CA inter syllabus

Module C
PAPER C 6: Financial Accounting (100 marks)

This course is designed to provide understanding of accounting methods and procedures as followed
by business organizations. It systematically covers the accounting process of classification,
summarization, presentation in the light of established accounting practices and application of
principles set out by International Accounting and Reporting Standards in the preparation of financial
The course is built on the basic accounting techniques covered in Paper B 4 and is designed to develop
and broaden the knowledge and understanding of more financial accounting concepts.

1. Accounts of limited companies
a) Accounting and preparation of Financial Statements of limited companies in line with the
requirement of the Companies Ordinance, 1984 and International Financial Reporting
Standards (referred to at the end of syllabus); (excluding liquidation. reconstruction, merger
and consolidation);
b) Significant accounting ratios and their relationship.
2. Specialised accounting treatments
a) Accounting for Income Taxes
i Current year tax;
ii Prior years tax;
iii Deferred tax.
Note: The weightages given above are for guidance purposes only and some deviations in setting
of papers could be expected.
Intermediate Examinations
The Institute of Chartered Accountants of Pakistan
Financial Accounting
b) Accounting treatment of tangible and intangible assets including their recognition,
derecognition, depreciation / amortization and subsequent remeasurement (revaluation,
impairment, fair value etc);
c) Accounting treatment of contingent losses and contingent gains;
d) Related party disclosures;
e) Revenue Recognition
3. Other accounting and reporting issues
a) Conversion of partnerships to a limited company and merger of firms;
b) Accounting treatment of profit and loss for the period including:
i Changes in accounting policies;
ii Changes in accounting estimates and errors;
iii Events occurring after the balance sheet date;
c) Recognition of borrowing costs.
d) Accounting for leases
The IFRS included in Syllabus are:
IAS Ð 1 IAS Ð 2 IAS Ð 7 IAS Ð 8 IAS Ð 10
IAS Ð 12 IAS Ð 16 IAS Ð 17 IAS Ð 18 IAS Ð 23
IAS Ð 24 IAS Ð 36 IAS Ð 37 IAS Ð 38
1. All items included in the syllabus of Introduction to Financial Accounting paper of Module B
may again be tested in the above paper.
2. To encourage proper understanding and application of knowledge no questions requiring
word by word reproduction of contents of IASs \ IFRS will be asked.
3. Reference to local and international pronouncements shall be deemed to have been changed
whenever the same is replaced by a reporting standard.

PAPER C 7: Taxation (100 marks)

The aim of this paper is to develop basic knowledge and understanding in the core areas of Income
Tax and its chargeability as envisaged in the Income Tax Ordinance 2001 and the Income Tax Rules
2002 (relevant to the syllabus), Sales Tax Act 1990 and the Sales Tax Rules (relevant to the syllabus).
a. Finance Act / Ordinance, Notifications and circulars issued within a period of less than 4
months from the date of examination shall not be tested
b. Chapters, Parts and Divisions not mentioned here specifically are excluded from the syllabus.
However, it is clarified to eliminate any ambiguity that if only a chapter is mentioned it includes
all parts and if only a part is mentioned it includes all divisions.
c. The weightages given above are for guidance purposes only and some deviations in setting of
papers could be expected.
d. Students are not expected to remember the tax rates. Same if applicable shall be given in the
question paper.

1. Income Tax Ordinance 2001
2. Sales Tax Act 1990
a Basic concepts of taxation
i. Chapter I
ii. Chapter II
iii. Chapter IV
Preliminary (concepts of terms defined)
Charge of tax (excluding section 7)
Common rules (Part I & II)
b. Heads of income, Computation of income, Determination of tax liability
i. Chapter III
ii. Chapter IX
iii. Chapter X Part V
iv. Chapter XII
Tax on taxable income (excluding Sec
29A, 30 & 31)
Minimum tax
Advance tax and deduction of tax at source
Transitional Advance Tax provisions
c. Types of persons and their taxation
i. Chapter V Part I
ii. Chapter V Part II - Div I
iii. Chapter V Part III
iv. Chapter VII Part II
Central concepts
Association of persons
Taxation of foreign-source income of
d. Procedures and Administration
e. Income Tax Rules 2002
i. Chapter X Part I
ii. Chapter X Part II
iii. Chapter X Part III
iv. Chapter X Part IV
v. Chapter X Part VIII
vi. Chapter XI Part I
Appeals including Alternative Dispute Resolution
Collection and recovery of tax (Sections 137 to 140)
Audit (Section 177)
Administration Ð General (excluding section 224 to 227)
i. Chapter I Preliminary (concepts of terms defined)
ii. Chapter II Scope and payment of tax
iii. Chapter III Registration
iv. Chapter IV Book keeping and invoicing requirements
v. Chapter V Returns
w Chapter I Registration, Voluntary registration and De-registration
w Chapter II Filing of returns
w Chapter III Credit and Debit Note and Destruction of Goods
w Chapter IV Apportionment of Input Tax
vi. The following rules (excluding annexure and forms) of the Sales Tax Rules Ð 2006 related to
the relevant chapters of the Sales Tax Act may be examined. Rules other than the following
shall not be examined at this stage:
The rules related to the above chapters of the Income Tax Ordinance 2001 shall also be examined

PAPER C 8: Business Communication & Behavioural Studies (100 marks)

The course aims to introduce students to the key concepts of business communication and their
application. The course also intends to incorporate an understanding of the concepts of organizational
behaviour to develop problem solving skills, negotiation skills and leadership qualities in the students.

1. Principles of Effective Business Communication
a. Introduction
i Concepts and benefits of effective communication
ii. Components of communication including effective listening
iii. Problems of communication
b. Basic Principles of Business Communication
Seven C»s of effective communication
c. Interpersonal Communication (IPC)
i. Universals of IPC
ii. Axioms of IPC
iii. Types of IPC
Business Communication & Behavioural Studies
Note: The weightages given above are for guidance purposes only and some deviations in setting
of papers could be expected.
d. Motivation
i. Types of Motivation
ii. Theories of Motivation
iii. Applications Ð Job Design
iv. Goal setting and Management by Objectives (MBO)
v. Management by Exception (MBE)
e. Leadership
i. Type of Leadership
ii. Theories of Leadership
iii. Applications Ð Roles, Activities, Skills of Leaders
iv. Group Dynamics and teamwork (types of groups, group formation, group structure, individual
in groups, team work)
f. Conflict and Negotiation
i. Levels of Conflict
ii. Conflict Resolution
iii. Negotiation & Stages of Negotiation
iv. Peculiar Negotiation Situations

Module D

PAPER D 9: COMPANY LAW (100 marks)

This course aims to provide candidates with knowledge of the Companies Ordinance, 1984 and to
develop amongst them an understanding of their application to corporate and other business
environment, excluding advanced topics such as provisions relating to arbitration, arrangements and
reconstruction, prevention of oppression and mismanagement, winding up etc. that are covered at the
Final Examination stage.

2. The Securities and Exchange Commission of Pakistan Act, 1997
3. The Companies Ordinance, 1984 Ð Sections 52 to 136
a. Part V; Prospectus, allotment, issue and transfer of shares and debentures, deposits,
b. Part VI; Share capital and debentures.
c. Part VII; Registration of mortgages, charges etc.
4. The Companies Ordinance, 1984 Ð Sections 142 to 262
a. Part VIII Management and Administration (excluding investigation & related matters)
b. Third Schedule to the Companies Ordinance, 1984

PAPER D 10: Cost Accounting (100 marks)

The course is designed to equip candidates with fundamentals of accounting for material, labour and
manufacturing expenses; an understanding of the importance of the role of cost accounting in planning
and controlling the wide range of organizational and manufacturing cost. The students are expected to
acquaint themselves with a comprehensive knowledge of established practices of cost accumulation
methods and learn the application of this knowledge to basic planning, control and decision making.
The course also covers job order, process costing and standard costing systems.

1. Cost Concepts, Uses and Classification
a. The nature and scope of Cost Accounting; Sources of Cost data
b. Definition of and distinction between financial accounting, cost accounting and management
c. The concept of ÒCostÓ for different types of entities
d. Cost classification
2. Elements of Cost Accounting
3. Costing Systems
a. Material
i. Material purchasing, receiving and issuing procedures and its documentation
ii. Inventory recording system (Perpetual and Periodic)
iii. Basis of valuation Ð Cost formulas
iv. Stock taking, Reconciliation of Bin Card and Stock Card, and adjustments for inventory
v. Valuation of inventory at lower of Cost and NRV
vi. Economic Order Quantity and Inventory Levels
vii. Segregation of material for selective control (ABC Plan)
b. Labour
i. System and documentation
ii. Basis for Labour Cost Control
iii. Labour turnover, Productivity and Efficiency measurement
iv. Accounting entries for payroll and statutory deductions
v. Wage incentive plans (piece work plan, bonus and group bonus plans)
c. Overheads
i. Manufacturing expenses Ð actual and applied
ii. Over or under applied overhead
iii. Concept of production & Service Departments
iv. Basis of apportionment and allocation of service department overheads to production
a. Fundamentals of Cost Accounting Information System
b. Manufacturing Cost Accounting Cycle
c. Chart of accounts
d. Factory Ledger and accounting entries
e. Reconciliation of Cost and Financial accounts
f. Job order Costing
g. Process costing
h. Treatment of Joint Products and By-Products
4. Cost Behaviour
a. Analysis of fixed, variable and semi variable expenses
b. Direct cost and Indirect cost
c. Cost estimation using high-low points method and linear regression analysis
d. Marginal costing and Absorption costing
e. Product cost and Period cost
f. Breakeven analysis and charts

PAPER D 11: Auditing (100 marks)

The purpose of the syllabus is to give students theoretical and to a limited extent, technical knowledge
and skills of auditing and review of historical financial information. It will provide a foundation for
acquiring intensive knowledge required for professional competence.
The syllabus will ensure that candidates are able to understand the nature of auditing and review
services and are familiar with the intellectual and procedural bases for performing them.

1. General concepts and principles of audit
i. Objective and general principal governing an audit
ii. Responsibility for the financial statements
iii. Auditor»s responsibility to consider fraud and errors
iv. Introduction to International Federation of Accountants
v. Introduction to international auditing and assurance standard setting body
vi. Legal consideration relating to appointment and removal of auditor
vii. Acceptance and continuance of audit client including requirement of Code of Ethics issued
viii. Audit engagements
3. Audit conclusions and reporting
i. Nature of different audit opinions (Students will only be expected to understand the form and
implications of audit qualifications)
ii. Form of audit reports under the Companies Ordinance, 1984
4. Audit conclusions and reporting
i. External confirmation
ii. Subsequent events
iii. Management representation
iv. Consideration of related parties
vi. Using the work of another auditor, internal auditor and expert
vii. Review of interim financial statements by the independent auditor
Candidates are expected to respond examination questions with reference to international and local
pronouncements issued by any relevant standard setting body. The standards
related to syllabus outline are prescribed as under:
Institute of Chartered Accountants of Pakistan has a practice to publish periodically the bound volumes
of updated auditing pronouncements. All pronouncements related to the areas covered in the syllabus
and published in such bound volumes are deemed applicable for examination purposes (irrespective
of their applicability date in practice) unless ICAP specifically notifies that the same will not be adopted.
However, pronouncements and revisions published by ICAP within less than six months from the date
of examination shall not be tested.
ISA-200 ISA-210 ISA-220 ISA-230 ISA-240 ISA-300
ISA-315 ISA-320 ISA-500 ISA-505 ISA-520 ISA-530
ISA-550 ISA-560 ISA-580 ISA-600 ISA-610 ISA-620
ISA-700 ISA-701 ISRE-2410
Note: Reference to ISAs shall be deemed to have been changed whenever the same is replaced by
another standard.
2. Performance of audit
i. Planning an audit
ii. Assessment of audit risk
iii. Audit materiality
iv. Audit evidence
v. Audit sampling
vi. Substantive procedures
vii. Test of controls
viii. Analytical procedures
ix. Documentation
5. Planning and Control
a. Principles of Budgeting
b. Cash Budgets
c. Revenue Budgets
d. Flexible Budgets
e. Projected Income statement and Balance Sheet
f. Standard Costing concepts
6. Decision Making
a. Opportunity Cost
b. Relevant Cost
c. Make or buy decisions
d. Pricing for special orders
e. Further processing decisions
f. Utilization of spare capacity
g. Decision with limiting factors (excluding linear programming)

The Institute of Chartered Accountants of Pakistan

PAPER D 12: Information Technology (100 marks)

The objective of this syllabus is to provide the students with adequate knowledge of the following areas
and their applications with particular reference to business and finance:

1. Computer Hardware and Related Matters:
1.1 Parts and accessories of computer
i. Recent developments in computer hardware
1.2 Networking
i. Networking components
ii. Network configuration and design
iii. Types of networks
iv. Use of communication devices
vi. Transmission medium
vii. Network administration and controls
a. Computer hardware and software.
b. Important elements and concepts of information systems.
c. Basic principles of computer programming
d. Computer software application.
e. IT Security and controls .
f. Practical experience on performing various general procedures and use of standard packages
Information Technology
Note: The weightages given above are for guidance purposes only and some deviations in setting
of papers could be expected.
Intermediate Examinations
The Institute of Chartered Accountants of Pakistan
Information Technology
2. Information Systems:
a. Fundamentals of Information Systems
i. General system concepts
ii. System architectures
3. Computer Programming and Software Applications:
a. Introduction to Computer Programming
Basic principles and concepts of program writing
b. Flow Charts
i. Benefits and limitation of flowcharts
ii. Types of flowcharts
c. Commonly used ERPs
d. Knowledge Based Systems
i. Decision Support System (DSS)
ii. Executive Information System (EIS)
iii. Expert System (ES)
e. Transaction processing in business and accounting applications
i. General application processing
ii. Data entry/ capturing / editing
iii. Master file update
iv. Reporting and queries
v. Processing modes
vi. Batch processing
vii. On-line processing
viii. Real time processing
ix. Distributed processing
x. Multi tasking
xi. Multi processing
b. Organizational Information Systems
i. Information flow in an organization
ii. Management Information System
iii. Transaction Processing Systems
iv. Financial reporting systems
v. Order processing and inventory control systems
vii. Personnel systems
viii. Sales and marketing systems
ix. Integrated systems
c. Decision Tables
i. Benefits and limitation of decision tables
ii. Types of decision tables
d. Computer Aided Software Engineering (CASE)
Types of CASE tools, their applications and advantages
e. Operating System
Introduction to commonly used operating systems including DOS,
Windows, Novell NetWare, Unix and Linux
f. Utility Software
Compression utilities, disk maintenance utilities, antivirus programs and audio and video
software etc., their features, benefits and limitations
g. Communication Software
Features, benefits and limitations of Internet browsers, email software, chatting programs,
telephony via Internet and video conferencing etc.
h. E-Commerce
Basic concepts covering:
i. Current trends in e-commerce
ii. E - commerce Tools and technologies
iii. Electronic data capture
iv. Publishing systems
v. Communication systems
vi. E-commerce services for example electronic trading, online banking and online information
services etc.
vii. Electronic Payment Systems
viii. Payment options
ix. Security technologies
i. Web Hosting and Surfing
i. Website hosting
ii. Downloading software from web
iii. Use of search engines
4. Introduction to System Development and Control Activities
a. Systems Development Life Cycle (SDLC)
i. Feasibility study based on investigation and analysis of existing systems
ii. Structured systems analysis, planning, designing and implementation
iii. Evaluation and control of Information Systems and needs
iv. Documentation
v. Post implementation review
b. Data organization and access Methods
i. Data structures and file organizations
ii. Access methods and file maintenance
iii. Types of data files
c. Database Management System (DBMS)
Introduction to commonly used DBMS like Oracle and SQL Server etc. (their characteristics,
advantages and limitations)
d. Control Activities
Introduction to:
i. Control design
ii. General controls
iii. Preventive, detective and corrective controls
iv. Audit trails
e. Control over Data Integrity, Privacy, and Security
i. Logical access controls
ii. Physical access controls
iii. Program security techniques
iv. Data security and public networks
v. Monitoring and surveillance techniques
f. Disaster Recovery Planning
i. Threat and risk management
ii. Software and data backup techniques
iii. Alternative processing facility arrangements
iv. Disaster recovery procedural plan
Microsoft Windows and Internet
a. Windows Accessories
i. System Tools
ii. Communication & Entertainment
iii. Accessibility
b. Windows Keyboard Shortcuts
c. Basic Networking Tasks
i. Sharing drives, folders and devices
ii. Protecting files and folders on a network
d. Core Windows Tasks
i. Customizing Desktop and Start Menu
ii. Working with files and folders
iii. Managing Windows
iv. Logging on and off
v. Searching for information
e. Protecting your computer
i. Locking the computer
ii. Screen Saver password
iii Password reset disk
f. Windows Firewall
g. Internet
i. Internet browsing
ii. Making a dial-up connection
iii. Internet explorer
iv. Commonly used Internet search engines and web based email services
v. Voice and video chatting
5. Computer Practical Examination
ICAP will conduct a practical examination of 2 hours duration to test hands on experience covering 40%
credit of the course. Theory paper of Information Technology will cover 60%. The result shall be based
on the combined marks obtained at practical and theory examinations. The computer practical
examination will be held soon after the Intermediate examination.
Intermediate Examinations
The Institute of Chartered Accountants of Pakistan
Computer Practical Examination
Microsoft Word
a. Formatting Contents
i. Creating custom styles for text, tables, and lists
ii. Inserting and modifying objects
iii. Creating and modifying diagrams and charts using data from other sources
b. Organizing Contents
i. Sorting contents in lists and tables
ii. Performing calculations in tables
iii. Modifying table formats
iv. Preparing letters, labels and envelopes using mail merge tools
c. Formatting Documents
i. Creating and modifying document background
ii. Creating and modifying document index and table of contents
iii. Inserting and modifying endnotes, footnotes, captions, and cross-references
Microsoft Excel
a. Organizing and Analyzing Data
i. Construction and application of customised formulas
ii. Application of advanced filters
iii. Performing data analysis using automated tools
iv. Creating PivotTable and PivotChart reports
v. Application of built in functions and formulas
vi. Use of Tools menu commands like Goal Seek and Formula Auditing etc
vii. Defining, modifying, and using named ranges
b. Formatting Data and Contents
i. Creating and modifying customised data formats
ii. Using conditional formatting
iii. Formatting charts and diagrams
c. Sharing and Security
i. Protecting cells, worksheets, and workbooks
ii. Sharing workbooks
iii. Merging workbooks
iv. Tracking, accepting, and rejecting changes to workbooks
d. Managing Data and Workbooks
i. Importing and exporting data to and from Excel
ii. Creating and editing templates
e. Customizing Excel
i. Customizing toolbars and menus
ii. Creating, editing, and running macros
Intermediate Examinations
The Institute of Chartered Accountants of Pakistan
Computer Practical Examination
d. Managing Word Documents
i. Application of Track Changes tool
ii. Publishing and editing Web documents
iii. Managing document versions
iv. Protecting and restricting documents
v. Ways of viewing a Word document
e. Customizing Microsoft Word
i. Creating, editing, and running macros
ii. Customizing menus and toolbar
Microsoft PowerPoint
a. Creating Contents
i. Creating new presentations from templates
ii. Inserting and editing text-based contents
iii. Inserting and editing tables, charts, diagrams, pictures, shapes, graphics and objects
b. Formatting Contents
i. Formatting text-based contents
ii. Formatting pictures, shapes, and graphics
iii. Formatting slides
iv. Applying animation schemes
v. Applying slide transitions
vi. Customizing slide templates
vii. Working with slide master
c. Managing and Delivering Presentations
i. Tracking, accepting, and rejecting changes in a presentation
ii. Adding, editing, and deleting comments in a presentation
iii. Comparing and merging presentations
iv. Setting up slide shows for delivery
v. Rehearse timing
vi. Printing slides, outlines, handouts, and speaker notes
vii. Exporting a presentation to another Microsoft Office program
Microsoft Access
a. Structuring Databases
i. Creating and modifying tables
ii. Defining and modifying field types
iii. Creating and modifying one-to-many relationships
iv. Creating and modifying queries, forms and reports
b. Managing Databases
i. Entering, editing, and deleting records
ii. Importing and exporting data to and from Access
iii. Compacting and repairing databases
iv. Creating and modifying calculated fields and aggregate functions
v. Sorting records
vi. Filtering records
Microsoft Project
a. Task Management
i. Defining the project
ii. Defining general working times
iii. Listing the tasks in the project
iv. Organizing tasks into phases
v. Scheduling tasks
vi. Linking to or attaching more task information
vii. Adding columns of customised information
viii. Setting deadlines and constraints
b. Resource Management
i. Specifying resources (people and equipment) for the project
ii. Defining working time and availability of resources
iii. Assigning resources to tasks
iv. Linking to or attaching more resource information
v. Adding columns of customised information
c. Project Tracking
i. Saving a baseline to compare with later versions
ii. Incorporating progress information into the project
iii. Checking the progress of the project
iv. Tracking risks and issues associated with a project
d. View and Report Project Status
i. Selecting and modifying views and reports
ii. Viewing critical tasks, allocation of resources and project costs
iii. Sharing project information with other applications
iv. Changing the look or contents of the Gantt chart
Microsoft Outlook / Outlook Express
a. Messaging
i. Originating and responding to e-mails and instant messages
ii. Attaching files to messages
iii. Creating and modifying a personal signature for messages
iv. Modifying e-mail message settings and delivery options
v. Creating and editing contacts
b. Scheduling
i. Creating and modifying appointments, meetings, and events
ii. Customizing calendar settings
iii. Creating, modifying, and assigning tasks
c Organizing
i. Creating and modifying distribution lists
ii. Linking contacts to other items
iii. Creating and modifying notes