SYLLABUS AUTUMN - 2015
SYLLABUS
Against each content of the syllabus, the given number shows the level of understanding expected by the Institute.
The levels are explained as under:
Level 1
The competency of this level requires understanding and awareness of the subject matter and related concepts.
The persons will be expected to have ability to understand the nature of basic concepts.
Level 2
The competency of this level requires good understanding and detailed evaluation of the subject matter and
related concepts, along with the ability to apply concepts and skills in simple professional scenario. The persons
will be expected to have ability to provide reasonable justification and logical explanation to support their
professional judgment and decision making.
Level 3
The competency of this level requires in-depth understanding of the subject matter and related concepts. The
person will be expected to have ability to critically examine and evaluate all concepts and available information
to make firm professional judgments and make decisions.
TABLE OF CONTENTS
Syllabus
Page No.
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
AFC-1
FUNCTIONAL ENGLISH
1
AFC-2
BUSINESS COMMUNICATION
3
AFC-3
QUANTITATIVE METHODS
6
AFC-4
INTRODUCTION TO INFORMATION TECHNOLOGY
13
CERTIFICATE IN ACCOUTNING AND FINANCE
CAF-1
INTRODUCTION TO ACCOUNTING
18
CAF-2
INTRODUCTION TO ECONOMICS AND FINANCE
24
CAF-3
BUSINESS LAW
29
CAF-4
BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES
37
CAF-5
FINANCIAL ACCOUNTING AND REPORTING I
44
CAF-6
PRINCIPLES OF TAXATION
48
CAF-7
FINANCIAL ACCOUNTING AND REPORTING II
53
CAF-8
COST AND MANAGEMENT ACCOUNTING
58
CAF-9
AUDIT AND ASSURANCE
64
PCSC-01
PRESENTATION AND COMMUNICATION SKILLS COURSE - I
75
PCSC-02
PRESENTATION AND COMMUNICATION SKILLS COURSE - II
76
AFC-1
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
*FUNCTIONAL ENGLISH
Objective
To ensure that candidates can communicate effectively in the English language.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
use a range of vocabulary correctly
2
construct sentences using correct grammar
3
demonstrate the ability of speed reading and comprehension.
Grid
Weighting
Vocabulary
15-20
Practical use of Grammar
20-25
Comprehension and Speed reading (General)
10-15
Total
Syllabus
Ref
A
Contents
Level
50
Learning Outcome
English
Vocabulary
1
B
Meanings and application of vocabulary
listed on:
a: “The Oxford 3000- Seventh Edition”,
and
b: Any other list as the Institute may
provide at any time before the conduct of
Examination.
3
LO1.1.1: Comprehend the role that
language plays in different contexts
LO1.1.2: Identify the correct meaning of
the word and use synonyms or antonyms
for the given words in a sentence
LO1.1.3: Construct meaningful sentences
using the prescribed word list.
Practical use of Grammar
1
Parts of speech
3
LO2.1.1: Suggest the use of verb, adverb,
noun, pronoun, adjective, preposition,
conjunction and interjection in
constructing sentences.
2
Rules of sentences
3
LO2.2.1: Understand and determine
declarative, interrogative, imperative,
exclamatory and optative sentences
LO2.2.2: Understand and identify simple,
compound, complex, multiple and
conditional sentences.
3
Phrases and idioms
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LO2.3.1: Construct meaningful sentences
using commonly used phrases and idioms.
1
Syllabus
Ref
Contents
Level
Learning Outcome
4
Tenses
3
LO2.4.1: Understand and apply rules of
tenses in sentences.
5
Direct and indirect speech
3
LO2.5.1: Understand the difference
between direct and indirect speech.
LO2.5.2: Use direct speech with the
correct punctuations and various reporting
verbs
LO2.5.3: Identify the changes incidental
to the transformation of direct speech to
indirect speech.
6
Active and passive voice
3
LO2.6.1: Change the active voice to passive
voice and passive voice to active voice.
7
Punctuation
3
LO2.7.1: Determine the appropriate use of
capital letter, question mark, exclamation
mark, full stop, semi-colon, comma, colon,
apostrophe, quotation marks, brackets,
dash, hyphen, ellipsis.
Comprehension and Speed reading
(General)
C
1
Comprehension
3
LO3.1.1: Comprehend a brief write up and
answer questions based on that write up
2
Speed reading
3
LO3.2.2: Assimilate the key contents of
a lengthy write up and answer questions
based on that write up.
Note: *Syllabus has been revised in 264th meeting of the Council held on May 8th and 9th, 2015.
SYLLABUS AUTUMN - 2015
2
AFC-2
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
*BUSINESS COMMUNICATION
Objective
To ensure that candidates can communicate effectively while performing their professional responsibilities.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
comprehend concepts of business communication
2
demonstrate awareness of intra-personal and interpersonal skills
3
understand formats of basic business messages and message-writing etiquette
4
understand the utility of the internet with respect to business communication.
Grid
Weighting
Concepts
10-15
Intra-personal and Interpersonal skills
20-25
Communication via the internet
10-15
Total
Syllabus
Ref
A
1
2
Contents
Business Communication
Concepts
Introduction to business communication
Communication process
Level
3
2
50
Learning Outcome
LO1.1.1: Define business
communication
LO1.1.2: Describe with simple examples
the goals, patterns (formal and
informal), and channels of business
communication.
LO1.2.1: Define “communication
process”
LO1.2.2: Explain and illustrate the
components of the communication
process, namely: context, sender,
message, medium, recipient and
feedback
LO1.2.3: Identify the information needs
of the organization and its sources,
levels and usefulness for effective
communication
LO1.2.4: Explain with simple examples
the barriers to effective communication
LO1.2.5: Describe different methods
of communication and also state its
appropriate medium
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Syllabus
Ref
3
B
1
2
Contents
Seven C’s of effective communication
Intra-personal and inter-personal skills
Nature of Intra-personal communication
Nature of Interpersonal communication
Level
3
Learning Outcome
LO1.2.6: Classify different types of
communication networks and describe
their influence on the communication
process within an organization.
LO1.3.1: Describe with simple
examples the seven C’s of effective
communication
LO1.3.2: Identify weaknesses in a given
simple communication process applying
the Seven C’s concept and suggest
corrections.
3
3
LO2.1.1: Develop an awareness and
appreciation of the importance of intrapersonal communication
LO2.1.2: Identify the basic aspects
of intra-personal communication
including self-concept, perception and
expectation.
LO2.2.1: Identify the axioms of
interpersonal communication
LO2.2.2: Specify the purposes of
interpersonal communication
LO2.2.3: Determine the role of
stereotypes in the communication
process
LO2.2.4: Identify the role of
communication conflict in intercultural
relationships
LO2.2.5: Explain the key ways to
improve interpersonal skills
3
4
5
Critical Thinking
Non-verbal communication
Verbal communication
3
3
3
LO2.2.6: Identify the elements and
traits of ethics in interpersonal
communication.
LO2.3.1: Explain the difference between
creative thinking and critical thinking
LO2.3.2: Assess the effect of critical
thinking over communication.
LO2.4.1: Identify forms of non-verbal
communication including facial
expressions, posture, gestures, eye
contact, voice and touch
LO2.4.2: Explain the uses of non-verbal
messages.
LO2.5.1: Contrast between oral and
written communication
LO2.5.2: Explain and account for the
basic forms of oral communication
including; face to face communications,
interviews, telephone conversations,
grapevine, negotiations, meetings,
lecture/speech.
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Syllabus
Ref
Contents
Level
Learning Outcome
LO2.5.3: Contrast between speaking and
listening skills
LO2.5.4: Develop a personal,
constructive approach to dealing with
conflict situations though speech
communication strategies of conflict
resolution
LO2.5.5: Explain the principles of
preparing and delivering an effective
public speech
LO2.5.6: Explain the importance
of listening in effective business
communication
6
Visual communication
2
7
Written Communication
3
LO2.5.7: Describe types and barriers to
listening.
LO2.6.1: Assess the role of visual
communication in simplifying and
comparing information and illustrating
trends and ideas.
LO2.7.1: Classify the types of business
letters and circulars
LO2.7.2: Determine the qualities of an
effective letter and circular
LO2.7.3: Describe the different
components of business letter
LO2.7.4: Explain the salient features of
the persuasive letters and circulars
LO2.7.5: State the meaning and purpose
of a short business report
LO2.7.6: Describe the contents of a
business report
LO2.7.7: Differentiate between different
types of reports
C
LO2.7.8: Explain the contents of
different types of reports.
1
Communication via the internet
Website hosting (types and services)
1
2
Types of electronic communication
2
LO3.1.1: State meaning, types and
services of web hosting.
LO3.2.1: Explain the main features
and practical use of social networking
forums, blogs, podcasting, discussion
boards, messaging, video conferencing
and email
LO3.2.2: Discuss the benefits and
limitations of various types of electronic
communication.
Note: *Syllabus has been revised in 264th meeting of the Council held on May 8th and 9th, 2015.
SYLLABUS AUTUMN - 2015
5
AFC-3
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
QUANTITATIVE METHODS
Objective
To develop the ability to apply quantitative methods and statistics to business problems.
Learning Outcome
On completion of this paper the candidate will be able to:
1
understand basic mathematics to build a base for financial analysis and transform business problems
into mathematical equations
2
apply financial mathematics to solve business problems
3
analyse business solutions and identify feasible, alternative optimum and unbounded solutions
using graphical methods
4
evaluate maximised profit, minimised cost and feasible manufacturing quantity by using calculus
5
analyse production planning cases and formulate solutions using matrices
6
present collected data using diagrams, charts and graphs and evaluate common measures of
dispersion and central tendencies
7
evaluate the impact of inflation and rebase numbers using indices
8
use statistical methods in analyzing historical data for decision making and estimating future
outcomes
9
explain and apply probability theory
10
explain sampling and explain and carry out tests of significance.
Grid
Weighting
Mathematics
Basic mathematics
10-15
Financial mathematics
15-25
Calculus
10-15
Matrices and determinants
10-15
Statistics
Statistical methods
20-25
Methods of least square and regression
5-10
Probability and probability distribution
5-10
Sampling and decision making
5-10
Total
SYLLABUS AUTUMN - 2015
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6
Syllabus
Ref
Contents
A
Mathematics
a
Basic mathematics
1
Exponential and logarithmic functions
Level
2
Learning Outcome
LO1.1.1: Demonstrate adequate
knowledge of laws of logarithm
LO1.1.2: Make use of logarithms in
solving business problems
LO1.1.3: Perform calculations involving
exponential and logarithmic functions
LO1.1.4: Analyse the behaviour of
business problems involving exponential
and logarithmic functions.
2
Equation of straight line
2
LO1.2.1: Demonstrate adequate
understanding of various forms of the
equation of a straight line.
3
Application of straight line in business
and economics
2
LO1.3.1: Identify business situations
where the equation of a straight line
could be used
LO1.3.2: Use the equation of a straight
line in relevant business problems.
4
Simultaneous equation- linear and
quadratic
2
LO1.4.1: Demonstrate adequate
command of solving simple equations,
including two variable simultaneous
equations and quadratic equations.
5
Coordinate system
2
LO1.5.1: Demonstrate understanding of
the coordinate system and be able to
prepare graphs of linear equations.
6
System of linear inequalities and their
graphical presentation
2
LO1.6.1: Demonstrate an understanding
of linear inequalities
LO1.6.2: Demonstrate the graphical
presentation of linear inequalities.
7
Factorisation of equations including
factorisation by completion of squares
2
LO1.7.1: Perform multiplication and
division operations on linear and
quadratic equations
LO1.7.2: Solve quadratic equations by
factoring and by completing the square
method.
8
Arithmetic progression
2
LO1.8.1: Identify situations where data is
in arithmetic progression
LO1.8.2: Use arithmetic progression in
business problems to calculate monthly
instalments, first instalment, total
amount paid and total time required for
settlement of a loan etc.
9
Geometric progression
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LO1.9.1: Use geometric progression in
relevant situations.
7
Syllabus
Ref
Contents
Level
Learning Outcome
b
Financial mathematics
1
Simple interest
2
LO2.1.1: Calculate interest value using
simple interest.
2
Compound interest
2
LO2.2.1: Calculate interest value using
compound interest.
3
Present value
2
LO2.3.1: Calculate the present value of a
future cash sum using both a formula and
tables
LO2.3.2: Calculate the net present value
(NPV) of a project
LO2.3.3: Use NPVs to choose between
mutually exclusive projects..
4
Future values
2
LO2.4.1: Calculate future values using
both simple and compound interest.
5
Annuities
2
LO2.5.1: Calculate the present value of an
annuity using both a formula and tables.
6
Internal rate of return
2
LO2.6.1: Explain with examples the use of
the internal rate of return of a project.
7
Interpolation and perpetuities
2
LO2.7.1: Calculate the present value of
perpetuity.
c
Linear programming
1
Graphical solution to linear programming
problems involving redundant
constraints, bounded and unbounded
feasible regions, no feasible solution and
alternative optimum solution
2
LO3.1.1: Demonstrate adequate expertise
in transforming a business problem into a
system of linear programming
LO3.1.2: Identify constraints and cost
minimization or profit maximization
functions
LO3.1.3: Identify the redundant
constraint
LO3.1.4: Use the Corner Point Theorem
LO3.1.5: Prepare a graphical solution of a
linear programming problem
LO3.1.6: Analyse a graphical solution and
identify whether it has a bounded or an
unbounded feasible region or no feasible
solution at all
LO3.1.7: Analyse the solution of a linear
programming problem and identify
alternative and optimum solutions, if any
exist.
d
Calculus
1
Rules for differentiation- Sum,
difference, product and quotient rules of
differentiation
2
LO4.1.1: Demonstrate an adequate
understanding of rules of differentiation.
2
Marginal function, calculation of revenue,
cost and profit of marginal unit
2
LO4.2.1: Make use of differentiation
techniques in determining marginal
functions
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Syllabus
Ref
Contents
Level
Learning Outcome
LO4.2.2: Calculate revenue, cost
and profit of a marginal unit using
differentiation techniques.
3
Use of second order derivatives; maxima,
minima and point of inflexion.
e
Matrices and determinants
1
Fundamentals of matrices, addition,
subtraction, multiplication, inverse of
matrices
2
LO4.3.1: Demonstrate the application of
second order derivatives in calculating
maxima, minima and the point of
inflexion.
2
LO5.1.1: Demonstrate an adequate
knowledge of matrix algebra (addition,
subtraction and multiplication)
LO5.1.2: Calculate the determinant,
adjoint and inverse of a matrix
LO5.1.3: Make use of the properties
of determinants while calculating
determinants.
2
B
Solution of simultaneous linear equations
using Cramer’s Rule and Matrix Inverse
Method
2
LO5.2.1: Represent simultaneous linear
equations in matrix form
LO5.2.1: Solve simultaneous linear
equations using Cramer’s Rule and Matrix
Inverse Method.
Statistics
a
Presentation and use of data
1
Collection and tabulation of data
2
LO6.1.1: Classify different types of data
LO6.1.2: Perform data collection through
various methods
LO6.1.3: Organise and summarise data
and present it as a frequency distribution.
2
Presentation through graphs, charts and
diagrams, including stem and leaf display,
box and whisker plot
2
LO6.2.1: Present data using a simple
bar chart, a multiple bar chart and a
component bar chart
LO6.2.2: Construct pie charts, histograms,
frequency polygons, ogives, stem and leaf
displays and box and whisker plots
LO6.2.3: Analyse graphical
representations of data.
3
Measures of central tendencies and
measures of dispersions
2
LO6.3.1: Calculate various measures of
central tendency such as mode, median,
arithmetic, geometric and harmonic
means
LO6.3.2: Analyse the advantages and
disadvantages of various central tendency
measures
LO6.3.3: Identify the characteristics and
measures of dispersion
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Syllabus
Ref
Contents
Level
Learning Outcome
LO6.3.4: Use measures of dispersion,
such as standard deviation or variance,
to ascertain the degree of variation or
variability in a distribution.
b
Index numbers
1
Index numbers, weighted index numbers,
concept of purchasing power and
deflation of income
2
LO7.1.1: Define the index number and its
types
LO7.1.2: Use different formulae/methods
to calculate various types of index
number
LO7.1.3: Analyse the uses and limitations
of index numbers. For example, use index
numbers to deflate or inflate a series and
explain the result.
c
Methods of least square and regression
1
Scatter diagram, linear relationship,
simple linear regression lines by method
of least square
2
LO8.1.1: Demonstrate an understanding
of scatter diagrams, including their
construction, uses and limitations
LO8.1.2: Demonstrate an understanding
of the basic concept of regression lines
and how they are used
LO8.1.3: Use least squares linear
regression to construct a regression line
(line of best fit)
LO8.1.4: Analyse regression lines
LO8.1.5: Use a regression line to calculate
a forecast of the value of a dependent
variable where given the value of an
independent variable.
2
Simple linear correlation
2
LO8.2.1: Demonstrate an understanding
of the basic concept of correlation
coefficient analysis.
3
Coefficient of correlation and
determination
2
LO8.3.1: Calculate and analyse
coefficients of correlation and
determination.
4
Rank correlation
2
LO8.4.1: Define rank correlation
LO8.4.2: Calculate the rank correlation
coefficient between two sets of data and
explain the value.
d
Probability and probability distribution 1
Counting techniques
2
LO9.1.1: Use counting techniques, like
the mn counting rule and factorials for
calculating, for example, a total number
of outcomes
LO9.1.2: Use permutations and
combination to calculate the total
number of possible selections from a set
of data.
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Syllabus
Ref
Contents
Level
Learning Outcome
2
Probability
2
LO9.2.1: Understand the definition of
probability and other basic terms as well
as their applications.
3
Addition law for mutually exclusive and
not mutually exclusive events
2
LO9.3.1: Use the addition rule while
calculating probabilities
LO9.3.2: Identify the difference between
mutually exclusive and non-mutually
exclusive events.
4
Multiplicative laws for dependent and
independent events
2
LO9.4.1: Identify the difference between
dependent and independent events
LO9.4.2: The use of multiplication rule
while calculating conditional probabilities.
5
Binomial distribution
2
LO9.5.1: Account for the assumptions
that underlie the Binomial distribution
LO9.5.2: Demonstrate the use of Binomial
distribution to calculate probabilities.
6
Poisson distribution
2
LO9.6.1: Account for the properties of the
Poisson distribution
LO9.6.2: Demonstrate the use of
the Poisson distribution to calculate
probabilities.
7
Hyper-geometric distribution
2
LO9.7.1: Identify situations where Hypergeometric distribution could be used
LO9.7.2: Demonstrate the use of Hypergeometric distribution to calculate
probabilities.
8
Normal distribution
2
LO9.8.1: Demonstrate the use of normal
distribution including the use of tables
LO9.8.2: Demonstrate the application
of the normal distribution to calculate
probabilities.
e
Sampling and decision making
1
Simple random sampling
2
LO10.1.1: Understand the terms,
population and sample
LO10.1.2: Explain methods for selecting a
simple random sample.
2
Sampling distribution of mean
2
LO10.2.1: Define and construct a
sampling distribution of the sample
means
LO10.2.2: Calculate the mean and
standard deviation of a sampling
distribution of sampling means.
3
Standard error of mean
2
LO10.3.1: Calculate standard error of
mean.
4
Sampling with and without replacement
2
LO10.4.1: Select an appropriate sampling
technique for calculating the probabilities
of sample means.
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Syllabus
Ref
5
Contents
Testing of hypothesis for population
means, difference between population
means and population proportion and
difference between two population
proportions
Level
2
Learning Outcome
LO10.5.1: Demonstrate the use of
hypothesis testing, significance testing
and testing a hypothesis
LO10.5.2: Perform hypothesis test of
populations means based on small and
large samples
LO10.5.3: Perform hypothesis tests of
the difference between two population
means based on small and large samples
LO10.5.4: Perform hypothesis tests of
the difference between two population
proportions
LO10.5.5: Select appropriate distributions
i.e., z or t for constructing a confidence
interval for a population mean.
6
Single population variance based on test
of Chi-square.
2
LO10.6.1: Use the Chi-square distribution
to perform tests of goodness of fit and
independence.
7
Confidence interval for estimating
population means, proportions and
variance, and differences between
proportions means, proportions and
variance.
2
LO10.7.1: Construct the confidence
interval for population means and
difference of means
Problems of determination of sample size
for the study of population mean and
proportion.
2
8
SYLLABUS AUTUMN - 2015
LO10.7.2: Construct the confidence
interval for population means and
difference of proportion and variance.
LO10.8.1: Calculate a sample size for an
interval estimate of a population mean
LO10.8.2: Calculate a sample size for
an interval estimate of a population
proportion.
12
AFC-4
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
INTRODUCTION TO INFORMATION TECHNOLOGY
Objective
To enable candidates to equip themselves with the fundamental skills and proficiency required to cope with
today’s highly challenging IT oriented business environment.
Learning Outcome
The candidates will be able to:
1
describe and classify different elements of a computer system
2
describe the basic operations in commonly used operating systems
3
demonstrate performance level knowledge in Microsoft Excel
4
demonstrate performance level knowledge in Microsoft Word
5
demonstrate performance level knowledge in Microsoft PowerPoint.
Grid
Weighting
Computer hardware and types of operating system
3-6
Microsoft Excel
18-22
Microsoft Word
12-18
Microsoft PowerPoint
8-12
Total
Syllabus
Ref
Contents
A
Computer hardware and operating
systems
Level
Learning Outcome
50
1
Central processing units (CPUs) –
processor, hard disk, random access
memory, read-only memory
1
LO1.1.1: Explain the role and importance
of basic components of a CPU.
2
Input devices – Key board, mouse, touch
pads, magnetic ink character reader,
optical mark reader, optical character
reader, barcode reader and electronic
point of sale.
1
LO1.2.1: State the uses/benefits and
limitations of common input devices.
3
Output devices – monitor, printer
1
LO1.3.1: State the differences between
CRT and LCD/LED monitors
LO1.3.2: Classify different types
of printers and state their relative
advantages and limitations.
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Syllabus
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Contents
Level
Learning Outcome
4
Operating systems – DOS, Windows, Linux
1
LO1.4.1: State key operating system
commands used for efficient
searches, formatting disks, viewing
IP configurations, testing network
connections and exploring the network.
5
Core Windows tasks – customize desktop
and start menus, work with files and
folders, log-on and log-off, search for
information, lock the computer, use a
screen-saver password, reset a password
1
LO1.5.1: State methods for customizing
desktop presentation and the start menu
LO1.5.2: Define techniques to work
efficiently with files and folders
LO1.5.3: State efficient ways to search
for required information from active and
archive files
LO1.5.4: State the important information
that could be recorded whilst a user is
logged-in
LO1.5.5: Define basic controls and
practices that should be adopted by
users for safeguarding data stored in
computers.
B
Microsoft Excel
1
Construction of formulae and application
of constructed and built-in functions and
formulae
2
LO2.1.1: Show clear understanding of
options in the menu bar like File, Home,
Insert, Page layout, Formulas, Data,
Review and View
LO2.1.2: Demonstrate how to construct
formulae using functions, cell references,
constants and operators
LO2.1.3: Demonstrate how to construct
nested formulae
LO2.1.4: Demonstrate adequate
command and ability to use the functions
like Sum, Sumif, Trunc, Subtotal, Round,
Floor, Ceiling, int, Mod, Abs, Average,
Count, CountA, Countif, Max, Min,
Median, Stdev.S,Percentile, Rank, IRR,
Rate, Effect, PV, NPV, SLN, Yield, PMT,
ACCRINT, ACCRINTM, COUPDAYS,
CUMPRINC, Vlookup, Hlookup, IF,
IFERROR, NOT, AND, OR, ISBLANK, ISERR,
ISERROR, ISLOGICAL, ISNA, ISNUMBER,
ISTEXT, ISNONTEXT, ISREF, Exact, Trim,
Left, Right, Len, Lower, Upper, Mid,
Proper, Text, Today, Now, Weekday and
Weeknum.
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Syllabus
Ref
2
Contents
Creating and modifying customized data
formats
Level
Learning Outcome
2
LO2.2.1: Show how to use multiple
worksheets, and navigate, select, rename,
insert, delete, move, copy and print
worksheets
LO2.2.2: Demonstrate how to move and
copy data between worksheets and sort,
filter, find, replace data and its formatting
as required
LO2.2.3: Use appropriate Excel features
to create customized data formats
LO2.2.4: Modify existing data formats to
enhance readability.
3
Using conditional formatting
2
LO2.3.1: Use the conditional formatting
feature to highlight exceptions
LO2.3.2: Demonstrate the use of
Conditional Formatting Rules Manager.
4
Protecting cells, worksheets and
workbook
2
LO2.4.1: Perform the steps to protect
certain cells, individual worksheets and
an entire workbook
LO2.4.2: Demonstrate the use of Digital
Signature.
5
Merging workbooks
2
LO2.5.1: Perform the steps to share a
workbook
LO2.5.2: Perform the steps to merge
multiple copies of a shared workbook.
6
Importing and exporting data to and from
Excel
2
LO2.6.1: Demonstrate ability to store data
directly in an Excel workbook or in an
external data source
LO2.6.2: Demonstrate basic
understanding of creating, editing,
refreshing and finding data connections
in Excel
LO2.6.3: Demonstrate adequate
command on importing data to Excel
from other applications and data sources
LO2.6.4: Demonstrate adequate
command on exporting data from Excel to
other applications and data sources.
SYLLABUS AUTUMN - 2015
15
Syllabus
Ref
7
Contents
Creating and editing charts and templates
Level
2
Learning Outcome
LO2.7.1: Show how to insert/create,
move and resize charts
LO2.7.2: Demonstrate command on
formatting and changing chart types
LO2.7.3: Demonstrate adequate
knowledge in creating and editing Excel
templates.
C
Microsoft Word 2010
1
Creating custom style for text, tables and
lists
2
LO3.1.1: Show clear understanding of
options in the menu bars like File, Home,
Insert, Page Layout, References, Mailings,
Review and View
LO3.1.2: Use various Word features
to present letters, reports and other
documents in a presentable custom style
LO3.1.3: Demonstrate adequate
command on using Mail Merge feature to
create letters, envelopes, directory etc.
2
Creating and modifying tables
2
LO3.2.1: Demonstrate command on
inserting/creating tables and making use
of pre-defined table style for improved
presentation
LO3.2.2: Demonstrate command on
editing tables and use of formatting tools
to improve readability of data in tables
LO3.2.3: Demonstrate the use of formulas
in tables
LO3.2.4: Use Word’s built-in features to
sort contents saved in tables.
3
Creating and modifying a table of
contents
2
LO3.3.1: Identify the basic formatting
requirements to insert a table of contents
LO3.3.2: Demonstrate performance level
knowledge to insert and modify a table of
contents.
4
Use of Review and Reference tab
commands
2
LO3.4.1: Demonstrate the ability to make
effective use of Track Changes command
LO3.4.2: Demonstrate performance
level knowledge to insert and modify
bibliography, endnotes, footnotes,
captions, comments & cross references.
SYLLABUS AUTUMN - 2015
16
Syllabus
Ref
Contents
D
Microsoft PowerPoint
1
Creating new presentations from
templates
Level
2
Learning Outcome
LO4.1.1: Select a template from
PowerPoint’s sample templates to
construct simple presentations
LO4.1.2: Demonstrate performance-level
knowledge of working with Slide Masters
and Layouts.
2
Inserting and editing text-based content
2
LO4.2.1: Perform inserting and editing of
text based content.
3
Inserting, and editing tables, charts,
diagrams, pictures, shapes, graphs and
objects
2
LO4.3.1: Demonstrate performancelevel knowledge of inserting and editing
tables, charts and other objects in the
presentation
LO4.3.2: Use appropriate PowerPoint
features to insert and edit pictures,
videos, charts/graphs and other objects in
the presentation.
4
Running and printing presentations
2
LO4.4.1: Demonstrate performance-level
knowledge whilst applying meaningful
slide transitions
LO4.4.2: Demonstrate performance-level
knowledge whilst setting up slide shows,
recording slide shows, starting slide show
from beginning or from current slide,
broadcasting slide show and creating
custom slide shows
LO4.4.3: Demonstrate performance-level
knowledge whilst printing Notes Pages,
Hand outs and Slides.
SYLLABUS AUTUMN - 2015
17
CAF-1
Certificate in Accoutning and Finance
INTRODUCTION TO ACCOUNTING
Objective
To enable candidates to equip themselves with the fundamental concepts of accounts needed as a
foundation for higher studies of accounting.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
understand the nature of accounting, elements of accounts and double entry rules
2
identify financial transactions and make journal entries
3
prepare general ledger accounts and a trial balance
4
make period end adjustments prior to the completion of financial statements
5
prepare basic financial statements
6
prepare partnership accounts and account for transactions of admission, retirement etc.
Grid
Weighting
Introduction to accounting and book keeping
35-40 Adjustments prior to completion of financial statements
15-25
Preparation of final accounts of sole traders
15-25
Accounting for partnerships
15-25
Total
Syllabus
Ref
Contents
A
Introduction to accounting and book
keeping
a
Introduction to accounting
1
Meaning of business
Level
1
100
Learning Outcome
LO1.1.1: Explain the characteristics of a
business
LO1.1.2: Classify transactions that
fall under the definition of business
transactions.
2
Mode of business organization (meaning)
- sole proprietorship; partnership; limited
company
1
LO1.2.1: Describe the key features of sole
proprietorship, partnership and limited
company
LO1.2.2: Differentiate amongst the
features of sole proprietorship,
partnership and limited company.
SYLLABUS AUTUMN - 2015
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Syllabus
Ref
3
Contents
Fundamental accounting concepts accrual, consistency, true and fair view,
materiality, prudence, completeness,
going concern, substance over form
Level
2
Learning Outcome
LO1.3.1: Explain the difference between
book-keeping and accounting
LO1.3.2: Describe and illustrate the main
accounting concepts, namely, accrual,
consistency, and completeness
LO1.3.3: Demonstrate familiarity with the
concepts of true and fair view, materiality,
prudence, going concern and substance
over form
LO1.3.4: Apply the concepts of accrual,
consistency and completeness to simple
and well explained circumstances.
4
Financial statements- components,
responsibility, presentation, users
1
LO1.4.1: List the components of a set of
financial statements
LO1.4.2: Explain the characteristics
and purpose of the statement of
financial position and the statement of
comprehensive income
LO1.4.3: Identify the responsibility to
prepare and present financial statements
LO1.4.4: Describe the basic presentation
layout of statements of financial position
and statements of comprehensive income
LO1.4.5: Identify users of financial
information and describe how the
information is useful to them.
b
Bookkeeping
1
Elements of financial statements
(meaning) - Assets, liabilities, equity,
income, expense
2
LO2.1.1: Define and give examples of
assets, liabilities, equity, income and
expenses
LO2.1.2: Apply the underlying concepts of
assets, liabilities, income and expenses in
simple and well explained circumstances.
2
Chart of accounts
1
LO2.2.1: Understand the meaning of a
chart of accounts
LO2.2.2: Explain the purpose of
establishing a chart of accounts
LO2.2.3: Construct a chart of accounts
using given data.
3
Double entry system, accounting
equation and rules of debit and credit
2
LO2.3.1: Understand and apply, the
accounting equation (Assets = Liabilities
+ Equity) in simple practical and common
scenarios
LO2.3.2: Identify financial and nonfinancial transactions in a well-defined
scenario
SYLLABUS AUTUMN - 2015
19
Syllabus
Ref
Contents
Level
Learning Outcome
LO2.3.3: Understand and apply the
concept of double entry accounting
to simple and common business
transactions.
4
General journal
2
LO2.4.1: List and describe the basic
contents of the general journal
LO2.4.2: Prepare and use the general
journal to record journal entries.
5
Sales journal and the sales ledger
2
LO2.5.1: Understand the use of business
documents as source of information
LO2.5.2: Describe the basic contents of
the sales day book and the customer/
debtors ledger
LO2.5.3: Record entries in the sales day
book and the customer/debtors ledger.
6
Purchase journal and the purchase ledger
2
LO2.6.1: Describe the basic contents
of the purchase journal and purchase
ledger/creditors ledger
LO2.6.2: Record entries in the purchase
journal and purchase ledger/creditors
ledger.
c
General ledger and trial balance
1
General ledger
2
LO3.1.1: Describe the main features of
the general ledger
LO3.1.2: Post entries in the general ledger
LO3.1.3: Balance the ledger accounts
as required, make transfers to the final
accounts.
2
Trial balance
2
LO3.2.1: Understand the purpose of the
trial balance
LO3.2.2: Understand and demonstrate
mapping between general ledger
balances and the trial balance
LO3.2.3: Identify the limitations of a trial
balance.
B
Adjustments before final accounts
1
Straight line, diminution balance, sumof-years-digit, number of units produced
methods and recording of depreciation
on fixed Assets
2
LO4.1.1: Explain nature of depreciation
expense and accumulated depreciation
LO4.1.2: Calculate depreciation expense
using straight line, diminution balance,
sum-of-digits and number of units
produced methods
LO4.1.3: Post journal entry to record
depreciation expense.
SYLLABUS AUTUMN - 2015
20
Syllabus
Ref
2
Contents
Allowance for bad debts and write off
Level
2
Learning Outcome
LO4.2.1: Estimate allowance for bad
debts based on a given policy
LO4.2.2: Post journal entry to record bad
debt expense
LO4.2.3: Compute and record write off
and understand its impact on allowance
for bad debts.
3
Prepayments and accruals
2
LO4.3.1: Understand the matching
concept that applies to prepayments and
accruals
LO4.3.2: Post journal entries and ledger
entries for prepayments and accruals
LO4.3.3: Post adjusting entries to
recognize revenues or expenses.
4
Closing entries of inventory
2
LO4.4.1: Understand the concepts of
periodic and perpetual inventory system
LO4.4.2: Identify the need to post the
adjustment entries of inventory at the
end of the period in case of periodic
inventory system
LO4.4.3: Pass the adjusting entries and
ledger entries at the end of the period.
5
Bank reconciliation and related
adjustments
2
LO4.5.1: Understand the need for a bank
reconciliation
LO4.5.2: Identify the main reasons for
differences between the cash book and
bank statements
LO4.5.3: Prepare a bank reconciliation
statement in the circumstances of simple
and well explained transactions
LO4.5.4: Correct cash book errors and
post journal entries after identifying the
same in bank reconciliation statement.
6
Control accounts - reconciliation and
adjustments
2
LO4.6.1: Understand the mapping
between control accounts and subsidiary
ledger for accounts receivable and
accounts payable
LO4.6.2: Prepare control accounts and
subsidiary ledger from well explained
information provided
LO4.6.3: Perform control accounts
reconciliation for accounts receivable and
accounts payable
LO4.6.4: Identify errors after performing
reconciliation
LO4.6.5: Identify and correct errors in
control account and subsidiary ledgers.
SYLLABUS AUTUMN - 2015
21
Syllabus
Ref
7
Contents
Correction of errors in record keeping
Level
Learning Outcome
2
LO4.7.1: Identify the types of error which
may occur in a record keeping system
LO4.7.2: Calculate and understand
the impact of errors on the financial
statements within a reporting period
LO4.7.3: Prepare journal entries to
correct errors that have occurred within a
reporting period.
C
Preparation of final accounts of a sole
trader
1
Statement of financial position
2
LO5.1.1: Explain the difference between a
trading and a service business
LO5.1.2: Understand the purpose of the
statement of financial position
LO5.1.3: Prepare simple statements
of financial position from information
provided.
2
Statement of comprehensive income
2
LO5.2.1: Understand the purpose of the
statement of comprehensive income
LO5.2.2: Prepare simple statements of
comprehensive income from information
provided.
3
Receipt and payment accounts
2
LO5.3.1: Understand the purpose of a
receipts and payments account
LO5.3.2: Prepare a simple receipts and
payments account from information
provided.
D
Accounting for partnerships
1
Preparation of partnership accounts
2
LO6.1.1: Define a partnership and state
its essential elements
LO6.1.2: Understand goodwill
LO6.1.3: Prepare
•
Capital account
•
Current account
LO6.1.4: Prepare a profit and loss account
and a statement of financial position of a
partnership.
2
Admission and amalgamation
SYLLABUS AUTUMN - 2015
2
LO6.2.1: Process the necessary
adjustments on the admission of a new
partner, namely:
•
Revaluation of assets and liabilities
of the firm
•
Treatment of goodwill
•
Application of new profit sharing
ratio
22
Syllabus
Ref
Contents
Level
Learning Outcome
LO6.2.2: Prepare the nominal accounts,
profit and loss account and statement of
financial position upon amalgamation of
two partnerships.
3
Retirement, death, dissolution,
liquidation
2
LO6.3.1: Make journal entries in the case
of the dissolution of a partnership to
record:
•
transfer and sale of assets and
liabilities to third parties and
partners
•
payment of realization expenses
•
closing of the realization account
and
•
settlement of partners’ capital
account. LO6.3.2: Process the necessary
adjustments on the death or retirement
of a partner:
SYLLABUS AUTUMN - 2015
•
adjustments relating to goodwill,
accumulated reserves and
undistributed profits
•
revaluation account
•
adjustment and treatment of
partners’ capital
•
application of new profit sharing
ratio
23
CAF-2
Certificate in Accoutning and Finance
INTRODUCTION TO ECONOMICS AND FINANCE
Objective
To enable candidates to equip themselves with the fundamental concepts of economics and finance needed
as foundation for higher studies of finance.
Learning Outcome
The candidate will be able to:
1
understand the nature of micro-economics and its basic concepts.
2
understand the nature of macro-economics and its relation with the measurement of economic
growth.
3
understand how the balance of payments of a country is worked out.
4
understand the nature of banking systems
5
understand the basic function of financial markets.
Grid
Weighting
Concepts of economics
5-10
Microeconomics
25-35
Macroeconomics
25-35
Introduction to banking system, financial markets and international trade
25-35
Total
Syllabus
Ref
A
Contents
Level
100
Learning Outcome
Concepts of economics
1
The economic problem - wants,
resources, scarcity
1
LO1.1.1: Understand the fundamental
nature of economics
LO1.1.2: Describe the scope and
objectives of economics
LO1.1.3: Describe, with examples, the
concept of economic problem and its
implications for an economy
LO1.1.4: Explain with examples the four
factors of production
LO1.1.5: Discuss the production
possibility curve and its relevance to the
concept of opportunity cost.
2
Economic systems - planned, market and
mixed economies
1
LO1.2.1: Describe the major functions of
an economic system
LO1.2.2: Explain the salient features of
planned, mixed and market economies
SYLLABUS AUTUMN - 2015
24
Syllabus
Ref
Contents
Level
Learning Outcome
LO1.2.3: Provide examples of ,mixed,
planned and market economies
LO1.2.4: Describe the shortfalls of a
market economy.
3
Islamic economic system
1
LO1.3.1: Describe the main features of
the Islamic economic system
LO1.3.2: Compare the Islamic economic
system with other economic systems.
B
Microeconomics
1
Microeconomics – nature
2
LO2.1.1: Define micro economics and
discuss its scope and limitations.
2
Demand and supply
2
LO2.2.1: Define law of demand and
explain its assumptions, limitations and
exceptions
LO2.2.2: Define law of supply and explain
its assumptions.
3
Equilibrium of demand and supply
2
LO2.3.1: Explain the determination of
price by equilibrium of demand and
supply
LO2.3.2: Explain the effect of changes in
demand and supply
LO2.3.3: Discuss the determination of
price of perishable and durable goods.
4
Elasticity of demand and supply
2
LO2.4.1: Describe the concept of elasticity
of demand and its practical application
LO2.4.2: Explain the determinants of the
elasticity of demand
LO2.4.3: Demonstrate the measurement
of price, income, point, arc and cross
elasticity of demand
LO2.4.4: Describe the concept of
elasticity of supply and explain the
percentage and graphical methods of
measurement of elasticity of supply
LO2.4.5: Describe the determinants of
supply elasticity.
5
Utility analysis and indifference curve
2
LO2.5.1: Explain the law of diminishing
marginal utility and discuss its
assumptions and limitations
LO2.5.2: Explain the law of equi-marginal
utility
LO2.5.3: Discuss the meaning and
characteristics of indifference curves
LO2.5.4: Explain consumers’ equilibrium
through indifference curve analysis.
SYLLABUS AUTUMN - 2015
25
Syllabus
Ref
6
Contents
Cost and revenue curves
Level
Learning Outcome
2
LO2.6.1: Discuss short run curves of total
cost, total fixed cost, total variable cost,
average cost and marginal cost
LO2.6.2: Derive a long run average cost
curve from a short run average cost curve
LO2.6.3: Derive a long run marginal cost
curve
LO2.6.4: Discuss revenue curves under
perfect and imperfect competition
LO2.6.5: Discuss the concept of
economies and diseconomies of scale.
7
8
Equilibrium of firm short and long term
under perfect competition, monopoly,
oligopoly and monopolistic conditions
2
Laws of increasing and diminishing
returns
2
LO2.7.1: State the features of perfect and
imperfect competition
LO2.7.2: Discuss the short and long run
equilibrium of firms under perfect and
imperfect competition.
LO2.8.1: Explain the law of increasing
returns and its application and
assumptions
LO2.8.2: Explain the law of diminishing
returns and its application and
assumptions.
C
Macroeconomics
1
Measurement of national income
including knowledge of basic concepts
like GDP, GNP, NNP;
2
LO3.1.1: Define macro- economics and
discuss its scope and limitations
LO3.1.2: Define gross national product,
gross domestic product and net national
product
LO3.1.3: Explain the product approach,
income approach and expenditure
approach to the measurement of national
income
LO3.1.4: Explain Circular flow of Income
LO3.1.5: State the difficulties usually
faced in measuring National Income.
2
Consumption, saving and investment
functions;
2
LO3.2.1: Understand the meaning
of consumption and saving and its
relationship with the income
LO3.2.2: Identify how Keynes’
Psychological law of consumption
explains the relationship between
consumption and income with the help
of average propensity to consume and
marginal propensity to consume curves
LO3.2.3: Understand the determinants of
the consumption function
SYLLABUS AUTUMN - 2015
26
Syllabus
Ref
Contents
Level
Learning Outcome
LO3.2.4: Understand the stability of
consumption and saving functions in the
short run and discuss the reasons thereof
LO3.2.5: Understand the meaning of
investment, induced investment and
autonomous investment
LO3.2.6: Explain the relationship of
investment with marginal efficiency of
capital and interest rate.
3
Marginal propensity to consume and save
2
LO3.3.1: Discuss the marginal propensity
to consume and save.
4
Multiplier and accelerator;
2
LO3.4.1: Comprehend the effect of the
multiplier on the level of national income
LO3.4.2: Understand the assumptions and
limitations of the multiplier concepts
LO3.4.3: Comprehend the principle of
acceleration of derived demand
LO3.4.4: Understand how the multiplier
and accelerator interact.
5
Money and its value
2
LO3.5.1: Understand the main functions
of money
LO3.5.2: Understand credit money and its
advantages and disadvantages
LO3.5.3: Understand sources of the
money supply
LO3.5.4: Understand the quantity theory
of money
LO3.5.5: Understand the measurement of
the value of money
LO3.5.6: Understand inflation, its kinds
and impacts
LO3.5.7: Understand the causes of
inflation and measures for overcoming
inflation
LO3.5.8: Understand the unemployment
and its types and Phillips Curve.
6
Growth and recession
2
LO3.6.1: Understand different phases of
the business cycle
LO3.6.2: Understand the indicators of
growth and recession.
7
Fiscal budget
2
LO3.7.1: Explain the fiscal policy and its
objectives and how they are achieved
through fiscal budgets
LO3.7.2: Discuss the limitations of fiscal
policy.
SYLLABUS AUTUMN - 2015
27
Syllabus
Ref
8
Contents
Direct and indirect taxation
Level
2
Learning Outcome
LO3.8.1: Define direct and indirect
taxation
LO3.8.2: Understand functions
of taxation, types of taxes and
characteristics of good tax policy
LO3.8.3: Explain the advantages and
disadvantages of direct taxation
LO3.8.4: Explain the advantages and
disadvantages of indirect Taxation.
D
Introduction to banking system, financial
markets and international trade
a
Banking system
1
Credit formation by banks
1
LO4.1.1: Explain the process of creation
of credit money by the banks
LO4.1.2: Discuss the limitations on the
creation of credit.
2
Role of Central Bank;
1
LO4.2.1: Describe the functions of a
central bank.
3
Monetary policy
1
LO4.3.1: Understand the meaning of
monetary policy
LO4.3.2: Understand the objectives of
monetary policy and the mutual conflict
of the objectives.
1
LO4.4.1: Define a bank and describe its
kinds.
Money market
1
LO5.1.1: Describe the main features and
objectives of money markets.
2
Capital markets.
1
LO5.2.1: Describe the main features and
objectives of capital markets.
3
Derivative market
1
LO5.3.1: Describe the main features and
objectives of derivatives and derivative
markets.
c
International trade
1
Balance of trade and payment
2
LO6.1.1: Discuss the concept of exchange
rate, its determination and government’s
policy to influence it
4
Types of banks and financial institution
b
Financial market-Meaning
1
LO6.1.2: Understand the nature of items
that are accounted for the concept of
balance of trade and payment
LO6.1.3: Understand the different parts of
balance of payment.
SYLLABUS AUTUMN - 2015
28
CAF-3
Certificate in Accoutning and Finance
BUSINESS LAW
Objective
To give students an understanding of the legal system and commercial laws; and build a knowledge base of
corporate laws.
Learning Outcome
The candidate will be able to demonstrate:
1
basic knowledge of the legal environment
2
comprehension of laws governing contracts, partnership and negotiable instruments
3
knowledge of the legal terminology of company law and the basics of company incorporation
4
familiarity with the provisions governing the issuance of shares
5
knowledge of the management of companies
6
familiarity with investment by companies, financial accounts and distribution of profit
7
knowledge of the appointment of auditors and their responsibilities and duties.
Grid
Weighting
Introduction to legal system
5-10
Mercantile law
Contract Act 1872
20-30
Partnership Act 1932
10-15
Negotiable Instrument Act 1881
10-15
50
Companies Ordinance 1984
Sections 1 to 51 of the Companies Ordinance, 1984
8-15
Sections 52 to 136 of the Companies Ordinance, 1984
8-15
Sections 142 to 204A of the Companies Ordinance, 1984
8-15
Sections 208 to 251 of the Companies Ordinance, 1984
8-15
Sections 252 to 257 of the Companies Ordinance, 1984
8-15
Total
SYLLABUS AUTUMN - 2015
50
29
Syllabus
Ref
A
Contents
Level
Learning Outcome
Introduction to the Legal System
Sources and process of legislation
1
Sources of law and an introduction to the
Constitution of Pakistan
1
LO1.1.1: Briefly describe sources of law
in Pakistan
LO1.1.2: Describe the basic structure of
the constitution of the Islamic Republic of
Pakistan.
2
Process of legislation and legal system in
Pakistan
1
LO1.2.1: Define legislation and describe
its forms
LO1.2.2: Briefly describe the process of
legislation as per the Constitution
LO1.2.3: Identify and briefly explain the
structure of the courts in Pakistan.
B
Mercantile law
a
Contract Act 1872
1
All sections
2
LO2.1.1: Discuss the provisions of the
act with respect to the following and
demonstrate comprehension in simple
scenario based problems:
• communication, acceptance and
revocation of proposals
• contracts, voidable contracts and void
agreements
• contingent contracts
• performance of contracts
• certain relations resembling those
created by contracts
• breach of contract/consequences
• indemnity and guarantee
• bailment and pledge
• contract of agency
b
Partnership Act 1932
1
Chapter I – Preliminary
2
LO2.2.1: Define the terms.
2
Chapter II - The nature of partnership
2
LO2.3.1: Understand and describe the
partnership relationship, its creation
and identify and explain the types of
partnership and the mode of determining
existence of a partnership.
3
Chapter III - Relations of partners to one
another
2
LO2.4.1: Determine and explain the rights
and duties of partners of the firm under
various circumstances
SYLLABUS AUTUMN - 2015
30
Syllabus
Ref
Contents
Level
Learning Outcome
LO2.4.2: Explain the provisions of the
law relating to conduct of the business,
property of the firm and personal profits
earned by partners.
4
Chapter IV - Relations of partners to third
parties
2
LO2.5.1: Describe the relationship of
partners with third parties
LO2.5.2: Identify and explain the
concepts of implied authority of the
partner in relation to third parties,
partner’s authority in an emergency,
mode of doing act to bind the firm,
effect of admissions by a partner, effect
of notice to acting partner, liability of a
partner for acts of the firm and liability of
the firm for wrongful acts of a partner or
misapplication by partners, principle of
holding out in given situations
LO2.5.3: Identify and explain the rights of
transferee of a partner’s interest and the
rights and liabilities of a minor admitted
to the benefits of partnership:
c
Negotiable Instruments Act 1881
1
Definitions and meanings (Section 1 to
25)
1
2
Discharge of liability (Section 82 to 90)
2
LO2.7.1: Identify and explain how the
maker of a negotiable instrument is
discharged from his liability under given
scenarios.
3
Provisions relating to cheques (Section
122A to 131C)
2
LO2.8.1: Describe provisions relating to
crossing of cheques
LO2.6.1: Define and explain terms
LO2.6.2: Explain provisions relating to
types of negotiable instruments and their
maturity.
LO2.8.2: Briefly describe and differentiate
between a cheque crossed generally
and a cheque crossed specially and their
payment modes.
C
Companies Ordinance 1984
a
Preliminary and incorporation (Sections
1 to 51)
1
Definitions (Section 2)
1
LO3.1.1: Define the terms which are
relevant to the areas covered in the
syllabus.
2
Meaning of «subsidiary» and «holding
company»
(Section 3)
2
LO3.2.1: Explain subsidiary and holding
company and when a company becomes
a subsidiary or holding company of
another company.
SYLLABUS AUTUMN - 2015
31
Syllabus
Ref
Contents
Level
Learning Outcome
LO3.2.2: Apply the concept of subsidiary
in simple scenarios.
3
Powers and functions of the Commission
(Section 12)
1
LO3.3.1: Demonstrate familiarity with the
powers and functions of the Commission.
4
Memorandum of association (Section 15
to 25)
2
LO3.4.1: Describe the memorandum of
association and state its purpose
LO3.4.2: List/explain the clauses of
memorandums of association of various
types of companies
LO3.4.3: Describe the purpose and
procedure of alteration to different
clauses of a memorandum of association.
5
Articles of association (Section 26)
2
LO3.5.1: Define the articles of association
and state its purpose
LO3.5.2: State the information which
should be contained in the articles of
various companies.
6
Registration of memorandum and articles
of association
(Section 30 to 36)
2
LO3.6.1: Describe the procedure of
registration of the memorandum and
articles of association
LO3.6.2: Describe the effects of
registration of the memorandum and
articles of association.
7
Provisions with respect to names of
companies (Section 37 to 41)
2
LO3.7.1: Describe with examples the
procedure / prohibitions with regard to
the selection of the name of a company
LO3.7.2: Identify/explain the actions
and procedures needed to be taken by
company and registrar, if a company is
registered by a prohibited name.
8
Association not for profit (Section 42)
1
LO3.8.1: Comprehend the nature of
association not for profit.
9
Companies limited by guarantee (Section
43)
1
LO3.9.1: Understand the provisions
regarding divisible profit and dividing the
undertaking into shares or interest.
b
Allotment of shares, registration of
charge etc. (Sections 52 to 136)
1
Prospectus, allotment, issue and transfer
of shares and debentures, deposits, etc.
(Section 52 to 57)
1
LO4.1.1: Define a prospectus and explain
its purpose
SYLLABUS AUTUMN - 2015
LO4.1.2: Understand the requirements
relating to a prospectus as laid down in
Section 52, 53 (1), (5) and (8)
32
Syllabus
Ref
Contents
Level
Learning Outcome
LO4.1.3 Describe the matters that are to
be specified in a prospectus as required
under clause 1 to 7 and 17, 18 19, 24, 26
and 27 of Section 1 of Part I of Second
Schedule
LO4.1.4: Describe the reports that are to
be included in a prospectus as required
under Section 2 of Part I of Second
Schedule
LO4.1.5: Understand/explain the
provisions regarding statement and
consent of expert.
2
Share capital and debentures
(Section 89 to 95 and 108)
1
LO4.2.1: Describe the nature of shares
and share certificates
LO4.2.2: Describe the classes and kinds of
shares
LO4.2.3: Describe with simple example
the condition of fully paid shares
LO4.2.4: State with simple examples the
kinds of alterations that can be made to
the share capital.
LO4.2.5: State the rules on prohibition
of purchase of a company’s own or its
holding company’s shares
LO4.2.6: Understand the meaning of
variation of shareholders’ rights
LO4.2.7: Demonstrate familiarity with the
procedure for cancellation of variation of
shareholders’ rights.
3
Registration of mortgages, charges etc.
(Section 121, 129, 132 and 136)
1
LO4.3.1: Discuss the meaning of
mortgage/charge with simple examples,
and the duty of company and the
procedure for registration of charges
LO4.3.2: State the right of an interested
party in respect of a registration of
mortgage/charge
LO4.3.3: State the duty and procedure
of payment or satisfaction of mortgage/
charge
LO4.3.4: Demonstrate familiarity with the
right to inspect the instrument creating a
mortgage/charge
LO4.3.5: Discuss the consequences of
registered and unregistered mortgages/
charges.
SYLLABUS AUTUMN - 2015
33
Syllabus
Ref
Contents
Level
Learning Outcome
c
Management and administration
(Sections 142 to 204A)
1
Registered office, publication of names
etc. (Section 142 to 145)
2
LO5.1.1: Discuss with simple examples
the provisions with regard to having a
registered office, publication of name and
publication of paid-up capital.
2
Commencement of business by a public
company (Section 146)
1
LO5.2.1: State the conditions to be
fulfilled before commencement of
business by a company
LO5.2.2: State the applicability and nonapplicability of the conditions on different
kinds of company.
3
Meeting and proceedings (Section 157 to
173)
1
LO5.3.1: State the timing, matters and
reports relating to statutory meetings
LO5.3.2: State the timing, matters and
reports relating to an annual general
meeting using simple examples
LO5.3.3: State who can call an annual
general meeting
LO5.3.4: State the timing, matters and
reports relating to an extraordinary
general meeting
LO5.3.5: State who can call an
extraordinary general meeting
LO5.3.6: State the quorum for a general
meeting
LO5.3.7: State the entitlement of a
member in respect of appointment of
proxy and conditions applicable thereon
LO5.3.8: Describe the provisions relating
to Agenda/ minutes of meetings.
4
Directors
(Section 174 to 197A)
1
LO5.4.1: Explain and apply in given
scenarios, the legal provision with respect
to directors’:
• Eligibility/Ineligibility
• Number
• Elections
• Removal/Vacation of office
• Remuneration
• Powers, duties, rights and liabilities
• Assignment of office
• proceedings
SYLLABUS AUTUMN - 2015
34
Syllabus
Ref
Contents
Level
Learning Outcome
LO5.4.2: State the legal provisions relating
to loans to directors.
5
Chief executive
(Section 198 to 204A)
1
LO5.5.1: Explain the appointment of first
chief executive and subsequent chief
executives using simple examples
LO5.5.2: State the provisions/ conditions
applicable on appointment, removal,
engagement in any business
LO5.5.3: State the provisions relating to
appointment of a secretary.
d
Investments, accounts etc. (Sections 208
to 251)
1
Investment in associated companies and
undertakings (Section 208)
2
LO6.1.1: Describe the conditions
applicable to a company for making
investment in associated companies and
undertakings.
2
Investment of companies to be held in its
own name (Section 209)
1
LO6.2.1: Discuss with simple examples
as to how a company can hold its
investment in names other than its own
name.
3
Disclosure of interest by directors
(Section 214)
1
LO6.3.1: Explain the requirements of
disclosure of interest by director in
contract / arrangement entered into by or
on behalf of the company.
4
Interest of other officers etc. (Section
215)
1
LO6.4.1: Explain the requirements of
disclosure of interest by officers in
contract / arrangement entered into by or
on behalf of the company.
5
Interested director not to participate or
vote in proceedings of directors (Section
216)
1
LO6.5.1: Describe the provisions relating
to participation of interested director in
the proceedings of directors in contract /
arrangement entered into by or on behalf
of the company.
6
Accounts (Section 230, 233, 236, 241 and
242 )
1
LO6.6.1: Describe the provisions relating
to / List the books of accounts to be kept
by company
LO6.6.2: Explain the requirements with
respect to the annual accounts and the
balance sheet
LO6.6.3: Describe directors’ report
LO6.6.4: Describe the authentication of
balance sheet and profit and loss account
LO6.6.5: Discuss requirements of filing
of balance sheets and profit and loss
accounts with the registrar.
SYLLABUS AUTUMN - 2015
35
Syllabus
Ref
7
Contents
Dividend (Section 248 to 251)
Level
1
Learning Outcome
LO6.7.1: Explain the requirements
relating to declaration of dividend and
identify/explain certain restrictions on
declaration of dividend
LO6.7.2: Describe the provisions
applicable to payment of dividend.
e
Audit (Sections 252 to 257)
1
Audit (Section 252 to 257)
2
LO7.1.1: Explain the provisions applicable
to
• Appointment, removal and
remuneration of auditors
• Qualification and disqualification of
auditors
• Powers/ duties of auditors and an
auditor’s right to access the record
and information
• An auditor’s duty to report and
contents thereof
• Signature on an audit report
SYLLABUS AUTUMN - 2015
36
CAF-4
Certificate in Accoutning and Finance
BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES
Objective
To equip candidates with the fundamentals of management and behavioral studies.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
demonstrate an understanding of the nature of management concepts and approaches
2
show familiarity with the structure of business organizations, their culture and the change process
3
demonstrate an understanding of human behavior
4
demonstrate an understanding of the concepts of motivation
5
show familiarity with the nature and kinds of leadership
6
show familiarity with the nature and importance of negotiation and conflict resolution
7
demonstrate a basic understanding of IT based management information systems.
Grid
Weighting
Management concepts
20-30
Organizational process
18-22
Individual behavior and motivation
18-22
Leadership, negotiation and conflicts
18-22
Management information system
12-18
Total
Syllabus
Ref
A
Contents
100
Level
Learning Outcome
2
LO1.1.1: Define the terms leadership and
management their nature and purpose
Management concepts
1
Meaning
LO1.1.2: State the difference between
Managers and Leaders using examples
LO1.1.3: Describe the classification of
management rolls enunciated by Henry
Mintzberg.
2
Functions
2
LO1.2.1: Illustrate management
model and explain the functions of
management
LO1.2.2: Describe the roles and skills of
management.
3
Classical approach
SYLLABUS AUTUMN - 2015
2
LO1.3.1: Describe the principles of
Scientific management stated by
Fredrick Taylor
37
Syllabus
Ref
Contents
Level
Learning Outcome
LO1.3.2: Explain the key principles of
management by Fayol and Urwick
LO1.3.3: Explain theories of
management by Weber, Rosemary
Stewart and Elton Mayo
LO1.3.4: Discuss the criticism on
scientific management and classical
approach to management
LO1.3.5: List the characteristics of
bureaucratic organizations and discuss
criticism on this form of management
LO1.3.6: Discuss theories of
management presented by Peter
Drucker, Moss Kanter and Mintzberg.
4
Behavioral approach
2
LO1.4.1: Discuss the Hawthorne
experiments on human relation
approach, their significance and
implications
LO1.4.2: Discuss critically the relevance
of these experiments for management
and organizational behaviour
LO1.4.3: Discuss Theory X, Theory Y and
Theory Z including their implications
and differences.
5
Management science approach
2
LO1.5.1: Explain the effects of operations
research in business sciences
LO1.5.2: Discuss management
skills involving time and stress
management, innovations and creativity,
communications, mentoring and
leadership.
6
External factors – Competitors, suppliers,
labour, customers
2
LO1.6.1: Describe the direct and indirect
interactive forces including political
,legal health and safety and consumer
protection forces may affect the
organizational environment.
7
General environment - Political, legal,
technological, economic, social
2
LO1.7.1: Explain how the external forces
affect the organizational environment
using examples
LO1.7.2: Explain how social,
demographic, ecological and
competitive factors would impact
business environment.
B
Organizational process 1
Organizational structure - principles of
organization, different ways of structuring
organization
SYLLABUS AUTUMN - 2015
2
LO2.1.1: Explain the meaning and nature
of organizational structure
LO2.1.2: Describe the different types of
organisations and their distinguishing
features
38
Syllabus
Ref
Contents
Level
Learning Outcome
LO2.1.3: Identify the different
stakeholders who have interests in
business firms
LO2.1.4: Explain the importance of a
good structure and consequences of a
deficient structure.
LO2.1.5: Describe the features of
matrix functional, divisional and virtual
organisations and their salient features
LO2.1.6: Describe how the elements
of organizational structure can be
combined to create mechanistic and
organic structures
LO2.1.7: Describe the advantages and
disadvantages of mechanistic and
organic structure of organization.
2
Organizational change - nature of change
process, resistance to change
2
LO2.2.1: Identify and explain the
external forces creating changes in the
performances of organizations
LO2.2.2: Describe the process of
organizational change
LO2.2.3: Explain the forms of reactions
to change.
3
Organizational culture - concept,
dysfunctional aspect of culture
2
LO2.3.1: Describe organizational culture
using examples
LO2.3.2: Discuss using examples the
different levels of organizational culture
LO2.3.3: Descibe the types of cultures
and their efficacies in the context of
performances of organisations.
C
Individual behavior and motivation
1
Perception
2
LO3.1.1: Explain perception and
perception process and their effects
LO3.1.2: Discuss using examples the
difference between sensation and
perception
LO3.1.3: Discuss using examples the
internal and external factors that affect
perceptual selectivity
LO3.1.4: Describe the characteristics of
Perceiver and Perceived
LO3.1.5: Analyse the perceptual
problems/distortions in dealing with
other people like stereotyping and halo
effect, etc.
2
Attitude
SYLLABUS AUTUMN - 2015
2
LO 3.2.1: Define attitude and its
components with reference to
organizational cultures
39
Syllabus
Ref
Contents
Level
Learning Outcome
LO3.2.2: Discuss the differences
between cognitively based attitudes and
affectively based attitudes
LO3.2.3: Describe the difference
between implicit and explicit attitudes
LO3.2.4: Discuss cross-cultural
differences in the bases for attitudes
LO3.2.5: Explain the relationship
between attitude and behaviour.
3
Job satisfaction and stress
2
LO3.3.1: Explain by offering examples
meaning and outcomes of job
satisfaction
LO3.3.2: Identify the measures to
enhance satisfaction
LO3.3.3: Describe stress and identify the
causes of job stress
LO3.3.4: Explain using examples the
general categories of stressors that can
affect performance
LO3.3.5: Identify consequences of stress
and strategies in order to cope up with
stress.
4
Maslow need hierarchy Model
2
LO3.4.1: Describe using examples
motivation
LO3.4.2: Explain Maslow’s need
hierarchy theory
LO3.4.3: Explain strengths and problems
in the application of Maslow’s theory.
5
Herzberg’s two-factor Theory
2
LO3.5.1: Explain Herzberg’s two factor
theory of motivation and major criticism
thereon.
6
McClelland’s theory of needs
2
LO3.6.1: Explain the three motivational
needs theory presented by McClelland
LO3.6.2: State the difference between
intrinsic and extrinsic motives.
7
Goal setting
2
LO3.7.1: Explain the major dimensions
of goal setting theory
LO3.7.2: Explain why and how goals
contribute to self-motivation
LO3.7.3: Describe how to set effective
goals and the problems encountered in
setting goals.
8
Management by objective
SYLLABUS AUTUMN - 2015
2
LO3.8.1: Explain the basic steps of the
overall performance system of MBO.
40
Syllabus
Ref
9
Contents
Self-efficacy
Level
2
Learning Outcome
LO3.9.1: Define the term self-efficacy
LO3.9.2: Demonstrate understanding
of the concepts of high self-efficacy and
low self-efficacy.
10
Reinforcement
2
LO3.10.1: Describe law of effect using
relevant examples
LO3.10.2: Describe the concept of
reinforcement as used in behavioural
management
LO3.10.3: Describe positive and negative
reinforcers using examples.
D
11
Equity/organizational justice
2
LO3.11.1: Explain organizational justice
and three components of the same,
namely, distributive, procedural and
interactional.
12
Expectancy
2
LO3.12.1: Describe using simple
examples Vroom’s Expectancy theory
and its three elements, namely,
expectancy, instrumentality and
valence.
Leadership, negotiation and conflicts
1
Type of leadership
2
LO4.1.1: Discuss different leadership
styles, namely, free-rein, engaging,
participative, task oriented and
autocratic.
2
Theories of leadership
2
LO4.2.1: Discuss using simple examples
different theories of leadership, namely,
trait theories, Blake and Mouton theory,
situational and contingency theories
LO4.2.2: Discuss Tannenbaum and
Schmidt’s continuum model of
leadership styles
LO4.2.3: Discuss the various Contigency
theories of leadership
LO4.2.4: Describe the principles and the
need for adaptive change.
3
Roles, activities, skills of leaders
2
LO4.3.1: Discuss leadership roles and
activities
LO4.3.2: Identify Skills needed for
effective leadership.
4
Group Dynamics and teamwork - types of
groups, group formation, group structure,
individual in groups, team work
2
LO4.4.1: Explain the differences
between groups and teams
LO4.4.2: Discuss individual and group
behavior at work Discuss formal and
informal group behavior in work settings
LO4.4.3: Explain and illustrate balance
theory of group formation
SYLLABUS AUTUMN - 2015
41
Syllabus
Ref
Contents
Level
Learning Outcome
LO4.4.4: Describe the concept and stages
of team formation, team roles and
performances of effective and ineffective
teams
LO4.4.5: Identify and describe stages of
group development
LO4.4.6: List down the factors
that increase and decrease group
cohesiveness
LO4.4.7: Explain the ways to make
teams more effective.
5
Negotiation skills
2
LO4.5.1: Explain various stages of the
negotiation process
LO4.5.2: Describe the different skills of
effective negotiators
LO4.5.3: Describe the roles of mediators,
arbitrators, concillators and consultants
LO4.5.4: Explain the low risk techniques
of negotiation
LO4.5.5: Explain the high risk
techniques of negotiation.
6
Conflict resolution
2
LO4.6.1: Discuss the conflict resolution
process
LO4.6.2: Discuss conflicts at the
individual and inter-group levels
LO4.6.3: Discuss the advantages
and disadvantages of conflicts in
organisations
LO4.6.4: Explain intra-individual conflict
with model of frustration
LO4.6.5: List some of the physical,
psychological and behavioural problems
that occur due to conflict.
E
Management information systems
1
General system concepts of information
technology
1
LO5.1.1: Demonstrate basic
understanding of computer hardware
i.e. input, output, storage of information
and networking
LO5.1.2: Understand the concepts of
information technology and information
systems
LO5.1.3: Understand the role and types
of information systems in business.
2
IT-based transaction processing systems
SYLLABUS AUTUMN - 2015
1
LO5.2.1: Understand data entry, batch
processing, online processing and real
time -online processing.
42
Syllabus
Ref
Contents
Level
Learning Outcome
3
IT-based financial reporting systems
1
LO5.3.1: Understand IT based financial
reporting system.
4
IT-based order processing and inventory
control systems
1
LO5.4.1: Understand IT based order
processing and inventory control systems.
5
IT-based personnel systems
1
LO5.5.1: Understand IT based personnel
systems.
6
Integrated IT systems
1
LO5.6.1: Briefly describe integrated
systems, their advantages and
disadvantages
LO5.6.2: Understand main features of
Enterprise Resource Planning.
SYLLABUS AUTUMN - 2015
43
CAF-5
CERTIFICATE IN ACCOUNTING AND FINANCE
FINANCIAL ACCOUNTING AND REPORTING I
Objective
To provide candidates with an understanding of the fundamentals of accounting theory and basic financial
accounting with particular reference to international pronouncements.
Learning Outcomes
On the successful completion of this paper candidates will be able to:
1
prepare financial statements in accordance with specified international pronouncements
2
account for simple transactions related to inventories and property, plant and equipment in
accordance with international pronouncements
3
understand the nature of revenue and be able to account for the same in accordance with
international pronouncements
4
prepare financial statements in accordance with specified international pronouncements
5
understand the fundamentals of accounting for cost of production.
Grid
Weighting
Preparation of components of financial statements
18-22
Income and expenditure account and preparation of accounts from incomplete records
15-20
Accounting for inventories; and property, plant and equipment
25-35
Revenue accounting
12-18
Branch accounts
8-12
Introduction to cost of production
8-12
Total
Syllabus
Ref
Contents
A
Preparation of components of financial
statements with adjustments included in
the syllabus
Level
100
Learning Outcomes
1
Preparation of statement of financial
position (IAS 1)
1
LO1.1.1: Prepare simple statement of
financial position in accordance with
the guidance in IAS 1 from data and
information provided.
2
Preparation of statement of
comprehensive income (IAS 1)
1
LO1.2.1: Prepare simple statement of
comprehensive income in accordance
with the guidance in IAS 1 from data and
information provided.
3
Preparation of statement of cash flows
(IAS 7)
1
LO 1.3.1: Demonstrate thorough
understanding of cash and cash
equivalents, operating, investing and
financing activites
SYLLABUS AUTUMN - 2015
44
Syllabus
Ref
Contents
Level
Learning Outcomes
LO 1.3.2: Calculate changes in working
capital to be included in the operating
activites
LO1.3.3: Compute items which are
presented on the statement of cash flows
LO1.3.4: Prepare a statement of cash
flows of an entity in accordance with
IAS 7 using the direct and the indirect
method.
4
Income and expenditure account
2
LO1.4.1: Prepare simple income and
expenditure account using data and
information provided.
5
Preparation of accounts from incomplete
records
2
LO1.5.1: Understand situations that might
necessitate the preparation of accounts
from incomplete records (stock or assets
destroyed, cash misappropriation or lost,
accounting record, destroyed etc.)
LO1.5.2: Understand and apply the
following techniques used in incomplete
record situations:
B
•
Use of the accounting equation
•
Use of opening and closing balances
of ledger accounts
•
Use of a cash and / or bank
summary
•
Use of markup on cost and gross and
net profit percentage
Accounting for inventories (IAS 2); and
property, plant and equipment (IAS-16)
1
Application of cost formulas (FIFO/
weighted average cost) on perpetual and
periodic inventory system
2
LO2.1.1: Understand and analyze the
difference between perpetual and
periodic inventory systems
LO2.1.2: Understand and analyze the
difference between FIFO and weighted
average cost formulas and use them to
estimate the cost of inventory
LO2.1.3: Account for the application of
cost formulas ( FIFO/ weighted average
cost) on perpetual and periodic inventory
system
LO2.1.4: Identify the impact of inventory
valuation methods on profit.
2
Cost of inventories (cost of purchase, cost
of conversions, other costs)
2
LO2.2.1: Calculate cost of inventory
in accordance with IAS-2 using data
provided including cost of purchase, cost
of conversions, and other costs
LO2.2.2: Identify relevant and irrelevant
cost from data provided.
SYLLABUS AUTUMN - 2015
45
Syllabus
Ref
3
Contents
Measurement of inventories (lower of
cost or net realizable value)
Level
2
Learning Outcomes
LO2.3.1: Describe net realizable value
(NRV)
LO2.3.2: Explain the situation when
the cost of inventories may not be
recoverable
LO2.3.3: Demonstrate the steps in
measuring inventory at lower of cost or
NRV
LO2.3.4: Post journal entries for
adjustments in carrying value (excluding
reversal of write downs).
4
Presentation of inventories in financial
statements
2
LO2.4.1: Understand the disclosure
requirements and prepare extracts of
necessary disclosures (excluding pledged
inventories and reversal of write downs).
5
Initial and subsequent measurement
of property, plant & equipment
(components of cost, exchange of assets)
1
LO2.5.1: Calculate the cost on initial
recognition of property, plant and
equipment in accordance with IAS-16
including different elements of cost and
the measurement of cost
LO2.5.2: Analyse subsequent expenditure
that may be capitalised, distinguishing
between capital and revenue items.
6
Measurement after recognition of
property, plant and equipment
2
LO2.6.1: Present property, plant and
equipment after recognition under cost
model and revaluation model using data
and information provided.
7
Depreciation - depreciable amount,
depreciation period and depreciation
method
2
LO2.7.1: Define depreciation, depreciable
amount and depreciation period
LO2.7.2: Calculate depreciation according
to the following methods
•
straight-line,
•
diminishing balance
•
the units of production
LO2.7.3: Compute depreciation for assets
carried under the cost and revaluation
models using information provided
including impairment
LO2.7.4: Prepare journal entries and
ledger accounts.
8
De-recognition
2
LO2.8.1: Account for de-recognition of
property, plant and equipment recognized
earlier under cost and revaluation
methods
LO2.8.2: Post journal entries to account
for de-recognition using data provided.
SYLLABUS AUTUMN - 2015
46
Syllabus
Ref
Contents
C
Revenue accounting
1
Revenue (IAS-18)
Level
2
Learning Outcomes
LO3.1.1: Describe revenue
LO3.1.2: Apply the principle of substance
over form to the recognition of revenue
LO3.1.3: Describe and demonstrate the
accounting treatment (measurement and
recognition) for revenue arising from the
following transactions and events:
•
sale of goods;
•
rendering of services
use by others of entity assets yielding
interest, royalties and dividends.
D
Branch accounts
1
Branch accounts (excluding foreign
branches)
2
LO4.1.1: Describe the special features of
branch accounting including differences
to routine accounting
LO4.1.2: Understand and apply the
treatment of branch inventory, branch
mark-up, goods sent to branch and
branch debtors; in the books of head
office
LO4.1.3: Prepare trading/income
statement of branch.
E
Introduction to cost of production
1
Meaning and scope of cost accounting
2
LO5.1.1: Explain the scope of cost
accounting and managerial accounting
and compare them with financial
accounting.
2
Analysis of fixed, variable and semi
variable expenses
2
LO5.2.1: Explain using examples the
nature and behaviour of costs
LO5.2.2: Identify and apply the concept of
fixed, variable, and semi variable costs in
given scenarios.
3
Direct and indirect cost
2
LO5.3.1: Identify and apply the concept of
direct and indirect cost in given scenarios.
4
Cost estimation using high-low points
method and linear regression analysis
2
LO5.4.1: Apply high-low points’ method
in cost estimation techniques
LO5.4.2: Apply regression analysis for cost
estimation.
5
Product cost and period cost
SYLLABUS AUTUMN - 2015
2
LO5.5.1: Compare and comment product
cost and period cost in given scenarios.
47
CAF-6
CERTIFICATE IN ACCOUNTING AND FINANCE
Principles of Taxation
Objective
To provide basic knowledge in the understanding of objectives of taxation and core areas of Income Tax
Ordinance, 2001, Income Tax Rules 2002 and Sales Tax Act 1990 and Sales Tax Rules.
Learning Outcome
The candidate will be able to:
1
understand the objective of levy of taxation, and its basic concepts
2
understand the system of taxation in pakistan
3
understand the historical background of taxation in pakistan
4
understand constitutional provisions of taxation in pakistan
5
understand and explain the basic ethics of taxation
6
understand and explain provisions of income tax law mainly relevant to individuals and association
of persons
7
understand and explain sales tax law relevant to operational level tasks.
Grid
Weighting
Objective, system and historical background, constitutional provisions and ethics
8-12
Income tax
60-70
Sales tax
20-30
Total
Syllabus
Ref
A
Contents
Level
100
Learning Outcome
Objective, system and historical background,
constitutional provisions and ethics
a
Basic concepts of taxation
1
Objectives
1
LO1.1.1: Comprehend the main
objectives of taxation
LO1.1.2: Justify Taxation as means of
development.
2
Basic concepts
1
LO1.2.1: Understands the implication of
direct and indirect taxation.
3
System of taxation in Pakistan
(Income Tax, Sales Tax, Federal Excise Tax,
Capital Value Tax, Customs)
1
LO1.3.1: Comprehend different kinds of
taxes and their scope.
4
Historical background
1
LO1.4.1: State the history of taxation in
the sub-continent.
SYLLABUS AUTUMN - 2015
48
Syllabus
Ref
Contents
b
Constitutional provisions
1
Federal financial procedures
(Article 78 to 88 of the Constitution of
Pakistan)
Level
Learning Outcome
1
LO2.1.1: Demonstrate familiarity with
the Federal Consolidated Fund and Public
Account
LO2.1.2: Demonstrate familiarity with the
expenditure that can be charged upon
Federal Consolidated Fund.
2
Provincial financial procedures
(Article 118 to 127 of the Constitution of
Pakistan)
1
LO2.2.1: Demonstrate familiarity with the
Provincial Consolidated Fund and Public
Account
LO2.2.2: Demonstrate familiarity with the
expenditure that can be charged upon
Provincial Consolidated Fund.
3
Distribution of revenues between
Federation and the Provinces
(Article 160 to 165A of the Constitution of
Pakistan)
1
LO2.3.1: Demonstrate familiarity with
the formation of National Finance
Commission and its main function
LO2.3.2: Demonstrate familiarity with
the taxes that can be raised under the
authority of Parliament
LO2.3.3: Demonstrate familiarity with the
powers of provincial assemblies in respect
of professional tax
LO2.3.4: Demonstrate familiarity with
the exemption available to federal and
provincial governments
LO2.3.5: Demonstrate familiarity with the
tax on corporation owned by federal and
provincial government.
4
Federal legislative lists relating to revenue
generating measures
(related part of Fourth Schedule to the
Constitution of Pakistan)
1
LO2.4.1: Enlist the revenue collection as
mentioned at S. No. 43 to 53 in Fourth
Schedule attached to the Constitution
c
Ethics
1
Ethics for tax legislation
2
LO3.1.1: Describe how canons of taxation
developed by economists are relevant for
legislators while formulating tax policies.
2
Ethics for taxpayers
2
LO3.2.1: Understand the right and
purpose of state to tax its citizen
LO3.2.2: Understand morality behind
compliance with tax laws.
3
Ethics for tax implementing authorities
2
LO3.3.1: Understand the powers
Vs ethical responsibilities of tax
implementation authorities
LO3.3.2: Understand pillars of tax
administration, namely, fairness,
transparency, equity and accountability.
SYLLABUS AUTUMN - 2015
49
Syllabus
Ref
4
B
Contents
Tax evasion and avoidance
Level
Learning Outcome
2
LO3.4.1: Explain with simple examples
the basic difference between evasion and
avoidance of tax.
1
LO4.1.1: Describe the definitions given in
section 2 sub-section 1, 5, 5A, 6, 7, 9, 10,
11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C,
36, 37, 38, 41, 44A, 46, 47, 49, 50, 51, 52,
53, 68
Income Tax
1
Chapter I – Preliminary (concepts of
terms defined section 2 sub-section 1, 5,
5A, 6, 7, 9, 10, 11A, 19, 19C, 20, 21, 22,
23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46,
47, 49, 50, 51, 52, 53, 68)
LO4.1.2: Describe other definitions
covered under relevant sections
LO4.1.3: Apply definitions on simple
scenarios.
2
Chapter II – Charge of tax (excluding
section 7)
2
LO4.2.1: Explain the chargeability of tax
with simple examples.
3
Chapter III – Tax on Taxable income
(Excluding Section 29A, 30 and 31)
2
LO4.3.1: Compute taxable income and tax
thereon relating to salary, income from
property, income from business, capital
gain, dividend, profit on debt, ground
rent, rent from sub-lease, income from
provision of amenities, utilities or any
other services connected with rented
building and consideration for vacating
the possession of building.
4
Chapter IV – (Part I, II and III) – Common
rules (Excluding Sections 78 and 79)
1
LO4.4.1: Understand and apply on simple
scenarios provisions for income of joint
owner, apportionment of deductions, fair
market value and receipt of income
LO4.4.2: Explain using simple examples
the provisions relating to tax year
LO4.4.3: Explain with simple examples
the provisions relating to disposal
and acquisition of assets, cost and
consideration received.
5
Chapter V Part I – Central concepts
2
LO4.5.1: Describe with simple examples
the meaning of persons, resident and
non-resident persons and associates.
6
Chapter V Part II Div I and II – Individuals
(Excluding Section 88A)
2
LO4.6.1: Describe with simple examples
the principles of taxation of individuals.
7
Chapter V Part III – Association of persons
2
LO4.7.1: Describe with simple examples
the principles of taxation of association of
persons.
SYLLABUS AUTUMN - 2015
50
Syllabus
Ref
Contents
Level
Learning Outcome
8
Chapter VII Part II – Taxation of foreignsource income of residents
2
LO4.8.1: Understand the applicability
of tax on foreign salary income, credit
against foreign tax and treatment of
foreign loss of a resident on simple
scenarios.
9
Chapter X Part I – Returns
2
LO4.9.1: Identify persons required to
furnish a return of income
LO4.9.2: Identify persons not required to
furnish a return of income
LO4.9.3: Identify persons required to
furnish wealth statements
LO4.9.4: List the contents of wealth
statement.
10
Chapter X Part II – Assessments
1
LO4.10.1: Understand the meaning of
assessment by Commissioner and power
of Commissioner to conduct audit.
11
Chapter X Part III – Appeals
1
LO4.11.1: List the appellate bodies
LO4.11.2: Explain using simple examples
the circumstances when appeal to the
Commissioner (Appeals) is made and the
pre-conditions applicable
LO4.11.3: Explain the provisions relating
to decision of appeals by Commissioner
(Appeals) using simple examples.
12
Chapter X Part VIII – Records, Information
Collection and Audit (Section174 and 177)
2
LO4.12.1: Understand the provisions
relating to records to be kept by the
taxpayers
LO4.12.2: Describe the provisions relating
to audit by Commissioner.
C
13
The Income Tax Rules related to the
above chapters of the Income Tax
Ordinance 2001 shall also be examined
1
LO4.13.1: Apply rules relevant to learning
outcomes specified against each topic on
well explained scenarios.
14
First and Second Schedule attached to the
Income Tax Ordinance 2001
2
LO4.14.1: Apply clauses relevant to
learning outcomes specified against each
topic on well explained scenario.
2
LO5.1.1: Describe the definitions given
in section 2 sub-section 3, 5AA, 9, 11, 14,
16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33,
35, 39, 40, 41, 43, 44, 46
Sales Tax
a
Sales Tax Act 1990
1
Chapter I – Preliminary (concepts of
terms defined Section 2 sub-sections 3,
5AA, 9, 11, 14, 16, 17, 20, 21, 22A, 25, 27,
28, 29A, 33, 35, 39, 40, 41, 43, 44, 46)
LO5.1.2: Describe other definitions
covered under relevant sections
LO5.1.3: Apply definitions on simple
scenarios.
SYLLABUS AUTUMN - 2015
51
Syllabus
Ref
2
Contents
Chapter II – Scope and payment of tax
Level
Learning Outcome
2
LO5.2.1: Understand the application of
sales tax law on taxable supplies including
zero rated and exempt supplies
LO5.2.2: State the determination, time
and manner of sales tax liability and
payment using simple examples.
3
Chapter III – Registration
2
LO5.3.1: State the requirement and
procedure of registration.
4
Chapter IV – Book keeping and invoicing
requirements
2
LO5.4.1: List the record to be kept by a
registered person
LO5.4.2: State the requirements of tax
invoice
LO5.4.3: Explain the retention period of
record using simple examples.
2
LO5.5.1: Understand the various types of
returns required to be filed by registered
and un-registered persons.
Chapter I – Registration, Compulsory
registration and De-registration
2
LO6.1.1: Explain the requirement and
procedure of registration, compulsory
registration and deregistration using
simple examples.
2
Chapter II – Filing of return
2
LO6.2.1: Explain the requirement and
procedure of filing of return using simple
examples.
3
Chapter III – Credit and Debit And
Destruction of Goods
2
LO6.3.1: Explain the requirement and
procedure of issuing debit and credit
notes using simple examples
5
Chapter V – Returns
b
Sales Tax Rules, 2006
1
LO6.3.2: State the procedure for
destruction of goods.
4
Chapter IV – Apportionment of Input Tax
SYLLABUS AUTUMN - 2015
2
LO6.4.1: Explain the requirement and
procedure of apportionment of input tax
using simple examples.
52
CAF-7
CERTIFICATE IN ACCOUNTING AND FINANCE
FINANCIAL ACCOUNTING AND REPORTING II
Objective
To broaden the knowledge base of basic accounting acquired in earlier modules with emphasis on
International Financial Reporting Standards.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
prepare financial statements in accordance with the relevant law of the country and in compliance
with the reporting requirements of the international pronouncements
2
account for transactions relating to tangible and intangible assets including transactions relating to
their common financing matters
3
understand the implications of contingencies; changes in accounting policies and estimates; errors
and events occurring after reporting period
4
account for transactions relating to taxation
5
demonstrate knowledge of basic ethical issues in preparation and reporting of financial information
6
apply financial analysis on given financial and non-financial information.
Grid
Weighting
Final Accounts
8-12
Consolidation of single subsidiary
10-20
Accounting for tangible and intangible assets, leases and borrowing cost
25-35
Provisions and contingencies; changes in accounting policies and estimates; errors and
events occurring after reporting period; and taxation
25-35
Ethics
5-10
Financial analysis
5-10
Total
Syllabus
Ref
Contents
A
Preparation of financial statements –
Final accounts
1
Preparation of financial statements
of limited companies in line with
the requirements of the Companies
Ordinance, 1984 and International
Financial Reporting Standards (IAS 1 and
7 and others included in the syllabus)
excluding liquidations reconstructions
and mergers
SYLLABUS AUTUMN - 2015
100
Level
Learning Outcome
2
LO1.1.1: Prepare statements of financial
position in accordance with the guidance
in IAS 1 from data and information
provided
LO1.1.2: Identify the laws, regulations,
reporting standards and other
requirements applicable to statutory
financial statements of a limited company
53
Syllabus
Ref
Contents
Level
Learning Outcome
LO1.1.3: Prepare and present the
following in accordance with the
disclosure requirements of IAS1,
Companies ordinance, fourth schedule /
fifth schedule
•
Statement of financial position
•
Statement of comprehensive income
•
Statement of changes in equity
•
Notes to the financial statements
LO1.1.4: Prepare statement of cash flows
in accordance with the requirements of
IAS 7.
Preparation of financial statements –
Consolidation of a single subsidiary
B
1
Elimination of investment in subsidiary
and parent’s equity
1
LO2.1.1: Describe the concept of a group
as a single economic unit
LO2.1.2: Define using simple examples
subsidiary, parent and control
LO2.1.3: Describe situations when control
is presumed to exist
LO2.1.4: Identify and describe the
circumstances in which an entity
is required to prepare and present
consolidated financial statements
LO2.1.5: Eliminate (by posting journal
entries) the carrying amount of the
parent’s investment in subsidiary
against the parent’s portion of equity of
subsidiary and recognize the difference
between the two balances as either.
2
Identification of non-controlling interest
1
•
goodwill; or
•
gain from bargain purchase
LO2.2.1: Define and describe noncontrolling interest in the case of a
partially owned subsidiary
LO2.2.2: Identify the non-controlling
interest in the following:
3
Profit and loss from intra-company
transactions relating to assets and
inventories without tax implications
SYLLABUS AUTUMN - 2015
1
•
net assets of a consolidated
subsidiary; and
•
profit or loss of the consolidated
subsidiary for the reporting period
LO2.3.1: Post adjusting entries to
eliminate the effects of intergroup sale of
inventory and depreciable assets.
54
Syllabus
Ref
Contents
Level
Learning Outcome
4
Preparation of consolidated statements of
financial position
1
LO2.4.1: Prepare and present simple
consolidated statements of financial
position involving a single subsidiary in
accordance with IFRS 10.
5
Preparation of consolidated statements of
comprehensive income
1
LO2.5.1: Prepare and present a simple
consolidated statement of comprehensive
income involving a single subsidiary in
accordance with IFRS 10.
Recognition, de-recognition,
measurement, depreciation /
amortization and measurement after
recognition of non-current assets (IAS 16
and IAS 38)
2
LO3.1.1: Explain and apply the accounting
treatment of property, plant and
equipment and intangible assets
Leases (IAS 17)
2
C
Accounting for tangible and intangible
assets, leases and borrowing costs
1
2
LO3.1.2: Formulate accounting policies in
respect of property, plant and equipment
and intangible assets.
LO3.2.1: Describe the method of
determining a lease type i.e. an operating
or finance lease
LO3.2.2: Prepare journal entries and
present extracts of financial statements
in respect of lessee accounting, lessor
accounting, and sale and lease back
arrangements, after making necessary
calculations
LO3.2.3: Formulate accounting policies in
respect of different lease transactions
LO3.2.4: Analyze the effect of different
leasing transactions on the presentation
of financial statements.
3
Recognition of borrowing costs (IAS 23)
2
LO3.3.1: Describe borrowing cost and
qualifying assets using examples LO3.3.2: Identify and account for
borrowing costs in accordance with IAS
23
LO3.3.3: Disclose borrowing costs in
financial statements
LO3.3.4: Formulate accounting policies in
respect of borrowing cost.
D
Provisions and contingencies; changes in
accounting policies and estimates; errors
and events occurring after reporting
period; and taxation
1
Provisions, contingent liabilities and
contingent assets (IAS-37)
SYLLABUS AUTUMN - 2015
2
LO4.1.1: Define liability, provision,
contingent liability and contingent asset
also describe their accounting treatment.
55
Syllabus
Ref
Contents
Level
Learning Outcome
LO4.1.2: Distinguish between provisions,
contingent liabilities or contingent assets
LO4.1.3: Understand and apply the
recognition and de-recognition criteria for
provisions
LO4.1.4: Calculate/ measure provisions
such as warranties/guarantees,
restructuring, onerous contracts,
environmental and similar provisions,
provisions for future repairs or
refurbishments
LO4.1.5: Account for changes in
provisions
LO4.1.6: Disclosure requirements for
provisions.
2
Accounting policies, changes in
accounting estimates; and errors (IAS-8)
2
LO4.2.1: Define accounting policies,
accounting estimates and prior period
errors
LO4.2.2: Account for the effect of change
in accounting estimates and policies in
the financial statements
LO4.2.3: Understand and analyze using
examples, IFRS guidance on accounting
policies, change in accounting policies
and disclosure
LO4.2.4: Understand and analyze using
examples, IFRS guidance on accounting
estimates, changes in accounting
estimates and disclosure
LO4.2.5: Understand and analyze using
examples, IFRS guidance on errors,
correction of errors and disclosure.
3
Events occurring after the reporting
period (IAS-10)
2
LO4.3.1: Explain using examples events
after the reporting period, adjusting
events, and non-adjusting events
LO4.3.2: Understand and analyze
using examples IFRS guidance on the
recognition, measurement and disclosure
of adjusting events and non-adjusting
events
LO4.3.3: Understand and analyze using
examples, going concern issues arising
after the end of the reporting period.
4
Taxation: Current year, prior years and
deferred (IAS-12)
Note that the deferred consequences
of the following transactions are not
examinable:
SYLLABUS AUTUMN - 2015
2
LO4.4.1: Define temporary differences
and identify temporary differences that
cause deferred tax liabilities and deferred
tax assets
56
Syllabus
Ref
Contents
•
•
•
•
•
•
•
E
Level
Learning Outcome
LO4.4.2: Determine amounts to be
recognised in respect of temporary
differences
Business combination (including
goodwill
Assets carried at fair value
Un-used tax losses and credits
Re-assessment of un-recognized
deferred tax assets
Investments in subsidiaries,
branches, associates and interest in
joint venture
Items recognized outside profit and
loss account
Share based payment
LO4.4.3: Prepare and present deferred
tax calculations using the balance sheet
approach
LO4.4.4: Account for the major
components of tax expense/income and
its relationship with accounting profit
LO4.4.5: Formulate accounting policies in
respect of deferred tax
LO4.4.6: Apply disclosure requirements of
IAS12 to scenarios of a moderate level of
complexity.
Ethics
1
Fundamental principles (sections 100 to
150 of the Code of Ethics for Chartered
Accountants)
2
LO5.1.1: Describe with simple
examples the fundamental principles of
professional ethics of integrity,
objectivity, professional competence
and due care, confidentiality and
professional behaviour
LO5.1.2: Apply the conceptual framework
to identify, evaluate and address threats
to compliance with fundamental
principles.
2
F
An understanding of ethics relating to
preparation and reporting of financial
information (Section 320 of Code of
Ethics for Chartered Accountants)
2
LO5.2.1: Explain using simple examples
the ethical responsibilities of a Chartered
Accountant in preparation and reporting
of financial information.
3
LO6.1.1: Following ratios:
• Current ratio
Financial analysis
1
Compute and interpret various ratios
from data and information provided.
SYLLABUS AUTUMN - 2015
•
Acid-test ratio/quick ratio
•
Gross profit
•
Return on equity
•
Return on assets
•
Return on capital employed
•
Debt-equity ratio
•
Inventory turnover
•
Debtor turnover
•
Creditor turnover
57
CAF-8
CERTIFICATE IN ACCOUNTING AND FINANCE
COST AND MANAGEMENT ACCOUNTING
Objective
To equip candidates with techniques of cost accounting to provide a knowledge base for decision making
skills..
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
establish the costs associated with the production of products and provision of services
2
demonstrate an understanding of different costing systems
3
prepare various types of forecasts and budgets
4
apply the concepts of costing in the decision making process
5
demonstrate a functional knowledge of financial instruments
6
apply concept of time value of money
7
understand the concepts of sustainability reporting.
Grid
Weighting
Costs associated with the production
15-20
Costing system
20-30
Budget and budgetary controls
10-15
Decision making
20-25
Financial instruments
5-10
Time value of money
5-10
Sustainability reporting
5-10
Total
Syllabus
Ref
Contents
A
Costs associated with production
1
Basis of valuation - FIFO, weighted
average, lower of cost and net realizable
value
Level
2
100
Learning Outcome
LO1.1.1: Apply inventory valuation
methods ( namely, FIFO, weighted
average, lower of cost and net realizable
value) in simple scenarios
LO1.1.2: Comment on the suitability of
inventory valuation under FIFO, weighted
average, lower of cost and net realizable
value
LO1.1.3: Compare inventory valuation
under FIFO, weighted average, lower of
cost and net realizable value
LO1.1.4: Calculate NRVs of inventories in
a given scenario.
SYLLABUS AUTUMN - 2015
58
Syllabus
Ref
2
Contents
Economic Order Quantity
Level
2
Learning Outcome
LO1.2.1: Describe the economic order
quantity (EOQ) and apply the concept in
given scenarios
LO1.2.2: Calculate the EOQ from data
provided.
3
Safety stock
2
LO1.3.1: Describe safety stocks for
inventories
LO1.3.2: Explain the reasons for
maintaining safety stock
LO1.3.3: Calculate the safety stock from
data provided.
4
Re-order level
2
LO1.4.1: Explain the re-order levels and
the objectives of setting re-order levels
LO1.4.2: Calculate re-order levels by using
data provided.
5
Manufacturing expenses - actual and
applied
2
LO1.5.1: Describe manufacturing
overheads using examples
LO1.5.2: Compare manufacturing,
administrative and selling costs
LO1.5.3: Identify manufacturing
overheads from data provided
LO1.5.4: Describe and distinguish
between actual overhead and applied
overhead
LO1.5.5: Calculate applied overheads
using data provided.
6
Over or under absorbed overhead
2
LO1.6.1: Compare actual and absorbed
overheads from data provided
LO1.6.2: Analyze over or under
absorption in terms of expenditure and
volume variances
LO1.6.3: Account for over or underabsorbed overheads.
7
Production and service departments
2
LO1.7.1: Identify production and service
departments in a manufacturing facility
and analyze their related costs
LO1.7.2:Explian the basis of allocation of
cost of service department to production
department.
8
Apportionment, allocation and absorption
of service departments› overheads to
production
2
LO1.8.1: Allocate costs to production and
service departments using information
provided
LO1.8.2: Allocate costs of service
departments to production department
using data and information provided.
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Syllabus
Ref
Contents
B
Costing systems
1
Marginal costing
Level
2
Learning Outcome
LO2.1.1: Explain the concept of marginal
costing and apply on given data
LO2.1.2: Explain how marginal costing
helps managerial decisions using
examples.
2
Absorption costing
2
LO2.2.1: Describe and apply absorption
costing approach in given scenarios
LO2.2.2: Compare marginal costing and
absorption costing.
3
Manufacturing cost accounting cycle
2
LO2.3.1: Explain the flow of cost in the
production process using examples
LO2.3.2: Prepare accounting entries for
the flow of cost.
4
Job order costing
2
LO2.4.1: Describe job order costing
LO2.4.2: Calculate the cost of a job and
inventories by application of job order
costing
LO2.4.3: Prepare accounting entries
under the job order costing system.
5
Process costing
2
LO2.5.1: Describe the process costing
including the treatment of normal /
abnormal loss / gain
LO2.5.2: Calculate cost of product and
inventories by application of process
costing
LO2.5.3: Prepare accounting entries
under the process costing system.
6
Treatment of Joint and By-Products
2
LO2.6.1: Describe joint and by products
using examples
LO2.6.2: Allocate joint production costs
using sales value, physical units, average
units and weighted average methods
LO2.6.3: Account for by-products using
recognition of gross revenue, recognition
of net revenue and replacement cost
approaches.
7
Cost of services rendered
2
LO2.7.1: Explain how departmentalization
in a service organization helps in cost
planning and control
LO2.7.2: Calculate cost of services
rendered by a service organization.
8
Standard costing
2
LO2.8.1: Explain standard costing using
examples
LO2.8.2: Perform standard setting for
material, labour and factory overhead.
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Syllabus
Ref
Contents
Level
Learning Outcome
9
Variance analysis-material, labour and
overhead
2
LO2.9.1: Calculate, analyze and interpret
various variances relating to material,
labour and factory overhead.
10
Target costing
2
LO2.10.1: Describe target costing and
how target cost is determined
LO2.10.2: Apply the target costing tools
to given scenarios.
C
Budget and budgetary controls
1
Planning, forecasting and budgeting of
sales, cost and profit
2
LO3.1.1: Explain how budgeting process
works and how it fits into overall planning
and control
LO3.1.2: Prepare forecasts on given data
and assumptions
LO3.1.3: Identify and describe different
purposes of budgeting
LO3.1.4: Identify and describe the various
stages in the budgeting process
LO3.1.5: Prepare following types of
budgets:
• fixed and flexible budgets;
• performance budgeting;
• sales budget;
• production budget;
• direct materials budget;
• direct labour budget;
• manufacturing overhead budget;
• inventory budget;
• cost of goods sold budget;
• selling and administrative
expenses budget with inflation
aspects;
• Master/cash budget;
• zero based budgets, and
• capital expenditure budgets;
LO3.1.6: Describe the human &
motivational aspects of budgets
LO3.1.7: Describe budgeting and planning
in a non-profit organisation
LO3.1.8: Prepare forecasts and budgets
for a non-profit organisation.
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Syllabus
Ref
Contents
D
Decision making
Level
Learning Outcome
1
Opportunity cost
2
LO4.1.1: Describe opportunity cost using
examples.
2
Relevant cost
2
LO4.2.1: Describe relevant costs using
examples
LO4.2.2: Identify the costs that are
relevant to a particular decision in given
data.
3
Breakeven analysis
2
LO4.3.1: Explain the break-even point
using examples and margin of safety
LO4.3.2: Calculate the breakeven point in
quantity and amount from information
provided
LO4.3.3: Apply cost volume profit (CVP)
analysis and explain its usefulness for
management.
4
Make or buy decisions
2
LO4.4.1: Apply marginal and relevant
costing concepts to analyze make or buy
options
LO4.4.2: Analyze make or buy options in
case of capacity constraints
LO4.4.3: Discuss using examples the
importance of qualitative considerations
in make or buy decisions.
5
Pricing for special orders
2
LO4.5.1: Perform incremental cost benefit
analysis for a special order.
6
Further processing decisions
2
LO4.6.1: Perform incremental cost benefit
analysis for further processing costs.
7
Utilization of spare capacity
2
LO4.7.1: Analyze the impact of spare
capacity on management decisions
regarding make or buy, special order and
further processing.
1
LO5.1.1: Describe direct and indirect
investment using examples
E
Financial instruments (basic functions)
1
Shares, debentures, bonds, futures,
options, cap, floor, collar, swaps, forward
LO5.1.2: Describe using examples shares,
debentures, bonds, futures, options
LO5.1.3: Describe using simple examples
the following characteristics of indirect
investments and compare them with
direct investments: SYLLABUS AUTUMN - 2015
•
Divisibility
•
Liquidity
•
Holding period
62
Syllabus
Ref
Contents
Level
Learning Outcome
LO5.1.4: Differentiate between
investment and speculation using simple
examples
LO5.1.5: Describe using simple examples
cap, floor, collar, swaps, forwards.
F
Time value of money
1
G
Computation of net present value and
internal rate of return
1
LO6.1.1: Explain the time value of money
LO6.1.2: Calculate net present value and
internal rate of return of given cash flows.
Sustainability reporting
1
An introduction to sustainability reporting
1
LO7.1.1: Apply the concept of
sustainability reporting
LO7.1.2: Describe the concept of
integrated reporting
LO7.1.3: Identify and explain the users of
sustainability report
LO7.1.4: Explain benefits of sustainability
reporting and apply this in given
scenarios
LO7.1.5: Explain the IFAC Framework of
sustainability reporting.
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63
CAF-9
CERTIFICATE IN ACCOUNTING AND FINANCE
AUDIT AND ASSURANCE
Objective
To acquire knowledge of theory, skills, techniques of auditing and to enable the students to understand
International Standards on Auditing, Assurance and Ethics.
Learning Outcome
On the successful completion of this paper candidates will be able to:
1
demonstrate knowledge of general concepts governing an audit
2
demonstrate working knowledge in respect of performance of simple audit procedures and
understand the audit report requirement under the companies ordinance, 1984
3
understand the requirement and application guidelines relating to some of the specific areas of
audit procedures including external confirmation, review of subsequent events etc.
4
comprehend nature of engagements of review of interim financial statements
5
demonstrate familiarity with computer programming and IT controls relevant to financial reporting
6
respond on audit matters in the light of fundamental principles given in the code of ethics.
Grid
Weighting
General concepts and principles of audit
15-20
Performance of audit and reporting
25-35
Specific areas
20-25
Computer programming and IT controls
10-15
Professional Ethics
10-15
Total
Syllabus
Ref
A
Contents
Level
100
Learning Outcome
General concepts and principles of audit
1
Introduction to International Federation
of Accountants
1
LO1.1.1: Briefly describe the
organizational overview encompassing
• History;
• Vision and mission
2
Introduction to international auditing and
assurance standard setting body
1
LO1.2.1: Briefly describe the objectives
and functions of IAASB.
3
Objective and general principles
governing an audit (ISA 200)
2
LO1.3.1: Describe the objectives of audit
including concepts of accountability,
stewardship, agency, independence and
fair presentation
LO1.3.2: Describe the overall objectives
of the independent auditor.
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Syllabus
Ref
Contents
Level
Learning Outcome
LO1.3.3: Describe the concepts of
assurance and levels of assurance
i.e. absolute, reasonable and limited
assurance including elements of an
assurance engagement, assurances
provided by audit and review
engagement
LO1.3.4: Explain the requirements of an
external audit, eligibility and ineligibility
of auditor
LO1.3.5: Describe the rights and duties of
auditors
LO1.3.6: Explain the nature and scope
of an audit designed to enable the
independent auditor to meet those
objectives
LO1.3.7: Outline the requirements
establishing the general responsibilities of
the independent auditor applicable in all
audits including consideration of inherent
limitations of an audit
LO1.3.8 Discuss the concept of
professional scepticism.
4
Responsibility for the financial statements
2
LO1.4.1: Understand the responsibility
of management and those charged with
governance for financial reporting and
related internal control on financial
reporting.
5
Auditor’s responsibility to consider fraud
(ISA 240)
2
LO1.5.1: Distinguish between the terms
‘error’, ‘fraud’ and ‘misstatement’
LO1.5.2: Compare the respective
responsibilities of management and
auditors for fraud
LO1.5.3: Describe the matters to be
considered and procedures to be carried
out to assist the auditor in identifying,
assessing and detecting the risks of
material misstatement due to fraud
LO1.5.4: Identify the fraud risk factors
in the simple scenario as given in the
appendix 1 of ISA 240
LO1.5.5: Identify the circumstances that
indicate the possibility of fraud in the
simple scenario as given in the appendix
3 of ISA 240.
6
Legal considerations relating to
appointment and removal of auditors
(sections 252 to 260 of the Companies
Ordinance 1984)
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2
LO1.6.1: Explain how the first and
subsequent auditors are appointed
LO1.6.2: Explain how the first and
subsequent auditors are removed
65
Syllabus
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Contents
Level
Learning Outcome
LO1.6.3: Explain the procedure of
resignation of auditors
LO1.6.4: Describe qualification and
disqualification of the auditor
LO1.6.5: Describe the powers and duties
of auditors
LO1.6.6:Decribe the concept of audit of
cost accounts
LO1.6.7: Discuss the additional matters to
be included in the auditor’s report
LO1.6.8: Discuss the auditor’s
responsibilities with respect to
attendance at general meeting and access
to books and records.
7
Terms of Audit engagements (ISA 210)
2
LO1.7.1: Describe the preconditions
for an audit and upon which it is
necessary for the auditor and the entity’s
management to agree
LO1.7.2: Respond if preconditions are not
present or limit is imposed on scope of
audit in well explained simple situations
LO1.7.3: State the contents of an audit
engagement letter
LO1.7.4: Discuss the requirement of
issuance of engagement letter and
factors that necessitate the issuance of
engagement letter in case of recurring
audit
LO1.7.5: Discuss the circumstances of
acceptances of changes in terms of
engagement by the auditor.
B
Performance of audit and reporting 1
Planning an audit (ISA 300)
2
LO2.1.1: Discuss the need for planning an
audit including contents of an audit plan
and its relation with risk assessment
LO2.1.2: Discuss the contents of overall
audit strategy and audit plan
LO2.1.3: State who should be involved
in planning and what preliminary
engagement activities are necessary
LO2.1.4: Discuss overall planning and the
audit plan for a recurring audit
LO2.1.5: Outline the additional
considerations that should be identified
while planning the initial audit.
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Syllabus
Ref
2
Contents
Assessment of audit risks (ISA 315 and
330)
Level
2
Learning Outcome
LO2.2.1: Discuss the risk based approach
to auditing including audit risk model
LO2.2.2: Identify the inherent risk, control
risk and detection risk in simple scenario
LO2.2.3: Explain relationship between
audit risk and its components i.e.
inherent risk, control risk and detection
risk
LO2.4.: Discuss the identification and
assessment of the risks of material
misstatement at both the financial
statement level and assertion level,
including understanding of entity, its
environment, accounting and internal
control systems
LO2.2.5: Explain the elements of internal
control
LO2.2.6: Discuss the evaluation of
controls and control environment and
communication of deficiencies to the
management
LO2.2.7: Explain the categories of control
activities (internal controls) by using
simple examples including Application
and General IT Controls
LO2.2.8: Differentiate between control
activities relevant and irrelevant to audit
in a well explained scenario
LO2.2.9: Explain and identify the control
weaknesses in the given scenario and
suggest appropriate recommendations to
remove these weaknesses
LO2.2.10: Discuss and explain the
limitations of internal control system
LO2.2.11: Discuss and explain the risks in
specialized IT systems
LO2.2.12: Explain the different methods
of recording internal control systems.
3
Audit materiality (ISA 320)
2
LO2.3.1: Explain the concepts of
materiality and performance materiality
using simple examples.
4
Audit evidence (ISA 500)
2
LO2.4.1: Explain, using examples,
sufficient appropriate audit evidence
LO2.4.2: Discuss the general principles
assisting the auditor in assessing the
relevance and reliability of audit evidence
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67
Syllabus
Ref
Contents
Level
Learning Outcome
LO2.4.3: Discuss audit procedures to
obtain audit evidence including types of
audit procedures
LO2.4.4: Discuss the course of action
available to auditor in case sufficient
appropriate audit evidence is not
obtained
LO2.4.5: Explain the financial statement
assertions including Assertions about
class of transactions, account balances
and presentation and disclosure
LO2.4.6: Explain what information can be
used as audit evidence.
5
Audit sampling (ISA 530)
2
LO2.5.1: Explain audit sampling, statistical
sampling and sampling and non-sampling
risk using simple examples
LO2.5.2: Discuss the relationship between
sampling and audit risk model
LO2.5.3: Explain what matters are
considered by auditors in respect of
sample design, size and selection of
items for testing using simple examples
including sample selection method
LO2.5.4: Discuss the concept of
misstatement and rate of deviation
including expected and tolerated
LO2.5.5: State the audit procedures to be
performed on selected sample
LO2.5.6: Discuss the concept of Projecting
misstatement and evaluating the results
of audit sampling.
6
Substantive procedures (ISA 330)
2
LO2.6.1: Understand the financial
statement assertions
LO2.6.2: Identify the financial statement
assertions in simple scenarios
LO2.6.3: Discuss the use of computer
software in substantive testing, auditing
around the computer and directional
testing
LO2.6.4: Discuss the methods of
obtaining audit evidence for substantive
testing
LO2.6.5: Explain the nature, extent and
timing of substantive procedures for
different items of financial statements.
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68
Syllabus
Ref
7
Contents
Tests of controls (ISA 330)
Level
2
Learning Outcome
LO2.7.1: Explain the nature, extent and
timing of test of controls using simple
examples
LO2.7.2: Explain the concept of Computer
Assisted Audit Techniques
LO2.7.3: Explain how auditors evaluate
the operating effectiveness of controls
using simple examples
LO2.7.4: Explain the controls over major
transaction cycles including related
risks, weaknesses control objectives and
designing appropriate tests of controls.
8
Analytical procedures (ISA 520)
2
LO2.8.1: Explain the nature and purpose
of substantive analytical procedures using
simple examples
LO2.8.2: State the purpose of analytical
procedures performed near the end of
the audit
LO2.8.3: Applying analytical procedures
through calculations of different ratios for
different items of financial statements.
9
Documentation (ISA 230)
2
LO2.9.1: Explain the nature and purpose
of audit documentation
LO2.9.2: Describe the form, content and
extent of audit documentation using
simple examples
LO2.9.3: Discuss the use of computer
based audit working papers
LO2.9.4: Discuss the ownership, custody
and confidentiality of audit working
papers
LO2.9.5: Understand the nature of
assembly of the final audit file.
10
Audit opinion and form of audit report
under International Standards on Auditing
and under the Companies Ordinance
1984
2
LO2.10.1: Understand modified and
unmodified audit opinion
LO2.10.2: Explain qualified opinion,
disclaimer of opinion and adverse opinion
LO2.10.3: Explain emphasis of matter and
other matter in the auditor’s report
LO2.10.4: Discuss the modification of
audit opinion and audit report in different
situations
LO2.10.5: Briefly state the contents of
the auditor’s report under International
Standards on Auditing and under the
Companies Ordinance 1984
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Syllabus
Ref
Contents
Level
Learning Outcome
LO2.1.0.6: Explain the differences
between auditor’s report under
International Standards on Auditing and
under the Companies Ordinance 1984
LO2.10.7: State the penalty for noncompliance with provisions related to the
audit report.
C
Specific areas
1
External confirmations (ISA 505)
2
LO3.1.1: Describe the significance of
using external confirmation procedures
for obtaining relevant and reliable audit
evidence
LO3.1.2: Describe the steps involved in
external confirmation procedures
LO3.1.3: Differentiate between the
positive confirmation request and
negative confirmation request, including
their appropriateness in different
situations
LO3.1.4: Discuss the conditions of sending
negative confirmations
LO3.1.5: Discuss the auditor’s course of
action if management refuses to allow
auditor to send confirmation.
2
Subsequent events (ISA 560)
2
LO3.2.1: Explain subsequent events and
its relevance with the following critical
dates
•
Date of the financial statements
•
Date of approval of the financial
statements
•
Date of the auditor’s report
•
Date the financial statements are
issued
LO3.2.2: Explain the subsequent events
review procedure
LO3.2.3: Discuss the classification of
subsequent events into adjusting and non
adjusting events
LO3.2.4: Describe the auditor’s
responsibility in respect of following
situations
•
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Events occurring between the
date of the financial statements
and the date of the auditor’s
report
70
Syllabus
Ref
Contents
Level
Learning Outcome
•
Facts which become known to
the auditor after the date of the
auditor’s report but before the
date the financial statements are
issued
•
Facts which become known to
the auditor after the financial
statements have been issued
LO3.2.5: Identify the subsequent events
and explain the auditor’s responses.
3
Written representation (ISA 580)
2
LO3.3.1: Discuss the nature of written
representations as audit evidence
LO3.3.2: Discuss the circumstances where
written representations are necessary
and the matters on which representations
are commonly obtained
LO3.3.3: Discuss the form and content of
written representations
LO3.3.4: Discuss the auditor’s course of
action if management refuses to provide
requested written representation.
4
Consideration of related parties (ISA 550)
2
LO3.4.1: Describe the term related party
using simple examples
LO3.4.2: Discuss how related party
transactions can give rise to the risk
of material misstatement using simple
examples
LO3.4.3: describe the audit procedures
including risk assessment procedures and
related activities to obtain information
relevant to identifying the related party
relationships and transactions including
responses to the assessed risk of material
misstatement.
5
Using the work of component auditors,
internal audits and auditor’s experts (ISA
600, ISA 610 and ISA 620)
2
LO3.5.1: Explain the responsibility of the
group engagement partner in respect
of acceptance and continuance, overall
audit strategy, understanding the group,
its components and their environment,
their auditor and materiality
LO3.5.2: Discuss the planning and
controlling of a group audit, working and
communication with the component
auditor and involvement of the group
auditor in the work performed by
component auditor
LO3.5.3: Explain the relationship between
the external auditor with internal auditors
and auditor’s experts
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71
Syllabus
Ref
Contents
Level
Learning Outcome
LO3.5.4: Explain the internal audit
function including internal audit activities
LO3.5.5: Discuss the factors determining
the independence of internal auditors
and weaknesses and limitations of
internal audit
LO3.5.6: Discuss how external auditors
determine whether and to what extent
they use the work of internal audit
LO3.5.7: Discuss using examples how
external auditors uses the specific work of
internal audit
LO3.5.8: Discuss how the auditor assesses
the work of an expert
LO3.5.9: Discuss how the external auditor
uses the work of an auditor’s expert when
that work is used to assist in obtaining
sufficient appropriate audit evidence.
6
Engagement to review financial
statements 2400
2
LO3.6.1: Explain the objective of a review
engagement of financial statements and
how it differs from an audit
LO3.6.2: State the terms of engagement
which may be included in the
engagement letter
LO3.6.3: Describe the procedures
generally adopted by the practitioner to
obtain evidence in review engagements
LO3.6.3: Discuss and explain the report
issued under engagement to review
financial statements.
D
Computer programming and IT controls
1
Benefits and limitations of flowcharts
1
LO4.1.1: State the benefits and limitations
of flowcharts using simple examples.
2
Types of flowcharts
1
LO4.2.1: Classify and distinguish between
types of flowcharts, namely, linear,
deployment and opportunity flowcharts
LO4.2.2: Describe the macro, mini and
micro level details of flowcharts.
3
Drawing flowcharts for specific situations/
programs
2
LO4.3.1: Draw different types of
flowcharts for given situations.
4
Control design
2
LO4.4.1: Describe appropriate controls
while designing the system using simple
examples.
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Syllabus
Ref
Contents
Level
Learning Outcome
5
General controls
2
LO4.5.1: Describe general controls
and classify them into environment,
development, maintenance and
operational controls using simple
examples.
6
Preventative, detective and corrective
controls
2
LO4.6.1: Describe preventative, detective
and corrective controls using simple
examples.
7
Audit trails
2
LO4.7.1: Describe the concept of an audit
trail in a computerized environment using
simple examples.
8
Logical access controls
2
LO4.8.1: Describe logical access controls
for a given situation/system.
9
Physical access controls
2
LO4.9.1: Describe physical access controls
for a given situation/system.
10
Program security techniques
2
LO4.10.1: Describe checks/controls into
the software system to protect data from
corruption and unauthorized access.
11
Data security and public networks
2
LO4.11.1: State controls over data
transmission
LO4.11.2: Describe data encryption
techniques for transmission of data over
public networks
LO4.11.3: Describe communications
protocol
LO4.11.4: Understand the Open System
Interconnection (OSI) model.
12
E
Monitoring and surveillance techniques
2
LO4.12.1: Describe the usefulness of
system logs for analyzing a system’s
performance.
2
LO5.1.1: Describe with simple
examples the fundamental principles of
professional ethics of integrity, objectivity,
professional competence and due care,
confidentiality and professional behavior
Professional Ethics
1
Fundamental principles (sections 100 to
150 of the Code of Ethics for Chartered
Accountants)
LO5.1.2: Apply the conceptual framework
to identify, evaluate and address threats
to compliance with fundamental
principles
LO5.1.3: Understand the threats and
circumstances that cause threats of selfinterest, self-review, advocacy, familiarity,
and intimidation
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Syllabus
Ref
Contents
Level
Learning Outcome
LO5.1.4: Discuss the safeguards to
offset the threats to compliance with the
fundamental principles
LO5.1.5: Discuss the concept of ethical
conflict resolution.
2
Client and engagement acceptance
(section 210 of the Code of Ethics for
Chartered Accountants)
2
LO5.2.1: Explain the advertisement and
publicity guidelines of ICAP’s Code of
Ethics for obtaining the audit work
LO5.2.2: Apply the conceptual framework
to identify, evaluate and address threats
in case of Fees, Referral Fees and
Tendering for audit work.
LO5.2.3: Explain using simple examples
the matters to be considered and
the procedures that an audit firm/
professional accountant should carry out
in the following circumstances:
• Client acceptance
• Engagement acceptance
• Changes in a professional
appointment (including
Additional work, Mid-Term
Removal and Non reappointment)
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74
PCSC – 01
PRESENTATION AND COMMUNICATION SKILLS COURSE - I
50 Hours Course to be completed in any RAET or recognized institutes
Learning outcomes of the Course
S. No.
1
Skills
Weighting
Intellectual
Demonstrate openness and objectivity in giving and receiving
feedback.
2
3
10
Interpersonal and Communication
Present information in written and numeric form clearly.
Depict awareness of clear communication.
60
Demonstrate listening skills and understands given
instructions.
10
Professional skepticism and professional judgment
Probe and questions the relevant facts.
20
Total
100
Methodology
Method
Numbers
Hours
Classroom lectures and practice
5
10
Formal presentations before a group:
• Attended
• Presented
• Facilitator’s feedback on presentations
12
6
2
24
3
5
Group Discussion on pre-seen and well prepared topics
4
8
50
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75
PCSC-02
PRESENTATION AND COMMUNICATION SKILLS COURSE - II
50 Hours Course to be completed in any RAET or recognized university
Learning outcomes of the Course
S. No.
1
2
3
4
Skills
Weighting
Intellectual
Demonstrate openness and objectivity in giving and receiving
feedback.
5
Apply reasoning, criticalanalysis and innovative thinking and
recommend solutions to problems.
5
Interpersonal and Communication
Present information in written and numeric form clearly. Depicts
awareness of clear communication.
50
Demonstrate listening skills and understands given instructions.
10
Apply consultative skills to minimize or resolve conflict and
solve problems.
5
Present ideas and influence others to provide support and
commitment.
5
Professional skepticism and professional judgment
Probe and questions the relevant facts.
5
Identify and evaluate reasonable alternatives to reach
well-reasoned conclusions based on all relevant facts and
circumstances.
5
Ethical principles
Apply the fundamental ethical principles, namely, integrity,
objectivity, professional competence and due care,
confidentiality and professional behavior to respond to ethical
dilemmas.
10
Total
100
Methodology
Minimum
Numbers
Minimum Hours
Classroom lectures and practice
6
12
Formal presentations before a group:
• Attended
• Presented
• Facilitator’s feedback on presentations
12
8
2
24
4
5
Group Discussion on pre-seen and well prepared topics
2
5
Method
50
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