CAF Syllabus PDF

CAF SYLLABUS
Autumn 2020
SYLLABUS
Proficiency level and testing level mentioned against each content of the syllabus are explained as
follows:
1. Proficiency Level
a. Level 1
This level requires understanding and awareness of the subject matter and related concepts. The
candidates will be expected to have ability to understand the nature of basic concepts.
b. Level 2
This level requires good understanding and detailed evaluation of the subject matter and related
concepts, along with the ability to apply concepts and skills in simple professional scenario. The
candidates will be expected to have ability to provide reasonable justification and logical
explanation to support their professional judgment and decision making.
c. Level 3
This level requires in-depth understanding of the subject matter and related concepts. The
candidates will be expected to have ability to critically examine and evaluate all concepts and
available information to make firm professional judgments and make decisions.
2. *Testing Level and assessment of contents of earlier stages of qualification
The following policy for testing level and assessment of contents shall be applicable for Accounting
related subjects i.e. (CAF 1 Introduction to Accounting, CAF 5 Financial Accounting and Reporting-I,
CAF 7 Financial Accounting and Reporting-II and CFAP 1 Advanced Accounting and Financial
Reporting)
a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a
limit of 8 marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum
limit per question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have
a maximum limit of 35 marks in aggregate in an attempt.
*Explanation: A topic of CAF 1 can be examined in CAF 5, CAF 7 and CFAP 1 even if it is not in the
syllabus or study material of the later stage papers, likewise CAF 5 topics can be examined in CAF 7 and
CFAP 1; and CAF 7 topics can be examined in CFAP 1.
1 CAF Syllabus Autumn 2020

TABLE OF CONTENTS
Syllabus Page No.
CERTIFICATE IN ACCOUTING AND FINANCE
CAF-1 INTRODUCTION TO ACCOUNTING 03
CAF-2 INTRODUCTION TO ECONOMICS AND FINANCE 10
CAF-3 BUSINESS LAW 21
CAF-4 BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES 34
CAF-5 FINANCIAL ACCOUNTING AND REPORTING I 42
CAF-6 PRINCIPLES OF TAXATION 47
CAF-7 FINANCIAL ACCOUNTING AND REPORTING II 53
CAF-8 COST AND MANAGEMENT ACCOUNTING 59
CAF-9 AUDIT AND ASSURANCE 67
PCSC PRESENTATION AND COMMUNICATION SKILLS COURSE 80
GWE 01 *GATEWAY EXAMINATIONS 81
GWE 02 *GATEWAY EXAMINATIONS 84

CAF-1
CERTIFICATE IN ACCOUNTING AND FINANCE
INTRODUCTION TO ACCOUNTING
Objective
To enable candidates to equip themselves with the fundamental concepts of accounts needed as a foundation
for higher studies of accounting.
Learning Outcome
On the successful completion of this paper candidates will be able to:
understand the nature of accounting, elements of accounts, double entry rules and conceptual
1
framework for financial reporting.
2 identify financial transactions and make journal entries.
3 prepare general ledger accounts and a trial balance.
4 make period end adjustments prior to the completion of financial statements.
have familiarity with the items shown on the face of statement of financial position and statement of
5
comprehensive income.
6 prepare partnership accounts.
understand the basic concepts given in international accounting standards on inventories and
7
Property, plant and equipment.
Grid Weighting
Introduction to accounting and book keeping 20-30
Adjustments including corrections of errors 20-30
Preparation of financial statements and partnership records 20-30
Inventories and Property, plant and equipment 20-30
Total 100
Note: * Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018

Level Learning Outcomes
Syllabus
Contents Proficiency Testing
Ref
Introduction to accounting
A
and bookkeeping
1 Introduction to accounting 1 1 LO1.1.1: Explain the characteristic of a
 Meaning of business business
 Mode of business LO1.1.2: Classify transactions that fall
organization (meaning) under the definition of business
- sole proprietorship; transactions
partnership; limited
company LO1.1.3: Describe the key features of sole
 Financial statements- proprietorship, partnership and limited
components, company
responsibility, LO1.1.4: Differentiate amongst the
presentation, users
features of sole proprietorship,
partnership and limited company
LO1.1.5: List the components of a set of
financial statements.
LO1.1.6: Explain the characteristics and
purpose of the statement of financial
position and the statement of
comprehensive income.
LO1.1.7: Describe the basic presentation
layout of statements of financial position
and statements of comprehensive
income.
LO1.1.8: Identify users of financial
information and describe how the
information is useful to them
2 Conceptual Framework for 2 1 LO1.2.1: Explain the difference between
Financial Reporting book-keeping and accounting
 Fundamental accounting LO1.2.2: Understand and apply the main
concepts - accrual, accounting concepts, namely, accrual,
consistency, true and fair consistency, and completeness
view, materiality,
prudence, completeness, LO1.2.3: Demonstrate familiarity with the
going concern, substance concepts of true and fair view,
over form

Syllabus
Ref
 Elements of financial materiality, prudence, going concern and

statements (meaning) - substance over form
Assets, liabilities, equity,
LO1.2.4: Define and identify examples of
income, expense
assets, liabilities, equity, income and
expenses
LO1.2.5: Apply the underlying concepts
of assets, liabilities, income and
expenses.
3 Accounting equation 2 1 LO1.3.1: Understand and apply the
accounting equation (Assets = Liabilities +
Equity)
4 Double Entry book keeping 2 2 LO1.4.1: identify financial and non-
system financial transactions in a well-defined
 Rules of debit and credit scenario
and Chart of accounts LO1.4.2: Understand and apply the
 Books of prime entry concept of double entry accounting
 Ledgers
LO1.4.3: Understand the use of business
 Trial balance
documents as source of information
LO1.4.4: Understand the meaning of a
chart of accounts and explain its purpose.
LO1.4.5: Describe the basic contents of
the sales day book, sales ledger,
customer/debtors ledger, purchase day
book, purchase journal and purchase
ledger/creditors ledger
LO1.4.6: Understand the use and format
of the cash book and its types
LO1.4.7: Record their respective entries.
LO1.4.8: Describe the main features of
the general ledger
LO1.4.9: Post entries in the general
ledger

Syllabus
Ref
LO1.4.10: Balance the ledger accounts as

required, make transfers to the final
accounts.
LO1.4.11: Understand the purpose of the
trial balance
LO1.4.12: Understand and demonstrate
mapping between general ledger
balances and the trial balance
LO1.4.13: Identify the limitations of a trial
balance.
B Adjustments including
corrections of errors
1 Allowance for bad debts and 2 1 LO2.1.1: Estimate allowance for bad debts
write off based on a given policy
LO2.1.2: Post journal entry to record bad
debt expense
LO2.1.3: Compute and record write off
and understand its impact on allowance
for bad debts.
2 Prepayments and accruals 2 1 LO2.2.1: Understand the matching
concept that applies to prepayments and
accruals.
LO2.2.2: Post journal entries and ledger
entries for prepayments and accruals.
LO2.2.3: Post adjusting entries to
recognize revenues or expenses
3 Bank reconciliation and 2 2 LO2.3.1: Understand the need for a bank
related adjustments reconciliation
LO2.3.2: Identify the main reasons for
differences between the cash book and
bank statements.
LO2.3.3: Prepare a bank reconciliation
statement in the circumstance of simple
and well explained transactions.

Syllabus
Ref
LO2.3.4: Correct cash book errors and

post journal entries after identifying the
same in bank reconciliation statement
4 Correction of errors in record 2 2 LO2.4.1: Identify the types of error which
keeping may occur in a record keeping system
LO2.4.2: Calculate and understand the
impact of errors on the financial
statements within a reporting period
LO2.4.3: Prepare journal entries to
correct errors that have occurred within a
reporting period
C Preparation of financial
statements and partnership
records
1 IAS 1: Preparation of 2 2 LO3.1.1: Prepare face of the statements of
financial statements financial position from information
 Statement of financial provided (No adjustments with regard to
position (items to be dividend, taxation and share capital).
shown on the face) LO3.1.2: Prepare face of statement of
comprehensive income from information
 Statement of
provided (No adjustments with regard to
Comprehensive Income
(items to be shown on dividend and taxation.
the face)
2 Preparation of partnership 2 2 LO3.2.1: Define a partnership and state its
account essential elements
LO3.2.2: Understand goodwill
LO3.2.3: Prepare
 Capital account
 Current account
LO3.2.4: Prepare a profit and loss
account and a statement of financial
position of a partnership.

Syllabus
Ref
D Inventories & Property,

Plant and equipment
1 IAS 2: Inventories 2 2 LO4.1.1: Calculate cost of inventory in
accordance with IAS-2 using data
provided including cost of purchase, cost
of conversions, and other costs.
LO4.1.2: Describe net realizable value
(NRV)
LO4.1.3: Explain the situation when the
cost of inventories may not be
recoverable.
LO4.1.4: Demonstrate the steps in
measuring inventory at lower of cost or
NRV.
LO4.1.5: Post journal entries for
adjustments in carrying value (excluding
reversal of write downs)
LO4.1.6: Understand the disclosure
requirements and prepare extracts of
necessary disclosures (excluding pledged
inventories and reversal of write downs)
2 IAS 16: Property, plant and 2 2 LO4.2.1: Calculate the cost on initial
equipment (other than recognition of property, plant and
disclosure and revaluation) equipment in accordance with IAS-16
including different elements of cost and
the measurement of cost
LO4.2.2: Analyse subsequent expenditure
that may be capitalised, distinguishing
between capital and revenue items.
LO4.2.3: Explain the nature of
depreciation expense and accumulated
depreciation
LO4.2.4: Compute depreciation for assets
using different depreciation methods

Syllabus
Ref
LO4.2.5: Post journal entry to record

depreciation expense
LO4.2.6: Account for de-recognition of
property, plant and equipment recognised
earlier under cost methods
LO4.2.7: Understand the disposal of Fixed
Assets and gain/loss on disposal
LO4.2.8: Post journal entries of disposal
and gain or loss on disposal
*Testing Level and assessment of contents of earlier stages of qualification

CAF-2
INTRODUCTION TO ECONOMICS AND FINANCE
Objective
To enable candidates to equip themselves with the fundamental concepts of economics and finance
needed as foundation for higher studies of finance.
Learning Outcome
The candidate will be able to:
1 understand the nature of micro-economics and its basic concepts
2 understand the nature of macro-economics and its relation with the measurement of economic
growth
3 understand how the balance of payments of a country is worked out
4 understand the nature of banking systems
5 understand the basic function of financial markets.
Grid Weightage
Concepts of economics 5-10
Microeconomics 25-35
Macroeconomics 25-35
Introduction to banking system, financial markets and international trade 25-35
Total 100
Syllabus
Contents Level Learning Outcome
Ref
A Concepts of economics
1 Fundamentals of economics 1 LO1.1.1: Overview of the definitions of
economics put forward by Adam Smith,
Alfred Marshall and Lionel Robbins
LO1.1.2: Describe the scope, objectives
and importance of economics
LO1.1.3: Describe the concept of
scarcity, kinds of scarce resources,
choices and wants
LO1.1.4: Describe, with examples, the
concept of economic problem and its
implications for an economy

Syllabus
Ref
LO1.1.5: Describe the concepts of
goods and services and identify various
types of goods namely merit goods,
demerit goods, public goods, private
goods, club goods and free goods
LO1.1.6: Explain with examples the four
factors of production and identify the
rewards of factors of production
economic agents, consumption,
production and specialisation, division
of labour, technology and capital
formation
LO1.1.8: Describe the production
possibility curve and its relevance to
the concept of opportunity cost
LO1.1.9: Differentiate between
microeconomics and macroeconomics
and their scope, importance and
limitations.
LO1.1.10: Distinguish income from
wealth.
2 Economic systems 1 LO1.2.1: Describe the major functions

of an economic system
LO1.2.2: Explain the salient features of
planned, mixed , market economy and
Islamic economic system
LO1.2.3: Provide example of a mixed
economy, a planned economy and a
market economy
LO1.2.4: Describe the merits and
demerits of planned, mixed and market
economies
LO1.2.5: Compare the Islamic economic
system with other economic systems.

Syllabus
Ref
B Microeconomics
1 Demand 2 LO2.1.1: Define the concept of demand,
state the differences between want and
demand and individual and market
demand
LO2.1.2: Define and explain law of
demand with the help of schedule and
graph and explain assumptions and
limitations of the law
LO2.1.3: Identify the movements along
and shifts of a demand curve and
explain the factors responsible
LO2.1.4: Assess the practical
importance of law of demand.
2 Supply 2 LO2.2.1: Define supply and differentiate
it from stock
LO2.2.2: State law of supply and explain
its assumptions
LO2.2.3: Interpret the relationship
between price and supply with the help
of schedule and graph
LO2.2.4: Describe movement along the
supply curve and shift in supply
LO2.2.5: Discuss the relation between
time and supply
LO2.2.6: Define reserve price and
discuss the factors influencing reserve
price
LO2.2.7: Assess the practical
importance of law of supply.
3 Equilibrium of demand and supply 2 LO2.3.1: Define the concept of market
and market equilibrium
LO2.3.2: Explain the determination of
price by equilibrium of demand and
supply with the help of a schedule and
graph
LO2.3.3: Explain the effect of changes in
demand and supply on market
equilibrium

Syllabus
Ref
LO2.3.4: Discuss the determination of
price of perishable and durable goods.
4 Elasticity of demand and supply 2 LO2.4.1: Define price elasticity of
demand and explain the degrees of
price elasticity of demand
LO2.4.2: Explain approaches to
measure price elasticity of demand
LO2.4.3: Explain practical importance
and determinants of price elasticity of
demand
LO2.4.4: Discuss income and cross
elasticity of demand and their practical
importance
elasticity of supply and explain the
percentage and graphical methods of
measurement of elasticity of supply
LO2.4.6: Describe the determinants of
supply elasticity.
5 Utility analysis and indifference curve 2 LO2.5.1: Define the term “utility”, total
and marginal utility
LO2.5.2: Explain the law of diminishing
marginal utility with the help of a graph
and a schedule
LO2.5.3: Explain the assumptions,
limitations and practical importance of
the law of diminishing marginal utility
LO2.5.4: Explain the law of equi-
marginal utility with the help of a
schedule and a graph
LO2.5.5: Explain the limitations and
practical importance of law of equi-
marginal utility
LO2.5.6: Describe the meaning and
characteristics of indifference curves
LO2.5.7: Explain Budget line and
consumer’s equilibrium through
indifference curve analysis

Syllabus
Ref
LO2.5.8: Explain the income effect,
price effect and substitution effect on
consumer equilibrium.
6 Laws of production 2 LO2.6.1: Explain the law of variable
proportion and its assumptions
LO2.6.2: Explain the law of increasing
returns its assumptions, application and
impact on the cost of production
LO2.6.3: Explain the law of constant
returns its assumptions and impact on
the cost of production
LO2.6.4: Explain the law of diminishing
returns its assumptions, application and
impact on the cost of production.
7 Cost and revenue curves 2 LO2.7.1: Understand the concept of
cost of production and its further
classification into implicit and explicit
costs
LO2.7.2: Discuss short run curves of
total cost, total fixed cost, total variable
cost, average cost and marginal cost
with the help of a schedule and graph.
LO2.7.3: Derive a long run average cost
curve from a short run average cost
curve
LO2.7.4: Derive a long run marginal cost
curve with the help of total cost curve.
LO2.7.5: Explain the concept of
economies and diseconomies of scale
and their impact on the long run costs.
marginal revenue, total revenue and
average revenue
LO2.7.7: Define perfect competition,
state its features and explain revenue
curves under perfect and imperfect
competition.

Syllabus
Ref
8 Equilibrium of firm in short and long run 2 LO2.8.1: Understand the concept of
under perfect competition, monopoly, equilibrium and the conditions of firm’s
monopolistic competition and oligopoly equilibrium under perfect competition
LO2.8.2: Explain short and long run
equilibrium of a firm under perfect
competition.
LO2.8.3: Understand the concept of
equilibrium and the conditions of firm’s
equilibrium under imperfect
competition.
LO2.8.4: Define monopoly and describe
its features
LO2.8.5: Explain short and long run
equilibrium of a firm under monopoly
LO2.8.6: Explain price discrimination
and advantages and disadvantages of
monopoly.
LO2.8.7: Differentiate perfect
competition from monopoly
LO2.8.8: Define monopolistic
competition and state its features
LO2.8.9: Explain short run and long run
equilibrium of a firm under
monopolistic competition
LO2.8.10: Describe advantages and
disadvantages of monopolistic
competition
LO2.8.11: Define oligopoly and state its
features
LO2.8.12: Explain price output
determination under collusive
oligopoly, the success and failures of
cartel
LO2.8.13: Price output determination
under non-collusive oligopoly including
kinked demand and price leadership
model
LO2.8.14: Describe advantages and
disadvantages of oligopoly.

Syllabus
Ref
C Macroeconomics
1 Measurement of national income 2 LO3.1.1: Define national income , gross
including knowledge of basic concepts domestic product, gross national
like GDP, GNP and NNP product, net national product, personal
income, disposable personal income
per capita, nominal and real GDP
LO3.1.2: Explain circular flow of
national income
LO3.1.3: Explain the product approach,
income approach and expenditure
approach to the measurement of
national income
LO3.1.4: State the difficulties usually
faced in measuring National Income.
2 Consumption, saving and investment 2 LO3.2.1: Define and explain

functions consumption, autonomous and induced
consumption, average and marginal
propensity to consume
LO3.2.2: Identify how Keynes’
Psychological law of consumption
explains the relationship between
consumption and income with the help
of average propensity to consume and
marginal propensity to consume curves
LO3.2.3: Explain the determinants of
the consumption function
LO3.2.4: Define and explain saving,
average and marginal propensity to
saving
LO3.2.5: Explain the determinants of
saving
LO3.2.6: Understand the stability of
consumption and saving functions in
the short run and discuss the reasons
thereof

Syllabus
Ref
LO3.2.7: Understand the meaning of
investment, induced investment and
autonomous investment
LO3.2.8: Explain the relationship of
investment with marginal efficiency of
capital and interest rate
LO3.2.9: Explain classical and Keynesian
approach to determine equilibrium
level of output/income.
3 Multiplier and accelerator 2 LO3.3.1: Comprehend the effect of the
multiplier on the level of national
income and is limitations
LO3.3.2: Comprehend the principle of
acceleration and its assumptions
LO3.3.3: Understand how the multiplier
and accelerator interact and cause
fluctuations in output.
4 Growth and recession 2 LO3.4.1: Understand different phases
of the business cycle
LO3.4.2: Understand the indicators of
growth and recession
LO3.4.3: Discuss the determinants of
cost and benefits of growth.
5 Unemployment and Inflation 2 LO3.5.1: Describe the concept of
unemployment, full employment and
types of unemployment
LO3.5.2: Discuss the measures to
reduce unemployment
LO3.5.3: Understand concepts of
inflation, deflation, stag-flation, wage
spiral inflation, mild and hyperinflation
LO3.5.4: Explain the causes of inflation
and measures to overcome inflation
with special reference to Pakistan
LO3.5.5: Discuss the cost of inflation
and Phillips Curve
6 Fiscal policy 2 LO3.6.1: Explain the objectives of fiscal
policy and how they are achieved
through fiscal budgets

Syllabus
Ref
LO3.6.2: Explain the limitations of fiscal
policy
LO3.6.3: Define direct, indirect,
proportional, progressive and
regressive taxation
LO3.6.4: Understand functions of
taxation, types of taxes and
characteristics of good tax policy
LO3.6.5: Explain the canons of taxation
LO3.6.6: Explain the advantages and
disadvantages of direct taxation
LO3.6.7: Explain the advantages and
disadvantages of indirect taxation
7 Public and private finance 2 LO3.7.1: Distinguish between public
finance and private finance
LO3.7.2: Explain the importance of
public finance stating its major
functions
LO3.7.3: State the major causes of
continuous increase in the public
expenditure of the nations
LO3.7.4: Explain the role of public
expenditure in developing countries
with special reference to Pakistan.
D Introduction to banking system, financial
markets and international trade
a Banking system
1 Types of banks and financial institutions 1 LO4.1.1: Define a bank and describe its
kinds
LO4.1.2: Describe the functions of a
central bank.
2 Money and its value 1 LO4.2.1: Define the term “money”,
describe its evolution, functions and
the various forms it takes
LO4.2.2: Understand credit money,
types of credit and its advantages and
disadvantages

Syllabus
Ref
LO4.2.3: Understand sources of the
money supply
LO4.2.4: Define interest rate, describe
its types and also explain the
determinants of interest rate
LO4.2.5: Understand the quantity
theory of money
LO4.2.6: Describe the Keynesian
liquidity preference theory and
Keynesian liquidity trap and define their
role in determining interest rates.
LO4.2.7: Understand the measurement
of the value of money
3 Monetary policy 1 LO4.3.1: Understand the meaning of
monetary policy
LO4.3.2: Understand the objectives of
monetary policy and the mutual conflict
of the objectives.
b Financial instruments and market-
Meaning
1 Money market 1 LO5.1.1: Describe the main features
and objectives of money markets.
2 Capital markets. 1 LO5.2.1: Describe the main features
and objectives of capital markets.
3 Derivative market 1 LO5.3.1: Describe the main features
and objectives of derivatives and
derivative markets.
c International trade
1 Balance of trade and payment 2 LO6.1.1: Distinguish between balance
of trade and balance of payment
LO6.1.2: Understand the nature of
items that are accounted for the
concept of balance of trade and
payment
LO6.1.3: Understand the different parts
of balance of payment

Syllabus
Ref
LO6.1.4: Explain the reasons of balance
of payment deficit and measures to
rectify it with special reference to
Pakistan
LO6.1.5: Explain the concept of J curve
and inverse J curve
exchange rate, its determination and
government’s policy to influence it.

CAF-3
BUSINESS LAW
Objective
To give students an understanding of the legal system and laws relating to Contract Act, Partnership Act,
Negotiable Instruments Act, Companies Act and Securities Act.
Learning Outcome
The candidate will be able to demonstrate:
1 basic knowledge of the legal environment
2 comprehension of laws governing contracts, partnership and negotiable instruments
3 knowledge of the legal terminologies of company law and the basics of company incorporation
4 familiarity with the provisions governing the prospectus and shares
5 knowledge of the management of companies
6 familiarity with provisions relating to investment by companies, accounts and dividend
Grid Weightage
Introduction to legal system 4-6
Mercantile law
Contract Act, 1872 20-30
Partnership Act, 1932 10-15
Negotiable Instruments Act, 1881 5-10
50
Companies Act, 2017 and Securities Act, 2015
Preliminary and incorporation 5-10
Prospectus and share capital etc. 5-10
Management, administration and disclosure of interest 15-25
Investments, accounts and dividend etc. 10-20
Total 50
Note: * Syllabus has been revised in 324th meeting of the Council held on February 29, 2020

Syllabus Proficiency Testing Learning Outcome
Contents
Ref Level Level
A Introduction to the Legal System
1 Introduction to the law and its 1 1 LO1.1.1: List various laws applicable
types (Civil and Criminal law) in Pakistan
LO1.1.2: Describe and differentiate
between Civil and Criminal Law
LO1.1.3: Describe the basic
structure of the constitution of the
Islamic Republic of Pakistan
2 Introduction to the Process of 1 1 LO1.2.1: Define legislation
legislation in Pakistan LO1.2.2: Briefly describe the process
of legislation as per the Constitution
B Mercantile law
a Contract Act, 1872
1 Introduction to the Law of Contract 2 1 LO 2.1.1: Define “contract”,
“agreement” and “promise”
LO 2.1.2: Identify essential elements
of a valid contract
LO 2.1.3: Be aware of factors which
might affect the validity of a
contract and their consequences
LO 2.1.4: Identify different types of
a contract.
2 Offer and acceptance 2 1 LO 2.2.1: Define offer and
acceptance
offers
LO 2.2.3: Explain how offer is
different from invitation of an offer
LO 2.2.4: Identify essential elements
of offer and acceptance
LO 2.2.5: Understand the timing of
revocation and its communication
LO 2.2.6: Identify circumstances
when an offer lapses.
3 Capacity of Parties 2 1 LO 2.3.1: Identify circumstances
when a person is not competent to
contract
LO 2.3.2: Be aware of consequences
or enforceability of contracts with
persons not competent to contract.

Contents
Ref Level Level
4 Consideration 2 1 LO 2.4.1: Define consideration and
identify essentials of consideration
LO 2.4.2: Understand rules relating
to consideration
LO 2.4.3: Identify agreements which
are valid without consideration.
5 Free consent 2 1 LO 2.5.1: Define free consent
LO 2.5.2: Know the effect of absence
of free consent
LO 2.5.3: Be aware of factors which
may affect the consent
LO 2.5.4: Identify and explain
coercion, undue influence, fraud,
misrepresentation and mistake.
6 Legality of object and consideration 2 1 LO 2.6.1: Identify circumstances
and agreements opposed to public where object or consideration is
policy unlawful
LO 2.6.2: Identify agreements
opposed to public policy.
7 Void agreement 2 1 LO 2.7.1: Be aware of circumstances
or conditions when an agreement is
considered as voidable / void
voidable / void agreements.
8 Contingent contract 2 1 LO 2.8.1: Define contingent contract
LO 2.8.2: Identify characteristics of
contingent contract
LO 2.8.3: Understand the difference
between contingent contact and
wagering agreement.
9 Quasi contract 2 1 LO 2.9.1: Know meaning of quasi
contract
LO 2.9.2: Understand and apply
rules regarding quasi contract
LO 2.9.3: Be aware of different kinds
of quasi contract.

Contents
Ref Level Level
10 Performance of a contract 2 1 LO 2.10.1: Explain performance and
its types i.e. actual and attempted
to joint and reciprocal contracts and
appropriation of payment
LO 2.10.3: Identify essentials of a
valid tender
LO 2.10.4: Define tender and explain
its types and effects. Describe the
essentials of a valid tender
LO 2.10.5: Identify factors which
may affect the performance of a
contract
LO 2.10.6: Understand and apply
rules relating to joint and reciprocal
promises
LO 2.10.7: Understand the meaning
of appropriation of payment and
rules regarding appropriation of
payment
LO 2.10.8: Explain the assignment of
contracts.
11 Discharge of a contract 2 1 LO 2.11.1: Understand the meaning
of discharge of contract
LO 2.11.2: Identify modes of
discharge of a contract: discharge by
performance, by consent, operation
of law, impossibility of performance,
lapse of time and breach (actual and
anticipatory)
to discharge of a contract.
12 Remedies for breach of contract 2 1 LO 2.12.1: Explain the remedy
LO 2.12.2: Describe the various
remedies available in case of breach
of a contract
to amount of damages
LO 2.12.4: Identify and explain
different kinds of damages
LO 2.12.5: Understand the
remoteness of damages.

Contents
Ref Level Level
13 Indemnity and guarantee 2 1 LO 2.13.1: Define contract of
indemnity and contract of
guarantee. Differentiate between
contract of guarantee and indemnity
LO 2.13.2: Identify parties in a
contract of indemnity and contract
of guarantee
LO 2.13.3: Differentiate between
contract of guarantee and indemnity
LO 2.13.4: Describe the rights of
indemnity holder
LO 2.13.5: Identify the essentials of
the contract of guarantee
LO 2.13.6: Understand the kinds of
guarantees i.e. specific and
continuing, and revocation of
continuing guarantee
LO 2.13.7: Describe rights and
responsibilities of surety
LO 2.13.8: Explain how surety is
discharged
to indemnity, guarantee and surety.
14 Pledge 2 1 LO 2.14.1 Define bailment and
briefly explain types of bailment
LO 2.14.2: Explain pledge (pawn),
pledgor (pawnor) and pledgee
(pawnee)
LO 2.14.3: Explain rights of pledgor
and pledgee
LO 2.14.4: Understand the rules of
pledge by non-owners
15 Agency 2 1 LO 2.15.1: Define agency, agent and
principal and explain types of agents
LO 2.15.2: Identify rights and duties
of the agent and principal
to agency
LO 2.15.4: Differentiate between
sub agent and co-agent

Contents
Ref Level Level
LO 2.15.5: Explain how an agency
can be created
LO 2.15.6: Understand the
circumstances when an agent is
personally liable
LO 2.15.7: Explain how an agency
can be terminated
b Partnership Act, 1932

1 Chapter I – Preliminary 2 1 LO3.1.1: Define the terms.
2 Chapter II - The nature of 2 1 LO3.2.1: Understand and describe
partnership the partnership relationship, its
creation and identify and explain the
types of partnership and the mode
of determining existence of a
partnership.
3 Chapter III - Relations of partners 2 1 LO3.3.1: Determine and explain the
to one another rights and duties of partners of the
firm under various circumstances
LO3.3.2: Explain the provisions of
the law relating to conduct of the
business, property of the firm and
personal profits earned by partners.
4 Chapter IV - Relations of partners 2 1 LO3.4.1: Describe the relationship of
to third parties partners with third parties
LO3.4.2: Identify and explain the
concepts of implied authority of the
partner in relation to third parties,
partner’s authority in an emergency,
mode of doing act to bind the firm,
effect of admissions by a partner,
effect of notice to acting partner,
liability of a partner for acts of the
firm and liability of the firm for
wrongful acts of a partner or
misapplication by partners, principle
of holding out in given situations

Contents
Ref Level Level
rights and restrictions of transferee
of a partner’s interest
rights and liabilities of a minor
admitted to the benefits of
partnership.
c Negotiable Instruments Act, 1881
1 Notes, bills and cheques (Section 4 1 1 LO4.1.1: Define and explain terms
to 15) LO4.1.2: Explain provisions relating
to types of negotiable instruments
2 Provisions relating to cheques 2 1 LO4.2.1: Describe provisions relating
(Section 122A to 131C) to crossing of cheques
LO4.2.2: Briefly describe and
differentiate between a cheque
crossed generally and a cheque
crossed specially and their payment
modes.
C Companies Act, 2017 and
Securities Act, 2015
a Preliminary and incorporation
1 Definitions (Section 2 and 118 of 1 1 LO5.1.1: Define/describe the terms
Companies Act, 2017) which are relevant to the areas
covered in the syllabus.
2 Powers and functions of the 1 1 LO5.2.1: Demonstrate familiarity
Commission (Section 7 of with the powers and functions of
Companies Act, 2017) the Commission.
3 Provisions with respect to names 2 1 LO5.3.1: Describe with examples the
of companies/its change (Section provision/procedure / prohibitions
10 to 13 of Companies Act, 2017) with regard to the selection of the
name of a company /change of
name/ registration of change of
name and effect
thereof/Rectification of name
LO5.3.2: Identify/explain the actions
and procedures needed to be taken
by company and registrar, if a
company is registered by a
prohibited name.

Contents
Ref Level Level
4 Registration of memorandum and 2 1 LO5.4.1: Define the articles of
articles of association (Section 16 association and state its purpose
to 18 and 36 to 39 of Companies
LO5.4.2: State the information
Act, 2017)
which should be contained in the
articles of various companies.
LO5.4.3: Describe the procedure for
alteration of articles
LO5.4.4: Describe the procedure of
registration of the memorandum
and articles of association
LO5.4.5: Describe the effects of
registration of the memorandum
and articles of association.
L05.4.6: State the provisions relating
to printing, signing and date of
article of association
5 Business and objects of a company 1 1 LO5.5.1: Describe the business and
(section 26 of Companies Act, objects of a company
2017)
6 Memorandum of association 2 1 LO5.6.1: Describe the memorandum
(Section 27 to 35, 40 and 41 of of association and state its purpose
Companies Act, 2017)
LO5.6.2: List/explain the clauses of
memorandums of association of
various types of companies and the
form of memorandum of association
LO5.6.3: Describe the purpose and
procedure of alteration to different
clauses of a memorandum of
association
LO5.6.4: Describe the effect of
alteration/noting of alteration of
memorandum of association
L05.6.5: State the provisions relating
to printing, signing and date of
memorandum of association
7 Association not for profit (Section 1 1 LO5.7.1: Comprehend the nature of
42 and 43 of Companies Act, association not for profit/provisions
2017) relating to licensing/revocation of
licenses granted under section 42

Contents
Ref Level Level
b Prospectus and share capital
1 Prospectus 1 1 LO6.1.1: Define a prospectus and
(Section 87(2),(4),(5),(6),(7), 88(1- explain its purpose
8), 90 to 93 of the Securities Act, LO6.1.2: Understand the
2015) requirements relating to a
(Section 57 of Companies Acts, prospectus as laid down in Securities
2017) Act, 2015
LO6.1.3: Understand/explain the
provisions regarding statement by
an expert and consent of an expert
LO6.1.4 Understand the provisions
relating to criminal liabilities for
false or misleading prospectus
2 Share capital (Section 58 to 62 and 1 1 LO6.2.1: Provision relating to nature
85 of Companies Act, 2017) / number of shares and other
securities
LO6.2.2: Describe the classes and
kinds of shares
LO6.2.3: Describe with simple
example the condition of fully paid
shares
LO6.2.4: State the provision relating
to alteration of share capital / kinds
of alterations that can be made to
the share capital
LO6.2.5: Understand the meaning of
variation of shareholders’ rights
LO6.2.6: Demonstrate familiarity
with the provisions relating to
variation of shareholders’ rights.
c Management, administration and

disclosure of interest
1 Commencement of business by a 1 1 LO7.1.1: define minimum
public company (Section 19 and subscription and state the
20 of Companies Act, 2017) conditions to be fulfilled before
commencement of business by a
company
LO7.1.2: State the applicability and
non-applicability of the conditions
on different kinds of company.

Contents
Ref Level Level
LO7.1.3: State the consequences of
non-compliance of the provision
applicable to commencement of
business
2 Registered office, publication of 2 1 LO7.2.1: Discuss with simple
names etc. (Section 21, 22, 24, 25 examples the provisions with regard
of Companies Act, 2017) to having a registered office,
publication of name, Penalties for
non-publication of names and
publication of authorized and paid-
up capital.
3 Meeting and proceedings (Section 1 1 LO7.3.1: State the timing, matters
131 to 147 and 149 to 152 of and reports relating to statutory
Companies Act, 2017) meeting
LO7.3.2: State who can call statutory
meeting
LO7.3.3: State the timing, matters
and reports relating to an annual
general meeting using simple
examples
LO7.3.4: State who can call an
annual general meeting
LO7.3.5: State the timing and
matters relating to an extraordinary
general meeting
LO7.3.6: State who can call an
extraordinary general meeting and
at whose request it may be called
and matters related thereto
LO7.3.7: State the provisions
relating to quorum for a general
meeting
LO7.3.8: State the provisions with
respect to appointment of proxy and
conditions applicable thereon
LO7.3.9: Describe the provisions
relating to notice/ agenda/
resolution /voting/polling/ minutes
of meetings.
LO 7.3.10: State the circumstances
in which proceedings of the general
meeting may be declared invalid.

Contents
Ref Level Level
4 Appointment and Removal of 1 1 LO 7.4.1: Explain and apply in given
Directors and Disqualification by scenarios, the legal provision with
the Commission (Section 153 to respect to directors’:
165, 167,168, 170 to 171 ,174 and  Ineligibility
176 to 185 of Companies Act,  Minimum number and number of
2017) directorships
 Appointment / retirement of first
and subsequent directors
 Nominee director
 Term/tenure of office of
directors/consent to act as
director
 Elections
 Removal/vacation of office
 Filling of casual vacancies
 Remuneration
 Powers, liabilities and limitations
 Protection to independent and
non-executive directors
 Assignment of office and
alternate directors
 Proceedings/ validity of acts of
directors
 Compliance with Code of
Corporate Governance
 Passing of resolution
LO7.4.2: State the legal provisions
relating to loans to directors
LO7.4.3: Describe the prohibition
regarding political contributions/
distribution of gifts
5 Chief executive (Section 186 to 1 1 LO7.5.1: Explain the provisions
191 of Companies Act, 2017) relating to the appointment of first
and subsequent chief executives
using simple examples
LO7.5.2: Describe the restriction on
appointment of chief executive
LO7.5.3: State the provisions/
conditions applicable on removal of
a chief executive and his
engagement in any business

Contents
Ref Level Level
6 Chairman (Section 192 of 1 1 LO.7.6.1: State the provisions
Companies Act, 2017) relating to appointment of Chairman
by listed company and his
responsibilities
7 Secretary (Section 194 of 1 1 LO.7.7.1: State the provisions
Companies Act, 2017) relating to appointment of secretary
by a public company
8 Share registrar (Section 195 of 1 1 LO.7.8.1: State the provisions
Companies Act, 2017) relating to appointment of share
registrar by listed company
9 Appointment of sole purchase / 1 1 LO.7.9.1: State the provisions
sale agents (Section 196 of relating to bar on appointment of
Companies Act, 2017) sole purchase / sale agents
10 Disclosure of interest by directors; 1 1 LO7.10.1: Explain the provisions
interest of other officers etc. and /requirements of disclosure of
interested director not to interest by director in contract /
participate or vote in proceedings arrangement entered into by or on
of directors (Section 205 to 207 of behalf of the company.
Companies Act, 2017) LO7.10.2: Explain the provisions /
requirements of disclosure of
interest by officers in contract /
arrangement entered into by or on
behalf of the company.
LO7.10.3: Explain the provisions /
requirements of disclosure of
interest by officers in contract /
arrangement entered into by or on
behalf of the company.
d Investments, accounts and
dividends, etc.
1 Investment in associated 2 1 LO8.1.1: Describe the conditions
companies and undertakings applicable to a company for making
(Section 199 of Companies Acts, investment in associated companies
2017) and undertakings.
2 Investment of companies to be 1 1 LO8.2.1: Discuss with simple
held in its own name (Section 200 examples as to how a company can
of Companies Acts, 2017) hold its investment in names other
than its own name.
3 Accounts of companies and 1 1 LO8.3.1: Describe the provisions
directors’ report (Section 220, relating to the books of accounts to
223, 226, 227, 232 and 233 of be kept by company.
Companies Act, 2017)

Contents
Ref Level Level
LO8.3.2: Explain the provisions /
requirements with respect to the
Financial statements
LO8.3.3: Describe contents of
directors’ report and statement of
compliance / duty to prepare
directors’ report and statement of
compliance
relating to approval and
authentication of financial
statements
LO8.3.5: Discuss requirements of
filing of financial statements with
the registrar.
4 Quarterly financial statements of 1 1 LO8.4.1: Explain the provisions /
listed companies (Section 237 of requirements relating to the
Companies Act, 2017) preparation of quarterly financial
statements
5 Dividends and manner and time of 1 1 LO8.5.1: Explain the provisions /
payment thereof (Section 240 to requirements relating to declaration
243 of Companies Act, 2017) of dividend and identify / explain
certain restrictions on declaration of
dividend
applicable to payment / withholding
of dividend.

CAF-4
BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES
Objective
To equip candidates with the fundamentals of management and behavioral studies.
Learning Outcome
1 demonstrate an understanding of the nature of management concepts and approaches
2 show familiarity with the structure of business organisations, their culture and the change process
3 demonstrate an understanding of human behavior
4 demonstrate an understanding of the concepts of motivation
5 show familiarity with the nature and kinds of leadership
5a demonstrate an understanding with group dynamics and effective teamwork
6 show familiarity with the nature and importance of negotiation and conflict resolution
7 demonstrate a basic understanding of IT based management information systems.
Grid Weightage
Management concepts 25-35
Organisational process 20-30
Individual behavior and motivation 20-30
Leadership, negotiation and conflicts 20-30
Management information system 15-25
Total 100
Syllabus
Ref
A Management concepts
1 Meaning 2 LO1.1.1: Define the terms leadership
and management; their nature and
purpose
LO1.1.2: State the difference between
Managers and Leaders using examples
LO1.1.3: Describe the classification of
management roles enunciated by
Henry Mintzberg.
LO 1.1.4 Describe the major aspects of
managerial work: planning, organising,
leading and controlling.

Syllabus
Ref
2 Functions 2 LO1.2.1: Illustrate management model
and explain the functions of
management
LO1.2.2: Describe the roles and skills of
management
LO 1.2.3 Integrating managerial levels,
roles and skills.
3 Classical approach 2 LO1.3.1: Describe the principles of
scientific management stated by
Fredrick Taylor
LO1.3.2: Explain the key principles of
management by Fayol and Urwick
LO1.3.3: Explain theories of
management by Weber, Rosemary
Stewart and Elton Mayo
LO1.3.4: Discuss the criticism on
scientific management and classical
approach to management
LO1.3.5: List the characteristics of
bureaucratic organisations and discuss
criticism on this form of management
LO1.3.6: Discuss theories of
management presented by Peter
Drucker, Rosabeth Moss Kanter and
Mintzberg.
4 Behavioral approach 2 LO1.4.1: Discuss the Hawthorne
experiments on human relation
approach, their significance and
implications
LO1.4.2: Discuss critically the relevance
of these experiments for management
and organisational behaviour
LO1.4.3: Discuss Theory X, Theory Y and
Theory Z including their implications
and differences.
5 Management science approach 2 LO1.5.1: Explain the effects of
operations research in business
sciences
LO1.5.2: Discuss management skills
involving time and stress management,
innovations and creativity,
communications, mentoring and
leadership.

Syllabus
Ref
6 External factors – Competitors, suppliers, 2 LO1.6.1: Describe the direct and
labour, customers indirect interactive forces including
political, legal health and safety and
consumer protection forces may affect
the organisational environment.
7 General environment - Political, legal, 2 LO1.7.1: Explain how the external
technological, economic, social forces affect the organisational
environment using examples
LO1.7.2: Explain how social,
demographic, ecological and
competitive factors would impact
business environment.
B Organisational process
1 Organisational structure - principles of 2 LO 2.1.1 Explain the role of vision &
organisation, different ways of mission in an organisation
structuring organisation
LO2.1.2: Explain the meaning and
nature of organisational structure
LO2.1.3: Describe the different types of
organisations and their distinguishing
features
LO2.1.4: Identify the different
stakeholders who have interests in
business firms
LO2.1.5: Describe the features of
matrix functional, divisional and
virtual organisations and their salient
features
LO 2.1.6: Explain the contingency
theory of organisation structure
including Burns & Stalker mechanistic
and organic structure and
Mintzberg’s five building blocks for
organisational Configuration with the
examples of six organisation
configuration
LO 2.1.7: Advantages and limitations of
each type of organisational structure.

Syllabus
Ref
2 Organisational change - nature of change 2 LO2.2.1: Identify and explain the
process, resistance to change external forces creating changes in the
performance of organisations
LO2.2.2: Describe the process of
organisational change
LO2.2.3: Explain the forms of reactions
to change
LO 2.2.4: Discuss managing strategic
change including change management,
change levers and management skills.
LO 2.2.4: Explain Lewin’s force field
analysis, Lewin’s three step approach,
the change agent, Gemini 4 Rs and
Mckinsey’s 7s approach.
3 Organisational culture - concept, 2 LO2.3.1: Describe organisational
dysfunctional aspect of culture culture using examples
LO2.3.2: Discuss using examples the
different levels of organisational culture
LO2.3.3: Describe the types of cultures
and their efficacies in the context of
performances of organisations.
C Individual behavior and motivation
1 Perception 2 LO3.1.1: Explain perception and
perception process and their effects
difference between sensation and
perception
LO 3.1.3 Discuss using examples the
Perceiver (internal factors) and
Perceived (external factors) and their
characteristics that affect perceptual
selectivity
LO3.1.4: Analyse the perceptual
problems/distortions in dealing with
other people like stereotyping and halo
effect, etc.
2 Attitude 2 LO 3.2.1: Define attitude and its
components with reference to
organisational cultures
LO3.2.2: Discuss the differences
between cognitively based attitudes
and affectively based attitudes

Syllabus
Ref
LO3.2.3: Describe the difference
between implicit and explicit attitudes
LO3.2.4: Discuss cross-cultural
differences in the bases for attitudes
LO3.2.5: Explain the relationship
between attitude and behaviour.
3 Job satisfaction and stress 2 LO3.3.1: Explain by offering examples
meaning and outcomes of job
satisfaction
LO3.3.2: Identify the measures to
enhance satisfaction
LO3.3.3: Describe stress and identify
the causes of job stress
LO3.3.4: Explain using examples the
general categories of stressors or
triggers of job stress that can affect
performance
LO3.3.5: Identify consequences of
stress and strategies in order to cope
up with stress.
4 Maslow need hierarchy model 2 LO3.4.1: Describe using examples
motivation
LO3.4.2: Explain Maslow’s need
hierarchy theory
LO3.4.3: Explain strengths and
problems in the application of Maslow’s
theory.
5 Herzberg’s Two-Factor Theory 2 LO3.5.1: Explain Herzberg’s Two Factor
theory of motivation and major
criticism thereon
6 McClelland’s Theory of Needs 2 LO3.6.1: Explain the three motivational
needs theory presented by McClelland
LO3.6.2: State the difference between
intrinsic and extrinsic motives.
7 Goal setting 2 LO3.7.1: Explain the major dimensions
of goal setting theory
LO3.7.2: Explain why and how goals
contribute to self-motivation
LO3.7.3: Describe how to set effective
goals and the problems encountered in
setting goals.
8 Management by objective 2 LO3.8.1: Explain the basic steps of the
overall performance system of MBO.

Syllabus
Ref
9 Self-efficacy 2 LO3.9.1: Define the term self-efficacy
LO3.9.2: Demonstrate understanding of
the concepts of high self-efficacy and
low self-efficacy.
10 Reinforcement 2 LO3.10.1: Describe law of effect using
relevant examples
reinforcement as used in behavioural
management
LO3.10.3: Describe positive and
negative reinforcers using examples.
11 Equity/organisational justice 2 LO3.11.1: Explain organisational justice
and three components of the same,
namely, distributive, procedural and
interactional.
12 Expectancy 2 LO3.12.1: Describe using simple
examples Vroom’s Expectancy theory
and its three elements, namely,
expectancy, instrumentality and
valence.
D Leadership, negotiation and conflicts
1 Type of leadership 2 LO4.1.1: Discuss different leadership
styles, namely, free-rein, engaging,
participative, task oriented and
autocratic.
2 Theories of leadership 2 LO4.2.1: Discuss using simple examples
different theories of leadership,
namely, trait theories, Blake and
Mouton theory, situational and
contingency theories
LO4.2.2: Discuss Tannenbaum and
Schmidt’s continuum model of
leadership styles
LO4.2.3: Discuss the various Contigency
theories of leadership
LO4.2.4: Describe the principles and the
need for adaptive change.
3 Roles, activities, skills of leaders 2 LO4.3.1: Discuss leadership roles and
activities
LO4.3.2: Identify skills needed for
effective leadership.

Syllabus
Ref
4 Group Dynamics and teamwork - types of 2 LO4.4.1: Explain the differences
groups, group formation, group between groups and teams
structure, individual in groups, team work LO4.4.2: Discuss individual and group
behavior at work. Discuss formal and
informal group behavior in work
settings
LO4.4.3: Explain and illustrate balance
theory of group formation
LO4.4.4: Describe the concept and
stages of team formation, team roles
and performances of effective and
ineffective teams
LO4.4.5: Identify and describe stages of
group development
LO4.4.6: List down the factors that
increase and decrease group
cohesiveness
LO4.4.7: Explain the ways to make
teams more effective.
5 Negotiation skills 2 LO4.5.1: Explain various stages of the
negotiation process
LO4.5.2: Describe the different skills of
effective negotiators
LO4.5.3: Describe the roles of
mediators, arbitrators, conciliators and
consultants
LO4.5.4: Explain the low risk techniques
of negotiation
LO4.5.5: Explain the high risk
techniques of negotiation.
6 Conflict resolution 2 LO4.6.1: Discuss the conflict resolution
process
LO4.6.2: Discuss conflicts at the
individual and inter-group levels
LO4.6.3: Discuss the advantages and
disadvantages of conflicts in
organisations
LO4.6.4: Explain intra-individual conflict
with model of frustration
LO4.6.5: List some of the physical,
psychological and behavioural
problems that occur due to conflict.

Syllabus
Ref
E Management information systems
1 General system concepts of information 1 LO5.1.1: Demonstrate basic
technology understanding of computer hardware
i.e. input, output, storage of
information and networking
LO5.1.2: Understand the concepts of
information technology and
information systems
LO5.1.3: Understand the role and types
of information systems in business.
2 IT-based transaction processing systems 1 LO5.2.1: Understand data entry, batch
processing, online processing and real
time -online processing.
3 IT-based financial reporting systems 1 LO5.3.1: Understand IT based financial
reporting system.
4 IT-based order processing and inventory 1 LO5.4.1: Understand IT based order
control systems processing and inventory control
systems.
5 IT-based personnel systems 1 LO5.5.1: Understand IT based
personnel systems.
6 Integrated IT systems 1 LO5.6.1: Briefly describe integrated
systems, their advantages and
disadvantages
LO5.6.2: Understand main features of
Enterprise Resource Planning.

CAF-5
FINANCIAL ACCOUNTING AND REPORTING I
Objective
To provide candidates with an understanding of the fundamentals of accounting theory and basic financial
accounting with particular reference to international pronouncements.
Learning Outcome
1 prepare statement of changes in equity and statement of cash flows (other than consolidated
statement of cash Flow) in accordance with specified international pronouncements.
2 interpret and evaluate the financial statement with the help of ratio analysis.
3 prepare income and expenditure account, accounts from incomplete records and manufacturing
account.
4 understand the requirements for recognition and measurement of the elements of financial
statements and concepts of capital and capital maintenance.
5 account for transactions related to property, plant and equipment in accordance with international
pronouncements.
6 account for transactions related to government grants and provide disclosures for the same in
accordance with international pronouncements.
7 account for transactions related to impairment of assets (other than cash generating units),
investment property and financing of assets in accordance with international pronouncements
8 understand the nature of revenue and account for the same in accordance with international
pronouncements.
Grid Weighting
Preparation of financial statements in accordance with IFRS and its interpretations 20-30
Preparation of income and expenditure account, accounts from incomplete records and 25-35
manufacturing account
Other areas of IFRS 40-50
Total 100

Syllabus Level Learning Outcomes
Contents
Ref Proficiency Testing
A Preparation of financial
statements in accordance with
IFRS and its interpretation
1 IAS 1 Preparation of financial 2 1 LO1.1.1 Prepare statement of changes in
statements (preparation of equity in accordance with the guidance in
statement of changes in equity IAS 1 from data and information provided
only)
2 IAS 7 Preparation of statement 2 2 LO1.2.1: Demonstrate thorough
of cash flows (other than understanding of cash and cash
consolidated statement of cash equivalents, operating, investing and
flow) financing activities
LO1.2.2: Calculate changes in working
capital to be included in the operating
activities
LO1.2.3: Compute items which are
presented on the statement of cash flows
other than consolidated statement of cash
LO1.2.4: Prepare a statement of cash
flows of a limited company in accordance
with IAS 7
3 Interpretation of financial 2 2 LO1.3.1: Compute the following ratios:
statements and ratio analysis
 Current ratio
including limitations of financial
statement and ratio analysis  Acid-test ratio/quick ratio
 Gross profit
 Return on equity
 Return on assets
 Return on capital employed
 Debt-equity ratio
 Inventory turnover
 Debtor turnover
 Creditor turnover
LO1.3.2: Interpret the relationship
between the elements of the financial
statements with regard to profitability,

Contents
liquidity, efficient use of resources and
financial position.
LO1.3.3: Draw conclusions from the
information contained within the financial
statements for appropriate user
(Preparation of financial statements is not
required from the ratios provided /
calculated).
LO1.3.4: Understand the limitation of
financial statements and ratio analysis.
B Preparation of income &

expenditure account, accounts
from incomplete records and
manufacturing account
1 Accounting for non-profit 2 2 LO2.1.1: Prepare simple income and
organization / Income and expenditure account using data and
expenditure account information provided.
2 Preparation of accounts from 2 2 LO2.2.1: Understand situations that might
incomplete records necessitate the preparation of accounts
from incomplete records (stock or assets
destroyed, cash misappropriation or lost,
accounting record, destroyed etc.)
LO2.2.2: Understand and apply the
following techniques used in incomplete
record situations:
• Use of the accounting equation
• Use of opening and closing balances of
ledger accounts
• Use of a cash and / or bank summary
• Use of markup on cost and gross and
net profit percentage.
3 Maintenance of factory ledger 2 2 LO2.3.1: Explain the scope of cost

and related accounting entries accounting and managerial accounting and
and preparation of compare them with financial accounting.
manufacturing account. LO2.3.2: Explain using examples the nature
and behaviour of costs
LO2.3.3 Identify and apply the concept of
fixed, variable, and semi variable costs in
given scenarios.

Contents
LO2.3.4: Identify and apply the concept of
direct and indirect material and labour cost
in given scenarios and differentiate them
from overhead expenditure.
LO2.3.5: Understand cost accounting cycle
and factory ledger of a manufacturing unit.
LO2.3.6: Post journal entries in factory
ledger.
LO2.3.7: Prepare manufacturing account
using given data.
C Other areas of IFRS
1 The conceptual framework for 2 1 LO3.1.1: Recognize and measure elements
financial reporting of financial statements
 Recognition and LO3.1.2: Apply concepts of financial
measurement of the reporting, capital and capital
elements of financial maintenance.
statements
 Concepts of capital and
capital maintenance
2 IAS 16 Property, plant and 2 2 LO3.2.1: Present property, plant and
equipment (revaluation and equipment after recognition under
disclosure) revaluation model using data and
information provided.
LO3.2.2: Compute depreciation for assets
carried under revaluation models using
information provided.
LO3.2.3: Account for de-recognition of
property, plant and equipment recognised
earlier under revaluation methods
LO3.2.4: Understand the disclosure
requirements and prepare extracts of
necessary disclosures.
3 IAS 20 Accounting for 2 1 LO3.3.1 Understand accounting and
government grants and disclosure for government grants.
disclosure of government LO3.3.2 Understand disclosure for
assistance government assistance.
4 IAS 23 Borrowing Costs 2 1 LO3.4.1: Discuss and understand
accounting treatment for borrowing cost
LO3.4.2: Identify and account for
borrowing costs in accordance with IAS 23

Contents
LO3.4.3: Disclose borrowing costs in
financial statements
5 IAS 36 Impairment of Assets 2 1 LO3.5.1: Identify and assess the
(other than cash-generating circumstances when the assets may be
units CGU) impaired (other than cash-generating units
CGU).
LO3.5.2: Discuss the measurement of
recoverable amount
LO3.5.3: Account for the related
impairment expenses
6 IAS 40 Investment Property 2 1 LO3.6.1: Apply the requirements of IAS 40
(other than lease issues) in respect of recognition and
measurement (excluding lease issues)
7 IFRS 15 Revenue from Contracts 2 2 LO3.7.1: Describe and apply the principles
with Customers relating to accounting and reporting of
revenue arising from the following
contracts with customers:
• sale of goods;
• rendering of services
*Testing Level and assessment of contents of earlier stages of qualification

CAF-6
PRINCIPLES OF TAXATION
Objective
To provide basic knowledge in the understanding of objectives of taxation and core areas of Income Tax
Ordinance, 2001, Income Tax Rules 2002 and Sales Tax Act 1990 and Sales Tax Rules.
Learning Outcome
The candidate will be able to:
1 understand the objective of levy of taxation, and its basic concepts
2 understand the system of taxation in Pakistan
3 understand the historical background of taxation in Pakistan
4 understand constitutional provisions of taxation in Pakistan
5 understand and explain the basic ethics of taxation
6 understand and explain provisions of income tax law mainly relevant to individuals and
association of persons
7 understand and explain sales tax law relevant to operational level tasks.
Grid Weightage
Objective, system and historical background, constitutional provisions and ethics 8-12
Income tax 60-70
Sales tax 20-30
Total 100
Syllabus
Ref
A Objective, system and historical
background, constitutional provisions
and ethics
a Basic concepts of taxation
1 Objectives 1 LO1.1.1: Comprehend the main
objectives of taxation
LO1.1.2: Justify taxation as means of
development.
2 Basic concepts 1 LO1.2.1: Understand the implication of
direct and indirect taxation.
3 System of taxation in Pakistan (Income 1 LO1.3.1: Comprehend different kinds of
Tax, Sales Tax, Federal Excise Tax, Capital taxes and their scope including the
Value Tax, Customs) powers of provinces to legislate on
taxes.

Syllabus
Ref
4 Historical background 1 LO1.4.1: State the history of taxation in
the sub-continent.
b Constitutional provisions
1 Federal financial procedures (Article 78 1 LO2.1.1: Demonstrate familiarity with
to 88 of the Constitution of Pakistan) the Federal Consolidated Fund and
Public Account
LO2.1.2: Demonstrate familiarity with
the expenditure that can be charged
upon Federal Consolidated Fund.
2 Provincial financial procedures (Article 1 LO2.2.1: Demonstrate familiarity with
118 to 127 of the Constitution of the Provincial Consolidated Fund and
Pakistan) Public Account
the expenditure that can be charged
upon Provincial Consolidated Fund.
3 Distribution of revenues between 1 LO2.3.1: Demonstrate familiarity with
Federation and the Provinces (Article 160 the formation of National Finance
to 165A of the Constitution of Pakistan) Commission and its main function
the taxes that can be raised under the
authority of Parliament
the powers of provincial assemblies in
respect of professional tax
the exemption available to federal and
provincial governments
the tax on corporation owned by
federal and provincial government.
4 Federal legislative lists relating to 1 LO2.4.1: Enlist the revenue collection as
revenue generating measures (related mentioned at S. No. 43 to 53 in Fourth
part of Fourth Schedule to the Schedule attached to the Constitution.
Constitution of Pakistan)
c Ethics
1 Ethics for tax legislation 2 LO3.1.1: Describe how canons of
taxation developed by economists are
relevant for legislators while
formulating tax policies.

Syllabus
Ref
2 Ethics for taxpayers and tax practitioners 2 LO3.2.1: Understand the right and
purpose of state to tax its citizens
LO3.2.2: Understand morality behind
compliance with tax laws by taxpayers
and tax practitioners.
3 Ethics for tax implementing authorities 2 LO3.3.1: Understand the powers vs
ethical responsibilities of tax
implementation authorities
LO3.3.2: Understand pillars of tax
administration, namely; fairness,
transparency, equity and
accountability.
4 Tax evasion and avoidance 2 LO3.4.1: Explain with simple examples
the basic difference between evasion
and avoidance of tax.
B Income Tax
1 Chapter I – Preliminary (concepts of 1 LO4.1.1: Describe the definitions given
terms defined section 2 sub-section 1, 5, in section 2 sub-section –
5A, 6, 7, 9, 10, 11A, 19, 19C, 20, 21, 22, 1, 5, 5A, 6, 7, 9, 10, 11A, 19, 19C, 20,
23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46, 21, 22, 23, 29, 29A, 29C, 36, 37, 38, 41,
47, 49, 50, 51, 52, 53, 68) 44A, 46, 47, 49, 50, 51, 52, 53, 68
LO4.1.2: Describe other definitions
covered under relevant sections
LO4.1.3: Understand and apply
definitions on simple scenarios.
2 Chapter II – Charge of tax (excluding 2 LO4.2.1: Explain the chargeability of tax

section 4B, 5A, 7, 7A) with simple examples.
3 Chapter III – Tax on Taxable income 2 LO4.3.1: Understand the concepts of
(Excluding Section 29A, 30 and 31 , 36, Income, total income & taxable income
49, 57A, 59AA, 59B, 65C, 65D and 65E) with heads of income
LO 4.3.2: Understand and compute
taxable income and tax thereon relating
to salary, income from property,
income from business, capital gain,
dividend, profit on debt, ground rent,
rent from sub-lease, income from
provision of amenities, utilities or any
other services connected with rented
building and consideration for vacating
the possession of building

Syllabus
Ref
LO 4.3.3: Explain different exemption
and tax concession for income including
2nd schedule exemptions
LO 4.3.4: Comprehend and apply the
concepts of set-off and carry forward of
losses for different heads of income
LO 4.3.5 Understand and compute
deductible allowances and tax credits
available to tax payers.
4 Chapter IV – (Part I, II and III) – Common 1 LO4.4.1: Understand and apply on
rules (Excluding Sections 78 and 79) simple scenarios provisions for income
of joint owner, apportionment of
deductions, fair market value and
receipt of income
LO4.4.2: Explain using simple examples
the provisions relating to tax year
LO4.4.3: Explain with simple examples
the provisions relating to disposal and
acquisition of assets, cost and
consideration received.
5 Chapter V Part I – Central concepts 2 LO4.5.1: Describe with simple examples
the meaning of persons, resident and
non-resident persons and associates.
6 Chapter V Part II Div I and II – Individuals 2 LO4.6.1: Describe with simple examples
the principles of taxation of individuals.
7 Chapter V Part III and Part VA – 2 LO4.7.1: Describe with simple examples
Association of persons the principles of taxation of association
of persons and computational aspects
of AoP and its members.
8 Chapter VII Part II – Taxation of foreign- 2 LO4.8.1: Understand the applicability of
source income of residents tax on foreign salary income, credit
against foreign tax and treatment of
foreign loss of a resident in simple
scenarios.
9 Chapter IX Minimum Tax 2 LO 4.9.1 : Understand the provisions
(Section113) relating to Minimum Tax
LO 4.9.2 : Calculate Minimum Tax
according to the provisions.
10 Chapter X Part I – Returns 2 LO4.10.1: Identify persons required to
furnish a return of income
LO4.10.2: Identify persons not required
to furnish a return of income

Syllabus
Ref
LO4.10.3: Identify persons required to
furnish wealth statements
LO4.10.4: List the contents of wealth
statement
LO 4.10.5: Understand the procedure
for extension in time for furnishing the
returns and other documents.
11 Chapter X Part II – Assessments 1 LO4.11.1: Understand the meaning of
assessment by Commissioner and
power of Commissioner to conduct
audit.
12 Chapter X Part III – Appeals 1 LO4.12.1: List the appellate bodies
LO4.12.2: Explain using simple
examples the circumstances when
appeal to the Commissioner (Appeals)
is made and the pre-conditions
applicable
LO4.12.3: Explain the provisions
relating to decision of appeals by
Commissioner (Appeals) using simple
examples.
13 Chapter X Part VIII – Records, Information 2 LO4.13.1: Understand the provisions
Collection and Audit (Section174 and relating to records to be kept by the
177) taxpayers
relating to audit by Commissioner.
14 The Income Tax Rules related to the 1 LO4.14.1: Apply rules relevant to
above chapters of the Income Tax learning outcomes specified against
Ordinance 2001 shall also be examined each topic on well explained scenarios.
15 First and Second Schedule attached to 2 LO4.15.1: Apply clauses relevant to
the Income Tax Ordinance 2001 learning outcomes specified against
each topic on well explained scenario.
C Sales Tax
a Sales Tax Act 1990
1 Chapter I – Preliminary (concepts of 2 LO5.1.1: Describe the definitions given
terms defined Section 2 sub-sections 3, in section 2 sub-section 3, 5AA, 9, 11,
5AA, 9, 11, 14, 16, 17, 20, 21, 22A, 25, 27, 14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A,
28, 29A, 33, 35, 39, 40, 41, 43, 44, 46) 33, 35, 39, 40, 41, 43, 44, 46
LO5.1.2: Describe other definitions
covered under relevant sections
LO5.1.3: Apply definitions on simple
scenarios.

Syllabus
Ref
2 Chapter II – Scope and payment of tax 2 LO5.2.1: Understand the application of
sales tax law on taxable supplies
including zero rated and exempt
supplies
LO5.2.2: State the determination, time
and manner of sales tax liability and
payment using simple examples
LO 5.2.3: Understand how excess input
tax will be carried forward and
refunded.
3 Chapter III – Registration 2 LO5.3.1: State the requirement and
procedure of registration and de-
registration.
4 Chapter IV – Book keeping and invoicing 2 LO5.4.1: List the record to be kept by a
requirements registered person
LO5.4.2: State the requirements of tax
invoice
LO5.4.3: Explain the retention period of
record using simple examples.
5 Chapter V – Returns 2 LO5.5.1: Understand the various types
of returns required to be filed by
registered and un-registered persons.
b Sales Tax Rules, 2006
1 Chapter I – Registration, Compulsory 2 LO6.1.1: Explain the requirement and
registration and De-registration procedure of registration, compulsory
registration and deregistration using
simple examples.
2 Chapter II – Filing of return 2 LO6.2.1: Explain the requirement and
procedure of filing of return using
simple examples.
3 Chapter III – Credit and Debit And 2 LO6.3.1: Explain the requirement and
Destruction of Goods procedure of issuing debit and credit
notes using simple examples
LO6.3.2: State the procedure for
destruction of goods.
4 Chapter IV – Apportionment of Input Tax 2 LO6.4.1: Explain the requirement and
procedure of apportionment of input
tax using simple examples.

CAF-7
*FINANCIAL ACCOUNTING AND REPORTING II
Objective
To broaden the knowledge base of basic accounting acquired in earlier modules with emphasis on
International Financial Reporting Standards.
Learning Outcome
1 prepare financial statements in accordance with the relevant law of the country and in compliance
with the reporting requirements of the international pronouncements
2 account for transactions relating to non-current assets and operating segment
3 understand the implication of contingencies; changes in accounting policies, estimates and; errors,
events occurring after reporting period and changes in foreign exchange rates
4 account for transactions relating to taxation
5 demonstrate knowledge of basic ethical issues in preparation and reporting of financial information
Grid Weighting
Preparation of financial statements in accordance with the Companies Act, 2017 and 25-35
IFRSs
Accounting for non-current assets 30-40
Ethics and other areas of IFRS 30-40
Total 100

Contents
A Preparation of Financial
Statements in accordance
with the Companies Act
2017 and IFRS
1 Preparation of financial 2 2 LO1.1.1: Identify the laws,
statements of limited regulations, reporting standards and
companies in line with the other requirements applicable to
requirement of the statutory financial statements of a
Companies Act, 2017 and limited company
International Financial LO1.1.2: Prepare and present the
Reporting Standards following in accordance with the
(excluding liquidations, disclosure requirements of IAS1,
reconstructions and Companies Act, fourth schedule /
mergers) fifth schedule
 Statement of financial position
 Statement of comprehensive
income
 Statement of changes in equity
 Notes to the financial
statements
2 Preparation of consolidated 2 2 LO1.2.1: Describe the concept of a
financial statements (one group as a single economic unit
subsidiary) LO1.2.2: Define using simple
 IFRS 3 Business examples subsidiary, parent and
combinations (goodwill control
and cost of investment) LO1.2.3: Describe situations when
 IFRS 10 Consolidated control is presumed to exist
financial statements LO1.2.4: Identify and describe the
(Preparation of circumstances in which an entity is
consolidated statements required to prepare and present
of financial position and consolidated financial statements
comprehensive income) LO1.2.5: Eliminate (by posting
 IAS 28 Investment in journal entries) the carrying amount
associates and joint of the parent’s investment in single
venture (Equity method subsidiary against the parent’s
and test of one associate) portion of equity of subsidiary and
recognise the difference between
the two balances as either goodwill;
or gain from bargain purchase
LO1.2.6: understand preparation of

Contents
consolidated financial statements
for business combinations and their
impacts.
LO1.2.7: Prepare and present
simple consolidated statements of
financial position involving a single
subsidiary in accordance with IFRS
10.
LO1.2.8: Prepare and present a
simple consolidated statement of
comprehensive income involving a
single subsidiary in accordance with
IFRS 10.
LO1.2.9: understand equity method
and test of one associate for
preparation of financial statements
for associates and joint ventures.
LO1.2.10: Define and describe non-
controlling interest in the case of a
partially owned subsidiary
LO1.2.11: Identify the non-
controlling interest in the following:
 net assets of a consolidated
subsidiary; and
 profit or loss of the
consolidated subsidiary for the
reporting period
LO1.2.12: Post adjusting entries to
eliminate the effects of intergroup
sale of inventory and depreciable
assets.
3 Accounting policies, 2 1 LO1.3.1: Define accounting policies,
changes in accounting accounting estimates and prior
estimates; and errors (IAS- period errors
8) LO1.3.2: Account for the effect of
change in accounting estimates and
policies in the financial statements
LO1.3.3: Understand and analyse
using examples, IFRS guidance on
accounting policies, change in
accounting policies and disclosure

Contents
accounting estimates, changes in
accounting estimates and disclosure
errors, correction of errors and
disclosure.
B Accounting for non-current
Assets
1 IFRS 9 Classification, 1 1 LO2.1.1: Apply requirements of
recognition and IFRS 9 in respect of recognition,
measurement of financial classification and measurement of
assets and liabilities Other financial assets and liabilities.
than derivatives -Financial
Instruments
2 IFRS 16 Leases (Excluding 2 2 LO2.2.1: Determine a lease type
modification, sale and lease using given information.
back and reassessment) LO2.2.2: Prepare journal entries and
present extracts of financial
statements in respect of lessee
accounting, lessor accounting after
making necessary calculations.
3 IAS 38 Intangible assets 2 2 LO2.3.1: Apply the principles
Recognition, de-recognition, relating to recognition, de-
measurement, amortization recognition, measurement,
and measurement after amortization and measurement
recognition of non-current after recognition of non-current
assets (including SIC 32 intangible assets as per IAS 38 and
Intangible Assets – Web Site related SIC.
Costs)
4 IAS 41 Agriculture 2 1 LO2.4.1: Understand accounting
and disclosure requirements for
agriculture as per IAS 41
C Ethics and other areas of IFRS
1 Ethics 2 1 LO3.1.1: Describe with simple

 Fundamental principles examples the fundamental
(sections 100 to 150 of the principles of professional ethics of
Code of Ethics for integrity, objectivity, professional
Chartered Accountants) competence and due care,
 An understanding of confidentiality and professional
ethics relating to behavior

Contents
preparation and reporting LO3.1.2: Apply the conceptual
of financial information framework to identify, evaluate and
(Section 320 of Code of address threats to compliance with
Ethics for Chartered fundamental principles.
Accountants) LO3.1.3: Explain using simple
examples the ethical
responsibilities of a Chartered
Accountant in preparation and
reporting of financial information.
2 IFRS 8 Operating Segment 2 1 LO3.2.1: Understand and apply
disclosure requirement about
operating segments as per IFRS 8
3 Events occurring after the 2 1 LO3.3.1: Assess and account for
reporting period (IAS-10) adjusting and non-adjusting events
after the reporting period.
LO3.3.2: Determine items that
require separate disclosure,
including their accounting
treatment and required disclosures.
using examples, going concern
issues arising after the end of the
reporting period.
4 IAS 37 Provisions, 2 2 LO3.4.1: Define liability, provision,
contingent liabilities and contingent liability and contingent
contingent assets (including asset also describe their accounting
IFRIC 1 changes in existing treatment.
decommissioning, LO3.4.2: Distinguish between
restoration and similar provisions, contingent liabilities or
liabilities) contingent assets
LO3.4.3: Understand and apply the
recognition and de-recognition
criteria for provisions
LO3.4.4: Calculate/measure
provisions such as
warranties/guarantees,
restructuring, onerous contracts,
environmental and similar
provisions, provisions for future
repairs or refurbishments
LO3.4.5: Account for changes in
provisions, decommissioning,

Contents
restoration and similar liabilities
LO3.4.6: Apply disclosure
requirements for provisions.
LO3.4.7: Understand changes in the
measurement of decommissioning
and restoration cost and similar
liabilities
5 IAS 12 Income Taxes (other 2 2 LO3.5.1: Define temporary
than Business combination) differences and identify temporary
differences that cause deferred tax
liabilities and deferred tax assets
(other than Business combination)
LO3.5.2: Determine amounts to be
recognised in respect of temporary
differences
LO3.5.3: Prepare and present
deferred tax calculations using the
balance sheet approach (other than
Business combination)
LO3.5.4: Account for the major
components of tax expense/income
and its relationship with accounting
profit
LO3.5.5: Formulate accounting
policies in respect of deferred tax
LO3.5.6: Apply disclosure
requirements of IAS12 (other than
Business combination)
6 IAS 21 The effects of 2 1 LO3.6.1: understand and apply
changes in foreign accounting for foreign currency
exchange rates (foreign transactions
exchange transactions)
Testing Level and assessment of contents of earlier stages of qualification

CAF-8
COST AND MANAGEMENT ACCOUNTING
Objective
To equip candidates with techniques of cost accounting to provide a knowledge base for decision
making skills.
Learning Outcome
1 establish the costs associated with the production of products and provision of services
2 demonstrate an understanding of different costing systems
3 prepare various types of forecasts and budgets
4 apply the concepts of costing in the decision making process
5 demonstrate a functional knowledge of financial instruments
6 apply concept of time value of money
7 understand the concepts of sustainability reporting.
Grid Weightage
Costs associated with the production 15-20
Costing system 25-35
Budget and budgetary controls 35-45
Financial instruments , time value of money and sustainability reporting 20-30
Total 100
Syllabus
Ref
A Costs associated with production
1 Basis of valuation - FIFO, weighted 2 LO1.1.1: Apply inventory valuation
average, lower of cost and net realizable methods ( namely, FIFO, weighted
value average, lower of cost and net
realizable value) in simple scenarios
LO1.1.2: Comment on the suitability of
inventory valuation under FIFO,
weighted average, lower of cost and
net realizable value
LO1.1.3: Compare inventory valuation
under FIFO, weighted average, lower of
cost and net realizable value
LO1.1.4: Calculate NRVs of inventories
in a given scenario.

Syllabus
Ref
2 Economic Order Quantity 2 LO1.2.1: Determine the usefulness of
Economic Order Quantity (EOQ) model
LO1.2.2: Calculate the EOQ from data
provided and apply the concept in
given scenarios
3 Safety stock 2 LO1.3.1: Describe safety stocks for
inventories
LO1.3.2: Explain the reasons for
maintaining safety stock
LO1.3.3: Calculate the safety stock from
data provided.
4 Re-order level 2 LO1.4.1: Explain the re-order levels and
the objectives of setting re-order levels
LO1.4.2: Calculate re-order levels by
using data provided.
5 Manufacturing expenses - actual and 2 LO1.5.1: Describe manufacturing
applied overheads using examples
LO1.5.2: Compare manufacturing,
administrative and selling costs
LO1.5.3: Identify manufacturing
overheads from data provided
LO1.5.4: Describe and distinguish
between actual overhead and applied
overhead
LO1.5.5: Calculate applied overheads
using data provided.
6 Over or under absorbed overhead 2 LO1.6.1: Compare actual and absorbed
overheads from data provided
LO1.6.2: Analyse over or under
absorption in terms of expenditure and
volume variances
LO1.6.3: Account for over or under-
absorbed overheads.
7 Production and service departments 2 LO1.7.1: Identify production and
service departments in a manufacturing
facility and analyse their related costs
LO1.7.2: Explain the basis of allocation
of cost of service department to
production department.
8 Apportionment, allocation and 2 LO1.8.1: Allocate costs to production
absorption of service departments, and service departments using
overheads to production information provided

Syllabus
Ref
LO1.8.2: Allocate costs of service
departments to production department
using data and information provided.
9 Labour Costing 2 LO1.9.1: Discuss productivity and
efficiency measurement in relation to
controlling labour costs
remuneration systems, incentive wage
plans and types therein.
LO1.9.3: Record labour costs
LO1.9.4: Apply the impact of learning
curve theory on the productivity of
employees.
B Costing systems
1 Marginal costing 2 LO2.1.1: Explain the concept of
marginal costing and apply on given
data
LO2.1.2: Explain how marginal costing
helps managerial decisions using
examples.
2 Absorption costing 2 LO2.2.1: Describe and apply absorption
costing approach in given scenarios
LO2.2.2: Compare marginal costing and
absorption costing
LO2.2.3: Reconcile the differences
between the profits resulting from
marginal and absorption costing.
3 Manufacturing cost accounting cycle 2 LO2.3.1: Explain the flow of cost in the
production process using examples
LO2.3.2: Prepare accounting entries for
the flow of cost.
4 Job order costing 2 LO2.4.1: Describe job order costing
LO2.4.2: Calculate the cost of a job and
inventories by application of job order
costing
LO2.4.3: Prepare accounting entries
under the job order costing system.
5 Process costing 2 LO2.5.1: Describe the process costing
including the treatment of normal /
abnormal loss / gain
LO2.5.2: Calculate cost of product and
inventories by application of process
costing

Syllabus
Ref
LO2.5.3: Prepare accounting entries
under the process costing system.
LO2.5.4: Account for the cost of
rework
LO2.5.5: Account for the units added in
subsequent departments
LO2.5.6: Account for the N.R.V of by-
product in process account.
6 Treatment of Joint and By-Products 2 LO2.6.1: Describe joint and by products
using examples
LO2.6.2: Allocate joint production costs
using sales value, physical units,
average units and weighted average
methods
LO2.6.3: Account for by-products using
recognition of gross revenue,
recognition of net revenue and
replacement cost approaches.
7 Cost of services rendered 2 LO2.7.1: Explain how
departmentalization in a service
organisation helps in cost planning and
control
LO2.7.2: Calculate cost of services
rendered by a service organisation.
8 Standard costing 2 LO2.8.1: Explain standard costing using
examples
LO2.8.2: Perform standard setting for
material, labour and factory overhead.
9 Variance analysis-material, labour and 2 LO2.9.1: Calculate, analyse and
overhead interpret various variances relating to
material, labour and factory overhead.
10 Target costing 2 LO2.10.1: Describe target costing and
how target cost is determined
LO2.10.2: Apply the target costing tools
to given scenarios.
C Budget budgetary controls and decision
making
1 Planning, forecasting and budgeting of 2 LO3.1.1: Explain how budgeting process
sales, cost and profit works and how it fits into overall
planning and control

Syllabus
Ref
LO3.1.2: Prepare forecasts on given
data and assumptions using Qualitative
and Quantitative methods including
Time Series Models, Moving Averages
and Linear Regression Analysis.
LO3.1.3: Identify and describe different
purposes of budgeting
LO3.1.4: Identify and describe the
various stages in the budgeting process
LO3.1.5: Prepare following types of
budgets:
• fixed and flexible budgets;
• performance budgeting;
• sales budget;
• production budget;
• direct materials budget;
• direct labour budget;
• manufacturing overhead budget;
• inventory budget;
• cost of goods sold budget;
• selling and administrative expenses
budget with inflation aspects;
• Master/cash budget;
• zero based budgets, and
• capital expenditure budgets;
LO3.1.6: Discuss various approaches to
Budgeting (i.e. flexible and fixed
budgets, incremental budgeting, zero
based budgeting, continuous (rolling)
budgeting and performance budgeting
LO3.1.7: Describe the human &
motivational aspects of budgets
LO3.1.8: Describe budgeting and
planning in a non-profit organisation
2 Opportunity cost 2 LO3.2.1: Describe opportunity cost
using examples.
3 Relevant cost 2 LO3.3.1: Describe relevant costs using
examples
LO3.3.2: Identify the costs that are
relevant to a particular decision in given
data.
4 Breakeven analysis 2 LO3.4.1: Explain the break-even point
using examples and margin of safety

Syllabus
Ref
LO3.4.2: Calculate the breakeven point
in quantity and amount from
information provided
LO3.4.3: Apply cost volume profit (CVP)
analysis and explain its usefulness for
management.
5 Make or buy decisions 2 LO3.5.1: Apply marginal and relevant
costing concepts to analyse make or
buy options
LO3.5.2: Analyse make or buy options
in case of capacity constraints
importance of qualitative
considerations in make or buy
decisions.
6 Pricing for special orders 2 LO3.6.1: Perform incremental cost
benefit analysis for a special order.
7 Further processing decisions 2 LO3.7.1: Perform incremental cost
benefit analysis for further processing
costs.
D Financial instruments (basic functions) ,
Time value of money and Sustainability
reporting
1 Business Finance: Shares, debentures, 1 LO4.1.1: Recognise common sources of
bonds, futures, options, cap, floor, collar, finance
swaps, forward LO4.1.2: Describe factors that need to
be considered before raising finance.
LO4.1.3: Explain and discuss methods
of raising equity finance, including:
 Initial Public Offer (IPO)
 Private Placing
 Right Issue
LO4.1.4: Explain (with examples) the
difference between short term and long
term debt finance and factors
influencing choice of such finance
LO4.1.5: Discuss the advantages and
disadvantages of Debt Finance

Syllabus
Ref
LO4.1.6: Understand the basic features
of following debt finances:
 bonds,
 loan notes,
 debentures,
 commercial paper
 loan stock
 deeply discounted bonds
 zero coupon bonds
 euro bonds
 convertible bonds and securities
 warrants and hybrids
 bank Loans
 leases
 certificate of deposits (CDs)
 treasury bills (T Bills)
LO4.1.7: Explain and discuss other
common sources of finance:
 venture capital
 Business angels
 private equity Funds
 asset securitization and sale
LO4.1.8:Describe direct and indirect
investment using examples
LO4.1.9: Describe using examples
shares, debentures, bonds, futures,
options
LO4.1.10: Describe using simple
examples the following characteristics
of indirect investments and compare
them with direct investments:
• Divisibility
• Liquidity
• Holding period
LO4.1.11: Differentiate between
investment and speculation using
simple examples
LO4.1.12: Describe using simple
examples cap, floor, collar, swaps,
forwards.

Syllabus
Ref
2 Computation and usefulness of net 1 LO4.2.1: Explain the time value of
present value and internal rate of return money
LO4.2.2: Identify and calculate relevant
cash flows for investment projects.
LO4.2.3: Calculate net present value
and internal rate of return of given cash
flows.
LO4.2.4: Assess the usefulness of NPV
and IRR models.
3 An introduction to sustainability 1 LO4.3.1: Understand different phases
reporting of reporting
LO4.3.2: Understand the concept of
sustainability reporting
integrated reporting
LO4.3.4: Identify and explain the users
of sustainability report
LO4.3.5: Explain benefits of
sustainability reporting and apply this in
given scenarios
LO4.3.6: Explain the IFAC Framework of
sustainability reporting
LO4.3.7: Explain Key themes and key
considerations of sustainability
reporting (Business strategy
perspective, operational perspective
and reporting perspective).

CAF-9
AUDIT AND ASSURANCE
Objective
To acquire knowledge of theory, skills, techniques of auditing and to enable the students to understand
International Standards on Auditing, Assurance and Ethics.
Learning Outcome
1 demonstrate knowledge of general concepts governing an audit
2 demonstrate working knowledge in respect of performance of simple audit procedures and
understand the audit report requirement under the companies act, 2017
3 understand the requirement and application guidelines relating to some of the specific areas of
audit procedures including external confirmation, review of subsequent events etc.
4 comprehend nature of engagements of review of interim financial statements
5 demonstrate familiarity with computer programming and IT controls relevant to financial
reporting
6 respond on audit matters in the light of fundamental principles given in the code of ethics.
Grid Weightage
General concepts and principles of audit 15-20
Performance of audit and reporting 25-35
Specific areas 20-25
Computer programming and IT controls 10-15
Professional Ethics 10-15
Total 100
Syllabus
Ref
A General concepts and principles of audit
1 Introduction to International Federation 1 LO1.1.1: Briefly describe the
of Accountants organisational overview encompassing
• History;
• Vision and mission
2 Introduction to international auditing and 1 LO1.2.1: Briefly describe the objectives
assurance standard setting body and functions of IAASB.
3 Objective and general principles 2 LO1.3.1: Describe the objectives of
governing an audit (ISA 200) audit including concepts of
accountability, stewardship, agency,
independence and fair presentation

Syllabus
Ref
LO1.3.2: Describe the overall objectives
of the independent auditor.
assurance and levels of assurance i.e.
absolute, reasonable and limited
assurance including elements of an
assurance engagement, assurances
provided by audit and review
engagement
LO1.3.4: Explain the requirements of an
external audit, eligibility and ineligibility
of auditor
LO1.3.5: Describe the rights and duties
of auditors
LO1.3.6: Explain the nature and scope
of an audit designed to enable the
independent auditor to meet those
objectives
LO1.3.7: Outline the requirements
establishing the general responsibilities
of the independent auditor applicable
in all audits including consideration of
inherent limitations of an audit
LO1.3.8 Discuss the concept of
professional skepticism.
LO1.3.9: Discuss the concept of interim
and final audit
LO1.3.10: List the audit procedures that
can be performed by the external
auditor at the interim and final stage of
an audit
LO1.3.11: Discuss the concept of audit
of Not-for-profit organisations.
4 Responsibility for the financial 2 LO1.4.1: Understand the responsibility
statements of management and those charged with
governance for financial reporting and
related internal control on financial
reporting.
5 Auditor’s responsibility to consider fraud 2 LO1.5.1: Distinguish between the terms
(ISA 240) ‘error’, ‘fraud’ and ‘misstatement’
LO1.5.2: Compare the respective
responsibilities of management and
auditors for fraud

Syllabus
Ref
LO1.5.3: Describe the matters to be
considered and procedures to be
carried out to assist the auditor in
identifying, assessing and detecting the
risks of material misstatement due to
fraud
LO1.5.4: Identify the fraud risk factors
in the simple scenario as given in the
appendix 1 of ISA 240
LO1.5.5: Identify the circumstances that
indicate the possibility of fraud in the
simple scenario as given in the
appendix 3 of ISA 240.
6 Legal considerations relating to 2 LO1.6.1: Explain how the first and
appointment and removal of auditors subsequent auditors are appointed
(sections 246 to 253 of the Companies LO1.6.2: Explain how the first and
Act, 2017) subsequent auditors are removed
LO1.6.3: Describe qualification and
disqualification of the auditor
LO1.6.4: Describe the powers and
duties of auditors
LO1.6.5: Describe the concept of audit
of cost accounts
LO1.6.6: Discuss the additional matters
to be included in the auditor’s report.
7 Terms of Audit engagements (ISA 210) 2 LO1.7.1: Describe the preconditions for
an audit and upon which it is necessary
for the auditor and the entity’s
management to agree
LO1.7.2: Respond if preconditions are
not present or limit is imposed on
scope of audit in well explained simple
situations
LO1.7.3: State the contents of an audit
engagement letter
LO1.7.4: Discuss the requirement of
issuance of engagement letter and
factors that necessitate the issuance of
engagement letter in case of recurring
audit
LO1.7.5: Discuss the circumstances of
acceptances of changes in terms of
engagement by the auditor.

Syllabus
Ref
B Performance of audit and reporting
1 Planning an audit (ISA 300) 2 LO2.1.1: Discuss the need for planning
an audit including contents of an audit
plan and its relation with risk
assessment
LO2.1.2: Discuss the contents of overall
audit strategy and audit plan
LO2.1.3: State who should be involved
in planning and what preliminary
engagement activities are necessary
LO2.1.4: Outline the additional
considerations that should be identified
while planning the initial audit.
2 Assessment of audit risks (ISA 315 and 2 LO2.2.1: Discuss the risk based
330) approach to auditing including audit
risk model
LO2.2.2: Identify the inherent risk,
control risk and detection risk in simple
scenario
LO2.2.3: Explain relationship between
audit risk and its components i.e.
inherent risk, control risk and detection
risk
LO2.2.4: Discuss the identification and
assessment of the risks of material
misstatement at both the financial
statement level and assertion level,
including understanding of entity, its
environment, accounting and internal
control systems
LO2.2.5: Explain the elements of
internal control
LO2.2.6: Discuss the evaluation of
controls and control environment and
communication of deficiencies to the
management
LO2.2.7: Explain the categories of
control activities (internal controls) by
using simple examples including
Application and General IT Controls

Syllabus
Ref
LO2.2.8: Explain and identify the
control weaknesses in the given
scenario and suggest appropriate
recommendations to remove these
weaknesses
LO2.2.9: Discuss and explain the
limitations of internal control system
LO2.2.10: Discuss and explain the risks
in specialised IT systems
LO2.2.11: Explain the different methods
of recording internal control systems.
3 Audit materiality (ISA 320) 2 LO2.3.1: Explain the concepts of
materiality and performance
materiality using simple examples.
LO2.3.2: Explain materiality level or
levels for particular classes of
transactions, account balances or
disclosures
LO2.3.3: Explain the relationship
between audit risk and level of
materiality
4 Audit evidence (ISA 500) 2 LO2.4.1: Explain, using examples,
sufficient appropriate audit evidence
LO2.4.2: Discuss the general principles
assisting the auditor in assessing the
relevance and reliability of audit
evidence
LO2.4.3: Discuss audit procedures to
obtain audit evidence including types of
audit procedures
LO2.4.4: Discuss the course of action
available to auditor in case sufficient
appropriate audit evidence is not
obtained
LO2.4.5: Explain the financial statement
assertions including Assertions about
class of transactions, account balances
and presentation and disclosure
LO2.4.6: Explain the audit work related
to Inventory

Syllabus
Ref
5 Audit sampling (ISA 530) 2 LO2.5.1: Explain audit sampling,
statistical sampling and sampling and
non-sampling risk using simple
examples
LO2.5.2: Discuss the relationship
between sampling and audit risk model
LO2.5.3: Explain what matters are
considered by auditors in respect of
sample design, size and selection of
items for testing using simple examples
including sample selection method
LO2.5.4: Discuss the concept of
misstatement and rate of deviation
including expected and tolerated
LO2.5.5: State the audit procedures to
be performed on selected sample
LO2.5.6: Discuss the concept of
projecting misstatement and evaluating
the results of audit sampling.
6 Substantive procedures (ISA 330) 2 LO2.6.1: Understand the financial
statement assertions
LO2.6.2: Briefly explain the advantages
and dis-advantages of both test data
and audit software.
LO2.6.3: Discuss the use of computer
software in substantive testing,
auditing around the computer and
directional testing
LO2.6.4: Discuss the methods of
obtaining audit evidence for
substantive testing
LO2.6.5: Explain the nature, extent and
timing of substantive procedures for
different items of financial statements.
7 Tests of controls (ISA 330) 2 LO2.7.1: Explain the nature, extent and
timing of test of controls using simple
examples
Computer Assisted Audit Techniques
LO2.7.3: Explain how auditors evaluate
the operating effectiveness of controls

Syllabus
Ref
LO2.7.4: Explain the controls over
major transaction cycles including
related risks, weaknesses control
objectives and designing appropriate
tests of controls.
8 Analytical procedures (ISA 520) 2 LO2.8.1: Explain the nature and
purpose of substantive analytical
procedures using simple examples
LO2.8.2: State the purpose of analytical
procedures performed near the end of
the audit
LO2.8.3: Applying analytical procedures
through calculations of different ratios
for different items of financial
statements
LO2.8.4: Factors to be considered when
using analytical procedures as
substantive procedures
LO2.8.5: Course of action when results
of analytical procedures identify
fluctuations and inconsistencies.
9 Documentation (ISA 230) 2 LO2.9.1: Explain the nature and
purpose of audit documentation
LO2.9.2: Describe the form, content
and extent of audit documentation
LO2.9.3: Discuss the use of computer
based audit working papers
LO2.9.4: Explain the difference
between permanent and current
working papers with examples.
LO2.9.5: List the contents of working
paper file / audit documentation
LO2.9.6: Discuss the ownership,
custody and confidentiality of audit
working papers
LO2.9.7: Understand the nature of
assembly of the final audit file.
LO2.9.8: Explain the features of audit
working papers.

Syllabus
Ref
10 Audit opinion and form of audit report 2 LO2.10.1: Understand modified and
under International Standards on unmodified audit opinion
Auditing and under the Companies Act, LO2.10.2: Explain qualified opinion,
2017 and Going Concern (ISA-570 disclaimer of opinion and adverse
Revised) opinion
LO2.10.3: Explain emphasis of matter
and other matter in the auditor’s report
LO2.10.4: List the circumstances under
which an external auditor uses an
emphasis of matter and other matter
paragraph in the auditor’s report
LO2.10.5: Discuss the modification of
audit opinion and audit report in
different situations including when
entity is not a going concern and
related concepts.
LO2.10.6: Drafting of opinion paragraph
LO2.10.7: Key Audit matters and other
related concepts as per ISA 701.
LO2.10.8: Briefly state the contents of
the auditor’s report under International
Standards on Auditing and under the
Companies Act, 2017
LO2.10.9: Explain the differences
between auditor’s report under
International Standards on Auditing and
under the Companies Act, 2017
LO2.10.10: State the penalty for
noncompliance with provisions related
to the audit report.
C Specific areas
1 External confirmations (ISA 505) 2 LO3.1.1: Define external confirmation
and list various types of third party
confirmations available to an external
auditor.
LO3.1.2: Describe the significance of
using external confirmation procedures
for obtaining relevant and reliable audit
evidence
LO3.1.3: Describe the steps involved in
external confirmation procedures

Syllabus
Ref
LO3.1.4: Differentiate between the
positive confirmation request and
negative confirmation request,
including their appropriateness in
different situations
LO3.1.5: Discuss the conditions of
sending negative confirmations
LO3.1.6: Discuss the auditor’s course of
action if management refuses to allow
auditor to send confirmation.
2 Subsequent events (ISA 560) 2 LO3.2.1: Explain subsequent events and
its relevance with the following critical
dates
• Date of the financial statements
• Date of approval of the financial
statements
• Date of the auditor’s report
• Date the financial statements are
issued
LO3.2.2: Explain the subsequent events
review procedure
LO3.2.3: Discuss the classification of
subsequent events into adjusting and
non-adjusting events
LO3.2.4: Describe the auditor’s
responsibility in respect of following
situations
• Events occurring between the date
of the financial statements and the
date of the auditor’s report
• Facts which become known to the
auditor after the date of the
auditor’s report but before the date
the financial statements are issued
• Facts which become known to the
auditor after the financial
statements have been issued
LO3.2.5: Identify the subsequent events
and explain the auditor’s responses.
3 Written representation (ISA 580) 2 LO3.3.1: Discuss the nature of written
representations as audit evidence

Syllabus
Ref
LO3.3.2: Discuss the circumstances
where written representations are
necessary and the matters on which
representations are commonly
obtained
LO3.3.3: Discuss the form and content
of written representations
LO3.3.4: Explain the various types of
written representation
action if management refuses to
provide requested written
representation.
action when there is doubt as to the
reliability of written representation
provided by the management.
4 Consideration of related parties (ISA 550) 2 LO3.4.1: Describe the term related
party using simple examples
LO3.4.2: Discuss how related party
transactions can give rise to the risk of
material misstatement using simple
examples
LO3.4.3: describe the audit procedures
including risk assessment procedures
and related activities to obtain
information relevant to identifying the
related party relationships and
transactions including responses to the
assessed risk of material misstatement.
5 Using the work of internal auditors and 2 LO3.5.1: Explain the relationship
auditor’s experts (, ISA 610 and ISA 620) between the external auditor with
internal auditors and auditor’s experts
LO3.5.2: Explain the internal audit
function including internal audit
activities
LO3.5.3: Discuss the factors
determining the independence of
internal auditors and weaknesses and
limitations of internal audit
LO3.5.4: Discuss how external auditors
determine whether and to what extent
they use the work of internal audit

Syllabus
Ref
LO3.5.5: Discuss how the auditor
assesses the work of an expert
LO3.5.6: Discuss how the external
auditor uses the work of an auditor’s
expert when that work is used to assist
in obtaining sufficient appropriate audit
evidence.
6 Engagement to review financial 2 LO3.6.1: Explain the objective of a
statements 2400 review engagement of financial
statements and how it differs from an
audit
LO3.6.2: State the terms of
engagement which may be included in
the engagement letter
LO3.6.3: Explain assurance and non-
assurance engagement with examples.
LO3.6.4: Describe the procedures
generally adopted by the practitioner to
obtain evidence in review engagements
LO3.6.5: Discuss and explain the report
issued under engagement to review
financial statements.
D Computer programming and IT controls
1 Benefits and limitations of flowcharts 1 LO4.1.1: Describe the macro, mini and
micro level details of flowcharts
LO4.1.2: State the benefits and
limitations of flowcharts using simple
examples.
2 Types of flowcharts 1 LO4.2.1: Classify and distinguish
between types of flowcharts, namely,
linear, deployment and opportunity
flowcharts
LO4.2.2: Draw different types of
flowcharts for given situations
3 General and application controls in IT 1 LO4.3.1: Describe general controls and
systems/environment classify them into environment,
development, maintenance and
operational controls using simple
examples
LO4.3.2: Describe IT application
controls using simple examples

Syllabus
Ref
LO4.3.3: Discuss the evaluation of
various IT controls including
authorization, separation of
duties/functions, adequacy of
documentation, access controls,
safeguard of IT assets, independent
check on performance, verification of
accounting records, comparison of
accounting records with assets,
computer-dependent controls (edit,
validation, etc.), user controls (control
balancing, manual follow-up, etc.),
audit trails
LO4.3.4: State controls over data
transmission
4 Preventative, detective and corrective 2 LO4.4.1: Describe preventative,
controls detective and corrective controls using
simple examples.
LO4.4.2: Describe procedures and
controls for identification/investigation
/correction / tracking of errors in IT
systems/environment
5 Logical access controls 2 LO4.5.1: Describe logical access
controls for a given situation/system.
LO4.5.2: Describe the usefulness of
system logs for analysing a system’s
performance.
E Professional Ethics
1 Fundamental principles (sections 100 to 2 LO5.1.1: Describe with simple examples
150 of the Code of Ethics for Chartered the fundamental principles of
Accountants) professional ethics of integrity,
objectivity, professional competence
and due care, confidentiality and
professional behavior
LO5.1.2: Apply the conceptual
framework to identify, evaluate and
address threats to compliance with
fundamental principles
LO5.1.3: Understand the threats and
circumstances that cause threats of
selfinterest, self-review, advocacy,
familiarity, and intimidation

Syllabus
Ref
LO5.1.4: Discuss the safeguards to
offset the threats to compliance with
the fundamental principles
LO5.1.5: Discuss the concept of ethical
conflict resolution.
2 Client and engagement acceptance 2 LO5.2.1: Explain the advertisement and
(section 210 of the Code of Ethics for publicity guidelines of ICAP’s Code of
Chartered Accountants) Ethics for obtaining the audit work
LO5.2.2: Apply the conceptual
framework to identify, evaluate and
address threats in case of Fees, Referral
Fees and Tendering for audit work.
LO5.2.3: Explain using simple examples
the matters to be considered and the
procedures that an audit firm/
professional accountant should carry
out in the following circumstances:
• Client acceptance
• Engagement acceptance
• Changes in a professional
appointment (including Additional
work, Mid-Term Removal and Non
reappointment)

PCSC
PRESENTATION AND COMMUNICATION SKILLS COURSE

50 Hours Course to be completed in any RAET or recognized institutes
Learning outcomes of the Course
S.No. Skills Weightage
1 Intellectual
Demonstrate openness and objectivity in giving and receiving
10
feedback.
2 Interpersonal and Communication
Present information in written and numeric form clearly.
30
Depict awareness of clear communication.
Demonstrate listening skills and understand given instructions. 10
3 Professional skepticism and professional judgment
Probe and question the relevant facts. 10
4* Write Essay on topics generally known to a school leaver. 15
5* Write meaningful and effective Précis. 10
6* Write business letter on a well explained scenario.
15
Write short business report on a well explained scenario.
Total 100
Methodology
Method Numbers Hours
*Classroom lectures on presentation, group discussion and 5 10
writing skills and practice
Formal presentations before a group:
• Attended 12 6
• Presented 6 3
• Facilitators feedback on presentations 2 6
Group discussion on pre-seen and well prepared topics 4 8
*Essay writing on unseen topics 3 3
*Précis writing 4 3
*Write business letter on a well explained scenario 6 3
*Write short business report on a well explained scenario 3 3
*Feedback of trainer on essay, précis, letters and short
5
business reports written by students
50
Note: *Syllabus has been revised in 264th meeting of the Council held on May 8th and 9th , 2015. The
Institute shall conduct a Writing Skills Test of I hour 15 minutes duration that shall carry 40 marks.
Subject to a transition under Directive 1.01, passing of the Test shall be a condition for issuance of
Course Completion Certificate.

GWE 01
*GATEWAY EXAMINATIONS
ACCOUNTING & REPORTING AND COST AND MANAGEMENT ACCOUNTING
Grid Weightage
Accounting and reporting
Preparation of financial statements in accordance with the Companies Act, 2017 and 10-20
IFRSs including preparation of accounts from incomplete records
Preparation of consolidated financial statements and Accounting policies, changes in 15-25

accounting estimates; and errors
Other areas of IFRS 20-30
Cost and management accounting
Cost, costing system and cost behavior 15-25
Decision making and financial management 15-25
Total 100
Note: *Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.

Level
Contents
Proficiency Testing
Preparation of financial statements in accordance with the Companies Act, 2017
and IFRSs including preparation of accounts from incomplete records
Preparation of financial statements of limited companies in line with the 2 2
requirement of the Companies Act, 2017 and International Financial Reporting
Standards (excluding liquidations reconstructions and mergers)
Preparation of accounts from incomplete records 2 2
Preparation of consolidated financial statements and Accounting policies, changes
in accounting estimates; and errors
Preparation of consolidated financial statements (one subsidiary) 2 2
 IFRS 3 Business combinations (goodwill and cost of investment)
 IFRS 10 Consolidated financial statements (Preparation of consolidated
statements of financial position and comprehensive income)
 IAS 28 Investment in associates and joint venture (Equity method and test of one
associate)
Accounting policies, changes in accounting estimates; and errors (IAS-8) 2 2
Other areas of IFRS
IFRS 8 Operating Segment 2 1
IFRS 9 Classification, recognition and measurement of financial assets and liabilities 1 1
Other than derivatives -Financial Instruments
IFRS 16 Leases (Excluding modification, sale and lease back and reassessment) 2 2
Events occurring after the reporting period (IAS-10) 2 1
IAS 12 Income Taxes (other than Business combination) 2 2
IAS 21 The effects of changes in foreign exchange rates (foreign exchange 2 1
transactions)
IAS 37 Provisions, contingent liabilities and contingent assets (including IFRIC 1 2 2
changes in existing decommissioning, restoration and similar liabilities)
IAS 38 Intangible assets Recognition, de-recognition, measurement, amortization 2 2
and measurement after recognition of non-current assets (including SIC 32
Intangible Assets – Web Site Costs)
IAS 41 Agriculture 2 1

COST AND MANAGEMENT ACCOUNTING Proficiency
Level
Inventory, Costing system and cost behaviour 2
Economic Order Quantity 2
Safety stock 2
Re-order level 2
Manufacturing expenses -actual and applied 2
Over or under absorbed overhead 2
Costing systems
Marginal costing 2
Absorption costing 2
Job order costing 2
Process costing 2
Treatment of Joint and By-Products 2
Standard costing 2
Relevant cost
Variance analysis-material, labour and overhead 2
Decision making
Breakeven analysis 2
Make or buy decisions 2
Pricing for special orders 2
Further processing decisions 2
Utilization of spare capacity 2
Time value of money
Computation of net present value and internal rate of return 2

GWE 02
*GATEWAY EXAMINATIONS
AUDIT & ASSURANCE AND TAXATION
Grid Weightage
Audit and assurance
General concepts and principles of audit; Performance of audit and reporting 25
Specific areas and control systems 20
Professional ethics 5
Taxation
Income tax 35
Sales tax 15
Total 100
AUDIT AND ASSURANCE Level

Objective and general principal governing an audit (ISA 200) 2
Responsibility for the financial statements 2
Auditors responsibility to consider fraud (ISA 240) 1
Terms of Audit engagements (ISA 210) 2
Performance of audit and reporting
Planning an audit (ISA 300) 2
Assessment of audit risks (ISA 315) 2
Audit materiality (ISA 320) 2
Audit evidence (ISA 500) 2
Audit sampling (ISA 530) 2
Substantive procedures (ISA 330) 2
Tests of controls (ISA 330) 2
Analytical procedures (ISA 520) 2
Documentation (ISA 230) 2
Understanding of audit opinion and form of audit report under the Companies Act, 2
2017
Specific areas
External confirmations (ISA 505) 2
Subsequent events (ISA 560) 2
Written representation (ISA 580) 2
Consideration of related parties (ISA 550) 2

Using the work of component auditors, internal audits and auditor’s experts ( ISA
2
610 and ISA 620)
Review of interim financial statements by the independent auditor (ISRE 2400) 2
IT Controls
Control design 1
General controls 2
Preventative, detective and corrective controls 2
Audit trails 2
Professional ethics
Fundamental principles (sections 100 to 150 of the Code of Ethics for Chartered
2
Accountants)
Client and engagement acceptance (section 210 of the Code of Ethics for Chartered
2
Accountants)
TAXATION
INCOME TAX
Chapter I – Preliminary (concepts of terms defined in section 2 sub-section 1, 5, 5A, 6,
7, 9, 10, 11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46, 47, 49, 50, 1
51, 52, 53, 68)
52, 53, 68)
Chapter III – Tax on Taxable income (Excluding Section 29A, 30, 31, 36, 49, 57A, 2
59AA, 59B, 65C, 65D and 65E)
Chapter IV – (Part I, II and III) – Common rules (Excluding Sections 78 and 79) 1
Chapter V Part I – Central concepts 2
Chapter V Part II Div I and II – Individuals (Excluding Section 88A) 2
Chapter V Part III – Association of persons 2
Chapter VII Part II – Taxation of foreign-source income of residents 2
Chapter x Part I – Returns 2
Chapter x Part II – Assessments 1
Chapter x Part III – Appeals 1
Chapter x Part VIII – Records, Information Collection and Audit (Section174 and 177) 2
The Income Tax Rules related to the above chapters of the Income Tax Ordinance
1
2001 shall also be examined
First and Second Schedule attached to the Income Tax Ordinance 2001 2

Sales Tax
Sales Tax Act 1990 2
Chapter I – Preliminary (concepts of terms defined Section 2 sub-sections 3, 5AA, 9,
2
11, 14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33, 35, 39, 40, 41, 43, 44, 46)
Chapter II – Scope and payment of tax 2
Chapter III – Registration 2
Chapter IV – Book keeping and invoicing requirements 2
Chapter V – Returns 2
SalesTaxRules,2006
Chapter I – Registration, Compulsory registration and De-registration 2
Chapter II – Filing of return 2
Chapter III – Credit and Debit Notes 2
Chapter IV – Apportionment of Input Tax 2

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CAF SYLLABUS

2. *Testing Level and assessment of contents of earlier stages of qualification

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 Elements of financial materiality, prudence, going concern and

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LO1.4.10: Balance the ledger accounts as

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LO2.3.4: Correct cash book errors and

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D Inventories & Property,

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LO4.2.5: Post journal entry to record

*Testing Level and assessment of contents of earlier stages of qualification

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2 Economic systems 1 LO1.2.1: Describe the major functions

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2 Consumption, saving and investment 2 LO3.2.1: Define and explain

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b Partnership Act, 1932

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c Management, administration and

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Other areas of IFRS 40-50

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B Preparation of income &

3 Maintenance of factory ledger 2 2 LO2.3.1: Explain the scope of cost

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*Testing Level and assessment of contents of earlier stages of qualification

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