CA - Career and Jobs prospect:
A “Chartered Accountant” is the member of ICAI. The CA as the member of ICAI can use the prefix “CA” after his or her name.
A chartered accountant deals with the financial management and carries out the financial audits. A chartered accountant works as a private advisor or in the accounts department in an organization. Chartered Accountant plays an important role in case of disputes, bankruptcy, budgeting etc.
As a CA, you can work in government or public service undertakings as well as the private sector companies. You can go for the works as auditing, cost accounting, tax management, management accounting, consultancy and financial works in an industry.
You can also have an option to either be employed with a firm as an employee or you can choose to open your own private practice. All industries and organization require the CA for its accounting department. You can work as a finance advisors, managers or directors of finance & also as financial controllers of the particular companies.
The top recruiters of the chartered accountant are as the following:
Responsibilities of Chartered Accountant
How to become a CA:
The Institute of Chartered Accountants of India (ICAI) is a statutory body set up by an Act of Parliament, for the regulation of profession of Chartered Accountancy in the country. The Institute functions under the administrative control of the Ministry of Corporate Affairs, Government of India and is the second largest professional body of Chartered Accountants in the world.
The Institute is playing a prominent role in the international accounting bodies by virtue of its membership and active involvement in the activities of International Federation of Accountants (IFAC), International Accounting Standards Board (IASB), Confederation of Asian and Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA).
Over the years, the Chartered Accountancy profession has achieved rapid growth by virtue of quality professional services being rendered by its members, and has come to occupy a prominent role in our economy and society.
The Board of Studies (BoS) is responsible for formulating and implementing policies and programmes relating to education of students. The mission of the Board of Studies is to provide a strong foundation of knowledge, skills and professional values that enables them to grow as wholesome professionals and adapt to changes throughout their professional career.
Under the Scheme of Education and Training, a candidate can pursue Chartered Accountancy Course either through
(i) Foundation Course Route or (ii) Direct Entry Route.
Foundation Course
This is an entry to the CA Course for the candidates who have appeared for class XII examinations.
Steps under Foundation Route...
Direct Entry Route
The ICAI allows the following candidates to enter directly to its Intermediate Course:
A. Commerce Graduates/Post-Graduates (with minimum 55% marks) or Other Graduates/Post-Graduates (with minimum 60% marks) and
B. Intermediate level passed candidates of Institute of Company Secretaries of India and Institute of Cost Accountants of India
In brief, candidates who are Graduates/ Post Graduates in Commerce having secured in aggregate a minimum of 55% of the total marks or its equivalent grade in the examination conducted by any recognized University (including open University) by studying any three papers carrying a minimum of 50 marks in a semester/year and cumulatively 100 or more marks over the entire duration of the concerned course out of Accounting, Auditing, Mercantile Laws, Corporate Laws, Economics, Management (including Financial Management), Taxation (including Direct Tax Laws and Indirect Tax Laws), Costing, Business Administration or Management Accounting or similar to the title of these papers with different nomenclatures or other than those falling under Commerce stream having secured in aggregate a minimum of 60% of the total marks or its equivalent grade in the examination conducted by any recognized University (including Open University) or Candidates who have passed the Intermediate level examination conducted by The Institute of Cost Accountants of India or by The Institute of Company Secretaries of India are exempted from qualifying Foundation and can register directly to Intermediate Course.
Candidates who are pursuing the Final Year Graduation Course can also register for the Intermediate Course on provisional basis and such student's registration would be regularized and they can commence practical training only on submission of satisfactory proof of having passed the Graduation examination with the specified percentage of marks within six months from the date of appearance in the final year graduation examination and on successful completion of ICITSS (Orientation Course and Information Technology). During the provisional registration period, a candidate can undergo and complete ICITSS (Orientation Course and Information Technology). If such candidate fails to produce the proof within the aforesaid period, his provisional registration shall stand cancelled and the registration and other fees paid by him shall not be refunded/adjusted and no credit shall be given for the theoretical education undergone.
Steps under Direct Entry Scheme for -
A. Eligible Graduates and Post Graduates
B. Students who have passed Intermediate level examination of the Institute of Company Secretaries of India or the Institute of Cost Accountants of India
Chartered Accountant Course 2020 Overview:
Following is the details of registration fees & validity, examination month and subjects of all the levels of Chartered accountancy course:
|
|
CA Foundation Course 2020 |
CA Intermediate Course 2020 |
CA Final |
|
Last date Month of registration |
31 Dec 2019 and 30 June |
28 Feb and 31 August |
No last date |
|
Examination held |
11, 13, 15, 17 May 2020 and November |
Group-I on: 3, 5, 8 & 10 May 2020 and Group-II on: 12, 14 & 16 May 2020 and November |
May and November |
|
Validity of registration |
3 year |
4 year |
5 year |
|
Subjects |
4 |
8 |
8 |
|
Eligibility |
Should appear 12th exams |
Should clear foundation or graduation or PG |
Should clear intermediate level and 3-year practical training |
CA Foundation 2020:
ICAI is conducts CA Foundation exam twice a year – in the month of May and November (earlier known as CPT). CA Foundation May 2020 exam date is May 11, 13, 15, and 17, 2020. The applications for admission to CA Foundation course will start on February 05, 2020 online at icaiexam.icai.org. Those who have passed 10+2 exam is eligible to apply for the exam. It is an entrance level for the chartered accountancy course in India. To appear for CA Foundation May 2020 exam, it is mandatory for the candidates to register with the Board of Studies (BoS).
CA Foundation 2020 Important Dates:
CA Foundation 2020 consists of 4 papers that the candidate has to pass to be deemed as qualified. Following is the schedule for CA Foundation May exam 2020.
|
CA Foundation 2020 |
Dates |
|
Last Date for Registration for May 2020 Session |
31 Dec 2019 |
|
Availability of CA Foundation Exam Form for May 2020 |
05 Feb 2020 |
|
Last date to fill CA Foundation application form |
26 Feb 2020 |
|
Last date to submit application form with late fee |
04 Mar 2020 |
|
Issuance of admit card |
To be notified |
|
CA Foundation May 2020 exam date |
11, 13, 15, 17 May 2020 |
|
Declaration of CA Foundation result |
Mid July 2020 |
|
CA Foundation Registration for November 2020 |
30 Jun 2020 |
Eligibility - Foundation Program:
The students with the commerce or science or arts background can get the admission in CA course. Students should have the knowledge of the computer as the all account work done with the help of a computer.
After the completion of 12th standard, students can take the admission in the CA through the foundation programme (previously known as CPT-Common Proficiency Test).
Interested students can register for the test after passing their 10th examination, though they are supposed to appear for the test after 12th.
Students, those pass their graduation with commerce stream, they are required to pass their 12th exam with minimum 50% aggregate marks.
Non-commerce graduate can also apply for the CPT, if they clear their 10+2 examination with at least 55% marks excluding mathematics & 60% marks including mathematics.
Papers of Foundation Course:
Paper 1: Principles and Practice of Accounting (100 Marks)
Paper 2: Business Laws & Business Correspondence and Reporting (100 Marks)
Section A: Business Laws (60 Marks)
Section B: Business Correspondence and Reporting (40 Marks)
Paper 3: Business Mathematics and Logical Reasoning & Statistics (100 Marks)
Part I: Business Mathematics and Logical Reasoning (60 Marks)
Part II: Statistics (40 Marks)
Paper 4: Business Economics & Business and Commercial Knowledge (100 Marks)
Part I: Business Economics (60 Marks)
Part II: Business and Commercial Knowledge (40 Marks)
CA Foundation 2020- Exam Pattern:
Candidates who are preparing for the CA Foundation must know the exam pattern of the test. Check the complete exam pattern for CA Foundation below.
There are four subjects related to basic accounting and auditing principles of 100 marks each. Where 2 paper is subjective types and the other 2 are objective type paper.
Paper-3 and Paper-4 are objective type papers with negative marking.
Note: The Board of Studies issues comprehensive study materials covering all four subjects.
|
Paper |
Duration |
|
Paper 1 |
03 hours |
|
Paper 2 |
03 hours |
|
Paper 3 |
02 hours |
|
Paper 4 |
02 hours |
CA Foundation- May 2020 Exam Timings:
The exam timings for CA Foundation 2020 exam is as follows:
|
Name of the paper |
Exam timings |
|
Paper 1 |
2 PM to 5 PM |
|
Paper 2 |
2 PM to 5 PM |
|
Paper 3 |
2 PM to 4 PM |
|
Paper 4 |
2 PM to 4 PM |
Register for Foundation Course:
A candidate has to register for Foundation Course by filling Online Registration Form available on ICAI website (www.icai.org) in “Course Registration Forms” under “Students tab”. While filling the online form, candidates should take care of the following:
After filling the Online Form pay the required fees online using the payment gateway.
On successful payment, system will automatically generate the Form, which is to be printed.
Following documents are to be submitted to concerned Regional Office within 7 days of the date of online registration along with the print out of the online registration form, duly signed by the candidate.
The duly signed printout of online successful registration form in hard copy
Attested copy of Admit Card / Mark sheet of Class 12 examination issued by the respective Board
One recent colour photograph (affixed on the printout of the online successful registration form)
Attested copy of proof of Nationality, if student is a foreigner
Attested copy of proof of special category certificate i.e SC/ST, OBC, Differently abled
Attested copy of the 10th Marksheet/ Admit Card of 10th class indicating the Name & Date of Birth
|
The form and documents are to be submitted in consonance with the address at the following Regional Offices: Gujarat, Maharashtra, Goa and Union Territories of Daman & Diu and Dadra & Nagar Haveli |
Western India Regional Council of The Institute of Chartered Accountants of India ICAI BHAWAN, 27, Cuffe Parade, Colaba, Mumbai – 400 005, Phone: 022 -39893989 Fax: 022-39802953 ICAI Tower, C-40, G Block, Opp. MCA Ground, Beside Standard Chartered Bank, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051 E-mail: wro@icai.in Rajasthan Vidyarthi GRUH, Lallubhai Park, Andheri West, Mumbai – 400 058 |
|
Andhra Pradesh, Telangana, Kerala, Karnataka, Tamil Nadu and the Union Territories of Pondicherry and Lakshadweep Islands |
Southern India Regional Council of The Institute of Chartered Accountants of India ICAI BHAWAN, 122, M.G. Road, Post Box No. 3314, Nungambakkam, Chennai – 600 034 Phone: 044-39893989 Fax: 044-30210355 E-mail: sro@icai.in |
|
Assam, Meghalaya, Nagaland, Odisha, West Bengal, Manipur, Tripura, Sikkim, Arunachal Pradesh, Mizoram, Andaman -Nicobar Islands |
Eastern India Regional Council of The Institute of Chartered Accountants of India ICAI BHAWAN, 7, Anandilal Poddar Sarani (Russell Street), Kolkata – 700 071 Phone: 033-39893989, Fax: 033-30211145 E-mail: ero@icai.in |
|
Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan, Uttarakhand, Chhattisgarh and Jharkhand |
Central India Regional Council of The Institute of Chartered Accountants of India ICAI BHAWAN, Post Box No. 314, 16/77 B, Civil Lines, Behind Reserve Bank of India, Kanpur – 208 001 Phone: 0512-3989398, Fax: 0512-3011173 E-mail: cro@icai.in |
|
Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab and Union Territory of Chandigarh |
Northern India Regional Council of The Institute of Chartered Accountants of India ICAI BHAWAN, 52-54, Institutional Area, Vishwas Nagar, Shahdara, Near, Karkardooma Courts, Delhi - 110 032 Phone: 011-39893990, 30210601, Fax: 011-30210680 E-mail: nro@icai.in |
Registration Fee:
|
Sl. No. |
Details of Fee |
Rs. |
For foreign Students (US $) |
|
1 |
Cost of Foundation Prospectus |
200 |
20 |
|
2 |
Foundation Registration fee |
9,000 |
700 |
|
3 |
Subscription for Students’ Journal (For One Year) (Optional) |
200 |
20 |
|
4 |
Subscription for Members’ Journal (For One Year) (Optional) |
400 |
40 |
|
TOTAL |
9,800 |
780 |
|
Syllabus CA Foundation 2020:
1. Theoretical Framework
i. Meaning and Scope of accounting
ii. Accounting Concepts, Principles and Conventions
iii. Accounting terminology - Glossary
iv. Capital and revenue expenditure, Capital and revenue receipts, Contingent assets and contingent liabilities
v. Accounting Policies
vi. Accounting as a Measurement Discipline - Valuation Principles, Accounting Estimates
vii. Accounting Standards - Concepts and Objectives
viii. Indian Accounting Standards - Concepts and Objectives
2. Accounting Process
I. Books of Accounts
ii. Preparation of Trial Balance
iii. Rectification of Errors
3. Bank Reconciliation Statement
Introduction, reasons, preparation of bank reconciliation statement.
4. Inventories
Cost of inventory, Net realizable value, Basis and technique of inventory valuation and record keeping.
5. Concept and Accounting of Depreciation
Concepts, Methods of computation and accounting treatment of depreciation, Change in depreciation methods.
6. Accounting for Special Transactions
i. Bills of exchange and promissory notes
Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills.
ii. Sale of goods on approval or return basis
Meaning of goods sent on approval or return basis and accounting treatment.
iii. Consignments
Meaning and Features of consignment business, Difference between sale and consignment, Accounting treatments for consignment transactions and events in the books of consignor and consignee.
iv. Joint Ventures for non-corporate entities
Meaning and Features of joint venture transactions, Distinction between joint venture and partnership, Methods of maintaining joint venture accounts.
v. Royalty accounts
Meaning of the term “Royalty” and Accounting Treatment thereof.
vi. Average due Date
Meaning, Calculation of average due date in various situations.
vii. Account Current
Meaning of Account Current, Methods of preparing Account Current.
7. Final Accounts of Sole Proprietors
Elements of financial statements, Closing Adjustment Entries, Trading Account, Profit and Loss Account and Balance Sheet of Manufacturing and Non-manufacturing entities.
8. Partnership Accounts
i. Final Accounts of Partnership Firms
ii. Admission, Retirement and Death of a Partner including Treatment of Goodwill
iii. Introduction to LLPs and Distinction of LLPs from Partnership.
9. Financial Statements of Not-for-Profit Organizations
Significance of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet, Difference between Profit and Loss Account and Income and Expenditure Account. Preparation of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.
10. Introduction to Company Accounts
i. Definition of shares and debentures
ii. Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
iii. Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013.
11. Basic Accounting Ratios (profitability, solvency, liquidity and turnover)
Section A - Business Laws- 60 Marks
1. The Indian Contract Act, 1872: An overview of Sections 1 to 75 covering the general nature of contract, consideration, other essential elements of a valid contract, performance of contract, breach of contract, Contingent and Quasi Contract.
2. The Sale of Goods Act, 1930: Formation of the contract of sale, Conditions and Warranties, Transfer of ownership and delivery of goods, Unpaid seller and his rights.
3. The Indian Partnership Act, 1932: General Nature of Partnership, Rights and duties of partners, Reconstitution of firms, Registration and dissolution of a firm.
4. The Limited Liability Partnership Act, 2008: Introduction- covering nature and scope, Essential features, Characteristics of LLP, Incorporation and Differences with other forms of organizations.
5. The Companies Act, 2013: Essential features of company, corporate veil theory, Classes of companies, types of share capital, Incorporation of company, Memorandum of Association, Articles of Association, Doctrine of Indoor Management
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 dates notified by the Institute.
Paper 2: Section B - Business Correspondence and Reporting- 60 Marks
Contents
Part I:
1. Communication
i. Types
ii. Directions
iii. Network
iv. Process
v. Problems
vi. Barriers
vii. Types of Communication
a. Interpersonal Skills
b. Listening Skills
c. Emotional Intelligence
viii. Exercises with Answers
Part II: Sentence Types and Word Power
2. Sentence Types (Direct-Indirect, Active-Passive Speech)
i. Sentence: Definition
ii. Classification of sentence based on connotation
a. Assertive sentences
b. Interrogative sentences
c. Imperative sentences
d. Exclamatory sentences
e. Optative sentences
iii. Sentence Structure
a. Subject and Predicate
b. Verb (Auxiliary, Finite)
c. Object (Direct, Indirect)
d. Complement
e. Adjunct or Adverbial
f. Clause Structure
g. Types of Clauses
1. Independent clauses
2. Dependent clauses
3. Relative or noun clauses
iv. Types of sentences
a. Simple sentence
b. Compound sentence
c. Complex sentence
d. Compound-complex sentence
v. Direct-Indirect Speech
a. Introduction
b. Procedure for converting Direct speech into Indirect speech
- Rules for converting Direct speech into Indirect speech
- Change in pronouns
- Change in tenses
- Change in modals
- Changes for Imperative sentences
- Changes for Exclamatory sentences
- Changes for Interrogative sentences
- Punctuation in Direct speech
c. Rules for converting Indirect speech into Direct speech
vi. Active Passive Voice: Introduction
a. Usage: Active Vs passive voice
b. Reasons for using Passive voice
c. Changing Passive voice to Active voice
d. Changing Active voice to Passive voice
e. Suggestions for using Active and Passive voice
vii. Verbs Voice: Active or passive
viii. Exercises with Answers
3. Vocabulary Root Words, Synonyms, Antonyms, Prefixes, Suffixes), Phrasal verbs, Collocations & Idioms
I. Introduction
i. Significance of improving vocabulary
ii. How to improve vocabulary
iii. Root words
iv. Synonyms and Antonyms
v. Words formed by using Prefixes
vi. Words formed by using Suffixes
vii. Phrasal verbs
viii. Collocations
ix. Idioms
x. Exercises with Answers
Part III: Comprehension Passages and Note Making
4. Comprehension Passages
i. Introduction to Comprehension Passages
ii. Points to ponder
iii. Sample Passages with answers
iv. Exercises with Answers
5. Note Making
i. Introduction to Note Making
ii. Significance of Note Making
iii. Detailed Format Heading (Title)
a. Sub-heading
b. Indentation
c. Points
d. Use of abbreviations
e. Summary
f. Content
g. Expression
iv. Steps to Comprehend and summarize text
v. Helpful Hints
vi. Sample Passages with Notes
vii. Exercises with Answers
Part IV: Developing Writing Skills
6. Introduction to Basic Writing
i. Introduction
ii. Process of writing
iii. Styles of Writing
iv. Significance of writing skills for students
v. Writing Conventions
vi. Characteristics of good writing
vii. Do's and Don'ts of good writing
viii. Exercises with Answers Hints
7. Précis Writing
i. What is Précis writing?
ii. Features of good Précis writing
iii. How to write a Précis
iv. Do's and Don'ts of Précis writing
v. Examples (Passages with Précis)
vi. Exercises with Answers
8. Article Writing
i. What is an Article?
ii. Essential elements of Article Writing
iii. Detailed Format
a. Title
b. By- Writer's Name
c. Body
- Introduction
- Main Idea-Support
- Conclusion
d. Sample Articles
e. Exercises with Answers
9. Report Writing
i. What is a Report?
ii. Essential elements of Report Writing
iii. Kinds of Reports
a. Reporting for a Meeting/Assembly
b. Reporting for a Newspaper
c. Reporting for a Magazine
iv. Detailed Format for (iii) above
a. Title
b. By- Writer's Name
c. Place, Date
d. Body
- What
- When
- Where
- Who
- How
e. Tips and Conventions of Report Writing
f. Sample Reports
g. Exercises with Answers Clues
10. Writing Formal Letters
i. Types of Letters
a. Circulars
b. Complaints
c. Memos
d. Promotional Content
e. Sales
f. Recovery/Remittances
ii. Detailed format for (I) above
a. Date
b. Salutation
c. Subject
d. Body of the letter
- First paragraph
- Second paragraph
e. Complimentary Closure
iii. Points to Remember
iv. Sample Letters
v. Exercises with Answers Clues
11. Writing Formal Mails
i. How to Write a Formal Mail?
ii. Writing Effective Mails
iii. Essential elements of Mails
a. Subject line
b. Formal Greetings
c. Target Audience (Reader)
d. Clarity and Conciseness
e. Formal Closing
f. Proof read
g. Feedback
iv. Tips and Conventions of Mails
v. Sample Mails
vi. Exercises with Answers Clues
12. Resume Writing
i. Essential Elements of Resume
a. Name and contact details
b. Objective Summary
c. Academic Qualifications and Achievements
d. Co-curricular Achievements
e. Training Programs attended/completed
f. Strengths
g. Interests/Hobbies
h. Declaration
I. Signature
ii. Resume Writing Tips and Conventions
iii. Sample Resumes
iv. Exercises with Answers Clues
13. Meetings
i. Notice
ii. Agenda
iii. Drafting minutes
iv. Action Taken Report
v. Exercises with Answers Clues.
Contents
Part A: Business Mathematics- 40 Marks
1. Ratio and Proportion, Indices and Logarithms
Ratio and Proportion (Business Applications related to Ratio and Proportion) Laws of Indices, Exponents and Logarithms and Anti Logarithms.
2. Equations and Matrices
i. Equations: Simultaneous linear equations up to three variables, Quadratic and Cubic equations in one variable.
ii. Matrices: Algebra of Matrices, Inverse of a Matrix and determinants, solving system of equations by Cramer's Rule (involving not more than three variables).
3. Linear Inequalities with Objective Functions and Optimization w.r.t. objective function.
4. Time value of Money
i. Simple Interest
ii. Compound interest
iii. Depreciation
iv. Effective Rate of Interest
v. Present Value
vi. Net Present Value
vii. Future Value
viii. Perpetuity
ix. Annuities
x. Sinking Funds
xi. Valuation of Bonds
xii. Calculations of Returns
a. Nominal Rate of Return
b. Effective Rate of Return
c. Compound Annual Growth Rate (CAGR).
5. Permutations and Combinations
Basic concepts of Permutations and Combinations: Introduction, Factorial, Permutations results, Circular Permutations, Permutations with restrictions, Combinations with standard results.
6. Sequence and Series
Introduction Sequences, Series, Arithmetic and Geometric progression, Relationship between AM and GM and Sum of n terms of special series
7. Sets, Relations and Functions
8. Basic applications of Differential and Integral calculus (Excluding the trigonometric applications), Applications of Marginal Cost and Marginal Revenue etc.
Part B: Logical Reasoning 20 Marks
1. Number series, Coding and Decoding and odd man out.
2. Direction Tests
3. Seating Arrangements
4. Blood Relations
5. Syllogism.
Part C: Statistics 40 Marks
1. Statistical description of Data
Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical representation of Frequency Distribution - Histogram, Frequency Polygon, Ogive, Pie-chart.
2. Measures of Central tendency and Dispersion
Measures of Central Tendency and Dispersion: Mean, Median, Mode, Mean Deviation, Quartiles and Quartile Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation.
3. Probability
Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability and Mathematical Expectation.
4. Theoretical Distributions
Theoretical Distributions: Binomial Distribution, Poisson distribution – Basic application and Normal Distribution - Basic applications.
5. Correlation and Regression
Correlation and Regression: Scatter diagram, Karl Pearson's Coefficient of Correlation Rank Correlation, Probable Error and Probable limits. Regression lines, Regression equations, Regression coefficients.
6. Index Numbers and Time Series
a. Index Numbers: Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of Index Numbers.
b. Time Series Analysis - Components of Time Series and Calculation of Trend by Moving Average Method.
Part I - Business Economics 60 Marks
Contents
1. Introduction to Business Economics
i. Meaning and scope of Business Economics
ii. Basic problems of an Economy and role of Price Mechanism.
2. Theory of Demand and Supply
i. Meaning and determinants of demand, Law of demand and Elasticity of demand ─ Price, Income and Cross elasticity
ii. Theory of consumer's behaviour - Marshallian approach and Indifference curve approach
iii. Demand Forecasting
iv. Meaning and determinants of supply, Law of supply and Elasticity of supply.
3. Theory of Production and Cost
i. Meaning and Factors of production
ii. Laws of Production - The Law of Variable Proportions and Laws of Returns to Scale, Producer's equilibrium
iii. Concepts of Costs - Short-run and long-run costs, Average and marginal costs, Total, fixed and variable costs.
4. Price Determination in Different Markets
i. Various forms of markets - Perfect Competition, Monopoly, Monopolistic Competition and Oligopoly
ii. Price determination in these markets.
5. Business Cycles
i. Meaning
ii. Phases
iii. Features
iv. Causes behind these Cycles.
Part II - Business and Commercial Knowledge- 40 Marks
Contents
1. Business and Commercial Knowledge - An Introduction
Nature of Business, Profession and Employment. Objectives of Business. Economic and Non-Economic Activities, Forms of Business Organizations.
2. Business Environment
Micro and Macro Environment, Elements of Micro Environment – Consumers/ Customers, Competitors, Organization, Market, suppliers, Intermediaries, Elements of Macro Environment – Demographic, Economic, Political-legal, Socio-cultural, Technological, Global Environment.
3. Business Organizations
Overview of selected Indian and Global Companies.
4. Government Policies for Business Growth
Policies creating conducive business environment such as Liberalization, Privatization, Foreign Direct Investment.
5. Organizations Facilitating Business
i. Indian Regulatory Bodies - RBI, SEBI, CCI, IRDAI
ii. Indian Development Banks - IFCI, SIDBI, EXIM Bank, NABARD
6. Common Business Terminologies
i. Finance and Stock & Commodity Markets Terminology
ii. Marketing Terminology
iii. Banking Terminology
iv. Other Business Terminology.
Note: Students are expected to read at least one financial newspaper and one business magazine on a regular basis.
They may also watch a business channel to remain updated about the developments related to commercial world.
CA Foundation Admit Card 2020:
CA Foundation 2020 admit card shall be available for download online at icaiexam.icai.org or through the direct link on this page. To download admit card, candidates require their login id and password. Along with the print out of the CA Foundation Admit Card, you will also have to carry a valid ID proof on the day of the test. No candidates shall be allowed to appear for the exam, if not carrying CA Foundation Admit Card 2020.
CA Foundation Result 2020:
The CA Foundation 2020 result shall be announced in online mode only. Candidates will have to enter their roll number and registration number or PIN for downloading the CA Foundation 2020 result. Candidates will also get the option to check their CA Foundation result via SMS and e-mail. The CA Foundation 2020 result will contain the candidate’s paper-wise and overall score, and the passing status.
CA Intermediate Course 2020: Direct Entry Route:
Eligibility Criteria:
The ICAI allows the following candidates to enter directly to its Intermediate Course
A. Commerce Graduates/Post-Graduates (with minimum 55% marks) or Other Graduates/Post-Graduates (with minimum 60% marks) and
B. Intermediate level passed candidates of Institute of Company Secretaries of India and Institute of Cost Accountants of India
Candidates who are Graduates/ Post Graduates in Commerce having secured in aggregate a minimum of 55% of the total marks or its equivalent grade in the examination conducted by any recognized University (including open University) by studying any three papers carrying a minimum of 50 marks in a semester/year and cumulatively 100 or more marks over the entire duration of the concerned course out of Accounting, Auditing, Mercantile Laws, Corporate Laws, Economics, Management (including Financial Management), Taxation (including Direct Tax Laws and Indirect Tax Laws), Costing, Business Administration or Management Accounting or similar to the title of these papers with different nomenclatures or other than those falling under Commerce stream having secured in aggregate a minimum of 60% of the total marks or its equivalent grade in the examination conducted by any recognized University (including Open University) or Candidates who have passed the Intermediate level examination conducted by The Institute of Cost Accountants of India or by The Institute of Company Secretaries of India are exempted from qualifying Foundation and can register directly to Intermediate Course.
CA Intermediate Course 2020- Provisional Registration:
Candidates who are pursuing the Final Year of Graduation Course can also register for the Intermediate Course on provisional basis and their registration would be regularized only on submission of satisfactory proof of having passed the Graduation examination with the specified percentage of marks within six months from the date of appearance in the final year graduation examination then they can commence practical training and on completion of ICITSS (Information Technology (IT) and Orientation Course (OC)). During the provisional registration period, a student can undergo and complete ICITSS (IT and OC). If such candidate fails to produce the proof within the aforesaid period, his provisional registration shall stand cancelled and the registration and other fees paid by him shall not be refunded/ adjusted and no credit shall be given for the theoretical education undergone.
CA Intermediate Course 2020- Conversion to Direct Entry Route:
Existing Students of Common Proficiency Course / Foundation Course on being eligible to join Intermediate Course through Direct Entry can any time register for Intermediate Course through Direct route by paying the Intermediate Registration fees only.
Students of Intermediate Course through CPT / Foundation Course on being eligible to join Intermediate Course through Direct Entry can convert to Intermediate through Direct Entry route by paying Rs. 500/- as conversion charges (study material will not be provided as has already been issued at the time of registration) and register for the balance group of Intermediate, if any.
Existing Students of Intermediate (IPC) Course through CPT / Foundation Course on being eligible to join Intermediate Course through Direct Entry can convert to Intermediate through Direct route by paying ` 1000 as conversion charges and study material will be provided free of cost but have to register for the balance group of Intermediate, if any.
CA Intermediate Course 2020- Registration Procedure:
Candidates have to register for Intermediate Course under both routes by filling Online Registration Form available on ICAI website(www.icai.org) in “Course Registration Forms” under “Students tab”.
Candidates while filling the online form should take care of the following
- After filling the Online Form pay, the required fees online using the payment gateway.
- On successful payment, system will automatically generate the Form, which is to be printed.
Following documents are to be submitted to concerned Regional Office within 7 days of the date of online registration along with the print out of the online registration form, duly signed by the student
On completion of the registration process, the study material will be sent to the students through Centralized Dispatch System (CDS).
CA Intermediate Course 2020- Registration Fees:
Candidates through Foundation Route can opt for registration for Group I or Group II or Both Groups of Intermediate
while Direct Entry Route candidates have to register for both the groups only. Payment of the fees is to be made as per the below chart.
|
Registration Options / Various charges
|
Both Groups (INR) |
Both Groups (US$)
|
Group I / II (INR) |
Group I / II (US$) |
|
Registration Fee
|
15,000 |
|
11,000 |
|
|
Students' Activities Fee
|
2,000 |
|
2000* |
|
|
Registration fee as articled assistant
|
1000 |
|
|
|
|
Total Fees
|
18000 |
1000 |
13000 |
600 |
* To be paid once
Cost of Prospectus Rs. 200 (US $ 20) is to be paid by direct entry students in addition to above fees.
CA Intermediate Course 2020- Syllabus:
Contents-
1. Process of formulation of Accounting Standards including Ind ASs (IFRS converged standards) and IFRSs; convergence vs adoption; objective and concepts of carve outs.
2. Framework for Preparation and Presentation of Financial Statements (as per Accounting Standards).
3. Application of Accounting Standards:
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventories
AS 3 : Cash Flow Statements
AS 4 : Contingencies and Events occurring after the Balance Sheet Date
AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 10 : Property, Plant and Equipment
AS 11 : The Effects of Changes in Foreign Exchange Rates
AS 12 : Accounting for Government Grants
AS 13 : Accounting for Investments
AS 16 : Borrowing Costs
AS 17 : Segment Reporting
AS 22 : Accounting for Taxes on Income
4. Company Accounts
i. Preparation of financial statements - Statement of Profit and Loss, Balance Sheet and Cash Flow Statement;
ii. Managerial Remuneration;
iii. Accounting for tax: Concept of deferred tax asset and deferred tax liability in line with AS 22 “Accounting for Taxes”;
iv. Profit (Loss) prior to incorporation;
v. Accounting for bonus issue and right issue;
vi. Redemption of preference shares;
vii. Redemption of debentures.
5. Accounting for Special Transactions
I. Investment;
ii. Insurance claims for loss of stock and loss of profit;
iii. Hire - purchase and Instalment sale transactions.
6. Special Type of Accounting
i. Departmental accounting;
ii. Accounting for branches including foreign branches;
iii. Accounts from incomplete records.
7. 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.
NOTE If either new Accounting Standards (AS), Announcements and Limited Revisions to AS are issued or the earlier ones are withdrawn or new AS, Announcements and Limited Revisions to AS are issued in place of existing AS, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified by the Institute.
Part I: Company Law (60 Marks)
Contents-
The Companies Act, 2013 - Sections 1 to 148
1. Preliminary
2. Incorporation of Company and Matters Incidental thereto
3. Prospectus and Allotment of Securities
4. Share Capital and Debentures
5. Acceptance of Deposits by companies
6. Registration of Charges
7. Management and Administration
8. Declaration and payment of Dividend
9. Accounts of Companies
10. Audit and Auditors.
NOTE The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
Part II: Other Laws (40 Marks)
Contents-
1. The Indian Contract Act, 1872 (Specific contracts covered from section 123 onwards): Contract of Indemnity and Guarantee, Bailment, Pledge, Agency.
2. The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments, Characteristics, Classification 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 Applicability, General Rules of Construction, Powers and Functionaries, Provisions as to Orders, Rules, etc. made under Enactments, Miscellaneous.
4. Interpretation of Statutes: Rules of Interpretation of statutes, Aids to interpretation, Rules of Interpretation / construction of Deeds and Documents.
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. Similarly, 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.
Paper 3- Cost and Management Accounting: One Paper - Three Hours - 100 Marks
Contents-
1. Overview of Cost and Management Accounting
i. Introduction to Cost and Management Accounting
a. Objectives and Scope of Cost and Management Accounting,
b. The users of Cost and Management accounting information, Functions of management accounting.
c. Role of cost accounting department in an organisation and its relation with other departments.
d. Installation of Costing System
e. Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.
f. Cost terms and Concepts
g. Cost Reduction and Cost Control
h. Elements of Costs
i. Cost behaviour pattern, Separating the components of fixed, variable, semi-variable and step costs.
j. Methods of Costing, Techniques of Costing.
k. Cost Accounting with use of Information Technology.
ii. Elements of Cost and preparation of Cost Sheets
a. Functional classification and ascertainment of cost
b. Preparation of Cost Sheets for Manufacturing sector and for Service sector
2. Ascertainment of Cost and Cost Accounting System
i. Material Cost
a. Procurement procedures- Store procedures and documentation in respect of receipts and issue of stock, Stock verification,
b. Valuation of material receipts,
c. Inventory control
- Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock level,
- Determination of Optimum Order quantity- Economic Order Quantity (EOQ),
- Techniques of Inventory control- ABC Analysis, Fast, slow moving and Non-moving (FSN), High,
- Medium, Low (HML), Vital, Essential, Desirable (VED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios,
d. Inventory Accounting
e. Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounting, monitoring consumption.
ii. Employee Cost
a. Attendance and Payroll procedures
- Elements of wages- Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances and perquisites.
b. Employee Cost Control
c. Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover.
d. Utilisation of Human Resource, Direct and indirect employee Cost, charging of employee cost, Identifying employee hours with work orders or batches or capital jobs.
e. Remuneration systems and incentive schemes Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages.
iii. Direct Expenses
a. Direct expenses
b. Nature of Direct or Chargeable expenses.
c. Sub-contracting- Control on material movements, Identification with the main product or service.
iv. Overheads
a. Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.
b. Behavioural analysis- Fixed, Variable and Semi- Variable.
c. Allocation and Apportionment of overheads using Absorption Costing Method.
d. Factory Overheads- Primary and secondary distribution,
e. Administration Overheads- Method of allocation to cost centres or products,
f. Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.
g. Treatment of Research and development cost in cost accounting.
v. Concepts of Activity Based Costing (ABC)
vi. Recording and Accounting of Costs
a. Non-integrated Cost Accounting system- Ledger under non-integral system
b. Integrated (Cost and Financial) Accounting system- Ledgers under integral system.
c. Difference between the Non- integrated and Integrated Accounting system.
d. Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated Accounting System).
3. Methods of Costing
i. Single Output/ Unit Costing
ii. Job Costing: Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.
iii. Batch Costing: Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective work.
iv. Contract Costing
a. Ascertainment of cost of a contract, Progress payment, Retention money, Escalation clause, Cost plus contract, Value of work certified, Cost of Work not certified.
b. Determination Value of work certified, Cost of work not certified, Notional or Estimated profit from a contact.
v. Process / Operation Costing
a. Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of production, Inter-process profit, Valuation of work in process.
b. Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products,
c. By-products- Methods of apportioning joint costs over by-products, treatment of By-product cost.
vi. Costing of Service Sectors
a. Determination of Costs and Prices of services of following sectors/ Industries:
- Transport, Toll roads, Hospitals, Canteen/ Restaurants, Hotels/ Lodges, Educational Institutions, Financial Institutions/ Banks, Insurance, IT sector and other services.
D. Cost Control and Analysis
i. Standard Costing
a. Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.
b. Calculation and Reconciliation of Cost Variances-
- Material Cost Variance, employee Cost Variance, Variable Overheads Variance and Fixed Overhead Variance.
ii. Marginal Costing
a. Basic concepts of marginal costing, Contribution margin, Break-even analysis, Break –even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume-Profit Analysis (CVP), Multi- product break- even analysis, Consideration of Limiting factor (key factor),
b. Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,
c. Comparison of Marginal costing with absorption costing method- Reconciliation of profit under the both methods,
d. Short term decision making using the above concepts (basic / fundamental level).
iii. Budget and Budgetary Control
a. Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.
b. The use of budget in planning and control
c. Flexible budget, Preparation of Functional budget for operating and non- operating functions, Cash budget, Master budget,
d. Introduction to Principal/ Key budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios and Budget variances.
Section A: Income-tax Law (60 Marks)
Contents
1. Basic Concepts
i. Income-tax law: An introduction
ii. Important definitions in the Income-tax Act, 1961
iii. Concept of previous year and assessment year
iv. Basis of Charge and Rates of Tax
2. Residential status and scope of total income
i. Residential status
ii. Scope of total income
3. Incomes which do not form part of total income (other than charitable trusts and institutions, political parties and electoral trusts)
i. Incomes not included in total income
ii. Tax holiday for newly established units in Special Economic Zones
4. Heads of income and the provisions governing computation of income under different heads
i. Salaries
ii. Income from house property
iii. Profits and gains of business or profession
iv. Capital gains
v. Income from other sources
5. Income of other persons included in assessee's total income
i. Clubbing of income: An introduction
ii. Transfer of income without transfer of assets
iii. Income arising from revocable transfer of assets
iv. Clubbing of income of income arising to spouse, minor child and son's wife in certain cases
v. Conversion of self-acquired property into property of HUF
6. Aggregation of income; Set-off, or carry forward and set-off of losses
i. Aggregation of income
ii. Concept of set-off and carry forward and set-off of losses
iii. Provisions governing set-off and carry forward and set-off of losses under different heads of income
iv. Order of set-off of losses
7. Deductions from gross total income
i. General provisions
ii. Deductions in respect of certain payments
iii. Specific deductions in respect of certain income
iv. Deductions in respect of other income
v. Other deductions
8. Computation of total income and tax liability of individuals
i. Income to be considered while computing total income of individuals
ii. Procedure for computation of total income and tax liability of individuals
9. Advance tax, tax deduction at source and introduction to tax collection at source
I. Introduction
ii. Direct Payment
iii. Provisions concerning deduction of tax at source
iv. Advance payment of tax
v. Interest for defaults in payment of advance tax and deferment of advance tax
vi. Tax collection at source - Basic concept
vii. Tax deduction and collection account number
10 Provisions for filing return of income and self-assessment
i. Return of Income
ii. Compulsory filing of return of income
iii. Fee and Interest for default in furnishing return of income
iv. Return of loss
v. Provisions relating to belated return, revised return etc.
vi. Permanent account number
vii. Persons authorized to verify return of income
viii. Self-assessment.
Section B: Indirect Taxes (40 Marks)
Contents-
1. Concept of indirect taxes
i. Concept and features of indirect taxes
ii. Principal indirect taxes
2. Goods and Services Tax (GST) Laws
i. GST Laws: An introduction including Constitutional aspects
ii. Levy and collection of CGST and IGST
a. Application of CGST/IGST law
b. Concept of supply including composite and mixed supplies
c. Charge of tax
d. Exemption from tax
e. Composition levy
iii. Basic concepts of time and value of supply
iv. Input tax credit
v. Computation of GST liability
vi. Registration
vii. Tax invoice; Credit and Debit Notes; Electronic way bill
viii. Returns
ix. Payment of tax including reverse charge
NOTE If any new legislation(s) is enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be notified by the Institute. Similarly, 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. Students shall not be examined with reference to any particular State GST Law.
Consequential/corresponding amendments made in the provisions of the Income-tax law and Goods and Services Tax laws covered in the syllabus of this paper which arise out of the amendments made in the provisions not covered in the syllabus will not form part of the syllabus. Further, the specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines. The specific inclusions/exclusions may also arise due to additions / deletions every year by the Annual Finance Act.
Group II - Paper 5- Advanced Accounting: One Paper - Three Hours - 100 Marks
Contents-
1. Application of Accounting Standards
AS 7 : Construction Contracts
AS 9 : Revenue Recognition
AS 14: Accounting for Amalgamations
AS 18 : Related Party Disclosures
AS 19: Leases
AS 20 : Earnings Per Share
AS 24 : Discontinuing Operations
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
2. Application of Guidance Notes issued by the ICAI on specified accounting aspects.
3. Special Aspects of Company Accounts
i. Accounting for employee stock option plan;
ii. Buy back of securities;
iii. Equity shares with differential rights;
iv. Underwriting of shares and debentures.
4. Reorganization of Companies
i. Accounting for amalgamation (excluding inter-company holding) and reconstruction;
ii. Accounting involved in liquidation of companies.
5. Financial Reporting of Banking, Financial Services and Insurance (BFSI)
i. Insurance Companies;
ii. Banking companies;
iii. Non-Banking Financial Companies;
iv. Mutual funds
and regulatory requirements thereof.
6. Valuation of goodwill
7. Consolidated Financial Statements
Concept of consolidation and simple problems on Consolidated Financial Statements with single subsidiary (excluding problems involving acquisition of Interest in Subsidiary at Different Dates; Different Reporting Dates; Disposal of a Subsidiary and Foreign Subsidiaries)
NOTE 1. If either new Accounting Standards (ASs), Announcements and Limited Revisions to ASs are issued or the earlier ones are withdrawn or new ASs, Announcements and Limited Revisions to AS are issued in place of existing ASs, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified.
2. The specific inclusions /exclusions, in any topic covered in the syllabus, will be effective every year by way of Study Guidelines. The list of applicable Guidance Notes in Accounting will also form part of the Study Guidelines.
Contents-
1. Nature, Objective and Scope of Audit
Auditing Concepts: Nature, objective and scope of Audit; Relationship of auditing with other disciplines;
Standard Setting Process: Overview, Standard-setting process, Role of International Auditing and Assurance Standards Board (IAASB) & Auditing and Assurance Standards Board (AASB); Standards on Auditing, Guidance 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 Historical Financial Information, and Other Assurance and Related Services Engagements); Ethical requirements relating to an audit of financial statements; Inherent Limitations of an audit (SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing); Preconditions for an audit; Audit Engagement; Agreement on Audit Engagement Terms; Terms of Engagement in Recurring Audits (SA 210 Agreeing the Terms of Audit Engagements); Leadership Responsibilities for Quality on Audits; Concept of Auditor's Independence; Threats to Independence; Acceptance and Continuance of Client Relationships and Audit Engagements (SA 220 Quality Control for an Audit of Financial Statements).
2. Audit Strategy, Audit Planning and Audit Programme
Audit Strategy; Audit planning (SA 300); Plaining an Audit of Financial Statement; 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; Documenting the Materiality; Performance Materiality (SA 320 Materiality in Planning and Performing an Audit).
3. Audit Documentation and Audit Evidence
Concept of Audit Documentation; Nature & Purpose of Audit Documentation; Form, Content & Extent of Audit Documentation; Completion Memorandum; Ownership and custody of Audit Documentation (SA 230 Audit Documentation); Audit procedures for obtaining audit evidence; Sources of evidence; Relevance and Reliability of audit evidence; Sufficient appropriate audit evidence, Evaluation of Audit Evidence (SA 500 Audit Evidence); Written Representations as Audit Evidence; Objective of Auditor regarding Written Representation; Management from whom Written Representations may be requested; Written Representations about Management's Responsibilities (SA 580 Written Representations); Obtaining evidence of existence of inventory; Audit procedure to identify litigation & claims (SA 501 Audit Evidence - Specific Considerations for Selected Items); External confirmation procedures; Management's refusal to allow the auditor to send a confirmation request; Negative Confirmations (SA 505 External Confirmations); Audit evidence about opening balances; Accounting policies relating to opening balances; Reporting with regard to opening balances (SA 510 Initial Audit Engagements- Opening Balances); Meaning of Related Party; Nature of Related Party Relationships & Transactions; Understanding the Entity's Related Party Relationships & Transactions (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 Concern Assumption; Objectives of the Auditor regarding Going Concern; Events or Conditions that may cast doubt about Going Concern Assumption; Audit Procedures when events or conditions are identified (SA 570 Going Concern).
4. Risk Assessment and Internal Control: Audit Risk, Identifying and Assessing the Risk of Material Misstatement; Risk Assessment procedures; Understanding the entity and its environment; Internal control; Documenting the Risks; Evaluation of internal control system; Testing of Internal control; Internal Control and IT Environment (SA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment); Materiality and audit risk (SA 320 Materiality in Planning and Performing an Audit); Internal audit, Basics of Standards on Internal Audit (SIAs) issued by the ICAI; Basics of Internal Financial Control and reporting requirements; Distinction between Internal Financial Control and Internal Control over Financial Reporting.
5. Fraud and Responsibilities of the Auditor in this Regard: Responsibility for the Prevention and Detection of Fraud; Fraud Risk Factors; Risks of Material Misstatement Due to Fraud; Communication of Fraud (SA 240 The Auditor's responsibilities Relating to Fraud in an Audit of Financial Statements); Provisions of the Companies Act 2013 relating to fraud and rules thereunder including reporting requirements under CARO.
6. Audit in an Automated Environment: Key features, Impact of IT related Risks, Impact on Controls, Internal Financial Controls as per Regulatory requirements, Types of Controls, Audit approach, Understanding and documenting Automated environment, Testing methods, data analytics for audit, assessing and reporting audit findings.
7. Audit Sampling: Meaning of Audit Sampling; Designing an audit sample; Types of sampling; Sample Size and selection of items for testing; Sample selection method (SA 530 Audit Sampling).
8. Analytical Procedures: Meaning, nature, purpose and timing of analytical procedures; Substantive analytical procedures, Designing and performing analytical procedures prior to Audit; investigating the results of analytical procedures (SA 520 Analytical Procedures).
9. Audit of Items of Financial Statements: Audit of sale of Products and Services; Audit of Interest Income, Rental Income, Dividend Income, Net gain/loss on sale of Investments etc.
Audit of Purchases, Employee benefits expenses, Depreciation, Interest expense, Expenditure on Power & Fuel, Rent,
Repair to building, Repair to Machinery, Insurance, Taxes, Travelling Expenses, Miscellaneous Expenses etc.
Audit of Share Capital, Reserve & Surplus, Long Term Borrowings, Trade Payables, Provisions, Short Term Borrowings & Other Current Liabilities. Audit of Land, Buildings, Plant & Equipment, Furniture & Fixtures, Vehicles, Office Equipment, Goodwill, Brand/Trademarks, Computer Software etc. Audit of Loan & Advances, Trade Receivable, Inventories, Cash & Cash Equivalent, Other Current Assets. Audit of Contingent Liabilities.
10. The Company Audit: Eligibility, Qualifications and Disqualifications of Auditors; Appointment of auditors; Removal of auditors; Remuneration of Auditors; Powers and duties of auditors; Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013 including CARO; Other Important Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder.
11. Audit Report: Forming an opinion on the Financial Statements; Auditor's Report- basic elements (SA 700 Forming an Opinion and Reporting on Financial Statements); Types of Modified Opinion; Circumstances When a Modification to the Auditor's Opinion is Required Qualified, Adverse, Disclaimer of Opinion (SA 705 Modification to the Opinion in the Independent Auditor's Report); SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report; Nature of Comparative Information; Corresponding Figure; Comparative Financial Statements (SA 710 Comparative Information - Corresponding Figures and Comparative Financial Statements).
12. Audit of Banks: Understanding of accounting system in Banks, Audit Approach, Audit of Revenue items, Special Consideration in Bank Audit with emphasis on Advances and NPAs.
13. Audit of Different Types of Entities: Appointment of Auditor, Audit Procedure and Audit Report in respect of different Category of Entities Government; Local bodies and Not-for-profit organizations; Partnership Firms, Audit of different type of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals Basics of Limited Liability Partnerships (LLPs) audit and Co-operative Societies Audit.
NOTE 1. The specific inclusions/exclusions in any topic covered in the syllabus, will be effected every year by way of Study Guidelines.
2. The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
3. If new legislations/Standards on Auditing/Guidance Notes/Statements 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. The changes in this regard would also form part of Study Guidelines.
Section A: Enterprise Information Systems (50 Marks)
Contents-
1. Automated Business Processes
i. Introduction to Enterprise Business Processes, Benefits, Risks and Controls;
ii. Diagrammatic representation of business processes using Flowcharts;
iii. Risks and controls for specific business processes: Procure to pay (P2P), Order to cash, Inventory Cycle, Hire to Retire, Supply Chain Management, Fixed Assets etc.
iv. Applicable regulatory and compliance requirements including computer related offences, privacy, cybercrime, Sensitive Personal Data Information of Information Technology Act, 2000
2. Financial and Accounting Systems
i. Integrated (ERP) and non-integrated systems with related risks and controls;
ii. Business process modules and their integration with Financial and Accounting systems.
iii. Reporting Systems and MIS, Data Analytics and Business Intelligence
iv. Business Reporting and fundamentals of XBRL (eXtensible Business Reporting Language).
v. Applicable regulatory and compliance requirements
3. Information Systems and its Components
i. Components of Automated Information Systems: Application Systems, Database, Network and Operating System with related risks and controls.
ii. Mapping of Organization structure with Segregation of Duties in Information Systems.
4. E-commerce, M-commerce and Emerging Technologies
i. Components and Architecture of E-Commerce and M-Commerce with related risks and controls
ii. Business process flow with its related risks and controls
iii. Applicable regulatory and compliance requirements
iv. Emerging technologies with its related risks and controls
5. Core Banking Systems
i. Components and Architecture of CBS and related risks and controls
ii. Core modules of banking and Business process flow and its related risks and controls
iii. Reporting Systems and MIS, Data Analytics and Business Intelligence
iv. Applicable regulatory and compliance requirements.
Section B: Strategic Management (50 Marks)
Contents-
1. Introduction to Strategic Management
2. Dynamics of Competitive Strategy
3. Strategic Management Process
4. Corporate Level Strategies
5. Business Level Strategies
6. Functional Level Strategies
7. Organisation and Strategic Leadership
8. Strategy Implementation and Control
Section A - Financial Management (60 Marks)
Contents-
1. Financial Management and Financial Analysis
i. Introduction to Financial Management Function
a. Objective and scope of financial management
b. Role and purpose
c. Financial management environment
d. Functions of finance executives in an organization
e. Financial distress and insolvency.
ii. Financial Analysis through Ratios
a. Users of the financial analysis
b. Sources of financial data for analysis
c. Calculation and Interpretation of ratios:
d. Limitations of ratio analysis
2. Financing Decisions
i. Sources of Finance
a. Different Sources of Finance, Characteristics of different types of long-term debt and equity finance, Method of raising long term finance
b. Different Sources of short-term Finance
c. Internal fund as a source of finance
d. International sources of finance
e. Other sources of finance- Sale and lease back, Convertible debt, Venture capital, Grants etc.
ii. Lease Financing
a. Concept and Classification
b. Significance and Limitations of Lease Financing
c. Financial Evaluation of Leasing Decision
iii. Cost of Capital
a. Significance of cost of capital
b. Factors of cost of capital
c. Measurement of costs of individual components of capital
d. Weighted average cost of capital (WACC)
e. Marginal cost of capital
f. Effective Interest rate
iv. Capital Structure Decisions
a. Significance of capital structure
b. Determinants of capital structure
c. Capital structure planning and designing
d. Designing of optimum capital structure
e. Theories of Capital Structure and value of the firm- relevancy and Irrelevancy of capital structure.
f. EBIT- EPS Analysis, Breakeven- EBIT Analysis.
g. Under/ Over Capitalisation.
v. Leverages
a. Types of Leverages- Operating, Financial and Combined
b. Analysis of leverages
3. Capital Investment and Dividend Decisions
i. Capital Investment Decisions
a. Objective of capital investment decisions
b. Methods of Investment appraisal...
ii. Adjustment of Risk and Uncertainty in Capital Budgeting Decision
a. Probability Analysis
b. Certainty Equivalent Method
c. Risk Adjusted Discount Rate
d. Monte Carlo Simulation
e. Decision Tree Analysis
f. Scenario Analysis
g. Sensitivity Analysis
iii. Dividend Decisions
a. Basics of Dividends
b. Forms of dividend
c. Determinants of dividend
d. Relevancy and Irrelevancy of Dividend Policies- Traditional Approach, Walter's model, Gordon's model, Modigliani and Miller (MM) Hypothesis.
4. Management of Working Capital
i. Management of Working Capital
a. The management of working capital- Liquidity and Profitability
b. The Working capital financing decisions-Primary and Secondary Sources of Liquidity
c. The working Capital Cycle (operating Cycle), Effectiveness of Working Capital based on its operating and cash conversion cycles
d. Assessment of working capital requirement
e. Management of Accounts Receivables (Debtors)
f. Factoring and Forfeiting
g. Management of Accounts Payables (Creditors)
h. Management of Inventory
i. Management of Cash, Treasury management
j. Banking norms of working capital finance.
Section B: Economics for Finance (40 Marks)
Contents-
1. Determination of National Income
i. Macro-Economic Aggregates and Measurement of National Income
ii. The Keynesian Theory of Determination of National Income
2. Public Finance
i. Fiscal functions: An Overview
ii. Market Failure
iii. Government Interventions to Correct Market Failure
iv. Fiscal Policy
3. The Money Market
i. The Concept of Money Demand: Important Theories of Demand for Money
ii. The Concept of Money Supply
iii. Monetary Policy
4. International Trade
i. Theories of International Trade
ii. Trade Policy - The Instruments of Trade Policy
iii. Trade Negotiations
iv. Exchange Rates and its economic effects
v. International Capital Movements: Foreign Direct Investment.
Requirements for Passing Intermediate Examination:
A student may appear in both the groups simultaneously or in one group in one examination and in the remaining group at any subsequent examination. He is declared to have passed the Intermediate examination, if he passes both the groups.
i. A student shall ordinarily be declared to have passed in both the groups simultaneously, if he-
a. Secures at one sitting a minimum of 40% marks in each paper of each of the groups and minimum of 50% marks in the aggregate of all the papers of each of the groups; or
b. Secures at one sitting a minimum of 40% marks in each paper of both the groups and minimum of 50% marks in the aggregate of all the papers of both the groups taken together
ii. A student shall be declared to have passed in a group if he secures at one sitting a minimum of 40% marks in each paper of group and minimum of 50% marks in the aggregate of all the papers of that group.
Exemption:
A student who appeared in all the papers comprised in a Group/unit and fails in one or more papers comprised in that Group/Unit but secures a minimum of 60% of the marks in any paper(s) of that Group/Unit shall be eligible for exemption in that paper(s) in the next three following examinations.
He shall be declared to have passed in that Group/Unit if he secures at one sitting a minimum of 40% marks in each of the papers of that Group/Unit and a minimum of 50% of the total marks of all the papers of that Group/Unit including the paper(s) in which he had secured a minimum of 60% marks in the earlier examination. He shall not be eligible for any further exemptions in the remaining paper(s) of that Group/Unit until he has exhausted the exemptions already granted to him in that Group/Unit.
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