

Opportunity cost 2 LO4.1.1: Describe opportunity cost using examples

Relevant cost 2 LO4.2.1: Describe relevant costs using examples

LO4.2.2: Identify the costs that are relevant to a particular decision in given data.

Breakeven analysis 2 LO4.3.1: Explain the break-even point using examples and margin of safety.

LO4.3.2: Calculate the breakeven point in quantity and amount from information provided.

LO4.3.3: Apply cost volume profit (CVP) analysis and explain its usefulness for management

Make or buy decisions 2 LO4.4.1: Apply marginal and relevant costing concepts to analyze make or buy options

LO4.4.2: Analyze make or buy options in case of capacity constraints.

LO4.4.3: Discuss using examples the importance of qualitative consideration in make or buy decisions.

Pricing for special orders 2 LO4.5.1: Perform incremental cost benefit analysis for a special order

Further processing decisions 2 LO4.6.1: Perform incremental cost benefit analysis for further processing costs

Utilization of spare capacity 2 LO4.7.1: Analyze the impact of spare capacity on management decisions regarding make or buy, special order and further processing

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Financial instruments (basic functions)

Shares, debentures, bonds, futures, options, cap, floor, collar, swaps, forward

LO5.1.1: Describe direct and indirect investment using examples.

LO5.1.2: Describe using examples shares, debentures, bonds, futures, options

LO5.1.3: Describe using simple examples the following characteristics of indirect investments and compare them with direct investments:

Divisibility Liquidity

Holding period

LO5.1.4: Differentiate between investment and speculation using simple examples.

LO5.1.5: Describe using simple examples cap, floor, collar, swaps, forward

Time value of money

Computation of net present value and internal rate of return

LO6.1.1: Explain the time value of money

LO6.1.2: Calculate net present value and internal rate of return of given cash flows

Financial analysis

Compute various ratios from data and information provided.

1 LO7.1.1: 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

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natsikaP fo stnatnuoccA deretrahC fo etutitsnI ehT v lanoitanretnI flooW elimE ©

Certificate in Accounting and Finance Audit and Assurance

S

Syllabus objectiveand learning outcomes

CERTIFICATE IN ACCOUNTING AND FINANCE

AUDIT AND ASSURANCE

Objective

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

Learning Outcomes

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

1 Demonstrate knowledge of general concepts governing an audit

2Demonstrate working knowledge in respect of performance of simple audit procedures and understand the audit report requirement under the Companies Ordinance, 1984

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

4 Comprehend nature of engagements of review of interim financial statements

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

6Respond on audit matters in the light of fundamental principles given in the Code of Ethics

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Grid Weighting

General concepts and principles of audit 20

Performance of audit and reporting 30

Specific areas 20

Computer programming and IT controls 15

Professional Ethics 15

Total 100

 

Syllabus Ref

Contents Level Learning Outcome

A General concepts and principles of audit

1 Introduction to International Federation of Accountants

1 LO1.1.1: Briefly describe the organizational 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 principal governing an audit (ISA 200)

2 LO1.3.1: Describe the overall objectives of the independent auditor

LO1.3.2: Explain the nature and scope of an audit designed to enable the independent auditor to meet those objectives

LO1.3.3: Outline the requirements establishing the general responsibilities of the independent auditor applicable in all audits

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 using simple examples

5 Auditors responsibility to consider fraud (ISA 240)

1 LO1.5.1: Distinguish between the terms ‘error’, ‘fraud’ and misstatement’

LO1.5.2: Compare the respective responsibilities of management and auditors for fraud

LO1.5.3: Describe the matters to be considered and procedures to be

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carried out to assist the auditor in identifying, assessing and detecting the risks of material misstatement due to fraud

6 Legal consideration relating to appointment and removal of auditors (sections 252 to 260 of the Companies Ordinance 1984)

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

7 Terms of Audit engagements (ISA 210)

2 LO1.7.1: Describe the preconditions that are within the control of the entity and upon which it is necessary for the auditor and the entity’s management to agreeLO1.7.2: 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

B Performance of audit and reporting 1 Planning an audit (ISA 300) 2 LO2.1.1: Identify the need for planning

an audit LO2.1.2: State who should be involved in planning and what preliminary engagement activities are necessary LO2.1.3: Discuss overall planning and the audit plan for a recurring audit LO2.1.4: Outline the additional considerations that should be identified while planning the initial audit

2 Assessment of audit risks (ISA 315)

2 LO2.2.1: Outline the key steps involved in identifying and assessing the risks of material misstatement in the financial statements, through understanding the entity and its environment LO2.2.2: Briefly state the components of internal control LO2.2.3: Differentiate between control activities relevant and irrelevant to audit

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in a well explained scenario

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

4 Audit evidence (ISA 500) 2 LO2.4.1: Explain, using examples, sufficient appropriate audit evidence

LO2.4.2: State audit procedures to obtain audit evidence

LO2.4.3: Explain what information can be used as audit evidence using simple examples

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: Explain what matters are considered by auditors in respect of sample design, size and selection of items for testing using simple examples

6 Substantive procedures (ISA 330)

2 LO2.6.1: Explain the nature, extent and timing of substantive procedures using simple examples

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 how auditors evaluate the operating effectiveness of controls using simple examples

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

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: Understand the nature of assembly of the final audit file

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10 Understanding of audit opinion and form of audit report under the Companies Ordinance 1984

2 LO2.10.1: Briefly state the contents of the auditor’s report LO2.10.2: State the penalty for non-compliance with provisions related to the audit report

C Specific areas 1 External confirmations (ISA

505)2 LO3.1.1: Describe the significance of

using external confirmation procedures for obtaining relevant and reliable audit evidenceLO3.1.2: Describe the steps involved in external confirmation procedures LO3.1.3: Differentiate between the positive confirmation request and negative confirmation request

2 Subsequent events (ISA 560)

2 LO3.2.1: Explain the meaning and purpose of a subsequent events review using simple examples

3 Written representation (ISA 580)

2 LO3.3.1: Discuss the nature of written representations as audit evidence LO3.3.2: Discuss the circumstances where written representations are necessary and the matters on which representations are commonly obtained

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: Briefly describe the audit procedures and related activities to obtain information relevant to identifying the risks of material misstatement associated with related party relationships and transactions

5 Using the work of component auditors, internal audits and auditor’s experts (ISA 600, ISA 610 and ISA 620)

2 LO3.5.1: Explain the responsibility of the group engagement partner in respect of acceptance and continuance, overall audit strategy, understanding the group, its component and their

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environment, their auditor and materiality

LO3.5.2: Explain the relationship between the external auditor with internal auditors and auditor’s experts

LO3.5.3: Discuss how external auditors determine whether and to what extent the use the work of internal audit

LO3.5.4: Discuss using examples how external auditors uses the specific work of internal audit

LO3.5.5: 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 Review of interim financial statements by the independent auditor (ISRE 2410)

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

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

LO3.6.3: Describe the procedures generally adopted by the practitioner to obtain evidence in review engagements

D Computer programming and IT controls

1 Benefits and limitations of flowcharts

1 LO4.1.1: State the benefits and limitation 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: Describe the macro, mini and micro level details of flowcharts

3 Drawing flowcharts for specific situations/programs

1 LO4.3.1: Draw different types of flowcharts for given situations

4 Control design 1 LO4.4.1: Describe appropriate controls while designing the system using simple examples

5 General controls 1 LO4.5.1: Describe general controls and

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classify them into environment, development, maintenance and operational controls using simple examples

6 Preventative, detective and corrective controls

1 LO4.6.1: Describe preventative, detective and corrective controls using simple examples

7 Audit trails 1 LO4.7.1: Describe the concept of an audit trail in a computerized environment using simple examples

8 Logical access controls 1 LO4.8.1: Describe logical access controls for a given situation/system

9 Physical access controls 1 LO4.9.1: Describe physical access controls for a given situation/system

10 Program security techniques 1 LO4.10.1: Describe checks/controls into the software system to protect data from corruption and unauthorized access

11 Data security and public networks

1 LO4.11.1: State controls over data transmission LO4.11.2: Describe data encryption techniques for transmission of data over public networks LO4.11.3: Describe communications protocolLO4.11.4: Understand the Open System Interconnection (OSI) model

12 Monitoring and surveillance techniques

1 LO4.12.1: Describe the usefulness of system logs for analyzing 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 behaviourLO5.1.2: Apply the conceptual framework to identify, evaluate and address threats to compliance with fundamental principles

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LO5.1.3: Understand the threats and circumstances that cause threats of self-interest, self-review, advocacy, familiarity, and intimidation

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

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

2 LO5.2.1: 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

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