Syllabus 2009 10

Contents
INTRODUCTION 3
FOUNDATION 5
M odu le A
Paper A1 Functional English 7

Paper A 2 Quantitative Methods 9
M odu le B
Paper B 3 Introduction to Economics and Finance 12
Paper B 4 Introduction to Financial Accounting 15
Paper B 5 Mercantile Law 19
INTERMEDIATE 21
Module C
Paper C 6 Financial Accounting 23

Paper C 7 Taxation 26
Paper C 8 Business Communication and Behavioural Studies 29
Module D
Paper D 9 Company Law 32

Paper D 10 Cost Accounting 34
Paper D 11 Auditing 37
Paper D 12 Information Technology 40
FINAL 49
Module E
Paper E 13 Information Technology Management, Audit and Control 51

Paper E 14 Advanced Accounting & Financial Reporting 58
Paper E 15 Corporate Laws 61
Paper E 16 Business Management 66
Module F
Paper F 17 Management Accounting 72

Paper F 18 Business Finance Decision 77
Paper F 19 Advanced Taxation 81
Paper F 20 Advanced Auditing 83
The Institute of Chartered Accountants of Pakistan

INTRODUCTION
The Institute of Chartered Accountants of Pakistan has tailored its syllabus
keeping in view the latest developments in the accounting profession worldwide.
The Chartered Accountancy courses do not only comprise of the core areas of
accounting but also encompass other relevant areas such as taxation, law,
business management, business finance decision and information technology.
Therefore, our professionals are not only sound in technical knowledge but are
also equipped with the right set of management skills to express their unique
potential, exchange innovative ideas, disseminate prompt and accurate
information and establish leading standards to achieve greater success in
business.
The syllabus booklet aims to explain these areas of study through a detail and
precise description of syllabus of all subjects in the Foundation, Intermediate and
Final Stage Examinations. This would define the study route that the student
needs to follow to study fo his/her examinations.
Students should be consciously aware of their learning abjective right from the
start of their professional studies at the Foundation level. Similarly,. the teachers
at all levels of studies for prospective Chartered Accountants should ensure that
the learning outcomes of all syllabi are aimed not only towards awareness and
completion of the subject but more importantly towards application in each and
every area of the syllabus coverage.
LAYOUT OF THE BOOKLET

Syllabus
The syllabus for each subject is bifurcated into:
© Introduction
© Indicative Grid
© Contents
Please note that the weightages given in the indicative Grid are for guidance
purposes only and some deviations in setting of paper could be expected.
Recommended Reading
The individual syllabi are followed by a list of Recommended Reading which
contains:
© Reference Books
© Supplementary Study Materials
Students are advised to take caution while studying from Supplementary Study
Material that the edition is latest and covers the syllabus contents.
F O U N D AT I O N
Challenges are what make life interesting; overcoming them what makes life meaningful.
(Joshau J. Marine)
Foundation Examination Functional English
Module A
PA PE R A 1 : F u n c t io n a l E ng l is h (100 marks)
Objective
The objective of this syllabus is to help students communicate effectively in English language through
proper usage of vocabulary & knowledge of English grammar.
Indicative Grid
Syllabus Content Area Weightage
1. Vocabulary 10
2. Practical use of Grammar 40
3. Composition and Comprehension 50
Total 100
Note: The weightages given above are for guidance purposes only and some deviations in setting
of papers could be expected.
Contents:
1. Vocabulary
a. Frequently confused words c. Phrases, synonyms, antonyms, idioms
b. Frequently misused words d. General vocabulary
2. Practical Use of Grammar

a. Grammar b. Sentences
i. Nouns vi. Prepositions i. Types of sentences

ii. Pronouns vii. Conjunctions ii. Parts of sentences
iii. Verbs viii. Articles iii. Rules for structuring sentences
iv. Adjectives ix. Interjections iv. Phrases √ Types and functions
v. Adverbs x. Tenses v. Clauses √ Types and functions
vi. Direct and Indirect Speech
vii. Active & Passive Voice
The Institute of Chartered Accountants of Pakistan 7

Foundation Examination Functional English
c. Punctuation d. Writing Mechanics
Periods, Question Marks, Exclamation Capitals, Abbreviations

marks, Semicolons, Colons, Commas,
Apostrophes, Quotation Marks
3. Composition and Comprehension

a. Story writing from outlines d. Essay writing
b. Letter writing (informal and formal) e. Comprehension
c. Précis writing
Recommended Reading
PAPER A 1: Functional English
Book Name & Author About the Book
1. High School √ English Grammar & This is a very useful book on grammar and
Composition by Wren and Martin. composition and helps a lot in building a
strong foundation for the language.
}
2. Learners Companion Series Vocabulary
by George Davidson. These books are very useful on vocabulary and
help immensely in vocabulary building.
3. Word Power Made Easy by Norman Lewis.
}
4. Understand & Communicate (book 2 and
3) published by FEP International (Pvt.)Ltd. These are very useful books on grammar and
comprehension.
5. Concepts (book 3 and 4) by P.C. Wren.
Supplementary Study Material

1. Functional English Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Functional English Study Text and Revision Series by Professional Business Publications (PBP).
3. Précis writing by R. Dhillon.
4. System»s Student Companion English for lower secondary schools by Magdalene Chew &
Surinder Kaur.

Foundation Examination Quantitative Methods
Module A
PA PE R A 2 : Q u a n t it a t iv e M e t h o d s (100 marks)
Introduction
The role of an accountant has changed over the years; it has become imperative for him to have
knowledge of various Mathematical and Statistical Techniques, which are being used in Financial
Analysis and Decision Making. The latest research carried out in the above areas is mostly based on
such techniques. The syllabus includes topics which the students will use not only in their later studies
but throughout their career.
Objective
The objective of the course is to train the students in the use of Quantitative Techniques in business
and finance. The students are required to gain thorough theoretical knowledge of the subject and
understanding of the application of such knowledge.
Indicative Grid
M a the m at ic s
1. Basic Mathematics
2. Financial Mathematics
50
3. Calculus
4. Matrix and Determinants
S ta ti s tic s
5. Statistical Methods
6. Methods of Least Square & Regression 50
7. Probability & Probability Distribution
8. Sampling & Decision Making
Total 100

Contents:
1. Basic Mathematics
Rates, ratios, percentages; discounts, markup, markdown; indices, exponential and logarithmic
functions.Use of brackets, simplification rules, co-ordinate system, concept of equation, gradient,
equation of straight line, application of straight line in business and economics; simultaneous equations;
quadratic equations; factorization of equations including factorization by completion of squares,
arithmetic progression and geometric progression.
2. Financial Mathematics
Simple interest, present and future values; discounting notes; bank discount; compound interest and
annuities; sinking funds, present value; perpetuities; effective rate of interest.
(Note: The students should be able to use both formulas as well as mathematical table)
3. Calculus
Techniques of differentiation; sum, difference, product and quotient rules of differentiation. Marginal
function, calculation of revenue, cost & profit of marginal unit. Use of second order derivatives; maxima,
minima and point of inflexion.
4. 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 solution, alternative optimum solution, unbounded solutions and redundant
constraints.
5. 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.
6. Methods of Least Square and Regression

Scatter diagram, linear relationship, simple linear regression lines by method of least square. Simple
linear correlation, Coefficient of correlation, determination and interpretation. Rank correlation
7. Probability and Probability Distribution

Counting techniques, probability, addition law for mutually exclusive and not mutually exclusive events.
Multiplicative laws for dependent and independent events. Binomial, Poisson, hypergeometric and
normal distribution.
(Note: The students should be able to use both formulas as well as mathematical tables)
8. Sampling and Decision Making

Simple random sampling, sampling distribution of mean, standard error of mean. Sampling with and
without replacement. Testing of hypothesis for population mean, difference between population means,

population proportion, difference between two population proportions, single population variance and
test of association through z, t and Chi-square. Confidence interval for estimating population mean.
Population and variance. Difference between means, proportion and difference between proportion and
population variance. Problems of determination of sample size for the study of population mean and
proportion.
Note: Although the use of scientific calculators is allowed, the use of programmable calculators/
devices is not allowed. (Refer our website ww.icap.org.pk for list of permissible calculators)
Recommended Reading
PAPER A 2: Quantitative Methods
Mathematics
1. Mathematics
Applied Mathematics
for Business and
for Finance
Business,
by It»s abook
The very covers
useful book
almostand
all cover
the topics
mostwith
of the
Hamid A Hakeem
Economics and the Social Sciences by easy examples
topics of syllabus.
and is a good question bank.
Frank S. Budnick.
2. Business Mathematics by M. M. Hasan and The book is specifically written for students of
2. M. A. Mirza for Business and Finance by
Mathematics finance
The bookand
covers
management
almost alland
the covers
topics with
the easy
Hamid A Hakeem. entire syllabus.
examples and is a good question bank.
3. Business Mathematics
Mathematics for Business
by M.
andM.Economics
Hasan and The book
book is
is useful
specifically
for Finance
writtenMathematics.
for students of
by A.
M. Robert
Mirza.
H. Nicholson. finance and management and covers the entire
syllabus.
4. Mathematics for Business and Economics The book is useful for Financial Mathematics.
by Robert H. Nicholson.
Business Statistics
1.
5. Introductory Statistics
Mathematics for Business
for and
Economics
Finance by
and The book covers almost
the entire
all syllabus
the topicsand
withis very
Hamid A Hakeem
Management by Hamid A Hakeem. easy examples
useful covering and
theoretical
is a good as question
well as practical
bank.
aspects of statistics.
6. M.
Statistics
A. Mirza Concepts and Methods by The finance
book
and management
is very useful and covers
for conceptual
the
Khursheed Alam. entire syllabus. of statistics.
understanding
3.
7. Introduction to
Mathematics forStatistics
Business(Third
and Economics
edition) by The book
bookis useful
is very
for Finance
useful Mathematics.
especially for:
by Robert
Ronald E. Walpole.
H. Nicholson. probability, normal distribution and hypothesis
testing.

1. Quantitative Methods Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Quantitative Methods Study Text and Revision Series by Professional Business

Publications (PBP).

Foundation Examination Introduction to Economics & Finance
Module B
PA PE R B 3 : I n t r o d uc t io n t o E c o n o m ic s & F in a n c e (100 marks)
Introduction
The object of the course is to enable candidates to equip themselves with the main economic concepts
and their use, relevance in economic analysis and as an introduction to the economic environment of
trade, industry and banking as well as to methods of analysis relevant to the study of financial decisions.
Indicative Grid
1. Economic Concepts 10
2. Microeconomics 40
3. Macroeconomic 50
Total 100
Contents:
1. Economic Concepts
a. Basic concepts;
b. Natural resources, labour, capital and enterprise;
c. Allocation of scarce resources √ production, distribution and consumption;
d. Production possibility frontier and the opportunity cost;
e. Key characteristics of market economy, planned economy and mix economy;
f. Microeconomics and Macroeconomics.
2. Microeconomics
a) Concept of Market b) Theory of the Firm
i. Market forces of demand and supply; i. Production function and isoquants;

ii. Demand and supply; ii. Cost, revenue and profits;
iii. Equilibrium of demand and supply; iii. Maximization of profits;
iv. Elasticity of demand and supply; iv. Cost and revenue curves;
v. Utility analysis and indifference curve; v. Distinction between long run and short
vi. Consumer, producers and efficiency of run assumptions;
market. vi. Equilibrium of firm under perfect
competition, monopoly, oligopoly and
monopolistic conditions.

c) Factors of Production
i. Laws of returns;
ii. Pricing of factors of production
iii. Marginal productivity theory.
3. Macroeconomics
a. National Income
i. Circular flow of income;

ii. Measurement of national income including knowledge of basic concepts like GDP, GNP, NNP;
iii. Marginal propensity to consume and save;
iv. Consumption, saving and investment functions;
v. Multiplier and accelerator;
vi. Equilibrium of national income;
b. Government and the Economy
i. Fiscal Budget
ii. Unemployment;
iii. Inflation;
iv. Growth, price stability and employment;
v. Recession
c. Fiscal Policy
i. Direct and indirect taxation;

ii. Principles, methods and forms of taxation.
d. Money & Monetary Policy
i. Types of money;
ii. Value of money;
iii. Nature and functions of money;
iv. Definitions of banking, banking system and its institutions;
v. Financial intermediaries;
vi. Role of State Bank;
vii. The supply of money and interest rate policy.
e. Capital
Role of the money and capital markets.
f. International Trade
i. Trade and balance of payments;

ii. Foreign exchange rates (floating and fixed exchange rates) their nature, function and
determination;
iii. Trade and its determinants;
iv. Markets and demand for imports and exports;
v. Open Economy (Basic concept)
vi. Introduction to World Trade Organization

Recommended Reading
PAPER B 3: Introduction to Economics and Finance
1. Mathematics
Modern Economic
for Business
Theory by
andK.Finance
K. Dewett.
byThe book covers
covers all
almost
topicsallofthe
syllabus,
topics with
written in
Hamid A Hakeem easy examples
simple and plainand language.
is a good question
It is especially
bank.
useful for micro economics.
2. M. A. Mirza to Economics & Finance by
Introduction finance
The book
and ismanagement
specificallyand written
coversfortheICAP»s
Abdul Haleem Khawaja. entire syllabus.
students and contains all syllabus areas. It is
especially recommended for macro economics.
3. Mathematics for Business and Economics The book is useful for Finance Mathematics.
3. by Robert H.byNicholson.
Economics Samuelson and Nordhaus. The book covers almost all topics of syllabus in
detail.
4. Macro Economics by Paul Crompton, This book covers the entire syllabus contents
Michael Swann, Sandra Hopkins, and includes case study questions which will
William A. McEachen. help students in studying the subject with a
practical point of view.
5. The Monetary and Financial System by The book discusses all the relevant topics at an
David Goacher. introductory stage in simple language.

1. Introduction to Economics & Finance Study Text and Revision Series by AT Foulks Lynch
Pakistan.
2. Introduction to Economics and Finance Study Text and Revision Series by Professional Business
Publications (PBP).
3. First Principles of Economics: by Richard G Lipsey and Colin Hardbury.
4. Stanlake»s Introductory Economics: by SJ Grant.

Foundation Examination Introduction to Financial Accounting
Module B
PA PE R B 4 : I n t r o d uc t io n t o F i n a n c ia l Ac c o un t i n g (100 marks)
Objective
The objective of this course is to enable candidates to understand fundamentals of accounting theory;
apply theory to basic financial accounting and prepare accounting statements of sole proprietorships
and partnerships. To develop knowledge and understanding of financial statements and the techniques
used to prepare financial statements including necessary underlying records.
Indicative Grid
1. Introduction to business and accounting theory 10
2. Financial accounting practices 35
3. Receipt and payment accounts, income and expenditure 20

accounts and preparation of accounts from incomplete
records
4. Other specialized areas 35
Total 100
Contents:
1. a) Introduction to business and accounting theory
i. Definition and scope of business; iv. Types of finances including

ii. Economic setup of business; w Long term finance;
iii. Organization structures; w Short term finance;
w Sole proprietorship;
w Partnership (its merits and demerits);
w Limited Companies (their advantages
and disadvantages);

v. Commercial Banks; x. Marketing channels;

vi. Stock Exchange w Sole Distributors;
vii. Insurance Companies; w Wholesalers and;
viii. Procurement and production of goods; w Retailers.
ix. Marketing and sales;
b) Accounting Theory
i Fundamental accounting concepts including: ii Financial statements;
w Accrual basis w Components

w Consistency w Responsibility
w True and fair view w Presentation
w Materiality w Users of financial statements;
w Prudence
w Completeness iii Asset valuation alternatives;
w Going Concern
w Substance over form w Historical cost;
w Fair value;
w Net realizable value;
w Replacement cost;
2. Financial accounting practices
a) Accounting Records c) Adjustments before Final Accounts
i. Petty cash book and imprest system; i. Methods and recording of

ii. Cash books (including transactions depreciation on Fixed Assets;
with banks and their documentation); ii. Provisions for bad debts/ write off;
iii. Sales journal and the sales ledger; iii. Provisions for discounts on debtors;
iv. Purchase journal and the purchase iv. Prepayments and accruals;
ledger; v. Inventory adjustments
v. General journal; vi. Bank reconciliation and related
vi. General ledger adjustments;
vii. Computerized Accounting vii. Control accounts reconciliation and
adjustments
b) Introduction to Double Entry viii. Errors in trial balance
ix. Suspense accounts
i. Double entry System, Accounting x. Other adjustments;
Equation and Rules of Debit & Credit
ii. Concept of capital and revenue d) The Final Accounts of Sole Traders &
expenditure; Partnership
iii. Concept of liability and income
iv. Effect of profit or loss on capital; i. Statement of financial position
v. Balancing of accounts; ii. Statement of comprehansive income
vi. Trial balance; iii. Cash flows statements

3. Receipt and payment accounts and accounts from incomplete records

a) Receipt and payment accounts;
b) Income and expenditure accounts;
c) Preparation of accounts from incomplete records.
4. Other specialized areas

a) Accounting for inventories (IAS-2)
i Cost formulas (LIFO/ FIFO/ weighted average cost);

ii Cost of inventories (cost of purchase, cost of conversions, other costs);
iii Measurement of inventories (lower of cost or Net realizable value);
iv Presentation of inventories in financial statements.
(Note: Cost Ac co un ting t ec hniqu es will no t be te ste d at th is sta ge )
b) Accounting for property, plant and equipment (IAS-16)
i Initial measurement of property, plant & equipment (components of cost, exchange of

assets);
ii Subsequent costs;
iii Depreciation √ Unit of measure, depreciable amount, depreciation period and
depreciation method
iv Derecognition
c) Branch accounts (excluding foreign branches);
d) Treatment of the following in partnership accounts:
i Admission;
ii Retirement / death of partner (excluding life insurance policies, annuities etc);
iii Goodwill.
Note:
Reference to IAS shall be deemed to have been changed whenever the same is replaced by a
new reporting standard.

Recommended Reading
PAPER B 4: Introduction to Financial Accounting
1. Accounting √ The Basis of Business The book is very useful for conceptual
Decisions by Meigs William Haka Bettner. understanding.
2. Modern Accountancy (Volume 1) by The book covers substantial part of the syllabus
Mukherjee & Hanif. and is very useful for: final accounts of sole
traders and partnership, receipts and payments
accounts, accounts from incomplete records,
branch accounts, and syllabus topics of
partnership.
3. Business Accounting by Frank wood and The book contains almost all syllabus areas
Alan Sangster. and is recommended for: accounting theory,
financial accounting practices, branch
accounts, syllabus topics of partnership etc.
4. Gripping IFRS Vol.I published by ICAP. Chapters related to inventories (IAS-2) and
fixed assets (IAS-16) may be studied from this
book.
5. Framework for the preparation and The book contains detailed material including
presentation of financial statements and background, rationale and practical examples
International Accounting Standards(1, 2 of various topics included in the syllabus.
and 16) issued by IASB and is published by
ICAP as IFRS Bound Volume 1.

1. Introduction to Financial Accounting Study Text and Revision Series by AT Foulks Lynch
Pakistan.
2. Introduction to Financial Accounting Study Text and Revision Series by Professional Business
Publications (PBP).

Foundation Examination Mercantile Law
Module B
PA PE R B 5 : M e r c a n t i le L a w (100 marks)
Objective
The syllabus aims to enable the students to develop a professional approach towards matters
connected with Mercantile Law in the performance of their duties as Chartered Accountants.
Indicative Grid
1. Introduction to legal system
2. Contract Act 1872 40
3. Partnership Act 1932

30
4. Negotiable Instruments Act 1881
5. Sale of Goods Act 1930

6. Trust Act 1882 30
7. Carriage of Goods by Sea Act 1925
Total 100
Contents:
1. Introduction to Legal System 5. Sale of Goods Act 1930

Sources of law; process of legislation; and All Sections
the legal system in Pakistan
2. Contract Act 1872 6. Trust Act 1920

Duties and Liabilities of Trustees; Rights,
All sections
powers and liabilities of the beneficiary;
Revocation of Trust
3. Partnership Act 1932
All Sections 7. Carriage of Goods by Sea Act 1925
All Sections
4. Negotiable Instruments Act 1881
All Sections

I N T E R M E D I AT E
Clear your mind of can’t
(Samuel Johnson)
Intermediate Examinations Financial Accounting
Module C
PA PE R C 6 : F i na nc ia l Ac c ou n t i n g (100 marks)
Objective
This course is designed to provide understanding of accounting methods and procedures as followed
by business organizations. It systematically covers the accounting process of classification,
summarization, presentation in the light of established accounting practices and application of
principles set out by International Accounting and Reporting Standards in the preparation of financial
statements.
The course is built on the basic accounting techniques covered in Paper B 4 and is designed to develop
and broaden the knowledge and understanding of more financial accounting concepts.
Indicative Grid
1. Accounts of limited companies 25
2. Specialized accounting treatments 40
3. Other accounting and reporting issues 35
Total 100
Contents:
1. Accounts of limited companies
a) Accounting and preparation of Financial Statements of limited companies in line with the
requirement of the Companies Ordinance, 1984 and International Financial Reporting
Standards (referred to at the end of syllabus); (excluding liquidation. reconstruction, merger
and consolidation);
b) Significant accounting ratios and their relationship.
2. Specialised accounting treatments

a) Accounting for Income Taxes
i Current year tax;

ii Prior years tax;
iii Deferred tax.

Intermediate Examinations Financial Accounting
b) Accounting treatment of tangible and intangible assets including their recognition,

derecognition, depreciation / amortization and subsequent remeasurement (revaluation,
impairment, fair value etc);
c) Accounting treatment of contingent losses and contingent gains;
d) Related party disclosures;
e) Revenue Recognition
3. Other accounting and reporting issues

a) Conversion of partnerships to a limited company and merger of firms;
b) Accounting treatment of profit and loss for the period including:
i Changes in accounting policies;
ii Changes in accounting estimates and errors;
iii Events occurring after the balance sheet date;
c) Recognition of borrowing costs.
d) Accounting for leases
The IFRS included in Syllabus are:
IAS √ 1 IAS √ 2 IAS √ 7 IAS √ 8 IAS √ 10

IAS √ 12 IAS √ 16 IAS √ 17 IAS √ 18 IAS √ 23
IAS √ 24 IAS √ 36 IAS √ 37 IAS √ 38
Note:
1. All items included in the syllabus of Introduction to Financial Accounting paper of Module B
may again be tested in the above paper.
2. To encourage proper understanding and application of knowledge no questions requiring
word by word reproduction of contents of IASs \ IFRS will be asked.
3. Reference to local and international pronouncements shall be deemed to have been changed
whenever the same is replaced by a reporting standard.

Intermediate Examinationss Financial Accounting
Recommended Reading
PAPER C 6: Financial Accounting
1. Gripping IFRS Vol.I published by ICAP. The book contains useful material on various
IASs/IFRS with examples.
2. Gripping IFRS Graded Question published The book contains useful question bank on
by ICAP. various IASs/IFRS.
3. Framework for preparation and presentation The book contains detailed material including
of financial statements and International background, rationale and practical examples
Accounting Standards (listed in syllabus) of various topics included in syllabus.
published by ICAP as IFRS Bound Volume 1.
4. IFRS Practical Implementation Guide and It contains interpretation of IFRS with practical
Workbook (Wiley Series) by Abbas Ali examples.
Mirza, Graham J. Holt and Magnus Orrell
(Relevant topics).
5. Companies Ordinance, 1984; (Fourth & Preparation of financial accounts of a limited

Fifth Schedules and provision related to company is regulated by the Companies
preparation of accounts of limited Ordinance 1984 and therefore it is necessary to
companies). study it to understand the disclosure
requirements.
6. The following books by Javed H. Zuberi: Each book explains the concerned topic in
i. Company Accounts context of accounting treatment prescribed by
ii. Preparation and interpretation of IASs.
financial statements
iii. Cash Flow Statements
iv. Accounting for leases

1. Financial Accounting Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Financial Accounting Study Text and Revision Series by Professional Business Publications
(PBP).
3. Published financial statements of listed companies.

Intermediate Examinations Taxation
Module C
P AP ER C 7 : T a x a t i o n (100 marks)
Objective
The aim of this paper is to develop basic knowledge and understanding in the core areas of Income
Tax and its chargeability as envisaged in the Income Tax Ordinance 2001 and the Income Tax Rules
2002 (relevant to the syllabus), Sales Tax Act 1990 and the Sales Tax Rules (relevant to the syllabus).
Indicative Grid
1. In co me T ax
a. Basic concepts of taxation 15
b. Heads of income, Computation of income,
Determination of tax liability 40
c. Types of persons and their taxation 10

d. Procedures and Administration
e. Income Tax Rules 2002 10
2. Sales T ax
Prescribe chapters of Sales Tax Act and Rules. 25
Total 100
The weightages given above are for guidance purposes only and some deviations in setting
Note:
a. Finance Act / Ordinance, Notifications and circulars issued within a period of less than 4
months from the date of examination shall not be tested
b. Chapters, Parts and Divisions not mentioned here specifically are excluded from the syllabus.
However, it is clarified to eliminate any ambiguity that if only a chapter is mentioned it includes
all parts and if only a part is mentioned it includes all divisions.
c. The weightages given above are for guidance purposes only and some deviations in setting of
papers could be expected.
d. Students are not expected to remember the tax rates. Same if applicable shall be given in the
question paper.

Contents:
1. Income Tax Ordinance 2001
a Basic concepts of taxation
i. Chapter I Preliminary (concepts of terms defined)
ii. Chapter II Charge of tax (excluding section 7)
iii. Chapter IV Common rules (Part I & II)
b. Heads of income, Computation of income, Determination of tax liability

i. Chapter III Tax on taxable income (excluding Sec
29A, 30 & 31)
ii. Chapter IX Minimum tax
iii. Chapter X Part V Advance tax and deduction of tax at source
iv. Chapter XII Transitional Advance Tax provisions
c. Types of persons and their taxation

i. Chapter V Part I Central concepts
ii. Chapter V Part II - Div I Individuals
iii. Chapter V Part III Association of persons
iv. Chapter VII Part II Taxation of foreign-source income of
residents
d. Procedures and Administration
i. Chapter X Part I Returns
ii. Chapter X Part II Assessments
iii. Chapter X Part III Appeals including Alternative Dispute Resolution
iv. Chapter X Part IV Collection and recovery of tax (Sections 137 to 140)
v. Chapter X Part VIII Audit (Section 177)
vi. Chapter XI Part I Administration √ General (excluding section 224 to 227)
e. Income Tax Rules 2002
The rules related to the above chapters of the Income Tax Ordinance 2001 shall also be examined
2. Sales Tax Act 1990

i. Chapter I Preliminary (concepts of terms defined)
ii. Chapter II Scope and payment of tax
iii. Chapter III Registration
iv. Chapter IV Book keeping and invoicing requirements
v. Chapter V Returns
vi. The following rules (excluding annexure and forms) of the Sales Tax Rules √ 2006 related to
the relevant chapters of the Sales Tax Act may be examined. Rules other than the following
shall not be examined at this stage:
w Chapter I Registration, Voluntary registration and De-registration
w Chapter II Filing of returns
w Chapter III Credit and Debit Note and Destruction of Goods
w Chapter IV Apportionment of Input Tax

Recommended Reading
PAPER C 7: Taxation
}
1. Complete Income Tax Law by S. A. Salam.
Bare Act, Rules, Notifications; Circulars etc. on
2. Law & Practice of Income tax by syllabus topics are included in these books with
Dr. Ikram-ul-Haq. brief explanations.
3. Sales Tax Ready Reference by S. A.Salam. Bare Act, Rules, Notifications; Circulars etc. on
}
syllabus topics are included in the book with
brief explanations.
4. Synopsis of taxation by Mirza Munawar
Hussain. These books are very useful for understanding
practical application of taxation.
5. Pakistan income tax law Principles and
Practice by Mian Safiullah & Kashif Aziz
Jahangiri.
6. Khalid Petiwala»s Notes Income Tax and The book provides summarized notes to the
Sales Tax. students which will help them at the time of
revision. The book also includes practical
Questions and original income tax ordinance
and rules & sales tax act and rules.

Intermediate Examinations Business Communication & Behavioural Studies
Module C
PAPE R C 8 : Bu s ine s s C om m un ic at io n & Be h av io ur a l S tu di es (100 marks)
Objective
The course aims to introduce students to the key concepts of business communication and their
application. The course also intends to incorporate an understanding of the concepts of organizational
behaviour to develop problem solving skills, negotiation skills and leadership qualities in the students.
Indicative Grid
1. Principles of Effective Business Communication 25
2. Communication methods and skills 40
3. Organizational Behavior 35
Total 100
Contents:
1. Principles of Effective Business Communication
a. Introduction
i Concepts and benefits of effective communication

ii. Components of communication including effective listening
iii. Problems of communication
b. Basic Principles of Business Communication
Seven C»s of effective communication
c. Interpersonal Communication (IPC)
i. Universals of IPC
ii. Axioms of IPC
iii. Types of IPC

2. Communication Methods and Skills

a. Business Messages
i. Planning before communication

ii. Basic organizational plans
iii. Appearance and design
iv. Letters to customers
v. Circular letters
vi. Job application and Curricular Viatea (Résumé)
vii. Good news messages & bad news messages
viii. Persuasive messages
ix. Business letters, memos, faxes and e-mail
b. Meetings
Preparation of Agenda, Notice and Minutes of meetings
c. Report and proposal writing
i Short report
ii. Long report
iii. Proposals
3. Organizational Behaviour (OB)

a. Introduction
i. Approaches to Organizational Behaviour

ii. Definitions and characteristics of OB
iii. Challenges faced by the management √ Globalization, Information Technology,
Diversity and Ethics
b. Organizational processes
i. Organizational structure & design (principles of organization, different ways of structuring

organization)
ii. Organizational Change (nature of change process, resistance to change)
iii. Organizational culture (concept, dysfunctional aspect of culture)
c. Individual Behaviour
i. Perception
ii. Attitude
iii. Job Satisfaction
iv. Job Stress

d. Motivation
i. Types of Motivation
ii. Theories of Motivation
iii. Applications √ Job Design
iv. Goal setting and Management by Objectives (MBO)
v. Management by Exception (MBE)
e. Leadership
i. Type of Leadership
ii. Theories of Leadership
iii. Applications √ Roles, Activities, Skills of Leaders
iv. Group Dynamics and teamwork (types of groups, group formation, group structure, individual
in groups, team work)
f. Conflict and Negotiation
i. Levels of Conflict
ii. Conflict Resolution
iii. Negotiation & Stages of Negotiation
iv. Peculiar Negotiation Situations
Recommended Reading
PAPER C 8: Business Communication and Behavioural Studies
1. The Effective Business Communication by The book covers substantial part of the syllabus
Herta A Murphy, Herbert Hildebrandt, Jane area of business communication.
P. Thomas.
}
2. Organizational Behavior by Stephen P.
Robbins. These are very useful books for understanding
the theoretical and practical aspects of
3. Organizational Behavior by Fred Luthans. organizational behavior.

1. Business Communication and Behavioral Study Text and Revision Series by Professional
Business Publications (PBP).
2. Business Communication and Behavioral Study Text and Revision Series by AT Foulks Lynch
Pakistan.

Intermediate Examinations Company Law
Module D
P AP E R D 9 : C O M PA N Y LA W (100 marks)
Objective
This course aims to provide candidates with knowledge of the Companies Ordinance, 1984 and to
develop amongst them an understanding of their application to corporate and other business
environment, excluding advanced topics such as provisions relating to arbitration, arrangements and
reconstruction, prevention of oppression and mismanagement, winding up etc. that are covered at the
Final Examination stage.
Indicative Grid
1. The Companies Ordinance, 1984 √ Sections 1 to 51
20
2. The Securities and Exchange Commission of Pakistan
Act, 1997
3. The Companies Ordinance, 1984 √ Sections 52 to 136 25
4. The Companies Ordinance, 1984 √ Sections 142 to 262 55
Total 100
Contents:
1. The Compani es Or dinanc e, 1984 √ Se ctions 1 to 51
a. Part I; Preliminary (concepts of terms defined)
b. Part II; Jurisdiction of courts
c. Part III; Section 12 and Section 13
d. Part IV; Incorporation of companies and matters incidental thereto
e. First schedule to the Companies Ordinance, 1984

Intermediate Examinations Company Law
2. The Se curi ti es a nd Ex cha nge Commis sion of P ak is ta n Act, 1997

a. Part V; Prospectus, allotment, issue and transfer of shares and debentures, deposits,
etc.
b. Part VI; Share capital and debentures.
c. Part VII; Registration of mortgages, charges etc.

a. Part VIII Management and Administration (excluding investigation & related matters)
b. Third Schedule to the Companies Ordinance, 1984
Recommended Reading
PAPER D 9: Company Law
1. Complete Company Law S. A. Salam Bare Law and brief explanation thereon are
(Relevant topics). included in the book.
2. Practical Approach to the Companies The book is useful for understanding practical
Ordinance, 1984 by Nazir Ahmed Shaheen application of law.
(Relevant topics).

1. Company Law Study Text and Revision Series by A T Foulks Lynch Pakistan.
2. Company Law Study Text and Revision Series by Professional Business Publications (PBP).

Intermediate Examinations Cost Accounting
Module D
PA PE R D 10 : Co s t A c c o u nt in g (100 marks)
Objective
The course is designed to equip candidates with fundamentals of accounting for material, labour and
manufacturing expenses; an understanding of the importance of the role of cost accounting in planning
and controlling the wide range of organizational and manufacturing cost. The students are expected to
acquaint themselves with a comprehensive knowledge of established practices of cost accumulation
methods and learn the application of this knowledge to basic planning, control and decision making.
The course also covers job order, process costing and standard costing systems.
Indicative Grid
1. Cost Concepts, Uses and Classification
2. Elements of Cost Accounting
i. material 40
ii. labour
iii. overhead
3. Costing Systems 30
4. Cost Behaviour
5. Planning and Control 30

6. Decision Making
Total 100
Contents:
1. Cost Concepts, Uses and Classification
a. The nature and scope of Cost Accounting; Sources of Cost data
b. Definition of and distinction between financial accounting, cost accounting and management
accounting
c. The concept of ≈Cost∆ for different types of entities
d. Cost classification

2. Elements of Cost Accounting

a. Material
i. Material purchasing, receiving and issuing procedures and its documentation

ii. Inventory recording system (Perpetual and Periodic)
iii. Basis of valuation √ Cost formulas
iv. Stock taking, Reconciliation of Bin Card and Stock Card, and adjustments for inventory
differences
v. Valuation of inventory at lower of Cost and NRV
vi. Economic Order Quantity and Inventory Levels
vii. Segregation of material for selective control (ABC Plan)
b. Labour
i. System and documentation

ii. Basis for Labour Cost Control
iii. Labour turnover, Productivity and Efficiency measurement
iv. Accounting entries for payroll and statutory deductions
v. Wage incentive plans (piece work plan, bonus and group bonus plans)
c. Overheads
i. Manufacturing expenses √ actual and applied

ii. Over or under applied overhead
iii. Concept of production & Service Departments
iv. Basis of apportionment and allocation of service department overheads to production
department
3. Costing Systems
a. Fundamentals of Cost Accounting Information System
b. Manufacturing Cost Accounting Cycle
c. Chart of accounts
d. Factory Ledger and accounting entries
e. Reconciliation of Cost and Financial accounts
f. Job order Costing
g. Process costing
h. Treatment of Joint Products and By-Products
4. Cost Behaviour
a. Analysis of fixed, variable and semi variable expenses
b. Direct cost and Indirect cost
c. Cost estimation using high-low points method and linear regression analysis
d. Marginal costing and Absorption costing
e. Product cost and Period cost
f. Breakeven analysis and charts

5. Planning and Control

a. Principles of Budgeting
b. Cash Budgets
c. Revenue Budgets
d. Flexible Budgets
e. Projected Income statement and Balance Sheet
f. Standard Costing concepts
6. Decision Making
a. Opportunity Cost
b. Relevant Cost
c. Make or buy decisions
d. Pricing for special orders
e. Further processing decisions
f. Utilization of spare capacity
g. Decision with limiting factors (excluding linear programming)
Recommended Reading
PAPER D 10: Cost Accounting
1. Cost Accounting, Planning and Control by The book covers almost all the parts of the
Matz and Uzry. syllabus and ensures concept building by
giving examples on related topics especially
good for variances analysis and process
costing.
2. Management and Cost Accounting by The book covers almost all the parts of the
Colin Drury. syllabus and ensures concept building by
giving a variety of questions for each topic.
3. Cost accounting by T. Lucey. It is a very useful book especially for theoretical

aspects of costing.

1. Cost Accounting Study Text and Revision Series by A T Foulks Lynch Pakistan.
2. Cost Accounting Study Text and Revision Series by Professional Business Publications (PBP).

Intermediate Examinations Auditing
Module D
PA PE R D 11 : Au d it i ng (100 marks)
Objective
The purpose of the syllabus is to give students theoretical and to a limited extent, technical knowledge
and skills of auditing and review of historical financial information. It will provide a foundation for
acquiring intensive knowledge required for professional competence.
The syllabus will ensure that candidates are able to understand the nature of auditing and review
services and are familiar with the intellectual and procedural bases for performing them.
Indicative Grid
1. General concepts & principles of audit 25
2. Performance of audit 35
3. Audit conclusions and reporting 20
4. Specific areas 20
Total 100
Contents:
1. General concepts and principles of audit

i. Objective and general principal governing an audit
ii. Responsibility for the financial statements
iii. Auditor»s responsibility to consider fraud and errors
iv. Introduction to International Federation of Accountants
v. Introduction to international auditing and assurance standard setting body
vi. Legal consideration relating to appointment and removal of auditor
vii. Acceptance and continuance of audit client including requirement of Code of Ethics issued
by ICAP
viii. Audit engagements

2. Performance of audit
i. Planning an audit iv. Audit evidence vii. Test of controls
ii. Assessment of audit risk v. Audit sampling viii. Analytical procedures
iii. Audit materiality vi. Substantive procedures ix. Documentation
3. Audit conclusions and reporting

i. Nature of different audit opinions (Students will only be expected to understand the form and
implications of audit qualifications)
ii. Form of audit reports under the Companies Ordinance, 1984
4. Audit conclusions and reporting

i. External confirmation
ii. Subsequent events
iii. Management representation
iv. Consideration of related parties
vi. Using the work of another auditor, internal auditor and expert
vii. Review of interim financial statements by the independent auditor
Candidates are expected to respond examination questions with reference to international and local
pronouncements issued by any relevant standard setting body. The standards
related to syllabus outline are prescribed as under:
ISA-200 ISA-210 ISA-220 ISA-230 ISA-240 ISA-300

ISA-700 ISA-701 ISRE-2410
Institute of Chartered Accountants of Pakistan has a practice to publish periodically the bound volumes
of updated auditing pronouncements. All pronouncements related to the areas covered in the syllabus
and published in such bound volumes are deemed applicable for examination purposes (irrespective
of their applicability date in practice) unless ICAP specifically notifies that the same will not be adopted.
However, pronouncements and revisions published by ICAP within less than six months from the date
of examination shall not be tested.
Note: Reference to ISAs shall be deemed to have been changed whenever the same is replaced by
another standard.

Recommended Reading
PAPER D 11: Auditing
1. International Standards on Auditing, The book covers all topics of syllabus except
International Framework for Assurance for Laws and Regulations contained in
Engagements and International Standards Companies Ordinance, 1984.
on Review Engagement issued by IAASB & It contains detailed material including
IAPC and published by ICAP as Handbook. background, rationale and practical examples
(ISAs and ISRE mentioned in syllabus). of each subject of the syllabus.
2. Code of Ethics for Chartered Accountants Part B of the Code covers the topics of client
issued and included in Handbook given at acceptance and continuance procedure.
(1) above.
3. Companies Ordinance, 1984. Provisions related to Appointment, Removal,

Report etc. of auditor of limited companies are
also governed by the Companies Ordinance
1984.
}
4. Advanced Auditing by Dr. Khawaja
Amjad Saeed. These books contain almost all syllabus areas
and explain various topics in context with the
5. Practical Auditing by Javed H. Zubairi. ISAs.

1. Auditing Study Text and Revision Series by A T Foulks Lynch Pakistan.
2. Auditing Study Text and Revision Series by Professional Business Publications (PBP).

Intermediate Examinations Information Technology
Module D
PA PE R D 12 : I n f o rm a t io n T e c h n o lo g y (100 marks)
Objective
The objective of this syllabus is to provide the students with adequate knowledge of the following areas
and their applications with particular reference to business and finance:
a. Computer hardware and software.

b. Important elements and concepts of information systems.
c. Basic principles of computer programming
d. Computer software application.
e. IT Security and controls .
f. Practical experience on performing various general procedures and use of standard packages
Indicative Grid
1. Computer Hardware and Related Matters 10
2. Information Systems 10
3. Computer Programming and Software Applications 20
4. System Development and Internal Controls 20
5. Computer Practical Examination 40
Total 100
Contents:
1. Computer Hardware and Related Matters:
1.1 Parts and accessories of computer
i. Recent developments in computer hardware
1.2 Networking
i. Networking components iv. Use of communication devices

ii. Network configuration and design vi. Transmission medium
iii. Types of networks vii. Network administration and controls

2. Information Systems:
a. Fundamentals of Information Systems
i. General system concepts

ii. System architectures
b. Organizational Information Systems
i. Information flow in an organization

ii. Management Information System
iii. Transaction Processing Systems
iv. Financial reporting systems
v. Order processing and inventory control systems
vii. Personnel systems
viii. Sales and marketing systems
ix. Integrated systems
c. Commonly used ERPs
d. Knowledge Based Systems
i. Decision Support System (DSS)

ii. Executive Information System (EIS)
iii. Expert System (ES)
e. Transaction processing in business and accounting applications
i. General application processing

ii. Data entry/ capturing / editing
iii. Master file update
iv. Reporting and queries
v. Processing modes
vi. Batch processing
vii. On-line processing
viii. Real time processing
ix. Distributed processing
x. Multi tasking
xi. Multi processing
3. Computer Programming and Software Applications:

a. Introduction to Computer Programming
Basic principles and concepts of program writing
b. Flow Charts
i. Benefits and limitation of flowcharts

ii. Types of flowcharts

c. Decision Tables
i. Benefits and limitation of decision tables

ii. Types of decision tables
d. Computer Aided Software Engineering (CASE)
Types of CASE tools, their applications and advantages
e. Operating System
Introduction to commonly used operating systems including DOS,

Windows, Novell NetWare, Unix and Linux
f. Utility Software
Compression utilities, disk maintenance utilities, antivirus programs and audio and video
software etc., their features, benefits and limitations
g. Communication Software
Features, benefits and limitations of Internet browsers, email software, chatting programs,
telephony via Internet and video conferencing etc.
h. E-Commerce
Basic concepts covering:
i. Current trends in e-commerce

ii. E - commerce Tools and technologies
iii. Electronic data capture
iv. Publishing systems
v. Communication systems
vi. E-commerce services for example electronic trading, online banking and online information
services etc.
vii. Electronic Payment Systems
viii. Payment options
ix. Security technologies
i. Web Hosting and Surfing
i. Website hosting
ii. Downloading software from web
iii. Use of search engines

4. Introduction to System Development and Control Activities

a. Systems Development Life Cycle (SDLC)
i. Feasibility study based on investigation and analysis of existing systems

ii. Structured systems analysis, planning, designing and implementation
iii. Evaluation and control of Information Systems and needs
iv. Documentation
v. Post implementation review
b. Data organization and access Methods
i. Data structures and file organizations

ii. Access methods and file maintenance
iii. Types of data files
c. Database Management System (DBMS)
Introduction to commonly used DBMS like Oracle and SQL Server etc. (their characteristics,
advantages and limitations)
d. Control Activities
Introduction to:
i. Control design
ii. General controls
iii. Preventive, detective and corrective controls
iv. Audit trails
e. Control over Data Integrity, Privacy, and Security
i. Logical access controls

ii. Physical access controls
iii. Program security techniques
iv. Data security and public networks
v. Monitoring and surveillance techniques
f. Disaster Recovery Planning
i. Threat and risk management

ii. Software and data backup techniques
iii. Alternative processing facility arrangements
iv. Disaster recovery procedural plan

Intermediate Examinations Computer Practical Examination
5. Computer Practical Examination

ICAP will conduct a practical examination of 2 hours duration to test hands on experience covering 40%
credit of the course. Theory paper of Information Technology will cover 60%. The result shall be based
on the combined marks obtained at practical and theory examinations. The computer practical
examination will be held soon after the Intermediate examination.
Contents:
M icr oso ft Win do ws and Inter net
a. Window s A cce ss orie s
i. System Tools
ii. Communication & Entertainment
iii. Accessibility
b. Window s K ey board S hortcuts

c. Ba sic Netw orking Ta sks
i. Sharing drives, folders and devices
ii. Protecting files and folders on a network
d. Cor e Window s Tas ks

i. Customizing Desktop and Start Menu
ii. Working with files and folders
iii. Managing Windows
iv. Logging on and off
v. Searching for information
e. Pr ote cting your c ompute r

i. Locking the computer
ii. Screen Saver password
iii Password reset disk
f. Window s F irew a ll
g. Inte rnet
i. Internet browsing
ii. Making a dial-up connection
iii. Internet explorer
iv. Commonly used Internet search engines and web based email services
v. Voice and video chatting

M icr oso ft Excel

a. Orga nizing and Ana ly zi ng Da ta
i. Construction and application of customised formulas
ii. Application of advanced filters
iii. Performing data analysis using automated tools
iv. Creating PivotTable and PivotChart reports
v. Application of built in functions and formulas
vi. Use of Tools menu commands like Goal Seek and Formula Auditing etc
vii. Defining, modifying, and using named ranges
b. For ma tti ng Da ta and C onte nts

i. Creating and modifying customised data formats
ii. Using conditional formatting
iii. Formatting charts and diagrams
c. S ha ring a nd S ec urity
i. Protecting cells, worksheets, and workbooks
ii. Sharing workbooks
iii. Merging workbooks
iv. Tracking, accepting, and rejecting changes to workbooks
d. Mana ging D ata and Wor kbook s

i. Importing and exporting data to and from Excel
ii. Creating and editing templates
e. C us tomi zi ng Ex ce l
i. Customizing toolbars and menus
ii. Creating, editing, and running macros
M icr oso ft Wor d

a. For ma tti ng C ontents
i. Creating custom styles for text, tables, and lists
ii. Inserting and modifying objects
iii. Creating and modifying diagrams and charts using data from other sources
b. Orga nizing Contents

i. Sorting contents in lists and tables
ii. Performing calculations in tables
iii. Modifying table formats
iv. Preparing letters, labels and envelopes using mail merge tools
c. For ma tti ng Doc uments

i. Creating and modifying document background
ii. Creating and modifying document index and table of contents
iii. Inserting and modifying endnotes, footnotes, captions, and cross-references

d. Ma naging Wor d Documents

i. Application of Track Changes tool
ii. Publishing and editing Web documents
iii. Managing document versions
iv. Protecting and restricting documents
v. Ways of viewing a Word document
e. Cus tomizing Mic rosoft Word

i. Creating, editing, and running macros
ii. Customizing menus and toolbar
M icro soft P ower Poi nt

a. Cre ating Conte nts
i. Creating new presentations from templates
ii. Inserting and editing text-based contents
iii. Inserting and editing tables, charts, diagrams, pictures, shapes, graphics and objects
b. Formatting Conte nts

i. Formatting text-based contents
ii. Formatting pictures, shapes, and graphics
iii. Formatting slides
iv. Applying animation schemes
v. Applying slide transitions
vi. Customizing slide templates
vii. Working with slide master
c. Ma naging a nd De liv eri ng P re se nta ti ons

i. Tracking, accepting, and rejecting changes in a presentation
ii. Adding, editing, and deleting comments in a presentation
iii. Comparing and merging presentations
iv. Setting up slide shows for delivery
v. Rehearse timing
vi. Printing slides, outlines, handouts, and speaker notes
vii. Exporting a presentation to another Microsoft Office program
Micr oso ft Access

a. S tr ucturing Da ta bas es
i. Creating and modifying tables
ii. Defining and modifying field types
iii. Creating and modifying one-to-many relationships
iv. Creating and modifying queries, forms and reports

b. Mana ging Databa ses

i. Entering, editing, and deleting records
ii. Importing and exporting data to and from Access
iii. Compacting and repairing databases
iv. Creating and modifying calculated fields and aggregate functions
v. Sorting records
vi. Filtering records
Micr oso ft Pr oj ect

a. Tas k Mana gement
i. Defining the project
ii. Defining general working times
iii. Listing the tasks in the project
iv. Organizing tasks into phases
v. Scheduling tasks
vi. Linking to or attaching more task information
vii. Adding columns of customised information
viii. Setting deadlines and constraints
b. Re sourc e Manage ment

i. Specifying resources (people and equipment) for the project
ii. Defining working time and availability of resources
iii. Assigning resources to tasks
iv. Linking to or attaching more resource information
v. Adding columns of customised information
c. P roje ct Tr ac king
i. Saving a baseline to compare with later versions
ii. Incorporating progress information into the project
iii. Checking the progress of the project
iv. Tracking risks and issues associated with a project
d. V iew and Repor t P roje ct Status

i. Selecting and modifying views and reports
ii. Viewing critical tasks, allocation of resources and project costs
iii. Sharing project information with other applications
iv. Changing the look or contents of the Gantt chart
Mi cr o so ft Outl oo k / Ou tlo ok E xpr ess

a. Mes sagi ng
i. Originating and responding to e-mails and instant messages
ii. Attaching files to messages
iii. Creating and modifying a personal signature for messages
iv. Modifying e-mail message settings and delivery options
v. Creating and editing contacts

b. Sc heduling
i. Creating and modifying appointments, meetings, and events
ii. Customizing calendar settings
iii. Creating, modifying, and assigning tasks
c Orga nizing
i. Creating and modifying distribution lists
ii. Linking contacts to other items
iii. Creating and modifying notes
Recommended Reading
PAPER D 12: Information Technology
1. Management Information Systems Strategy The book is useful for understanding
and Action by Charles Parker and Thomas management information systems.
Case.
2. Management Information Systems by The book contains adequate material on MIS,

Gerald Gerald V. Post and David L. networking, database management systems
Anderson. and e-business for CA Intermediate students.
3. Management Information Systems (Sixth The book gives good explanation of MIS,
edition) by James A. O» Brien. networking and e-business solutions along with
real world case studies.
4. System Analysis and Design by The book contains useful material on various
Kenneth E. Kendall and Julie E. Kendall. types of information systems, system
development life cycle, e-commerce,
fundamentals of computer programming and
computer aided software engineering.

1. Information Technology Study Text and Revision Series by A T Foulks Lynch Pakistan.
2. Information Technology Study Text and Revision Series by Professional Business Publications
(PBP).
3. Computers by Larry Long and Nancy Long.

FINAL
There are two ways to meeting difficulties: You alter the difficulties, or you alter yourself to meet them
(Phylis Bottome)
Final Examination Information Technology Management, Audit and Control
Module E
P AP E R E 1 3: I nf or m a t io n T e c h n o lo g y M a n a g e m e nt ,
(100 marks)
A u di t a n d C on t r o l
Introduction
This sy llabus aim s to p rovid e:
a. Essential body of IT knowledge related to business information systems.

b. IT security, control and governance knowledge related to business information systems.
c. Application of knowledge to manage the above and evaluate IT.
The Case studies in ICAP study material for this syllabus are designed to assist the students in
enhancing their knowledge and skills in: Managerial role; Evaluator role; Enterprise resource planning;
and Electronic Commerce.
Case studies / scenario based questions will be set in the examination.
Contents:
1. IT Strategy and Management
Broad know ledg e / M ain t opic Illus trat ive sub -top ics
sk ill area cov erag e
IT strategy Strategic w Planning of information systems

considerations in based on business success factors/criteria
IT development w Position of the entity within its industry/sector
w Alignment/integration with business
objectives/success factors
w Risks: economic, technical, operational,
behavioral
w Components of long range plans
w Operational dynamics that influences the
entity»s business/programs
w Business to Consumer (B2C)

w
E-Business models
Business to Business (B2B)
w Business to Employee (B2E)
w Consumer to Consumer (C2C)
w Government to Citizen (G2C)
w Developing operational priorities

w
Management of IT Management of
Compatibility of computers
w
computer operations
Planning IT capacity
w Impact of IT on procedures
w Data/information architecture
w IT infrastructures (hardware, facilities,
networks)

w Software (systems, applications, utilities)

w Performance measurement (productivity,
service quality)
Management of w Collaborative computing

interorganizational Distributed system
computing EDI and electronic commerce
Outsourced services (ISPs,
ASPs, etc.)
Management of w Technology diffusion

end-user w Information center, help desk
computing w End-user system security
w Support for end-user applications
Financial analysis w Capital budget

and control w Time/expense tracking
w Cost charge out / monitoring
w Accounting for system costs
IT control w Effectiveness, efficiency, economy of

objectives operations
w Reliability of financial reporting
w Effectiveness of controls (design, operation)
w IT asset safeguarding
w Compliance with applicable laws and
regulations
w System reliability:
r Availability and continuity (back-up,
recovery)
r Access controls (physical, logical)
r Processing integrity (completeness,
accuracy, timeliness, authorization)
r Data integrity
w Supply chain management (SCM)

w
Software E-business
Enterprise resource planning (ERP)
w
enabling software
Sales force automation (SFA)
w Customer relationship management (CRM)
w Electronic commerce systems:
r Brochure, catalog, order entry, payment
processing, fulfillment
r Knowledge management systems
r Knowledge creation, capture, sharing,
maintenance
w Managing Information Technology Planning

IFAC Guidelines / for Business Impact
discussion papers w Acquisition of Information Technology
w The Implementation of Information
Technology Solutions
w IT service Delivery and Support
w Executive Checklist.

2. Information Technology Security, Control and Management

Broad k nowled ge / Main top ic I llust rativ e s ub-t opics
s kill area coverage
Control frameworks Risks and exposures in w Error, fraud, vandalism/abuse, business

computer-based interruption, competitive disadvantage,
information systems excessive cost, deficient revenues, statutory
sanctions, social costs, etc.
w Effect of IT audit on organization, controls
r Economic, technical, operational,
behavioral considerations
r Cost/benefit
IT control frameworks w COBIT, ITCG, SysTrust, WebTrust, etc
Control objectives Effectiveness, w Cost effectiveness of control procedures

efficiency, economy of
operations
Reliability of w Relevance, reliability, comparability /

financial reporting consistency
Effectiveness of control w At a point in time; during a period of time

(design, operation)
IT asset safeguarding w Evaluation of facilities management and IT

asset safeguarding
Compliance with w Prevention/detection of fraud, error and illegal

applicable laws and acts
regulations w Privacy, confidentiality, copyright issues
System reliability w Availability and continuity (back-up, recovery)

w Access control (physical, logical)
w Processing integrity (completeness, accuracy,
timeliness, authorization)
Data integrity w Completeness, accuracy, currency /

timeliness, consistency/comparability,
authorization, auditability,
w Input /output; reception/distributic controls
Societal Organizational w Attitudes, laws and regulations Board level,

Layer of control environment management level, IT administrative
Technology /operational level
infrastructure Software w Hardware, facilities, network
Business process System, application
w User departments, individual user
Responsibility for Role and w Board, top management

control responsibilities of w IT management and IT personnel
key parties w User departments, individuals
w Auditors

Control environment External regulatory w Record keeping, privacy, copyright, taxation,

controls etc,
Board/audit committee w Regulatory compliance, fiduciary obligations,

governance IT governance, system reliability
Management w Integrity and ethical values, commitment to

philosophy and competence
operating style
w Leadership for IT organization, organization of
Plans/structure of
IT function, segregation of incompatible IT
organization
and user functions, partnership with other
organizations
Method to w Business practices, codes of conduct,

communicate the documentation of systems, operations, user
assignment of authority responsibilities, reporting relationships
and responsibility
Management w Strategic planning, business system/IT

control methods integration planning, budgeting, performance
measurement, monitoring, compliance with
policies
Human resource w Hiring, training, evaluation, compensation of IT

policies and personnel, career paths
practices
Financial policies w Budgeting process; Cost charge out methods;

and practices
Risk Assessment Risk Categories w Economic, technical, operational behavioral

w Main reason for failure of computer Projects
w Error, fraud , vandalism/abuse, business
interruption, competitive disadvantage,
excessive cost, deficient revenues, statutory
sanctions, social costs, etc.
Probability of loss w Quantitative / qualitative
Consequences w Monetary, non-monetary

w Balancing costs of controls vs. costs of
unmitigated risks

Control activities Control design w Objectives, framework, environment, activities,

monitoring
w Legal, ethical, professional
standards/requirements
w Preventive/detective /corrective strategies
w Effective control environment (personnel
management methods)
w Preventative application controls
w Detective application controls
w Contingency plans, insurance
Control w Authorization
procedures w Separation of incompatible functions
(organizational design, user identification,
data clarification, user/function/data
authorization matrix, user authentication)
w Adequate documents and records
w Asset safeguards; limitation of access to
assets
w Independent check on performance;
verification of accounting records, comparison
of accounting records with assets
w Computer-dependent controls (edit,
validation, etc.)
w User controls (control balancing, manual
follow-up, etc.)
w Audit trails
w Error identification/investigation /correction /
tracking
Control over data w Understanding of data protection

integrity, privacy legislation
and security w Consideration of personnel issues and
confidentiality
w Classification of information
w Access management controls
w Physical design and access control
w Logical access control (user authorization
matrix)
w Network security (encryption, firewalls)
w Program security techniques
w Monitoring and surveillance techniques
Control activities Availability / continuity w Threat and risk management software and
of processing, disaster data backup techniques (problems of on-line
recovery planning and systems, etc.)
control w Alternate processing facility arrangements
w Disaster recovery procedural plan,
documentation

w Integration with business continuity plans

w Periodic tests of recovery procedures
w Insurance
IS processing w Planning and scheduling; service levels; Risks

/operations Standards
r Infrastructure (hardware, facilities,
networks)
r Software
r Human resources (skill sets and staffing
level)
w Business processes
w Performance monitoring Costs / benefits
(quantitative and qualitative impact on
management Jobs and office procedures)
w Business drivers that impact IT (e.g.,
scalability, rightsizing, flexibility of change in
technology) or business, speed to market,
cross-platform capability)
w Control over productivity and service quality
w Software /data library management
w Input/output distribution and control
w Security and backup, and recovery
Monitoring of control Roles of management, w Internal monitoring processes

compliance users, auditors w Performance review processes
(internal, external) w External monitoring processes
w Processes for addressing-non-compliance
Computer assisted w Familiarisation with:

audit techniques r System analysis and documentation (e.g.,
flowcharting package, review of program
logic, etc.)
r System /program testing (e.g., test data
,integrated test facility, parallel
simulation etc.),
r Data integrity testing (e.g., generalized
audit software, utilities, custom programs,
sampling routines, etc.)
r Problem solving aids (e.g. spreadsheet,
database. Online data bases, etc)
r Administrative aids (e.g., word
processing, audit program generation,
work paper generators etc).

Recommended Reading
PAPER E 13: Information Technology Management, Audit and Control
1. Information Systems Control and Audit by The book is useful for gaining the
Ron Weber. understanding of information systems audit
function. Management and application control
framework have been explained in an effective
manner. Ways to collect and evaluate the audit
evidence are also explained in the book in
detail.
2. Strategic Management & Information The book is useful for the topic of strategic
Systems by Wendy Robson. management of information system.
3. Auditing in a Computerized Environment by The book explains the fundamentals of

Mohan Bhatia. information systems audit, business continuity
management and the application of CAATs in
an effective manner.

1. Information Technology Management, Audit and Control Study Text and Revision Series by A T
Foulks Lynch Pakistan.
2. Information Technology Management, Audit and Control Study Text and Revision Series by
Professional Business Publications (PBP).
3. Information Technology Management Audit & Control by Mohammad Amjad Bhatti and
Muhammad Qaiser Sheikh.
4. International Information Technology Guidelines developed by IFAC»s IT Committee, available at

IFAC»s website.
5. Useful information is also available at the website: www.isaca.org.

Final Examination Advanced Accounting & Financial Reporting
Module E
PA PE R E 1 4 : A dv a n c e d Ac c o un t i n g & F in a n c i a l R e p o rt in g (100 marks)
Introduction
The purpose of this syllabus is to prepare the students to appreciate prevailing financial regulatory
environment and to apply the knowledge gained to practical situations for arriving at pragmatic
solutions.
Students will be expected to be aware of the requirements of the International Accounting Standards
(IASs) and International Financial Reporting Standards (as and when issued) as applicable in Pakistan
and their application to practical situations and the informational needs of different users of accounts.
Students will be expected to analyse, interpret and explain the commercial activities of an organisation
as shown by its financial statements. The emphasis will be on the presentation, interpretation and use
of data.
Students should be able to prepare financial statements for complex business arrangements (e.g.
reorganisations, demergers, business combinations, dissolutions, etc.) in accordance with applicable
statutory disclosure requirements.
Students will be expected to be familiar with the preparation of the financial statements of enterprises
engaged in specialised industries.
The students should be able to demonstrate an integrated knowledge of Financial Reporting.
The students are encouraged to be abreast of current accounting and financial issues. The examinees
are expected to possess profound understanding of the subject over and above what they have learnt
at the Foundation and Intermediate stages. Topics examined at the earlier stages may or may not be
directly re-examined here, however, examinees would need to utilise knowledge and skills learnt at an
earlier stage. Case studies / scenario based questions will be set in the examination.
Indicative Grid
1. a. Financial Statements and Reporting
b. International Financial Reporting Standards and 30
Statutory Requirements
2. Specific Accounting Areas 45
3. Analysis of Financial Statements 15
4. Specialised Financial Statements 10
Total 100

Contents:
1 a. Financial Statements and Reporting
i. Preparation of financial statements including consolidated financial statements and their
disclosure.
ii. Accounting for investments in subsidiaries and associated undertakings
iii. Financial reporting on interests in joint venture
iv. Interim financial reporting
v. Reporting on discontinued operations
vi. Preparation of statutory and directors» report
vii Related party transaction
viii. Segment reporting
b. International Financial Reporting Standards (IFRSs) and Statutory Requirements
i. Recognition, measurement, accounting treatment and disclosure of various transactions

and items in accordance with the requirements of IFRSs and their interpretations issued
by International Accounting Standards Board (IASB) and International Financial
Reporting Interpretations Committee (IFRIC) respectively, adopted by the Institute of
Chartered Accountants of Pakistan.
ii. Accounting treatments and disclosure requirements under the Companies Ordinance,
1984
iii. Specific departures from IFRSs under the local statutory requirements
2. Specific Accounting Areas

a. Accounting of taxes on Income
b. Accounting for leases
c. Accounting for construction contracts
d. Retirement benefits costs and pension plans
e. Foreign currency transactions
f. Business combinations
g. Accounting for Investments
h. Accounting treatment on changes in accounting policies and estimate including fundamental
errors
i. Recognition and measurement of financial instruments
j. Valuation of intangible assets
k. Impairment of assets
l. Provisions and contingencies
m. Revenue recognition
3. Analysis of Financial Statements

a. Needs of various users of financial statements and its importance
b. Techniques for analysis
i. Horizontal and vertical analysis
ii. Ratio analysis
iii. Common-size statements
c. Earning per share (EPS)
d. Business and share valuations
4. Specialized Financial Statements

a. Banks d. Mutual funds and similar enterprises
b. Leasing companies e. Employee benefit plans
c. Insurance companies
Recommended Reading
PAPER E 14: Advanced Accounting & Financial Reporting
1. International Financial Reporting Standards It is the primary source and explains the topics
(IFRS) Published by ICAP. with illustrations and appendices.
2. Gripping IFRS Vol. 1 published by ICAP. Contains useful material on various IASs and
IFRSs with examples.
3. Gripping IFRS Graded Question published Contains questions for practice on various IASs
by ICAP. and IFRSs.
4. Companies Ordinance 1984. Schedule IV and V covers disclosure

requirements for listed public companies and
unlisted companies repectively.
5. Insurance Ordinance 2000 and Banking Contains disclosure requirements for financial
Companies Ordinance 1962. statements of insurance and banking
companies.
6. IFRS √ Interpretation and Application of The book contains detailed material and many
International Accounting and Financial practical examples of topics included in
Reporting Standards (Wiley Series) by syllabus. Gives in-depth understanding of
Barry J. Epstein and Abbas Ali Mirza. accounting issues in context with the IFRS and
international pronouncements.
7. IFRS Practical Implementation Guide and The concepts built by Interpretation of IFRS
Workbook (Wiley) by Abbas Ali Mirza, series are further explained with practical
Graham J. Holt and Magnus Orrel. examples.
8. Published Financial Statements of Leasing Reading and understanding of these published
Companies, Mutual Funds, Banks and information will help in the preparation of these
Insurance Companies. specialized financial statements.

1. Advanced Accounting & Financial Reporting Study Text and Revision Series by A T Foulks
Lynch Pakistan.
2. Advanced Accounting & Financial Reporting Study Text and Revision Series by Professional
Business Publications (PBP).
3. Selected Opinions and Technical Releases (Accounting).
4. The websites of following audit firms provides free online financial reporting tools for.
understanding IFRS. The links can be viewed from the e-learning section of ICAP»s website:
w Deloitte IFRS e-learning w KPMG issues and insight
w EY Resource for IFRS w PWC research and publications

Final Examination Corporate Laws
Module E
PA PE R E 1 5 : C or p o r a t e L a w s (100 marks)
Introduction
The syllabus aims to provide the knowledge and understanding of corporate and other relevant laws,
rules and regulations and to familiarize with the secretarial practices including the knowledge of
handling various matters usually expected to be performed by the secretary of a corporate entity.
Case studies / scenario based questions in addition to descriptive Questions will be set in the
examination.
The examinees are expected to possess detailed knowledge of the Companies Ordinance 1984 over
and above what they have learnt at the Intermediate stage. Topics examined at the Intermediate stage
may or may not be directly re-examined here, however, examinees would need to utilize knowledge and
skills learnt earlier. The knowledge required for Companies Rules would also be comprehensive but for
other Laws and regulations only general knowledge would suffice.
Indicative Grid
1. Companies Ordinance, 1984 40
2. Various Rules under the Companies Ordinance 30

3. Secretarial Practices 15
4. Other laws and regulations 15
Total 100
Contents:
1. Companies Ordinance, 1984

a. Areas of the Companies Ordinance, 1984 covered at Module D Examination in Company
Law Paper.
In the Corporate Laws paper at Final level, students should have a more in-depth knowledge and
understanding of those parts of the Companies Ordinance, 1984 which were covered in the Company

f.f. NBFC
NBFCRules
Rulesissued
issuedbybySECP
SECPonon
April
April01,
01,2003,
2003,Chapters
ChaptersI and
I to Schedules I & IV only.
III and Schedules I & IV only.
g.
g. Regulation
Regulation 25
25 of
of the Non-banking
d Non-banking Finance
Finance Companies
Companies andNotified
and Notified Entities
Entities Regulations,
Regulations, 2008.
2008.
h. Schedule IX (Fit and Proper Criteria) and Schedule X (Long, Medium and Sort Term Financing
Facilities) of the Non-Banking Finance Companies and Notified Entities Regulations 2008.
3. Secretarial practices
Floatation of shares and securities including prospectus, offer for sale and convertible securities, stock
exchange listing rules, underwriting, brokerage, etc.; and discount and premium on shares; application
and allotment of shares, issue of share certificates and bonus and right shares and transfer and
transmission of shares of companies, investigation and dividend.
a. Filing requirements, maintenance of statutory books and registers under the Companies
Ordinance, 1984.
b. Meetings of shareholders and directors and all proceedings thereto, including notices, agenda,
quorum, voting, poll, proxies, resolutions and minutes.
c. Functions and responsibilities of the Securities and Exchange Commission of Pakistan under the
SECP Act (Act No. XLII of 1997).
4. Other laws and regulations

a. Foreign E xchang e Reg ulations - Foreig n Ex change Manual 8th E dit ion
i. Chapter XIX Loans, overdrafts and guarantees
Part A: Rupee loans
Foreign exchange regulations relating to definition of foreign controlled companies, provisions

for general permission for lending to foreign controlled companies for working capital, local
borrowings by foreign controlled companies for capital expenditure.
Part B: Foreign private loans
Private foreign currency loans, repatriable foreign currency loans by foreign controlled
companies for meeting working capital requirements, foreign currency loans (repatriable and
non-repatriable basis) by Pakistani firms and companies functioning in Pakistan.
ii. Chapter XX - Securities
Knowledge and application of provisions relating to rules and regulations governing

acquisition and holding of foreign securities, issue, transfer and export of Pakistani securities
to non-residents, general exemption from the restriction on transfer and issue of Pakistani
securities to non-residents, procedure for issue of shares to non-residents, trading of quoted
shares by non-residents, and special instructions regarding shares transferred under the
Central Depository System - CDS of the Central Depository Company
b. Stock Exchange Listing Rules and Guidelines - especially those relating to secretarial matters,
public issue of shares, Code of Corporate Governance and Transfer Pricing.

Laws gov erning certain s pecializ ed inst itut ions
c. Banking Companies Ordinance, 1962 - Sections pertaining to audit and accounts, mainly sections
34 to 38 of the Banking Companies Ordinance, 1962.
d. The Central Depositories Act, 1997 and Central Depository Companies (Establishment and
Regulation) Rules 1996 - Understanding of provisions relating to:
i. Central Depository System; and

ii. Effect of the Central Depository on provisions of the Companies Ordinance, 1984 relating
to interalia, sending of notices to members, registration of transfers, payment of dividend,
maintenance of register of members, issue of bonus and right shares and effect on the
rights of members.
e. Mod araba C omp anies and M odarab as (Floatat ion and Cont rol) Ordinance, 1980.
i. Provisions relating to the following:
w Definitions (Section 2)
w Registration of Modaraba Companies (Section 4 to 6)
w Provisions applicable to Modaraba (Section 7 to 23,33,37,41 and 42)
ii. Modaraba Companies and Modaraba rules, 1981
w Rules 2 to 4,7 to 13,16 to 20-B,23 and 25 to 28

w First Schedule (Form no.1,9 and 11 including annexures)
w Third Schedule
w Fourth Schedule (salient features of matter to be specified in prospectus and reports to
be set out therein)
f. The Insurance Ordinance, 2000 √ provisions relating to statutory and special audits and
maintenance of accounts, mainly sections 45 to 49, 51 and 52 and the Securities and
Exchange Commission (Insurance) Rules 2002 including regulations and Format accounts.
Broad understanding of the Code of Corporate Governance for listed and unlisted insurance
companies.
g. The Securities and Exchange Ordinance 1969 and the Securities and Exchange Rules, 1971√
provisions pertaining to issuance of shares and securities to the general public (mainly
section 9 ) and Insider Trading.
h. Com pet ition Ordinance and Reg ulations
The following topics will be covered:

i. Competition Ordinance 2007
Chapter - I Preliminary
Chapter - II Prohibition of abuse of dominant position, certain agreements,
deceptive marketing practices and approval of mergers.
Chapter - IV Functions and Powers of the Commission
Chapter - V Penalties and Appeals
ii. Competition (Merger Control) Regulations 2007 excluding the Schedule

iii. Competition (Leniency) Regulations 2007

i. Listed Companies (Substantial Acquisition of voting shares and Takeovers) Regulations,

2008
j. Listed Companies (Substantial Acquisition of voting shares and Takeovers) Ordinance 2002
Kj. Rules and regulations framed by the Federal Government from time to time, as may be
specifically notified by the Institute of Chartered Accountants of Pakistan for inclusion in the
syllabus.
Not e: Where specific reference to an Act, Ordinance, Rules, Regulations, Guidelines or SRO
gazette notification is given it is to be assumed that it covers any subsequent amendments
that may be made therein from time to time.
Recommended Reading
PAPER E 15: Corporate Laws
1. Complete Company Law S. A. Salam Bare Law and brief explanation thereon are
(Relevant topics). included in the book.
2. Foreign Exchange Manual (Latest Edition) Covers relevant part of the syllabus.
by State Bank of Pakistan (Chapter No. XIX,
XX only) available at www.sbp.org.pk.
3. Banking Companies Ordinance, 1962 Covers relevant part of the syllabus.

(Relevant sections only).
4. Insurance Ordinance, 2000 (Relevant Covers relevant part of the syllabus.

sections only).
5. Practical Approach to the Companies It is a useful book for understanding practical

Ordinance, 1984 by Nazir Ahmed Shaheen application of law.
(Relevant topics).

1. Corporate Laws Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Corporate Laws Study Text and Revision Series by Professional Business Publications (PBP).
3. SECP Guide Series available at SECP»s website (www.secp.gov.pk).
4. Relevant issues of Members» Information and Education Series issued by ICAP.

Final Examination Business Management
Module E
P AP ER E 16 : Bu s i ne s s M a n a g e m e n t (100 marks)
Introduction
The ob ject ive of t his p aper is t hat the ind ivid ual s hould b e ab le to:
• Identify the principles and concepts in the theories and practices of strategic business
management;
• Asses the impact of environmental forces such as global microeconomic forces, international trade
and financial system on organizational strategies and plans;
• Understand the importance of linking information systems development and management to
business goals and needs;
• Understand the interplay of marketing with other vital functional areas in business management and
to understand the accountant»s role in servicing the needs of marketing and other functions of
business;
• Recognize the role of global marketing and international business;
• Assess the importance of human resources development to organisations and identify methods of
managing people effectively;
• Evaluate ways in which change can be managed successfully;
• Appreciation of social and ethical implication of strategic policies in business;
• Understand the aims of corporate codes of conduct and their role in improved corporate
governance; and
• Understand the manager»s role and responsibilities in relation to the working environment.
Indicative Grid
1. Strategic management and planning
2. Corporate social responsibility and business ethics 30
3. Human resource management

4. Management of the working environment 30
5. Marketing Management 20
6. International Business 20
Total 100

Contents:
1. Strategic management and planning:
a. The purpose of strategic management and business planning and their inter relationship
b. The methods which organisations use to plan for the future including the role of information
technology
c. Pos ition ap prais al and analys is :
i. Identifying the organization»s strengths and weaknesses, opportunities and threats

ii. Identification and quantification of the planning gap
iii. Closing the planning gap through the identification and evaluation of alternative courses
of action: improved efficiency; improved product(s);or service(s); introducing new
product; entering new markets; merging with or acquiring other organisations
iv. Use of alternative strategies
v. Quality and a strategic variable; its implementation and management
vi. Performance against operational and strategic targets; flexibility» economy, efficiency and
effectiveness
vii. Performance against that of competitors; benchmarking; use of inter-firm comparisons;
the limitations of external data
viii. Performance of costs, profit and investment centres using financial and non-financial
measures
ix. Problems of measuring divisional and subsidiary company performance
x. International and multinational trading; transfer pricing of goods and services and their
impact on trading results
xi. Impact of changing price level on current performance and the future projections
xii. Customer outlets, including customer profitability analysis
d. The eff ect of ex ternal environm ent on st rateg y and p lans and ap prais ing t he env ironment :
i. Scanning the environment of the organisation and the context in which it is set for
changes, developments and opportunities
ii. Forecasting trends and developments in relevant areas through the use of relevant
quantitative and qualitative analysis
iii. Future basing (i.e Anticipating long-term prospects for the business and its likelihood of
survival) and other scenario-building techniques
iv. Impact on the organisation of changing national and international influences:
demography; technology (progressional alternative / acceptability); economic resources;
social attitudes and aspirations; legislation and regulation; political forces; government
and other agencies, including pressure groups
v. Competitive advantage:
w its meaning in different markets and industries of nations and the implications of this
for organisational success
w the different approaches used by organisations and management in different
countries and the lessons which can be applied to Pakistan
w the effect on organisations of working in an international environment, the key
aspects of that environment and methods of entry into it

vi. Use of renewable and non-renewable resources including the ethical implications of
such use; the effect of the environment on corporate performance
vii. External sources of information, including databases, both private and public, and their
usefulness to the organisation
viii. Impact of innovation, substitution and obsolescence on business process (including
marketing and production)
ix. Impact of international market integration on the transfer of goods, services and labour
x. Comparative organizational performance: market share production capacity
e. Methods of gaining support and commitment for strategies
f. Es tab lishing the corporat e object ives:
i. Organizational missions, aims, goals and objectives

ii. Long-term (strategic) and short-term (operational) objectives: quantitative and
qualitative evaluation
iii Application of decision theory
iv Problems of achieving balanced growth and development
v. Internal and external factors effecting decisions; implication of «short-termism»
g. Formulating and evaluating plans with an awareness of the various techniques available to
managers
h. Understanding and managing the risk of a proposed business plan for the plan itself and for
all the aspects of business which it will influence
i. Reviewing strategy for the effect it will have on the organisation and the local and global
community
2. Corporate social responsibility and business ethics

a. Understanding of obligation towards society by business organisations and the individuals
associated with it, in carrying out the business and professional activities
b. Understanding ethical and social implications of business strategic policies and decisions
and their impact on the stockholders; consideration thereof in the formulation and
implementation of strategic planning and management decisions
c. Disclosure and confidentiality
d. Profit motives versus other corporate objectives
e. Goal congruence and corporate performance measurement
f. The role of professional bodies in regulating the activities of members

3. Human resource management

a. The purpose and forms of personnel specifications in the recruitment of personnel
b. Methods of identifying competencies and other attributes required
c. Specifying personnel requirements
d. Evaluating and determining the benefits and costs of new or additional personnel
e. Identifying and determining suitable methods of recruitment
f. Selection methods and their use
g. Methods of motivating and supporting personnel
h. Staff appraisals and the assessment of competence
i. Warning and dismissing personnel: legal and organizational policies and procedures; the role
of internal and external specialists in the process
j. The role of employee group in promoting the welfare of personnel
k. National legislation which affects recruitment, selection, employment and dismissal of
personnel
l. The management of organizational and personal changes
m. Concep ts and princip les of hum an resource dev elopm ent
i. The role which individual and team development can play in growth and development
ii. The different concepts and models of competence
iii. Methods of encouraging and supporting individuals and teams to grow and develop
iv. The effect of internal and external factors on development
n. Human relations management
4. Management of the working environment

a. Interpretation, applying and monitoring best practices for managing the working environment
b. National Legislation which affects the working environment
c. The role and purpose of health , safety and security requirements, procedures and guidelines
d. Roles and responsibilities of management for managing and improving the working
environment
5. Marketing Management
An introduction to marketing principles, the purpose of marketing philosophy and concepts in
providing for customer needs. Areas include:
a. S trat egy in t he m arket place
i. Assessing threats and opportunities to the marketing plan; determining the need for
change in the planning area
ii. Development of marketing strategies to meet organisation objectives
iii. Assessing the nature and size of the market using internal records, market intelligence,
market research
iv. The process of creating, reviewing, selecting and marketing the right product in the right
place, to the right customer at the right time, while achieving the right price; relevance of
the product life cycle
v. The product portfolio; formulation, management, the relevance of
branded merchandise

vi. Consumer power within the marketing environment

vii. Strategic management of markets through mergers, acquisitions and divestments
viii. Problems associated with the acquisition of the foreign subsidiaries especially in respect
of performance appraisals
b. Analyzing the impact of globalization on marketing to assess competitive advantage
c. Techniques for analyzing the market, choosing the target market and the appropriate
marketing mix, distribution channels, promotions, and developing a marketing plan
6. International Business
a. The environment of global marketing, global opportunities and threats; difficulties in
International business and alternative approaches to managing the process
b. The development of multinational organisations and transnational corporations and their role
in the world economy
c. Int ernational f inancial m anagem ent d ecisions
i. Alternative methods of financing imports and exports

ii. The workings of international money and capital markets and the opportunities that they
offer to companies as a source of finance and as a repository for the investment of funds
iii. The management of financial resources within a group of companies including:
• payments between companies

• cash management
• transfer pricing
• judging the performance of companies within a group
• the financial control of a group of companies
iv. The appraisal of international capital investments, applying the appropriate techniques,
and the consideration of the major issues in the decision-making process, including:
• strategic objectives
• the principle of foreign home country versus host country returns
• the form of foreign investments, including the use of branches versus subsidiaries
• the different methods of financing foreign investments
• the effect of taxation on foreign investment decisions
• repatriation of sales amounts, earnings and charges to foreign operating companies
• political risk analysis

Recommended Reading
PAPER E 16: Business Management
1. Strategic Management Concepts and The book ensures concept building for the
Cases by Fred R. David. topics on strategic management.
2. Principles of Marketing by Kotler Armstrong. The book gives an in-depth knowledge of the
principles of marketing and a good explanation
of basic marketing concepts.
3. Human Resource Management by H. John The book is relevant for various syllabus topics
Bernardin. under the mentioned grid.
4. Management and Organizational Behaviour A comprehensive and detailed explanation of

by Laurie J. Mullins. managerial practices is given in this book. The
book is a good guide for concepts in the field
of organizational behavior.
}
5. Business Studies by Dave Hall Rob Jones
and Carlo Raffo. The books comprehensively cover the following
topics: Business Strategy and environment,
6. AS Level and A Level Business Studies by marketing and human resources.
Peter Stimpson.

1. Business Management Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Business Management Study Text and Revision Series by Professional Business Publications
(PBP).

Final Examination Management Accounting
Module F
P AP ER F 1 7 : M a n a g e m e n t Ac c o u n t in g (100 marks)
Introduction
The object ives of this sy llabus are:
• The understanding of cost accounting in relation to management functions.

• The application of financial information for control purposes.
• The development and interpretation of data for decision making.
• The techniques for performance appraisal and operational research.
• The candidates» ability to design and present plans and schemes to the management.
The examinees are expected to possess comprehensive understanding of the subject over and above
what they have learnt at the Intermediate stage. Topics examined at the Intermediate stage may or may
not be directly re-examined here, however, examinees would need to utilize knowledge and skills learnt
earlier. The paper is designed to cover theory and practical aspects of management accounting with
special reference to Pakistan and real life situations.
Indicative Grid
1. a. Cost accounting objectives, classifications and systems
b. Cost concept in decision making
c. Marginal costing and decision making problems 30
d. Pricing and output decisions
2. a. Standard Costing
b. Budgetary controls
c. Management control systems
d. Activity based costing
e. Preparation and interpretation of financial forecasts 40
f. Cost control
g. Total quality management
h. Non financial risk management
3. Working capital management 15
4. Quantitative techniques
a. Learning curve
b. Network planning 15
c. Operational research and cost reduction
d. Linear programming
Total 100
Contents:
1. a. Cost accounting
Objective of a costing system; inventory valuation; cost classification; costing methods and
systems, cost estimation; cost apportionment; job order costing; product costing (including
process costing); and joint-and by-product.
b. Cos t concep t in decis ion m aking
Relevant and apportioned costs; differential cost, incremental cost; opportunity costs, and
break-even & cost volume profit analysis
c. Marg inal cost ing
Distinction between marginal costing and absorption costing; break-even analysis, cost
volume profit analysis. Various decision making options.
d. Pricing and outp ut d ecisions
Full cost pricing policies, including ROI; pricing of new products; opportunity cost; full cost vs
marginal cost; transfer pricing methods and optimisation.
2. a. Standard costing
Nature and method of standard, marginal and absorption costing; standard setting; variance
analysis and disposals of variances; use of standard costs in internal and external reporting;
responsibility accounting, comparison with budgets; classification of variances; and
planning and operational variances.
b. Budg ets
Concepts of budgetary control; advantages, administration and preparation of budget;

functional budgets leading to preparation of master budget; fixed and flexible budgets;
performance budgeting; the budget as part of the overall business plan; sales budget; sales
forecast; production budget; direct materials budget; direct labour budget; manufacturing
overhead budget; inventory budget; cost of goods sold budget; selling and administrative
expenses budget; inflation aspects; zero based budgets, capital expenditure budgets and
human & motivational aspects of budgets.
c. Manag ement control sy st ems
Responsibility accounting; decentralised divisional control; transfer prices; residual income

and ROI as tools of control; centralised control and budgetary systems; evaluation of
performance; performance budgeting. Reporting on performance at different levels.

d. Activ ity bas ed cost ing
Activity based costing for control and decision making purposes.
e. Prep aration and int erpret ation of f inancial forecas ts
Preparation of projected financial forecast and application of probability and regression

analysis in preparation of estimates
f. Cost Control Cost control as distinct from cost determination. Control over wastages, scrap,
spoilages, and defects.
g. Total quality management
Basic concepts and application of TQM
h. Non f inancial ris k m anagem ent
i. Aspects of risk, such as: political, economic, social, technological and fraud
ii. Techniques of minimising the risk of fraud, such as: fraud policy statements, effective
recruitment policies and good internal controls especially over procurement and cash
iii. Principle of diversifying risk (no numerical calculations required)
iv. Risk of loss while goods are in transit and the risk of litigation
3. Working Capital Management

a. Working capit al- g eneral
i. Working capital requirements

ii. Short term financial ratios
iii. Working capital and the operating cycle
iv. Sources of short and medium term finance
v. Problems relating to working capital management
b. Inv entory manag ement
i. Costs associated with the acquisition and holding of inventories

ii. The derivation and use of the economic order quantity (EOQ) model
iii. Optimal production plans
iv. Financial ratios of inventory
v. Lead-time, buffer stocks and stock-out costs
vi. Perpetual inventory and continuous stocktaking
vii. Just-in-time (JIT) stock management
c. Deb tor/ credit ors m anagement
i. Collection policies
ii. Credit policies
iii. Customer evaluation
iv. Credit financing (including factoring)
v. Financing of imports and exports

d. Cas h manag ement
i. Solvency and liquidity

ii. Cash flow forecasting
iii. Uncertainty in cash forecasting
iv. Short term investment opportunities
v. Cash handling and transmissions
4. Quantitative Techniques
a. Learning curve
The theory of learning curve and its effect in cost estimation
b. Net work planning
Concept and application; drawing simple networks; concept of critical path and float;
accelerated project times; cost analysis; uncertainly; probability analysis; loading analysis;
gantt charts; and time management.
c. Operat ional research and cos t reduct ion
Introduction to operational research, application concepts and its advantages. Cost reduction:
techniques for cost reduction such as work study, time and motion study and value analysis.
Employee participation in cost reduction programmes, significance of constituting special cost
reduction cells.
d. Linear prog ramming
Introduction to mathematical programming and major forms of linear programming, principles,

formulation of problems, graphical solutions, limitations of linear programming and shadow
price concept.
Not e: Questions will not be set involving application of simplex or assignment techniques.

Recommended Reading
PAPER F 17: Management Accounting
1. Cost Accounting by Matz and Uzry. The book covers almost all the parts of the
syllabus and ensures concept building by
giving examples on related topics especially
good for variances analysis and process
costing.
2. Management Accounting by Colin Drury. The book covers almost all the parts of the
syllabus and ensures concept building by
giving a variety of questions for each topic.
3. Financial Management by P.K. Jain and M. The book is relevant for various syllabus topics
Y. Khan. and contains a large number of questions for
practice.

1. Management Accounting Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Management Accounting Study Text and Revision Series by Professional Business Publications
(PBP).

Final Examination Business Finance Decisions
Module F
PA PE R F 1 8 : B u s in e s s F in a n c e D e c i s io n s (100 marks)
Introduction
The aims of the syllabus are to provide a sound understanding of the conceptual principles and
practical applications of modern analysis of financial decisions and of the relationship between sources
of finance and financial management.
The candidates are expected to have complete understanding for the preparation, evaluation and
implementation of practical business plans and reports on strategic and operational business
decisions.
The paper is designed to cover theory and practical aspects of financial management with special
reference to Pakistan and real life situations.
Indicative Grid
1. a. Sources of local finance
b. International financing and financial management
c. Capital structure, interest rate risks and cost of capital 30
d. The dividend decision
2. a. Capital investment decisions and project planning

b. Inflation and financial management 40
c. Risk and Returns, including portfolio management
3. a. Analysis and interpretation of published financial

statements
b. Strategic planning
c. Valuation 30
d. Mergers, amalgamations and acquisitions
e. Reports to management
Total 100

Contents:
1. a. Sources of local finance
i. Credit, money and capital markets in Pakistan
ii. Raising capital, equity, debt, mezzanine debt, convertibles, factoring, warrants, term
finance certificates, venture capital financing, project financing, short term finance.
iii. Financial leasing
iv. Futures
v. Pakistani stock markets
vi. Prudential regulations
b. Int ernational f inancing and f inancial m anagem ent
i. Raising international finance

ii. Introduction to international financial management
iii. Exchange rate risk management
iv. Foreign exchange transactions
c. Cap ital s truct ure, interes t rat e ris ks and cost of capit al
i. Capital structure: business and financial risk, financial gearing and operating gearing, the
effect of taxes ( except calculations involving the effect of personal taxes on capital
structure), and impact on earnings per share
ii. Interest rate risk management including the use of interest rate swaps
iii. Cost of capital, equity, debt, convertibles, weighted average rate and use of cost of capital
in investment appraisal.
d. The div idend d ecision
i. Dividend and valuation

ii. Information content of dividend, clientele effect and other factors affecting dividend levels.
2. a. Capital investment decisions and project planning

i. Investment appraisal techniques: NPV, IRR, payback, ROI; and comparison of NPV and
ROI
ii. Investment appraisal under inflationary conditions
iii. Relevant costs
iv. The effect of taxation upon investment appraisal
v. Replacement decisions using the equivalent annual cost method and deciding
replacement policy
vi. The effect on accounting profits and investor ratios of undertaking a particular investment
decision
vii. Lease or buy decisions
viii. Make or buy decisions
ix. Decisions under uncertainty, including expected values, sensitivity analysis and value of
information

x. Decisions under constraints, including interpretation of the linear programming output

including dual values (shadow prices and opportunity costs), assumptions and limitations
of linear programming, application of linear programming to capital rationing problems
xi. Preparation of project report and evaluation of proposals
xii. Social cost benefits analysis
xiii. Project planning techniques
b. Inf lation and f inancial manag ement
Inflation and financial analysis; project appraisal under inflationary conditions; relationship with
interest rates
c. Risk and returns , includ ing port folio m anagement
i. Measures of risk and return, and their relationship

ii. Portfolio analysis; risk reduction effects and diversification
iii. Attitudes to risk
iv. Capital assets pricing model and its practical use
3. a. Analysis and interpretation of published statements

i. Inter-firm and intra-firm comparisons through ratio analysis
ii. Limitations of ratio analysis
b. Strategic planning
i. Objectives
ii. Production functions and resource analysis
iii. Production strategy
iv. Manpower planning
v. Financial strategy
vi. Competition strategy
vii. Information strategy
viii. Business and corporate plans
ix. Implementation of business plans
c. Valuat ion
i. Valuation of business
w Earnings and asset valuation models

w Merger valuation models
w Attitudes to risk and analytical procedures for dealing with uncertainty
w Other factors ( e.g. the impact of the accounting treatment of goodwill and intangibles
on debt covenants; the nature of executives incentive contracts)
ii. Valuation of shares
w Earnings dividend and assets valuation models

w Valuing minority interests

w Valuing controlling interest

w Other factors influencing share values ( including uncertainty)
w Identify components of shareholder value and identify ways in which shareholders
value can be increased.
d. Merg ers, amalg amat ion, acquis ition, et c
Amalgamation, reconstruction, takeovers and mergers, including devising schemes and

advising management.
e. Report s t o m anagem ent
i. The design and presentation of plans and reports

ii. Designing various forms and reports for different levels of management
iii. Specific reports
w On acquisition and disposal of business or assets

w On application for new or additional borrowings
w On specialised one-off assignments (e.g. management buyouts)
w On other problem areas.
Recommended Reading
PAPER F 18: Business Finance Decisions
1. Financial Management by Eugene F. The book covers substantial part of the
Brigham and Michael C. Ehrhardt. syllabus.
2. Essentials of Financial Management by The book covers substantial part of the

George E. Pinches. syllabus.
3. Financial Management & Policy by James The book covers substantial part of the
C. Van Horne (Pearson Education). syllabus.
4. Modern Investments and Security Analysis The book is specifically written for security
by Russel J. Fuller & James L. Farrel Jr. analysis. It is a good source for concept
building.
5. Foundations of Finance by Keown, Petty, The book covers substantial area of syllabus.
Scott & Martin. Provides firm foundation for the subject.

1. Business Finance Decision Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Business Finance Decision Study Text and Revision Series by Professional Business
Publications (PBP).

Final Examination Advanced Taxation
Module F
P AP E R F 1 9 : A dv a n c e d T a x a t i on (100 marks)
Introduction
The objective of this paper is to test comprehensive knowledge and understanding of the examinees
on the income tax and sales tax laws prevailing in Pakistan, as are described below. The examinees
shall also be expected to have command on the practical application of the laws. A general knowledge
of the Central Excise Law will also be examined.
The paper covers the following laws.
w The Income Tax Ordinance, 2001

w The Sales Tax Act, 1990
w The Sales Tax Ordinance, 2000 promulgated by the Provinces
w The Islamabad Capital Territory (Tax on Services) Ordinance, 2001
w The Federal Excise Act, 2005
w Notifications, Rules, General orders and Circulars issued under the above mentioned laws
As candidates are required to have comprehensive knowledge of the laws described above, detailed
contents are, therefore, not given hereunder. The examinees are expected to possess profound
understanding of the subject over and above what they have learnt at the Intermediate stage. Topics
examined at an earlier stage may or may not be directly re-examined, however, examinees would need
to utilize knowledge and skills learnt at the Intermediate stage.
Knowledge of specific agreements for avoidance of double taxation will not be required. Candidates
are also not expected to quote specific legal cases.
Notifications and circulars in respect of Finance Act/Ordinance, issued within a period of less than six
months from the examination date will not be tested. However, the Finance Act/Ordinance would be
examined from the attempt following its date of enforcement.
Indicative Grid
A comprehensive knowledge and practical applications in
respect of:
1. Income Tax Laws 55 √ 65
2. Sales Tax Laws 25 √ 35
General knowledge in respect of :
3. The Federal Excise Act, 2005 (Chapters I & II only) 7 √ 15
Total 100

Final Examination Advanced Taxation
Recommended Reading
PAPER F 19: Advanced Taxation
}
1. Complete Income Tax Law by S.A. Salam.
These books cover all topics of syllabus,
2. Law & Practice of Income tax by regularly updated and also gives background
Dr. Ikram-ul-Haq. of any changes made to the law.
3. Sales Tax Ready Reference Act by S.A. Bare Act, Rules, Notifications; Circulars etc on
Salam. syllabus topics are included in the book with
brief explanations.
4. Federal Excise Act, 2005 including relevant The book covers the related topics of syllabus.
notifications, circulars etc. by Tariq Najeeb
}
Choudhry.
5. Practical Handbook of Income Tax by Dr.

Ikram-ul-Haq.
6. Synopsis of taxation by Mirza Munawar These are very useful books for understanding
Hussain. practical application of taxation.
7. Pakistan income tax law Principles and

Practice by Mian Safiullah & Kashif Aziz
Jahangiri.

Final Examination Advanced Auditing
Module F
P AP E R F 2 0 : A dv a n c e d Au d it in g (100 marks)
Introduction
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.
Students will be expected to have the knowledge of the International Standards on Auditing and
Related Services, the International Auditing Practice Statements, Technical Releases and circulars
issued by ICAP. For details see syllabus contents below.
Students will be expected to be aware of the role of Information Technology as part of the assurance
process and should be fully conversant with the use of Computer Assisted Audit Techniques (CAATs).
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, of laws, rules and
regulations covered in the Corporate Laws paper.
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.
Knowledge of the Code of Ethics for Chartered Accountants issued by ICAP, CA Ordinance and Bye-
Laws.
The students are encouraged to be abreast of current issues relating to the auditors and audit practice
as discussed / reported in accounting magazines, national press, etc.
The examinees are expected to possess a profound understanding of the subject over and above what
they have learnt at the Intermediate stage. Topics examined at the Intermediate stage may or may not
be directly re-examined here, however, examinees would be required to utilise knowledge and skills
acquired at the Intermediate stage.

Indicative Grid
1. Practical aspects in respect of areas of auditing
covered at Intermediate stage.
2. Advanced issues in planning an audit
35
3. Audit techniques and procedures
4. Evaluation of critical areas
5. Completion stages and the reporting function

6. Special reports 25
7. Special audits
8. Quality control for audit work

10
9. Management of audit clients and client relationships
10. International Standards on Assurance, Auditing & Related
Services, and International Auditing Practice Statements 30
11. Professional and ethical considerations
Total 100
Contents:
1. Practical aspects in respect of areas of auditing covered at Intermediate
stage
2. Advanced issues in planning an audit

a. Consideration of laws and regulations in the audit of financial statements.
b. Performance of client acceptance procedures at the time of accepting new audit

engagements and issuing engagement letters.
c. Cons iderat ion of the ef fect s on an aud it w hen:
i. The financial statements are audited for the first time; or

ii. when the financial statements for the prior period were audited by another auditor who has
expressed an unqualified or a qualified opinion.

d. The examination of prospective financial information and its effects on different stages of audit.
e. Obtaining knowledge of business and significant business risks, and using it to develop overall
audit approach plan.
f. Cons iderat ions in using the work of :
i. Internal auditors;
ii. experts;
iii. another auditor; and
iv. audit committees.
g. Determining the components of audit risk i.e. inherent risk, control risk, detection risk and use
of this assessment to formulate overall audit plan in order to keep the audit risk to an
acceptable low level.
h. Relationship between materiality and audit risk.
i. Development of the overall audit plan identifying the significant/critical audit areas.
j. Development of detailed audit programmes.
k. Organising and planning complex audit situations, including group audits, joint audits, multi-
location engagements, special purpose engagements including due diligence reviews and
related service engagements.
l. Identification of related parties and effects of transactions with related parties on the financial
statements and auditors» opinion.
m. Securit y is sues in com put erised s ys tem s:
(i) IFAC guideline on Managing Security of Information; and

(ii) Information Security Governance Guidance for Boards of Directors and Executive
Management. Both of these publications are available on IFAC website www.ifac.org.
n. Time budgeting, staffing and costing.
o. Changes to overall audit plan and audit programmes.
p. Maintenance and updating of Permanent audit files.
3. Audit techniques and procedures

Students should be able to identify objectives for particular audits, select and apply test of controls
and substantive procedures to obtain appropriate evidence, evaluate the evidence, and draw
reasonable conclusions including the following:

a. Id entif ying risk s of m aterial mis st atem ents in:
i. Existence, ownership / obligation, accuracy / measurement, valuation and completeness

of assets and liabilities;
ii. appropriateness of accounting policies and their consistent application; and
iii. disclosures in the financial statements of an entity, including additional information relating
to capital commitments and contingencies and effects of post balance sheet events.
b. Selecting one or more analytical procedures from comparison, averaging, ratio analysis and
quantitative analysis (but excluding correlation, regression, time-series analysis and more
advanced statistical techniques) to yield informative results relevant to identified risks.
c. Applying selected analytical procedures to given financial and other data.
d. Selecting one or more tests of controls and substantive procedures (using CAATs where
applicable) from inspection, observation, enquiry (including management representations,
assessment of the work of other auditors and specialists, and independent confirmations) and
computations to provide evidence relevant to identified risks which will be sufficiently
reliable and which avoid duplication of work.
e. Outlining the differences between statistical and non-statistical methods of sampling and
selecting samples from random, value-weighted, systematic, haphazard and block
populations.
f. Documentation of audit work alongwith evidence of review and conclusions drawn. Reporting
of significant issues identified during the audit.
g. Drawing straightforward conclusions regarding financial statements, given the results of

analytical procedures, audit tests and post balance sheet events.
These conclus ions should :
i. Present and justify a view, where there is sufficient evidence to do so;

ii. identify and justify requirements of further evidence, where there is insufficient evidence
to form a view but such evidence could practicably be obtained; and
iii. state that it is not possible to form a view, where there is insufficient evidence to do so and
such evidence could not practicably be obtained.
4. Evaluation of critical areas

a. Appropriateness of going concern assumption.
b. Ev aluating the eff ects on rep orting resp onsib ilities of an aud itor res ulting f rom:
i. pending legal action;

ii. fraud and error;
iii. non-compliance with laws and regulations; and
iv. taxation and tax related contingencies.
v. other post balance sheet events
c. Audit of accounting estimates.

5. Completion stages and the reporting function

a. Review of financial statements including comparative information, directors report and other
information included in documents containing audited financial statements to identify any
departures from legal requirements and / or IFRSs, inadequacies in disclosures, internal
inconsistencies and / or inconsistencies with other available information.
b. Adequate disclosure of events occuring after reporting period and their effect on the auditor»s
opinion.
c. Management representations regarding all significant matters.
d. Forming and justifying an opinion on financial statements in the light of supervisory reviews
and the results and conclusions from audit tests and procedures, which would comply with the
requirements of the Companies Ordinance, 1984 or other laws related to special entities.
e. Preparation of management letters, internal control memoranda of entities which include clear
and concise statements of facts, their potential effects and recommendations for actions
relevant to the needs and nature of the entity.
6. Special reports
a. Special purpose reports e.g. on forecasts and estimates etc.
b. Reporting and related services (compilation and review engagements).
c. Reports on prospectuses.
d. Certificates of auditors on statutory reports.
e. Reports relating to bonus issues.
f. Reports on prospective financial information.
g. Audit reports on special purpose audit engagements.
h. Special audit reports relating to forensic assignments.
i. Reporting on due diligence engagements.
j. Reporting on compliance with the Code of Corporate Governance.
k. Report on component of financial statements
l. Certificates on break-up value, net worth, right issue, other matters as specified from time to
time by Regulating authorities.
7. Special audits
a. Non statutory audits, cost audits, management audit, systems audits, operational audits,
forensic assignments (including money laundering aspects), due diligence reviews, internal
audit functions (in house and outsourced).
b. Audits of specialised enterprises e.g. banks, insurance companies, investment companies,

housing finance companies, employees» retirement funds.
8. Quality control for audit work

a. Quality control policies and proced ures:
i. at audit firms (peer reviews); and
ii. at individual audits.

b. Sp ecify ing q uality cont rol proced ures :
i. the independence of the audit firm and audit personnel;

ii. the skills and competence of audit personnel;
iii. procedures for review of the audit documentation
iv. handling and safeguarding the audit documentation
v. procedures to resolve technical disagreements which will be suitable for a specific audit
firm and which shall be cost effective;
vi. quality control reviews (internal and / or by ICAP); and
vii. the concept of audit committees.
9. Management of audit clients and client relationships

a. Managing the audit clients, including compiling and reviewing information on clients
throughout the year.
b. Managing the audit relationship including negotiating the fee for services and discussion of
administration and results of audit
c. Confidentiality.
d. Independence.
10. International Standards on Auditing Assurance, & Related Services, and

International Auditing Practice Statements
Students will be required to apply the standards and statements mentioned below to meet the
learning outcomes of Syllabus contents in paragraphs 1 to 9 above.
a. Detailed knowledge of International Standards on Auditing

b. sufficient knowledge of International Standards on Review Engagements
c. general awareness of International Auditing Practice Statements, International Standards on
Assurance Engagements and International Standards on Related Services
11. Professional and ethical considerations

Knowledge of ICAP Ordinance and Bye-Laws and Code of Ethics, adherence thereto and its
implementation and enforcement including but not limiting to the following:
a. Rules of p rofes sional conduct b. Prof ess ional res pons ibilit y and liab ility
i. integrity, objectivity and independence i. fraud and error

ii. professional duty of confidence ii. professional liability (including
iii. changes in professional appointments negligence)
iv. books, documents and papers iii. misconduct
v. corporate financial advice iv. expectation gap
vi. conflicts of interest v. professional indemnity insurance
vi. insider dealing

12. Case studies

Case studies will be based on the whole subject and knowledge acquired during practical training.
The candidates should be able to :
a. Select and apply analytical techniques and methods from the syllabus according to the
requirements of a particular case.
b. Prepare recommendations for action in response to the case.
Recommended Reading
PAPER F 20: Advanced Auditing
1. International Standards on Auditing, The book covers all topics of syllabus except
International Auditing Practice Statements, for Laws and Regulations related to auditing
International Standards on Review practice applicable in Pakistan. It contains
Engagement, International Standard detailed material including background,
Standards on Assurance Engagement, rationale and practical examples of each
International Standards on Related subject of the syllabus.
Services Issued by IAASB & IAPC, and is
published by ICAP as Handbook.
2. Code of Ethics for Chartered Accountants Part B of the Code covers the related topics of
issued and included in Handbook given at syllabus.
(1) above.
3. Companies Ordinance, 1984 by The book contains provisions related to

Government of Pakistan. appointment, removal, report etc. of auditor of
limited companies.
4. Advanced Auditing by Dr. Khawaja Amjad The book contains important material useful to
Saeed. deal with various issues of audit and related
services.

1. Advanced Auditing Study Text and Revision Series by AT Foulks Lynch Pakistan.
2. Advanced Auditing Study Text and Revision Series by Professional Business Publications
(PBP).
3. Selected Opinions, Technical Releases (Auditing).
4. Relevant issues of Members» Information and Education Series issued by ICAP.

Syllabus 2009 10

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Contents

Paper A1 Functional English 7

Paper C 6 Financial Accounting 23

Paper D 9 Company Law 32

Paper E 13 Information Technology Management, Audit and Control 51

Paper F 17 Management Accounting 72

The Institute of Chartered Accountants of Pakistan

LAYOUT OF THE BOOKLET

2. Practical use of Grammar 40

3. Composition and Comprehension 50

2. Practical Use of Grammar

i. Nouns vi. Prepositions i. Types of sentences

The Institute of Chartered Accountants of Pakistan 7

c. Punctuation d. Writing Mechanics

Periods, Question Marks, Exclamation Capitals, Abbreviations

3. Composition and Comprehension

Supplementary Study Material

3. Précis writing by R. Dhillon.

The Institute of Chartered Accountants of Pakistan 8

The Institute of Chartered Accountants of Pakistan 9

4. Matrix and Determinants

6. Methods of Least Square and Regression

7. Probability and Probability Distribution

8. Sampling and Decision Making

The Institute of Chartered Accountants of Pakistan 10

Supplementary Study Material

2. Quantitative Methods Study Text and Revision Series by Professional Business

The Institute of Chartered Accountants of Pakistan 11

i. Market forces of demand and supply; i. Production function and isoquants;

The Institute of Chartered Accountants of Pakistan 12

i. Circular flow of income;

b. Government and the Economy

i. Direct and indirect taxation;

d. Money & Monetary Policy

Role of the money and capital markets.

i. Trade and balance of payments;

The Institute of Chartered Accountants of Pakistan 13

Supplementary Study Material

3. First Principles of Economics: by Richard G Lipsey and Colin Hardbury.

4. Stanlake»s Introductory Economics: by SJ Grant.

The Institute of Chartered Accountants of Pakistan 14

2. Financial accounting practices 35

3. Receipt and payment accounts, income and expenditure 20

4. Other specialized areas 35

i. Definition and scope of business; iv. Types of finances including

The Institute of Chartered Accountants of Pakistan 15

v. Commercial Banks; x. Marketing channels;

i Fundamental accounting concepts including: ii Financial statements;

w Accrual basis w Components

2. Financial accounting practices

a) Accounting Records c) Adjustments before Final Accounts

i. Petty cash book and imprest system; i. Methods and recording of

The Institute of Chartered Accountants of Pakistan 16

3. Receipt and payment accounts and accounts from incomplete records

4. Other specialized areas

i Cost formulas (LIFO/ FIFO/ weighted average cost);

(Note: Cost Ac co un ting t ec hniqu es will no t be te ste d at th is sta ge )

b) Accounting for property, plant and equipment (IAS-16)

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

c) Branch accounts (excluding foreign branches);

d) Treatment of the following in partnership accounts:

The Institute of Chartered Accountants of Pakistan 17