THE INSTITUTE OF CHARTERED ACCOUNTANTS
OF NIGERIA
(Established by Act of Parliament No.15 of 1965)
SYLLABUS
FOR ENTRY TO THE CHARTERED ACCOUNTANCY PROFESSION
and Regulations
Effective from May 2005
2005
FOREWORD
The Institute has come a long way since its first home based examinations in 1970.
Remember that the Institute came into being in September 1965 by an Act of
Parliament. The last review of the Institute syllabus was done in 1997 and it became
operational in 1998. Since then a lot of water has passed under the bridge.
This current review, was done in order to strengthen the necessary building blocks for
an accomplished Chartered Accountant of the 21st Century.
The important areas of departure between the present syllabus and the preceding one
are as follows:
(i)
Total number of subjects:There are now nineteen (19) as opposed to the previous eighteen (18) subjects
(ii)
Modules Structure
(a)
The former Foundation Module which composed of Module A and Module
B is now condensed to only one to be called Foundation
(b)
The Professional Examinations (PE) broken up into P.E. I and P.E. II are
now made up of Professional Examination I; Professional Examination II
and Professional Examination III.
The rationale of expanding the Professional Examinations is to give
students enough room to study the various levels at a greater depth.
(c)
(iii)
Intermediate remains Intermediate
Issue of Credit System
With the coming into force of this new syllabus, students will now be credited with
the subjects they pass, provided at least two papers have been passed at any
one sitting.
This new provision will remove the “punitive” measure of “taking all papers” once
a “double-star” is scored in any subject.
(iv)
ICAN sponsored Study Packs
Competent professionals have been commissioned to write manuals to be called
ICAN study packs that will be good guides to the students. This bold step by the
Institute is a welcome development and the authors of such manuals should be
commended.
Finally, we believe our students will now be in a better position to study and pass the
examinations without much fuss and the education they receive will be a great asset to
their prospective employers.
Zubai A. Abdullah
Chairman
Students’ Affairs Committee
2
Contents
FOREWORD……………………………………………………………….…………… 1
PART ONE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Introduction
……………………………………………………
Objects and Duties …………………………………………………….
Membership
……………………………………………
Chartered Accountants
……………………………………………
Registered Accountants ……………………………………………
Designatory letters
..…………………………………………..
The Practice of Accountancy in Nigeria………………………………
Advertisements for Business…………………………………………..
The Library
…………………………………………….
District Societies
…………………………………………….
Publications
…………………………………………….
Training Schemes
…………………………………………….
(i)
Definition of Training……………………………………
(ii)
Approved Work of Accounting Nature………………..
(iii)
Recognised Training Centres ………………………..
Practising Licence
……………………………………………
Secretariat
……………………………………………
4
4
4
4
5
5
5
6
6
6
6
7
7
7
7
8
8
PART TWO
15
15.1
15.2
15.3
STUDENTSHIP REGISTRATION AND TRAINING………………. 9
Approved Qualifications for Registration…………………………… 9
Application for Registration
…………………………………. 9
Conditions to be satisfied …………………………………………. 10
PART THREE
16.
PROFESSIONAL EXAMINATIONS……………………………….. 11
16.1
Structure of the Syllabus ………………………………………… 11
16.2
Dates of Examinations
………………………………………… 12
16.3
Closing Dates of Entries ………………………………………… 12
16.4
Examination Entry ………………………………………………… 12
16.5
Examination Results………………………………………………..
12
16.6
Credit System ……………………………………………………..
12
16.7
Pass Mark ………………………………………………………..
12
16.8
Conversion Arrangements ………………………………………..
12
16.8.1
Foundation ………………………………………………………
13
16.8.2
Intermediate Examination ………………………………………
14
16.8.3
Professional Examination I
………………………………
14
16.8.4
Professional Examination II
………………………………
15
17
Examination Time Table for May 2005 ………………………
15
18.
Examination Question Format……………………………………
15
19
Absence from an Examination …………………………………. 16
3
Misconduct in an Examination ………………………………
Exemption Guidelines
……………………………………
Academic Qualifications ………..………………………………
Subject by Subject Exemption…………………………………
Professional Qualifications………………………………………
Lecturers in Higher Institutions……….…………………………
16
17
17
18
19
19
21
21.1
EXAMINATIONS SYLLABUS
………………………………
FOUNDATION
……………………………………………
20
20
21.1.1
21.1.2
21.1.3
Fundamentals of Financial Accounting ………………………
Quantitative Analysis
………………………………………
Economics
………………………………………
20
24
32
21.2
INTERMEDIATE
………………………………………
36
21.2.1
21.2.2
21.2.3
21.2.4
Cost Accounting
…………………………………………..
General Principles of Law ……………………………………..
Principles and Practice of Auditing
……………………..
Management
……………………………………………..
20
20
20.1
20.2
20.3
20.4
PART FOUR
36
40
43
47
PROFESSIONAL EXAMINATIONS
21.3
21.3.1
21.3.2
21.3.3
21.3.4
PROFESSIONAL EXAMINATIONS I
….……………………
Financial Accounting I
………………………………………
Taxation
………………………………………
Management Information Systems
………………………
Business Law
………………………………………
21.4
PROFESSIONAL EXAMINATION II
21.4.1
21.4.2
21.4.3
21.4.4
Financial Accounting II
……………………………………..
Management Accounting ………………………………………
Public Sector Accounting and Finance ………………………..
Business Communication and Research Methodology ……..
68
71
76
81
21.5
21.5.1
21.5.2
21.5.3
21.5.4
PROFESIONAL EXAMINATION III …………………………..
Financial Reporting and Audit Practice………..………………..
Strategic Financial Management………….. ……………………
Tax Management and Fiscal Policy …………………………..
Multidisciplinary Case Study …………………………………..
85
85
90
95
99
4
……………………..
52
52
56
60
65
68
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA
Students’ Regulations and Examination Syllabus
PART ONE
1.
INTRODUCTION
The forerunner of the institute under the name “The Association of
Accountants in Nigeria” was established in 1960. This Association was
absorbed by the Institute created by an Act of Parliament No. 15 (The Act)
which came into force on September 1, 1965. The Institute has, as at July
31, 2004, 17,377 members and 99,963 students on its Register.
2.
OBJECTS AND DUTIES
The objects and duties of the Institute as laid down in section 1 (1) of the Act,
are:
3.
(a)
“determining what standards of knowledge and skill are to be attained
by persons seeking to become members of the accountancy
profession and raising those standards from time to time as
circumstances may permit;
(b)
securing in accordance with the provisions of the Act, the
establishment and maintenance of registers of Fellows, Associates
and Registered Accountants entitled to practise as accountants and
auditors and publishing from time to time lists of those persons; and
(c)
performing through the Council under this Act the functions conferred
on it by the Act.”
MEMBERSHIP
There are two main classes of membership of the Institute, namely; Chartered
Accountants and Registered Accountants.
4.
CHARTERED ACCOUNTANTS
A person shall be enrolled as a Chartered Accountant if:
(a)
he passes the qualifying examination for membership conducted by
the Council of the Institute and completes a prescribed practical
training (Section 8(1)(a); or
(b)
he holds a qualification granted outside Nigeria and for the time being
accepted by the Institute, and he satisfies the Council of the Institute
that he had sufficient practical experience as an Accountant (Section
8(1)(b).
5
A member of any of the following professional bodies:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
The Institute of Chartered Accountants in England and Wales;
The Institute of Chartered Accountants of Scotland;
The Institute of Chartered Accountants in Ireland;
The Association of Chartered Certified Accountants;
The American Institute of Certified Public Accountants;
The Canadian Institute of Chartered Accountants;
The Chartered Institute of Management Accountants;
The Chartered Institute of Public Finance and Accountancy;
Shall be eligible under the present Rules and Regulations of the Institute to
be enrolled as a Chartered Accountant, in pursuance of section 8 (1) (b) of
the Act after undergoing an orientation course/seminar during which Law,
Public Sector Accounting & Finance, Financial Reporting and Audit Practice
and Tax Management and Fiscal Policy would be the main subjects of intense
discourse. Furthermore, the candidate would be required to make an oral
presentation before admission.
5.
REGISTERED ACCOUNTANTS
A person is entitled to be registered as a Registered Accountant if he satisfies
the Council of the Institute that immediately before the appointed day (i.e.
September 1, 1965), he has had not less than five years experience as an
inspector and auditor of company affairs under the provisions of the
Companies and Allied Matters Act, 1990. See Section 8 (2) of the Act.
6.
DESIGNATORY LETTERS
Every member of the Institute is entitled to use the following designatory
Letters after his name:
In the case of a Fellow, the letters “FCA” (Fellow of the Institute of Chartered
Accountants)
In the case of an Associate, the letters “ACA” (Associate of the Institute of
Chartered Accountants).
In the case of a Registered Member, the letters “RA”
Accountant).
6
(Registered
7.
THE PRACTICE OF ACCOUNTANCY IN NIGERIA
Only members of the institute are entitled to practise as Accountants in
Nigeria in accordance with the provisions of Section 8(2) of the Act which
states:
“If, on or after the appointed day (September 1, 1965), any person not being a
member of the Institute practises as an Accountant, he shall be guilty of an
offence”.
However, a member of the Institute is not allowed to set up a public practice
as an accountant until he has applied for, and has been granted a licence to
practise by the Council, and a member is not eligible for this licence until he
has, for a continuous period of thirty months before or after or partly before
and partly after becoming a member of the Institute, been employed in a
responsible accountancy position in the office of a qualified accountant in
public practice in Nigeria or elsewhere (Membership Rules 12 and 13 made
in pursuance of Section 15(2)(d) and (e) of the Act).
8.
ADVERTISEMENTS FOR BUSINESS
Subject to the guidance which follows a member may seek publicity for his or
her services, achievements and products and may advertise his services,
achievements and products in any way consistent with the dignity of the
profession in that he should not project an image inconsistent with that of a
professional person bound to high ethical and technical standards.
9.
THE LIBRARY
The Institute’s Library caters for both members and students. The Library at
the Secretariat at Plot 16 Idowu Taylor Street, Victoria Island, Lagos caters
for the reading, lending and reference needs of members, while the Students’
Library is located at the Institute’s Secretariat Annex at No. 82, Murtala
Muhammed Way, Ebute-Metta, Lagos. Continuous efforts are being made by
the Council from time to time to satisfy fully the diverse interests of the
members and students. Enquiries should be directed to the Librarian at the
Victoria Island Office.
10.
DISTRICT SOCIETIES
There are DISTRICT SOCIETIES of members of the Institute with
headquarters in some principal towns throughout the country and in London.
The principal objectives of the District Societies are to avail members the
opportunity of extra professional and social activities and assist potential
accountants in their endeavour towards membership of the Institute.
11.
PUBLICATIONS
The Institute publishes the following for the benefit of members, students and
the general public:
7
12.
(a)
“Membership Year Book”, containing lists of members and other
general information about the Institute
(b)
“The Nigerian Accountant”, the official journal of the Institute,
containing authoritative articles on accountancy and related fields
(c)
“ICAN News”, the official journal for students of the Institute
(d)
“Pathfinder”, published after each examination on the suggested
solutions to the preceding examinations.
(e)
“Members’ Handbook” which is a compendium of the Institute’s
constitutional, ethical and legal provisions and Accounting, auditing
and reporting standards.
TRAINING SCHEMES
(i)
DEFINITION OF TRAINING
Training for the purpose of the Institute’s membership means full time
assignment on a work of an approved accounting nature either in a
professional office, commerce, industry, government or a full time/part
time study in an accredited institution.
However, accounting experience acquired before a candidate attains
the minimum educational level required for registration would not be
recognised, but only the practical experience acquired by the
candidate as from the date of registration as a student.
(ii)
APPROVED WORK OF ACCOUNTING NATURE
An accounting duty is deemed to be approved when such a duty is
being supervised by a Chartered Accountant member of the Institute or
being subjected to regular audit by a professional firm of Chartered
Accountants in Nigeria.
In the Civil Service, however, the supervision by a Chartered
Accountant member of the Institute is not strictly necessary (Civil
Service accounting systems throughout the Federation having been
recognised as providing adequate training ground for accountants in
the Public Sector).
(iii)
RECOGNISED TRAINING CENTRES
The Institute attaches considerable importance to practical training and
students are required to acquire their practical experience in
Recognised Training Centres (RTC).
8
The Institute recognises for this purpose:
(a)
(b)
(c)
Approved service under a practising member of the Institute.
Employment in the office of a practising accountant, for
example, as an audit clerk.
Employment in the accounting or finance department of
industrial or commercial undertakings, parastatals and the
Public Service.
If a candidate wishes to train otherwise than in a Recognised Training
Centre, his particular employment has to be approved by the Council
as providing acceptable experience. For this purpose, he has to give
precise details of the nature of his work together with a certificate from
a senior officer of the organisation (who has to be a member of the
Institute) stating that he will, during the course of his studentship,
obtain experience of adequate scope and variety.
The period of practical experience sufficient for a candidate to be
accomplished as an accountant depends on the relevance of his basic
qualifications on registration. This is expected to be not less than 24
months practical training whilst those entering with non-accounting
qualifications will require 42 – 48 months.
13.
PRACTISING LICENCE
The licence to practice will be issued only to those candidates who have been
trained in professional offices and have acquired the minimum practical
training as stated in paragraph 7 above. However, for those who qualify
outside professional offices/firms, such practising experience could be
acquired after qualifying as an accountant and the minimum period of postqualification will not be less than 30 months.
14.
SECRETARIAT
The Institute’s Secretariat is
located at:
For those submitting their completed
forms by hand or making enquiries,
please call at our Secretariat Annex.
Plot 16, Idowu Taylor Street
Victoria Island
P.O. Box 1580
(a) No. 82, Murtala Mohammed Way,
Lagos, Nigeria
Opp. Denton Police Station
Tel: (234) (01) 2622394 2617638,
Tel: 234: 7740627, 4705336.
2614235
Ebute-Metta
Fax: (234) (01) 2610304
ICAN Lagos Offices & District
E-Mail: Info.ican@ican.org.ng
Societies.
Website: www.ican-ngr.org
(b) Liaison offices
(c)
District Societies
All enquiries should be directed to the Registrar/Chief Executive.
9
PART TWO
15.
STUDENTSHIP REGISTRATION AND TRAINING
15.1
APPROVED QUALIFICATIONS FOR REGISTRATION
In order to register as a student with the Institute, an applicant must hold a
qualification not below University degree or its equivalent.
The Council has accepted the following qualifications for the purpose of entry
requirements:
(a)
The degree of any University or Higher National Diploma of any Polytechnic
recognised by the Council.
(b)
Any other qualification hereafter to be approved by the Council.
Approved meanwhile are:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vi)
(vii)
(viii)
(ix)
15.2
The final examination of the Institute of Chartered Secretaries and
Administrators;
The final examination of the former Corporation of Secretaries;
The final examination of the Association of International Accountants;
The final examination of the Chartered Institute of Bankers of Nigeria;
The final examination of the Chartered Institute of Stockbrokers;
The final examination of the Chartered Institute of Taxation of Nigeria
The final examination of the Association of Accounting Technicians
U.K.;
The final examination of the Association of National Accountants of
Nigeria (ANAN);
Executive Management Accountancy (Federal Treasury Training
School, Stage III)
The final ATS Examination of the Institute of Chartered Accountants of
Nigeria;
APPLICATION FOR REGISTRATION
Application for registration as a student must be made on the prescribed form
purchased from the Institute which requires an undertaking on the part of the
applicant to abide by the rules and regulations laid down by the Council from time to
time. Every applicant will be required to produce satisfactory evidence of his name,
age and character together with certified photocopies of educational certificates and
two certified passport size photographs.
The Council reserves the right to grant or refuse any application or to terminate the
registration of a student. Applicants must comply with the conditions set forth and
must pay the registration fee in force at the date of application. If the application to
register is unsuccessful the registration fee is not refundable.
10
The annual subscription for successful applicants becomes payable immediately
upon registration for the year of registration and thereafter on 1 st January of each
year of registered studentship.
15.3
CONDITIONS TO BE SATISFIED
Every applicant for registration as a student must satisfy the Council that:
(a)
(b)
(c)
He is not less than 16 years of age
He possesses the basic educational qualifications set out above; and
He is a fit and proper person to be registered.
11
PART THREE
16. PROFESSIONAL EXAMINATIONS
16.1 STRUCTURE OF THE SYLLABUS
The professional examination of the Institute consists of the following five levels: Foundation,
Intermediate, Professional I, Professional II and Professional III.
OLD SYLLABUS
NEW SYLLABUS
FOUNDATION
FOUNDATION
Module A
1.
2.
3.
Accounting Framework
Economics
Law I
1.
2.
3.
Fundamentals of Financial Accounting
Quantitative Analysis
Economics
Module B
4.
5.
6.
Quantitative Analysis
Law II
Management
INTERMEDIATE
7.
8.
9.
10.
Financial Accounting I
Cost Accounting
Auditing
Taxation
INTERMEDIATE
4.
5.
6.
7.
Cost Accounting
General Principles of Law
Principles and Practice of Auditing
Management
PROFESSIONAL EXAMINATION I
8.
9.
10.
11.
Financial Accounting I
Taxation
Management Information Systems
Business Law
PROFESSIONAL EXAMINATION I
PROFESSIONAL EXAMINATION II
11.
12.
13.
14.
12.
13.
14.
15.
Financial Accounting II
Management Information Systems
Public Sector Accounting and Finance
Management Accounting
Financial Accounting II
Management Accounting
Public Sector Accounting and Finance
Business Communication and
Research Methodology
PROFESSIONAL EXAMINATION II
PROFESSIONAL EXAMINATION III
15.
16.
17.
18.
16.
17.
18.
19.
Financial Reporting and Audit Practice
Corporate Finance and Financial Strategy
Tax Management and Fiscal Policy
Multidisciplinary Case Study
12
Financial Reporting and Audit Practice
Strategic Financial Management
Tax Management and Fiscal Policy
Multidisciplinary Case Study
16.2
DATES OF EXAMINATIONS
The examinations are normally held twice each year in May and November and, at
present, at the following centres: Aba, Abakaliki, Abeokuta, Abuja, Ado-Ekiti, Akure,
Asaba, Benin-City, Calabar, Enugu, Ibadan, Ilesa, Ilorin, Jos, Kaduna, Kano, Lagos,
Lokoja, London (UK), Maiduguri, Makurdi, Minna, Ogbomoso, Onitsha, Owerri, Port
Harcourt, Sokoto, Umuahia, Uyo, Warri, Yenagoa and Yola.
At the discretion of the Council, examinations may be arranged at centres other than
those specified above.
16.3
CLOSING DATES OF ENTRIES
The closing date for the May Examinations is 31st March and that of November is
30th September.
16.4
EXAMINATION ENTRY
No person may enter for any of the Institute’s examinations unless he has been
registered as a student of the Institute and has paid the required annual subscription
and examination entry fees in force at the date of entry.
16.5
EXAMINATION RESULTS
The result of the examination will be communicated by post, or through the
Institute’s website to each candidate, but further correspondence relating to
individual results cannot be entertained. No information as to individual marks can
be given.
16.6
CREDIT SYSTEM
FOUNDATION, INTERMEDIATE, PROFESSIONAL LEVELS I & II
Candidates writing the above stated levels of the Examination will be CREDITED for
every single subject passed in the first instance and subsequently.
PROFESSIONAL LEVEL III
Candidates are expected to pass at least 2 papers at first sitting in order to obtain
credits in the papers passed. The remaining TWO papers could be passed and
credited at one per sitting.
NOTES:

Candidates are expected to register and attempt all papers at a level. No
candidate will be allowed to apply to sit for one paper unless the other papers
have been previously passed or exempted.

Candidates are also expected to complete examination at a lower level before
attempting the higher level.

CANDIDATES ARE NOT ALLOWED TO COMBINE TWO LEVELS of the
examinations. Candidates are expected to complete all levels of the institute’s
examinations within 10 YEARS of registration as a student of the institute.
13
16.7
PASS MARK
The pass mark of the Institute’s examination is 50%.
16.8
CONVERSION ARRANGEMENTS
Examinations on the basis of the new syllabus will commence in May 2005.
Pursuant to the implementation of the credit system, at the November 2004
examination, all candidates will be converted to the new syllabus. Each candidate
will be credited with those subjects passed provided he or she passes a minimum of
two subjects at that level. Only the new syllabus will be examined in May 2005
and thereafter. Except where specifically provided for in the arrangement, no
candidate may proceed to the next level of examination without successfully
completing all the subjects in the preceding level.
16.8.1Conversion from the old to the new syllabus is as stated hereunder:
OLD SYLLABUS
OLD FOUNDATION
Candidates who successfully
completed the old Foundation A
and B examinations.
Candidates who successfully
completed the old Foundation A
examination only.
Candidates who successfully
completed the old Foundation B
examination only.
Candidates who passed two
subjects of the Old Foundation A
but have NOT completed the
module at the November 2004
examination
Candidates who passed two
subjects of the Old Foundation B
but have NOT completed the
module at the November 2004
examination
Candidates taking
referred
papers at the Foundation A in
November 2004.
Candidates taking referred
papers at the Foundation B in
November 2004.
Candidates who failed the old
Foundation examination in
November 2004.
NEW SYLLABUS
NEW FOUNDATION AND INTERMEDIATE
TO WRITE
CREDITED WITH
Papers 4 and 6 i.e. Cost
All subjects of new Foundation plus
Accounting and Principles
General Principles of Law and
& Practice of Auditing at
Management at the Intermediate
the New Intermediate level level; and Business Law at P.E. I level
Paper 2 i.e. Quantitative All subjects of new Foundation except
Analysis at the new Quantitative Analysis plus General
Foundation
Principles of Law at the Intermediate
level
Papers 1 and 3 i.e.
Quantitative Analysis at the new
Fundamentals of Financial Foundation, Management at the
Accounting and
Intermediate and business Law at the
Economics at the new
new P.E. I
Foundation
Subject failed
Subjects passed or their equivalents
in the new syllabus
Subject failed
Subjects passed or their equivalents
in the new syllabus
Subject failed
Subjects previously passed or their
equivalents in the new syllabus
Subject failed
Subjects previously passed or their
equivalents in the new syllabus
The new Foundation from
May 2005 examination.
NIL
14
16.8.2
OLD INTERMEDIATE
EXAMINATION
NEW INTERMEDIATE AND PROFESSIONAL
EXAMINATION I
TO WRITE
CREDITED WITH
Candidates who passed the old
All Subjects of new
Intermediate Examination at the Paper 10 i.e. Management Foundation, Intermediate and
November 2004.
Information Systems at the P. E. I. Levels except paper
New P.E.I level
10 i.e. Management
Information Systems
Candidates who failed the old Papers 4 and 6 i.e. Cost
All subjects of new
Intermediate
examination
in Accounting and Principles
Foundation plus General
November 2004.
and Practice of Auditing at
Principles of Law and
the new Intermediate level
Management at the
Intermediate level; and
Business Law at P.E. I level.
Candidates to take referred
The referred subjects and
All Subjects of new
papers in November 2004.
paper 10 i.e. Management
Foundation, Intermediate and
Information systems.
P. E. I. Levels except the
referred subjects and paper
10 i.e. Management
Information Systems
16.8.3
OLD PROFESSIONAL
EXAMINATION I
Candidates who were successful
in the old Professional
Examination I in November 2004.
Candidates who failed the old
Professional Examination I in
November 2004
Candidates taking referred papers
in November 2004
NEW PROFESSIONAL EXAMINATION I AND II
TO WRITE
Paper 15 i.e. Business
Communication and
Research Methodology
of the new P.E. II
Paper 10 i.e.
Management
Information Systems at
the New P.E.I level
The referred subjects
and paper 15 at the
new P.E. II i.e.
Business
Communication and
Research Methodology
15
CREDIT WITH
All subjects in the new
Foundation, Intermediate, P. E. I
and P.E. II except paper 15 i.e.
Business Communication and
Research Methodology
All subjects in the new
Foundation, Intermediate and P.E.
I except paper 10 i.e.
Management Information Systems
All subjects in the new
Foundation, Intermediate, P. E. I
and P.E. II except the referred
subjects and paper 15 i.e.
Business Communication and
Research Methodology
16.8.4
OLD PROFESSIONAL
EXAMINATION II
NEW PROFESSIONAL EXAMINATION III
TO WRITE
All subjects of the new
Professional
Examination III
The referred subjects or
their equivalents in the
new syllabus
Candidates who failed the old
Professional Examination II in
November 2004.
Referred candidates in the old
Professional Examination II who
have a reference in the November
2004 examination.
Referred candidates in the old
Professional Examination II who
have one chance remaining after
the November 2004 examination.
CREDITED WITH
All subjects of the new
Foundation, Intermediate,
P.E.I and P.E. II
All subjects of the new
Foundation, Intermediate,
P.E.I, P.E. II and P.E. III
except the referred subjects
All subjects of the new
Foundation, Intermediate,
P.E.I, P.E. II and P.E. III
except the referred subjects
The referred subjects or
their equivalents in the
new syllabus
17. EXAMINATION TIME-TABLE
DAY
TUESDAY
WEDNESDAY
THURSDAY
18
INTERMEDIATE
Cost Acctg.
P.E.1
P.E. II
P.E. III
9.00 a.m.- 12.00
noon
FOUNDATION
Fund. of Fin.
Acctg.
Fin.Acctg. I
Fin. Accctg. II
Fin.
Reporting &
Audit Prac.
2.00 p.m. – 5.00 p.m.
Economics
Management
M.I.S.
Tax Mgt. &
Fiscal Policy
9.00 a.m. – 12.00
noon
Quantitative
Analysis
Principles &
Practice of
Auditing
Taxation
Bus. Comm.
& Research
Methodology
Mgt. Acctg.
9.00a.m. - 3.30 p.m.
_
General
Principles of
Law
-
-
Public Sector
Acctg. &
Finance
-
Strategic Fin.
Mgt.
MultiDisciplinary
Case Study
EXAMINATION QUESTION FORMAT
The questions for each subject shall consist of two parts: A & B.
Section A: Shall comprise multiple-choice and short-answer questions. Questions in
this section shall cover the entire area of the subject syllabus. All the questions in this
section shall be compulsory. This section shall make up 40% of the total marks.
Section B: Shall comprise of more involving questions. The questions will carry
equal marks. Candidates will be required to answer four out of six questions in this
section. However, in subjects with simple cases, the case question in Section B will
be compulsory. This section shall make up 60% of the total marks.
16
19.
ABSENCE FROM AN EXAMINATION
Examination entries cannot be withdrawn after the closing date in any
circumstances. The fees paid for an examination will not be refunded or
transferred to subsequent examination, if a candidate decided not to attend,
or is unable to attend the examination.
20.
MISCONDUCT IN AN EXAMINATION
The examinations regulations prohibit a student from:
(a)
(b)
(c)
(d)
taking into the examination room or possessing, while in that room, any
books, notes or other materials except those which have been
authorised in the Examination Attendance Docket;
aiding or attempting to aid another candidate, or obtaining or
attempting to obtain aid from another candidate;
refusing to obey any instruction from the Examination Supervisor or
Invigilators;
giving false or misleading information to the Examination Supervisor.
The Supervisor is empowered to discontinue the examination of any
candidate suspected of mis-conduct and to require him/her to leave the
examination room.
Any student who fails to comply with the above regulations may be liable to
such penalties as the Council of the Institute may determine.
17
20.
20.1
EXEMPTION GUIDELINES
Academic Qualifications
Exemption From
A.
B.Sc./HND (Accounting) obtained from
Accredited institutions in Nigeria.
All Subjects in Foundation level, Intermediate and
P.E. I
B.
B.Sc./HND (Accounting) obtained from
recognized institutions in Nigeria but not yet
accredited by the Institute
All subjects in Foundation and Intermediate
C.
B.Sc./B.A./HND (Accounting) obtained from
foreign recognised institutions
All Subjects in Foundation and Intermediate subject
to acceptable transcript
D.
M.Sc./Ph.d (Accounting) obtained from
recognized institutions in addition to B.Sc./HND
in any other related discipline
All Subjects in Foundation and Intermediate
E.
Ph.d (Accountancy)
All subjects in Foundation, Intermediate, P. E. I and
Business Comm. & Research Methodology in P. E. II
F.
B.Sc. Economics
Quantitative Analysis and Economics in Foundation
and Management in Intermediate
B.Sc. Actuarial Science
Quantitative Analysis and Economics in Foundation,
Management and General Principles of Law in
Intermediate
B.Sc. Management
Quantitative Analysis and Economics in Foundation,
Management and General Principles of Law in
Intermediate
B.Sc./HND Insurance
Quantitative Analysis and Economics in Foundation,
Management and General Principles of Law in
Intermediate
B.Sc. Management Studies
Quantitative Analysis and Economics in Foundation,
Management and General Principles of Law in
Intermediate
B.Sc/HND Business Administration
Quantitative Analysis and Economics in Foundation,
Management and General Principles of Law in
Intermediate
B.Sc./HND Marketing
Quantitative Analysis and Economics in Foundation,
Management and General Principles of Law in
Intermediate
B.Sc./HND Banking & Finance
All Subjects in Foundation and General Principles of
Law and Management in Intermediate
MBA in addition to B.Sc./HND in NonAccounting discipline
All Subjects in Foundation and General Principles of
Law and Management in Intermediate
B.Sc. (Ed.) Accounting or B.Ed.
Business Education (Accounting Option)
All Subjects in Foundation and General Principles of
Law and Management in Intermediate
G.
ATS II (Old Syllabus)
All Subjects in Foundation and General Principles of
Law in Intermediate
H.
ATS III (New Syllabus)
All Subjects in Foundation & Intermediate
and Business Law in P. E. I
18
20.2
SUBJECT BY SUBJECT EXEMPTION
FOUNDATION
B.Tech. Project Management
EXEMPTION FROM FOUNDATION LEVEL ONLY
Economics, Q/A, Management
B.Sc/HND Statistics/Econs.
Economics, Quantitative Analysis
HND Agric/Econs
Economics, Q/A, Management
LL.B
Principles of General Law & Business Law
B.Sc/HND Estate Mgt
Quantitative Analysis
B.Sc/HND Biology
Quantitative Analysis
B.Sc/HND Chemistry
Quantitative Analysis
B.Sc/HND BioChemistry
Quantitative Analysis
B.Sc/HND Statistics
Quantitative Analysis
B.Sc/HND Engineering
Quantitative Analysis
B.Sc/HND Chemistry Engineering
Quantitative Analysis
B.Sc/HND Town & Regional Planning
Quantitative Analysis
B.Sc/HND (Ed) Chemistry
Quantitative Analysis
B.Sc/HND Tech. Computer
Quantitative Analysis
B.Sc/HND Maths
Quantitative Analysis
B.Sc/HND Industrial Maths
Quantitative Analysis
B.Sc/HND Industrial Chemistry
Quantitative Analysis
B.Sc/HND Agric.
Quantitative Analysis
B.Sc/HND Building Technology
Quantitative Analysis
B.Sc/HND Petroleum Engr
Quantitative Analysis
B.Sc/HND Elect. (Elect.)
Quantitative Analysis
B.Sc/HND (Ed.) Chem.
Quantitative Analysis
B.Sc/HND Applied Maths
Quantitative Analysis
B.Sc/HND Applied Chem.
Quantitative Analysis
B.Sc/HND Applied Physics
Quantitative Analysis
Public Admin – Subject to transcript
Quantitative Analysis
B.Sc Bus. Edu – Subject to transcript
Quantitative Analysis
19
0.4
20.3
Professional Qualifications
Qualifications
ICAN Exemptions
A.
ACIB (Nigeria)
B.
ACIB (London)
C.
ACIS
D.
ACS
E.
ACII
F.
ACTI
H.
AIA (Final) 1994 to date
All Subjects in Foundation, Intermediate except
Principles and Practice of Auditing and Financial
Accounting I in P. E. I
All Subjects in Foundation, Intermediate except
Principles & Practice of Auditing and Financial
Accounting I in P.E. I
All Subjects in Foundation and Intermediate
Except Principles & Practice of Auditing
All Subjects in Foundation, Management and
General Principles of Law in Intermediate
Quantitative Analysis and Economics in
Foundation and General Principles of Law in
Intermediate
All Subjects in Foundation, Taxation in P.E. I.
All Subjects in Foundation, Intermediate,
P. E. I and P. E. II
AAT (U.K)
All subjects in Foundation and Intermediate
I.
AIA Pre-1994
J.
*ACA (Ghana)
K.
ANAN
All subjects in Foundation, Intermediate except
Principle and Practice of Auditing and Financial
Accounting I in P. E. I
All Subjects in Foundation, Intermediate,
P. E. I and P. E. II
All Subjects in Foundation and Intermediate
L.
Executive Management Accountancy
(Federal Treasury Training School
Starting from 1987)
ICAEW
ACCA
CPA
CIMA
CIPFA
ICAS
ICAI
M.
All Subjects in Foundation & Intermediate
All Subjects in Foundation, Intermediate, P.E. I,
P. E. II & P. E. III – subject to undergoing
Intensive Course for special candidates
20.4 LECTURERS IN HIGHER INSTITUTIONS
Lecturers in Accounting Departments with B.Sc/HND (Accounting) in all accredited institutions
shall be given the same level of exemption/concession granted to graduates of Recognised
Training Institutions (RTI’s) regardless of date of qualification.
20
PART FOUR
1.
EXAMINATION SYLLABUS
1.1
FOUNDATION
1.1.1
PAPER 1:
A.
FUNDAMENTALS OF FINANCIAL ACCOUNTING
AIM
To examine the candidates’
B.

knowledge and application of the fundamental concepts, principles, process and regulatory
framework employed in keeping financial records

ability to prepare financial statements for management use, for sole trader, not-for-profit
organizations, partnerships, and limited liability companies.
LINKAGES
This paper is linked to papers 4, 5, 6, 8, 9, 11, 12, 13, 14, 16 & 17
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer questions covering the
entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to answer four.
C.
CONTENTS
1.
2.
THE NATURE AND PURPOSE OF ACCOUNTING
(10%)
(a)
History and development of accounting
(b)
Role of an Accountant in an organisation
(c)
Nature, principles and scope of accounting; the role of financial accounting, cost and
management accounting, financial management, auditing and taxation in the
management of an organization
(d)
The users of financial statements; their information requirements, objectives, adequacy
and the usefulness of those financial statements.
THEORY OF ACCOUNTING STANDARDS AND GUIDELINES (IAS AND SAS) (15%)
(a)
The nature and role of bodies which set accounting standards and guidelines.
(b)
Accounting Standards:
(i)
Disclosure of accounting policies (SAS I & IAS 1)
(ii)
Information to be disclosed in financial statements (SAS 2 & ) IAS 5)
(iii)
Accounting for property, plant and equipment (SAS 3 & IAS 16)
21
3.
(iv)
Accounting for depreciation (SAS 9 & IAS 4)
(v)
Accounting for stocks (SAS 4 & IAS 2)
(vi)
Extra-Ordinary, Exceptional and Prior-Year Adjustments (SAS 6 &
IAS 8).
ACCOUNTING PROCESSES (25%)
(a)
(b)
Principles and practice of double-entry book-keeping:
(i)
forms and contents of books of accounts (manual and
computerized)
(ii)
books of prime entry, including journals
(iii)
sales ledger and purchases ledger
(iv)
cash book and petty cash book
(v)
general ledger
Trial balance:
(i)
its scope and use
(ii)
errors and correction of errors
(iii)
suspense account
(c)
Capital and revenue items and their treatment in final accounts
(d)
Accounting treatment of:
(i)
Fixed assets:
-
tangible and intangible
-
depreciation; reasons for and methods of providing for
it.
-
fixed assets register.
(ii)
Current assets:
- stocks; valuation for financial accounting purposes
- debtors; bad debts and provision for doubtful debts
- cash
- bank balances
(iii)
Liabilities
(iv)
Provisions and reserves
(v)
Contingencies
22
4.
5.
6.
(e)
Control accounts
(f)
Bank reconciliation statements
(g)
Value Added Tax (VAT)
(h)
The use of computer software and packages in the following areas:
-
sales and purchases ledger
-
control accounts
-
payroll
-
inventory
-
bank reconciliation
PREPARATION OF FINAL ACCOUNTS FOR SOLE ROPRIETORSHIP
AND NOT - FOR - PROFIT ORGANISATIONS (15%)
(a)
Manufacturing, trading, profit and loss accounts, and balance sheet
for sole-proprietorship
(b)
Preparation of income and expenditure account, and balance sheet
or statement of affairs) for not-for-profit organization.
(c)
Preparation of final accounts from incomplete records
PARTNERSHIP ACCOUNTS (20%)
(a)
Formation of partnership
(b)
Partnership agreement
(c)
Preparation of final accounts
(d)
Admission, retirement, removal and death of a partner
(e)
Change of interest
(f)
Revaluation of assets and goodwill
LIMITED LIABILITY COMPANIES ACCOUNTS (15%)
(a)
Nature of limited liability companies
(b)
Raising of capital
(c)
Statutory books and records
(d)
Methods of establishing a company
(e)
(i)
Establishment of new business
(ii)
Conversion of sole proprietorship to limited liability company
(iii)
Conversion of partnership to limited liability company
Issue and redemption of shares or debentures (excluding sinking
fund)
23
(f)
Preparation of first financial statements highlighting the treatment of
pre-and post- incorporation items
(g)
Final accounts for management use
(h)
Treatment of dividends and taxation
D.
CONTACT HOURS 60
E.
RECOMMENDED TEXTS
Anao, A.R., An Introduction to Financial Accounting, Longman.
Asaolu, Ayodele, Modern Book-Keeping and Accounts, Gbabeks Publishers
Limited, Ibadan
Dodge, R. Foundation of Business Accounting, Chapman & Hall
Inanga, E. L. Principles of Accounting, Heinemann
Spicer & Pegler, Book-Keeping & Accounts
Walgenabach, P. N.,Financial Accounting: An Introduction, Harcourt Brace
Jovanovich
Welsch, G. A., and Short, D. G., Fundamentals of Financial Accounting,
Richard D. Irwin.
Wood, F. I., Business Accounting, Pitman
24
21.1.2
PAPER 2:
A.
QUANTITATIVE ANALYSIS
AIM
To examine candidates’:
B.

familiarity with basic concepts and processes in statistics, business
mathematics
and operational research

competence in the collection, collation, manipulation and presentation of
statistical data for decision making

familiarity with different methods of presenting data designed to enhance
understanding

ability to employ suitable mathematical models and techniques to solve
problems
involving rational choice among alternatives
LINKAGES
This paper is linked to papers 3, 4,10, 12,13, 15, 17, 19.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are
answer four.
C.
short
expected to
CONTENTS
1. STATISTICS (40%)
(a)
Handling statistical data:
(i)
Methods of collecting statistical data:
-
Questionnaire/schedule, interview, observation, mailing
(ii)
Classification of data:
by types: (numeric and non numeric)
by source (origin): Primary and Secondary
by use: agricultural, demographic, health, education,
power and energy.
(iii)
Presentation of data:
25
-
(iv)
-
(c)
-
charts: bar charts (simple, component, percentage
component and multiple), Pie chart, Z chart, Gantt-chart
-
graphs: histograms, polygon, ogives, lorenz – curve
Sampling:
-
(b)
tabular presentation:
frequency table and cross
tabulation
characteristics of a table: title, heading, foot-note, source
e.t.c.
Purpose of sampling
Methods of sampling: simple random sampling, stratified,
systematic, quota and multi-stage.
Advantages and disadvantages of each.
Measures of location:
(i)
Measures of central tendency
mean (arithmetic, geometric and harmonic)
other measures: median and mode
(ii)
Measures of partition:
percentiles, deciles and quartiles
Measures of variation/spread/dispersion:
(i)
range, mean deviation, mean absolute deviation, variance and
standard deviation
(ii) co-efficient of variation
(iii) skewness
(d)
Measures of relationships:
(i)
Correlation (Linear)
- meaning and purpose
- scatter diagram
- types of correlation: positive, zero and negative
(ii)
Correlation coefficient:
- meaning
- types: person product moment correlation, spearman’s rank,
correlation coefficient
- determination and interpretation of correlation coefficients.
(iii)
Regression Analysis (Linear):
26
(e)
meaning and purpose
fitting of regression line by graphical method and
normal equation / least squares method
interpretation of regression constant and regression
coefficient
use of regression line in forecasting and its limitations
coefficient of determination: meaning and interpretation
interpretation
Time series analysis:
(i)
(ii)
(iii)
(iv)
Meaning and purpose of time series
Time series plot
Basic components: trend, seasonal, cyclical, irregular
Methods of estimating components:
-
(v)
trend: graphical, moving averages, least squares
and semi averages
seasonal indices: average percentage, moving
average, link relative, ratio to trends.
Use of time series components for forecasting
(f)
Index Numbers:
(i)
Meaning and purpose
(ii)
Problems associated with the construction of index
numbers
(iii)
Unweighted indices: simple aggregate index, price
relative
(iv)
Unweighted indices: Laspeyre , Paasche, Fisher and Marshall
Edgeworth
(v)
Applications of index numbers to business analysis.
(g)
Probability
(i)
Concept and meaning: random experiment, sample space,
sample point, events e.t.c.
(ii)
Measurement/determination of simple probability
directly sample
(iii)
Additive law of probability/mutual exclusive events
(iv)
Multiplication law and conditional
probability/independent events
(v)
Discrete probability distribution and mathematical
expectation
(vi)
Permutation and combination; elementary treatment
only
(vii) Common probability distribution:
Binomial, Poisson and Normal together with their
applications in Business.
(viii) Approximation of Binomial by Normal, Binomial by Poisson and
their applications.
27
(h)
Sampling distribution of sample means, and single proportions
including their standard errors.
(i)
Estimation and significance testing:
(i)
Point estimation: mean, proportion and standard error
(ii)
Interval Estimation:
- confidence interval concept and meaning
- confidence interval for single population mean and single
population proportions.
(j)
2.
(iii)
Hypothesis:
- concept and meaning of hypothesis
- types of hypothesis: null hypothesis and alternative
hypothesis.
(iv)
Type I and type II errors:
- Significance level
(v)
Testing of hypothesis about single population mean and single
population proportions for small and large samples.
Applications of (a) to (i) to data collection, analysis and interpretation in
relationship to real life/business situations.
BUSINESS MATHEMATICS (25%)
(a)
Set:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(b)
Concept and definition
Types of sets: null, subset, finite, infinite universal and equal
sets.
Cardinality: number of elements in a set and number of all
possible sub-sets in a set.
Operations: union, intersection, difference and complement.
Venn diagram: using Venn diagram in set theory.
Applications of set theory to solving business related problems
Functions:
(i)
Definition of function
(ii)
Types of functions: Linear, quadratic exponential, logarithmic
and their evaluation including graphical representation.
(iii)
Functional equations: Linear, simultaneous, quadratic and their
solutions including graphical methods.
(iv)
Sample linear inequalities invaluable not more than two
variables graphical approach
(v)
Applications involving:
- cost, revenue and profit functions
- break-even analysis
- determination of break-even point in quantity and value.
- significance of break-even point
28
(c)
Matrix:
(i)
Arrays of numbers
(ii)
Meaning of a matrix
(iii)
Types of matrices: identity, null, square, diagonal, symmetric
and skew symmetric, triangular matrix (upper and lower).
(iv)
Basic operations with matrix:
Addition, subtraction, multiplication of matrices and conditions
under which these are possible; transpose of a matrix.
(v)
Meaning of determinant and its evaluation.
(vi)
Minor, cofactor, matrix of factors and adjoint matrix.
(vii) Inverse of a square matrix: Its definition and determination
(other methods in addition to adjoint approach may be used.
Also, limited to at most 3 by 3 matrix).
(viii) Solution of systems of linear equations including Cramer’s rule.
(ix)
Applications of matrices to solving business related problems.
(d)
Mathematics of Finance:
(i)
Sequence and series:
- concept and meaning
- types: arithmetic progression and its sum; geometric
progression and its sum; sum to infinity of a geometric progression.
- application in business
(ii)
Simple and compound Interests:
- present value simple amount
- present value of compound amount in order to:
- determine the consumers’ and producers’ surpluses.
- find total functions from marginal functions.
(iii)
Annuities:
- types of annuities: ordinary and annuity due
- sum of an ordinary annuity (sinking funds).
- present value annuity
Net Present Value (NPV)
Internal Rate of Return (IRR).
(iv)
(v)
(e)
Differentiation:
(i)
(ii)
(iii)
(iv)
(v)
(f)
Concept and Meaning:
Measures of rate of change as derivative or slope; measure of
marginal.
Rules for differentiating the following functions: polynonial,
product, quotient, function of function, implicit function,
exponential and logarithmic functions.
Second-order derivative.
Application of a differentiation: finding marginals, elasticity,
maximum and minimum values.
Simple partial differentiation of first order.
Integration:
29
(I)
(ii)
(iii)
(iv)
3.
As a reverse of differentiation
Rules for integrating polynomial and exponential functions.
Indefinite, determination of constant of integration and definite
integral.
Application of integration: determination of consumers’ and
produces surpluses.
OPERATIONS RESEARCH (35%)
(a)
Introduction to operational research
(I)
Concept and meaning
(ii)
Main stages of operational research (OR) project
(iii)
Relevance of operational research in business
(b)
Decision theory:
(i)
Types of decision situation:
- certainty, uncertainty and risk.
(ii)
(iii)
(iv)
Elements of decision:
- Under certainty: state of nature and outcome
- Under uncertainty: state of nature, event that happened
after, outcome and risk.
Techniques of decision theory
- Techniques used for uncertainty: minimax, maxmin, maxmin
regret criterion.
- Techniques used for risk: expected monetary value (with
perfect and imperfect information)
Cost of perfect information
(c)
Linear Programming
(i)
Concept and meaning (as a resource allocation tool).
(ii)
Underlying basic assumptions.
(iii)
Problem formulation in linear programming.
(iv)
Methods of solution
- graphical methods (for 2 decision variables)
- simplex method (limited to three decision variables)
(v)
Interpretation of results:
- results from final tableau.
- results from simplex method, shadow price, marginal value
worth of resources.
- determination of dual/shadow costs.
(d)
Inventory and production control:
(i)
Meaning of an inventory
(ii)
Functions of inventory
(iii)
Inventory costs: holding costs, ordering costs, shortage costs,
cost of materials.
(iv)
General inventory models: deterministic and stochastic models;
periodic review system and re-order level system.
(v)
Basic Economic Order Quantity (EOQ) for deterministic
30
(vi)
model:
- assumptions of the model
- shortage and non-shortage allowed.
Applications of EOQ to Business.
(e)
Network analysis
(i)
Concept and meaning
(ii)
Network diagram
(iii)
Concept of the following terms:
- floats, slack, earliest time, latest time e.t.c.
(v)
Methods of network analysis
- critical path method (CPM): using floats and without using
floats; meaning of critical path and how to determine it.
- programme evaluation and review technique (PERT)
(f)
Replacement analysis:
(i)
Meaning and purpose
(ii)
Replacement of items that wear gradually.
(iii)
Replacement of items that fail suddenly.
(g)
Transportation Model:
(i)
Nature of transportation models .
(ii)
As special linear programming problems.
(iii)
Concept of balanced and unbalanced transportation
problems.
(iv)
Methods for solving transportation problems: Northwest Corner
rule, least cost, Vogel’s approximation method.
(v)
Test for optimality of the solution stepping stone method.
(vi)
Solving assignment problem as a special transportation
model.
(h)
Queuing Model:
(i)
Definition of a queue.
(ii)
Classes of queues.
(iii)
Simple queues and its characteristics; simple queue
formulae.
(iv)
Applications of queueing model in business.
(i) Markov Process:
- definition of Markov process
- meaning of transition matrix
- formulation of transition matrix
- equilibrum or long run situations for Markov process.
(j) Simulation
(i) Concept and meaning
(ii) Types / approaches
- Monte Carlo
- computer approach: To know how to use some packages on
simulation.
31
D.
CONTACT HOURS 90
E.
RECOMMENDED TEXTBOOKS
Adamu, S.O. and Johnson, T.L., Statistics for Beginners, Evans, Nigeria.
Inanga, E.L. and Osayimwese, I., Mathematics for Business, Onibonoje
Press
Lapin, L. L., Quantitative Methods for Business Decisions, Harcourt
Brace Jovanovich
Levin, R. I., et al, Quantitative Approaches to Management, McGraw
Hill
Lucey, T., Quantitative Techniques: An Instructional Manual, DPP
Publications Ltd.
Marsland, M.W., Quantitative Techniques for Business, Polytechnic
Sasieni, M. et al, Operational Research – Methods and Problems, New
York Wiley
Soyibo, A. and Adekanye, F., Linear Programming for Business and
Finance, F. & A. Publishers Ltd.
Thrikettle, G. L., Wheldon,
Business Statistics and Statistical Methods,
ELBS/MacDonald and Evans.
32
21.1.3 PAPER 3:
ECONOMICS
AIM
To examine candidates’:
B.

knowledge of economic concepts , principles and the dynamic forces which
underline rational choice and behaviour

understanding the features of the Nigerian environment in which individuals,
firms, government and other economic units operate

knowledge of the nature of Nigerian economic relations with other countries,
institutions and regional bodies.
LINKAGES
Economics forms the basis of understanding of other subjects in the entire syllabus
and is consequently linked to all of them.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to answer
four.
C.
CONTENTS
1.
ECONOMICS AND SOCIETY (5%)
(a)
(b)
2.
(c)
(d)
Economics and its scope
The concepts of scarcity, choice, scale of preference and opportunity
cost
Nature of the economic problem
The concept of an Economy, that is
(i)
Free Market Economy
(ii)
Centrally Controlled Economic/Command Economy
(iii)
Mixed Economy
(e)
Distinction between Microeconomics and Macroeconomics
THEORY OF VALUE (10%)
(a)
(b)
(c)
(d)
(e)
The concepts of demand and supply. Interrelation between demand
and supply
Factors affecting demand and supply
Distinction between movement along a demand/supply curve and
shifts in demand/supply curves
Exceptions to the laws of demand and supply
Price elasticity of demand and supply
33
(f)
(g)
(h)
3.
THEORY OF CONSUMER CHOICE/BEHAVIOUR (5%)
(a)
(b)
(c)
(d)
4.
Income and cross elasticity of demand and supply
Factors affecting elasticity of demand
The concept of equilibrium
The Marginal Utility Theory
The Indifference Curve Theory
Adjustment to Income and Price Changes (Income and Substitution
Effects)
Consumer surplus
THEORY OF PRODUCTION (10%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Concept of production and cost
The factors of production: land, labour, capital and entrepreneur
Average product and marginal product of a factor input
The short run and the long run in production analysis
Production possibility frontier
The law of diminishing returns
Constant returns to scale, increasing returns to scale, decreasing
returns to scale
(h) Returns to factors: wages, rent, interests and profits
(i) Economic rent, quasi rent
(j) Total cost, total fixed cost, total variable cost, average cost, average
variable cost, average fixed cost, including graphical representation.
(k) The concepts of total revenue, average revenue and marginal revenue
in production analysis.
5.
MARKET STRUCTURES (10%)
(a) The concept of market
(b) Price and output determination under conditions of perfect competition,
monopoly, monopolistic competition, monopsony, oligopoly and duopoly
(c) Price differentiation and price discrimination
(d) The conditions favourable for price discrimination
(e) The economic justifications for price discrimination
(f) Monopoly power and how it can be controlled
(g) Mergers and acquisitions, and their advantages and disadvantages
6.
INDUSTRY LOCATION (5%)
(a)
(b)
(c)
(d)
(e)
7.
Definition of industry
Location and localization of industry
Factors that influence location of industry with appropriate examples from the
Nigerian environment
Advantages and disadvantages of industrial concentration
Small firms and large firms and their advantages and disadvantages
MONEY AND BANKING (10%)
34
(a) The nature and function of money and credit
(b) The demand for and supply of money
(c) The functions of the Central Bank, Commercial Banks, Merchant Banks
Development Banks, Insurance Companies and other financial institutions
with reference to the Nigerian economy
(d) The money and capital markets and the roles of the Nigerian Stock
Exchange (NSE) and the Securities and Exchange Commission (SEC)
(e)
8.
ELEMENTS OF PUBLIC FINANCE (10%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
9.
The concept of public finance
The role of government budget in the economy
Sources of government revenue and the target of government
expenditures
Deficit spending and budgetary surplus and their effects on the economy
Forms and principles of taxation
The effect of taxation on prices, investment decisions and expected rates
of returns in the economy
Externalities - Divergences between Private and social costs and benefits
INFLATION AND UNEMPLOYMENT(5%)
(a)
(b)
(c)
(d)
(e)
10.
Government monetary and fiscal policies
Causes of Inflation
Types of Inflation
Inflation in Developed versus Developing Countries
Control of Inflation
Unemployment
(i)
Kinds of unemployment
(ii) The measurement of unemployment
(iii) Cures for unemployment
NATIONAL INCOME (10%)
(a) Definition of national income
(b) The income, output and expenditure methods of computing national income
(c) Problems of computing national income
(d) The use of national income accounting
(e) The concepts of consumptions, savings and investments in a Keynesian
macro-economic setting
(f) Factors that affect consumption, savings and investments
(g) The concept of the multiplier and the accelerator
11.
INTERNATIONAL TRADE (10%)
35
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
12.
Internal and international trade
The theory of comparative advantage as a basis of trade between countries
The advantages and disadvantages of international trade
Terms of trade and balance of payment
Foreign exchange, exchange rates, their nature, functions, determination
and the foreign exchange markets
Currency devaluation and currency depreciation
The case for and against protectionism
The concept and forms of economic integration
The activities of international institutions like IMF, IBRD, GATT/WTO
UNCTAD, ECOWAS, OPEC, ECA, EC.
ECONOMIC DEVELOPMENT AND GROWTH
(10%)
(a)
(b)
Theories of economic development and growth
Nature and scope of government intervention in the development
process
(c) Role of the private sector in the development process
(d) Role of international institutions in the development process
D.
CONTACT HOURS: 60
E.
RECOMMENDED TEXTBOOKS
Adebayo A. (1998), Economics: A Simplified Approach Volumes 1 & 2,
African International Publishing Ltd., Lagos
Lipsey,R.G.and Steiner, P.O., Economics, Harper & Row.
Nwankwo G.O., Basic Economics for West African Students, CUP
Ojo J.A.T. and Adewunmi, O., Banking and Finance in Nigeria, Graham Burn.
Olaloku F.A. et al , Structure of the Nigerian Economy, McGraw-Hill.
Truett, L.J. and Truet D.B., Economics, Times Mirror & Mosby College
Publishing
Umo J. U. (1986), Economics: An African Perspective, John West
21.2
INTERMEDIATE
21.2.1 PAPER 4
COST ACCOUNTING
36
A.
AIM
To examine candidates’:
B.

mastery of the concepts and principles of costing and its use in control
decisions in business and other activities

ability to use information and communication technology in dealing with
cost accounting problems and in preparation of reports

ability to analyse and predict cost behaviour as output and market
factors vary and the impact on profit

ability to apply appropriate methods and techniques in collecting,
measuring and reporting cost information relevant to business and
other activities

understanding the principles and procedures involved in budgeting and
budgetary control and their application.
LINKAGES
This paper is linked to papers 1, 2, 4, 5, 11, 13, 14, 15, & 18.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
C.
CONTENTS
1. INTRODUCTION TO COST ACCOUNTING (15%)
(a) Definition and purpose of cost accounting
(b) Classification of cost by functions, elements, responsibility,
definition and behaviour
(c) Materials accounting and control procedures including
(i)
Stock recording and Inventory control
(ii)
Procurement and pricing
(iii)
Methods of inventory valuation
(iv)
Just-In-Time purchasing and production
(d) Labour accounting and control procedures including
(i)
(ii)
(iii)
Basic methods of remuneration
General features of incentive schemes
Labour costing and labour cost control
37
(iv)
2.
(e)
Overhead Cost Accounting and control procedures including
(i) Overhead classification and analysis
(ii) Activity based Costing
(f)
Cost centre
(i) Selection and attributable costs
(ii) Product and department costs
(g)
Cost behaviour and cost estimation
COSTING METHODS (10%)
(a)
(b)
(c)
(d)
3.
Operation costing
Specific order costing; Job, batch, uniform and contract costing
including work-in-progress
Process costing including principles of equivalent units, treatment of
normal and abnormal losses and gains, joint products and byproducts and wastes
Service costing
STANDARD COSTING TECHNIQUES(15%)
(a)
(b)
(c)
4.
Impact on labour cost of; job evaluation, merit rating, labour
turnover
Types and bases of setting standards such as basic, current, ideal
and normal standards.
Methods of determining standard cost and the uses of standard
cost.
Variance analyses
OTHER COSTING TECHNIQUES(10%)
(a) Absorption costing
(i)
Allocation and apportionment of overheads
(ii)
Reciprocal services
(iii)
Absorption of overheads
(iv)
Absorption costing methods
(b) Marginal costing
(i)
Uses of marginal costing in decision making such as production
planning, pricing, make or buy, close-down, accept or reject,
dropping a production line, accepting additional order.
(ii) Types of break-even charts.
(iii) Methods of calculating break-even point, margin of safety and
ascertainment of angle of incidence, profit volume ratio
5.
BUDGETING AND BUDGETARY CONTROL (15%)
38
(a) Forecasting problems and techniques
(b) Budgeting process and organisation
(c) Preparation of functional budgets, types of budgets such as
fixed and flexible budgets, cash budget and master budget
(d) Behavioural aspects of budgetary control
(e) Preparation and reconciliation of budgeted and actual results
6.
COST CONTROL (10%)
Cost control and reduction techniques such as:
(a) value analysis
(b) work study
(c) method study
(d) quality control techniques
(e) merit rating
(f) job evaluation
(g) work measurement and cost audit.
7.
INTEGRATED ACCOUNTS (10%)
(a)
(b)
(c)
8.
Book-keeping entries for costing systems, integrated and interlocking
systems
Reconciliation of financial and cost accounting profits
Chart of accounts and computerisation of costing records
DEVELOPMENTS IN COST ACCOUNTING (5%)
Innovation in cost accounting including
(a)
(b)
(c)
9.
D.
back flush accounting
life cycle costing
target costing and Advanced Manufacturing Technique (AMT).
CASE STUDY (10%)
CONTACT HOURS
60 HOURS
39
E.
RECOMMENDED TEXTBOOKS
Baggot J., Cost and Management Accounting Made Simple, London W.H.
Allen
Biggs, W. W., Cost Accounts, Macdonarld and Evans
Dopuch, M. and Bimberg, J. C., Cost Accounting: Accounting, Data for
Management Decisions, Harcourt Brace Johanovich
Buyers, C. J., and Holmes, G. A., Principles of Cost Accountancy,
Donnington Press
Horngren, C. T., Cost Accounting - A Managerial Emphasis, Prentice - Hall
Lucey, T., Costing, ELBS Texts
Omolehinwa, E. Coping with Cost Accounting, Pumark Publishing Ltd.
Wheldon, H. J., H. J., Owier, L.W.J. and Brown, Cost Accounting and Costing
Methods, Macdonarld and Evans
Wintoki, M. B., Cost Accounting: A Study Guide for Students, M. B.
Consultants Publications
40
21.2.2
PAPER 5:
A.
GENERAL PRINCIPLES OF LAW
AIM
To examine candidates’:

B.
understanding of the nature and objectives of legal rules that are
essential to the functions and duties of an accountant

familiarity with the basic features of the Nigerian Legal System and
Constitution

familiarity with the laws relating to various commercial transactions and
the relationships pertaining thereto.
LINKAGES
This paper is linked to papers 1, 6, 8,10, 11,14,17, & 19.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
C.
CONTENTS
1.
THE NIGERIAN LEGAL SYSTEM (30%)
(a)
(i)
(ii)
2.
The sources of Nigerian Law - common law,
doctrines of equity, statutes, customs,
international law and treaties.
judicial
precedents,
the hierarchy of courts and administration of justice - the Supreme
Court, Court of Appeal, Federal High Court, High Court of a State,
Magistrate Courts, Customary and Sharia Courts of Appeal, Area
Courts and District Courts, National Industrial Court, Industrial
Arbitration Panels and Tribunals.
(b)
The Constitution - supremacy, fundamental rights, separation of powers,
legislative lists, power and control over public funds.
(c)
The essential elements of the tort of negligence and the liability of
professionals for negligent advice, the principle of vicarious liability, the
distinction between civil and criminal liability.
LAW OF CONTRACT (35%)
41
Nature of contract law in relation to local and international businesses,
essentials of a valid contract (offer, acceptance, consideration, intention to
create legal relations), capacity to contract, privity of contract, fundamental
terms, contract in restraint of trade, exclusion clauses, mistakes,
misrepresentation, duress, undue influence, illegality, breach of contract and
remedies for breach of contract such as damages and specific performance,
standard form contract.
3.
THE LAW OF COMMERCIAL TRANSACTIONS (35%)
(a)
Commercial Agency:- Its creation, effects of agent’s acts, duties of
principal and agent, remedies for breach of duties, termination of
agency.
(b)
Sale of Goods:- Obligations of the seller and buyer, conditions and
warranties, transfer of property, remedies of seller and buyer.
(c)
Hire purchase and instalment credit transactions:- Nature of hire
purchase contract, distinction between hire purchase and instalment
credits, rights and obligations of parties, Hire Purchase Act, 1990.
(d)
Land Use Act, 1978:- Rights of occupancy as security for bankers’
advances, the nature of Governor’s consent to alienation of interest in
land.
(e)
Secured Credit Transactions:- Mortgages, suretyship, guarantee,
indemnity, pledge and lien.
NOTE: STUDENTS WILL BE EXPECTED TO HAVE KNOWLEDGE
OF ALL AMENDMENTS TO DATE, OF ALL THE LEGISLATIONS IN
THIS SYLLABUS
D.
E.
CONTACT HOURS 60
RECOMMENDED TEXTBOOKS
Asomugha, E., Company Law in Nigeria Under the Companies and Allied
Matters Act, 1990, Tome Micro Publishers Limited, Lagos.
Bigg, W.W. and Thompson, Ranking, Spicer and Pegler’s Mercantile Law, HFL (
Publishers) Limited, London.
Chorley, Lord and Giles, O.C., Slater’s Mercantile Law, Pitman, London.
Ezejiofor, G., Okonkwo C., and Ilegbue, C. U. Nigerian Business Law, Sweet and
Maxwell, London.
Hicks, Andrew, Nigerian Law of Hire Purchase, Ahmadu Bello University, Zaria.
“Insurance Law in Nigeria”
42
Obilade, A. O., The Nigerian Legal System, Sweet and Maxwell.
Omojola, F., General Principles of Business Law in Nigeria.
Sagay., I. E., Nigerian Law of Contract, Sweet and Maxwell.
Sofowora, M. O., Introduction to Nigerian Legal System and Basic Principles of
Contract Part 1, Soft Associates, Lagos.
43
21.2.3 PAPER 6:
PRINCIPLES AND PRACTICE OF AUDITING
A. AIM
To examine candidates’:
B.

familiarity with, and knowledge of the basic objectives, principles and
concepts of auditing

understanding of the risks, methods, techniques and processes of
auditing, including planning and control

ability to audit computerised accounting systems

ability to communicate effectively with management and internal auditors,
audit committees, shareholders, regulatory agencies and specialists

understanding of the regulatory and ethical considerations governing
assurance engagements, and

ability to identify the requirements of the audits of various
organisations.
LINKAGES
This paper is linked to papers 1, 3, 4, 5, 8, 9, 11, 14, 15, 12, 16 & 19
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and
answer questions covering the entire syllabus.
short
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
C.
CONTENTS
1. FUNDAMENTALS AND PRINCIPLES OF AUDIT (10%)
(a)
(b)
(c)
(d)
Development and objectives of audit
Auditing techniques: and their limitations, audit evidence and
documentation
Independence, objectivity, integrity, confidentiality, skill, care and
competence
True and fair view, materiality and judgement.
2. REGULATORY AND ETHICAL ISSUES (15%)
44
(a)
(b)
(c)
(d)
3.
INTERNAL AUDIT AND CONTROL (15%)
(a)
(b)
(c)
4.
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Reviewing the client’s operational background with regard to its
financial, legal and personnel situations and the industry environment
in which it operates
Allocation and supervision of work and responsibilities.
Designing the audit programme
Examining the impact of relevant legislations on the performance of
an audit
Evaluating the quality of the audit and maintaining adequate working
papers
Planning, documenting and monitoring of time and costs
Establishing procedures for obtaining audit evidence including balance
and transaction testings, analytical procedures and management
representation
Quality control and peer review.
VERIFICATION OF ASSETS AND LIABILITIES (10%)
(a)
(b)
(c)
6.
Scope and purpose of internal audit
Reviewing the relationship between external and internal audits
Internal Control Systems.
AUDIT PLANNING AND CONTROL PROCEDURE(15%)
(a)
5.
Scope and terms of engagement of auditors as provided in.
(i)
Companies and Allied Matters Act 1990
(ii)
Banks and Other Financial Institutions Act 25 of 1991
(iii)
Insurance Act of 2003
Candidates to be familiar with instruments establishing various
organisations such as SEC, NDIC etc
Professional pronouncements and their applications i.e. guidelines and
standards of the Institute and other international bodies.
Supervision and monitoring of auditors:
(i)
Quality control, working papers, peer review.
(ii)
Functions and responsibility
(iii)
Threat to auditors’ independence and their resolutions:
(iv)
conflicts of interest, beneficial shareholding, financial
involvement with or in the affairs of clients, personal
relationships, audit fee etc.
Verification principles
Verification of current assets, fixed assets and liabilities
Verification of intangible assets, goodwill, patents, trademarks,
copyrights, franchise.
APPLICATION OF INFORMATION TECHNOLOGY IN AUDITING (15%)
45
(a)
(b)
(c)
7.
INTRODUCTION TO PUBLIC SECTOR AUDIT (5%)
(a)
(b)
(c)
(d)
8.
Understanding the impact of Information Technology in auditing
environment
Using Computer Assisted Auditing Techniques (CAATs) and testing
Information Technology Systems controls
Responsibility of auditors as regards Information Technology security
and Computer related crimes in an organisation.
Appointment, power and functions of the Auditor-General of the
Federation, State and Local Government,
Auditing for compliance with legislative and related authorities
Role of Public Accounts Committee in the Audit process
Internal audit in the public sector.
ASSURANCE REPORTING (15%)
(a)
(b)
(c)
Audit report: statutory and non-statutory, qualified and unqualified
Reviewing subsequent events, going concern status, management
representation and the truth and fairness of financial statements
Relationship of auditors with audit committees and third parties.
D.
CONTACT HOURS:
60
E.
RECOMMENDED TEXTS:
Adewunmi, Wole, Bank Audit, University of Lagos Press.
Aguolu Osita, Fundamentals of Auditing, Rex Charles & Patrick Ltd., Nimo,
Anambra State, Nigeria, 1998.
Arens, A.A. and Loebbecke J.K., Auditing: An Integrated Approach, Prentice
Hall.
Chambers, A.D. et al Internal Auditing: Theory and Practice, Pitman.
Coopers & Lybrand, Manual of Auditing, Gee & Co.
Dodge, R., Concise Guide to Auditing Standards and Guidelines, Chapman
& Hall.
Dunn, J., Auditing: Theory and Practice, Prentice Hall
Fakiyesi Sanmi, Essentials of Auditing
Fint, D., Philosophy and Principles of Auditing, Macmillan.
INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA Professional Code
of Conduct
46
Johnson, A.A., An Introduction to Business Data Processing and Computer
Audit,
City Publications Ltd., Lagos.
Okolo, J.U.T., The Concept and Practice of Auditing, Evans (Nig.) Ibadan.
U.K. National Audit Office, A Public Audit Manual I & II National Audit Office.
Washbrook, N., Management Control, Auditing and the Computer,
Heinemann.
Willingham, J.J. and Carmichael, D.R., Auditing Concepts and Methods,
McGraw-Hill.
47
21.2.4 PAPER 7:
A.
MANAGEMENT
AIM
To examine candidates’:
B.

understanding of management concepts, theories and techniques and
their relevance in contemporary business world

ability to apply the concepts, theories and techniques in the analysis
and development of solutions to management problems especially
those frequently encountered in the global economy

ability to utilize management skills in developing corporate and
strategic goals for an organization in a dynamic environment

ability to analyse the impact of changes in the environment on policy
decisions of management

understanding of the principles and practices of organic business
functions

ability to analyse and provide solutions to simple management cases.
LINKAGES
Management is a foundation course for the other subjects and is therefore
linked to all of them.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
C.
CONTENTS
1.
MANAGEMENT CONCEPTS AND THEORIES (15%)
(a)
(b)
(c)
(d)
(e)
Nature and Purpose of Management - Definitions
Art and Science of Management; Management levels, skills and roles
Process of Management - Planning, organizing, staffing, leading and
controlling
Managerial and organizational performance - Efficiency and
effectiveness
Domain of Business - Production, Marketing, Finance and Human
Resources Management
48
(f)
(g)
2.
Evolution of Management Thought - Pre-classical contribution;
classical
school - Scientific Management, Fayol’s Principles of
Management, Max Webbers’ theory of bureaucracy; and neo-classical
school - human relations school.
Modern Theories - systems and contingency theories; the interrelationships between the schools of thought.
ENVIRONMENT OF MANAGEMENT (10%)
(a)
(b)
(c)
(d)
Nature and role of environment of management
Types; internal, external and global environments.
Analysis of environmental factors - Ecological, economic, social,
technological, political, legal and cultural factors. Globalisation and its
impact on managements; Environmental scanning.
Business ethics and social responsibility; perspectives of ethics and
social responsibility; monitoring social demands and expectations;
changing concept of social responsibility.
3. MANAGEMENT TECHNIQUES (10%)
(a) Management by Objectives
(b) Stress Management
(c) Time Management
(d) Forecasting techniques
(e) Decision tree
(f) Budgetary control techniques
(g) Program evaluation and review technique (PERT)
(h) Break-even analysis
(i) Total quality management
(j) Just-in-time inventory control
4. MANAGING WORK AND ORGANISATION (15%)
(a)
(b)
(c)
(d)
(e)
Planning - Types, approaches, benefits, and processes
constraints to effective planning.
Organising - the concept of organisation, nature and purposes,
organisation structure, design and effectiveness; formal and informal
organisation
Patterns of departmentalisation; by function, product, geography,
customer, process, time, matrix organization, choice of pattern of
departmentalisation; line and staff authority; centralization and
decentralisation; delegation of authority; span of control.
The determinants of organisational structure - strategy, size,
technology and environment; the impact of structure on organizational
performance.
The need for and techniques of co-ordination, managerial hierarchy,
roles,
procedures, plans and goals.
Decision making - Types, programmed/non-programmed;
Decision making under certainty, risk and uncertainty; rational
decision making model and its limitations; management by objectives.
49
(f)
5.
Controlling - the nature and purpose of control; control process. Key
performance areas; control techniques; characteristics of effective
control system.
ORGANIC BUSINESS FUNCTIONS (15%)
(a) Managing People in Organisation
(i) -
Characteristics of Effective Communication System
Staffing - Manpower planning; job analysis, job description.
Job specification; recruitment; selection and placements.
training and development, performance appraisal
compensation and welfare services.
discipline, promotion and separation.
Nature of industrial relations - collective bargaining, legal
framework and dispute settlement.
(ii) Motivation - Roles of motivation; theories of motivation, content,
process and reinforcement theories, Implication of motivation theories
for management.
(iii) Leadership - The nature and role of leadership in organisations;
leadership styles and effectiveness; approaches to leadership;
managerial grid.
(iv) Communication - Definition, types, channels and process of
communication, importance of effective communication; barriers to
effective communication.
Characteristics of effective communication
(b) Production Functions – the scope of production management; production
planning and control; scheduling; facility location and layouts; productivity and
productivity improvement schemes. Material requirements planning and
purchasing; inventory control and quality assurance.
(c)
6.
Marketing functions - Nature of marketing; marketing concepts; marketing
functions; market segmentation; marketing research; elements of consumer
behaviour, marketing mix – product; pricing; distribution and promotion
strategies. Sales forecasting, planning and budgeting.
CORPORATE PLANNING AND STRATEGY (10%)
(a)
the nature and role of strategic planning; strategic planning process;
determination of enterprise vision, mission, goals and objectives and SWOT
analysis.
(b)
the concept of strategy, global, corporate, business and functional level
strategies, SWOT analysis; business growth strategies; strategy formulation,
implementation and evaluation.
(c)
the nature and functions of management information system (MIS) in
corporate planning and strategy.
50
7.
8.
MANAGING CHANGE (10%)
(a)
Sources of conflicts and conflict management.
(b)
Nature of change and innovation, forces driving change and innovations;
change and innovation process.
(c)
Entrepreneurship and intrapreneurship.
(d)
Organisation culture.
(e)
Planned change and organisational development, resistance to change;
overcoming resistance to change.
INTRODUCTION TO CORPORATE GOVERNANCE
(5%)
Statutory and functional roles and responsibility of Board of Directors and top
management, liabilities of directors, shareholders’ rights and control over the
affairs of the company.
9.
CASE STUDY (10%)
D.
CONTACT HOURS 90
E.
RECOMMENDED TEXTBOOKS
Adeleke, A. A. Management Concepts and Applications, Lagos concept
publications
Adewunmi Wole Management: An Introduction, Ibadan, Macmillian Publishing
Company
Bertol, K. M. and Martins, D. V. Management New York McGraw-Hill
Cole, G.A. Strategic Management: Initiative Growth, London.
Inegbenebor A. U. and Osaze E. B. Introduction to Business, Lagos Malthouse Press
Limited
Lawal, A. A. Management in Focus, Lagos, Abdul Industrial Enterprises.
Stoner, A. F., Freeman R. E, and Gilbert, D. R. Management, New Dehli Prentice-Hall
Incorporated
Weihrich, H. and Koontz H. (1994) Management: A Global Perspective, New York Mc
GrooHill locotion
51
JOURNALS
ASCON Journal of Management:
Nigeria (ASCON), Badagry.
Published by Administrative Staff College of
Management in Nigeria: Published by the Nigerian Institute of Management, Lagos
Nigerian Management Review
Development (CMD), Lagos.
Published
52
by
the
Centre
for
Management
21.3
PROFESSIONAL EXAMINATION I
21.3.1
PAPER 8
A.
FINANCIAL ACCOUNTING I
AIM
To examine candidates’:

ability to prepare, analyse, interpret and report on financial statements

understanding of the theoretical and regulatory framework of financial accounting

acquisition of knowledge of financial accounting procedures and practices as
they relate to the measurement of income, capital and economic relationship in a
variety of business situations and activities

ability to design and install financial accounting systems for a variety of business
activities

ability to prepare financial statements for various types of business organisations
for management use and publication

knowledge of the application of computer software to ledger and other
accounting operations.
B. LINKAGES
This paper is linked to papers 1, 3, 4, 5, 6, 9, 11, 12, 13, 16, 17, 18 & 19
The Paper will be a three-hour paper divided into two sections.
SECTION A:
(40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B:
(60 Marks) - Six questions out of which candidates are expected to
answer four.
C. CONTENTS
53
1. PARTNERSHIP ACCOUNTS (15%)
(a) Amalgamation and absorption
(b) Dissolution, including piece-meal realisation and distribution
(c) Conversion to limited liability company.
2. COMPANY REPORTS AND ACCOUNTS
(a)
(25%)
Meaning, contents and objectives.
(b) Preparation of published financial statements for limited liability companies
including banks and insurance companies.
(c) Computation and interpretation of significant ratios from
financial statements including their usefulness and limitation.
(d)
3.
Simple report writing.
MISCELLANEOUS ACCOUNTS (15%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
4.
ACCOUNTING FOR SPECIALISED BUSINESSES (15%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
5.
Joint venture
Consignment
Containers accounts
Royalties
Branch (including foreign branches)
Bill of exchange
Departmental account
Sinking fund and annuities
Insurance claims
Contract account
Trustees
Estate agencies
Farmers
Investments
Leasing
Hire purchase
Oil and gas
Pension and provident fund
Property companies
Solicitors
Underwriters
Unit trusts
Shipping
Stock brokerage
Co-operative Societies
REGULATORY AND STATUTORY FRAMEWORK (15%)
54
6.
(a)
Nigerian Accounting Standards Board-role, structure and
leading to the issuance of standards.
(b)
Detailed contents and application of standards (both local and
international)
(c)
Comparison of local and international standards - SAS, IAS.
(d)
Arguments for and against regulations.
(e)
Generally Accepted Accounting Principles (GAAP)
( f)
Legislative and quasi-legislative requirements, Companies and Allied
Matters Act 1990, Insurance Act 2003, Banks and Other Financial
Institutions Act 1991, NAICOM Act 2003, Prudential Guidelines, Stock
Exchange regulation and Securities and Exchange Commission
guidelines and disclosure requirements.
COMPUTER APPLICATIONS (15%)
(a)
Introduction to computer systems and information processing
(i)
concept of data processing
(ii)
computer system – Hardware & Software
(iii)
computer networking
(iv)
organisational structure of a computer department
(v)
files and database structure
(b) The use of computer software packages in the following areas:
D.
(i)
general ledger and subsidiary ledger.
(ii)
preparation of trial balance and final accounts.
(iii)
payroll
(iv)
inventory
(v)
fixed assets
(vi)
treasury
(vii)
computation of ratios
CONTACT HOURS 90
55
processes
E.
RECOMMENDED TEXTBOOKS
Adewunmi,’Wole and Akinlade, T., Data Processing and Management
Information Systems, Macmillan/The Chartered Institute of Bankers of
Nigeria.
Alexander, D., Financial Reporting: The Theoretical and Regulatory
Framework, Chapman and Hall.
Anao, A.R., An Introduction to Financial Accounting, Longman.
Asaolu, Ayodele, Modern
Publishers Limited, Ibadan.
Book-Keeping
and
Accounts,
Gbabeks
BPP, Financial Accounting I, BPP Limited.
CIMA, Management Information Systems and the Computer (Parts I & II),
CIMA.
Dodge, R. Foundation of Business Accounting, Chapman and Hall.
Elliot, B. and Elliot, J., Financial Accounting and Reporting, Prentice Hall.
Folorunsho, J.O., Practical Approach to Computing, Macmillan.
Inanga, E.L., Principles of Accounting, Heinemann Books Nig. Ltd.
Jennings, A.R., Financial Accounting Manual 1 and 2, DPP Publications.
Shave, M.J., Computer Science Applied to Business Systems, Addison –
Wesky.
Spicer & Pegler, Book Keeping & Accounts
Walgenbach, P.N., et al, Financial Accounting: An introduction, Harcourt
Brace Jovanovich.
Watson, Computer for Business – A Managerial Emphasis
Welsch, G.A. and Short, D.G., Fundamentals of Financial Accounting,
Irwin.
56
PAPER 9 TAXATION
21.3.2
A.
AIM
To examine candidates’:
 Knowledge of the provisions of statutes in taxation and their interpretations
 Ability to compute tax liabilities based on relevant statutes
 Knowledge of ethical issues – implications of confidentiality, conflict of
interest and disclosure of information in tax practice
B.
LINKAGES
This paper is linked to papers 1, 3, 5, 8, 6, 7, 11, 12 14, 15, 16, 17, 18 & 19
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
C.
CONTENTS
1. GENERAL SYSTEM OF TAX AND TAX ADMINISTRATION (20%)
(a) Definition, nature and objectives of taxation
(b) Distinction between taxes and other levies
(c) Historical background and the structure of Nigerian tax system
(d) Sources of various tax laws
(e) Jurisdiction including rules of residence as applicable to individuals,
families, estates, executors and itinerant workers
(f) General guidelines and practical procedures for registration of tax payers
(g) Knowledge of the relevant documents necessary for filing returns for
various taxes and relevant tax authorities
(h) Returns, assessment procedures and collection of taxes, interests on
overdue tax.
(i) Objections, appeals and enforcement
(j) Multiplicity of taxes:
- Act No. 21 of 1998 and conflict between it and the1999
Constitution
(k) Tax administration
(i) Organs of administration.
(ii) Tax Clearance Certificates – nature, objective, relevance and
problems
2. INDIVIDUAL ASSESSMENT, TRUST SETTLEMENTS AND ESTATES
57
(40%)
(a) General familiarity with the relevant laws and practice, income chargeable
and exemptions
(b) The employee:
(i) definition of employee and legal meaning of income
(ii) salaries, pensions, charge, annuities, fees, gratuities, allowances and
benefits-in-kind
(iii) allowable and disallowable expenses and related case laws
(iv) assessments and collection of taxes
(v) income tax under Pay-As-You-Earn system
(vi) partners in partnership and joint ventures
(c)
Sole traders:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(d)
meaning of a trade or profession
adjustment of profits of a trade or profession
basis periods including opening and closing years
change of accounting dates
treatment of business losses – types of relief and their treatment,
losses of new trade or business in opening and closing years
nature and objectives of capital allowances and reliefs available
- Computation of allowances
- Relevance of capital allowances to the economy
Treatment of Unearned income
(i)
(ii)
(iii)
(iv)
income from rent on property, including contractor-financed projects
income from savings
dividends and interests
Assessments and payments
(e) Taxation of non-resident individuals deriving income from Nigeria.
3.
TAXATION OF INCORPORATED COMPANIES (30%)
(a)
Company income tax:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Adjustments of profits
Claims for loss relief and computation of Assessable Profits
Claims for capital allowances and computation of total profits.
Franked investment income.
Computation of tax liability.
Assessment and payment of income taxes including minimum tax
provisions.
(vii) Special considerations:
- Turnover tax.
- Small company relief.
- Specialized businesses including, real estate, agriculture,
transportation and telecommunication
58
(b)
(c)
(d)
4.
Education Tax:
(i) Objectives and basis of computation
(ii) Education tax fund management
Withholding Tax
- relevant tax authority
- income subject to withholding tax
- time and mode of claims
- refunds; grounds and procedures
- remittance to tax authorities
Preparation of taxation accounts
VALUE ADDED TAX AND STAMP DUTIES (10%)
(a)
Value Added Tax
(i)
Definition, nature, objectives and administration
(ii) Taxable persons and taxable supplies and services
(iii) Input and output
(iv) Exempt, zero standard related supplies and services
(v) Partial exemptions.
(vi) Returns.
(vi) Preparation of VAT Accounts.
(b)
Stamp Duties
(i)
Definition, nature and objectives.
(ii) Forms of stamp duties and computations.
(iii) Administration - territorial limits, methods of stamping.
(iv) Adjudication - limits and appeals.
(v) Transactions attracting stamp duties.
NOTE: STUDENTS WILL BE EXPECTED TO BE FAMILIAR WITH ALL RELEVANT
DECIDED CASES AS WELL AS OFFENCES, PENALTIES AND ENFORCEMENT
PROVISIONS OF TAX LEGISLATIONS.
59
D. CONTACT HOURS:
60
E. RECOMMENDED TEXTBOOKS:
Adesola, S. M. Income Tax Law and Administration in Nigeria, Obafemi Awolowo
University Press.
Afe, Ogundele, Element of Nigerian Taxation
Afe, Ogundele, Value Added Tax
Ariwodola, J. A., Personal Taxation in Nigeria, J. A. A. Nigeria Limited. 4th Edition.
Ariwodola, J. A., Companies Taxation in Nigeria, J. A. A. Nigeria Limited. 3rd Edition.
CITN, Nigerian Tax Laws
Naiyeju, J. K., Value Added Tax
Ola, C. S., Nigerian Income Tax in Practice, C. S. S. Ltd. Lagos
60
21.3.3 PAPER 10
MANAGEMENT INFORMATION SYSTEM
AIM
To examine candidates’:

appreciation of the capabilities, limitations and applications of computers in industry
and commerce

understanding of information technology and ability to apply systems techniques to
the resolution of organisational problems

appreciation of systems development methodologies; identifying the tools and
techniques involved

working knowledge of systems evaluation and implementation

demonstrable capability to collaborate effectively with computer specialists in
defining and installing the appropriate management information systems to meet the
information needs of their organizations

appreciation of the need and requirement for the security of systems data, control
and contingency planning

ability to identify various areas of computer related crimes and how to prevent the
occurrence

understanding of information technology taking cognisance of emerging business
models including the Internet and its impact on communications and commerce.
B.
LINKAGES
This paper is linked to papers 2, 3, 4, 6, 12, 13, 14, 16, 17 and 19
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
C.
CONTENTS
61
1.
2.
INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM (5%)
(a)
Uses of MIS in an organisation; relationship between data and
information
(b)
Formulation of an organisation’s MIS strategy
(c)
IT and MIS
SYSTEMS CONCEPT OF ORGANISATION
(a)
Introduction
(i)
(ii)
(iii)
4.
general Systems Theory (definition, component and behaviour)
classification of information systems
coupling and decoupling
(b)
Organisation of systems: such as financial, marketing, human
resources or personnel, manufacturing/production, enterprise resource
planning, customer relationship management.
(c)
Different types of organizational structures and systems used for
operational, tactical and strategic planning and control.
(i)
(ii)
3.
(10%)
independence of data structures from organizational structures
role and structure of management information systems, data
processing and operational system.
ORGANIZING FOR MANAGEMENT INFORMATION SYSTEMS (10%)
(a)
The computer as data/information processing tools.
(i)
Computer system architecture.
(ii)
Hardware and software aspect of the computer.
(iii)
Processing techniques (distributed, real-time etc.)
(b)
The need and critical elements of a computer department.
(c)
Setting up a computer department - planning, feasibility study, and outsourcing versus in-house personnel.
(d)
Managing change resulting from computerization - management
orientation, personnel training, motivation etc.
APPROACHES TO SYSTEMS DEVELOPMENT (20%)
(a)
(b)
(c)
End-user Computing (E.U.C.) - approaches, benefits and problems
Prototyping - types, stages of prototyping
Systems development life cycle
(i)
Problem definition
(ii)
Systems Investigation
assessment of the feasibility/desirability of potential
computer projects from the view points of technical,
social, operational and economic feasibility including the
use of cost benefit analysis; the production of a feasibility
report and project plan.
62
(iii)
Systems Analysis and Design
-
(iv)
5.
use of appropriate fact finding techniques in order to
establish client’s system requirements.
identification and application of appropriate systems,
analysis and design tools and techniques to enable
production of programme specification, database structure,
network specifications, document/screen layouts, dialogue
design.
design and use of human computer interfaces - basics of
human computer interface design.
determination of systems design criteria
systems specifications - input, processing, output, storage
and control specifications..
features, benefits and limitations of structured methods
Systems Implementation
system acquisition and selection criteria - negotiation and
agreeing procedures and plans for the implementation,
monitoring and maintenance of a new system.
application package acquisition or in-house development
files and database creation or conversion
personnel training
testing
change over procedures
regular post-implementation review
documentation, reviews and maintenance.
systems failures, causes, management and control.
SYSTEMS EVALUATION (10%)
(a)
(b)
(c)
(d)
(e)
Identifying, agreeing and documenting criteria for evaluating potential
suitable systems.
Evaluating potential suitable systems and packages against agreed
criteria.
Designing and implementing procedures for systems operation and
control.
Drawing conclusion from the evaluation and proposing an optimal
system.
Explaining, negotiating, agreeing and documenting systems
modifications.
63
6.
7.
IMPACTS OF INFORMATION SYSTEMS (5%)
(a)
Economic impact social impact effects of technology and education on
information and communication, the fear of redundancy and lay offs,
user acceptability, trends in human-computer interfacing, privacy,
information dissemination and office automation.
(b)
Formulation of IT strategy
CONTROLS AND CONTINGENCY/DISASTER RECOVERY PLAN (10%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
8.
Controls objectives/framework
Control activities and risk assessment
Hardware/software security, backup and recovery procedures - virus
infections and data loss.
Computer Auditing - Computer Assisted Audit Techniques (C.A.A.T’s).
Privacy and accuracy of information - confidential and legal
responsibilities, data protection legislations.
Computer related crimes and preventions.
Use of benchmarking in quality measurement and improvement
Evaluation and recommendation of appropriate control systems for the
management of organisations
Control systems problems and solutions
MODERN TRENDS IN INFORMATION AND COMMUNICATIONS
TECHNOLOGY (10%)
(a)
(b)
(c)
(d)
(e)
(f)
Impact of the internet on business
Internet services and applications
(i)
general application areas e-commerce,
government, e-leasing and virtual library
(ii)
impact on strategic planning
(iii)
impact on controls of data on transmission
(iv)
emerging business models
(v)
encryption techniques and biometric controls
e-banking,
Data transmission and communication problems and solutions
Computer network and the internet
Web browsers
Computerized archival methods
64
e-
9.
CASE STUDY (20%)
NOTE: CANDIDATES WILL BE EXPECTED TO APPLY THE KNOWLEDGE
IN THIS SUBJECT AND OTHER SUBJECTS LINKED TO IT TO SOLVE
SOME REAL-LIFE PROBLEMS
D.
CONTACT HOURS 90
E.
RECOMMENDED TEXTBOOKS
Adewunmi, W and Akinlade, T., Data Processing and Management
Information Systems.
Macmillan/The Chartered Institute of Bankers of
Nigeria
CIMA, Management Information Systems and the Computer (Parts I &
II).
Folorunsho, J. O., Practical Approach to Computing, Macmillan
Kayode, A. J., Business Information Systems, (A.J.K. Limited)
Shave, M. J., Computer Science Applied to Business Systems, Addison –
Wesky
Watson, Computer for Business - A Managerial Emphasis
65
21.3.4 PAPER 11:
A.
BUSINESS LAW
AIM
To examine candidates’:
B.

familiarity with features of the law regulating the affairs of business
associations (companies and partnerships), banking and insurance
transactions, as well as the administration of estates and trusts

knowledge of social-legal ethics in Nigeria as a function of professional
integrity and of promoting foreign investment in the Country

ability to apply the above knowledge to specific aspects of accounting
functions.

awareness of the relevance of this paper to international business
transactions.
LINKAGES
This paper is linked to papers 1, 5, 6, 8,10, 14,17, & 19.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
C.
CONTENTS
1.
PARTNERSHIP(10%)
Nature and types of partnership: Partnership statutes, general and limited
partnerships, terms of partnership agreement, rights and duties of partners,
inter-relationship between partners and third parties, dissolution of
partnership.
2.
BANKING, NEGOTIABLE INSTRUMENTS, INSURANCE, EXCHANGE
CONTROLS AND LEGAL CONTROLS OF FRAUD AND OF FOREIGN
INVESTMENT (25%)
The relevant common law and statutory rules as well as the general practices
on the following issues concerning the business of banking, negotiable
instruments, exchange controls and insurance in Nigeria:
66
(a)
Relationship Between Banker and Customer
The provisions of the Banks and Other Financial Institutions Act, 1991, the
powers and duties of the Central Bank of Nigeria under the Central Bank Act,
1991, the duties and powers of the Nigerian Deposit Insurance Corporation
under the Nigerian Deposit Insurance Corporation Act, 2003, the Bills of
Exchange Act, 1990 with reference to definition and essentials of a valid bill,
acceptance and delivery of bills, inchoate instruments, negotiation and
negotiability, duties of the holder and liability of parties, discharge of a bill,
cheques and other bills, crossed cheques, protection of bankers, promissory
notes.
(b)
3.
The Insurance Act 2003 - Nature of insurance, indemnity and non-indemnity
contract, principles of insurance, insurable interest utmost good faith,
misrepresentation, conditions and warranties, subrogation and contribution,
assignment of policies.
(c)
The present exchange control regime requirements.
(d)
Professional ethics in the Companies and Allied Matters Act 1990,
Failed Banks (Financial Malpractices and Debt Recovery) Act 1994,
the Money Laundering Act 1995, Advance Fee Fraud and Other Fraud
Related Offences Act 1995, the Corrupt Practices and Other Related
Offences Act 2000.
(e)
The Nigerian Investment Promotion Commission Act 1995, the
Investment and Securities Act 1999 and National Privatisation and
Commercialisation Act 1999 as amended.
TRUSTEESHIP, EXECUTORSHIP AND BANKRUPTCY LAWS (25%)
The appointment, duties, obligations and accounts of trustees, termination of
trusts, wills and letters of administration, devolution of property, powers and
duties of executors and administrators, distribution of estate, Trustee
Investment Act, 1990.
The provisions of the Bankruptcy Act, 1990 relating to acts of bankruptcy,
issue of receiving orders, composition and schemes of arrangement,
adjudication and discharge, appointment and powers of official receiver and
trustee in bankruptcy, property available, proof of debt, statement of affairs
and deficiency account.
4.
COMPANY LAW (40%)
(a)
Nature and types of companies, formation of companies,
Memorandum and Articles of Association, prospectus, shares, share
capital, debenture, ultravires doctrine, members meetings and
resolutions, members, directors, secretary and secretarial practice,
statutory books and returns, profit available for distribution, payment of
dividends, holding and subsidiary companies, winding up, powers and
duties of liquidators and receivers, acquisitions, mergers and take over
bids as contained in the Companies and Allied Matters Act, 1990 ( as
amended).
67
D.
CONTACT HOURS 60
E.
RECOMMENDED TEXTBOOKS
Ezejiofor, G., Okonkwo C., and Ilegbue, C. U. Nigerian Business Law, Sweet and
Maxwell, London.
Omojola, F., General Principles of Business Law in Nigeria.
Asomugha, E., Company Law in Nigeria Under the Companies and Allied
Matters Act, 1990, Tome Micro Publishers Limited, Lagos.
Bakibinga, I., Nigerian Law of Partnership, Obafemi Awolowo University Press
Limited, Ile-Ife.
Bigg, W.W. and Thompson, Rankin, Spicer and Pegler’s Mercantile Law, HFL (
Publishers) Limited, London.
Chorley, Lord and Giles, O.C., Slater’s Mercantile Law, Pitman, London.
Jegede, M. I., Law of Trusts, Bankruptcy and Administration of Estate, MIJ
professional publishers.
Fabunmi J. O., Equity and trusts in Nigeria.
Federal Republic of Nigeria, Companies and Allied Matters Act, 1990
Federal Republic of Nigeria, Banks and Other Financial Institutions, Act 1991
Federal Republic of Nigeria, Central Bank of Nigeria Act 1991
68
21.4
PROFESSIONAL EXAMINATION II
21.4.1 PAPER 12
A.
FINANCIAL ACCOUNTING II
AIM
To examine candidates’:
B.

in-depth understanding of the relevant accounting principles and legal
framework in preparation of accounting records and published financial
statements for group of companies

skill in the application of principles, techniques and regulatory framework
required in business capital reconstructions, combination and
discontinuation

appreciation of the limitation and constraint of information conveyed in
conventional financial statements

ability to critique financial statements and make valid judgment
concerning the state of health of economic organisations.
LINKAGES
This paper is linked to papers 1, 3, 4, 5, 6, 7, 8, 9, 11, 13, 16, 17, 18 & 19
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
C.
CONTENTS
1.
PUBLISHED GROUP ACCOUNTS (30%)
(a)
The legal and regulatory framework in the preparation of group
accounts
(b)
The preparation of consolidated financial statements (to include
the group cash-flow statement) involving one or more
subsidiaries, sub-subsidiaries and associates, under the
acquisition and pooling of interests method. (IAS 22 & 27)
(c)
The treatment in consolidated financial statements of minority
interests, pre-and post - acquisition reserves, goodwill, fair value
adjustments, intra-group transactions and dividends, piecemeal
and mid-year acquisitions, and disposals to include subsubsidiaries and mixed groups
69
(c) The accounting treatment of joint ventures and associates (IAS 28
& 31) using the equity method and proportional consolidation
method. Foreign currency translation (IAS 21 and SAS 7) to include
overseas transactions and investments in overseas subsidiaries.
2.
BUSINESS COMBINATIONS AND RE-ORGANISATION (15%)
(a)
(b)
(c)
3.
ACCOUNTING FOR BANKRUPTCIES AND LIQUIDATION
(15%)
(a)
(b)
4.
(b)
Theory and application of all operational accounting standards
(Statements of Accounting Standards and International Accounting
Standards).
Accounting for changes in price level.
INFORMATION TECHNOLOGY IN ACCOUNTING
ENVIRONMENT (10%)
(a)
(b)
(c)
(d)
D.
Analysis of financial statements and use of ratios.
Trend analysis based on absolute values and percentages.
Report writing
FINANCIAL ACCOUNTING STANDARDS (15%)
(a)
6.
preparation of statement of affairs for insolvent individuals,
partnerships and limited liability companies.
Statement of distribution of the receiver and liquidator.
ANALYSIS AND INTERPRETATION OF FINANCIAL
STATEMENTS (15%)
(a)
(b)
(c)
5.
amalgamation or merger
absorption or purchase of business
reconstruction - internal and external - through
implementation of given schemes.
Accounting systems developments involving easy-to-use and
robust pre-packaged accounting software to help organisations
structure their systems to provide effective and efficient support for
their primary objectives and activities.
Information development and information system design,
information system management and control, and information
system evaluation.
Transaction processing in typical business and accounting
applications.
Network and Electronic Data Transfer.
CONTACT HOURS: 75
70
E.
RECOMMENDED TEXTBOOKS:
Akeju, J.B., Accounting for Company Business, JBA Limited, Lagos.
Akeju, J.B., Financial Accounting, Volume 1, JBA Limited, Lagos.
Alexander, D., Financial Reporting: The Theoretical and Regulatory
Framework, Chapman & Hall.
Biggs, W.W. & Perrins, R.E.G. Spicer and Pegler’s Book-Keeping and
Accounts, H.F.L.
BPP, Financial Accounting, Dryden Press.
Davidson, F., Financial Accounting, Dryden Press.
Elliot, B and Elliot, J., Financial Accounting and Reporting, Prentice-Hall.
Jennings, A.R., Financial Accounting Manual 1 & 2, DP Publications.
Lee, G.A., Modern Financial Accounting, Van Nostrand Reinhold.
Lewis, R & Pendrill, Advanced Financial Accounting, Pitman.
Pickles, W. and Lafferty, J., Accountancy, Pitman London.
Wallis, R.W.,
Accounting – A Modern Approach, MacGrow-Hill
71
21.4.2 PAPER 13
MANAGEMENT ACCOUNTING
A. AIM
To examine candidates’:
B.

ability to provide relevant information to assist the management of organisations
in various sectors and at the operational and strategic levels in planning, decision
making and in controlling operations

ability to analyse problem situations, propose and/or evaluate alternative courses
of action

knowledge of the relevant quantitative techniques in solving problems

ability to assist management in identifying and applying appropriate performance
measurement techniques

use of information and communication technology in solving problems and
preparation of reports.
LINKAGES
This paper is linked to papers 1, 2, 3, 4, 7, 8, 9, 10, 14, 15, 17, 19
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
C.
CONTENTS
1. NATURE AND PURPOSE (5%)
(a) An overview of management accounting
(b) Management accounting as a tool of management and its role in a
changing environment.
(c) concepts commonly used in planning, control and decision making such
as full cost, sunk cost, marginal or direct cost, opportunity cost, incremental
cost or differential cost.
72
2.
PLANNING (15%)
(a) Long Term
(i) objectives of long term planning.
(ii) procedure and stages for developing long-term plan including
evaluation of alternatives.
(iii) implementation of long-term plan and annual budget.
(iv) monitoring and control.
(b) Short Term
(i) types of budgets
(ii) budgeting process covering but not limited to identification of
objectives, search for possible courses of action, gathering data about
alternatives and measuring pay-offs, selection of course of action, and
monitoring outcomes and comparing with actual performance.
(iii) Working Capital Management.
-
-
the components of working capital and the importance of
effective working capital management to corporate survival.
cash: preparation of cash budget and management of cash
surpluses and deficits; cash management models.
debtors: analysis and evaluation of various credit terms, use of
cash discounts and debt collection techniques, debt factoring
and invoice discounting.
creditors: evaluating trade credits and the advantages and
disadvantages of trading on credit.
stocks: formulation of various stock policies and stock control
systems techniques including inventory models such as
Economic Order Quantity (EOQ), and Just-In-Time (JIT).
Implications of inventory control for the financial manager.
(iv) alternative approaches to budgeting such as zero-based budgeting
(ZBB), Programme Performance Budgeting System (PPBS) and
Activity-Based Budgeting (ABB).
3.
CONTROL (15%)
(a)
Control theory in management accounting including feedback loops, open
and closed systems.
(b) Control aspect of budgeting involving
(i)
budgetary control, its objectives and relationship with responsibility
accounting
(ii)
controllable and uncontrollable outcomes
(iii)
analysis of variances
73
(v)
investigation and evaluation of variances including use of probability
distribution and normal distribution curves
(v)
behavioural aspect of budgeting including goal congruence,
motivation and the problems of dysfunctional behaviour
(c) Standard Costing
(i)
(ii)
(iii)
(iv)
relationship of standard costing with budgeting
types of standards and procedure for setting standards
variance analysis
planning and operational variances
4. DECISION MAKING (20%)
(a)
Short Term
(i) profit analysis - application and limitation
(ii) measuring costs and benefits, decision making involving dropping a
segment, make or buy decision, replacement of equipment
(iii) cost-volume-profit analysis under conditions of uncertainty
(iv) pricing
- objectives of pricing and factors influencing pricing decisions
- pricing methods: cost and market based methods - cost plus,
marginal cost, average or lowest market prices or negotiated
prices
- product-life cycle and appropriate pricing strategies
(b)
Long Term - Capital Budgeting
(i) objectives of capital budgeting
(ii) techniques of evaluating capital budgets such as pay back period,
accounting rate of return, cost benefit analysis, discounted cash
flow(DCF) techniques-net present value (NPV), internal rate of return
(IRR), and profitability index
(iii) capital rationing (single period, multi period) and use of linear
programming
(c)
Risks and Uncertainty
(i) measurement of risks
(ii) decision tree
(iii) portfolio theory
(iv) sensitivity analysis
(v) probability analysis
(vi) utility theory
74
5. APPLICATION OF QUANTITATIVE METHODS (15%)
(a)
Cost estimation methods
(b)
Inventory control and estimation of optimum stock
(a)
Linear programming techniques
6. DIVISIONAL PERFORMANCE EVALUATION (10%)
(a) Performance measures and control in divisionalised companies:
(i) organisational arrangement – structural decentralisation and
divisionalisation
(ii) methods of assessment such as absolute profit, residual income,
return on investment
(b) transfer Pricing in divisionalised companies
(i)
(ii)
(iii)
7.
PRESENTATION OF MANAGEMENT INFORMATION
(a)
(b)
8.
objectives of transfer pricing
setting of transfer pricing
determination of optimum transfer price
(5%)
Fundamentals and formats of reporting
Feedback information and reaction
CURRENT DEVELOPMENTS IN MANAGEMENT ACCOUNTING (5%)
Candidates will be tested on new issues such as Advanced Manufacturing
Technology (AMT), backflush, target costing, Activity Based Costing (ABC),
throughput accounting, life-cycle costing.
9. CASE STUDY(10%)
Candidates will be required to apply different aspects of this paper to solve
problems and also draw on the knowledge of other interlinked papers at lower or
the same level of the institute’s examinations.
D.
CONTACT HOURS 90
75
E.
RECOMMENDED TEXTBOOKS
Asaolu, T. O. and Nasser M. L., Essentials of Management Accounting, Cedar
productions.
Azrudd, J. and Hope, T. Accounting for Management Decision, Prentice-Hall.
Drury, C., Management and Cost Accounting, Van Nostrand Reinhold Ltd.
Horngren, C. T., Cost Accounting: A Managerial Emphasis, Prentice-Hall.
Kaplan, R. S., Advanced Management Accounting, Prentice-Hall (New Delhi).
Lucey, T., Management Accounting , DP Publication.
Ola, C. S., Management Accounting System, Grahan Burn.
Ola, C. S., Management Accounting: Theory and Application, Heinemann
Educational Books Nig. Plc.
76
21.4.3 PAPER 14
A.
PUBLIC SECTOR ACCOUNTING AND FINANCE
AIM
To examine candidates’
B.

familiarity with the peculiar nature of socio-economic objectives of public sector
organisations – government ministries and extra – ministerial departments,
public utilities and other economic undertakings operating in the public sector,
the problems and constraints which these pose for their operating, accounting
and reporting functions

understanding of the nature, techniques and the practice of public sector
accounting and finance

ability to generate relevant accounting information in aid of decisions in the
public sector

familiarity with accounting problems and practices of public sector
organisations.
LINKAGES
This paper is linked to papers 1, 4, 5, 11, 12, 13, 15, 17,18, & 19.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
C.
CONTENTS
1.
THE CONSTITUTIONAL & REGULATORY FRAMEWORK OF PUBLIC
SECTOR ACCOUNTING (10%)
(a)
The constitutional, legislative and regulatory context of government
accounting:
(i) the constitutional provisions on revenue, revenue allocation
and public expenditure (federal, state and local government).
(ii) the provisions of the Finance (Control and Management) Act
of 1958 (as amended).
(iii) financial Regulations for Federal and State Governments, and the
Financial Memoranda for Local Governments.
(iv) the generally accepted accounting principles applicable to the
Public Sector-Local and International sources.
(b) The economic environment of public sector accounting
(i)
performance of the Nigerian economy: a historical perspective
the economic role of the public sector.
77
2.
3.
GOVERNMENT ACCOUNTING THEORY AND PROCESSES (10%)
(a)
Accounting concepts, bases, and principles relevant to government
accounting.
(b)
The concept of funds, its relationship to the entity concept and its
implications for income measurement and valuation.
(c)
Professional pronouncements on government accounting by the United
Nations, the International Consortium on Government Financial
Management, Chartered Institute of Public Finance and Accountancy
(CIPFA) and International Federation of Accountants (IFAC).
(d)
Standardisation of Federal and State Governments accounts in
Nigeria.
FINANCIAL MANAGEMENT IN FEDERAL, STATE AND LOCAL
GOVERNMENTS (30%)
(a)
The institutional framework:
(i)
nature and types of financial controls in government.
(ii)
the financial control institutions: the Treasury Department Office
of the Accountant-General, the Planning and Budget
Department, Office of the Auditor-General, Expenditure Control
Unit - their functions and procedures.
(iii)
role of National and State Assemblies and Local Government
Councils in financial-management and control.
(iv)
source documents: revenue vouchers, payment vouchers,
journal vouchers - their format, contents and uses.
(b)
Planning and budgeting:
(i)
the principles of budgeting in the public sector.
(ii)
types of budgeting - one line budgeting, line-item budgeting,
Zero-Based, Budgeting (ZBB), Programme Performance
Budgeting System (PPBS).
(c)
Preparation and appraisal of budgets.
(i)
internal control of revenue and expenditure
(ii)
the warrant system and virement procedure
(iii)
the vote books and budgetary control
(iv)
revenue control procedures
(v)
pre-payment audit
(d)
Government accounting processes
(I)
Books of accounts - cash book, journal, and the ledger; their
preparation,
(ii)
uses and limitations.
(iii)
computerised accounting system in government accounting.
(iv)
reconciliation of accounts
(v)
consolidation of government accounts
78
(e)
Ministerial accounting system:
(i)
self and non-self accounting units
(ii)
limited self-accounting
(iii)
accounting procedures up to preparation of the trial balance and
transcripts
(iv)
preparation and posting of monthly payroll and variation control
report
(v)
pensions and pension fund accounting
(f)
(g)
Ethical issues in government accounting
Financial reporting:
(i)
(ii)
(iii)
(h)
4.
Interpretation of government financial statements
ACCOUNTING FOR PUBLIC SECTOR ORGANISATIONS: AUTHORITIES,
PARASTATALS, BOARDS, CORPORATIONS, AGENCIES AND
TERTIARY EDUCATIONAL INSTITUTIONS (20%)
(a)
(b)
(c)
5.
Preparation of statutory financial statements in the treasury
(Federal and State)
Preparation of statutory financial statements in Local
Governments
Cash flow and value added statements
The general nature of, and differences among, these bodies.
Financial provisions of enabling laws for the relevant utilities,
authorities, parastatals, boards, corporations, agencies, and tertiary
educational institutions.
Financial reporting:
(i)
receipts and payments accounts
(ii)
income and expenditure accounts
(iii)
the balance sheet
(iv)
value-added statement
(v)
cash flow statement
(vi)
five year financial summary
ANALYSIS FOR DECISIONS IN THE PUBLIC SECTOR (10%)
Application of cost and management accounting principles in governments
and governmental bodies for:
(a)
(b)
(c)
6.
Preparation of budget estimates
Pricing of services – fees and levies
Pricing and negotiating contracts
PUBLIC FINANCE (20%)
79
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
The economic environment and role of the public sector.
(i)
performance of Nigerian economy
(ii)
the economic role of the public sector
Main sources of revenue and capital finance
Nature and structure of public expenditure
Borrowing policy and public debts
(i)
funded and unfunded debts
(ii)
external loans: multilateral, Paris club, London Club, Promissory
Notes, others
Debt Management Strategies;
(i)
loans pooling and consolidation
(ii)
loan re-scheduling
(iii)
debt-equity swap
(iv)
debt forgiveness
Principles and practice of federalism; fiscal capacity and needs in
multi-level government structures.
Inter-governmental fiscal relations, Nigeria’s experience with revenue
allocation.
The theory and practice of grants in relation to state and local
government.
Project appraisal in the Public Sector
(i)
cost-benefit analysis
(ii)
cost-outcome analysis
(iii)
cost-Effectiveness analysis
(iv)
dimensions of project performance such as availability,
efficiency, outcome, effectiveness and accessibility
Rolling Plans and perspective plans;
(i)
relationship between rolling and perspective plans to PPBS
(ii)
linkages between the perspective plan, rolling plan and the
annual budgets.
80
D.
CONTACT HOURS
60
E.
RECOMMENDED TEXTBOOKS
Asechemie, D.P.S., Anatomy of Public Sector Accounting in Nigeria,
Sunray Books Limited
Awoyemi, E. O., A Guide to Government Accounting and Internal Audit,
Onibonoje Press, Ibadan
Daniel, G. I.. Public Sector Accounting, Ahmadu Bello University Press,
Zaria, 1999
Glynn, J. J., Public Sector Financial Control and Accounting, Blackwell
Hassan, M. M., Government Accounting, Malthouse Press Ltd., Lagos,
2001
Johnson, E. I., Public Sector Accounting and Financial Control,
Financial Training, Nigeria, Lagos
Jones, R. and Pendelbury, M. Public Sector Accounting, ELBS/Pitman
Federal Government of Nigeria, Constitution, 1999
Financial Regulations 2000
Financial Memoranda for Local Government
Musgrave, R. A. & Musgrave, P. B., Public Finance in Theory and
Practice, MacGraw - Hill, New York
Oshisami, K., Government Accounting and Financial Controls, Spectrum
Books Ltd., Ibadan
Robert G. Finney: Powerful Budgeting for Better Planning and
Management, American Management Association, New York, 1993.
Vatter W. J.: The Fund Theory of Accounting and its Implications for
Financial Reports. University of Chicago, Chicago, 1947.
81
21.4.4 PAPER 15
BUSINESS COMMUNICATION AND RESEARCH
METHODOLOGY
A. AIM
To examine candidates’:
B.

ability to identify researchable problems

knowledge of how to systematically and purposefully gather data from a variety
of relevant sources on chosen topics

ability to conceptualise and originate a study, define the procedure to adopt to
carry out the study and the “appropriate” method of presenting the results for
decision making

ability to appraise the quality of a research study work

ability to search for and use existing knowledge on a subject matter to form the
framework for advancement in the understanding of it (subject matter) and the
basis for advancing such knowledge

use of various methods of referencing borrowed materials from existing
published and unpublished literature.
LINKAGES
This paper is linked to all papers.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
C.
CONTENTS
1.
INTRODUCTION TO RESEARCH METHODOLOGY(5%)
(a)
(b)
(c)
(d)
Definition and purpose of research
Importance, usefulness/benefit of research
Types of research: Basic (pure) and applied
Special cases in behavioural research: Experimentation, field study
(export fact) survey, case study e.t.c
82
2.
3.
STAGES OF RESEARCH (25%)
(a)
Problem identification
(i)
problem definition in line with the aims and objectives
(ii)
formulating research questions and hypotheses
(iii)
scope and limitations of the specific research problem
(iv)
research plan
(b)
(c)
Review of related literature
Research Design and Methodology
Overview of:
(i)
research population, sample and sample size
(ii)
sampling procedures and methods
(iii)
nature of data and information including methods of data
collection
(iii)
qualities of a good questionnaire, and types of questions (open
and close-ended questions)
(d)
Questionnaire Design (its development)
(i)
aims and objectives
(ii)
developing a set of quantifiable indicators relevant to the
objectives
(iii)
drawing up a set of research questions giving the indicators
(iv)
grouping the questions into sections according to subject
matters.
(v)
measurement scales
(vi)
treatment of sensitive questions
(e)
(f)
(g)
(h)
(i)
Pilot testing validity and reliability tests
Costing of research project/ research budget
Publicity (awareness of the data collection exercise)
The main survey with logistics including personnel training
Preliminary analysis and post enumeration survey (PES)
METHODS OF DATA ANALYSIS (20%)
(a)
(b)
Data summary, tables, (1 and 2 dimensional tables) charts, graphs and
summary statistic.
Statistical tools in research methods.
(i)
a review of relevant statistical concepts and methods as
available under quantitative analysis syllabus.
(ii)
other tools in Research methods including
two sample test of mean and proportion
confidence intervals for the difference of two mean and
proportions
testing the equality of several means: analysis of
variance (ANOVA)
multiple linear regression and coefficient of determination
cross tabulation and chi-square test
83
4.
INTERPRETATION OF RESEARCH FINDINGS INCLUDING COMPUTER
PRINT OUT OF RESULTS (5%)
5.
REFERENCE AND BIBLIOGRAPHY (5%)
(i)
(ii)
(iii)
6.
STEPS IN WRITING RESEARCH PROPOSAL (10%)
(i)
7.
8.
differences between reference and bibliography
methods of referencing – Harvard, Chicago, APA schools, Library
of congress approaches
appendices (if any)
steps in writing proposal may include but not limited to:
- cover page
- an executive summary
- justification for the study
- objectives of the study
- methodology
- data gathering
- method of analysis
- the work plan
- facilities available to the researcher
- detailed budgeting
- expected results
- policy implications
- documentation
- references
EVALUATION/TESTING PROCEDURE (10%)
(a)
Candidates may be provided with practical research data and be
required to collect, analyse and generate finding, conclusions and
recommendations.
(b)
Marketing Research & Feasibility Studies
REPORT WRITING (20%)
To include:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Attribute of a good report
Presenting the findings of the study
Interpreting the findings
Methods of presenting the findings of the study
Drawing inference and conclusions from the results of the study
Developing recommendations and signposts for future research from
the findings
Executive summary
Notices, minutes, memoranda
84
D.
CONTACT HOURS:
60
E.
RECOMMENDED TEXTBOOKS
1.
Anao, A. R. & Uche C. U. Research Methodology
2.
Asika N. (1999) Research Methodology in Behavioural Sciences,
Ikeja Longman Nigeria
3.
Osuala, E. C.,(1993) Introduction to Research Methodology,
Onitsha, African-FEP Publishers Ltd.;
4.
Owojori A. A. (2002) Managerial Research Kaycee Publishers,
Ado-Ekiti
85
21.5
PROFESSIONAL EXAMINATION III
21.5.1 PAPER 16 FINANCIAL REPORTING AND AUDIT PRACTICE
A.
AIM
To examine candidates’:
B

ability to evaluate accounting practice with particular reference to
capital maintenance theory, asset valuation and disclosure and
expression of economic substance over form

ability to evaluate career developments under discussion to improve
the regulation of financial reporting

ability to analyse and interpret financial statements in an international
context

ability to apply professional ethical considerations in the practice of
financial reporting

understanding of regulatory and ethical considerations governing the
conduct of audit and assurance engagements

in-depth knowledge and skill in the application of computer based
accounting system

ability to prepare reports on specialized audits and investigations and
proffer tactical solutions to dynamic problems

ability to exercise professional competence in dealing with problems in
re-engineering, insolvency and specialized audits

ability to apply professional expertise in audit and investigation with a
view to ensuring transparency and accountability in the public sector

ability to anticipate and react to current and future audit and assurance
related services.
LINKAGES
This paper is linked to 1, 5, 6, 8, 9, 10, 11, 12, 13, 16, 18, & 19.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short
answer questions covering the entire syllabus.
SECTION B: (60 Marks) - Six questions out of which candidates are expected to
answer four.
86
C.
CONTENTS
1.
ANALYSIS OF FINANCIAL STATEMENT FOR GROUP AND NONGROUP ESTABLISHMENTS(15%)
(a)
(b)
(c)
(d)
(e)
2.
FINANCIAL VALUATIONS AND FINANCIAL REPORTING ISSUES (10%)
(a)
(b)
3.
In-depth analysis of annual report
Identification and application of financial performance indicators
Limitations of instruments of performance measurement and
annual report contents in providing required information to users
Computation, interpretation and analysis of strengths and
weaknesses of ratios to assess the areas of profitability,
financial adaptability, liquidity, activity of the business, gearing
and other performance indicators
Different levels of performance evaluation, inter-firm, targets,
historical achievements, international, departmental or segment
analysis
Financial valuations
(i) business valuation
(ii) valuation of shares
(iii) tangible and intangible assets valuation
Financial Reporting Issues
(i) earnings per share, including the effect of bonus issues,
rights issues and convertible loan stock
(ii) reconstruction - formulation of schemes
(iii) application of principle of substance over form to:
purchase agreement
debt factoring
secured assets
loan transfer
consignment of stock
private financing initiative
(iv) capitalization of interest
(v) measurement and disclosure of financial instruments
(vi) environmental and social responsibility accounting and
reporting
(vii) human resources accounting
INTERNATIONAL ACCOUNTING (5%)
(a)
Accounting for multi-national organisations
87
(b)
(c)
(d)
4.
AUDIT PLANNING AND CONTROL (10%)
(a)
(b)
(c)
(d)
5.
Foreign exchange arithmetic, conversion into foreign
currency and factors affecting rates of exchange, rates
adjustments, cross rates and arbitrage
Comparison and full discussion of selected Generally Accepted
Accounting Principles (GAAP’s) of United Kingdom, United
States of America, International Accounting Standards and
Nigerian Statements of Accounting Standards in preparation
and interpretation of financial statements
Inflation accounting - application to multi-national organisation
financial statements.
Development of audit strategy
(i)
determination and uses of quantitative and qualitative
materiality consideration
(ii)
multiple locations and consolidated organizations
consideration.
Determination of audit risks
(i)
inherent risks
(ii)
control risks
(iii)
detection risks
Execution of audit strategy
(i)
documentation and assessment of control systems
(ii)
nature, extent and timing of audit procedures
Organising, audit working papers and working with specialist
reports.
MANAGEMENT OF AUDIT PRACTICE (10%)
(a)
(b)
(c)
(d)
(e)
Organisation and conduct of professional office:
(i)
office and office facilities
(ii)
partners relationship
(iii)
staff management
(iv)
quality control
(v)
training
Standards for assurance engagement
(i)
definition and underlying concept of assurance
engagement
(ii)
quality control practices and procedures, advertising and
publicity, fees, tendering, engagement letters, and
consultation
(iii)
performance and reporting standards
Appraisal of expectation gap, responsibilities for fraud detection,
prevention, reporting errors, omissions, misstatements and
other irregularities. Case studies and implication of new
developments from researches, decided cases, standards and
other sources.
Negotiation skill: for own office and on behalf of clients
Auditors’ liability
88
6.
PUBLIC SECTOR AUDIT (10%)
(a)
(b)
(c)
(d)
(e)
(f)
7.
SPECIALISED AUDIT AND INVESTIGATION
(a)
(b)
(c)
(d)
(e)
8.
Audit of corporations and parastatals.
Specialised audits: contracts, pensions, defence and security
agencies,
Audit of Nigerian foreign missions and agencies .
Value for money audit.
Investigation in the public sector: use of probe panel in
investigating fraud and corruption.
Due process review
(15%)
Understanding of special features of the following types of
organizations (i)
farmers, professionals, hospitals, hotels etc.
(ii)
forensic investigation and audit,
(i)
Specific audit difficulties relating to financial
institutions:- banks, insurance, companies, primary
mortgage institutions etc.
(ii)
audit of not-for profit organizations – charities, NGO’s
Joint audit.
Investigation
(i)
distinction between auditing and investigation.
(ii)
nature, classes and methods of investigation.
(iii)
auditors’ involvement with prospectuses and other offer
documents.
(iv)
examination of financial forecasts and projections.
(v)
the report appropriate to each type of investigation.
Insolvency
(i)
various legal processes involved in corporate distress.
(ii)
differences between receivership, receiver/manager,
bankruptcy and liquidation.
(iii)
implications of insolvency for corporate governance and
going concern threats.
PRINCIPLES AND APPLICATION OF PROFESSIONAL
ETHICS(15%)
(a)
(b)
(c)
(d)
(e)
(f)
The nature of ethics; differentiation between philosophical and
professional approach.
Concepts of integrity, obligation, independence, public
expectations.
Ethics and the professions; social responsibility
Ethics and the law
Consequences of unethical behaviour to the individual, to the
profession and to society at large
Ethical standards and professional responsibilities, professional
independence, confidentiality, objectivity, securing professional
work, consultancy, succession arrangement, disciplinary
89
(g)
(h)
9.
procedures, compliance with standards and professional
development.
Relationship with fellow members, joint engagements,
communication with predecessor, special assignment and other
assurance services.
Corporate Governance:
(i)
auditors responsibility in relation to shareholders
information and participation rights.
(ii)
the duties and organizations of the board of directors and
the management.
(iii)
systems of checks and balances.
CASE STUDY10%
D.
CONTACT HOURS 90
E.
RECOMMENDED TEXTBOOKS
Alenxander, D. and Balttan, A., Financial Reporting, International
Thomson Business Press.
Beaver, W. N., Financial Reporting, An Accounting Revolution, Prentice
Hall
Chambers, A. N. and Court, J. N., Computer Auditing, Pitmans.
Griffin, P. A., Cases in Corporate Finance Reporting, Prentice-Hall.
IFAC, IFAC Guidelines, Gee & Co.
Lee, T. A., Corporate Audit Theory, Chapman & Hall.
Swinson, C. H. Group Accounts, Butterworths.
Topples, B. S., Consolidated Accounts, Accounting Tuition Centres.
Woolf, E. Auditing Today, Prentice Hall International.
90
21.5.2 PAPER 17 STRATEGIC FINANCIAL MANAGEMENT
A. AIM
To examine candidates’:
B.

understanding of the principles of business strategy and ability to
differentiate between corporate strategy and financial strategy

familiarity with the major concepts, techniques and tools employed in the
sourcing of business finance and its efficient deployment to optimize the
value of the business

ability to apply appropriate Financial Management techniques in analysing
the cost and benefits of various sources of finance and capital investment
opportunities allowing for the effects of taxation, inflation, risk and
uncertainty

familiarity with financial market operations including appreciation of the role
of financial intermediaries in the provision of short, medium and long term
funds

understanding the need for as well as the techniques of, and approaches to
corporate re-organisation and re-engineering

ability to analyse the changing competitive business and economic
environment factors (including the impact of Information and
Communication Technology - ICT) and to formulate appropriate financial
strategy

Familiarity with recent developments in Financial Management as well as
the international dimensions of Financial Management

Ability to analyse and interprete case studies and present adequate and
consice report for decision-making.
LINKAGES
This paper is linked to papers 1, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18 and
19.
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
91
C.
CONTENTS
1. NATURE AND SCOPE OF STRATEGIC FINANCIAL MANAGEMENT (10%)
(a)
(b)
(c)
Scope of Strategic Financial Management
Goals and Objectives of Corporate Strategy
Financial Objectives of both profit and not-for-profit organisations maximizing shareholders wealth, value for money, providing a surplus
e.t.c.
Principles of corporate governance: relationship between the
company, management and other stakeholders. Scope of directors’
responsibilities, adequacy of disclosure requirements, creative accounting,
window dressing, e.t.c. Directors’ remuneration and perquisities, rewards
and sanctions.
The effect of good and bad corporate governance on the value of the
business via share price
The Nigerian capital market and the developments in terms of depth and
breadth
The nature and functions of money and capital markets. Distinctions
between the two markets. Instruments of each of the markets: nature,
characteristics, advantages and disadvantages.
Key participants;
individuals, companies, banks, non-bank financial institutions and
Government agencies e.g. Central Bank of Nigeria (CBN), Nigerian Stock
Exchange (NSE), Securities and Exchange Commission (SEC)
Functions of the treasury manager in relation to corporate objectives,
working capital management, currency management e.t.c.
(d)
(e)
(f)
(g)
(h)
2.
CORPORATE STRATEGY INFORMATION AND FINANCIAL
MANAGEMENT (5%)
(i) corporate strategy
(a)
(c)
(d)
(e)
Types and importance of strategy including the relationship
between
corporate strategy and financial strategy
Long-term strategic planning, and differences between strategic,
tactical and operational planning
Development of a corporate plan and its relationship to budgeting
Long-term financial planning
Total Quality Management (TQM)
(ii)
information and financial management
(a)
The impact of Information and Communication Technology on financial
management practice e.g. e-commerce, e-banking, e-business risk, egovernment
Essentials of financial Management Information and Reports such as economic reality, relevance, timing, accuracy - and the implications of
uncertainties for reports, statements and analyses given by the Financial
Manager
(b)
(b)
92
3.
CAPITAL INVESTMENT DECISIONS (15%)
(a)
(b)
(c)
(d)
(e)
(f)
4.
FINANCIAL, CAPITAL STRUCTURE AND DIVIDEND POLICY DECISIONS (15%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
5.
Mathematics of finance - time value of money, present value, yield on
investments, loan amortisation, sinking fund e.t.c
Capital expenditure planning and control and the identification and
evaluation of investment opportunities including risk and return
relationship
Techniques of investment appraisal including payback period,
discounted payback period, return on investment, NPV, IRR, “Modified”
IRR, PI, Cost-Benefit-Analysis, Value for money
Evaluation of capital projects: Capital rationing including application
of Linear programming in Multi-period capital rationing, replacement
and abandonment decisions
Advanced Manufacturing Technology (AMT) and project appraisal
techniques: types of AMT investments, relevance and shortcomings of
current appraisal techniques in evaluating AMT investments
Treatment of inflation, taxation, risk and uncertainty and the effects of
government policies on investment decisions
Identification and evaluation of various sources of finance: Share
capital, Loan capital, convertibles and warrants, trade credit and bank
finance
The concept and measurement of the various costs of capital - equity,
preference shares, debentures and loan stocks
Optimal capital mix: evaluation and determination of financial
requirements of corporate entities and organisations emphasising the
factors which influence the choice of capital structure: Weighted Average
Cost of Capital (WACC). Weighted net income/net operating income
approach (Modigliani and Miller concept)
Active and passive dividend policies and factors influencing dividend
policies
Types of dividends - cash dividend and stock dividend
Legal and procedural aspects of dividend payment in Nigeria
Relevance and irrelevance theories of dividend policy to the value of firm
CAPITAL MARKET FINANCING AND RISK MANAGEMENT (10%)
(a) Public issues: methods and procedures for new issues
(b) The cost of new issues
(c) Rights issues: the mechanics of rights issues, subscription price,
theoretical ex-rights price, value of rights, effects of rights issues on the
price of the shares and on share holdings, underwriting arrangements
(d) Private placing: methods of issue
(e) Public issue of bonds and debentures
(f) Leasing: Definition, types of lease (operating leases, finance leases),
advantages and disadvantages, accounting and tax management of
leases. After tax analysis of lease/buy/borrow and hire purchase
93
(g)
Capital market efficiency - forms and tests of efficiency, implications of
the efficiency of the market
(h) The applicability of market efficiency to the Nigerian capital market and
empirical evidence of tests on the market
(i) Portfolio analysis: selection and decision techniques
(j) The market models - Capital Asset Pricing Model (CAPM), Arbitrage
Pricing Model (APM)
(k) Measurement for portfolio performance
6.
CORPORATE RE-STRUCTURING, MERGERS AND ACQUISITIONS
(15%)
(a) The need and purpose of restructuring
(b) Types of restructuring, take-overs, leveraged buy-outs, distress
restructuring
(c) Valuation of financial assets, business units and entities
(d) Features of a merger, estimating the economic gains and costs of
mergers
(e) Basic forms of acquisitions
(f) Motives for mergers and acquisitions
(g) The mechanics and tactics of a merger
(h) Evaluating financial performance of merged companies including
reasons for their successes and failures
(i) The impact and effects of government regulations on mergers and
acquisitions
7.
FINANCIAL MANAGEMENT OF SMALL & MEDIUM SCALE
ENTERPRISES (10%)
(a) SME’s and capital Investment appraisal techniques
(b) Justification for the use of popular but incorrect techniques such as
pay back, and ARR
(c) The need for SME’s to embrace the use of DCF techniques viz NPV,
IRR e.t.c.
(d) Determination of financial needs of SME’s, problems of SME’s financing,
accessibility to other sources of finance such as venture capital, cheaper
government fund, government grants and subvention as well as
International funds.
8.
INTERNATIONAL FINANCIAL MANAGEMENT (10%)
(a)
(b)
(c)
(d)
International financial markets and their associated risks including
interests rate determination Currency, futures and options markets:
Future contracts, currency options, commodity exchange e.t.c
Exchange rate determination, identification and management of
exchange rate risk exposure
Hedging against currency risks
The role of the following financial institutions in financing international
trade: Nigerian Export - Import (NEXIM) Bank, African-Export-Import
Bank (AFREXIM), Bank of Industries (BOI), African Development Bank
(ADB), International Monetary Fund (IMF), World Bank, International
Finance Corporation (IFC), the Paris Club, London Club e.t.c.
94
9.
CASE STUDY
(10%)
D.
CONTACT HOURS
120
E.
RECOMMENDED TEXTBOOKS
Alile, H. and Anao, A. R., Nigerian Stock Market in Operation, Nigerian Stock
Exchange
Shapiro Alan C., Multinational Financial Management, New Delhi; Prentice Hall
of India
Private Limited, Fourth Edition.
Holland John, International Financial Management; United Kingdom, Blackwell
Publishers.
Richard A. Brealer & Stewart C. Myers: Principles of Corporate Finance, U.S.A.,
Fourth Edition
Kayode, A. J., Financial Management - Students Manual; AJK Limited
Marsh, W.H. & Kunlanslay: Case Problems in Financial Management; Prentice
Hall
Pinches, G. E., Essentials of Financial Management, Harper & Row
Samuels, J. M. & Wilkes, F.N., Management of Company Finance, Van
Nostrand Reinhold
Van Horne, J. C., Fundamentals of Financial Management, Englewood Cliffs, N.
J. Prentice - Hall
95
21.5.3
PAPER 18: TAX MANAGEMENT AND FISCAL POLICY
A. AIM
To examine candidates’:

appreciation of the importance of taxation in personal and corporate financial
planning and decision-making

ability to identify and avail clients of the opportunities for minimizing potential
tax liability by making full use of available options

knowledge of the components of government’s fiscal policy functions which
influence government’s exercise of its power to tax.
B. LINKAGES
This paper is linked to papers 1,3,5, 8, 7, 11, 9, 14, 15, 12, 16, and 19
The Paper will be a three-hour paper divided into two sections.
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Answer questions one and any other three questions.
C.
CONTENTS
1.
PETROLEUM PROFITS TAX (PPT) (20%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
Administration of PPT Cap 354 LFN. 1990
Understanding the nature and classification of income
Understanding the nature and classification of costs
Ascertainment of adjusted profits and imposition of costs
Allowable and non-allowable deductions
Treatment of losses
Computation of capital allowance
Tax offsets, petroleum investment allowance, computation of
chargeable tax and the concept of additional tax
Knowledge of the concept and computations of posted
prices
Familiarization with memorandum of understanding (MOU)
as it applies to petroleum prospecting companies
Incentives available to companies engaged in the utilization of
associated gas objectives and nature of incentives
Understanding the Joint Venture (JV) contracts and Production
Sharing Contracts (PSC) as they apply to petroleum operations
96
2.
CAPITAL GAINS TAX (CGT) 10%
(a)
(b)
(c)
(d)
3.
(e)
Disposal and acquisition of assets:
(i)
hire purchase transactions.
(ii)
part disposal
(iii)
connected persons
(iv)
consideration aspect
(v)
death
(vi)
asset lost or destroyed
(viii) bargains comprising two or more transactions.
(f)
Planning for tax savings in capital gains tax.
(g)
Reliefs:
(i)
delayed remittances or gains.
(ii)
double taxation relief
(iii)
roll-over relief.
(h)
Other matters e.g. partnerships, legatees, artificial transactions.
CORPORATE TAXATION INCLUDING TAXATION OF INCOME, PIONEER
ACTIVITIES AND DOUBLE TAXATION RELIEF (20%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(h)
4.
Administration of CGT Act
Nature and objectives of capital gains tax.
Allowable and disallowable expenditures and computation of
chargeable gains.
Exemptions from capital gains tax.
Computation of tax liabilities of various companies including down
stream operations under CITA 1979 (as amended)
Planning for direct and indirect tax savings
Critical review of tax avoidance schemes
Pioneer legislation
Double taxation relief
Tax implication of mergers, acquisitions and take-over bids
Concepts and applications of deferred taxation
Tax distortion under inflationary conditions
Tax distortion under inflationary conditions
TAX PRACTICE AND ADMINISTRATION (20%)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
Nature and purpose of revenue enquiry
Revenue Department’s procedures
Ethical issues – implication of confidentiality, conflict of interest and
disclosure of information on tax practice
Tax audit and investigation
Interpretation of tax laws using decided cases
Communication skills
Tax effects of privatization and commercialization
97
(h)
(i)
5.
FISCAL POLICY
(a)
(b)
(c)
(d)
(e)
(f)
(g)
6.
The incidence, allocative, distributional and stabilization effects of
different forms of taxation and current expenditure in Nigeria and the
implication of all these to her membership of ECOWAS.
Case presentation before body of Appeal Commissioners.
(10%)
Public debt as an alternative to taxation-its causes and
consequences.
The macro-economic framework for national income analysis. The
Keynesian model, stabilisation policies.
The incidence, allocative, distributional and stabilisation effects of
different forms of taxation and current expenditure in Nigeria and the
implications of all these to her membership of ECOWAS. Public debt
as an alternative to taxation - its causes and consequences.
Assessment of public sector projects and services. Elements of cost
and benefit analysis.
Appraisal of public sector economic
performance.
Principles and practice of fiscal federalism. Fiscal capacity and needs
in multi-level government structures
Inter-governmental fiscal relations. Nigeria’s experience with revenue
allocation.
The theory and practice of grants in relation to state and local
governments.
CASE STUDY (20%)
NOTES
(1)
(2)
(3)
(4)
Candidates will be provided with tables of rates and allowances.
Candidates should be conversant with relevant decided cases
and statutory provisions.
Candidates are expected to be conversant with annual budgetary
provisions.
New legislations and budgetary provisions shall become
examinable after 6 months from the date of issue or enactment.
98
D.
CONTACT HOURS:
60
E.
RECOMMENDED TEXTBOOKS
Adesola, S.M., Income Tax Law and Administration in Nigeria, Obafemi Awolowo
University Press.
Agyei, A. K., Capital Gains Tax, Graham Burn.
Akawe, O., The Power to Tax and Federalism in Nigeria, Centre for Business
and Investment Studies, Lagos.
Ani, A. A., et al., Companies Income Tax and Petroleum Profit Tax in Nigeria, UPL.
Ariwodola, J. A., Companies Taxation in Nigeria, JAA Nigeria Limited.
CITN, Nigerian Tax Laws. CITN Tax guide & Statistic
Federal Inland Revenue Service, Annual Budget of Fed. Republic of Nigeria
Musgrave, R. A. and Musgrave, P. B.,
McGraw-Hill, New York.
Public Finance in Theory and Practice,
Ola, C. S., Nigerian Income Tax Law and Practice, CSS Ltd., Lagos.
Oremade, B. T., Petroleum Profits Tax in Nigeria, Evans Brothers, Ibadan.
Shaw, G. K. and Peacock, A.T., The Economic Theory of Fiscal Policy,
London, Allen and Unwin.
Uche¸R. U., Petroleum Accounting and Taxation in Nigeria, Alexander Books
Associates, Oakland, California
Joint Tax Board, Decided Cases by the Body of Appeal Commissioners.
99
21.5.4 PAPER 19
MULTIDISCIPLINARY CASE STUDY
A. AIM
To instil in the candidates the requisite communication and analytical skills, and
ability to use knowledge gained from various courses to analyse different aspects of
a case presented and proffer appropriate solutions consisting of possible alternative
courses of actions and assessing their merits and demerits, costs and benefits and
recognizing implementations or interface with other problems.
OBJECTIVES
B.

Update, evaluate and integrate the knowledge and skills acquired
Develop professional solutions to business problems involving skills in
judgment

Report solutions to business problems in an appropriate manner
Evaluate business plans and appraise the related strategy from all
stakeholders’ perspectives

Tailor advice appropriate to the business scale and sector

Give value added advice on business improvements

Advise on the developments of improved financial structures

Exercise ethical judgment.
LINKAGES
This paper is linked to ALL subjects at all levels of the examination. However, the
examination in this paper requires the application of the principles, concepts, tools
and techniques acquired throughout the study for the Institute’s examination as
covered in this syllabus.
The paper will be a five and a half hour paper divided into two sections. Candidates
are expected to spend the first two hours reading the case. This will be followed by
a 30 minutes break after which candidates are expected to spend three hours
answering the questions (i.e sections A and B).
SECTION A: (40 Marks) - A number of compulsory multiple choice and short answer
questions covering the entire syllabus.
SECTION B: (60 Marks) - Case Study questions. All questions related to the case are to be
answered.
100
C.
CONTENTS
1.
INTRODUCTION
Examination in this paper consists of analysis of information pertaining to a
typical organizational problem and the presentation, with adequate
justification, of a recommended course of action.
Candidates will be required to study the brief provided carefully, analyse the
information provided therein, develop alternatives and propose a realistic
course of action.
This paper draws on the knowledge and skills acquired by candidates from
the various subjects featured in the entire syllabus as well as from their work
experience. The case presented would be realistic and stimulate a real life
situation and also span several of the distinct skill areas of accountancy and
management practice. Consequently, candidates will be called upon to adopt
a holistic perspective in proffering their solution.
2.
REQUIREMENTS
Candidates must endeavour to:
3.
(a)
understand that the case is a pseudo practical.
(b)
identify and draw out the salient information, which is germane to the
problem in hand and make realistic assumptions in respect of those
areas where inadequate information is given in the brief
(c)
choose analytical techniques, which are appropriate to the resolution of
the problem
(d)
recognize and develop appropriate responses to the ethical issues
raised in the problem
(e)
understand clearly the pertinent issues at play in the case
(f)
communicate effectively findings, solutions and recommendations.
(g)
make judgment concerning the efficient use of the time available for
the analysis and presentation of the recommended solution
OTHER AREAS OF SYLLABUS COVERAGE
Candidates may be examined in all subjects of papers 1-18 including the
following:
(a)
Corporate Plan
(i)
objectives and goals
(ii)
performance Indicators
(iii)
evaluate Corporate Strategy
101
b)
Corporate Strategies and Management
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(c)
Business Improvement
(i)
(ii)
(iii)
(iv)
(v)
(vii)
Project Evaluation Management
Business Processes
Change Management
Competitive Skills
Negotiation Skills
Forecasting
(d)
Management of Financial Structure
(i)
Balance Sheet Management
(ii)
Finance and Treasury Solutions
(iiv) Tax Planning and Fiscal Policy Issues
(e)
Ethical Issues
(i)
(ii)
(iii)
(iv)
D.
Organisational Structure and Strategy
Corporate Governance
Business Risk Identification, Evaluation and Management
Product Portfolio Analysis
Operations Management and Controls
Human Resources Strategy & Management
Marketing Strategy
Information Technology
Management of Intellectual Capital
Business Restructuring, re-organizations, Mergers
Acquisitions
Interpersonal Relationship
Management Style and Leadership
Culture
Members Codes of Conduct
The Accountants, Laws and regulations.
General Business ethics
Global view/ethical considerations.
(f)
Decision Making Techniques and Tools
(g)
Operations Research
(h)
Accounting Policies and Standards
(i)
Communication Skills
CONTACT HOURS:
75
102
and