CA Final – Group 2

CA Final – Group 2

  • Paper 5: Advanced Management Accounting

    Paper 5: Advanced Management Accounting
    (One paper – Three hours – 100 marks)

    Level of Knowledge: Advanced knowledge
    Objectives:
    To apply various management accounting techniques to all types of organizations for planning, decision making and control purposes in practical situations.
    To develop ability to apply quantitative techniques to business problems

    1. Cost Management
      1. Developments in the business environment; just in time; manufacturing resources planning; (MRP); automated manufacturing; synchronous manufacturing and back flush systems to reflect the importance of accurate bills of material and routings; world class manufacturing; total quality management.
      2. Activity based approaches to management and cost analysis
      3. Analysis of common costs in manufacturing and service industry
      4. Techniques for profit improvement, cost reduction, and value analysis
      5. Throughput accounting
      6. Target costing; cost ascertainment and pricing of products and services
      7. Life cycle costing
      8. Shut down and divestment.
    2. Cost Volume Profit Analysis
      1. Relevant cost
      2. Product sales pricing and mix
      3. Limiting factors
      4. Multiple scarce resource problems
      5. Decisions about alternatives such as make or buy, selection of products, etc.
    3. Pricing Decisions
      1. Pricing of a finished product
      2. Theory of price
      3. Pricing policy
      4. Principles of product pricing
      5. New product pricing
      6. Pricing strategies
      7. Pricing of services
      8. Pareto analysis
    4. Budgets and Budgetary Control
      • The budget manual, Preparation and monitoring procedures, Budget variances, Flexible budgets, Preparation of functional budget for operating and non-operating functions, Cash budgets, Capital expenditure budget, Master budget, Principal budget factors.
    5. Standard Costing and Variance Analysis
      • Types of standards and sources of standard cost information; evolution of standards, continuous -improvement; keeping standards meaningful and relevant; variance analysis; disposal of variances.
        1. Investigation and interpretation of variances and their inter relationship
        2. Behavioural considerations.
    6. Transfer pricing
      1. Objectives of transfer pricing
      2. Methods of transfer pricing
      3. Conflict between a division and a company
      4. Multi-national transfer pricing.
    7. Cost Management in Service Sector
    8. Uniform Costing and Inter firm comparison
    9. Profitability analysis - Product wise / segment wise / customer wise
    10. Financial Decision Modeling
      1. Linear Programming
      2. Network analysis - PERT/CPM, resource allocation and resource leveling
      3. Transportation problems
      4. Assignment problems
      5. Simulation
      6. Learning Curve Theory
      7. Time series forecasting*
      8. Sampling and test of hypothesis*

    * The Council has decided to exclude these topics effective from May, 2011 examination onwards.

  • Paper 6: Information Systems Control and Audit

    Paper 6: Information Systems Control and Audit
    (One paper – Three hours – 100 marks)
    [Applicable up to May, 2014 Examination]

    Level of Knowledge: Advanced knowledge

    Objective:
    To gain application ability of necessary controls, laws and standards in computerized Information system.

    Contents:

    1. Information Systems Concepts
      • General Systems Concepts – Nature and types of systems, nature and types of information, attributes of information.
      • Management Information System – Role of information within business
      • Business information systems –various types of information systems – TPC, MIS, DSS, EIS, ES
    2. Systems Development Life Cycle Methodology
      • Introduction to SDLC/Basics of SDLC
      • Requirements analysis and systems design techniques
      • Strategic considerations : Acquisition decisions and approaches
      • Software evaluation and selection/development
      • Alternate development methodologies- RAD, Prototype etc
      • Hardware evaluation and selection
      • Systems operations and organization of systems resources
      • Systems documentation and operation manuals
      • User procedures, training and end user computing
      • System testing, assessment, conversion and start-up
      • Hardware contracts and software licenses
      • System implementation
      • Post-implementation review
      • System maintenance
      • System safeguards
      • Brief note on IS Organisation Structure
    3. Control objectives
      1. Information Systems Controls
        • Need for control
        • Effect of computers on Internal Audit
        • Responsibility for control – Management, IT, personnel, auditors
        • Cost effectiveness of control procedure
        • Control Objectives for Information and related Technology (COBIT)
      2. Information Systems Control Techniques
        • Control Design: Preventive and detective controls, Computer-dependent control, Audit trails, User Controls (Control balancing, Manual follow up)
        • Non-computer-dependent (user) controls: Error identification controls, Error investigation controls, Error correction controls, Processing recovery controls
      3. Controls over system selection, acquisition/development
        • Standards and controls applicable to IS development projects
        • Developed / acquired systems
        • Vendor evaluation
        • Structured analysis and design
        • Role of IS Auditor in System acquisition/selection
      4. Controls over system implementation
        • Acceptance testing methodologies
        • System conversion methodologies
        • Post implement review
        • Monitoring, use and measurement
      5. Control over System and program changes
        • Change management controls
        • Authorization controls
        • Documentation controls
        • Testing and quality controls
        • Custody, copyright and warranties
        • Role of IS Auditor in Change Management
      6. Control over Data integrity, privacy and security
        • Classification of information
        • Logical access controls
        • Physical access controls
        • Environmental controls
        • Security concepts and techniques – Cryptosystems, Data Encryption Standards (DES), Public Key Cryptography & Firewalls
        • Data security and public networks
        • Monitoring and surveillance techniques
        • Data Privacy
        • Unauthorised intrusion, hacking, virus control
        • Role of IS Auditor in Access Control
    4. Audit Tests of General and Automated Controls
      1. Introduction to basics of testing (reasons for testing);
      2. Various levels/types of testing such as:
        1. Performance testing,
        2. Parallel testing,
        3. Concurrent Audit modules/Embedded audit modules, etc.
    5. Risk assessment methodologies and applications:
      1. Meaning of Vulnerabilities, Threats, Risks, Controls,
      2. Fraud, error, vandalism, excessive costs, competitive disadvantage, business, interruption, social costs, statutory sanctions, etc.
      3. Risk Assessment and Risk Management,
      4. Preventive/detective/corrective strategies
    6. Business Continuity Planning and Disaster recovery planning:
      1. Fundamentals of BCP/DRP,
      2. Threat and risk management,
      3. Software and data backup techniques,
      4. Alternative processing facility arrangements,
      5. Disaster recovery procedural plan,
      6. Integration with departmental plans, testing and documentation,
      7. Insurance
    7. An over view of Enterprise Resource Planning (ERP)
    8. Information Systems Auditing Standards, guidelines, best practices (BS7799, HIPPA, CMM etc.)
    9. Drafting of IS Security Policy, Audit Policy, IS Audit Reporting - a practical perspective
    10. Information Technology Act, 2000



    Revised Syllabus – Applicable from November, 2014 Examination onwards
    (One Paper- Three hours - 100 marks)

    Level of Knowledge: Advanced knowledge
    Objectives:
    "To develop competencies and skill-sets in evaluation of controls and relevant evidence gathering in an IT environment using IT tools and techniques for effective and efficient performance of accounting, assurance and compliance services provided by a Chartered Accountant".

    Contents:

    1. Concepts of Governance and Management of Information Systems
      • Governance, Risk and compliance and relationship between governance and management.
      • Role of information technology and IS Strategy in business strategy, operations and control , business value from use of IT, business impact of IS risks different types of Information Systems Risks, IS Risk management overview, IT Compliance overview – Role and responsibilities of top management as regards IT-GRC. Role of Information Systems Assurance. Overview of Governance of Enterprise IT and COBIT
      • Information Systems Concepts
      • Overview of information systems in IT environment and practical aspects of application of information systems in enterprise processes. Information as a key business asset and its relation to business objectives, business processes and relative importance of information systems from strategic and operational perspectives. Various types of business applications, overview of underlying IT technologies.
    2. Protection of Information Systems
      • Need for protection of Information systems, types of controls, IT general controls, logical access controls & application controls. Technologies and security management features, IS Security Policies, procedures, practices, standards and guidelines, IT controls and control objectives, Role of technology systems in control monitoring, segregation of duties. Impact of IT controls on Internal controls over financial reporting, cyber frauds and control failures.
    3. Business Continuity Planning and Disaster recovery planning
      • Assessing Business Continuity Management, Business Impact Analysis and Business Continuity Plans, Disaster recovery from perspective of going concern, Recovery Strategies
    4. Acquisition, Development and Implementation of Information Systems (SDLC)
      • Business process design (integrated systems, automated, and manual interfaces), Software procurement, RFP process, evaluation of IT proposals, computing ROI, Computing Cost of IT implementation and cost benefit analysis, systematic approach to SDLC and review of SDLC controls at different stages.
    5. Auditing & Information Systems
      • Different types of IS audit and assurance engagements. Evaluating IT dependencies for audit planning. Overview of continuous auditing. Auditing Information Systems- Approach methodology, and standards for auditing information systems. IS Audit planning, performing an IS audit, rules of digital evidence, best practices and standards for IS audit.
      • Reviewing General Controls, Application Controls, Application control reviews: Review of controls at various levels/layers such as: Parameters, user creation, granting of access rights, input, processing and output controls.
    6. Information Technology Regulatory issues
      • Overview of Specific section of IT Act 2008 & Rules as relevant for assurance: Electronic Contracting, digital signatures, cyber offences, etc. Need for systems audit as per various regulations such as: SEBI Clause 49 listing requirements and internal controls, systems control & audit requirements as per RBI, SEBI, IRDA. Concepts of Cyber forensics/Cyber Fraud investigation, Overview of Information Security Standards ISO 27001, ISAE 3402/SA 402, ITIL
    7. Emerging Technology: Overview of Cloud Computing, Software as a Service, Mobile Computing & BYOD, Web 2.0 & social media, Green IT and related security and audit issues

    Note – If new legislations are enacted in place of the existing legislations relating to income tax and wealth tax, the syllabus will accordingly include such new legislations in the place of the existing legislations with effect from the date to be notified by the Institute.

  • Paper 7: Direct Tax Laws

    Paper 7: Direct Tax Laws
    (One Paper- Three hours - 100 marks)

    Level of Knowledge: Advanced knowledge
    Objectives:
    (a) To gain advanced knowledge of the provisions of direct tax laws,
    (b) To acquire the ability to apply the knowledge of the provisions of direct tax laws to various situations in actual practice.

    Contents:

    1. The Income-tax Act, 1961 and Rules thereunder (90 marks)
    2. The Wealth-tax Act, 1957 and Rules thereunder (10 marks)
      • While covering the direct tax laws, students should familiarise themselves with considerations relevant to tax management. These may include tax considerations with regard to specific management decisions, foreign collaboration agreements, international taxation, amalgamations, tax incentives, personnel compensation plans, inter-relationship of taxation and accounting, with special reference to relevant accounting standards and other precautions to be observed to maximise tax relief. Further, they should have a basic understanding about the ethical considerations in tax management and compliance with taxation laws.

    Note – If new legislations are enacted in place of the existing legislations relating to income tax and wealth tax, the syllabus will accordingly include such new legislations in the place of the existing legislations with effect from the date to be notified by the Institute.

  • Paper 8: Indirect Tax Laws

    Paper 8: Indirect Tax Laws
    (One paper – Three hours – 100 marks)
    [Applicable up to May, 2014 Examination]

    Level of Knowledge: Advanced knowledge
    Objective:
    (a) To gain expert knowledge of the principles of the laws relating to central excise customs and service tax,
    (b) To acquire the ability to apply the knowledge of the provisions of the above-mentioned laws to various situations in actual practice.

    Contents:
    Section A: Central Excise (40 Marks)
      Central Excise Act, 1944 and the related Rules, Circulars and Notifications; Central Excise Tariff Act, 1985 and the related Rules.


    Section B: Service Tax & VAT (40 Marks)
    Law relating to service tax as contained in the Finance Act, 1994 as amended from time to time and the related Rules, Circulars and Notifications.
    Issues related to Value Added Tax:

    1. Backdrop for State-Level VAT in India
    2. Taxonomy of VAT
    3. Input tax credit, tax invoices
    4. Small dealers and composition scheme
    5. VAT procedures
    6. VAT in relation to incentive schemes, works contract, lease transactions and hire purchase transactions.
    7. VAT and Central Sales Tax


    Section C: Customs (20 Marks)

    • Customs Act, 1962 and the related Rules, Circulars and Notifications; Customs Tariff Act, 1975 and the related Rules.
    • While covering the above laws, students should familiarize themselves with the inter-relationship of accounting with excise, customs and service tax and also the ethical considerations involved in the compliance of these laws.

    Note – If new legislations are enacted in place of the existing legislations relating to central excise, customs and service tax, the syllabus will accordingly include such new legislations in place of the existing legislations with effect from the date to be notified by the Institute. Students shall not be examined with reference to any particular State VAT Law.




    Revised Syllabus – Applicable from November, 2014 Examination onwards
    (One Paper – Three hours – 100 marks)

    Level of Knowledge: Advanced knowledge
    Objectives:
    (a) To gain advanced knowledge of the principles of the laws relating to central excise, service tax and customs
    (b) To acquire the ability to apply the knowledge of the provisions of the above-mentioned laws to various situations in actual practice

    Contents:
    Section A: Central Excise (25 marks)
    Central Excise Act, 1944 and the Central Excise Tariff Act, 1985

    Section B: Service Tax (50 marks)
    Law relating to service tax as contained in the Finance Act, 1994 as amended from time to time

    Section C: Customs and Foreign Trade Policy (25 marks)
    Customs Act, 1962, Customs Tariff Act, 1975 and Foreign Trade Policy to the extent relevant to the Customs Law

    Note – If new legislations are enacted in place of the existing legislations relating to central excise, customs and service tax, the syllabus will accordingly include such new legislations in place of the existing legislations with effect from the date to be notified by the Institute.