PAPER 1 – ACCOUNTING

(One paper – Three hours – 100

Marks)
Objective:

T o ac quire the ability to apply spec ific ac c ounting standards and legislations to
different transac tions and events and in preparation and presentation of financ ial statements
of various business entities.

Contents:
1. Process of formulation of Accounting Standards including Ind AS (IFRS converged
standards) and IFRSs; convergence vs adoption; objective and concepts of carve outs.
2. Framework for Preparation and Presentation of F inancial Statements (as per
Accounting Standards).
3. Applications of Accounting Standards:
AS 1 : Disc losure of Ac c ounting Polic ies

AS 2 : Valuation of Inventories

AS 3 : Cash Flow Statements

AS 10 : Property, Plant and Equipment

AS 11 : T he Effec ts of Changes in Foreign Exc hange

Rates
AS 12 : Ac c ounting for Government Grants

AS 13 : Ac c ounting for Investments

AS 16 : Borrowing Costs

4. Company Accounts
(i) Preparation of financ ial statements – Statement of Profit and Loss, Balanc e
Sheet and Cash Flow Statement;
(ii) Managerial Remuneration;
(iii) Profit (Loss) prior to inc orporation;
(iv) Ac c ounting for bonus issue and right issue;

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 (v) Redemption of preferenc e
shares; (vi) Redemption of
debentures.
5. Accounting for Special Transactions:
(i) Investment;
(ii) Insuranc e c laims for loss of stoc k and loss of
profit; (iii) Hire- purc hase and Instalment sale transac
tions.
6. Special Type of Accounting
(i) Departmental Ac c ounting;
(ii) Ac c ounting for Branc hes inc luding foreign branc
hes; (iii) Ac c ounts from Inc omplete Rec ords.
Note : If either new Ac c ounting Standards (AS), Announc ements and Limited Revisions to
AS
are issued or the earlier ones are withdrawn or new AS, Announc ements and
Limited Revisions to AS are issued in plac e of existing AS, Announc ements and Limited
Revisions to AS, the syllabus will ac c ordingly inc lude / exc lude suc h new developments in
the plac e of the existing ones with effec t from the date to be notified by the Institute.

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 PAPER – 2: CORPORATE AND OTHER LAWS
(One paper – Three hours - 100
Marks)

PART I – COMPANY LAW (60 MARKS)

Objective:
T o develop an understanding of the provisions of c ompany law and ac quire the ability
to address applic ation-oriented issues.
Contents:
The Companies Act, 2013 – Sec tions 1 to 148
1. Preliminary
2. Inc orporation of Company and Matters Inc idental thereto
3. Prospec tus and Allotment of Sec urities
4. Share Capital and Debentures
5. Ac c eptanc e of Deposits by c ompanies
6. Registration of Charges
7. Management and Administration
8. Dec laration and payment of Dividend
9. Ac c ounts of Companies
10. Audit and Auditors
Note: The provisions of the Com panies Act, 1956 which are still in force would form part of the
syllabus till the tim e their corresponding or new provisions of the Com panies Act,
2013 are enforced.

PART II- OTHER LAWS (40 MARKS)

Objectives:
(a) T o develop an understanding of the provisions of selec t legislations and ac quire
the ability to address applic ation-oriented issues.
(b) T o develop an understanding of the rules for interpretation of statutes
1. The Indian Contract Act, 1872 (Spec ific c ontrac ts c overed from sec tion 123
onwards): Contrac t of Indemnity and Guarantee, Bailment, Pledge, Agenc y

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 2. The Negotiable Instruments Act, 1881 : Meaning of Negotiable Instruments,
Charac teristic s, Classific ation of Instruments, Different provisions relating to
Negotiation, Negotiability, Assignability, Right and Obligation of parties, presentment of
Instruments, Rules of Compensation
3. The General Clauses Act, 1897: Important Definitions, Extent and Applic ability, General
Rules of Construc tion, Powers and Func tionaries, Provisions as to Orders, Rules,
etc . made under Enac tments, Misc ellaneous
4. Interpretation of statutes: Rules of Interpretation of statutes, Aids to interpretation,
Rules of Interpretation/c onstruc tion of Deeds and Doc uments
Note: If new legislations are enacted in place of the existing legislations, the syllabus would
include the corresponding provisions of such new legislations with effect from a date notified
by the Institute. Sim ilarly, if any existing legislation ceases to have effect, the syllabus will
accordingly exclude such legislation with effect from the date to be notified by the Institute.
The specific inclusions/exclusions in the various topics covered in the syllabus will be effected
every year by way of Study Guidelines, if required.

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 PAPER – 3: COST AND MANAGEMENT ACCOUNTING
(One Paper- T hree hours- 100 Marks)

Objectives:
(a) T o develop an understanding of the basic c onc epts and applic ations to establish the c
ost assoc iated with the produc tion of produc ts and provision of servic es and apply the
same to determine pric es.
(b) T o develop an understanding of c ost ac c ounting statements.
(c ) T o ac quire the ability to apply information for c ost asc ertainment, planning, c ontrol
and dec ision making.
Contents:
1. Overview of Cost and Management Accounting
(i) Introduction to Cost and Management Accounting
a) Objec tives and Sc ope of Cost and Management Ac c ounting,
b) T he users of Cost and Management ac c ounting information, Func tions
of management ac c ounting.
c) Role of c ost ac c ounting department in an organisation and its relation
with other departments.
d) Installation of Costing System
e) Relationship of Cost Ac c ounting, Financ ial Ac c ounting,
Management
Ac c ounting and Financ ial
Management. f) Cost terms and Conc
epts
g) Cost Reduc tion and Cost Control
h) Elements of Costs
i) Cost behavior pattern, Separating the c omponents of fixed, variable, semi
- variable and step c osts.
j) Methods of Costing, T ec hniques of Costing.
k) Cost Ac c ounting with use of Information T ec hnology.
(ii) Elements of Cost and preparation of Cost Sheets
a) Func tional c lassific ation and asc ertainment of c ost

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 b) Preparation of Cost Sheets for Manufac turing sec tor and for Servic e sec tor
2. Ascertainment of Cost and Cost Accounting System
(i) Material Cost
a) Proc urement proc edures- Store proc edures and doc umentation in respec t
of rec eipts and issue of stoc k, Stoc k verific ation,
b) Valuation of material rec
eipts, c ) Inventory c ontrol-
- T ec hniques of fixing level of stoc ks- minimum, maximum, re-order point,
safety stoc k, determination of optimum stoc k level,
- Determination of Optimum Order quantity- Ec onomic Order Quantity
(EOQ),
- T ec hniques of Inventory c ontrol- ABC Analysis, Fast, Slow m oving
and Non moving (FSN), High, Medium, Low (HML), Vital, Essential,
Desirable (VED), Just-in-T ime (JIT )- Stoc k taking and perpetual
inventory system, use of c ontrol ratios,
d) Inventory Ac c ounting
(ii) Employee Cost
a) Attendanc e and Payroll proc edures-
- Elements of wages- Basic pay, Dearness Allowanc e, Overtime,
Bonus, Holiday and leave wages, Allowanc es and perquisites.
b) Employee Cost Control
c) Employee T urnover- Methods of c alc ulating employee turnover, c auses
of employee turnover, effec ts of employee turnover.
d) Utilisation of Human Resourc e, Direc t and indirec t employee Cost, c harging
of employee c ost, Identifying employee hours with work orders or batc
hes or c apital jobs.
e) Remuneration systems and inc entive sc hemes- Premium Bonus Method
(Halsey Plan and Rowan Plan)
(iii) Overheads
a) Func tional analysis- Fac tory, Administration, Selling, Distribution, Researc
h and Development.
b) Behavioral analysis- Fixed, Variable and Semi- Variable.
c) Alloc ation and Apportionment of overheads usin g Absorption Costing Method.

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 d) Fac tory Overheads- Primary and sec ondary distribution,
e) Administration Overheads- Method of alloc ation to c ost c entres or produc ts,
f) Selling & Distribution Overheads- Analysis and absorption of the expenses
in produc ts/ c ustomers, impac t of marketing strategies, c ost effec
tiveness of various methods of sales promotion.
g) T reatment of Researc h and development c ost in c ost ac c ounting.
(iv) Concepts of Activity Based Costing (ABC) (v)
Recording and Accounting o f Costs
a) Non-integrated Cost Ac c ounting system - Ledger under non-integral system
b) Integrated (Cost and Financ ial) Ac c ounting system - Ledgers under
integral system.
c) Differenc e between the Non- integrated and Integrated Ac c ounting system.
d) Rec onc iliation of profit as per Cost and Financ ial Ac c ounts (under
Non - Integrated Ac c ounting System).
3. Methods of Costing
(i) Single Output/ Unit Costing
(ii) Job Costing: Job c ost c ards and databases, c ollec ting direc t c osts of eac h
job, attributing overheads to jobs, Applic ation of job c osting.
(iii) Batch Costing: Determination of optimum batc h quantity, Asc ertainment of c ost for
a batc h, Preparation of batc h c ost sheet, T reatment of spoiled and defec tive work.
(iv) Contract Costing
a) Asc ertainment of c ost of a c ontrac t, Progress payment, Retention
money, Esc alation c lause, Cost plus c ontrac t, Value of work c ertified, Cost
of Work not c ertified.
b) Determination Value of work c ertified, Cost of work not c ertified, Notional or
Estimated profit from a c ontac t.
(v) Process/ Operation Costing
a) Proc ess c ost rec ording, Proc ess loss, Abnormal gains and losses,
Equivalent units of produc tion, Inter-proc ess profit, Valuation of work in proc
ess.
b) Joint Produc ts- Apportionment of joint c osts, Methods of apportioning joint c
ost over joint produc ts,

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 c) By-Produc ts- Methods of apportioning joint c osts over by-produc ts,
treatment of By-produc t c ost.
(vi) Costing of Service Sectors
a) Determination of Costs and Pric es of servic es.
4. Cost Control and Analysis
(i) Standard Costing
a) Setting up of Standards, T ypes of Standards, Standard Costing as method
of performanc e measurement.
b) Calc ulation and Rec onc iliation of Cost Varianc es-
- Material Cost Varianc e, employee Cost Varianc e, Variable Overheads
Varianc e and Fixed Overhead Varianc e.
(ii) Marginal Costing
a) Basic c onc epts of marginal c osting, Contribution margin, Break -even
analysis, Break –even and profit volume c harts, Contribution to sales ratio,
Margin of Safety, Angle of Inc idenc e, Cost-Volume-Profit Analysis (CVP),
Multi- produc t break- even analysis, Consideration of Limiting fac tor (key fac
tor),
b) Determination of Cost of a produc t/ servic e under marginal c osting
method, determination of c ost of finished goods, work-in-progress,
c) Comparison of Marginal c osting with absorption c osting method - Rec onc
iliation of profit under the both methods,
d) Short term dec ision making using the above c onc epts (basic /
fundamental level).
(iii) Budget and Budgetary Control
a) Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting
proc ess, Preparation of Budget and monitoring proc edures.
b) T he use of budget in planning and c ontrol
c) Flexible budget, Preparation of Func tional budget for operating and non
- operating func tions, Cash budget, Master budget,
d) Introduc tion to Princ ipal/ Key budget fac tor, Zero Based Budgeting
(ZBB), Performanc e budget, Control ratios and Budget varianc es.

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 PAPER – 4 : TAXATION
(One paper ─ Three hours – 100 Marks)
Objective:

T o develop an understanding of the provisions of inc ome -tax law and goods and servic es
tax law and to ac quire the ability to apply suc h knowledge to make c omputations and
address applic ation oriented issues.

SECTION A: INCOME TAX LAW (60 MARKS)

Contents:
1. Basic Concepts
(i) Inc ome-tax law: An introduc tion
(ii) Important definitions in the Inc ome-tax Ac t,
1961 (iii) Conc ept of previous year and assessment
year (iv) Basis of Charge and Rates of T ax
2. Residential status and scope of total income
(i) Residential status
(ii) Sc ope of total inc ome
3. Incomes which do not form part of total income (other than charitable trusts and
institutions, political parties and electoral trusts)
(i) Inc omes not inc luded in total inc ome
(ii) T ax holiday for newly established units in Spec ial Ec onomic Zones
4. Heads of income and the provisions governing computation of income under
different heads
(i) Salaries
(ii) Inc ome from house property
(iii) Profits and gains of business or profession
(iv) Capital gains
( v) Inc ome from other sourc es

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 5. Income of other persons included in assessee's total income
(i) Clubbing of inc ome: An introduc tion
(ii) T ransfer of inc ome without transfer of assets
(iii) Inc ome arising from revoc able transfer of assets
(iv) Clubbing of inc ome of inc ome arising to spouse, minor c hild and son’s wife in
c ertain c ases
( v) Conversion of self-ac quired property into property of HUF
6. Aggregation of income; Set-off, or carry forward and set-off of losses
(i) Aggregation of inc ome
(ii) Conc ept of set-off and c arry forward and set-off of losses
(iii) Provisions governing set-off and c arry forward and set-off of losses under
different heads of inc ome
(iv) Order of set-off of losses
7. Deductions from gross total income
(i) General provisions
(ii) Deduc tions in respec t of c ertain payments
(iii) Spec ific deduc tions in respec t of c ertain inc ome
(iv) Deduc tions in respec t of other inc ome
( v) Other deduc tions
8. Computation of total income and tax liability of individuals
(i) Inc ome to be c onsidered while c omputing total inc ome of individuals
(ii) Proc edure for c omputation of total inc ome and tax liability of individuals
9. Advance tax, tax deduction at source and introduction to tax collection at source
(i) Introduc tion
(ii) Direc t Payment
(iii) Provisions c onc erning deduc tion of tax at sourc e
(iv) Advanc e payment of tax
( v) Interest for defaults in payment of advanc e tax and deferment of advanc e tax

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 ( vi) T ax c ollec tion at sourc e – Basic c onc ept
( vii) T ax deduc tion and c ollec tion ac c ount number
10. Provisions for filing return of income and self-assessment
(i) Return of Inc ome
(ii) Compulsory filing of return of inc ome
(iii) Fee and Interest for default in furnishing return o f inc ome
(iv) Return of loss
( v) Provisions relating to belated return, revised return
etc . ( vi) Permanent ac c ount number
( vii) Persons authorized to verify return of inc ome
( viii) Self-assessment
SECTION B – INDIRECT TAXES (40 MARKS)

Contents:
1. Concept of indirect taxes
(i) Conc ept and features of indirec t taxes
(ii) Princ ipal indirect taxes
2. Goods and Services Tax (GST) Laws
(i) GST Laws: An introduc tion inc luding Constitutional aspects
(ii) Levy and c ollec tion of CGST and IGST
a) Applic ation of CGST /IGST
law
b) Conc ept of supply inc luding c omposite and mixed
supplies c) Charge of tax inc luding reverse c harge
d) Exemption from tax
e) Composition levy
(iii) Basic c onc epts of time and value of supply
(iv) Input tax c redit
(v) Computation of GST liability
(vi) Registration

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 (vii) T ax invoic e; Credit and Debit Notes; Elec tronic way bill
(viii) Returns
(ix) Payment of tax
Note – If any new legislation(s) is enac ted in plac e of an existing legislation(s), the
syllabus will ac c ordingly inc lude the c orresponding provisions of suc h new legislation(s) in
plac e of the existing legislation(s) with effec t from the date to be notified by the Institute.
Similarly, if any existing legislation c eases to have effec t, the syllabus will ac c ordingly exc
lude suc h legislation with effec t from the date to be notified by the Institute. Students shall
not be examined with referenc e to any partic ular State GST Law.
Consequential/c orresponding amendments made in the provisions of the Inc ome -tax law
and Goods and Servic es T ax laws c overed in the syllabus of this paper whic h arise out
of the amendments made in the provisions not c overed in the syllabus will not form part
of the syllabus. Further, the spec ific inc lusions/exc lusions in the various topic s c
overed in the syllabus will be effec ted every year by way of Study Guidelines.
T he spec ific inc lusions/exc lusions may also arise due to additions/deletions every
year by the annual Financ e Ac t.
The above syllabus does not specify the exclusions from the syllabus prescribed by way
of Study Guidelines. Therefore, Study Guidelines need to be referred to for the exclusions
from the syllabus.

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 GROUP II- PAPER 5: ADVANCED ACCOUNTING
(One paper – Three hours – 100
Marks)
Objectives:

1. T o ac quire the ability to apply spec ific Ac c ounting Standards and legislations to
different transac tions and events and in preparation and presentation of financ ial
statements of business entities;
2. T o understand and apply financ ial reporting and regulatory requirements of Banking
Companies and NBFCs.
Contents:
1. Application of Accounting Standards:
AS 4: Contingenc ies and Events Oc c urring After the Balanc
e
Sheet Date
AS 5: Net Profit or Loss for the Period, Prior Period Items and
Changes in Ac c ounting Polic
ies
AS 7: Construc tion Contrac ts
AS 9: Revenue Rec ognition
AS 14 : Ac c ounting for Amalgamations
AS 17 : Segment Reporting
AS 18 : Related Party Disc losures
AS 19 : Leases
AS 20 : Earnings Per Share
AS 22: Ac c ounting for T axes on Inc ome
AS 24 : Disc ontinuing Operations
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
2. Special Aspects of Company Accounts
(i) Ac c ounting for employee stoc k option
plan; (ii) Buy bac k of sec urities;

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 (iii) Equity shares with differential rights.
3. Reorganization and liquidation of Companies
(i) Ac c ounting for amalgamation (exc luding inter-c ompany holding)
and rec onstruc tion;
(ii) Ac c ounting involved in liquidation of c
ompanies.
4. Banking Companies and Non -Banking Financial Companies and regulatory
requirements thereof.
5. Consolidated Financial Statements
Conc ept of c onsolidation and simple problems on Consolidated Financ ial
Statements with single subsidiary (exc luding problems involving a c q u i s i ti o n
o f In te r e s t i n Su b s i diar y a t D i ffere nt D ates ; D iffere nt R epor ting D ates o f
H o ldin g a nd Su bs idi a r y ; D i s p os al o f a Su bs idi ary a n d F or eig n Su bsi diar
ies ).
6. Dissolution of partnership firms including piecemeal distribution of assets;
Amalgamation of partnership firms; Conversion of partnership firm into a
company and Sale to a company; Issues related to accounting in Limited Liability
Partnership.
Notes :

1. If either new Ac c ounting Standards (ASs), Announc ements and Limited Revisions
to ASs are issued or the earlier ones are withdrawn or new ASs, Announc ements
and Limited Revisions to AS are issued in plac e of existing ASs, Announc
ements and Limited Revisions to AS, the syllabus will ac c ordingly inc lude / exc
lude suc h new developments in the plac e of the existing ones with effec t from the
date to be notified.
2. T he spec ific exc lusions, in any topic c overed in the syllabus, will be effec ted, if any,
by way of Study Guidelines.

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 PAPER 6: AUDITING AND ASSURANCE (100 MARKS)
(One paper – Three hours – 100
Marks)

Objective:
T o develop an understanding of the c onc epts in auditing and of the generally ac c
epted auditing proc edures, tec hniques and skills and ac quire the ability to apply the same
in audit and attestation engagements.
1. Nature, Objective and Scope of Audit
Auditing Concepts: Nature, objec tive and sc ope of Audit; Relationship of auditing with
other disc iplines;
Standard Setting Process: Overview, Standard-setting proc ess, Role of International
Auditing and Assuranc e Standards Board (IAASB) & Auditing and Assuranc e
Standards Board (AASB); Standards on Auditing, Guidanc e Note(s) issued by the ICAI;
Engagement Standards: Qualities of Auditor, Elements of System of Quality Control
(SQC
1 Quality Control for Firms that Perform Audits and Reviews of Historic al Financ
ial Information, and Other Assuranc e and Related Servic es Engagements);
Ethic al requirements relating to an audit of financ ial statements; Inherent Limitations of
an audit (SA 200 Overall Objec tives of the Independent Auditor and the Conduc t of
an Audit in Ac c ordanc e with Standards on Auditing); Prec onditions for an audit; Audit
Engagement; Agreement on Audit Engagement T erms; T erms of Engagement in Rec
urring Audits (SA
210 Agreeing the T erms of Audit Engagements); Leadership Responsibilities for Quality
o n Audits; Conc ept of Auditor’s Independenc e; T hreats to Independenc e; Ac c
eptanc e and Continuanc e of Client Relationships and Audit Engagements (SA 220
Quality Control for an Audit of Financ ial Statements).
2. Audit Strategy, Audit Planning and Audit Programme
Audit Strategy; Audit planning (SA 300); Audit programme; Development of Audit Plan
and Programme, Control of quality of audit work - Delegation and supervision of audit
work; Materiality and Audit Plan; Revision of Materiality; Doc umenting the
Materiality; Performanc e Materiality (SA 320 Materiality in Planning and Performing an
Audit).
3. Audit Documentation and Audit Evidence
Conc ept of Audit Doc umentation; Nature & Purpose of Audit Doc umentation; Form,
Content
& Extent of Audit Doc umentation; Completion Memorandum ; Ownership and c ustody
of Audit Doc umentation (SA 230 Audit Doc umentation); Audit proc edures for obtaining
audit evidenc e; Sourc es of evidenc e; Relevanc e and Reliability of audit evidenc e;
Suffic ient appropriate audit evidenc e, Evaluation of Audit Evidenc e (SA 500 Audit
Evidenc e); Written

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 Representations as Audit Evidenc e; Objec tive of Auditor regarding Written Representatio
n ; Management from whom Written Representations may be requested; Written
Representations about Management’s Responsibilities (SA 580 Written
Representations); Obtaining evidenc e of existenc e of inventory; Audit proc edure to
identify litigation & c laims (SA 501 Audit Evidenc e - Spec ific Considerations for Selec
ted Items); External c onfirmation proc edures; Management's refusal to allow the
auditor to send a c onfirmation request; Negative Confirmations (SA 505 External
Confirmations); Audit evidenc e about opening balanc es; Ac c ounting polic ies relating
to opening balanc es; Reporting with regard to opening balanc es (SA 510 Initial
Audit Engagements-Opening Balanc es); Meaning of Related Party; Nature of Related
Party Relationships & T ransac tions; Understanding the Entity's Related Party
Relationships & T ransac tions (SA 550 Related Parties); Meaning of Subsequent Events;
Auditor's obligations in different situations of subsequent events (SA
560 Subsequent Events); Responsibilities of the Auditor with regard to Going Conc
ern Assumption; Objec tives of the Auditor regarding Going Conc ern; Events or
Conditions that may c ast doubt about Going Conc ern Assumption; Audit Proc edures
when events or c onditions are identified (SA 570 Going Conc ern).
4. Risk Assessment and Internal Control: Audit Risk, Identifying and Assessing the Ri s k o f
Material Misstatement, Risk Assessment proc edures; Understanding the entity and
its environment; Internal c ontrol ,Doc umenting the Risks; Evaluation of internal c ontrol
system; T esting of Internal c ontrol; Internal Control and IT Environment (SA 315
Identifying and Assessing the Risks of Material Misstatement T hrough Understanding
the Entity and Its Environment); Materiality and audit risk (SA 320 Materiality in Planning
and Performing an Audit); Internal audit, Basic s of Standards on Internal Audit (SIAs)
issued by the ICAI; Basic s of Internal Financ ial Control and reportin g requirements;
Distinc tion between Internal Financ ial Control and Internal Control over Financ ial
Reporting.
5. Fraud and Responsibilities of the Auditor in this Regard: Responsibility for the
Prevention and Detec tion of Fraud; Fraud Risk Fac tors; Risks o f Material Misstatement
Due to Fraud; Communication of Fraud (SA 240 T he Auditor’s responsibilities Relating to
Fr a u d in an Audit of Financ ial Statements); Provisions of the Companies Ac t 2013
relating to fraud and rules thereunder inc luding reporting requirements under CARO.
6. Audit in an Automated Environment: Key features, Impac t of IT related Risks, Impac t o n
Controls, Internal Financ ial Controls as per Regulatory requirements, T ypes of
Controls, Audit approac h, Understanding and doc umenting Automated
environment, T esting methods, data analytic s for audit, assessing and reporting audit
findings.
7. Audit Sampling: Meaning of Audit Sampling; Designing an audit sample; T ypes of
sampling; Sample Size and selec tion of items for testing; Sample selec tion me thod (SA
530
Audit Sampling).

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 8. Analytical Procedure: Meaning, nature, purpose and timing of analytic al proc edures;
Substantive analytic al proc edures, Designing and performing analytic al proc edures prio
r to Audit; investigating the results of analytic al proc edures (SA 520 Analytic al Proc
edures).
9. Audit of Items of Financial Statements: Audit of sale of Produc ts and Servic es; Audit of
Interest Inc ome, Rental Inc ome, Dividend Inc ome, Net gain/loss on sale of Investments
etc .
Audit of Purc hases, Employee benefits expenses, Deprec iation, Interest
expense, Expenditure on Power & Fuel, Rent, Repair to building, Repair to Mac hinery,
Insuranc e, T axes, T ravelling Expenses, Miscellaneous Expenses etc .
Audit of Share Capital, Reserve & Surplus, Long T erm Borrowings , T rade
Payables, Provisions, Short T erm Borrowings & Other Current Liabilities. Audit of Land,
Buildings, Plant & Equipment, Furniture & Fixtures, Vehic les, Offic e
Equipments, Goodwill, Brand/T rademarks, Computer Software etc . Audit of Loan &
Advanc es, T rade Rec eiva b l e , Inventories, Cash & Cash Equivalent, Other Current
Assets. Audit of Contingent Liabilities.
(The list of items is illustrative only)

10. The Company Audit: Eligibility, Qualific ations and Disqualific ations of Auditors;
Appointment of auditors; Removal of auditors; Remuneration of Auditors; Powers and
duties of auditors; Branc h audit; Joint audit; Reporting requirements under the Com p a n i
es Ac t, 2013 inc luding CARO; Other Important Provisions under the Companies Ac t,
2013 relating to Audit and Auditors and Rules made thereunder.
11. Audit Report: Forming an opinion on the Financ ial Statements; Auditor's Report- basic
elements (SA 700 Forming an Opinion and Reporting on Financ ial Statements); T ypes
of Modified Opinion; Circ umstances When a Modific ation to the Auditor’s Opinion is
Requi r e d (SA 705 Modific ation to the Opinion in the Independent Auditor’s Report);
Qualific ation, Disc laimer, Adverse opinion (SA 706 Emphasis of Matter Paragraphs
and Other Matter Paragraphs in the Independent, Auditor’s Report); Nature of
Comparative Information; Corresponding Figure; Comparative Financ ial
Statements (SA 710 Comparative Information – Corresponding Figures and
Comparative Financial Statements).
12. Audit of Banks: Understanding of ac c ounting system in Banks, Audit Approac h, Audit
of Revenue items, Spec ial Consideration in Bank Audit with emphasis on Advanc es
and NPAs.
13. Audit of Different Types of Entities: Appointment of Auditor, Audit Proc edure. Audit
Report in respec t of different Category of Enti ties mentioned below: government; Loc
al bodies and not-for-profit organizations; Partnership Firms, Audit of different type of
undertakings, i.e., Educ ational institutions, Hotels, Clubs, Hospitals Basic s of
Limited Liability Partnerships (LLPs) audit and Co-operative Soc ieties Audit.

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 Note:
(i) T he spec ific inc lusions/exc lusions, in any topic c overed in the syllabus, will be effec
ted every year by way of Study Guidelines.
(ii) T he provisions of the Companies Ac t, 1956 whic h are still in forc e would form part of
the syllabus till the time their c orresponding or new provisions of the Companies Ac t, 20
1 3 a r e enforc ed.
(iii) If new legislations/ Standards on Auditing/Guidance Notes/Statements are enac ted in
place of the existing legislations, the syllabus would inc lude the c orresponding provisions
of su c h new legislations with effec t from a date notified by the Institute. T he c hanges in
this reg a r d would also form part of Study G uidelines.

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 PAPER – 7 : ENTERPRISE INFORMATION SYSTEMS AND
STRATEGIC MANAGEMENT .
(One paper – Three hours – 100 Marks)
SECTION A : ENTERPRISE INFORMATION SYSTEMS (50 MARKS)

Objective: T o develop an understanding of tec hnology enabled Information Systems and their
impac t on enterprise-wide proc esses, risks and c ontrols.
Contents:
1. AUTOMATED BUSINESS PROCESSES
(i) Introduc tion to Enterprise Business Proc esses, Benefits, Risks and
Controls; (ii) Diagrammatic representation of business proc esses using Flowc
harts;
(iii) Risks and c ontrols for spec ific business proc esses: Proc ure to pay (P2P), Order
to
c ash, Inventory Cyc le, Hire to Retire, Supply Chain Management, Fixed Assets etc .
(iv) Applic able regulatory and c omplianc e requirements inc luding c omputer
related offenc es, privac y, c yber-c rime, Sensitive Personal Data Information of
Information T ec hnology Ac t, 2000
2. FINANCIAL AND ACCOUNTING SYSTEMS
(i) Integrated (ERP) and non-integrated systems with related risks and c ontrols;
(ii) Business proc ess modules and their integration with Financ ial and Ac c
ounting systems.
(iii) Reporting Systems and MIS, Data Analytic s and Business Intelligenc e
(iv) Business Reporting and fundamentals of XBRL (eXtensible Business Reporting
Language).
(v) Applic able regulatory and c omplianc e requirements
3. INFORMATION SYSTEMS AND ITS COMPONENTS
(i) Components of Automated Information Systems: Applic ation Systems,
Database, Network and Operating System with related risks and c ontrols.
(ii) Mapping of Organization struc ture with segregation of duties in Information
Systems.

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 4. E-COMMERCE, M -COMMERCE AND EMERGING TECHNOLOGIES
(i) Components and Arc hitec ture of E-Commerc e and M -Commerc e with related
risks and c ontrols
(ii) Business proc ess flow with its related risks and c ontrols
(iii) Applic able regulatory and c omplianc e requirements
(iv) Emerging tec hnologies with its related risks and c ontrols
5. CORE BANKING SYSTEMS
(i) Components and Arc hitec ture of CBS and related risks and c ontrols
(ii) Core modules of banking and Business proc ess flow and its related risks
and c ontrols
(iii) Reporting Systems and MIS, Data Analytic s and Business Intelligenc e
(iv) Applic able regulatory and c omplianc e requirements

SECTION B : STRATEGIC MANAGEMENT (50 MARKS)

Objectives
T o develop an understanding of strategic management c oncepts and tec hniques and a c q u i r
e th e ability to apply the same in business situations.

Contents
1. Introduction to Strategic Management
• Business Polic y
• Meaning and Nature of Strategic management
• Business Strategy
• Strategic Levels in Organizations
• Strategic Management in Government and Not-for-profit organization
2. Dynamics of Competitive Strategy
• Competitive Landsc ape
• Strategic Analysis

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 • Industry and Competitive Analysis
• Core Competenc e
• Competitive Advantage
• Internal and External Analysis
• SWOT Analysis
• Globalization
3. Strategic Management Process
• Strategic Planning
• Strategic Intent - Vision, Mission and Objec tives
• Strategy Formulation
4. Corporate Level Strategies
• Conc epts and Nature of Corporate Strategy
• Strategic Alternatives at Corporate Level
➢ Stability
➢ Growth/Expansion
➢ Business Combinations – Merger and Ac quisition
➢ Strategic Allianc es
➢ Retrenc hment/Turnaround
➢ Combination
5. Business Level Strategies
• Competitive Strategies at Business Level
• Mic hael Porter’s Generic Strategies
• Best-Cost Provider Strategy
6. Functional Level Strategies
• Marketing Strategy
• Financ ial Strategy
• Operations Strategy

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 • Human Resourc e Strategy
• Researc h and Development
7. Organisation and Strategic Leadership
• Organisation Struc ture
• Strategic Business Unit
• Strategic Leadership
• Strategy Supportive Culture
• Entrepreneurship and Intrapreneurship
8. Strategy Implementation and Control
• Strategy Implementation
• Strategic Change
• Strategic Control
• Strategy Audit
• Business Proc ess Reengineering
• Benc hmarking

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 PAPER – 8 : FINANCIAL MANAGEMENT AND ECONOMICS FOR
FINANCE
(One paper – Three hours – 100 Marks)
SECTION A: FINANCIAL MANAGEMENT (60 MARKS)
Objective: T o develop an understanding of various aspe c ts of Financ ial Management
and ac quire the ability to apply suc h knowledge in dec ision -making.
1. Financial Management and Financial Analysis
(i) Introduction to Financial Management Function a)
Objec tive and sc ope of financ ial management b)
Role and purpose
c) Financ ial management environment
d) Func tions of financ e exec utives in an
organization e) Financ ial distress and insolvenc y.
(ii) Financial Analysis through Ratios
a) Users of the financ ial analysis
b) Sourc es of financ ial data for analysis
c) Calc ulation and Interpretation of ratios:
- Analysing liquidity
- Analysing leverage
- Analysing solvenc
y
- Analysing effic ienc y/ ac tivity
- Analysing
profitability d) Limitations of
ratio analysis
2. Financing Decisions
(i) Sources of Finance
a) Different Sourc es of Financ e, Charac teristic s of different types of long
term debt and equity financ e, Method of raising long term financ e

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 b) Different Sourc es of short term Financ
e c) Internal fund as a sourc e of financ e
d) International sourc es of financ e
e) Other sourc es of financ e- Sale and lease bac k, Convertible debt,
Venture c apital, Grants etc .
(ii) Cost of Capital
a) Signific anc e of c ost of c
apital b) Fac tors of c ost of c
apital
c) Measurement of c osts of individual c omponents of c apital
d) Weighted average c ost of c apital (WACC)
e) Marginal c ost of c
apital f) Effec tive Interest
rate
(iii) Capital Structure Decisions
a) Signific anc e of c apital struc
ture b) Determinants of c apital
struc ture
c) Capital struc ture planning and designing
d) Designing of optimum c apital struc ture
e) T heories of Capital Struc ture and value of the firm - relevanc y and Irrelevanc
y
of c apital struc
ture.
f) EBIT - EPS Analysis, Breakeven- EBIT
Analysis. g) Under/ Over Capitalisation.
(iv) Leverages
a) T ypes of Leverages- Operating, Financ ial and
Combined b) Analysis of leverages
3. Capital Investment and Dividend Decisions
(i) Capital Investment Decisions
a) Objec tive of c apital investment dec
isions b) Methods of Investment appraisal:

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 - Paybac k period, Disc ounted paybac k period
- Ac c ounting Rate of Return (ARR),
- Net Present Value (NPV) - T he meaning of NPV, Strengths
and limitations of NPV method, T he working c apital adjustment in an
NPV analysis, Capital rationing, Equivalent Annual Costs,
- Internal Rate of return (IRR)- Limitations of the IRR method, Multiple
IRRs,
- Modified internal Rate of Return (MIRR)- Definition and explanation of
MIRR, T he proc ess for c alc ulating MIRR, Strengths of the
MIRR approac h.
- Profitability Index
(ii) Adjustment of Risk and Uncertainty in Capital Budgeting Decision
a) Probability Analysis
b) Certainty Equivalent M
ethod c) Risk Adjusted Disc
ount Rate d) Sc enario Analysis
e) Sensitivity
Analysis
(iii) Dividend Decisions
a) Basic s of
Dividends b) Forms of
dividend
c) Determinants of dividend
d) Relevanc y and Irrelevanc y of Dividend Polic ies- T raditional Approac h,
Walter’s model, Gordon’s model, Modigliani and Miller (MM) Hypothesis.
4. Management of Working Capital
(i) Management of Working Capital
a) T he management of working c apital- Liquidity and
Profitability
b) T he Working c apital financ ing dec isions- Primary and Sec ondary Sourc es
of
Liquidity
c) T he working Capital Cyc le (operating Cyc le), Effec tiveness of Working
Capital based on its operating and c ash c onversion c yc les

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 d) Assessment of working c apital requirement
e) Management of Ac c ounts Rec eivables (Debtors)
f) Fac toring and Forfaiting
g) Management of Ac c ounts Payables (Creditors)
h) Management of Inventory
i) Management of Cash, T reasury management
j) Banking norms of working c apital financ e

SECTION B : ECONOMICS FOR FINANCE (MARKS: 40)

Objective:

T o develop an understanding of the c onc epts and theories of Ec onomics in the c ontext of
Financ e and ac quire the ability to address applic ation oriented issues.

1. Determination of National Income

(i) Mac ro Ec onomic Aggregates and Measurement of National Inc ome
(ii) T he Keynesian T heory of Determination of National Inc ome
2. The Money Market
(i) T he Conc ept of Money Demand: Important T heories of Demand for Money
(ii) T he Conc ept of Money Supply
(iii) Monetary Polic y
3. Public Finance
(i) Fisc al func tions: An
Overview. (ii) Market Failure
(iii) Government Interventions to Correc t Market Failure
(iv) Fisc al Polic y
4. International Trade
(i) T heories of International T rade
(ii) T rade Polic y – T he Instruments of T rade Polic y
(iii) T rade Negotiations

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 (iv) Exc hange Rates and its ec onomic effec ts
( v) International Capital Movements: Foreign Direc t Investment
.

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