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F i n a n c i a l
CPA F u n d s
P r a c t i c i n g
C e r t i f i c a t e
M a n a g e r i a l
C o n t i n u o u s
P r o f e s s i o n a l
D e v e l o p m e n t
C o s t
E X P L O R E
F o r e n s i c
T a x
Curriculum
The Association of International Certified Public Accountants
WWW.CPAPRO.EU | WWW.CPAPRO.PK CPAPRO
CPA Professional
Programme
18 ABBEY HOUSE, STOKE ROAD, SLOUGH, BERKSHIRE, SL2 5AG, UK. P: (44) 77-8696-1247 | X: (44) 17-5372-2180 | F: (44) 17-5372-2181 | PK (9251) 252-1-251 / 252-1-252 | E: [email protected] / [email protected]
PROGRAMME ASSESSMENT & EVALUATION DEPARTMENT
FACILITATED BY: CURRICULUM REVIEW COMMITTEE (CRC)
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PROGRAMME ASSESSMENT & EVALUATION DEPARTMENT
FACILITATED BY: CURRICULUM REVIEW COMMITTEE
About CPA New Curriculum 1: CPA Curriculum Experts Panel Report 3 2: The Course Approach 5 3: Revised Course Subjects and Credit Hours Detail 8 4: Teaching Philosophy & Coding 9 5: Methodology 11 6: Programme Detail & Features 12 7: Compatibility with other Accounting Professional Bodies 13 8: Admission Criteria & Routes 14
About CPA (Old Scheme)
What We Offer? 15
Programmed Arrangement 16
Programme Detail & Credit Hours 17
Guidelines To: 18
Become A Student
Become A CPA
Become a Practising Professional (Practicing Certificate)
Distance Learning
About Our Qualified CPAs 20 CPA Units Detail
01: Financial Accounting 22 02: Business Law 30 03: Economics & Business Environment 37 04: Business Mathematics & Statistics 42 05: Income Tax 47 06: Cost & Managerial Accounting 54 07: Business Communication & Report Writing 61 08: Audit & Assurance 64 09: Financial & Corporate Reporting 73 10: Corporate Law 84 11: Financial Strategy 90 12: Corporate Governance 97 13: Advanced Taxation 105 14: IT Audit & Control 110 15: Advanced Accounting 116 16: Advanced Audit 123 17: Fraud Audit & Forensic Accounting 130 18: Internal Audit Role in Risk & Control 138 19: Advanced Performance Management 145
Advanced Case Studies, Emerging Trends, Articles
Guidelines 154
Structure 155
Flow of Contents 157
Content of Key Chapters 159
Citation Style 163
The Reference List 166
Numbering & Captions 170
Final Remarks 173
CONTENTS
03 05 08 09 11 12 13 14
15 16 17 18
20
22 30 37 42 47 54 61 64 73 84 90 97
105 110 116 123 130 138 145
154 155 157 159 163 166 170 173
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CPA Curriculum Experts Panel Report
Overview:
In January 2013, The Association of International Certified Public Accountants Aca-
demic Council suggested The Framework for International CPAs Curriculum which
advised the association CPA Curriculum Review.
Since then, the association Board of Directors has been considering the council’s rec-
ommendations, informed by the consultation with key stakeholders, including subject
experts and regional representatives of the Public Accounting & Finance profession
from UK, Pakistan, Malaysia and UAE.
To design a truly international and comparable curriculum, the course structures of
the most prominent accounting bodies of the world were considered e.g. United King-
dom, Ireland, Australia, USA, Malaysia and Pakistan: -
ACA (ICAEW) The Institute of Chartered Accountants, UK
ACCA (UK) The Association of Chartered Certified Accountants, UK
CMA (CIMA) Chartered Institute of Management Accountants, UK
CPA (Ireland) The Institute of Certified Public Accountants in Ireland
MICPA (Malaysia) Malaysian Institute of Certified Public Accountants
CMA (ICMAP) Institute of Cost and Management Accounts of Pakistan
CA (ICAP) The Institute of Chartered Accounts of Pakistan
CPA (ICPAP) The Institute of Certified Public Accountants of Pakistan
CPA (Australia) Australia
CPA (AICPA) American Institute of Certified Public Accountants, USA
CMA (IMA) The Institute of Management Accountants, USA
CFA (CFAI) CFA Institute, USA
The experts’ notes to the course structures of above mentioned accounting profession-
al bodies are given in excel file (CPA complete structure), which can be downloaded
and viewed separately.
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The New CPA Curriculum Bring To Higher Standards of Learning
The CPA New Curriculum is more demanding and comparable than the existing sylla-
bus. It aligns The Association of International Certified Public Accountants with
IFAC’s standards and other CPA & professional bodies of the world, as shown from the
following table:
By raising standards in the following pillars, the revised curriculum makes it unique,
differentiate and global in nature & course structure to well equip the qualified CPAs
to do more advanced work and excel globally in Public Accounting & Finance field:
Taxation and Laws pillar
Investment and Reporting pillar
Enterprise pillar
Finance pillar
Performance pillar
Audit pillar
For further detail or record your comments on revised curriculum, please write to: [email protected] Attn: Mr. Ahmad Noor MBA (NUST), BA, DCA, CPA, CFA Controller Examination Army Public College of Management Sciences (APCOMS)
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The Course Approach
Some professional bodies are more focusing on financial accounting and finance field
while the other’s focal point is towards management accounting and performance pil-
lar. Whereas some more concentrate on taxation and auditing things, and some feel
that decision making and financial investment is much more important that’s why
they are producing financial accountants, management accounts, public accountants,
financial analysts and taxations experts etc. Therefore, we tried our level best that the
student of our CPA Programme should have the diverse knowledge of all major areas
and the employer will have more pleasure to hire our qualified accountants.
In CPA New Curriculum the approach is based on cognitive and constructivist learn-
ing process. The detail is given in later parts. However, CPA Curriculum introduced
knowledge management or our valued members through two sub-approaches:
In Knowledge pillars or Vertical approach, their performance is monitored
through important knowledge areas in which they will have to be excelling
in real marketplace.
The Foundation or Level based learning or Horizontal approach, which can
be termed as Traditional approach, takes the trainee students in a natural
flow from basics and operational level learning to managerial and strategic
level skills development to achieve required competency level.
The members are required to pass 5 stages / awards to qualify the superior designa-
tion of CPA:
Foundation in Public Accounting
Certificate in Public Accounting
Diploma in Public Accounting
Advanced Diploma in Public Accounting
Competency Level Test
Award of Certified Public Accountant
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Contd: The Course Approach
We have designed the unique educational product having six following pillars. It is our
programme differentiation and gives our qualified CPAs a comparative advantage in
the real marketplace, (complete course lists of Old and New Syllabus is given in the
following pages)
Taxation and Laws pillar
Investment and Reporting pillar
Enterprise pillar
Finance pillar
Performance pillar
Audit pillar
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Contd: The Course Approach
The course is also divided into five levels: -
Foundation level
Operational level
Management level
Strategic level
Competence level
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Revised Course Subjects and Credit Hours Detail
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Teaching Philosophy & Coding
To equip our qualified CPAs with creative problem solving skills and to be more pro-
ductive in novelty business situations, we introduced two different approaches in re-
vised CPA programme, i.e., Vertical approach and Horizontal approach.
While working with cognitive and constructivist learning, we empower our members
with dynamic and innovative theories. To be more flexible with their tough study
schedule, we support them with different options in reaching Competency level, i.e., to
earn a quality CPA designation.
Through course vertical and horizontal course coding, they better judge their weak
learning areas through Knowledge pillars and Foundation bases.
In Knowledge pillars or Vertical approach, their performance is monitored through im-
portant knowledge areas in which they will have to be excelling in real marketplace.
The following codes are assigned to aid or before deciding the entry level after evaluat-
ing their prior learning:
Taxation and Laws pillar … ”TL” 1, 2, 3 …
Investment and Reporting pillar … “IR” 1, 2, 3 …
Enterprise pillar … ”E” 1, 2, 3 …
Finance pillar … ”F” 1, 2, 3 …
Performance pillar … ”P” 1, 2, 3 …
Audit pillar … ”A” 1, 2, 3 …
Competency pillar … A, B, C
(This approach is useful for working executives or students who have prior knowledge
in Accounting & Finance field or who have learnt basics in prerequisite courses)
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Contd: Teaching Philosophy & Coding
The Foundation or Level based learning or Horizontal approach, which can be termed
as Traditional approach, takes the trainee students in a natural flow from basics and
operational level learning to managerial and strategic level skills development to
achieve required competency level. The following codes are assigned to assess the stu-
dents’ performance and to design the teaching material:
Foundation level … “F” 1, 2, 3 …
Operational level … “C” 1, 2, 3 …
Management level … “D” 1, 2, 3 …
Strategic level … “P” 1, 2, 3 …
Competence level … A, B, C
(This approach is adopted for fresh graduates / entrants who have less or no prior
knowledge in Accounting & Finance field or who have not learnt basics in prerequi-
sites courses)
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Methodology
The CPA course contents designed after specific and phenomenal reviews, the pro-
gramme philosophy and teaching approach used in this program differs from other
professional bodies with the similar curriculum. It follows the following methodology:
An extensive foundation based learning coupled with knowledge pillars to
cover the all possible dimensions of accountancy field. In this stage the
student is expected to learn the multi-dimensional boundaries of
knowledge. The student’s entry level is carefully evaluated under standard
APL and CTF procedures.
An explicit and specific strategy level under foundation based learning (and
in some part of competency level) to cover the market-required creative
problem solving skills. The knowledge base is organized through industry
research, analysis and development. In this stage the student is required
to learn industry practice, tools, techniques and alternative course of ac-
tions to use the learnt knowledge in preceding levels.
In applied stage of competency level the student is required to submit a
Publishable Article followed by a Personal Presentation / Online Inter-
view to describe new original research in Accounting & Finance industry.
At this level the student is expected to have mastered in required
knowledge areas, tools, techniques, and desired alternative course of ac-
tions in a real-life practical situation. This level introduced first time in
Public Accounting & Finance field to promote R&D and develop real-life
case-studies to teach the following learners.
A CPD/CPE (Continuous Professional Development / Continuous Profes-
sional Education) requirement to be eligible for a COP (Certificate of Prac-
tice) and to ensure the member’s learnt Knowledge, Skill and Application
competencies. Through this learning process, professional ethics aimed at
inculcating in the student an ethical approach in his/her professional in-
teractions and a sense of personal, corporate and social responsibilities.
The qualified members’ professional conduct is monitored through various
direct and indirect approaches. To maintain their current knowledge and
provide them with up-to-date and new courses/trainings, the association’s
CRC continuously working to design & conduct Seminars, Trainings, Work-
shops, and Short Courses like Forensic Accounting & Auditing & Emerg-
ing Trends in Islamic Finance.
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Programme Detail & Features
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Compatibility with other Accounting Professional Bodies
In the era of globalization, we cannot operate in isolated way so that it is necessary
that we must be familiar with the activities of our competitors and the market demand
and their expectations. Other accounting professional bodies are preparing account-
ant and we are too then what is the difference? Yes, we are offering enterprise, fi-
nance, performance, audit, taxation, laws, reporting, and investment pillars simulta-
neously and yet we are different by offering other value added courses which give us
competitive advantage. The compatibility map is drawn as follows:
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Admission Criteria & Routes
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About CPA (Old Scheme)
What we offer?
The Association offers internationally recognized certificates / courses in accountancy
and audit field. The certificates offered by the association are well reputed, extensive
skills developers and produce experts in accountancy and audit field.
Certification Types:
PAC (Public Accounting Certificate)
PAC is designed for the early birds in this field of accountancy. This certifi-
cate gives them confidence and boost their level of professionalism in this
field of accountancy and secure their future.
PPA (Professional Public Accountant)
PPA is designed for middle experts / professionals who want to polish their
level of expertise in this field of accountancy. This certificate minimizes
their route to become a CPA.
CPA (Certificate Public Accountant)
CPA is well renowned name for the professional accountant. CPA means an
expert in accounts / finance / audit / taxation / law and other business
fields. They play a vital role in any organization’s strategic success factors.
CPA is designed for the final touch professionals after PAC / PPA / experi-
ence.
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Contd: About CPA (Old Scheme)
Program Arrangement
With a focus on both domestic and global business issues, the CPA Program provides
the technical expertise today, to create the strategic business leaders of tomorrow. The
CPA Program is now more accessible to more people and offers a truly global account-
ing designation for strategic thinkers.
CPA responds strongly to employer demands by providing you with skills that deliver
value. Rather than simply providing CPAs with a technical focus, the CPA Program
equips you with an understanding of the dynamic issues facing organizations in a
global marketplace.
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Contd: About CPA (Old Scheme)
Program Detail & Credit Hours
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Contd: About CPA (Old Scheme)
To become a Student
To become a student-member of the association, you will have to match the following
criteria:
CPA (PAC Route)
Completed 12 years education or possess accredited equivalence.
Possess 05 years professional experience, before/during/after qualification
2. CPA (PPA Route):
Completed 14 years education or accredited equivalence
Possess 03 years professional experience, before/during/after qualification
2. CPA (Professional Route):
Completed 16 (or 14) years education or equivalent
Have two 02 years professional experience, before/during/after qualifica-
tion
Hold a professional designation (qualified or part-qualified), e.g., CA, CMA,
CPA, CCA, CIA, CGA from a recognized professional body
To become a CPA
A student who successfully completes the following is awarded the CPA® designation:
Pass the FOLLOWING levels / subjects or have claimed credit under Ac-
credited Prior Learning (APL) or Credit Transfer Facility (CTF) …
PAC Route: 3 levels / 9 subjects after passing 4 levels / 20 subjects
of PAC award
PPA Route: 2 levels / 6 subjects after passing 4 levels / 18 subjects
of PPA award
CPA Professional Route: 6 levels / 20 subjects
2. Satisfy the experience requirement, and
3. Adhere to the code of ethics and standard professional conduct.
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Contd: About CPA (Old Scheme)
To become a Practicing Professional (Practicing Certificate)
After receiving the CPA designation, a member can apply for Practicing Certificate up-
on fulfillment of the following conditions:
Application on prescribed form to mention the potential working area of
professional interest,
Maintain the CPA designation in good standings,
Satisfy the 03 years CPD (Continuous Professional Development) require-
ment, and
Personal Indemnity Insurance (PII), if any, required under applied working
area.
Flexible & Distance Learning
The Association of International CPAs allows maximum flexibility to participants to
pace out and manage their studies even with their full-time professional routines.
Distance learning
Self-Study Program
Coaching classes available
Customized Reference Books
Syllabus Guides to aid self-study
Mentoring, counseling and support material available
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About Our Qualified CPAs
Our qualified Certified Public Accountants (CPA) are innovative and strategic thinkers
who are well respected for their integrity and commitment to excellence. They are ded-
icated to each client and work to satisfy their business and financial needs. Our Certi-
fied Public Accountants (CPAs) act as advisers to individuals, businesses, financial
institutions, nonprofit organizations and government agencies on a wide range of fi-
nancial matters. Today, many individuals and businesses turn to CPAs for help with
tax preparation, personal financial planning, auditing services, and advice on develop-
ing effective accounting systems.
Our qualified CPAs are no longer just number crunchers and tax preparers. They are
business and financial strategists who help chart the paths of businesses and individ-
uals. Individuals turn to their CPAs for tax and financial planning services, invest-
ment advice, estate planning, and more.
Businesses are tapping our CPAs to not only manage finances and taxes, but also to
determine profitable new product lines, help diversify investments, and provide a vari-
ety of other consulting and business services.
Our members have to fulfill the following requirements to use the CPA designation:
Complete a 14 years university degree or a duly recognized postgraduate
academic qualification
Complete the CPA Professional 150 Credit Hours’ Programme of five Learn-
ing Levels or five Knowledge Pillars, OR have completed under old-scheme
the 120+ Credit Hours of six levels study or 20 subjects PLUS article com-
pletion in final level
Complete three years of professional experience in finance, accounting or
business related field
Ensure the competency level set by the association
Comply to a strict code of ethics and professional conduct
Undergo CPD activities duly approved by the association each year
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CPA Professional Programme Syllabus
Financial Accounting
Level – One: Foundation – I Code: PF-101
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Aim
The aim of this subject is to
ensure that students
understand the role, function
and basic principles of
financial accounting and
master the rules of double-
entry bookkeeping. They also
develop the ability to prepare,
analyze and report on
financial statements for basic
reporting entities in
accordance with current
generally accepted
accounting principles (GAAP)
and International Financial
Reporting Standards (IFRSs).
To develop knowledge and
understanding of the
underlying principles and
concepts relating to financial
accounting and technical
proficiency in the use of
double-entry accounting
techniques including the
preparation of basic financial
statements for single entities
and simple groups. The syllabus
also introduces basic
techniques of interpretation of
financial statements.
Learning Objectives:
On successful completion of this subject
students should be able to:
A). Identify the users of financial accounts and
explain their requirements.
B). Discuss and explain accountancy concepts
and principles.
C). Apply the principles and procedures of
double entry bookkeeping.
D). Prepare and present financial statements for
sole traders, limited companies, partnerships
and other organizations in accordance with
current standards.
E). Discuss, explain and apply the accounting
treatment of non-current assets, current
assets, events after the reporting period and
F). Prepare a trial balance (including identifying
and correcting error
G). Prepare basic financial statements for
incorporated and unincorporated entities.
H). Prepare simple consolidated financial
statements Interpretation of financial
statements
Financial Accounting
Level – One: Foundation – I Code: PF-101
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Section 01
Accounting Framework
Terminology, concepts, conventions.
The purpose of accounting information and its
communication.
The users of financial accounts, statements and their
requirements Nature, principles and scope of
financial accounting and its limitations.
The accounting profession and the role of the
accountant.
The ethics and independence of the accounting
profession.
The regulatory environment.
The nature, role and significance of IASs, IFRSs and
GAAP
Section 02
The scope and purpose of,
financial statements
for external reporting
Define financial reporting – recording, analyzing and
summarizing financial data
Identify and define types of business entity – sole
trader, partnership, limited liability company
Recognize the legal differences between a sole
trader, partnership and a limited liability company.
Identify the advantages and disadvantages of
operating as a limited liability company, sole trader or
partnership
Understand the nature, principles and scope of
financial reporting
Identify the users of financial statements and state
and differentiate between their information needs
Section 03
The main elements of financial
reports & Regulatory
framework
Understand and identify the purpose of each of the
main financial statements
Define and identify assets, liabilities, equity, revenue
and expenses.[
Understand the role of the regulatory system
including the roles of the IFRS Foundation (IFRSF), the
International Accounting Standards Board (IASB), the
IFRS Advisory Council (IFRS AC) and the IFRS
Interpretations Committee (IFRS IC)
Understand the role of International Financial
Reporting Standards
Explain what is meant by governance specifically in
the context of the preparation of financial statements
Describe the duties and responsibilities of directors
and other parties covering the preparation of the
financial statements
Financial Accounting
Level – One: Foundation – I Code: PF-101
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Section 04
The qualitative characteristics
of financial information
Define, understand and apply accounting concepts
and qualitative characteristics:
i) Fair presentation
ii) Going concern
iii) Accruals
iv) Consistency
v) Materiality
vi) Relevance
vii) Reliability
viii)Faithful representation
ix) Substance over form
x) Neutrality
xi) Prudence
xii) Completeness
xiii) Comparability
xiv) Understandability
xv) Business entity concept
Understand the balance between qualitative
characteristics
Section 05
Book keeping
Principles and procedures.
Original entry,
double-entry,
supporting records,
Bank accounts and reconciliation statements.
Cash accounts,
control accounts,
trial balance,
adjusting journal entries
Allocation of expenditure and income between
capital and revenue, and the treatment of reserves,
provisions, accrued expenditure and payments in
advance.
Double-entry book-keeping principles including
the maintenance of accounting records
Outline the contents and purpose of different
types of business documentation, including:
quotation, sales order, purchase order, goods
received note, goods dispatched note, invoice,
statement, credit note, debit note, remittance
advice, receipt
Understand and apply the concept of double entry
Financial Accounting
Level – One: Foundation – I Code: PF-101
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accounting and the duality concept.
Understand and apply the accounting equation.
Understand how the accounting system contributes
to providing useful accounting information and
complies with organizational policies and deadlines
Identify the main types of business transactions e.g.
sales, purchases, payments, receipts.
Identify the main types of ledger accounts and books
of prime entry, and understand their nature and
function
Understand and illustrate the uses of journals and the
posting of journal entries into ledger accounts
Identify correct journals from given narrative
Illustrate how to balance and close a ledger
account.
Section 06
Recording transaction and
events
Sales and purchases
Cash
Inventory
Tangible non-current assets
Depreciation
Intangible non-current assets and amortization
Receivables and payables
Provisions and contingencies
Capital structure and finance costs
Understand the capital structure of a limited
liability company including:
i) Ordinary shares
ii) Preference shares (redeemable and
irredeemable)
iii) Loan notes.
Record movements in the share capital and
share premium accounts
Identify and record the other reserves which may
appear in the company statement of financial
position.
Define a bonus (capitalization) issue and its
advantages and disadvantages
Define a rights issue and its advantages and
disadvantages
Record and show the effects of a bonus
(capitalization) issue in the statement of financial
position
Record and show the effects of a rights issue in
the statement of financial position
Financial Accounting
Level – One: Foundation – I Code: PF-101
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Record dividends in ledger accounts and the
financial statements
Calculate and record finance costs in ledger
accounts and the financial statements
Identify the components of the statement of changes
in equity.
Section 07
Trial Balance
Trial balance
a) Identify the purpose of a trial balance.
b) Extract ledger balances into a trial balance.
c) Prepare extracts of an opening trial balance.
d) Identify and understand the limitations of a trial
balance.
Correction of errors
a) Identify the types of error which may occur in
bookkeeping systems.
b) Identify errors which would be highlighted by the
extraction of a trial balance.
c) Prepare journal entries to correct errors.
d) Calculate and understand the impact of errors on
the income statement, statement of comprehensive
income and statement of financial position
Control accounts and reconciliations
a) Understand the purpose of control accounts for
accounts receivable and accounts payable.
b) Understand how control accounts relate to the
double-entry system.
c) Prepare ledger control accounts from given
information.
d) Perform control account reconciliations for
accounts receivable and accounts payable.
e) Identify errors which would be highlighted by
performing control account reconciliation.
f) Identify and correct errors in control accounts and
ledger accounts.
Section 08
Bank reconciliations
Understand the purpose of bank reconciliations.
Identify the main reasons for differences between the
cash book and the bank statement.
Correct cash book errors and/or omissions.
Prepare bank reconciliation statements.
Derive bank statement and cash book balances from
given information.
Identify the bank balance to be reported in the final
accounts
Financial Accounting
Level – One: Foundation – I Code: PF-101
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Section 09
Suspense accounts
Understand the purpose of a suspense account
Identify errors leading to the creation of a suspense
account
Record entries in a suspense account.
Make journal entries to clear a suspense account
Section 10
Basic Financial Statements
Preparation
a) Recognize how the accounting equation,
accounting treatments as stipulated within sections D,
E and examinable documents and business entity
convention underlie the statement of financial
position
b) Understand the nature of reserves.
c) Identify and report reserves in a company
statement of financial position
d) Prepare a statement of financial position or
extracts as applicable from given information using
accounting treatments as stipulated within sections D,
E and examinable documents.
e) Understand why the heading retained earnings
appears in a company statement of financial position
a) Prepare an income statement and statement of
comprehensive income or extracts as applicable
from given information using accounting treatments
as stipulated within section D, E and examinable
documents.
b) Understand how accounting concepts apply to
revenue and expenses.
c) Calculate revenue, cost of sales, gross profit, profit
for the year, and total comprehensive income from
given information
d) Disclose items of income and expenditure in the
income statement.
e) Record income tax in the income statement of a
company including the under and overprovision of
tax in the prior year.
f) Understand the interrelationship between the
statement of financial position, income statement
and statement of comprehensive income.
g) Identify items requiring separate disclosure on the
face of the income statement
a) Explain the purpose of disclosure notes
b) Draft the following disclosure notes
i) Non current assets including tangible and in
tangible assets
ii) Provisions
iii) Events after the reporting period
Financial Accounting
Level – One: Foundation – I Code: PF-101
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iv) Inventory
Events after the reporting period
a) Define an event after the reporting period in
accordance with International Financial Reporting
Standards.
b) Classify events as adjusting or non-adjusting.[S]
c) Distinguish between how adjusting and non-
adjusting events are reported in the financial
statements
Statements of cash flows
a) Differentiate between profit and cash flow.
b) Understand the need for management to control
cash flow.
c) Recognize the benefits and drawbacks to users of
the financial statements of a statement of cash flows.
d) Classify the effect of transactions on cash flows.
e) Calculate the figures needed for the statement of
cash flows including:
i) Cash flows from operating activities
ii) Cash flows from investing activities
iii) Cash flows from financing activities
Calculate the cash flow from operating activities
using the indirect and direct method
Incomplete records
a) Understand and apply techniques used in
incomplete record situations:
i) Use of accounting equation
ii) Use of ledger accounts to calculate missing figures
iii) Use of cash and/or bank summaries
iv) Use of profit percentages to calculate missing
figures.
Section 11
Interpretation of Financial
Statements
Describe how the interpretation and analysis of
financial statements is used in a business
environment.
Explain the purpose of interpretation of ratios
Calculate key accounting ratios
i) Profitability
ii) Liquidity
iii) Efficiency
iv) Position
Explain the interrelationships between ratios[
Calculate and interpret the relationship between the
elements of the financial statements with regard to
profitability, liquidity efficient use of resources and
financial position.
Financial Accounting
Level – One: Foundation – I Code: PF-101
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Draw valid conclusions from the information
contained within the financial statements and
present these to the appropriate user of the financial
statements.
Section 12
Preparation of Financial
Statements for different forms
of Business
Limited companies in a form suitable for publication
or internal use
A). Unlimited companies
B). Sole Traders- including incomplete record
situations.
C). Partnerships
D). Companies
Allotments, issue of shares.
Preparation of limited company accounts to
include statements of comprehensive
income and statements of financial position
in accordance with standard international
accounting practice.
Preparation of accounts in relation to:
– Clubs or Societies
– Branch Accounts
Accounting for Joint ventures: Accounting treatment
when separate books of accounts are maintained,
and when separate books are not maintained;
Memorandum recording methods.
Nature and operation of the consignment;
accounting for the completed and incomplete
consignments including losses (normal and abnormal
both) and stock valuations
Recommended Study Text
Wood F and Sangster A / Business Accounting
Vols 1 and 2 12th ed / Pearson 2012 / ISBN
0273759280
Connolly / International Financial Accounting
and Reporting 3rd ed. / CAI 2011 / ISBN
9781907214646
An Introduction to Accountancy by
.N.Maheshwari/S.K Maheshwari
Accounting. The Basis for Business Decisions by Meigs
and Meigs
Business Law
Level – One: Foundation – I Code: PF-102
30
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Aim
The aim of this subject is to
enable students to become
familiar with the principles and
practice of business law and
case law relating to the role
and work of an accountant.
They will also explore the
ethical standards necessary for
a career in professional
accountancy and develop
the ability to identify when the
engagement of a legal expert
is required.
To develop knowledge and
skills in the understanding of
the general legal framework,
and of specific legal areas
relating to business,
recognizing the need to seek
further specialist legal advice
where necessary.
Learning Objectives:
On successful completion of this subject
students should be able to:
A). Explain the principles and applications of the
law of torts and the sale of goods and supply
of services legislation.
B). Identify and describe aspects of law relating
to negotiable instruments.
C). Demonstrate the application of elements of
company and partnership law in relation to
how business entities and partnerships are
formed and structured, and describe their
commercial relationships.
D). Identify the essential elements of the legal
system, including the main sources of law
E). Recognize and apply the appropriate legal
rules relating to the law of obligations
F). Explain and apply the law relating to
employment relationships
G). Distinguish between alternative forms and
constitutions of business organizations
H). Recognize and compare types of capital
and the financing of companies
I). Describe and explain how companies are
managed, administered and regulated
J). Recognize the legal implications relating to
companies in difficulty or in crisis
Business Law
Level – One: Foundation – I Code: PF-102
31
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Section 01
Elements of the legal system
The sources of law; common law and equity, judicial
precedent and case law, statute law, the
Constitution
Court structure
a) Define law and distinguish types of law.
b) Explain the structure and operation of the courts
and tribunals systems.
Explain what is meant by case law and precedent
within the context of the hierarchy of the courts.
b) Explain legislation and evaluate delegated
legislation.
c) Illustrate the rules and presumptions used by the
courts in interpreting statutes.
Identify the concept of human rights as expressed in
the Human Rights Act 1998
b) Explain the impact of human rights law on statutory
interpretation.
c) Explain the impact of human rights law on the
common law.
The legal system in operation – doctrine of separation
of powers, basic institutions of the State, the
requirements of natural and Constitutional justice,
structure of the courts, civil and criminal divisions,
solicitor/barrister relationship, functions of the
Attorney General and the Director of Public
Prosecutions, interpretation of statutes
Section 02
Law of Obligations
a) Analyze the nature of a simple contract.
b) Explain the meaning of offer and distinguish it from
invitations to treat.
c) Explain the meaning and consequence of
acceptance.
d) Explain the need for consideration.
e) Analyze the doctrine of privity.
a) Distinguish terms from mere representations.
b) Define the various contractual terms.
c) Explain the effect of exclusion clauses and
evaluate their control
Breach of contract and remedies
a) Explain the meaning and effect of breach of
contract.
b) Explain the rules relating to the award of damages.
c) Analyze the equitable remedies for breach of
contract.
a) Explain the meaning of tort.
b) Identify examples of torts including ‘passing off’
and negligence.
Business Law
Level – One: Foundation – I Code: PF-102
32
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c) Explain the duty of care and its breach.
d) Explain the meaning of causality and remoteness
of damage.
e) Discuss defences to actions in negligence
Types of tort – defamation, nuisance, negligence,
professional negligence, conversion, passing off, data
protection legislation, product liability and the
defective products legislation. Remedies
Explain and analyze the duty of care of accountants
and auditors
Section 03
Employment Law
a) Distinguish between employees and the self-
employed.
b) Explain the nature of the contract of employment
and give examples of the main duties placed on the
parties to such a contract
a) Distinguish between wrongful and unfair dismissal
including constructive dismissal.
b) Explain what is meant by redundancy.
c) Discuss the remedies available to those who have
been subject to unfair dismissal or redundancy.
Section 04
Contract
Formation of a contract –
Agreement, including offer (versus invitation to treat)
and acceptance, intention to create legal relations,
consideration, evidentiary requirements, third party
rights, including privity of contract and assignment.
Content of a contract – what is a term, distinction
between terms and mere representations, sources of
terms, the parol evidence rule, classification of terms,
exclusion clauses.
Misrepresentation, mistake, illegality, duress, undue
influence, unconscionable bargains, capacity.
Employment contracts – contract for / of services.
Rights and duties of employers and employees
Performance, discharge and remedies for breach of
contract
Section 05
Formation of Business
Organizations
a) Define the role of the agent and give examples of
such relationships paying particular regard to partners
and company directors.
b) Explain how the agency relationship is established]
c) Define the authority of the agent.
d) Explain the potential liability of both principal and
agent.[
Demonstrate a knowledge of the legislation
Business Law
Level – One: Foundation – I Code: PF-102
33
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governing the partnership, both unlimited and limited.
b) Discuss how partnerships are established.
c) Explain the authority of partners in relation to
partnership activity.
d) Analyze the liability of various partners for
partnership debts.
e) Explain the way in which partnerships can be
brought to an end and partners’ subsequent rights
and liabilities
a) Distinguish between sole traders, partnerships and
companies.
b) Explain the meaning and effect of limited liability
Analyze different types of companies, especially
private and public companies.
d) Illustrate the effect of separate personality.
e) Recognize instances where separate personality
will be ignored.
Explain the role and duties of company promoters
Explain the meaning of, and the rules relating to, pre-
incorporation contracts
Describe the procedure for registering companies,
both public and private
Describe the statutory books, records and returns that
companies must keep or make
Analyze the effect of a company’s constitutional
documents
Describe the contents of model articles of association
Explain how articles of association can be changed
Explain the controls over the names that companies
may or may not use
Section 06
Sale of Goods and Supply of
services
Defining and distinguishing sales contracts..
Credit sales, hire purchase and lease.
Terms of the contract.
The duties of the parties.
Remedies.
Product guarantees, after sales services and product
liability.
Passing of property.
Passing of risk.
Title conflicts.
Contracts for the supply of services.
Relevant legislation
Business Law
Level – One: Foundation – I Code: PF-102
34
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Section 07
Financing of Companies
Examine the different meanings of capital.
b) Explain allotment of shares and distinguish
between rights issue and bonus issue of shares.
c) Illustrate the difference between various classes of
shares.
d) Explain the procedure for altering class rights
Explain the meaning of debenture.
c) Distinguish loan capital from share capital and
explain the different rights held by shareholders and
debenture holders.
d) Explain the concept of a company charge and
distinguish between fixed and floating charges.
e) Describe the need and the procedure for
registering company charges.
Capital maintenance and dividend law
a) Explain the doctrine of capital maintenance and
capital reduction.
b) Explain the nature of treasury shares.
c) Examine the effect of issuing shares at either a
discount, or at a premium.
d) Explain the rules governing the distribution of
dividends in both private and public companies
Section 08
Management, administration
Company directors
a) Explain the role of directors in the operation of a
company.
b) Discuss the ways in which directors are appointed,
can lose their office or be subject to a disqualification
order.
c) Distinguish between types of directors, such as
executive/ non-executive directors or de jure and de
facto directors.
d) Distinguish between the powers of the board of
directors, the managing director/chief executive and
individual directors to bind their company.
e) Explain the duties that directors owe to their
companies.
Discuss the appointment procedure relating to, and
the duties and powers of, a company secretary.
Discuss the appointment procedure relating to, and
the duties, powers and rights of company auditors
and their subsequent removal or resignation
Distinguish between types of meetings: ordinary
general meetings and annual general meetings.
Business Law
Level – One: Foundation – I Code: PF-102
35
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b) Explain the procedure for calling such meetings.
c) Detail the procedure for conducting company
meetings.
d) Distinguish between types of resolutions: ordinary,
special, and written.
Section 09
Legal implications to
companies
Explain the meaning of and procedure involved in
voluntary liquidation.
Explain the meaning of, the grounds for, and the
procedure involved in compulsory liquidation.
Explain the order in which company debts will be
paid off.
Explain administration as a general alternative to
winding up.
Explain in particular the way in which administrators
may be appointed, the effects of such
appointment, and the powers and duties of
administrators
Section 10
Negotiable Instruments
Negotiable Instruments.
Bills of Exchange.
Cheques
Promissory Notes
Bank Drafts
Section 11
Governance and Ethical Issues
Explain the idea of corporate governance.
Recognize and explain the extra-legal codes of
corporate governance.
Identify and explain the legal regulation of corporate
governance.
Recognize the nature and legal control over insider
dealing and market abuse.
Recognize the nature and legal control over money
laundering.
Recognize the nature and legal control over bribery.
Discuss potential criminal activity in the operation,
management and winding up of companies.
Distinguish between fraudulent and wrongful trading.
Business Law
Level – One: Foundation – I Code: PF-102
36
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Recommended Study Text
Keenan / Essentials of Irish Business Law 6th
edition 2012 / Gill and Macmillan / ISBN
9780717152612.
Byrne & McCutcheon / Irish Legal System, 5th
edition / Tottel / ISBN/ISSN 1845922786.
Keane / Company Law, 4th edition / Tottel,
ISBN 1845922980.
Economics & Business Environment
Level – One: Foundation – I Code: PF-103
37
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Aim
The aim of this subject is to
introduce students to the
nature and scope of
economics and related
business planning, with a focus
on the practical application of
theoretical concepts. Students
will examine how national and
international factors impact
upon wealth creation and
business development.
The key objectives of
economic policy will be
considered, while the uses of
analytical techniques and
mathematical approaches for
business planning will also be
explored
The aim of this subject is to
ensure that students have a
solid foundation in economics
contributing to the
development of a competent
and well-rounded\ member of
the profession. This subject
embraces knowledge of the
sources, interpretations and
limitations of
economic/business statistics
Learning Objectives:
On successful completion of this subject,
students should be able to:
A). Demonstrate a knowledge and
understanding of micro and macro
economic theory and related applications.
B). Compare different market structures and
circumstances, and describe the main
features and implications of each.
C). Identify the external factors, issues and
agencies which influence and help
determine the outcome of economic and
business policies.
D). Explain how marketing and sales activities
contribute to the attainment of strategic
organizational objectives.
E). Illustrate how analytical techniques and
mathematical approaches may be used in
economic policy and business decision
making.
F). Present, interpret and explain economic and
business data.
Economics & Business Environment
Level – One: Foundation – I Code: PF-103
38
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Section 01
Basic Concepts of Economics
The Fundamentals of Economics & Economic
Organizations
Utility, Wealth, Production, Capital
Central Problems of an Economy
Production Possibility Curve ( or Transformation Curve)
Equilibrium
Theory of Production ( meaning , factors, laws of
production- law of variable proportion, laws of returns
to scale)
Cost of Production ( concept of costs, short-run and
long-run costs, average and marginal costs, total,
fixed
Theory of Demand ( meaning, determinants of
demand, law of demand, elasticity of demand-
price, income and cross elasticity) and Supply (
meaning , determinants, law of supply and elasticity
of supply)
Section 02
Nature and Scope of
Economics
Development of economic theory and practice.
Economic principles and concepts.
Language of economics.
Supply, demand and price determination.
Market systems and the allocation of scarce
resources.
Market structures, including – Perfect Competition,
Imperfect Competition, Oligopoly, Monopoly.
Elasticity’s of supply and demand.
Concept of equilibrium.
Long-run and short-run cost factors.
Economies and diseconomies of scale
Pricing strategies in various markets
Economics & Business Environment
Level – One: Foundation – I Code: PF-103
39
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Section 03
Macroeconomic Theory and
Practice
The macroeconomic environment.
Government policies, objectives and instruments
National Income Accounting.
Determination of GDP and GNP.
National income multiplier and the accelerator
Unemployment, inflation, recession and growth.
Keynesian theory and subsequent developments.
Aggregate demand and the circular flow of income.
Fiscal and monetary policies and practices. Servicing
the national debt.
Monetary systems and currencies.
Exchange rates, interest rates, credit control and
availability. The role of Central Banks, the World Bank,
IMF and other agencies.
International trade and comparative advantage.
Balance of trade and balance of payments
UK economic institutions and policies.
Economic growth and welfare.
Current macroeconomic issues
Section 04
The Firm in the Marketplace
The concept of profit maximization-
The conditions for long-run profit maximization-
The conditions for short-run profit maximization-
An understanding of the various forms of market
structures –
Perfect Competition, Monopolistic (Imperfect)
Competition and Monopoly-
Long-run price/output determination for each of the
above forms of market structure-
Economic efficiency in respect of each of these forms
of market structure
Section 05
Growth Strategies of Firms
Horizontal growth
Vertical growth
Diversified growth
Growth by merger
Alternative theories of the firm-Principal
agent theory
Economics & Business Environment
Level – One: Foundation – I Code: PF-103
40
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Section 06
National Income
Gross National Product
Net National Product
Measurement of National Income
Economic growth and fluctuations
Consumptions,
Savings and Investment
Section 07
Business Planning and Analysis
The growth and development of the organisation.
National and international business environments
Strategic and tactical planning.
Sources of finance for business development
Decision making, profit maximization and other
considerations.
Goal and target setting
Marketing and sales concepts, roles and functions
Market planning and analysis,
Influences on consumer behaviour.
The marketing mix
Services marketing
Environmental, cultural and technological factors in
marketing and sales
Quantitative and qualitative research
Sales techniques and influences
Ethical behaviour in marketing and selling.
Analytical techniques
Moving averages and regression analysis
Measures of central tendency and dispersion.
Mean, median, mode, and standard deviation.
Probability, sampling, statistical inference and
hypothesis testing.
Graphical and pictorial presentation of economic
and related data. The compilation, interpretation and
use of bar charts, histograms, pie charts, frequency
distributions, graphs and tables.
Economics & Business Environment
Level – One: Foundation – I Code: PF-103
41
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Section 08
Government and the Macro
economy
Objectives of national economic policy
Interaction of objectives-Policy instruments
Economic cycles
Budget strategies
Fiscal stabilisers
Economic implications of direct and indirect forms of
taxation
Section 08
Global Economics
Law of comparative advantage-
Terms of trade-
Restrictions to free international trade-
Fixed versus floating exchange rates-
Balance of payments-
The global market environment-
Economic benefits to a firm from a global strategy
Recommended Study Text
Turley, Moloney and O’Toole / Principles of
Economics /(Gill & Macmillan 4th ed. 2011 /
ISBN: 9780717149889.
Francis / Business Mathematics and Statistics /
Cengage 6th ed. Revised/ ISBN
9781844801282.
Brassington and Pettitt / Essentials of
Marketing / Pearson / 3rd ed. 2012 / ISBN13:
9780273727644 / ISBN10: 0273727648.
Business Mathematics & Statistics
Level – One: Foundation – I Code: PF-104
42
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Aim
To provide the students with
the basic knowledge of
mathematics and statistics to
enable them to:
Use and interpret
mathematical and statistical
methods, and present the
results of quantitative nature, in
a suitable form for taking
business decisions.
Learning Objectives:
On completion of this course, students should
be able to:
A). describe and demonstrate the use of
mathematical and statistical techniques,
B). understand the proper use of formulae and
ratios,
C). describe reasonableness in the
computation of answer,
D). understand and apply techniques for
summarizing and analyzing data,
E). describe and demonstrate the use of
probability, in case of involvement of risk
and uncertainty,
F). describe and apply financial mathematical
techniques, and
G). describe and demonstrate forecasting
techniques.
Business Mathematics & Statistics
Level – One: Foundation – I Code: PF-104
43
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Section 01
Preliminaries
Factorization
Equations
Inequalities,
Absolute Value Relationship
,Quadratic Equation and Nature of Roots
Mid-Points,
Two Point Formula
Distance Formula,
Rectangular Coordinate System
Section 02
Mathematical Functions
Functions,
Domain Range Relationship,
Restricted Domain and Range,
Value of the Function,
Graph Representation of the Functions,
Type of Functions (Constant, Linear, Rational,
Combinations, Composite, Polynomial, etc.),
Applications of the Linear Functions, Break-Even
Models
Section 03
Differentiation
The Limit and Introduction
Average rate of change
Concepts of derivative and differentiation
Basic Rules of Differentiation
Instantaneous-rate of change
Partial Derivatives and Mixed Partial Derivatives
Section 04
Matrix and Determinants
Addition, subtraction, multiplication, inverse of
matrices,
Solution of equations using matrix;
Inequalities, graphical presentation of inequalities;.
graphical method for linear programming;
problems in graphical solutions such as no feasible
Business Mathematics & Statistics
Level – One: Foundation – I Code: PF-104
44
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solution
alternative optimum solution,
unbounded solutions and redundant constraints
Section 05
Mathematics of Finance
Simple interest
present and future values
discounting notes; bank discount
Compound interest and annuities
sinking funds, present value
perpetuities
effective rate of interest
Section 06
Statistical Methods
Collection, presentation, tabulation, graphical
presentation through graphs, charts and diagrams
stem and leaf display, box and whisker plot
Measures of central tendencies
Measures of dispersions
Index numbers
weighted index numbers
concept of purchasing power and deflation of
income
Section 07
Regression Analysis
Scatter graphs,.
Simple Linear Regression
least squares method
Co-efficient of determination
correlation co-efficient
rank correlation,
Use of linear regression equation in forecasting
Section 08
Probability
Meaning of probability
nature of probability distributions
discrete and continuous variables
expected values
Standard Normal Distribution
Business Mathematics & Statistics
Level – One: Foundation – I Code: PF-104
45
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confidence intervals, z-score and associated
diagrams
Use and application of probability distributions
Section 09
Sampling and Decision Making
Sampling Methods
Simple random, stratified, cluster
systematic sampling, Interval estimation for large and
small samples
confidence levels, standard error
estimate of sample size
Hypothesis testing
Null and Alternative hypothesis; description of Type I
and Type II errors
Section 10
Decision-Making
Probability Sampling
Sampling Distribution of Mean),
Estimation (Confident Innerves) for single
population mean,
Test of hypothesis (t & z test) for single population
mean,
Chi-Squire Test,
Concept of Sample Size
Hypothesis testing
Null and Alternative hypothesis; description of Type I
and Type II errors
Section 11
Statistical Forecasting
Linear Correlation Coefficient
Coefficient of Determination
Linear regression model
Least square methods, semi-average, moving
average,
Index Number (Simple and Weighted).
Business Mathematics & Statistics
Level – One: Foundation – I Code: PF-104
46
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Section 12
Network Analysis
Critical Path Analysis (CPM)
Gantt Charts
Analysis of network
crashing program evaluation and network analysis
activity-on-arrow and activity-on mode diagrams,
probabilities network
Section 13
Linear Programming
Optimization by linear programming using
graphical and simplex methods
Sensitivity Analysis.
Linear and non-Linear Optimisation
Recommended Study Text
Quantitative Methods for Business Decisions by
Curwin and Slater
Applied Mathematics for Business By Frank S. Budnik
Quantitative Techniques by T lucy
Income Tax
Level – II: Foundation – II Code: FP-201
47
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Aim
To develop knowledge and
skills relating to the tax system
as applicable to individuals,
single companies, and groups
of companies
Learning Objectives:
On successful completion of this paper candidates
should be able to:
A). Explain the operation and scope of the tax
system
B). Explain and compute the income tax
liabilities of individuals
C). Explain and compute the corporation tax
liabilities of individual companies and groups
of companies
D). Explain and compute the chargeable gains
arising on companies and individuals
E). Explain and compute the inheritance tax
liabilities of individuals
F). Explain and compute the effect of national
insurance contributions on employees,
employers and the self employed
G). Explain and compute the effects of value
added tax on incorporated and
unincorporated businesses
H). Identify and explain the obligations of tax
payers and/or their agents and the
implications of non-compliance
Income Tax
Level – II: Foundation – II Code: FP-201
48
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Section 01
Purpose and administration of
Taxation
Tax legislation.
Tax administration
Direct and Indirect taxation.
Registration and collection, of various taxes,
assessments and appeals
Residence and Domicile
The role of the accountant: position as tax agent
including rights to attend appeal hearings; duties to
the client, the profession and the State.
Section 02
Tax System
The overall function and purpose of taxation
in a modern economy
Describe the purpose (economic, social etc) of
taxation in a modern economy
Identify the different types of capital and
revenue tax
Explain the difference between direct and
indirect taxation
Principal sources of revenue law and practice
Describe the overall structure of the UK tax
system
State the different sources of revenue law
Appreciate the interaction of the UK tax system
with that of other tax jurisdictions
Explain the difference between tax avoidance
and tax evasion
Explain the need for an ethical and professional
Approach
Section 03
The scope of Income Tax
Charge to income tax, Residence and Domicile
• Taxation of individuals and partnerships.
• System of Self Assessment.
• Tax bands, tax credits and relief.
• Tax treatment of single, widowed, married,
separated and divorced persons
Income from employment
Recognize the factors that determine
whether an engagement is treated as
employment or self-employment
Recognize the basis of assessment for
employment income
Compute the income assessable
Income Tax
Level – II: Foundation – II Code: FP-201
49
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Recognize the allowable deductions,
including travelling expenses
Discuss the use of the statutory approved
mileage allowances.
Explain the PAYE system
Identify P11D employees.
Compute the amount of benefits assessable.
Explain the purpose of a dispensation from
HM
Revenue & Customs
Explain how charitable giving can be made
through a payroll deduction scheme
Income from self-employment
Recognize the basis of assessment for self-
employment income
Describe and apply the badges of trade
Recognize the expenditure that is allowable in
calculating the tax-adjusted trading profit
Recognize the relief that can be obtained for
pre-trading expenditure
Compute the assessable profits on commencement
and on cessation
Change of accounting date
Recognize the factors that will influence the
choice of accounting date
State the conditions that must be met for a
change of accounting date to be valid
Compute the assessable profits on a change of
accounting date.
Retirement annuity contracts including PRSAs and
AVCs
High income earner restriction
Define plant and machinery for capital allowances
purposes
Compute writing down allowances, first year
allowances and the annual investment allowance
Compute capital allowances for motor cars
Compute balancing allowances and balancing
charges
Recognize the treatment of short life assets
Explain the treatment of assets included in the special
rate pool
Understand how trading losses can be carried
forward
Explain how trading losses can be carried forward
following the incorporation of a business
Understand how trading losses can be claimed
Income Tax
Level – II: Foundation – II Code: FP-201
50
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Section 05
The comprehensive
computation of taxable
income and income tax
liability
Prepare a basic income tax computation involving
different types of income
Calculate the amount of personal allowance
available generally, and for people aged 65 and
above.
Compute the amount of income tax payable
Explain the treatment of interest paid for a qualifying
purpose
Gift and donations
Property owned jointly by a married couple, or by a
couple in a civil partnership
against total income and chargeable gains
Explain and compute the relief for trading losses in
the early years of a trade
Explain and compute terminal loss relief
Partnerships and limited liability partnerships
Explain how a partnership is assessed to tax.
Compute the assessable profits for each partner
following a change in the profit sharing ratio
Compute the assessable profits for each partner
following a change in the membership of the
partnership
Describe the alternative loss relief claims that are
available to partners
Explain the loss relief restriction that applies to the
partners of a limited liability partnership.
Section 04
Property and Investment
Income
Compute property business profits
Explain the treatment of furnished holiday lettings
Describe rent-a-room relief
Compute the amount assessable when a premium is
received for the grant of a short lease
Understand how relief for a property business
loss is given
Compute the tax payable on savings income
Compute the tax payable on dividend income
Explain the treatment of individual savings accounts
(ISAs) and other tax exempt investments
Income Tax
Level – II: Foundation – II Code: FP-201
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Section 06
Corporate Taxation
Basic principles and administration.
Computations including capital allowances, capital
gains, treatment of distributions
Losses excluding terminal loss relief
‘period of account’,
‘accounting period’, and ‘financial year
Recognize when an accounting period starts and
when an accounting period finishes
how the residence of a company is determined
Recognize the expenditure that is allowable
in calculating the tax-adjusted trading profit
Explain how relief can be obtained for
pretrading
expenditure
Compute capital allowances
Compute property business profits
Explain the treatment of interest paid and
received under the loan relationship rules
Explain the treatment of qualifying charitable
donations
Understand how trading losses can be
carried forward
Understand how trading losses can be
claimed against income of the current or
previous accounting periods.
taxable total profits
Compute the corporation tax liability and apply
marginal relief
Explain the implications of receiving franked
investment income
Define an associated company and recognize the
effect of being an associated company for
corporation tax purposes
Define a 75% group, and recognize the reliefs that are
available to members of such a group
Define a 75% capital gains group, and recognize the
reliefs that are available to members of such a group
Compare the UK tax treatment of an overseas
branch to an overseas subsidiary
Calculate double taxation relief
Explain the election for the exemption of profits
from overseas branches
Explain the basic principles of the transfer pricing rule
Income Tax
Level – II: Foundation – II Code: FP-201
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Section 07
The scope of the taxation of
capital gains
Principles and scope.
Basis of Assessment.
Exemptions and reliefs to include; PPR, Transfer of
business to company, retirement.
Chattels and marginal relief.
Basic computations of gains and losses, including
indexation
Share transactions to include bonus and rights issues
Part disposals--Development land – gains, losses,
Indexation
Gains and losses on the disposal of movable and
immovable property
The computation of capital gains tax payable by
Individuals
Explain and apply entrepreneurs’ relief as it
applies to individuals.
Explain and apply rollover relief as it applies
to individuals and companies
Explain and apply holdover relief for the gift
of
business assets
Explain and apply the incorporation relief
that is available upon the transfer of a
business to a company
Section 07
Inheritance Tax
Describe the scope of inheritance tax
Identify and explain the persons chargeable.
State, explain and apply the meaning of transfer of
value, chargeable transfer and potentially exempt
transfer
Demonstrate the diminution in value principle.
Demonstrate the seven year accumulation principle
taking into account changes in the level of the nil
rate band
The liabilities arising on chargeable lifetime transfers
and on the death of an individual.
The use of exemptions in deferring and minimizing
inheritance tax liabilities
Payment of inheritance tax
Income Tax
Level – II: Foundation – II Code: FP-201
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Section 08
VAT & Double Taxation
Legislative requirements and procedures.
Cash and invoice basis.
Two-thirds and package rule.
Zero and exempt.
Non-deductible inputs.
intra community trade
Imports and exports
A basic knowledge is required insofar as it relates to
an individual’s Investment income, with particular
emphasis on the Irish/UK Tax Treaty
Recommended Study Text
Management Accounting By W. Seal, R. H. Garrison
& E. W. Noreen
Management and Cost Accounting By C. Dury
Management and Costing Accounting By C. T.
Horngren / A. Bhimani, S. M. Datar & G.
Foster
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
54
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Aim
The aim of this subject is to ensure
that students develop a
knowledge and understanding of
the various cost accounting
principles, concepts and
techniques appropriate for
planning, decision-making and
control and the ability to apply
these techniques in the
generation of management
accounting reports
Learning Objectives:
On successful completion of this subject
students should be able to:
A). Explain the relative strengths and weaknesses
of alternative cost accumulation methods
and discuss the value of management
accounting information.
B). Calculate unit costs, applying overhead
using both absorption costing and activity
based costing principles.
C). Apportion and allocate costs to units of
production in job, batch and process costing
systems, for the purpose of stock valuation
and profit measurement.
D). Identify and explain cost behaviour patterns
and apply cost-volume profit analysis.
E). Define and use relevant costs in a range of
decision-making situations.
F). Prepare and present budgets for planning,
control and decision making.
G). Compute, interpret and investigate
variances.
H). Demonstrate communication skills, including
the ability to present quantitative and
qualitative information, together with
analysis, argument and commentary, in a
form appropriate to the intended audience.
I). Compare actual costs with standard costs
and analyse any variances
J). Explain and apply performance
measurements and monitor business
performance.
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
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Section 01
Introduction to Cost
Accounting
Objectives and scope of cost accounting
Cost centres and cost units
Cost classification for stock valuation, profit
measurement, decision making and control
Coding systems
Elements of cost
Cost behaviour pattern, separating the components
of semi-variable costs
Installation of a costing system
Relationship of cost accounting, financial
accounting, management accounting and financial
management
Section 02
Management Accounting
Describe the purpose and role of cost and
management accounting within an organisation
Compare and contrast financial accounting with
cost and management accounting`
Outline the managerial processes of planning,
decision making and control.
Explain the difference between strategic, tactical
and operational planning
Distinguish between data and information
Identify and explain the attributes of good
information
Explain the limitations of management information in
providing guidance for managerial decision-making.
The nature and scope of management accounting,
the relationship between management accounting
and financial accounting
Cost classifications
The role of the Management Accountant in a
modern business environment, including the
recognition of possible ethical issues that may arise
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
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Section 03
Cost Accumulation Systems
Accounting for materials
Stock valuation approaches (FIFO, LIFO and AVCO)
EOQ and JIT concepts,
Accounting for labour: remuneration methods,
incentive schemes, productivity, labour turnover and
labour performance
Section 04
Costing
Material Costing
Preparation of Income Statement,
Preparation of Cost of Goods Sold Statement
Cost Control Methods
Describe the different procedures and documents
necessary for the ordering, receiving and issuing of
materials from inventory
Describe the control procedures used to monitor
physical and ‘book’ inventory and to minimize
discrepancies and losses
Interpret the entries and balances in the material
inventory account
Identify, explain and calculate the costs of ordering
and holding inventory (including buffer inventory)
Calculate and interpret optimal reorder quantities
Calculate and interpret optimal reorder quantities
when discounts apply
Produce calculations to minimize inventory costs
when inventory is gradually replenished
Describe and apply appropriate methods for
establishing reorder levels where demand in the lead
time is constant
Calculate the value of closing inventory and material
issues using LIFO, FIFO and average methods
Labour Costing
Direct and indirect labour
Productivity and efficiency
Remuneration methods
Straight piece rate and differential piece rate,
Incentive wage plan
Group bonus
Time sheet and job cards
Overtime and idle time, Payroll
Labour turnover rate.
FOH Costing
Classification and collection of overhead
Predetermined overhead applied rate
Factory overhead cost: planned, applied and actual,
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
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over and under applied factory overhead and its
disposal,
Departmentalization of overhead, Allocation,
apportionment and reapportionment of overhead
costs
Repeated distribution and algebraic method for
reciprocal
Service department costs.
Section 05
Cost Classification
Explain and illustrate production and
nonproduction costs.
Describe the different elements of non production costs- administrative, selling, distribution and finance
Describe the different elements of production cost- materials, labour and overheads
Explain the importance of the distinction between production and non production costs when valuing output and inventories
Explain and illustrate with examples classifications used in the analysis of the product/service costs including by function, direct and indirect. fixed and variable, stepped fixed and semi variable costs
Explain and illustrate the use of codes in categorizing transaction
Describe and illustrate, graphically, different types of cost behaviour
Use high/low analysis to separate the fixed and variable elements of total costs including situations involving semi variable and stepped fixed costs and changes in the variable cost per unit
Explain the structure of linear functions and equations
Explain and illustrate the concept of cost objects, cost units and cost centres
Distinguish between cost, profit, investment and revenue centres
Describe the differing needs for information of cost, profit, investment and revenue centre managers
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
58
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Section 06
Standard costing
Basic concept of standard costing
Preparation of standard cost,
types of production capacities,
Material price and usage variances,
Labour rate and efficiency variances,
Variable overhead expenditure and efficiency
variances
Fixed overhead budget and volume variances
Section 07
Break Even Analysis and
Marginal Costing
Marginal cost and contribution margin,
Contribution margin to sales ratio,
Break-even in units and value
Margin of safety ratio
Breakeven graph
Section 08
Cost Behaviour
Fixed, variable, semi variable and step fixed cost,
Linear, curvilinear and step functions, relevant range,.
Factors influencing cost behaviour.
Methods of segregation of cost into fixed and
variable, high low method, scatter graph method,
regression analysis and correlation,
Learning curve and cost function
Section 09
Cost Volume Profit Analysis
Break-even analysis, Break-even graph and profit
graph,
Multi-product CVP analysis
Operational leverage, the economist’s and
accountant’s CVP model
Assumptions of CVP analysis
Effect of changes in cost and revenue
Section 10
Information for Planning and
Control
The role of budgeting, including alternative
budgeting systems,
Behavioural and motivational issues in the budgetary
process,
Functional and subsidiary, Standard costing,
role and procedures for standard setting including
different types of Standards
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
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Variance analysis: the calculation and interpretation
of basic sales/cost variances, Reconciliation reports,
The inter-relationship and possible causes of
variances, (fixed overhead capacity and efficiency
variances are not examinable.)
Section 11
Pricing Decisions
Economic theory of pricing
Optimal sales price using differential calculus
Difficulties with applying economic theory
Cost based or cost plus pricing
Pricing policies, Pricing for target rate of return
Pricing strategies for new products: skimming and
penetration pricing
Section 12
Information for Decision
Making
Cost behaviour patterns and identification of
fixed/variable elements in a cost using High/Low
method,
scatter-graphs and regression analysis,
Break-even analysis and the importance of
contribution,
Break-even chart preparation and interpretation,
Calculation of break-even point,
margin of safety and target profit
Limitations of Cost-Volume Profit Analysis,
Relevant costing principles, including committed,
sunk and opportunity costs, Relevant costs in decision
making,
Decision making with a single limiting
factor/constraint, Qualitative factors relevant to
specific
Section 13
ABC Costing, JIT & TQM
Activity based costing for control and decision
making purposes
Basic concepts and application of TQM and JIT
Cost & Management Accounting
Level – II: Foundation – II Code: FP-202
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Section 14
Management Control System
Responsibility accounting;
Decentralized divisional control;
transfer prices;
residual income and ROI as tools of control;
centralized control and budgetary systems;
evaluation of performance;
performance budgeting
Reporting on performance at different levels
Section 15
Absorption & Marginal Costing
Explain the importance of, and apply, the
concept of contribution
Demonstrate and discuss the effect of
absorption and marginal costing on inventory
valuation and profit determination
Calculate profit or loss under absorption and
marginal costing
Reconcile the profits or losses calculated
under absorption and marginal costing
Describe the advantages and disadvantages
of absorption and marginal costing
Recommended Study Text
Management Accounting By W. Seal, R. H. Garrison
& E. W. Noreen
Management and Cost Accounting By C. Dury
Management and Costing Accounting By C. T.
Horngren / A. Bhimani, S. M. Datar & G.
Foster
Drury, C., Cost and Management Accounting –
An Introduction, 7th ed. / Cengage 2011 /
ISBN: 97814032138
Business Communication & Report Writing
Level – II: Foundation – II Code: FP-203
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Aim
This course is designed to
introduce students to the key
concepts of business
communication and their
application. The course is
designed to provide the
students with theoretical and
practical knowledge of verbal
and non-verbal presentation
and communication skills.
Learning Objectives:
On the completion of this course, the students will be
able to:
A). Understand and communicate in
professional manner
B). Read comprehension and make judgment
C). Draft letters and use official communication
tools
D). Write and present reports
E). Listening and speaking skills will be polished
F). Attend and present effective meeting
professional
Section 01
Vocabulary
Phrases,
Synonyms, Antonyms
Idioms, Frequently Confused Words, Frequently
misused Words,
Common Vocabulary, and One Word Substitute`
Articles a, an and the
Section 02
Grammar and Usage
Parts of Speech,
Basic Grammar,
Sentences and Structures
sentence based on function and structure,
Active and Passive Voice, Direct and Indirect
Speech,
Use of Punctuation, Phrases, Idioms
Section 03
Composition and
Comprehension
Letter writing,
Précis writing,
Essay writing,
Comprehension
Business Communication & Report Writing
Level – II: Foundation – II Code: FP-203
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Section 04
Business Communication
Effective communication in business
definition, characteristics, process, forms, channels
and importance, different kinds of communication; its
features, elements, concepts;
verbal and non-verbal communication; process of
preparing effective business messages;
Planning steps; basic organizational plans; beginnings
and endings communication principles;
Styles of communication; 7C’ s of communication,
Gestures; manners; presentations and follow-up or
feedback
Interviewing skills, listening skills,
organizing and conducting meetings, business group
discussions,
communication within and outside the organization,
structure of the organization
open communication climate, communication
barriers,
interpersonal communication, intercultural
communication, ethical communication,
legal aspects of communication, and the role of
technology in communication
Business Terminologies
Bull, Bearish, and other similar terminologies of
Business Field
Section 05
Business Letters
Informal letters;
business or formal letters
; direct request inquiries claims and requests for
adjustments; requests regarding routine business or
public causes; invitations;
preparing proposals/feasibilities, documentation,
orders; reservations;
favorable replies; unsolicited favorable messages;
request;
sales letters; evaluating, achievements;
market research; making preliminary career
decisions; resume and job application letter
Business Communication & Report Writing
Level – II: Foundation – II Code: FP-203
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Section 06
Memo Writing & Short Report
Writing
Memorandum writing,
Importance of memo,
Short Memorandum used in Offices,
Memorandum Legal or not
Reports,
Types of Reports,
Importance of report Writing
Short Report Writing,
Why reports are written
Section 07
Presentation skills
Common myths about presentational ability;
difference between speech and presentation;
categories presentations according to their purpose;
analysis of the audience before making a
presentation;
evaluating the appropriateness of the setting and
venue of presentation;
the steps in planning a presentation;
some common symptoms of stage fright and
measures to overcome it; developing an introduction,
a body and a close for a formal presentation; some
do’s and don’ts of verbal and non-verbal
communication;,
selecting, designing and using appropriate visual
aids; handling audience questions effectively;
delivering a short formal presentation on an assigned
topic, interviews, meetings
Recommended Study Text
Effective Business Communication by Herta A. Murphy
Excellence in Business Communication by Join V Thill
Courtland L Bove.s
Model Business Letters by L. Gartside
Audit and Assurance
Level – II: Foundation – II Code: FP-204
64
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Aim
The aim of this subject is
To introduce students to the
concepts and principles of the
audit process and to develop their
understanding of its application in
the context of the legal,
regulatory and ethical framework
of the profession.
To provide students with a deeper
understanding of audit and
assurance services within a wide
variety of contexts
To apply their knowledge of
professional practice to resolve
compliance and audit issues
occurring in businesses.
Learning Objectives:
On successful completion of this subject, students
should be able to:
A). Interpret and discuss the legal, regulatory
and ethical framework within which the
auditor operates.
B). Differentiate and explain the respective
responsibilities of directors and auditors.
C). Explain the nature, purpose and scope of an
audit and discuss and defend the role of the
auditor.
D). Apply and explain the process relating to the
acceptance and retention of professional
appointments, to include the purpose and
content of engagement letters.
E). Devise an overall audit strategy and develop
an audit plan.
F). Supervise and review the various stages of
the audit process.
G). Outline the nature of internal controls and
the procedures required to evaluate control
risk relating to specific accounting systems, in
order to identify internal controls and
weakness within the systems.
H). Distinguish between Tests of Control and
Substantive Procedures.
I). Design and apply the appropriate audit tests
to include in the audit programme.
J). Carry out analytical procedures and assess
the implications of the outcome
Audit and Assurance
Level – II: Foundation – II Code: FP-204
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Section 01
The Auditor and The Audit
Environment
The Statutory Audit: need, objective, focus, nature
and structure
Public interest, expectations, interrelationships
between auditor, directors (management) and
shareholders and other users of financial statements,
including their respective roles and the auditor’s
duties to these parties.
International Standards on Auditing (ISAs): nature,
formulation, issuance and compliance enforcement.
The audit implications of International Accounting
Standards (IFRS/IAS): understanding and basis for
application.
Directors’ responsibilities versus auditor’s
responsibilities for financial statements and internal
controls
Corporate governance
Distinction between external and internal audit
Section 02
Auditors Legal, Ethical and
Professional Responsibilities
Professional ethical responsibilities:
– CPA Code of Ethics.
– IFAC Code of Ethics.
Statutory responsibilities and rights
Key responsibilities derived from International
Standards on Auditing (ISAs).
Auditor’s responsibility in relation to fraud and for the
entity’s compliance with laws and regulations.
Auditor’s responsibilities defined by case law arising
from alleged negligence (financial statements
misstated) and related exposure and consequences
Pre-appointment procedures: client assessment
(including management integrity) and completion of
engagement letter.
Section 03
Audit Framework and
Regulation
Concept of audit and other assurance engagements
Objective and general principles of external audit
engagements.
Nature and Development of audit and other
assurance engagements.
Concepts of accountability, stewardship and agency
Audit and Assurance
Level – II: Foundation – II Code: FP-204
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Section 04
Audit Planning and Supervision
Materiality: nature (quantitative and qualitative),
determination, impact and use throughout different
phases of the audit
Audit risk and its components (inherent, control and
detection risks): interrelationships, evolutions audit
progresses and impact on nature, timing and extent
of audit work.
Audit strategies (risk-based auditing, tests of control,
substantive procedures, combined procedures, audit
around and through computerized systems) and their
impact on the conduct of the audit.
Knowledge of the entity and its environment:
business, risks, management, and accounting system
Nature, extent and timing of audit procedures in
response to assessed risks of material misstatement,
sufficient and appropriate audit evidence, types of
audit evidence, general audit techniques (enquiry,
observation, inspection, analysis, computation,
confirmation).
Audit planning memo, audit programmes and
working papers
Audit supervision and review
Section 05
The modern audit process
• Process of planning
• Understanding the entity
• Business risk model
• Audit risk model
• Creative accounting
• Analytical procedures
• Materiality
• Responding to assessed risks
Other audit methodologies
Section 06
Audit Execution
Entity’s control environment and control procedures,
objectives, limitations, attributes
Auditor’s and management respective
responsibilities.
Internal control descriptions (flowcharts, narrative
descriptions, walkthroughs) and internal control
assessments (ICEs/ICEQs).
Broad approach to internal controls, components of
internal controls, limitations of internal control
Audit and Assurance
Level – II: Foundation – II Code: FP-204
67
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Assessing the Risk of Material Misstatement, Internal
Controls assessment and Tests of Control for the
following major systems: sales, purchases, payroll,
cash receipts and disbursements, inventory.
Audit Programmes for Tests of Control
Final Assessment of Control Risk: Management letter
reporting and assessment of impact on audit
strategy.
Section 07
Audit evidence
Risk and assertions
Sufficient appropriate audit evidence
Sources of audit confidence
Audit procedures
Analytical procedures
Provisions and contingencies
Audit of accounting estimates
Related parties
Management representations
Opening balances
Service organizations
Section 08
Performing Audit
Application of specific substantive
procedures to test the following
categories of assertions:
– Assertions relating to classes of
transactions and events;
– Assertions relating to account
balances;
– Assertions relating to presentation and disclosure.
Audit of statements of financial
position, validation procedures,
applied in audit of:
– Tangible fixed assets.
– Inventory.
– Accounts receivable, prepayments & sundry
debtors.
– Investments and market securities.
Audit and Assurance
Level – II: Foundation – II Code: FP-204
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– Bank and cash balances.
– Accounts Payable, accruals & sundry creditors,
provisions for liabilities.
– Debenture loans and bank borrowings.
– Capital and Reserves, Equity
Audit of statements of comprehensive Income
account , validation procedures, applied in audit of:
– Revenues and expenses.
– Sales/purchases.
– Wages and salaries.
– Other statement of comprehensive income
account items.
Misstatements / aggregation /assessment / impact on
audit reporting
Sampling methods: decision to use, judgmental versus
statistical (MUS) sampling methods for controls and
financial statement items, sample selection and
assessment.
Analytical review: nature and use (financial
statements/data) throughout audit.
Going concern -Subsequent events
Accounting estimates.
Commitments and contingencies.
Management representation letters.
Use of experts.
Section 09
Audit Reporting
Reporting on Audited Financial
Key concepts: opinion, true and fair view, materiality,
statutory requirements.
Basic elements of the Auditor’s Report..
Modified Reports, differentiating between
– Matters that do not affect the auditor’s opinion,
and
– Matters that do affect the auditor’s opinion.
Circumstances giving rise to Modified Reports:
– Limitations on Scope
– Disagreements with management.
Auditor’s responsibility before and after the date of
the Auditor’s Report.
Audit of accounting estimates
Audit and Assurance
Level – II: Foundation – II Code: FP-204
69
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Section 10
Internal Audit
Factors to be taken into account when assessing the
need for internal audit.
Elements of best practice in the structure and
operations of internal audit with reference to
appropriate international codes of corporate
governance.
Differences between external and internal audit
Role of external and internal audit regarding audit
planning and the collection of audit evidence..
Scope of the internal audit function
Scope of internal audit and the limitations of the
internal audit function.
Types of audit report provided in internal audit
assignments.
Responsibilities of internal and external auditors for
the prevention and detection of fraud and error.
Outsourcing the internal audit department
Advantages and disadvantages of outsourcing
internal audit.
Nature and purpose of internal audit assignments
including value for money, IT, best value and
financial.
Nature and purpose of operational internal audit
assignments including procurement, marketing,
treasury and human resources management
Section 11
Planning and Risk Assessment
Need to plan and perform audits with an attitude of
professional skepticism.
Engagement risks affecting the audit of an entity.
Components of audit risk.
Risk based, procedural and other approaches to
audit work.
Importance of risk analysis. Information technology in
risk analysis
Auditors obtain an initial understanding of the entity
and knowledge of its business environment
Concepts of materiality and tolerable error.
Indicative materiality levels from financial information.
Effect of fraud and misstatements on the audit
strategy and extent of audit work
Nature and purpose of analytical procedures in
planning.
Key ratios used in analytical procedures.
Need for planning an audit.
Contents of the overall audit strategy and audit plan.
Audit and Assurance
Level – II: Foundation – II Code: FP-204
70
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Describe the relationship between the overall audit
strategy and the audit plan.
Develop and document an audit plan.
Difference between interim and final audit.
Need for and the importance of audit
documentation.
Working papers and supporting documentation.
Procedures to ensure safe custody and retention of
working papers.
Extent to which auditors are able to rely on the work
of experts.
Extent to which external auditors are able to rely on
the work of internal audit.
Audit considerations relating to entities using service
organizations.
Why auditors rely on the work of others.
Extent to which reference to the work of others can
be made in audit reports.
Section 12
Internal Control
Explain why an auditor needs to obtain an
understanding of internal control activities relevant to
the audit.
Key components of an internal control system.
Important elements of internal control including the
control environment and management control
activities.
Difference between tests of control and substantive
procedures.
Importance of internal control to auditors.
How auditors identify weaknesses in internal control
systems and how those weaknesses limit the extent of
auditors’ reliance on those systems.
Internal control procedures and control activities.
Computer system controls
Tests of control suitable for inclusion in audit working
papers.
Application controls and general IT controls
Limitations of internal control components in the
context of fraud and error.
Need to modify the audit strategy and audit plan
following the results of tests of control.
Management’s risk assessment process with
reference to internal control components
Audit and Assurance
Level – II: Foundation – II Code: FP-204
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Internal management control.
Importance of internal control and risk management
in corporate governance.
Internal control systems.
Corporate governance and executive management
roles in risk management.
Importance of the elements or components of
internal control systems.
Need for adequate information flows to
management for the purposes of the management
of internal control and risk.
Qualities and characteristics of information required
in internal control and risk management and
monitoring
Section 13
Review
Purpose of a subsequent events review.
Procedures to be undertaken in performing a
subsequent events review.
Significance of the concept of going concern.
Importance of and the need for going concern
reviews.
Respective responsibilities of auditors and
management regarding going concern.
Procedures to be applied in performing going
concern reviews.
Disclosure requirements in relation to going concern
issues
Reporting implications of the findings of going
concern reviews.
Procedure for obtaining management
representations.
Quality and reliability of management
representations as audit evidence.
Circumstances where management representations
are necessary and the matters on which
representations are commonly obtained
Importance of the overall review of evidence
obtained.
Significance of unadjusted differences
Limitations of internal control components in the
context of fraud and error.
Need to modify the audit strategy and audit plan
Audit and Assurance
Level – II: Foundation – II Code: FP-204
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following the results of tests of control.
Management’s risk assessment process with
reference to internal control components
Internal management control.
Importance of internal control and risk management
in corporate governance.
Internal control systems.
Corporate governance and executive management
roles in risk management.
Importance of the elements or components of
internal control systems.
Need for adequate information flows to
management for the purposes of the management
of internal control and risk.
Qualities and characteristics of information required
in internal control and risk management and
monitoring
Recommended Study Text
Modern Auditing, 3rd Edition 2008 / Cosserat and
Rodda/ Wiley/ ISBN 978 0470319734
Guide to Using International Standards on
Auditing in the Audits of Small- and Medium-
Sized Entities /3rd Edition 2011 / IFAC /
ISBN 978-1-60815-099-1
Volume 1:
http://ifac.org/sites/default/files/publications
/files/SMP-ISA-Audit-Guide-Volume-1-
3e_0.pdf
Volume 2:
http://ifac.org/sites/default/files/publications
/files/SMP-ISA-Audit-Guide-Volume-2-
3e_0.pdf
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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Aim
The aim of this subject is :
To ensure that students
have the technical
knowledge and critical
understanding of how
to account for
transactions and
prepare financial
statements for both
single entities and
groups, in accordance
with international
financial reporting
standards and UK
GAAP.
To ensure that students
apply the appropriate
judgment and technical
ability in the preparation
and interpretation of
financial statements for
complex business entities.
to evaluate and
communicate the impact
of current issues and
developments in
corporate reporting to
those who may not have
such theoretical and
technical expertise
Apply knowledge, skills
and exercise professional
judgment in the
application and
evaluation of financial
reporting principles and
practices in a range of
business contexts and
situations
Learning Objectives:
On successful completion of this paper candidates
should be able to:
A). Discuss the professional and ethical duties of
the accountant
B). Evaluate the financial reporting framework
C). Advise on and report the financial
performance of entities
D). Prepare the financial statements of groups of
entities in accordance with relevant
accounting standards
E). Explain reporting issues relating to specialized
entities
F). Discuss the implications of changes in
accounting regulation on financial reporting
G). Appraise the financial performance and
position of entities
H). Evaluate current developments
I). Discuss, explain and apply the methods of
accounting for business combinations; and
Interpret financial statements and prepare
reports tailored to each user group’s
technical knowledge and understanding of
such statements
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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Section 01
The professional and ethical
duty of the accountant
Professional behaviour and compliance with
accounting standards
Appraise and discuss the ethical and
professional issues in advising on corporate
reporting
Assess the relevance and importance of
ethical and professional issues in complying
with accounting standards.
Ethical requirements of corporate reporting and the
consequences of unethical behaviour
Appraise the potential ethical implications of
professional and managerial decisions in the
preparation of corporate reports
Assess the consequences of not upholding
ethical principles in the preparation of
corporate reports.
Social responsibility
Discuss the increased demand for
transparency in corporate reports, and the
emergence of non-financial reporting
standards
Discuss the progress towards a framework for
environmental and sustainability reporting
Section 02
The Financial Reporting
Structure
The applications, strengths and weaknesses of an
accounting framework
Evaluate the “balance sheet” and “fair
value” models adopted by standard setters
Discuss the use of an accounting framework
in underpinning the production of
accounting standards
Assess the success of such a framework in
introducing rigorous and consistent
accounting standards
Critical evaluation of principles and practices
Identify the relationship between accounting
theory and practice
Critically evaluate accounting principles and
practices used in corporate reporting
Legal requirements relating to the preparation of
single entity financial statements
Recognize and apply the laws, regulations,
accounting standards and other requirements to the
preparation of statutory financial statements of an
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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entity, including the circumstances where an entity is
required to prepare and present statutory financial
statements
Section 03
Reporting Financial
Performance of Entities
Performance reporting
Prepare reports relating to corporate
performance for external stakeholders
Discuss the issues relating to the recognition
of revenue
Evaluate proposed changes to reporting
financial performance
Non-current assets
Apply and discuss the timing of the
recognition of non-current assets and the
determination of their carrying amounts
including impairments and revaluations
Apply and discuss the treatment of non-
current assets held for sale
Apply and discuss the accounting treatment
of investment properties including
classification, recognition and measurement
issues
Apply and discuss the accounting treatment
of intangible assets including the criteria for
recognition and measurement subsequent to
acquisition and classification
Discuss and apply the key differences
between UK GAAP and IFRS in accounting
and noncurrent assets including revaluation,
impairment and investment property
Financial Instruments
Apply and discuss the recognition and
Decrecognition of financial assets and
financial liabilities
Apply and discuss the classification of
financial assets and financial liabilities and
their measurement
Apply and discuss the treatment of gains and
losses arising on financial assets and financial
liabilities
Apply and discuss the treatment of
impairments of financial assets
Account for derivative financial instruments,
and simple embedded derivatives
Outline the principles of hedge accounting
and account for fair value hedges and cash
flow hedges including hedge effectiveness.
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
76
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Leases
Apply and discuss the classification of leases
and accounting for leases by lessors and
lessees
Account for and discuss sale and leaseback
transactions
Discuss and apply the key differences
between UK GAAP and IFRS in accounting for
leases.
Segment Reporting
Determine the nature and extent of
reportable segments
Specify and discuss the nature of segment
information to be disclosed
Discuss and apply the key differences
between UK GAAP and IFRS in accounting for
segments.
Employee Benefits
Apply and discuss the accounting treatment
of
short term and long term benefits
Apply and discuss the accounting treatment
of
defined contribution and defined benefit
plans
Account for gains and losses on settlements
and curtailments
Account for the “Asset Ceiling” test and the
reporting of actuarial gains and losses
Discuss the key differences between UK
GAAP and IFRS in accounting for Employee
Benefits
Taxation
Apply and discuss the recognition and
measurement of deferred tax liabilities and
deferred tax assets
Determine the recognition of tax expense or
income and its inclusion in the financial
statements
Discuss and apply the key differences
between UK GAAP and IFRS in accounting for
taxation
Provisions, contingencies and events after the
reporting date
Apply and discuss the recognition,
Decrecognition and measurement of
provisions, contingent liabilities and
contingent assets including environmental
provisions
Calculate and discuss restructuring provisions
Apply and discuss the accounting for events
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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after the reporting date
Determine and report going concern issues
arising after the reporting date
Related parties
Determine the parties considered to be
related to an entity
Identify the implications of related party
relationships and the need for disclosure
Discuss and apply the key differences
between UK GAAP and IFRS in accounting for
related parties.
Share based payment
Apply and discuss the recognition and
measurement criteria for share-based
payment transactions
Account for modifications, cancellations and
settlements of share based payment
transactions
Reporting requirements of small and medium sized
entities (SMEs)
Outline the principal considerations in
developing a set of accounting standards for
SMEs
Discuss solutions to the problem of differential
financial reporting
Discuss the reasons why the IFRS for SME’s
does not address certain topics
Discuss the accounting treatments not
allowable under the IFRS for SME’s including
the revaluation model for certain assets
Discuss and apply the simplifications
introduced by the IFRS for SME’s including
accounting for goodwill and intangible
assets, financial instruments, defined benefit
schemes, exchange differences and
associates and joint ventures
Discuss the key differences in principle
between IFRS and UK GAAP
Section 04
Financial Statements of Groups
of Accounts
Group accounting including cash flow
statements
Apply the method of accounting for business
combinations including complex group
structures
Apply the principles in determining the cost
of a business combination
Apply the recognition and measurement
criteria for identifiable acquired assets and
liabilities and goodwill including step
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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acquisitions
Apply and discuss the criteria used to identify
a subsidiary and an associate
Determine and apply appropriate
procedures to be used in preparing group
financial statements
Identify and outline (using relevant legislation,
accounting standards and other applicable
regulation):
the circumstances in which a group is
required to prepare consolidated financial
statements
the circumstances when a group may claim
and exemption from the preparation of
consolidated financial statements
why directors may not wish to consolidate a
subsidiary and where this is permitted
Apply the equity method of accounting for
associates
Outline and apply the key definitions and
accounting methods which relate to interests
in joint arrangements
Prepare and discuss group cash flow
statements
Discuss and apply the key differences
between UK GAAP and IFRS in accounting for
business combinations
Continuing and discontinued interests
Prepare group financial statements where
activities have been discontinued, or have
been acquired or disposed of in the period
Apply and discuss the treatment of a
subsidiary which has been acquired
exclusively with a view to subsequent
disposal.
Changes in group structures
Discuss the reasons behind a group re
organisation
Evaluate and assess the principal terms of a
proposed group re organisation
Foreign transactions and entities
Outline and apply the translation of foreign
currency amounts and transactions into the
functional currency and the presentational
currency
Account for the consolidation of foreign
operations and their disposal
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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Section 05
Specialized Entities and
Specialized transactions
Financial reporting in specialized, not-for profit and
public sector entities
Entity schemes of arrangement and reconstructions
Identify when an entity may no longer be
viewed as a going concern or uncertainty
exists surrounding the going concern status
Identify and outline the circumstances in
which a scheme of arrangement or
reconstruction would be an appropriate
alternative to a company liquidation
Section 06
Implications of changes in
accounting regulation on
financial reporting
The effect of changes in accounting standards on
accounting systems
Apply and discuss the accounting implications of the
first time adoption of a body of new accounting
standards.[
Proposed changes to accounting standards
Identify issues and deficiencies which have led to a
proposed change to an accounting standard
Section 07
Current Reporting
Environmental and social reporting
Convergence between national and international
reporting standards
Current reporting issues
Section 08
Property, plant and equipment
Recognition of P, P & E in financial statements
Measurement of P, P & E.
Depreciation
Decrecognition
Section 09
Intangible assets
Recognition in statement of financial position
Initial measurement
Measurement subsequent to recognition
Decrecognition
Decrecognition of an intangible asset
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
80
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Section 10
Investment property
Definition of investment property
Recognition in statement of financial position
Measurement at recognition
Measurement after recognition
Section 11
Impairment of assets
Identifying an impaired asset
Impairment review procedures
Recognising an impairment loss
Reversal of an impairment loss
Impairment of goodwill
Section 12
Non-current assets held for sale
and discontinued operations
Assets held for sale
Discontinued operations
Section 13
Share-based payment
Introduction
Equity settled share-based payment
Cash settled share-based payment
Share-based payment
transactions with a cash alternative
Section 14
Provisions, contingent liabilities
and contingent assets
Introduction
Provisions
Contingent liabilities and contingent assets
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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Section 15
Consolidated statement of
comprehensive income &
Business combinations
Intra-group items
Non-controlling interests
Dividends
Subsidiary acquired during the reporting period
The acquisition method
Recognition and measurement of assets and liabilities
acquired
Measurement period
Subsequent measurement and accounting
Separate financial statements of a parent
Section 16
Changes in ownership
Acquisition of shares
- business combination achieved in stages
- purchase of additional equity shares after control is
attained
Disposal of shares in a subsidiary
- loss of control
- disposals not resulting in a loss of control
Section 17
Investments in associates and
Joint ventures
Definition of an associate
Accounting for investments in associates
Goodwill arising on the acquisition of shares in an
associate
Upstream and downstream transactions
Reporting periods and accounting policies
Losses of an associate
Types of joint venture
- jointly controlled operations
- jointly controlled assets
- jointly controlled entities
Section 18
Misc. Accounting Issues
Events after the reporting period
Leases
Key definitions and classification of leases
Accounting by lessees
Accounting by lessors
Revenue
Measurement of revenue
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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Section 19
Financial Instruments and
disclosures
Capital instruments, reduction of capital and
distributable profits
Definition of a financial instrument
Financial liabilities and equity instruments
Classification of financial instruments
Recognition and measurement of financial
instruments
Classification and measurement of financial assets
Financial liabilities
Adjusting financial statements
Criteria for a successful business
Stock exchange/investor ratios
Operating segments
Determining reportable segments
Disclosure requirements
Calculation of basic EPS
Changes in ordinary share capital when computing
basic EPS
Diluted EPS
Categories of revenue: sale of goods; rendering of
services; interest, royalties and dividends
Customer loyalty programmes
Accounting for government grants
Initial recognition of grants
Recognition as income
Accounting treatment of government grants
Repayment of government grants
The effects of changes in foreign exchange rates
Identifying an entity’s functional currency
Recording transactions in an entity’s functional
currency
Monetary and non-monetary items
Use of a presentation currency other than an entity’s
functional currency
Translation of a foreign operation
Borrowing costs
Borrowing costs incurred in respect of qualifying
assets
Other borrowing costs
Financial and Corporate Reporting
Level – III: Professional – I Code: PP-301
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Section 25
IAS
11, 12, 14, 17,18, 20, 21, 27, 29, 30, 33, 36, 38, 40
Rules for first time adoption of IFRS
Introduction to IFRS 1
Opening IFRS statement of financial position
Exceptions to the retrospective application of other
IFRSs
Recommended Study Text
Connolly / International Financial Accounting and
Reporting 3rd edition/ CAI 2011/ ISBN 9781907214646
Elliott and Elliott, Financial Accounting and Reporting,
2012 Prentice Hall (15th edition)ISBN 9780273760887
Cotter / Advanced Financial Reporting; A Complete
Guide to IFRS/ 2011/ ISBN 9781447915881
IFRS
IAS published by IASB
Corporate Law
Level – III: Professional – I Code: PP-302
84
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Aim
This subject aims
To ensure that students
understand the theory and
application of key aspects of
business and commercial law to
business organizations and
recognize issues that require the
advice of a legal professional. In
addition, they must comprehend,
apply and advise on the
regulatory and governance
requirements applicable to
business organizations.
To develop knowledge and skills in
the understanding of the general
legal framework, and of specific
legal areas relating to business,
recognizing the need to seek
further specialist legal advice
where necessary
Learning Objectives:
On successful completion of this subject,
students should be able to:
A). Interpret, discuss and apply aspects of the
law relating to the structuring of business
entities and certain of their commercial
relationships.
B). Discuss the appointment, rights and duties of
receivers, liquidators and examiners and
outline the effects of receiverships,
liquidations or examinerships on key
stakeholders including; shareholders,
directors’ employees and creditors.
C). Distinguish between the different types of
credit and security, their legal consequences
and the formalities applicable to these.
D). Advise on the effects of receiverships,
liquidations or examinerships on key
stakeholders including; shareholders,
directors, employees and creditors.
E). Advise on and lead best practice in
governance.
F). Outline and discuss the law of agency, and
distinguish between principal and agent and
their rights and duties.
G). Discuss and apply the main aspects of
employment law and be able to refer to and
interpret relevant sources.
H). Identify, if and when more specialist
knowledge is required and the source of such
expertise.
I). Recognize and compare types of capital
and the financing of companies
J). Describe and explain how companies are
managed, administered and regulated
K). Recognize the legal implications relating to
companies in difficulty or in crisis
Corporate Law
Level – III: Professional – I Code: PP-302
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Section 01
Essential elements of the legal
system
Court structure
Define law and distinguish types of law
Explain the structure and operation of the
courts and tribunals systems
Sources of law
Explain what is meant by case law and
precedent within the context of the hierarchy
of the courts
Explain legislation and evaluate delegated
legislation
Illustrate the rules and presumptions used by
the courts in interpreting statutes
Human rights
Identify the concept of human rights as
expressed in the Human Rights Act 1998
Explain the impact of human rights law on
statutory interpretation
Explain the impact of human rights law on
the common law
Section 02
The Law of obligations
Formation of contract
Analyze the nature of a simple contract
Explain the meaning of offer and distinguish it
from invitations to treat
Explain the meaning and consequence of
acceptance.
Explain the need for consideration
Analyze the doctrine of privities
Distinguish the presumptions relating to
intention to create legal relations
Content of contracts
Distinguish terms from mere representations
Define the various contractual terms
Explain the effect of exclusion clauses and
evaluate their control
Breach of contract and remedies
Explain the meaning and effect of breach of
contract
Explain the rules relating to the award of damages
Analyze the equitable remedies for breach of
contract
The law of torts
Explain the meaning of torts
Identify examples of torts including ‘passing
Corporate Law
Level – III: Professional – I Code: PP-302
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off’ and negligence
Explain the duty of care and its breach
Explain the meaning of causality and
remoteness of damage
Discuss defences to actions in negligence
Explain and analyze the duty of care of accountants
and auditors
Section 03
Law of Employment
Contract of employment
Distinguish between employees and the self-
employed.
Explain the nature of the contract of
employment and give examples of the main
duties placed on the parties to such a
contract
Dismissal and redundancy
Distinguish between wrongful and unfair
dismissal including constructive dismissal
Explain what is meant by redundancy
Discuss the remedies available to those who
have been subject to unfair dismissal or
redundancy
Contract of employment, contract of service and
contract for services.
• Formation of the contract.
• Terms of the contract.
• Rights of the employee.
• Duties and rights of the employer.
• Termination, unfair and wrongful dismissal,
redundancy.
• Maternity leave, Paternity leave, Adoptive leave,
Parental leave, Force majeure leave – rights and
entitlements
Section 04
Business Organizations &
Company formation
Define the role of the agent and give
examples of such relationships paying
particular regard to partners and company
directors
Explain how the agency relationship is
established
Define the authority of the agent.
Explain the potential liability of both principal
and agent
Demonstrate a knowledge of the legislation
governing the partnership, both unlimited
and limited
Corporate Law
Level – III: Professional – I Code: PP-302
87
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Discuss how partnerships are established
Explain the authority of partners in relation to
partnership activity.
Analyze the liability of various partners for
partnership debts
Explain the way in which partnerships can be
brought to an end and partners’ subsequent
rights and liabilities.
Limited Companies
Explain the role and duties of company promoters.
Explain the meaning of, and the rules relating to, pre-
incorporation contracts
Describe the procedure for registering companies,
both public and private
Describe the statutory books, records and returns that
companies must keep or make
Analyze the effect of a company’s constitutional
documents
Describe the contents of model articles of association
Explain how articles of association can be changed
Explain the controls over the names that companies
may or may not use
How a company is formed, types of company that
may be formed, memorandum of association, articles
of association, alteration for the Constitutional
Documents, the promoters and pre-incorporation
contracts.
Separate legal personality of the company, lifting the
veil of incorporation, the ultra vires rule, liability of a
company in respect to unauthorized or irregular
transactions in both tort and criminal law,
Section 05
Sources of Finance
Share capital
Examine the different meanings of capital
Explain allotment of shares and distinguish
between rights issue and bonus issue of
shares
Illustrate the difference between various
classes of shares
Explain the procedure for altering class rights.
Loan capital
Define companies’ borrowing powers
Explain the meaning of debenture
Distinguish loan capital from share capital
and explain the different rights held by
shareholders and debenture holders.
Explain the concept of a company charge
and distinguish between fixed and floating
Corporate Law
Level – III: Professional – I Code: PP-302
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charges
Describe the need and the procedure for
registering company charges
Capital maintenance and dividend law
Explain the doctrine of capital maintenance
and capital reduction
Explain the nature of treasury shares
Examine the effect of issuing shares at either
a discount, or at a premium
Explain the rules governing the distribution of
dividends in both private and public
companies
Section 06
Management, Administration
and Regulation of Companies
Explain the role of directors in the operation
of a company
Discuss the ways in which directors are
appointed, can lose their office or be subject
to a disqualification order.
Distinguish between types of directors, such
as executive/ non-executive directors or de
jure and de facto directors
Distinguish between the powers of the board
of directors, the managing director/chief
executive and individual directors to bind
their company
Explain the duties that directors owe to their
companies.
Demonstrate an understanding of the way in
which statute law has attempted to control
directors
Other company officers
Discuss the appointment procedure relating
to, and the duties and powers of, a company
secretary
Discuss the appointment procedure relating
to, and the duties, powers and rights of
company auditors and their subsequent
removal or resignation.
Company meetings and resolutions
Distinguish between types of meetings:
ordinary general meetings and annual
general meetings
Explain the procedure for calling such
meetings
Detail the procedure for conducting
company meetings.
Distinguish between types of resolutions:
ordinary, special, and written.
Corporate Law
Level – III: Professional – I Code: PP-302
89
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Section 07
Insolvency
Explain the meaning of and procedure involved in
voluntary liquidation
Explain the meaning of, the grounds for, and the
procedure involved in compulsory liquidation.
Explain the order in which company debts will be
paid off
Section 08
Examinership, Receivership
and Liquidation
Charges and crystallisation of
charges
Protection of investors and creditors.
Appointment, rights and duties and powers of an
Examiner.
Examinership process, report, schemes of
arrangement.
Appointment, rights, duties and powers of a Receiver.
Appointment, rights and duties of a Liquidator
Types of winding up, compulsory winding up,
voluntary winding up - the distinction between
members and creditors voluntary liquidations.
Effects of examinerships, receiverships or liquidations
on shareholders, directors and employees - as well as
potential liability.
Order of payment of debts and charges on
liquidation.
Accounts of an Examiner, Receiver and Liquidator
Recommended Study Text
Keane / Company Law, 4th revised edition / Tottel
2007 / ISBN 9781845922986
Courtney / The Law of Private Companies, 2nd edition
/ Tottel 2002 / ISBN/ISSN 1854752650
Cahill / Company Law and Enforcement / Tottel 2008
/ ISBN 9781845921057.
White / Commercial Law / Wiley and Sons 2ed
2012 / ISBN 9781858006321
Financial Strategy
Level – III: Professional – I Code: PP-303
90
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Aim
The aim of this subject is to
develop students’ critical
understanding of the key
responsibilities and financing
decisions facing today’s strategic
financial manager. Students
should be able to develop
detailed business plans, to assess
potential financial risks, and to
advise on suitable risk
management strategies for
entrepreneurial activities and
established organizations.
Learning Objectives:
On successful completion of this subject, students
should be able to:
A). Evaluate the financial objectives of an
organisation, explain how they are
determined and interrelate with the non-
financial objectives and stakeholder interests.
B). Discuss the legal regulations, and the
professional and ethical considerations
facing financial managers.
C). Value shares / businesses in the context of a
proposed merger, acquisition or
management buyout.
D). Analyze reasons for and advise on actions to
prevent corporate failure.
E). Evaluate and advise as to the optimum
capital gearing structure, term structure and
dividend policy for an organisation.
F). Advise as to appropriate exchange risk and
interest rate risk management strategies, and
discuss the use of derivatives in long-term risk
management.
G). Discuss the relevance of portfolio theory and
the Capital Asset Pricing Model to financial
managers.
H). Prepare a business plan for an organisation
given prescribed information.
I). Evaluate the financial management of an
organisation over a period of time and/or
relative to competitors / industry norms.
Financial Strategy
Level – III: Professional – I Code: PP-303
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Section 01
The strategy Process
Levels of strategy and planning
Setting mission, aims, goals & objectives
Matching strategy and structure
The competitive environment
Ethical, political & social considerations
Strategic Management and Operational
Management
Perspectives on Strategy
Deliberate and emergent strategy
The Marketing Dimension: – Marketing management
concepts– Analyzing marketing opportunities-Market
segmentation– The marketing mix– Strategic planning
and marketing management– Marketplace models
Section 02
The Strategic Position
Environmental Analysis: – The macro environment–
Industry/Sector analysis– Market analysis–
Opportunities and threats
Assessing Strategic Capability: – Critical success
factors– Assessing resources– Identifying core
competencies– Benchmarking– Assessing strengths
and weaknesses
Measuring Stakeholder Expectations: – Corporate
governance. – Stakeholder analysis. – Identifying
stakeholder expectations – Business ethics– Cultural
considerations
Section 03
Strategy Implementation
Structure and Processes:– Organisation structure–
Planning and control systems(incl. ERP, Balanced
Scorecard)– Market mechanisms– Social/cultural
process.
Managing Key Enablers:– People– H.R. management–
Organizational behaviour– Leadership: – Culture
change– Knowledge creation– Information and
Technology– Knowledge management
Managing the Change Process– Change
management– Analyzing the change situation– The
nature of change– Changing organizational culture. –
Organizational communications.
Financial Strategy
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Section 04
Financial Environment
Aims and objectives of profit seeking and non-profit
seeking organizations
the inter-relationship between financial management
management accounting and financial accounting
Interests and influence of key stakeholder groups
Ethics and corporate governance issues in
Managerial Finance
Section 05
Sources of Finance
Equity / debt financing and associated risks,
Short, medium and long-term finance,
The nature and importance of internally generated
funds,
Determinants of capital structure
The nature and role of capital markets, - types of
share capital including: rights issues, convertibles,
warrants, etc,.
Sources of government finance, including: grants,
national aid schemes, tax incentives etc., Venture
capital financing; nature, benefits and risks
Section 06
Working Capital Management
Effective working capital management strategies
and corporate survival,
Cash budgets/cash flow forecasts,
The operating cycle,
Debtor and creditor management techniques
including: credit evaluation, terms of credit,
settlement discounts, debt collection techniques,
factoring and invoice discounting
Inventory management techniques, including EOQ
and JIT, Overtrading - symptoms, causes and
remedies
Section 07
Business Valuations
Methods of valuing a business, including:
– Asset bases.
– Earnings bases.
– Discounted cash flow.
– Dividend yield.
– Dividend growth.
Financial Strategy
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Section 08
Cost of Capital
Cost of equity, dividend growth and Capital Asset
Pricing Model (CAPM)
Cost of redeemable and irredeemable debt,
WACC – Calculation, application and interpretation,
Systematic and unsystematic risk,
Portfolio diversification,
Portfolio theory and its application in practical
financial management
Dividend decisions
Calculation and interpretation the risk and return of a
two-asset portfolio
Section 09
Formulation of Financial
Strategy
The financial and non-financial objectives of different
organizations.
The three key decisions of financial management
and their links.
Benefits of matching characteristics of investment
and financing in the longer term, and in short-term
hedging strategies.
Considerations in the formulation of dividend policy
and dividend decisions, including meeting the cash
needs of the business.
External constraints on financial
Developing financial strategy in the context of
regulatory requirements and international operations.
The financial objectives of an organisation and
economic forces affecting its financial plans
Assessing attainment of financial objectives.
Use of financial analysis in the external assessment
Analysis of sensitivity to changes in expected values in
the above models and forecasts
The lender’s assessment of creditworthiness
Section 10
Strategic Financial Decisions
Identifying financing requirements (both in respect of
domestic and international operations) and the
impacts of different types of finance on models and
forecasts of performance and position.
Working capital management strategies.
Types and features of domestic and international
long-term finance: share capital (ordinary and
preference shares, warrants), long-term debt (bank
borrowing and forms of securitised debt, e.g.
convertibles) and finance leases, and methods of
Financial Strategy
Level – III: Professional – I Code: PP-303
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issuing securities.
The operation of stock exchanges (e.g. how share
prices are determined, what causes share prices to
rise or fall, and the efficient market hypothesis).
The impact of changing capital structure on the
market value of a company.
The capital asset pricing model (CAPM): calculation
of the cost of equity using the dividend growth model
(knowledge of methods of calculating and
estimating dividend growth will be expected), the
ability to gear and un-gear betas and comparison to
the arbitrage pricing model.
The ideas of diversifiable risk (unsystematic risk) and
systematic risk.
The cost of redeemable and irredeemable debt,
including the tax shield on debt.
The weighted average cost of capital (WACC):
calculation, interpretation and uses.
The lease or buy decision (with both operating and
finance leases)
Criteria for selecting sources of finance, including
finance for international investments.
The effect of financing decisions on balance sheet
structure and on ratios of interest to investors and
other financiers.
Section 11
Corporate Failure
The symptoms and causes of corporate failure.
Avoidance of corporate failure
The nature, scope and elements of working capital
and the importance of effective working capital
management to corporate survival.
Overtrading- symptoms, causes and remedies
Section 12
Investment Decisions and
Project Control
Identification of a project’s relevant costs (e.g.
infrastructure, marketing and human resource
development needs), benefits and risks
Linking investments with customer requirements and
product/service design
Linking investment in IS/IT with strategic, operational
and control needs (particularly where risks and
benefits are difficult to quantify).
Calculation of a project’s net present value and
internal rate of return, including techniques for
dealing with cash flows denominated in a foreign
currency and use of the weighted average cost of
capital.
The modified internal rate of return based on a
Financial Strategy
Level – III: Professional – I Code: PP-303
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project’s “terminal value” (reflecting an assumed
reinvestment rate).
The effects of taxation (including foreign direct and
withholding taxes), potential changes in economic
factors (inflation, interest and exchange rates) and
potential restrictions on remittances on these
calculations.
Recognizing risk using the certainty equivalent
method (when given a risk free rate and certainty
equivalent values).
Adjusted present value
Valuation bases for assets (e.g. historic cost,
replacement cost and realisable value), earnings
(e.g. price/earnings multiples and earnings yield) and
cash flows (e.g. discounted cash flow, dividend yield
and the dividend growth model).
The strengths and weaknesses of each valuation
method and when each is most suitable, e.g. by
reference to type of investee organisation (service,
capital intensive etc).
Forms of intangible asset (including intellectual
property rights, brands etc). and methods of
valuation.
Application of the efficient market hypothesis to
business valuations
Selection of an appropriate cost of capital for use in
valuation
Capital investment real options (i.e. to make follow-
on investment, abandon or wait)
Single period capital rationing for divisible and non-
divisible projects.
Recognition of the interests of different stakeholder
groups in mergers, acquisitions and company
valuations
The reasons for merger or acquisitions
Forms of consideration and terms for acquisitions (e.g.
cash, shares, convertibles and earn-out
arrangements), and their financial effects.
The post-merger or post-acquisition integration
process (e.g. management transfer and merger of
systems)
The function/role of management buy-outs and
venture capitalists
Types of exit strategy and their implications.
The reasons for (e.g. strategic change, opportunity
cost of investment) and mechanisms of demerger or
divestment
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Project implementation and control in the
conceptual stage, the development stage, the
construction stage and initial
manufacturing/operating stage
Post completion audit of investment projects
Section 13
Financial Analysis and Business
Planning
Preparation of long-term business plans from
prescribed information.
Appraise capital investment options using NPV, IRR
and Payback criteria.
Evaluation of a business plan from the perspective of
an equity investor or provider of debt funding.
Assessment of an organization’s current financial
position
Section 14
Financial Risk Management
The key financial risks facing an Organisation
Currency risk - transaction, translation and economic
exposure.
The workings of the foreign exchange markets.
The relationship between foreign exchange rates and
interest rates in different countries
Forward Exchange Contract and Money Market
hedges
Other forms of exchange rate risk management
including, netting, leading and lagging, currency
swaps, currency futures and currency options
Exchange risk management Strategies
Interest rate options, swaps, forwards, futures and
swap options.
Interest rate risk management strategy
Recommended Study Text
Corporate Financial Strategy y Ruth Bender
Strategic Management – Text and Cases by Dess,
Eisner and Lumpkin
Financial Management & Policy by James
C. Van Horne
Exploring Corporate Strategy / Johnson G., Scholes K
Arnold / Corporate Financial Management 5th
Edition/ Pearson 2012 / ISBN 9780273758839
Corporate Governance
Level – III: Professional – I Code: FP-503
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Aim
This subject aims to ensure that
students must comprehend,
apply and advise on the
regulatory and governance
requirements applicable to
business organizations.
To apply relevant knowledge,
skills and exercise professional
judgment in carrying out the
role of the accountant relating
to governance, internal
control, compliance and the
management of risk within an
organisation, in the context of
an overall ethical framework
Learning Objectives:
A). On successful completion of this paper,
candidates
B). should be able to:
C). Define governance and explain its function in
the effective management and control of
organizations and of the resources for which
they are accountable
D). Evaluate the Professional Accountant’s role in
internal control, review and compliance
E). Explain the role of the accountant in
identifying and assessing risk
F). Explain and evaluate the role of the
accountant in controlling and mitigating risk
G). Demonstrate the application of professional
values and judgment through an ethical
framework that is in the best interests of
society and the profession, in compliance
with relevant professional codes, laws and
regulations
H). Advise on the effects of receiverships,
liquidations or examiner ships on key
stakeholders including; shareholders,
directors, employees and creditors
I). Advise on and lead best practice in
governance
J). Discuss and apply the main aspects of
employment law and be able to refer to and
interpret relevant sources
Corporate Governance
Level – III: Professional – I Code: FP-503
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Section 01
The scope of governance
Define and explain the meaning of
corporate governance
Explain, and analyze the issues raised by the
development of the joint stock company as
the dominant form of business organisation
and the separation of ownership and control
over business activity
Analyze the purposes and objectives of
corporate governance
Explain, and apply in context of corporate
governance, the key underpinning concepts
of
i) fairness
ii) openness/transparency
iii) independence
iv) probity/honesty
v) responsibility
vi) accountability
vii) reputation
viii)judgment
ix) integrity
Explain and assess the major areas of
organizational life affected by issues in
corporate governance
Compare, and distinguish between public,
private and non-governmental organizations
(NGO) sectors with regard to the issues raised
by, and scope of, governance
Explain and evaluate the roles, interests and
claims of, the internal parties involved in
corporate governance
Explain and evaluate the roles, interests and
claims of, the external parties involved in
corporate governance
Analyze and discuss the role and influence of
institutional investors in corporate
governance systems and structures, for
example the roles and influences of pension
funds, insurance companies and mutual
funds
Corporate Governance
Level – III: Professional – I Code: FP-503
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Section 02
Agency relationships and
theories
Define and explore agency theory
Define and explain the key concepts in agency
theory
i) Agents
ii) Principals
iii) Agency
iv) Agency costs
v) Accountability
vi) Fiduciary responsibilities
vii) Stakeholders
Explain and explore the nature of the principal agent
relationship in the context of corporate governance
Analyze and critically evaluate the nature of
agency accountability in agency relationships
Explain and analyze the following other
theories used to explain aspects of the agency
relationship
i) Transaction costs theory
ii) Stakeholder theory
Section 03
The board of directors
Explain and evaluate the roles and responsibilities of
boards of directors
Describe, distinguish between and evaluate the
cases for and against, unitary and two-tier board
structures
Describe the characteristics, board composition and
types of, directors (including defining executive and
non-executive directors
Describe and assess the purposes, roles and
responsibilities of NEDs
Describe and analyze the general principles of legal
and regulatory frameworks within which directors
operate on corporate boards
i) legal rights and responsibilities,
ii) time-limited appointments
iii) retirement by rotation,
iv) service contracts,
v) removal, vi) disqualification
vii) conflict and disclosure of interests
viii)insider dealing/trading
Define, explore and compare the roles of the chief
executive officer and company chairman
Describe and assess the importance and execution
Corporate Governance
Level – III: Professional – I Code: FP-503
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of, induction and continuing professional
development of directors on boards of directors
Explain and analyze the frameworks for assessing the
performance of boards and individual directors
(including NEDs) on boards
Explain the meanings of ‘diversity’ and critically
evaluate issues of diversity on boards of directors
Section 04
Board committees
Explain and assess the importance, roles and
accountabilities of, board committees in corporate
governance
Explain and evaluate the role and purpose of the
following committees in effective corporate
governance
i) Remuneration committees
ii) Nominations committees
iii) Risk committees.
iv) Audit committees
Section 05
Directors’ remuneration
Describe and assess the general principles of
remuneration.
i) purposes
ii) components
iii) links to strategy
iv) links to labour market conditions
Explain and assess the effect of various components
of remuneration packages on directors’ behaviour
i) basic salary
ii) performance related
iii) shares and share options
iv) loyalty bonuses
v) benefits in kind
vi) pension benefits
Explain and analyze the legal, ethical, competitive
and regulatory issues associated with directors’
remuneration
Section 06
Different approaches to
corporate governance
Describe and compare the essentials of ‘rules’
‘principles’ based approaches to corporate
governance. Includes discussion of ‘comply or
explain
Describe and analyze the different models of business
ownership that influence different governance
regimes (e.g. family firms versus joint stock company-
based models)
Corporate Governance
Level – III: Professional – I Code: FP-503
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Describe and critically evaluate the reasons behind
the development and use of codes of practice in
corporate governance (acknowledging national
differences and convergence)
Explain and briefly explore the development of
corporate governance codes in principles-based
jurisdictions.
i) impetus and background
ii) major corporate governance codes
iii) effects of
Explain and explore the Sarbanes-Oxley Act
(2002) as an example of a rules-based
approach to corporate governance
OECD
Section 07
Corporate governance and
corporate social responsibility
Explain and explore social responsibility in the context
of corporate governance
Discuss and critically assess the concept of
stakeholders and stake holding in organizations and
how this can affect strategy and corporate
governance
Analyze and evaluate issues of ‘ownership,’
‘property’ and the responsibilities of ownership in the
context of shareholding
Explain the concept of the organisation as a
corporate citizen of society with rights and
responsibilities
Section 08
Governance: reporting and
disclosure
Explain and assess the general principles of disclosure
and communication with shareholders
Explain and analyze ‘best practice’ corporate
governance disclosure requirements
Define and distinguish between mandatory and
voluntary disclosure of corporate information in the
normal reporting cycle
Explain and explore the nature of, and reasons and
motivations for, voluntary disclosure in a principles-
Corporate Governance
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based reporting environment
Explain and analyze the purposes of the annual
general meeting and extraordinary general meetings
for information exchange between board and
shareholders
Proxy voting
Section 09
Internal Control and Review
Define and explain internal management control
Explain and explore the importance of internal
control and risk management in corporate
governance
Define and distinguish between mandatory and
voluntary disclosure of corporate information in the
normal reporting cycle
Describe the objectives of internal control
systems
Identify and assess the importance of the elements or
components of internal control systems.
Explain, and discuss the importance of, auditor
independence in all client-auditor situations
Explain, and assess the nature and sources of risks to,
auditor independence. Assess the hazard of auditor
capture
Explain and evaluate the importance of compliance
and the role of the internal audit function in internal
control
Describe and analyze the work of the internal audit
committee in overseeing the internal audit function
Section 10
The Theory and Practice of
Corporate Governance
The Concept of Corporation
Corporate Governance Mechanism
CG Systems
What is Good CG
Obligation to society at large
Obligation to Investors
Obligation to Employees,
Obligation to Customers
Managerial Obligation
Corporate Governance
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Section 11
Corporate Governance and
Other Stakeholders
CG and Employees
Customers
Institutional investors
Creditors
Community
Government
Section 12
Business Ethics and Corporate
Governance
Importance and need of Business Ethics
Roots of Unethical Behaviour
Some Unethical issues
CG Issues,
How Ethics can make CG more meaningful?
Section 12
Corporate Governance in
Developing and Transition
Economies
Problems faced by developing and transitional
economies
CG Models
CG Challenges in Developing economies
Section 13
The Corporation in a Global
Society
The emergence of CG issues in UK
Efforts to initiate CG in the country
Pioneers in Good Governance Practices
The future of CG in UK
Corporate Governance
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Recommended Study Text
Keane / Company Law, 4th revised edition / Tottel
2007 / ISBN 9781845922986.
Governance Risk and Ethics / BPP Manual ACCA P1 /
ISBN 9781445377674
Corporate Governance by A C Fernando
Advanced Taxation
Level – IV: Professional – II Code: PP-402
105
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Aim
To apply relevant knowledge -
skills and exercise professional
judgment in providing relevant
information and advice to
individuals and businesses on
the impact of the major taxes
on financial decisions and
situations.
The aim of this subject is to ensure
that students understand and can
apply the principles and practice
of advanced taxation, and are
able to identify and resolve
practical taxation problems.
Students are expected to interpret
and apply relevant case law and
to advise on the most tax efficient
structures.
Learning Objectives:
On successful completion of this subject, students
should be able to:
Apply the computational rules for Income Tax
in the preparation of Income Tax returns and
advise on appropriate tax planning
measures, including the use of available
reliefs and allowances.
Apply the computational rules for
Corporation Tax in the preparation of
Corporation Tax returns and advise on
appropriate tax planning measures including
the use of available reliefs.
Apply the computational rules for Capital
Gains Tax in the preparation of Capital Gains
Tax returns and advice on appropriate tax
planning measures including the use of
available reliefs.
Explain and advise on the requirements of a
Revenue Audit so as to enable client /
employer compliance.
Explain the operation of the VAT system,
apply the computational rules for VAT and
provide appropriate advice.
Explain the operation of Capital Acquisition
Tax, apply the computational rules for
Capital Acquisition Tax and provide
appropriate advice.
Explain the principles of Stamp Duties and
calculate any duty tax payable having
optimized the use of any available reliefs
Identify and evaluate the impact of relevant
taxes on various situations and courses of
action, including the interaction of taxes
Provide advice on minimizing and/or
deferring tax liabilities by the use of standard
tax planning measures
Communicate with clients, HM Revenue and
Customs and other professionals
Advanced Taxation
Level – IV: Professional – II Code: PP-402
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Section 01
Knowledge and understanding
of the UK tax system
Income and income tax liabilities in situations
involving further overseas aspects and in relation to
trusts, and the application of exemptions and reliefs
Residence and domicile.
Tax Based Incentives.
Withholding Taxes.
Charges.
Exemptions.
Anti-Avoidance.
Employment and Investment Incentive
Scheme, Film Relief and Seed Capital Relief.
Employee incentive schemes including profit
sharing schemes,
Special Assignee relief programme
Foreign Earnings deduction
The scope of income tax
Income from employment
Income from self employment
Property and investment income
The use of exemptions and reliefs in deferring
and minimizing income tax
liabilities
Corporation tax liabilities in situations involving further
overseas and group aspects and in relation to special
types of company, and the application of
exemptions and reliefs.
Adjustments to the accounting profits for tax
purposes, claiming capital allowances, and the
impact of changes to accounting periods
• Close companies, including definitions, meaning of
participator and effect of close company status.
Distributions, including meaning of distribution, classes
of distribution and their calculation and dividend
withholding tax.
• Groups, including annual payments and losses for
Groups / Consortia.
• Corporation Tax Reliefs, including tax incentives,
R&D Tax Credits, Holding Company Regime.
• Company Residence, Double Taxation Relief, and
treatment of branches.
• Exemption for start-up companies..
Inheritance tax
Advanced Taxation
Level – IV: Professional – II Code: PP-402
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Section 02
Capital acquisition Tax
Chargeable gains and capital gains tax liabilities in
situations involving further overseas aspects and in
relation to closely related persons and trusts, and the
application of additional exemptions and reliefs.
• Principles of CAT including territorial scope.
• General exemptions including significant buildings
and works of art.
• Agricultural Relief.
• Business Property Relief.
• The use and taxing of Discretionary Trusts.
• Anti-avoidance.
Section 03
The importance of taxation to
personal and corporate
financial management
The principles underlying personal financial
management
How an individual’s personal financial objectives may
differ depending on their circumstances and
expectations
The common forms of personal finance and
investment products in a given set of circumstances,
including ethical considerations.
How a business’ financial objectives may differ
depending on its circumstances and the business
environment
How taxation can affect the financial decisions made
by businesses and by individuals.
Other considerations, personal and commercial,
which might affect a financial decision
Section 04
The impact of relevant taxes
on various situations and
courses of action
Taxes applicable to a given situation or course of
action and their impact
Alternative ways of achieving personal or business
outcomes may lead to different tax consequences
Tax advantages and/or disadvantages of alternative
courses of action
Statutory obligations imposed in a given situation,
including any time limits for action and the
implications of non-compliance
Advanced Taxation
Level – IV: Professional – II Code: PP-402
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Section 05
Minimizing and/or deferring tax
liabilities by the use of
standard tax planning
measures
Types of investment and other expenditure that will
result in a reduction in tax liabilities for an individual
and/or a business.
Legitimate tax planning measures, by which the tax
liabilities arising from a particular situation or course of
action can be mitigated.
The appropriateness of such investment, expenditure
or measures, given a particular taxpayer’s
circumstances or stated objectives
The mitigation of tax in the manner recommended,
by reference to numerical analysis and/or reasoned
argument
Ethical and professional issues arising from the giving
of tax planning advice
Current issues in taxation
Section 06
Communicating with clients,
HM Revenue and Customs and
other professionals
Communication of advice, recommendations and
information in the required format
Presentation of written information, in language
appropriate to the purpose of the communication
and the intended recipient
Conclusions reached with relevant supporting
computations
Assumptions made or limitations in the analysis
provided, together with any inadequacies in the
information available and/or additional information
required providing a fuller analysis.
Other non-tax factors that should be considered.
Section 07
Capital Gain Tax
Computation of Capital Gains Tax liabilities for both
individuals and companies.
• Share Valuations
• The scope of Capital Gains Tax Retirement Relief.
• Transfer of business to company.
• Development land.
• Wasting Assets.
• Interaction with CAT.
• Acquisition by a company of its own shares.
• Principal Private Residence Relief.
• Paper for paper relief.
• Group Transfers.
• Reconstruction relief.
• Clearance Certificates/Withholding tax.
• Anti-avoidance.
Advanced Taxation
Level – IV: Professional – II Code: PP-402
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Section 0
VAT
General principles of VAT.
Supplies of goods.
Supplies of services.
Exemptions.
Amount on which tax is chargeable.
VAT rates, self supplies.
VAT on property.
EU VAT legislation/regulations.
International Transactions.
• Anti-avoidance.
Reading Material
Advanced Audit and Assurance (INT): Key Notes Published
by Get Through Guides Ltd.
Audit & Assurance, Association of Certified Chartered
Accountant, Published by Kaplan.
Audit & Assurance (UK) : Study Text, Published by BPP
Learning Media.
Forensic Accounting and Fraud Investigation for non-
experts, by H Silverstone and M Sheetz, 2nd edition,
Published by Wiley, 2007.
Practical Auditing by Spice & Pegier, H.F.L Publishing Ltd.
Auditing by Culey and Baner South Wastern Publishing co.
Principles of Auditing by Depaula , Isaac Pitman & Sons Ltd
International IASC & Auditing Guideline by IASC IFAC &CLA
Notification, ASC.IFAC. CLA
EDP Auditing conceptual Foundation & Practice by Ron
Weber, Mograw Book co.
IT Audit & Control
Level – IV: Professional – II Code: PP-401
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Aim
This course is designed to
ensure that students have
acquired the competence to
provide comprehensive audit
and business assurance
services, by testing their ability
to integrate and apply their
knowledge of auditing to
realistic problems.
Learning Objectives:
Students will be expected to have the
knowledge of the International Standards on
Auditing and Related Services, the
International Auditing Practice Statements.
Students will be expected to display the
ability to document the accounting and
internal control systems of an enterprise and
prepare simple flow charts thereon. Students
will also be expected to possess knowledge
of the implications on the audit. Students will
be expected to draft audit reports,
qualifications in audit reports, management
letters, internal control memoranda,
representation letters, reports on case studies
and any other types of letters or reports.
IT Audit & Control
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Section 01
Database and File Organization
The file organisation approach
The database management systems (DBMS
(DBMS) vs. file organisation methods
Types of databases
Database purchase issues
Database design & maintenance issues
Database design principles
Section 02
IS Development
The System Development Life Cycle-
Alternatives to SDLC e.g. Prototyping, RADE- System
development and management considerations-
The impact of building new systems on organizational change
Developing information systems that support an
organization’s business plan
The challenges of building information systems and
management solutions
Section 03
A Foundation for IT Audit and Control
IT environment
Why are Controls and Audit Important
IT Today and Tomorrow
Information Reliability
Integrity and Validity Importance
Control and Audit
A Global Concern
E-Commerce and EFT
Legal Issues Impacting IT
Privacy on the Info Superhighway
Security Privacy and Audit
Section 04
Audit and Review: Its Role in IT
Audit Standards
Importance of Audit Independence
GAAP
GAAS
IT Auditing
What is IT
IT Audit & Control
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Need for the IT Audit Function
Auditors must have Independence
Auditor: Knowledge, skills and Abilities
Role of IT Auditor
IT Auditor as a Counselor
IT Auditor as Investigator
Section 05
Audit Process in an IT
Environment
Audit Universe
Risk Assessment;
Audit Plan
Developing an Audit Schedule
Audit Budget
Audit Process
Design Audit Procedures
Fieldwork and Implementing Audit Methodology
Validation of Work Performed
Substantive Testing
Documenting results
Communication Strategy
Section 06
Auditing IT using CAAT
Auditor Productivity Tools
Using CAAT in the Audit Process
Flowcharting Techniques
Flowcharting as an Analytical Tool
CAAT for Operational reviews
CAAT for Operational Reviews
Webmetrics
Web metrics as an Audit Tool
Computer Forensics
Section 06
Control Frameworks
Risks and exposures in computer-based information
systems
IT Control Frameworks:
COBIT
ITCG
IT Audit & Control
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SysTrust
WebTrust
Section 07
Control Objectives
Effectiveness
efficiency
economy of operation
Reliability of financial reporting
Effectiveness of control
IT asset safeguarding
Compliance with applicable laws and regulations
System reliability
Data integrity
Section 08
Layer of Control & Control
environment
Societal Organizational environment Technology
infrastructure Software Business process
External regulatory controls
Board/audit committee governance;
Management philosophy and operating style;
Plans/structure of organization;
Method to communicate the assignment of authority and responsibility;
Management control methods
Section 09
Risk Assessment
Economic, technical, operational behavioral
Main reason for failure of computer Projects
Error, fraud , vandalism/abuse, business interruption,
competitive disadvantage, excessive cost, deficient
revenues, statutory sanctions, social costs, etc.;
Quantitative / qualitative,
Monetary, non-monetary;
Balancing costs of controls vs. costs of unmitigated
risks
IT Audit & Control
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Section 10
IT Project Management
Organizing Projects;
Project Planning
Project Management Body of Knowledge
Auditor’s Role in Project management Process;
Importance of Project Planning and Control in SDLC
Section 11
Software Development and
Implementation
Approaches to Software development
SW Development Process
End-User Development
System Implementation Process
User Acceptance Testing
Auditor’s Role in the Development Process
SDLC
Section 12
Application controls and
Maintenance
Application Risks
End-User Computing Application Risks
EDI Application Risks;
Application Controls
ASLC
Section 13
Change Management
Change Control;
Vulnerabilities in SW Development and Change Control
IT Change Management
Change Management System
Controls Over changes
Emergency Change Process
Organizational Change Management
Audit Involvement
IT Audit & Control
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Section 14
Information Asset Protection
Information Security Management;
Logical Access Controls
Network Security Controls
Environmental Controls
Physical Security Controls
Auditing Asset Protection
Section 15
Virtual Environment
IT Operation Issues in Network Installation
Types of WANs
Elements of WANS
Tools of Network Monitoring
Feature of Intranets and other networks
Section 16
Virtual Security
Interconnected Systems and E-Commerce
Exploiting the TCP/IP Holes
Recommendation to IT
Auditors; Intranet/ Extranet Security
Wireless Technology
Recommended Study Text
Management Information Systems by Laudon and
Laudon,
A Complete book on Information Technology by Dr. Rajesh Trehan
IT Control and Audit by Sandra Senft, Frederick
Gallegos
Information Systems: The Foundation of E-Business by
Steven Alter
IFAC Guidelines on IT
Advanced Accounting
Level – IV: Professional – II Code: PP-403
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Aim
The aim of this subject is
To ensure that students
apply the appropriate
judgment and
technical ability in the
preparation and
interpretation of
financial statements for
complex business entities.
To prepare the students
to appreciate
prevailing financial
regulatory environment
and to apply the
knowledge gained to
practical situations for
arriving at pragmatic solutions
To focus on preparing
analyzing financial
statements and
developing reports
thereon.
To use knowledge and
understanding of more
financial accounting for
prep and interpret
financial statements in
context of practice.
Learning Objectives:
On successful completion of this subject,
students should be able to:
A). Prepare the financial statements of
companies, groups and associated
undertakings, including overseas
B). subsidiary undertakings, in accordance with
International Financial Reporting Standards
(IFRS), company law and UK Law
These include:
– Statements of Comprehensive Income, Statements
of Financial Position, Statements of Changes in Equity,
and – Cash flow Statements.
C). Apply and explain the acquisition method of accounting and related disclosure
requirements in financial statements and
notes.
D). Interpret and apply international financial
reporting standards and interpretations
adopted by the IASB, selecting the
appropriate accounting treatment for
transactions and events.
E). Analyze and evaluate financial statements
F). Prepare Advanced Partnership Accounts
and amalgamation
G). Valuing business
H). Prepare Royalty, Insurance, and Investment
accounts
I). Calculate Goodwill purchased or not
J). How firms are amalgamated
K). How branches calculate profit/loss
Advanced Accounting
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Section 01
Legislation & Preparation of
Financial Statements
Company Law relating to the preparation of financial statements
European Communities (Companies Group
Accounts)
Regulations 1992
Statutory financial statements for incorporated
entities,
Consolidated financial statements
Section 02
Analysis , Evaluation and
Interpretation of Financial
Statements
Ratio analysis
Critical appraisal of financial statements
Economic events
Business issues
Accounting choices
Ethical issues
Industry analysis
Non-financial performance measures
Advanced earnings measures
Limitations of ratios and financial statement analysis
Interpretation of financial statements and
preparation of reports thereon
cash flow analysis
Accounting for investments in subsidiaries and associated undertakings
Financial reporting on interests in joint venture
Interim financial reporting
Reporting on discontinued operations
Preparation of statutory and director report
Needs of various users of financial statements and its
importance
Techniques for analysis
Earnings per share (EPS)
Advanced Accounting
Level – IV: Professional – II Code: PP-403
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Section 03
Accounting for Technical
Statements
Accounting for goods sold subject to reservation of title
Accountants’ reports on profit forecasts
Accounting for the redemption and purchase of own
shares by companies in the Uk and International
Related Party Disclosures
Reporting to third parties
Section 04
Partnership Accounts
Dissolution of partnership firms including piecemeal
distribution of assets
Amalgamation of partnership firms
Conversion into a company and Sale to a company
Section 05
Company Accounts
Accounting for employee stock option plan
Buy back of securities
Equity shares with differential rights
Underwriting of shares and debentures
Redemption of debentures
Advanced problems for business acquisition
Amalgamation and reconstruction
Accounting involved in liquidation of companies
Statement of Affairs (including deficiency/surplus
accounts) and Liquidator’s statement of account of
the winding up
Section 06
Performance management
systems, measurements and control
External considerations and behavioral
aspects
Performance management information
systems
Sources of management information/Management
reports
Performance analysis in not-for-profit
organizations and the public sector
Advanced Accounting
Level – IV: Professional – II Code: PP-403
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Section 07
Business and securities
valuation
Valuation techniques
company valuation: general principles
Valuing acquisitions
Valuing debt
Firms with product options
Unquoted companies
Other types of organizations
Section 08
Accountability Creative
accounting
Corporate governance
Ethics
Whistle-blowing
Corporate social reporting
Environmental accounting
Section 09
Accounting policies,
accounting estimates and errors
Accounting policies
Factors that influence management’s choice of
accounting policies
Changes in accounting estimates
Errors
Section 10
Construction contracts
Definition of a construction contract
Accounting for construction contracts
Presentation in financial statements
Section 11
Departmental Accounts
Adv of dept accounting
Methods of Dept Accounts
Allocation of departmental expenses
Technique of dept accounts
Cost based Transfer price
Market based transfer price
Dual Pricing
Advanced Accounting
Level – IV: Professional – II Code: PP-403
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Section 12
Branch Accounting
Branch Vs Dept Accounts
Types of Branches
Dependent branches
Invoice price
Final Accounts System
Independent Branch
Dual Pricing
Abridged Incorporation
Section 13
Royalty Accounting
Minimum Rent
Short/excess working
Ground rent
Recoupment of short working
Lessee books
Landlord books
Section 14
Insurance claims
Types of claims
Loss of stock policy
Loss of profit policy
Accounting books of insured
Section 15
Investment Accounts
Fixed income bearing securities
Variable income bearing securities
Purpose of investment ledger
Purchase/sale of investment
Adjustments
Section 16
Company Final Accounts
Books of accounts kept by company
Statutory books
Statistical books
Annual accounts and balance sheet
Interpretation
Managerial remuneration
Divisible Profits
Sources of dividends
Advanced Accounting
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P&L Appropriation Accounts
Section 17
Profit & Loss prior to
incorporation
Methods to calculate
Accounting treatment of pre-incorporation P/L
Section 18
Holding Companies
Types of control
Legal definition and requirement
Holding and subsidiary company
Particulars of B/S
Financial Year
Rights of Holding company
Basic rules of preparing accounts
Section 19
Amalgamation
Forms of amalgamation
Motive for amalgamation
Procedures
Accounting for amalgamation
Types of amalgamation
Calc of purchase consideration
Methods of accounting
Inter-company investments
Section 20
Underwriting of shares and
debentures
Sub underwriters
Underwriting commission
Underwriting agreement
Marked and unmarked application
Full and partial underwriting
Advanced Accounting
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Section 21
Insolvency Accounts
Expressions
When insolvent?
Procedure of Insolvency
Accounting procedures
Deficiency policy
Insolvency of a partnership firm
Section 22
Valuation of Goodwill and
shares
Goodwill
Types of goodwill
Positive and negative goodwill
Accounting for goodwill
Valuation of non purchased goodwill
Asset backing model
Yield valuation model
Section 23
IAS
11, 12, 14, 17,18, 20, 21, 27, 29, 30, 33, 36, 38, 40
Rules for first time adoption of IFRS
Introduction to IFRS 1
Opening IFRS statement of financial position
Exceptions to the retrospective application of other
IFRSs
Recommended Study Text
Connolly / International Financial Accounting
and Reporting 3rd edition / CAI 2012
Advanced Financial Reporting by Derry Cotter
Elliott and Elliott, Financial Accounting and
Reporting, 2011 Prentice Hall (15th edition)
Modern Accountancy by A hanif & Mukherjee
Advanced Accounting by Simons and karrenbrock
4th edition
Advanced Audit
Level – IV: Professional – II Code: PP-404
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Aim
The aim of this course is to
prepare professional students
who can demonstrate the
knowledge; expertise and
professional competency
approach to understand the
nature and diversity of audit
while accomplishing the audit
of an entity and undertaking
assurance engagements. The
ultimate intension of the
course is to evaluate and
conclude on the assurance
engagement and other audit
and assurance issues in the
context of best practice and
current developments in audit spectrum.
Learning Objectives:
Upon successful completion of this course, students
should be able to:
A). Be acquainted with the legal and regulatory
environment and its impact on audit and
assurance practice
B). Explain, interpret and apply the legal,
regulatory and ethical framework to the role
of the auditor
C). Develop audit strategy, plan audit, assess the
risk of misstatement and meet the audit
objectives
D). Assess and recommend appropriate quality
control policies and procedures in practice
management and recognize the auditor’s
position in relation to the acceptance and
retention of professional appointments
E). Gather evidences, using evaluating
techniques and review going concern
assumptions
F). Draw conclusions, having applied
appropriate professional skill, skepticism and
judgment
G). Report to shareholders, management and
other relevant parties while providing audit
and assurance services
H). Conduct audit of Banks, Insurance
companies and non regular audits
I). Understand the current issues and
developments relating to the provision of
audit related and assurance services
Advanced Audit
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Section 01
Legal and Regulatory
Framework
An in-depth knowledge of the Companies Acts/ laws
legislation affecting the auditor.
An thoroughly knowledge of standards and other
technical pronouncements issued by the IASB
A detailed awareness of case law decisions and their implications for the auditing process.
Compare and contrast the respective responsibilities
of management and auditors concerning
compliance with laws and regulations in an audit of
financial statements
Auditors’ considerations of compliance/non -
compliance with laws
A deeply knowledge of other legal liabilities affecting
auditors and accountants in providing audit and
assurance services
Section 02
Ethics for CPA’s
Application of the CPA Code of Ethics.
The fundamental principles of professional ethics
Responsibilities to clients and colleagues.
Conflicts of interests.
Code of confidentiality
Professional liability and indemnity
Making ethical judgments
Misconduct and negligence
Identify, evaluate and respond to threats to compliance with the fundamental principles
Advanced Audit
Level – IV: Professional – II Code: PP-404
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Section 03
Practice Management
Principles and purpose of quality control of audit and other assurance engagements
Elements of system of quality control of a firm
quality control procedures
Responsibilities and practices including:
– Changes in professional appointments.
– Use of lien in fee disputes.
– Advertising and publicity.
– Use of professional designations
Reasons why entities change their auditors/professional accountants
Understand the matters to be considered when a firm
is invited to submit a proposal or fee quote for an
audit or other professional engagement
Identify the information to be included in a Proposal
key issues that underlie the agreement of the scope and terms of an engagement with a client
Understand the matters to be considered and the
procedures that an audit firm/professional
accountant should carry out before accepting a
specified new client/engagement
Section 04
Audit strategy, planning and
assessing the risk of misstatement
Planning the flow of audit work
Audit strategy, planning programme and importance
of supervision:
Review of audit notes and working papers
Principal’s ultimate responsibility
Extent of delegation
Materiality and performance materiality
Business Risks, Audit Risks
Risk of material misstatement
use of analytical procedures in the planning
Planning specific to initial audit engagement
Advanced Audit
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Section 05
Risk Assessment and Audit
Process
New engagements and Risks
The strategic design and planning of an audit and
knowledge of the client’s business
The review of financial statements to include analysis
and critical assessment
Quality control and recording of the audit.
The evaluation and testing of control procedures and
audit evidence.
Consideration of materiality, audit risk, reliance on
other specialists, events after the reporting period,
contingencies, related parties.
Section 06
Evidence
Audit procedures to obtain sufficient audit evidence from identified sources
Identify and evaluate the audit evidence expected
to be available to
i) support the financial statement assertions and
accounting treatments
ii) Support disclosures made in the notes to the
financial statements.
Apply analytical procedures to financial and
non-financial data
Related parties and related party transactions
Reliance on the work of experts
Section 07
Evaluation and Review
Evaluate the matters (e.g. materiality, risk,
relevant accounting standards, audit evidence)
relating to
i) inventory and construction contracts
ii) standard costing systems
iii) statement of cash flows
iv) changes in accounting policy
v) taxation (including deferred tax)
vi) segmental reporting
vii) non-current assets viii) fair values
ix) leases x) revenue recognition
xi) employee benefits xii) government grants
xiii) related parties xiv) earnings per share
xv) impairment
xvi) provisions, contingent liabilities and
contingent assets
xvii) intangible assets xviii) financial instruments
xix) investment properties xx) share-based payment
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transactions
xxi) business combinations
xxii) assets held for sale and discontinued
operations
xxiii) events after the end of the reporting
period
xxiv) the effects of foreign exchange rates
xxv) Borrowing costs.
Analytical procedures in evaluation and review
audit procedures designed to identify subsequent
events that may require adjustment to, or disclosure
in, the financial statements of a given entity
Going Concern assumptions
Assess the adequacy of disclosures in financial
statements relating to going concern and explain the
implications for the auditor’s report with regard to the
going concern basis
Section 08
Special audit techniques
Selective verification
Statistical sampling
Special audit procedures
Physical verification of assets
Direct confirmation of debtors and creditors
Analytical review procedures
Risk-based auditing
Section 09
Reporting
Reporting on Audited Financial Statements.
Key concepts: opinion, true and fair view, materiality, statutory requirements
Basic elements of the Auditor’s Report
Modified Reports, differentiating between
– Matters that do not affect the auditor’s opinion,
and
– Matters that do affect the auditor’s opinion
Circumstances giving rise to
Modified Reports.
– Limitations on scope.
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– Disagreements with management
Auditor’s responsibility before and after the date of
the Auditor’s Report.
Auditor’s responsibility for other information in documents (e.g. Annual Report) containing audited
financial statements.
Section 10
Audit of Consolidated
Financial Statements, Banks, Insurance Companies
Audit Committee and Corporate Governance
Audit Reports and Certificates for Special Purpose engagements
Certificates under the Payment of Bonus Act,
import/export con troll authorities, etc.; Specific services to non-audit clients
Audit of Banks, Transitional Audits
Audit of Insurance Companies
Audit of Cooperative societies and NPO’s
Section 11
Special Audits and Other Assurance engagements
Relevant audit planning, execution
including internal control implications), reporting and
professional practice considerations concerning:
Group audits, small business audits (including
small business exemption), not-for-profit
audits, first time audits.
Prospectuses and other offering documents:
historical year-end financial statements,
interim financial statements, and future
oriented information.
Other types of historical financial assurance
engagements: financial statements review
engagement (Accountant’s Report),
financial statements compilation
engagements (Compilation Report), audit or
review of specific financial information (e.g.
sales figures for retail park leases), compliance with agreements (e.g. loan
covenants), agreed upon procedures.
Section 12
Other Assignments
Audit-related services, Assurance services
‘prospective financial information’ (PFI)
and distinguish between a ‘forecast’, a
‘projection’, a ‘hypothetical illustration’ and a
‘target’.
Principles of useful PFI
Advanced Audit
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Compare the content of a report on an examination of PFI with reports made in providing audit-related services.
Forensic audits
Outsourcing, Auditing aspects of insolvency
Section 13
Current Issues and Developments
Discuss the relative advantages of an ethical framework and a rulebook
Identify and assess relevant emerging ethical issues and evaluate the safeguards available.
Discuss IFAC and APB developments
Recent trends in IT and their current and potential impact on auditors
How IT may be used to assist auditors and discuss the problems that may be encountered in automating the audit process
Plan an engagement to provide assurance on performance measures and sustainability indicators
Measuring and reporting on economic, environmental and social performance and give examples of performance measures and sustainability indicators.
Substantive procedures to detect potential misstatements in respect of socio environmental
Matters
Reading Material
The Audit Process, Principles, Practice & Cases 5th edition/Gray and Manson
Auditing by Audrey A Gramling, Karala M.Johnstone
IFAC standards volume
Volume 1:
Volume 2:
‘International Standards on Auditing
(UK and International) (ISAs).
International Standards on Assurance Engagements
International Standards on Review Engagements services.
IFRSs
International Standards on Quality Control
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
130
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Aim
This subject disseminates the
skills in accounting, auditing,
and investigation in the fraud
cases, preparation of
evidences, reports, affidavits,
giving oral evidence and
support in courts, arbitration,
medication as well as fraud
detection and prevention.
The Forensic Accountants are
specialist in conduct of
inquiries, research, law,
quantitative techniques
Financial auditing, accounting and legal agreements.
This course seeks to highlight
the challenges of fraud and its
detection as well prevention
as recognized now-a-days
across the world. The professionals are required to:
Recognize the characteristics
of organizations in which fraud is likely to occur.
Detect and deter accounting
fraud, using the most recently
developed techniques of investigation.
Conduct an efficient and systematic fraud investigation.
Use the latest methods for
documenting fraud and
preparing evidence and much
more to carry out the audit of the organization.
Learning Objectives:
After completing the course the students will be
able
A). To understand the basic and advanced
concepts of fraud audit and forensic
accounting
B). To learn and understand the red flags
associated with the frauds
C). To evaluate and detect frauds and
fraud schemes
D). To learn and apply the fraud detection
strategies and manage the risk to
acceptable level.
E). To manage the risk of fraud and develop
and apply fraud policy
F). Draft and apply the fraud policy and use
advanced fraud analytics tools to
detect, prevent and deterrence fraud.
G). The way the forensic accountants
investigate fraud and perform the
function of expert witness in court of law
H). To determine the difference between
auditor and forensic accountants
I). Prepare reports and presenting to those
who charged with governance
J). Interview and meeting with fraud
persons
K). How to collect and analyze evidence
L). Applying modern fraud analysis tools
and techniques
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
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Section 01
Background of Fraud Audit
and Forensic Accounting
The Fraud Cycle
Forensic Accountant and Audits
Forensic Accountants
Fraud Auditors
Section 02
Forensic Accounting
Definition,
Historical basis
Types key areas Forensic Accounting
Qualification of damages, and loss valuations
Professional Negligence fraud investigation and
family law matters
Forensic Accountants capabilities, minute analysis,
Prompt Investigation
Keen Observat8ion
Diplomatic Communication, creativity
Proficient in corporate and law, sixth Sense
photographic memory, professional, Creditability
Section 03
Fraud Principles and Fraud Schemes
What is Fraud?
Fraud Triangle
Scope of Fraud
Fraud Taxonomies
Fraud Tree
Evolution of Typical fraud
ACFE Fraud Tree
Financial Statement Schemes
Corruption schemes
Asset Misappropriation schemes
Section 04
Forensic Accounting & Traditional Auditing
Error identification and prevention
Fraud identification, regulations
Traditional audit report, audit assertion, evidence
gathering procedures
Audit tests and sampling
Forensic science, criminalists
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
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Forensic evidence
Expert testimony claim of custody competitive
investigation
Fraud symptoms, Interviews and interrogation,
Techniques,
Financial Statement
Fraud Schemes and Characteristic,
Section 05
Role of Forensic Accountant
and Responsibilities
Accountant’s Role in Perspective
Role of Company Center
Accountants and Auditors
Fraud versus Error
Reasonable Assurance , Materiality
Independence
Objectivity, Skepticism
Integrity and objectivity , Professional Skepticism
Section 06
Fraud Risk Assessment
What is Fraud Risk?
Consideration for Developing an Effective Fraud Risk Assessment
Executing the Fraud Risk Assessment
Assess the likelihood of Occurrence of the Identified
Risks,
Evaluate which people and department are most likely to commit fraud,
Fraud Risk Index, Responding to residual fraud Risks,
Reporting the results of the fraud risk assessment
Risk Assessment and the audit process,
Fraud Risk Assessment Tools
Section 05
Fraud Prevention
Responsibility for fraud prevention,
Implementing a Corporate Compliance Program
Audit Committees, Due diligence in Hiring, ,
Training Employees,
Periodic Assessment,
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
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Procedures to prevent fraud,
Fraud Prevention policy, Ethics Program
Section 06
Fraud Detection
Fraud Detection
Lying a Foundation of Detection
Assessing the Risk of Fraud , ,
Fraud Risk Factors
Information Technology
Interpreting Potential Red Flags
Identifying and Evaluating Risk Factors
Information Gathering and Analytic Procedures
Company data, Company Budgets, Forecasts, or projection
Analytic Techniques
Evaluating Controls
Unpredictable Audit Test
Observation and Inspection
Financial Statement Fraud: Detection Techniques
Revenue Recognition
Corruption
Section 07
Investigation
Auditors are not Forensic Accounting Investigators
Auditors are not Authenticators
Auditors have limited Exposure to Fraud
Auditors are not Guarantors
Historically, Audits may have been Predictable,
Potential Trigger Points of Fraud
Reliance on others
Forensic Accounting investigators cooperation
Internal Audit’s Position and Function
Resource Models
Working Together
Forensic Accounting Investigators’ Cooperation
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
134
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Forensic Accounting Investigators objectives
How should the investigation objective be defined
Who should direct the investigation and why
Ready when needed
Where to find skilled Forensic Accounting
Investigators
Internal Audit
Engaging External Forensic Accounting Investigators
Accounting and Auditing Firms
Investigative Process,
Analyzing Documents,
Interview theory and application
Covert examination
, Sources of Information,
Accessing information online,
Data analysis and reporting tools
Section 08
Forensic Techniques
Benefits and Pitfalls
Effective Data Mining
Assessing Data Quality and Format
Data Clearing
Eliminating Duplicate Information
Testing the Data for Completeness and
Accuracy
Skills of the Forensic Technologist
Effective Use of data analysis Results
Data mining in action
Data storing
Choice of tools
Presenting Results
Reviewing the essentials
Fictitious vendors, Altered Invoices, Fixed Bidding,
Goods not received, Duplicate Invoices,
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
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Section 09
Evidence created by Forensic
Accountant
What Evidence should be gathered
Practices Act violations
Improper Related-Party activity
Employee Misappropriations
Specific Allegations
Financial Statement Errors
Important Considered regarding documents and
working papers
Section 10
Reporting
Types of Reports
Importance of Adequate Preparation
A pretrial conference of Accounting expectants and
solicitors
Clarification of facts
Agreement on methodologies
Preparation of Joint Statement
List of Agreed issues and disagreement
Joint Statement
Cost Sharing
Standard of Reporting
ACFE standard
The written report of Investigation
Basic Elements to consider for inclusion in a report
Summarizing findings
Affidavits
Giving a Deposition
Mistakes to avoid in reporting
Avoid overstatement
Avoid opinion
Identify control issues separately from investigative
Findings of fact
Use simple, straightforward language focused on the
facts
Avoid subjective comments
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
136
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Section 11
Forensic Analytics
Using Access in Forensic Investigations
Using Excel in Forensic Investigations
Using PowerPoint in Forensic Investigations
High-level data overview tests
Bedford’s Law
Testing the Internal Diagnostics of current period and
prior period data
Identifying Fraud using the largest subsets
Identifying anomalies using the relative size factor
cost
Identifying fraud using abnormal duplications
Identifying fraud using Correlation
Identifying fraud using time series analysis
Section 12
Forensic Accountants As
Expert Witness
WITNESS
Role of Forensic Accountant
Forensic Accountant as an expert witness
Qualification and admissibility of Accounting
Evidence
Expert’s role in the Litigation team
Expert’s role in the Litigation team
Pretestimony activities
Trial and Testimony
Section 13
The Future of Forensic Accounting
Evolving Discipline, New Tools
Education and Training: to be Better Support
Regulation and Enforcement
Changing Corporate Environment
Internal Audit
Corporate Judgment Calls
Forensic Accounting Investigators serving
Individual Corporate Clients
Non Financial Operating Data
Fraud Audit & Forensic Accounting
Level – V: Final – I Code: FP-501
137
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Recommended Study Text
Forensic Accounting & Fraud Investigation by Howard Silver
Forensic & Investigation Accounting by Larry
Crumhler
Fraud and Forensic Accounting by Jack Bologna
Forensic Analytics by Mark j. Nigrini
Computer Fraud Case Book (The bytes that Bite)
Fraud Case Book Lesson from the Bad Ride of Business
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
138
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Aim
This subject disseminates the
skills in IT, auditing, and
investigation in the fraud
cases, preparation for audit
activities, internal audit reports,
giving actual risk assessment scenarios
The Internal auditors are
specialist in conducting
internal audit activities,
planning IAA, reporting to audit committee,.
This course seeks to highlight
the challenges of fraud and its
detection as well prevention
as recognized now-a-days
across the world.
Learning Objectives:
After completing the course the students will be
able
A). To understand the basic and advanced
concepts of internal audit
B). To learn and understand the objectivity,
purpose, authority and responsibility
C). To develop skills, knowledge and
competencies to develop
professionalism
D). To establish risk based plan and manage
the risk to acceptable level.
E). To identify internal audit resource
requirement
F). To coordinate with other service
providers
G). To conduct internal audit engagement
H). Prepare reports and presenting to those
who charged with governance
I). To conduct specific engagements
J). How to collect and analyze evidence
K). Applying modern analysis tools and
techniques
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
139
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Section 01
Define purpose, authority, and
responsibility of the internal audit activity
Determine if the purpose, authority, and responsibility of the internal audit activity are clearly documented
and approved
Determine if the purpose, authority, and responsibility
of the internal audit activity are communicated to
the engagement clients
Demonstrate an understanding of the purpose,
authority, and responsibility of the internal audit
activity
Section 02
Maintain independence and
objectivity
Foster independence
Understand organizational independence
Recognize the importance of organizational
independence
Determine if the internal audit activity is
properly aligned to achieve organizational
independence
Foster objectivity
Establish policies to promote objectivity
Assess individual objectivity
Maintain individual objectivity
Recognize and mitigate impairments to
independence and objectivity
Section 03
knowledge, skills, and
competencies
Determine if the required knowledge, skills, and
competencies are available
Understand the knowledge, skills, and competencies that an internal auditor needs to possess
Identify the knowledge, skills, and competencies
required to fulfill the responsibilities of the internal
audit activity
Develop and/or procure necessary knowledge, skills
and competencies collectively required by the
internal audit activity
Exercise due professional care
Section 04
Quality Assurance
Promote quality assurance and improvement of the
internal audit activity
Establish and maintain a quality assurance and improvement program
Monitor the effectiveness of the quality assurance
and improvement program
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
140
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Report the results of the quality assurance and improvement program to the board or other
governing body
Conduct quality assurance procedures and
recommend improvements to the performance of
the internal audit activity
Section 05
Risk-based Plan
Establish a framework for assessing risk
Use the framework to:
Identify sources of potential engagements
(e.g., audit universe, management request,
regulatory mandate)
Assess organization-wide risk
Solicit potential engagement topics from
various sources
Collect and analyze data on proposed
engagements
Rank and validate risk priorities
Coordinate the internal audit activity's efforts with:
External auditor
Regulatory oversight bodies
Other internal assurance functions (e.g., health and
safety department)
Select engagements
Participate in the engagement selection
process
Select engagements
Communicate and obtain approval of the
engagement plan from board
Section 06
IIA & Corporate Governance
Obtain board's approval of audit charter
Communicate plan of engagements
Report significant audit issues
Communicate key performance indicators to board
on a regular basis
Discuss areas of significant risk
Support board in enterprise-wide risk assessment
Review positioning of the internal audit function within
the risk management framework within the
organization,
Monitor compliance with the corporate code of
conduct/business practices
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
141
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Report on the effectiveness of the control framework
Assist board in assessing the independence of the
external auditor
Assess ethical climate of the board
Assess ethical climate of the organization
Assess compliance with policies in specific areas
(e.g., derivatives)
Assess organization's reporting mechanism to the board
Conduct follow-up and report on management response to regulatory body reviews
Conduct follow-up and report on management
response to external audit
Assess the adequacy of the performance measurement system, achievement of corporate
objective
Support a culture of fraud awareness and encourage the reporting of improprieties
Section 05
Plan Engagements
Initiate preliminary communication with engagement
client
Conduct a preliminary survey of the area of
engagement
Obtain input from engagement client
Perform analytical reviews
Perform benchmarking
Conduct interviews
Review prior audit reports and other relevant
documentation
Map processes
Develop checklists
Coordinate with:
External auditor
Regulatory oversight bodies
Establish/refine engagement objectives and
identify/finalize the scope of engagement
Consider the potential for fraud when planning an engagement:
Be knowledgeable of the risk factors and red
flags of fraud
Identify common types of fraud associated
with the engagement area
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
142
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Determine if risk of fraud requires special
consideration when conducting an
engagement
Engagements procedure
Determine the level of staff and resources needed for the engagement
Establish adequate planning and supervision of the
engagement
Prepare engagement work program
Section 06
Conduct Engagements
Research and apply appropriate standards
Maintain an awareness of the potential for fraud
when conducting an engagement
Notice indicators or symptoms of fraud
Design appropriate engagement steps to
address significant risk of fraud
Employ audit tests to detect fraud
Determine if any suspected fraud merits
investigation
Collect data
Evaluate relevancy, sufficiency of data
Analyze and Interpret data
Work papers
Communicate interim progress
Draw conclusions
Develop recommendations
Report agreement results
Conduct client satisfaction survey
Complete performance appraisals of engagement
staff
Section 07
Conduct Specific Engagements
Fraud investigation
Determine appropriate parties to be involved
with the investigation
Establish facts and extent of fraud (e.g.,
interviews, interrogations, and data analysis)
Report outcomes to appropriate parties
Audits of third parties and contract auditing
Quality audit engagements
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
143
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Due diligence audit engagements
Security audit engagements
Privacy audit engagements
Performance (key performance indicators) audit engagements
Operational (efficiency and effectiveness) audit
engagement
Financial audit engagements
Information technology (IT) audit engagements
Compliance audit engagements
Conduct consulting engagements
Internal control training
Business process review
Benchmarking
Information technology (IT) and systems
development
Design of performance measurement
systems
Section 08
Monitor Engagement
Outcomes
Determine appropriate follow-up activity by the internal audit activity
Identify appropriate method to monitor engagement
outcomes
Conduct follow-up activity
Communicate monitoring plan and results
Section 09
Engagement Tools
Sampling (A)
Nonstatistical (judgmental)
Statistical
Statistical analyses (process control techniques)
Data Gathering tools
Analytical review techniques
Observations
Problem solving
Computerized audit tools
Process mapping
Flow charts
Internal Audit Role in Risk & Control
Level – V: Final – I Code: FP-502
144
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Recommended Study Text
Internal auditing by Sawyer
The Internal Auditing Handbook by K H Spencer
Brink's Modern Internal Auditing by Robert R Moeller
The Internal Auditing Pocket Guide by J P Russell
Advanced Performance Management
Level – V: Final – I Code: FP-503
145
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Aim
The aim of this subject is to
ensure that students have the
necessary expertise and
competence to conduct a
critical, strategic analysis of
unfamiliar business situations.
This includes the ability to
select, integrate and apply the
appropriate techniques and
approaches in order to identify
problems, opportunities and
recommended strategies in
specific situations.
To apply relevant knowledge,
skills and exercise professional
judgment in selecting and
applying strategic
management accounting
techniques in different business
contexts and to contribute to
the evaluation of the
performance of an
organisation and its strategic
development.
Learning Objectives:
On successful completion of this subject,
students should be able to:
A). Select, integrate, and apply strategic
performance management techniques
appropriate to the particular context of
specific business situations described in a
case-study, through the application of critical
strategic thinking, appropriate professional
skepticism and ethical judgment.
B). Justify a portfolio of strategic performance
management techniques selected by
reference to the particular illustrative context
of a case-study situation
C). Assess the likely effects of existing and
proposed strategic performance
management structures on intra
organizational behaviors’, work practices,
and group norms
D). Evaluate the implications for particular
organizations’ strategic performance
management systems of emerging
developments in the fields of information
technology (including e-commerce),
business process re-engineering,
E). Benchmarking, and corporate governance.
F). Use strategic planning and control models
to plan and monitor organizational
performance
G). Assess and identify relevant macroeconomic,
fiscal and market factors and key external
influences on organizational performance
H). Identify and evaluate the design features of
effective performance management
information and monitoring systems
I). Apply appropriate strategic performance
measurement techniques in evaluating and
improving organizational performance
J). Advise clients and senior management on
strategic business performance evaluation
and on recognizing vulnerability to corporate
failure
Advanced Performance Management
Level – V: Final – I Code: FP-503
146
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Section 01
Introduction to strategic
management accounting
Explain the role of strategic performance
management in strategic planning and control.
Discuss the role of corporate planning in clarifying
corporate objectives, making strategic decisions and
checking progress towards the objectives
Compare planning and control between the
strategic and operational levels within a business
entity
Assess the use of strategic management accounting
in the context of multinational companies
Discuss the scope for potential conflict between
strategic business plans and short-term localized
decisions
Evaluate how SWOT analysis may assist in the
performance management process
Evaluate the methods of benchmarking performance
Section 02
Performance management
and control of the organisation
Evaluate the strengths and weaknesses of alternative
budgeting models and compare such techniques as
fixed and flexible, rolling, activity based, zero based
and incremental.
Assess how budgeting may differ in not-for-profit
organizations from profit-seeking organizations
Evaluate the impact to an organisation of a move
beyond budgeting
Section 03
Changes in business structure
and management accounting
Identify and discuss the particular information needs
of organizations adopting a functional, divisional or
network form and the implications for performance
management
Assess the influence of Business Process
Reengineering on systems development and
improvements in organizational performance
Discuss the concept of business integration and the
linkage between people, operations, strategy and
technology
Analyze the role that performance management
systems play in business integration using models such
as the value chain
Identify and discuss the required changes in
management accounting systems as a consequence
of empowering staff to manage sectors of a business
Advanced Performance Management
Level – V: Final – I Code: FP-503
147
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Section 04
Changing business
environment
Assess the continuing effectiveness of traditional
management accounting techniques within a rapidly
changing business environment
Assess the impact of the different risk appetites of
stakeholders on performance management
Evaluate how risk and uncertainty play an important
role in long term strategic planning and decision-
making that relies upon forecasts of exogenous
variables
Apply different risk analysis techniques in assessing
business performance such as maximin, maximax,
minimax regret and expected values
Section 05
Performance management
information systems
Discuss, with reference to performance
management, ways in which the information
requirements of a management structure are
affected by the features of the structure.
Evaluate the compatibility of the objectives of
management accounting and management
accounting information
Discuss the integration of management accounting
information within an overall information system, for
example the use of enterprise resource planning
systems.
Evaluate whether the management information
systems are lean and value of the information that
they provide
Highlight the ways in which contingent (internal and
external) factors influence management accounting
and its design and use
Section 06
Recording and processing
methods and management
reports
Demonstrate how the type of business entity will
influence the recording and processing methods
Discuss how IT developments e.g. unified corporate
databases, RFIDs and network technology may
influence management accounting systems
Discuss the difficulties associated with recording and
processing data of a qualitative nature
Evaluate the output reports of an information
system in the light of
i) best practice in presentation;
Advanced Performance Management
Level – V: Final – I Code: FP-503
148
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ii) the objectives of the report/organisation;
iii_ the needs of the readers of the report; and
iv) avoiding the problem of information
overload
Section 07
Strategic performance
measures in private sector
Demonstrate why the primary objective of financial
performance should be primarily concerned with the
benefits to shareholders.
Justify the crucial objectives of survival and business
growth.
Discuss the appropriateness of, and apply different
measures of performance, including:
i) Return on Capital Employed (ROCE)
ii) Return on Investment (ROI)
iii) Earnings Per Share (EPS)
iv) Earnings Before Interest, Tax,
Depreciation and Amortization (EBITDA)
v) Residual Income (RI)
vi) Net Present value (NPV)
vii) Internal rate of return and modified
internal Rate of Return (IRR, MIRR)
viii) Economic Value Added (EVA TM)
Discuss why indicators of liquidity and gearing need
to considered in conjunction with profitability.
Compare and contrast short and long run financial
performance and the resulting management issues.
Explore the traditional relationship between profits
and share value with the long-term profit
expectations of the stock market and recent financial
performance of new technology companies.
Assess the relative financial performance of the
organisation compared to appropriate benchmarks.
Section 08
Pricing and Product Decisions
Describe, compute and evaluate performance
measures relevant in a divisionalised organisation
structure including ROI, RI and Economic value
added (EVA)
Discuss the need for separate measures in respect of
managerial and divisional performance.
Discuss the circumstances in which a transfer pricing
Advanced Performance Management
Level – V: Final – I Code: FP-503
149
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policy may be needed and discuss the necessary
criteria for its design.
Demonstrate and evaluate the use of alternative
bases for transfer pricing
Explain and demonstrate issues that require
consideration when setting transfer prices in
multinational companies
Relevant cash flows and their use in short-term
decisions, typically concerning acceptance/rejection
of contracts, pricing and cost/benefit comparisons
The importance of strategic, intangible and non-
financial judgments in decision-making
Relevant costs and revenues in decision-making and
their relation to accounting concepts
Marginal and full cost recovery as bases for pricing
decisions in the short and long-term
Simple product mix analysis in situations where there
are limitations on product/service demand and one
other production constraint.
Multi-product break-even analysis, including break-
even and profit/volume charts, contribution/sales
ratio, margin of safety etc.
Linear programming for more complex situations
involving multiple constraints. Solution by graphical
methods of two variable problems
Sensitivity analysis of CVP-based decision models.
Pricing decisions for profit maximizing in imperfect
markets.
Pricing strategies and the financial consequences of
market skimming, premium pricing, penetration
pricing, loss leaders, product bundling/optional extras
and product differentiation to appeal to different
market segments.
The allocation of joint costs and decisions concerning
process and product viability based on relevant costs
and revenues.
Section 09
Cost Planning and Analysis for
Competitive Advantage
Value analysis and quality function deployment.
The benefits of just-in-time production, total quality
management and theory of constraints and the
implications of these methods for decision-making in
the ‘new manufacturing environment’.
Kaizen costing, continuous improvement and cost of
quality reporting.
Learning curves and their use in predicting
product/service costs, including derivation of the
learning rate and the learning index.
Advanced Performance Management
Level – V: Final – I Code: FP-503
150
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Activity-based management in the analysis of
overhead and its use in improving the efficiency of
repetitive overhead activities.
Target costing.
Life cycle costing and implications for marketing
strategies.
The value chain and supply chain management,
including the trend to outsource manufacturing
operations to transition and developing economies.
The use of direct and activity-based cost methods in
tracing costs to ‘cost objects’, such as customers or
distribution channels, and the comparison of such
costs with appropriate revenues to establish ‘tiered’
contribution levels, as in the activity-based cost
hierarchy
Pareto analysis
Section 10
Performance measurement
and strategic Human Resource
Management issues
Explain how the effective recruitment, management
and motivation of people are necessary for enabling
strategic and operational success
Discuss the judgmental and developmental roles of
assessment and appraisal and their role in improving
business performance.
Advise on the relationship of performance
management to performance measurement
(performance rating) and determine the implications
of performance measurement to quality initiatives
and process redesign
Section 11
Performance measurement
and the reward systems
Explore the meaning and scope of reward systems.
Discuss and evaluate different methods of reward
practices.
Explore the principles and difficulty of aligning reward
practices with strategy.
Advise on the relationship of reward management to
quality initiatives, process redesign and harnessing of
e-business opportunities
Assess the potential beneficial and adverse
consequences of linking reward schemes to
performance measurement, for example, how it can
affect the risk appetite of employees
Advanced Performance Management
Level – V: Final – I Code: FP-503
151
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Section 12
Strategic performance issues in
complex business structures
Evaluate the use and the application of strategic
models in assessing the business performance of an
entity, such as Ansoff, Boston Consulting Group and
Porter
Discuss the problems encountered in planning,
controlling and measuring performance levels, e.g.
productivity, profitability, quality and service levels, in
complex business structures
Discuss the impact on performance management of
the use of business models involving strategic
alliances, joint ventures and complex supply chain
structures.
Section 13
Budgeting and Management
Control
The use of budgets in planning: ‘rolling budgets’ for
adaptive planning.
Responsibility accounting and the use of budgets for
control: controllable costs and; treatment of
uncontrollable costs; the conceptual link between
standard costing and budget flexing.
Assessing the financial consequences of projected
performance through key metrics including
profitability, liquidity and asset turnover ratios.
What-if analysis based on alternate projections of
volumes, prices and cost structures and the use of
spreadsheets in facilitating these analyses.
The evaluation of out-turn performance using
variances based on ‘fixed’ and ‘flexed’ budgets.
Behavioural issues in budgeting: participation in
budgeting and its possible beneficial consequences
for ownership and motivation; participation in
budgeting and its possible adverse consequences for
‘budget padding’ and manipulation; setting budget
targets for motivation; implications of setting standard
costs etc.
Non-financial performance indicators.
Criticisms of budgeting and the recommendations of
the advocates of the balanced scorecard and
‘beyond budgeting’
Advanced Performance Management
Level – V: Final – I Code: FP-503
152
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Section 14
Control and Performance
Measurement of Responsibility
Centres
Organisation structure and its implications for
responsibility accounting.
Presentation of financial information representing
performance and recognizing issues of
controllable/uncontrollable costs, variable/fixed costs
and tracing revenues and costs to particular cost
objects.
Return on investment and its deficiencies; the
emergence of residual income and economic value
added to address these..
The behavioural consequences of performance
management and control.
The theory of transfer pricing, including perfect,
imperfect and no market for the intermediate good.
Use of negotiated, market, cost-plus and variable
cost based transfer prices. ‘Dual’ transfer prices and
lump sum payments as means of addressing some of
the issues that arise.
The interaction of transfer pricing and tax liabilities in
international operations and implications for currency
management and possible distortion of internal
company operations in order to comply with Tax
Authority directives
Section 15
Current developments in
management accounting
techniques
Discuss the ways through which management
accounting practitioners are made aware of new
techniques and how they evaluate them
Discuss, evaluate and apply environmental
management accounting using for example lifecycle
costing, input/output analysis and activity-based
costing.
Discuss contemporary issues in performance
management
Assess the changing role of the management
accountant in today’s business environment as
outlined
Discuss how changing organization’s structure,
culture and strategy will influence the adoption of
new performance measurement methods and
techniques.
Advanced Performance Management
Level – V: Final – I Code: FP-503
153
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Recommended Study Text
Management Accounting by W. Seal, R. H. Garrison &
E. W. Noreen
Management and Cost Accounting by C. Dury
Management and Costing Accounting by C. T.
Horngren / A. Bhimani, S. M. Datar & G. Foster
W. Seal, R. H. Garrison & E. W. Noreen /
Management Accounting / McGraw-Hill (4th
edition) 2012 / ISBN 9780077129897
C. T. Horngren / A. Bhimani, S. M. Datar & G.
Foster / Management and Costing Accounting /
FT Prentice Hall / 5th edition 2012 / ISBN
9780273757450
Advanced Case Studies, Emerging Trends, Articles
Level CPA Final-II Subject Code FP601 Exam
Exam Hours
100 Marks
12
154
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Assessment Level:
Advanced/Conceptual/Practical/Expert/Professional/Application
Assessment Strategy:
Please go through the following Guidelines carefully on which the assessment strategy will be based.
Requirements:
This requires using information or concepts in new situations, solving problems, organizing
information and ideas, using old ideas to create new ones, generalizing from given facts, analyzing
relationships, relating knowledge from several areas, drawing conclusions, evaluation worth, etc.
Guidelines:
INTRODUCTION
Research is about discovery, the testing of hypotheses and of ideas. It is about the
establishment of facts through enquiry and exploration. The outcome of research is new
knowledge leading to improved understanding of mechanisms and the development of new
and improved procedures. To ensure that the use of research results is maximised, it must be
disseminated in an appropriate manner. In many senses, the dissemination of the research
results is just as important as the research activity itself.
There are many ways to disseminate research results, and the production of a research
dissertation or thesis is one of them. Although a research dissertation is a usual requirement
for academic degree programmes that include a research element, it is more than an
instrument for student assessment. A common mistake is to regard it as a "beefed-up"
laboratory report. It must be written such that the results presented can be validated and to
form the basis for further investigations. Procedures adopted must be justified; claims and
conclusions must be supported by experiments or reasoned arguments and deductions. A
research dissertation contains elements which distinguishes it from other types of reports, and
because it is the culmination of several months or years of work, the publication can be quite
voluminous. Writing one therefore requires some thought, planning and organisation.
This set of guidelines intends to give some ideas and tips on how to go about writing a
research dissertation. The first thing we will consider is the layout of the dissertation.
(Note: While the subsequent pages are not instructions on how to carry out research, their
contents should also give an idea of what is required in terms of research tasks and how
research should be approached.)
Advanced Case Studies, Emerging Trends, Articles
Level CPA Final-II Subject Code FP601 Exam
Exam Hours
100 Marks
12
155
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STRUCTURE
Structure, as opposed to layout, refers to the organisation of the chapters or sections
that make up the dissertaion. Unlike layout, which is usually dictated by Institutional
requirments, strictly speaking, there are no fixed rules governing the structure of a
research dissertation. However, it is generally accepted that a dissertation should have the following chapters:
Title page
where you enter the full title, and the sub-title if any, of the research work; the
name of the author; a statement about the degree programme under which the
dissertation is submitted; the date of submission.
Abstract which is usually a one page summary of the objectives of the research; the
methodology used and the main findings of the work
Contents list which lists the chapter and section headings with their corresponding page
numbers
List of tables, diagrams and illustrations
which list the figure and table numbers, together with captions and their
corresponding page numbers
Nomenclature list which provides a list of nomenclature and definitions of acronyms used in the
dissertation. Make sure that the coressponding units, if applicable, are included.
It is good practice to have a different section for nomenclature involving Greek
symbols as might be encountered in equations and one for acroynms.
Acknowledgements
if any are due, but it is nice gesture to acknowledge the contributions and help of
sponsors and friends
Main text divided into chapters, with appropriate chapter headings, to include
o a chapter to introduce the research; the motivation and the objectives;
and to provide an overview of the dissertation
o a chapter reviewing the work that has done in the area
o a chapter or two to describe in detail the methodology adopted or
proposed
o a chapter or two presenting the main results of the work
o a concluding chapter that summarises the main findings of the research;
statements about the main contributions of the research and
recommendations for future work
References
lists the references that have been cited in the dissertation
Appendices
contain those parts of dissertation that are either well known or does not
contribute directly to the main text, but needs to be included for completeness.
Examples are sample calculations; derivation of a published result which forms the basis for the work; background information.
(Note: the Bristish Standards Institute had guidelines for the production of dissertations: BS 4821:1990, but this has since been withdrawn)
Advanced Case Studies, Emerging Trends, Articles
Level CPA Final-II Subject Code FP601 Exam
Exam Hours
100 Marks
12
156
@ PRIVACY & TERMS WWW.CPAPRO.EU | WWW.CPAPRO.PK
Tips
Spend some time planning the structure of your dissertation
before starting to write. Not only will this save time and effort in the
long run, it will reduce duplicate text and the dissertation will be more
compact and readable.
o Think about the objectives of the project; what you did and the
results that you obtained.
o Divide the contents into the appropriate chapters and sections;
this will help you rationalise the contents
o Seek the advice of your project supervisor
Try to get a copy of a thesis or dissertation written by a student
in your department to gain a visual feel for how the dissertation is
organised, formatting conventions, and to get an idea of what material
should be placed in which chapters.
Use a new page to start each distinct part of the dissertation
(such as those above).
Do not include blank pages. They do not contribute to the
dissertation, and worse, they can cause confusion for the reader.
Common questions on encountering a blank page are:
o "Has the author forgotten to include something?"
o "Has the photocopier missed a page?"
Write the Abstract and Introduction chapter last - once you have
written the other main chapters, it is easier to summarise the work done, and to give an overview of the dissertation.
With a plan for the structure, you can start the important task of writing the dissertation,
keeping in mind that the various parts of the publication must be linked together in a
coherent manner. This aspect, loosely termed content flow, is covered next.
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FLOW OF CONTENTS
Writing a research dissertation or thesis is like writing a novel. It is a novel that begins
with a story about the background to the research; describing the methods used to
establish facts or test hypotheses and ideas; the results that were observed; and the
conclusions that are drawn. Like the good novel that compels you to read it from cover
to cover, a dissertation should be written so that it can be read at a refreshing tempo,
engaging the reader's undivided attention. To accomplish this, organise the contents of
the dissertation so that they "flow" smoothly from one aspect to the next, and take
particular care in sentence construction.
Tips
One of the techniques to achieve smooth flow of contents is to
maintain a thread between adjoining chapters; ensure that each
section within a chapter lead on to the subsequent section; and
paragraphs of sections are connected to each other. A common
practice is to use "joining" words or sentences, particularly at the end
and beginning of each chapter. A joining sentence at the end of a
chapter tells the reader what to expect, while one at the beginning of a
chapter reminds the reader of the contents of the previous chapter.
Flow and readability are sometimes used interchangeably, but while
smooth flowing content is readable, readability does not necessarily
mean that the contents are threaded.
Flow is interrupted when the reader pauses to ponder the material.
This typically occurs in sections discussing new concepts, and when
making statements based on interpreted results. Where such areas of
the text are identified, pay extra attention to the phrasing of the
content and be conscientious in providing clear explanations. When
making calculations, define all the variables (include units where
applicable) and justify all simplifying assumptions. You should also be
fastidious in describing experimental, simulation and test conditions.
Do not presume that the reader knows what you are trying to do or are
familiar with the techniques that you are employing.
Material that do not contribute directly to the discussion; argument; or
development of a theme or idea, also interrupts flow. Such material
should be excluded. If, for the sake of completeness, you wish to
include them, place them in an Appendix and refer to them in the main
text.
Avoid one sentence paragraphs. Too many and a page will be filled with
numerous gaps, imparting a feeling of discontinuity with the content.
Similarly, avoid long sentences. Long sentences are difficult to read,
and can obscure an otherwise simple explanation. Try to keep sentence
length to less than two lines, and at the same time, make appropriate
use of punctuation. Punctuation break a sentence into readable chunks,
reduce ambiguity and, if used wisely, can for increase effect and
emphasis. A word of warning though - do not apply punctuation at
random as they can change the meaning of a sentence.
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The repeated use of words can make a dissertation difficult, if not
boring, to read. Use a thesaurus to get synonyms to introduce variety,
but make sure that they are used in the proper context. Do not employ
bombastic words to show how clever you are with the language.
Explanations using commonly encoutered words are more effective
than pompous soundling but rarely used vocabulary.
Presentation also plays an important part in giving the impression of
smooth flowing content. The font size should not be too small, and the
line-spacing should be wide enough. Choose 12-point for Serif fonts
(e.g. Times-Roman, Bookman) and 10-point for Sans-serif fonts (e.g.
Arial, Helvetica, Verdana, Tahoma). A 1.5 line spacing for both font
types should ensure that the lines are sufficiently far apart to enhance
reading comfort.
Writing in the "active voice" improves the reading pace, and hence
flow. Take for example, the following two sentences:
Advanced control improves plant profitability. (active sentence)
Plant profitability is improved by advanced control. (passive
sentence)
Although both sentences convey the same message, the first is more
authoritative and positive. In the active sentence, the emphasis is on
"Advanced control" while the passive sentence emphasises "Plant
profitability". Moreover, the passive sentence expresses the same
information in a round-about way. Passive expressions have their uses though. As another example:
Excessive drinking can cause dementia. (active sentence)
Dementia can be caused by excessive drinking. (passive sentence)
When you do not have strong evidence to support a statement, express it in
the passive voice as the tone is less assertive. This is a "trick" adopted usually
to avoid getting into sticky arguments with assessors.
Now that you have an idea of how to improve the flow of contents in a dissertation, the
next thing to consider is the content of key chapters.
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CONTENTS OF KEY CHAPTERS
As mentioned in the discussion on "structure", there are certain chapters which are common to all dissertations and theses contain, namely:
the Abstract
the Introduction
the Literature Review
the Conclusions and Recommendations for Future Work
These are important components, each fulfilling a distinct role. Click on the above links
to find out more.
THE "ABSTRACT"
The Abstract provides the reader with a summary of the contents of the dissertation. It
should therefore be brief but contain sufficient detail, telling the reader the motivation
for the work; project objectives; techniques employed; main results and conclusions. Abstracts should not normally exceed a page and should be self-contained.
The Abstract is the "gateway" to the contents of the dissertation, and therefore it is
important that the Abstract gives the reader a good initial impression. Try to write
Asbstract with a "punchy" style.
Tip
Write the Abstract last. The dissertation will be easier to summarise once all
the bits are in place.
THE "INTRODUCTION"
The first chapter of a dissertation is normally given the title Introduction, and it serves many purposes. It is the place where you should
discuss the motivation for the work that is being reported
state and define the problem that the dissertation is trying to address or solve
state the aims and objectives of the work
give an indication of how the work will be progressed
provide a brief overview of each of the main chapters that the reader will encounter
When writing the motivation for the research work that has been carried out, do not go
into the details. Leave this for later chapters. Give a brief overview of the problem that
you are tackling, and be specific about what the work is trying to achieve, and what you
will be doing to meet these objectives. From an assessment point of view, one of the
measures of success is whether the objectives listed in this chapter have been achieved.
While a research project may start off with a set of objectives, it is often the case that
these will change as the project evolves. Such is the nature of research. You should take this into consideration when stating the objectives of the project.
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Like the Abstract, the Introduction should be written to engage the interest of the
reader. It should also give the reader an idea of how the dissertation is structured, and in doing so, define the thread of the contents.
Tip
Leave the Introduction chapter as one of the last to write. By then, the
structure of the dissertation would be fixed, making it easier to give the
overview of the chapters and what they contain. Also, based on the results
that have been included, you would have an idea of what the "real"
contributions of the dissertation are, enabling you to state the objectives
accordingly.
THE "LITERATURE REVIEW"
There are many titles for this chapter, e.g. "Literature Survey"; "Previous Work", and other similar phrases. The Literature Review is there for you to:
provide details about the motivation for the project
state why the problem addressed by the dissertation is important
set the scene for the work described in the dissertation
describe what others have done and hence sets a benchmark for the current
project
jusify the use of specific solution techniques or problem solving procedures in your work
It is called the Literature Review because the contents of this chapter are based on
published material. A thorough literature review is essential because it shows that you
have studied rigorously what others have done. This lends credibility when you state the
problem the dissertation is addressing, and when you provide reasons as to why
obtaining a solution is important. Where applicable, you should also include a critique of
the available solutions to the problem that your are tackling. This would implicitly
provide justifications for the project and, at the same time, establish benchmarks
against which your contributions can be assessed. Therefore, make sure that you seek
out the most recent information relating to your field of study. You may, if you wish,
include a discussion about your approach to the problem, and which of the published
work will form the basis of your investigations.
The Literature Review is obviously a very important chapter. However, students doing
research for the first time often find it difficult to write. There are a number of reasons for this:
they do not know where to look for information
there may be a huge amount of published work on the subject area, dating back
many years, and they find it difficult to judge which material is relevant
the work is a "hot-topic" and keeping track of the state-of-the-art is difficult
they find it difficult to summarise the ideas and results of numerous publications into a coherent single account
Unfortunately, much of these skills can be gained only through experience. The following
tips will, hopefully, make life that much easier.
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Tips
Most libraries have personnel who specialise in certain disciplines. Ask them for
information about publications relevant to your field of study, whether they are held in stock and where they are located in the library.
Nowadays, an increasing number of journals are available on-line, accessed via web browsers. Many libraries subscribe to these electronic journals, meaning that you can read, download or print articles from the comfort of your computer workstation. Even if your library does not have a subscription to a particular journal, you should still be able
to read the abstract. If the article looks interesting and relevant, you could order a copy. Again, approach your librarian for advice (and your supervisor or advisor for finance).
Students at Newcastle will find the following links useful:
o An Introductory Guide to the Robinson Library is a slide show that tells you all you need to know about the Library and the facilities it offers.
o All about Searching for
Information
o Library News - news of things that are happening at the Robinson Library
o Find that book using the web-based catalogue
o Go straight to the database section to do your literature search
o Peruse the electronic journals
o Brief list of resources for Chemical Engineering and related areas like
water, and Environmental Engineering
Make it a point to keep abreast of developments in your field of study by making regular visits to the library and to the electronic journals websites.
When reading a technical paper, jot down the key points and make a note of the journal or technical publication where the paper was published. Devise a cataloguing system that will allow you to retrieve the paper quickly. This will come in handy when you write the Literature Survey, and when you compile the reference list.
When writing the Literature Review
o include only those work that is relevant to your research. You may have
read dozens upon dozens of papers, but there will be some that do not contribute to the points that your are trying to make, or there will be papers that give identical information. Because of the time you spent trying to understand them, you may be tempted incorporate all that you have read. Attempting to do this will make what is already a difficult task impossible.
o make sure that you have read and understood cited work, otherwise you can get into hot water. Assessors like to ask questions like: "So tell me what you understand about the proposal by Smith and Wesson 1945)".
o organise your content according to ideas instead of individual publications. This helps ensure the smooth flow of contents and make the chapter more readable. It also shows that you have an appreciation of the subject area.
o do not simply quote or paraphrase the contents of published articles.
You should try to weave the information into focussed views, incorporating where possible, your own opinions and comments. This will demonstrate your deeper understanding of the topic.
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THE "CONCLUSIONS AND RECOMMENDATIONS FOR FURTHER WORK"
After reading your Abstract and Introduction, most assessors will make a beeline for the
Conclusions and Recommendations for Further Work (or similarly titled) chapter.There
are three distinct parts to this, the last of the main chapters, and arguably the most
important of the lot. It is here where you wrap up the dissertation by providing:
a summary of the main findings of the dissertation
a list of the contributions of the work directions for further research
The assesors would want to know whether the project objectives been achieved and
whether the work has contributed to knowledge - two of the most important criteria in
judging the research work. Therefore, when compiling this chapter, you should focus on answering these questions.
Any conclusions drawn should be those resulting from your work. You may make
references to the relevant chapters that support the listed finding. You may also refer to
the work of others for comparison purposes. However, you should not be discussing your
results here. All statements should be concise, and should be written to lead on to the
contributions that you have made. One way to present the conclusions is to use one paragraph for each conclusion. Alternatively, use a point-by-point format.
When writing the dissertation, you should be aware of the worth and relevance of your
work in relation to the current state-of-the-art (another reason for a rigorous Literature
Review). Probably the best way to present this information is in point form. You should
not be emabarassed about stating what your contributions are to the field of study.
However, be realistic and do exercise restraint: your claims must be backed up by the
results of your work, otherwise you might "hammered" by the assessors.
The Recommendations for Further Research section is also important. Research often
exposes further problems and introduces more questions. As a student, there is a time
limit to your research project, so it is unlikely that your work would have solved all the
problems associated with the area of study. Therefore, you will be expected to make
suggestions about how your work can be improved and, based on the your findings,
whether there are areas that deserve further investigation. What you write in this section
will show whether you have a firm appreciation of your work, and whether you have
given sufficient thought to its implications, not only within the narrow confines of the
research topic, but to related fields. These reflect your ability for original thought, and
your potential to carry out original research; key issues in a research degree. In the case
of a PhD thesis especially, where you are expected to be the expert, it would be more
than embarassing if an assessor can make more suggestions about how your work can be progressed.
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Tips
As with the Introduction, this chapter should be written using a punchy
style and should not be too long. Present your conclusions and contributions concisely and factually.
Is that it then? Afraid not. There are details such as citation styles; styles for numbering
of chapters, figures and tables; how results should be presented and analysed, and so
on. The following pages will cover each of these in turn.
CITATION STYLES
One of the things that confound first-time writers of research papers and dissertations is how to cite references. The two most common methods for citing published work:
the number system the name-year system
You should be consistent and stick to one of these citation styles. The system you use
will also determine how you compile and present the Reference list. Which one you use
will depend on institutional guidelines or regulations.
The Number System
With this system, references to published work is via the use of numbers, e.g.
There are many undergraduate texts on Process Control [1-4]. The most popular seems
to be the book by Luyben [2]. However, the only one to deal with process design and process control in an integrated manner is that by Marlin [4].
or
There are many undergraduate texts on Process Control 1-4. The most popular seems to
be the book by Luyben 2. However, the only one to deal with process design and process control in an integrated manner is that by Marlin 4.
In both examples above, three citations were made. The first referred to publication
number 1, 2, 3 and 4; the second citation referred to publication number 2; while the
last citation referred to publication number 4. The fact that the numbers relate to items
in the reference list is indicated by the square parentheses [...] or by the superscripts.
Again, which convention you follow will depend on the guidelines and regulations of your
institution.
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When using the number-system citation style, the order of the corresponding reference
list is important. By convention, the first cited publication will be the first on the list and
assigned the number "1". The second cited publication will be the second on the list and
assigned the number "2" and so on. That is, the publications in the reference list is
presented in the order that they were cited. However, the reference list must not
contain duplicates. This means that you will have to keep track of the publications that
you have cited and their associated order in the reference list, so that you use the
appropriate number when you cite a publication more than once, as in the above examples.
Tips
If all you are told is that you should use the number-system, you
should choose the one that is easiest to type and correct. Using
square-parentheses is probably easier, as you do not have to mess
about with subscripts.
Compile the reference list as you write your chapters, keeping it open
in the word processor but in a separate file. Add new cited pulications
to the list as you work, and refer to it for the number to use with
publications that have been cited.
Check for duplicates whenever you add publications to the reference
list. Making corrections to citations when duplicates are discovered later is a most painful and frustrating process.
The Name-Year System
Using the name-year citation style, the above example becomes:
There are many undergraduate texts on Process Control (Coughanowr, 1991; Luyben,
1990; Marlin, 1995; Shinskey, 1988). The most popular seems to be the book by Luyben
(1990). However, the only one to deal with process design and process control in an integrated manner is that by Marlin (1995).
The first citation named 4 authors using their surname (last name). Associated with each
surname, is the year of the publication. Notice that they are presented in alphabetical
order, within round parantheses, (...). The author part is separated from the year part
by commas, ','. Author-year pairs are separated by semi-colons ';'. The next two
citations named the authors using their surnames with the year of the cited publications
enclosed in parentheses. Therefore, there are two ways to use the "name-year citation
style. When using this citation style, the reference list is presented in alphabetical order.
How a publication is cited also depends on the number of authors. If there are two authors, then cite as follows:
Clarke and Gawthrop (1979) modified the Minimum Variance objective function to include ...
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or
The Generalised Minimum Variance self-tuning algorithm was proposed in the late 1970s (Clarke and Gawthrop, 1979).
When a publication has more than two authors, cite as follows:
Montague and co-workers (1987) considered ...
or
There are many variations to the algorithm (e.g. Cox, 1991; Willis and colleagues, 1990).
You can use the phrases "co-workers" and "colleagues" interchangeably. You can also
use "et. al.", the short form for the Latin phrase "et alii", which means "and others". The
preceding two forms are preferred as they tend to cause less disruption to the flow of
the sentence. Also, since "et. al." is Latin, it should be in italics - unnecessary work.
Tips
If you are not restricted to a particular citation style, use the name-
year system. Most word processors have a "sort" tool, making the
reference list easy to maintain. Duplicated items are easily detected,
and there is no need to make corrections to citations when duplicates
are discovered.
Compile the reference list as you write your chapters, keeping it open
in the word processor but in a separate file. Add new cited pulications
to the list as you work. Check for duplicates by sorting the reference list alphabetically.
Now let us move on to the presentation of the reference list.
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THE REFERENCE LIST
As mentioned previously, how the Reference list is compiled and presented depends on
the citation style that you use. If you use the number system, then the references are
listed in the order that they have been cited. On the other hand, if you cite publications
using the name-year system, the references should be listed alphabetically. Whichever
citation system you use, you have to stick to one convention, otherwise the inconsistency will confuse the reader.
The Reference list is related closely to the Literature Review chapter and is therefore also
quite an important part of your dissertation. Examiners have been known to scrutinise
the list to find out if it contains the most relevant and important publications. It is also a
good idea to include the publications of your examiners, if you know beforehand who
they are especially if they are working in the same research area. However, do not go
overboard and try to impress by including all sorts references. This can be counter-
productive. List only those publications you have cited. If you have read other supporting
articles that have helped in the research, but have not cited them in the dissertation,
place them in a separate "Bibliography" section. The publications in both Reference and Bibliography lists are presented in the same manner.
There are a number of types of publications, and they can be broadly classified as
follows:
articles published in journals
conference proceedings
books
dissertations; theses and research reports
company reports and manuals
information from the world-wide-web personal communications
Each category requires a different presentation. Let us consider each type in turn:
Journal Articles
These are the most common sources of cited material, and include specialist technical
journals as well as trade journals. Use the following format to present articles from technical journals:
Author(s), (year). Article title, Name of journal, Volume Number, Issue Number, page range.
For example:
Chidambaram, M. and Malleswararao, Y. (1992). Model reference control of nonlinear
systems with relative rrder two: application to a semibatch reactor, Journal Proc. Cont.,
2, 1, pp 9-15.
McLellan, P.J. (1994). A differential-algebraic perspective on nonlinear controller design
methodologies, Chem. Eng. Sci., 49, 10, pp 1663-1679
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Instead of issue numbers, some journals have a month of issue. In such cases, substitute the month for the issue number.
The author(s) surname appears first, followed by initials. The year is enclosed in
parenthese and terminated with a full-stop. The first letter of the title is capitalised while
the rest are in lower case. You may use an abbreviated form for the journal name, but
make sure that it is the recognised one. Most journals will have the "official" abbreviated title printed at the top of its pages.
Conference Proceedings
Papers presented at conferences are also common sources of research information. Use the format below when listing them:
Author(s), (year). Article title, Name of conference, Location of conference, page range.
For example:
Dore S.D., Perkins, J.D. and Kershenbaum, L.S. (1994). Application of geometric
nonlinear control in the process industries - a case study, Proc. IFAC Symposium, ADCHEM '94, Kyoto, Japan, pp 501-506.
Again, the author(s) surname appears first, followed by initials. The year is enclosed in
parenthese and terminated with a full-stop. The first letter of the title is capitalised while
the rest are in lower case. You may use an abbreviations to indicate the type of
publication and the name of the conference. For example "Proc." is usually used in place
of "Proceedings"; "Pre." for "Preprints"; "Conf." for "Conference"; "Symp." for
"Symposium" and so on.
Books
To list books, use the following format:
Author(s), (year). Title of book in italics. Edition number, Name of publisher, place of publication.
For example:
Rawlings, J.O. (1988). Applied Regression Analysis: a research tool. Wadsworth and
Brooks, California.
Turk, C. and Kirkman, J. (1996). Effective Writing - improving scientific, technical and business communication. 2nd Edition, E & FN SPON, London.
The format for author(s) is identical to the above, but the the first letter of key words in
the main title are in capitals, and the title is in italics. There is not need to indicate the edition of the book if it is the first edition.
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Some books are compilations of articles from different authors. For such cases, the format used is a cross between that for journal articles and books,
Author(s), (year). Title of article in book, In: Name of book, Edition number, Chapter number, Name(s) of editors, Name of publisher, place of publication.
For example:
Rumelhart D.E., Hinton G.E. and Williams, R.J. (1987). Learning internal representations
by error propagation, In: Parallel Distributed Processing: Vol. 1, Ch. 8, D.E. Rumelhart
and J.L. McClelland [editors], MIT Press, Cambridge MA.
Note the use of the word "In:" and the difference in which the names of the authors and
the names of the editors are presented: editors' names are listed with their initials first.
However, when you list the book withour reference to authors of particular chapters, editors are considered the authors, in which case the item will be listed as:
Rumelhart, D.E. and McClelland, J.L. [editors], (1987). Parallel Distributed Processing:
Vol. 1, MIT Press, Cambridge MA.
Dissertations; Theses and Research Reports
Dissertations, theses and academic research reports are listed using the format below:
Author(s), (year). Title in italics. Type of publication, Research Group, Name of institution, Country.
For example:
Peel, C. (1995). Aspects of Neural Networks for Modelling and Control. PhD Thesis,
University of Newcastle-upon-Tyne, UK.
Bloggs, J. and Other, A.N. (1998). The Effects of Vodbull on Class Attendance. Research
Report No. 123, Social Impact Research Group, Smirnoff Institute of Technology, Vladistock, Russia.
When listing a research report, include the report number where applicable.
Company Reports and Manuals
Sometimes, you may need to cite material contained in publications by companies and
from manuals. In such cases, there are no named individuals for authors. Use the format below:
Name of company or organisation, (year). Title in italics. Place of publication.
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For example:
Mathsoft Inc., (1999). Mathcad 2000 Reference Manual. Cambridge, MA.
Information from the WWW
Nowadays, much information can be obtained from the internet, typically websites but
sources include newsgroups and on-line forums. The format to use for such publications
is:
Name of Author(s) or company or organisation, (year), Title of article, URL, date found.
The URL (Uniform Resource Locator) is the full internet address of the article. Due to the
transient nature of on-line information, it is important to include the date when you found the information. For example:
Tham, M.T., (1997). Distillation: an introduction, http://lorien.ncl.ac.uk/ming/distil/distil0.htm, 30 May 2001.
Personal Communications
Sometimes, you may have used information passed on to you by a colleague or another
person, via a phone conversation; letter; email or other forms of communication. You
can, and should, include these in the reference list. The format to use is:
Name, (year). Personal communication, Affiliation of named person.
For example:
Blogg, J. (1996). Personal communication, University College London, UK.
That is about all, where the format for listing publications in the Reference list is
concerned. You should be aware that the material presented here is not exhaustive;
there are many variations. However, in the absence of other instructions, and as long as you are consistent, the guidelines presented above should be sufficient.
Tips
Include only those publications that you have cited.
If you use the number system, then the references are listed in the
order that they have been cited. On the other hand, if you cite
publications using the name-year system, the references should be
listed alphabetically.
Check the guidelines or regulations for your institution.
Be consistent in the presentation format for the various types of
publications.
Compile the reference list as you write the chapters of your dissertation
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NUMBERING AND CAPTIONS
Now let us get to the details about the format to use to number
chapters and sections in chapters
figures and diagrams
tables and lists equations
how to refer to them in the text, and the format for figure and table captions.
Chapters and Sections in Chapters
Each chapter of the dissertation should be assigned a number. For example, the first chapter,
Chapter 1. INTRODUCTION
or the literature review chapter,
Chapter 2. LITERATURE REVIEW
Chapter sections and subsections should also be assigned a numerical index. For example, the first section of Chapter 1 could be:
1.1 Statement of the Problem
while a subsection of Section 4 in Chapter 4 could be:
4.2.1 Simulation results
Notice the use of different cases in the 3 heading categories. The title of chapter is in
upper case (capitalised); the heading of a section has the first letter of key words in
upper case; while only the first letter of the first word in a subsection is capitalised.
These styles are used as visual cues to indicate the different levels of headings. Avoid
having more than 3 levels, e.g. 2.1.3.2, as they can make the text messy especially
when referring to them. If you need to categorise further, the contents of a subsection, use a different font style. Bold and underlined text is a popular format.
To refer to a particular chapter, use the formats given by the following examples:
Chapter 2 provides a review of work in this area.
The reason for this modification, stated in Chapter 3, ....
Notice that the word "Chapter" is written in full with a capital "C".
The following examples show how references are made to sections or subsections:
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The procedure outlined in Section 5.3 was employed to ...
Section 3.2.2 discussed the implication of ...
Here, the word "Section" with a capital "S" is used to refer to both sections and subsections; the latter being obvious from the numerical index.
When you compile the table of contents, include all heading levels and their titles. This is
another reason not to have more than 3 heading levels - the contents list becomes overly complex.
Figures and Diagrams
All figures and diagarms must be captioned and given a numerical index. Captions
should appear below the figure or diagram, and should be sufficiently descriptive without
being too long. Simply state what the illustration is showing and do any explaining in the
main text. Captions for figures and diagrams have the format:
Figure Chapter number.Figure number. Description.
The word "Figure" is used generically to cover all illustrations, e.g. drawings, flow charts,
sketches, etc. Spell out the word in full. Note too, the positions of the full-stops. The
numerical index is composed of the chapter number, a full-stop, followed by the figure
number, terminated with another full stop. Thus, the third illustration appearing in
Chapter 4 would have the caption:
Figure 4.3. Schematic of control system for the methanol-water column.
You may use the abbreviated form, "Fig.", when referring to illustrations if the reference appears in the middled of a sentence. For example:
The control scheme, shown in Fig. 4.3, is quite common.
Otherwise, write the word "Figure" in full, e.g.
Figure 4.3 shows a common control scheme for a distillation column.
Tables and Lists
All tables and lists, must be captioned and given a numerical index, and the numbering
style is identical to that used for figures and diagrams. Lists would include snippets of
computer code; step-by-step instructions or procedures. The captions should be placed
below each table and list. So, for example, the second table in Chapter 3 would have the caption:
Table 3.2. Performance measures obtained using the proposed procedure.
Abbreviations should not be used when referring to tables and lists - write out the word
"Table" in full, with a capital "T".
Advanced Case Studies, Emerging Trends, Articles
Level CPA Final-II Subject Code FP601 Exam
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172
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Equations
"Equations" is used to mean mathematical as well as chemical expressions. Each major
equation should be assigned a numerical index, with the following format: (Chapter number.Equation number). The following shows equation number 6 in Chapter 4.
A = 2B + C (4.6)
Use the following rules when referring to equations.
When a sentence starts with the word "Equation", write it out in full followed by
the numerical index
Otherwise use either the abbreviation "Eq." or "Eqn.", making sure that you
maintain consistency throughout the dissertation. When referring to a collection of equations, use the corresponding plural forms, i.e. "Eqs." or "Eqns."
For example:
Equation (5.1) shows the effect of ...
Substituting Eq.(3.3) into Eq.(3.7) yields ...
The process model, given by Eqs.(4.4) to (4.10), ...
When referring to equations in text contained within parentheses, you need not enclose the equation's numerical index within parentheses. For example:
The process model, (Eqs. 4.4 to 4.10), ...
is much neater than:
The process model, (Eqs.(4.4) to (4.10)), ...
In Summary ...
Again, you should check your institution's guidelines and regulations concerning the
presentation and layout styles for dissertations and theses. Where numbering and caption styles are concerned, the key thing to remember is to be consistent.
Tips
Some word-processors have a tool to keep track of figure and table
captions as well as equation numbers. If present, the tool can also
generate lists which you can use in the sections following the Table of
Contents [see Structure]. Learn to use this well as it can save you a
lot of time and effort.
If the word-processor you are using does not have this capability, you
should maintain the lists as you write.
Advanced Case Studies, Emerging Trends, Articles
Level CPA Final-II Subject Code FP601 Exam
Exam Hours
100 Marks
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173
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FINAL REMARKS
The dissertation is a testament to your research efforts. In research degree
programmes, it is the only tangible output upon which you will be assessed, and in most
cases, the dissertation is probably your first major publication. To ensure that you do justice to yourself and your work,
plan the structure well
be consistent in the format, layout and presentation
maintain threads between all parts of the dissertation
justify all assumptions and define all symbols and acronyms - never expect the
reader to "read between the lines"
be aware of important milestones and achievements in your field of research, and
keep up to date with developments
try as much as possible to write in the active voice and be authoritative
use clear and simple language to explain concepts and present arguments - keep
sentences reasonably short and do not try to impress by using bombastic words
use a spell checker but be aware of its limitations
be critical when analysing results and be objective when making comparisons
be aware of your contributions and the impact that your work has in your research field
Writing a dissertation is a substantial undertaking. This series of pages has hopefully
made the task less stressful and bewildering. Bearing in mind that different institutions
may have dissimilar requirements, you should consult your project supervisor or thesis advisor for more specific guidance.
Remember - to be able to finish a dissertation, you must start writing it. Good luck!
RESOURCES AND TOOLS
Writing Skills Resources on the WWW
A collection of links to Writing Skills resources
Books
Kirkman, J. (1996). Good Style - writing for science and technology. E & FN SPON, London.
Turk, C. and Kirkman, J. (1996). Effective Writing - improving scientific, technical and business communication. 2nd Edition, E & FN SPON, London.
Tools
WordWeb is a standalone Thesaurus and Dictionary which is available for free at http://www.wordweb.co.uk