ICWA Intermediate -syllabus

ICWAI • CWA ICWA (2008) • Inter : Intermediate • Syllabus and Books

Group I - Financial Accounting

ICWA :: Intermediate
Paper 5 : Financial Accounting
[One Paper: 3 hours:100 marks]

Objective . . .

•	To have working knowledge of accounting concepts, detailed procedures and documentation involved in financial accounting system
•	To gain working knowledge of the principles and procedures of accounting and their application to different practical situations

1.	Accounting Conventions and Practices	10%
	• Concept • Depreciation and various methods thereof • Stock valuation • Distinction between Capital and Revenue
2.	Royalty and Hire Purchase	10%
	• Royalty accounting • Need for hire purchase and installment systems and parties involved. • Accounting from the point of view various parties. • Possession and repossession in case of default in payments.
3.	Receipts & Payments/ Income & Expenditure Accounts	10%
	• Receipts & Payments • Income & Expenditure Account
4.	Partnership Accounting	10%
	• Past adjustments and guarantee • Admission & Retirement • Assignment of life policy • Amalgamation and Sale of Business • Dissolution, Insolvency • Piecemeal Distribution
5.	Branch and Departmental Accounts	10%
	• Branch accounts- Debtors system, Stock & Debtors system, Foreign Branch. • Treatment of shortages. • Calculation of net profit of various departments and allocation of expenses on the basis of suitable base. • Preparation of common balance sheet. • Treatment of Unrealized profit.
6.	Accounting Standards	10%
	• Applicability of a particular accounting standard. • Interpretation of various accounting standards. • Scope of accounting standards. • Compliance with the Accounting Standards.
7.	Joint Stock Companies	20%
	• Issues of shares at par, discount & premium, forfeiture, reissue of shares • Bonus issue and right issue • Buy back of shares • Redemption of Preference of shares • Profit prior to incorporation • Issue and redemption of debentures
8.	Preparation of Company Accounts
	• Preparation of Final Accounts under Company Law
9.	Accounting services in organizations	10%
	• Construction companies ,Project Accounting • Service sector such as Software, ITES, Telecommunication, Entertainment, Hospital, educational institutions • Banking , Electricity and Insurance companies
10.	Accounting and Interpretation of Financial Statements.	10%

Recommended Books

Title	Author	Publisher
Advanced Accountancy	Hrishikesh Chakraborty	Oxford University Press
Modern Accountancy	Mukherjee & Haniff	Tata McGraw Hills
Advanced Accounting	Gupta & Radhaswamy	Sultan Chand
Advanced Accounts	Shukla & Grewal & Gupta	Sultan Chand
Accounting standards & Corporate Accounting Practice	T.P.Ghosh	Taxmann
Guide to Accounting Standard	Sanjiv Agarwal	Snow White
Advanced Practical Accounts	Subrata Mukherjee & Anjan Bhattacharyya	Sultan Chand
Indian Accounting Standards	R.L.Gupta & M.Radhaswamy	Sultan Chand
Financial Accounting – A Managerial perspective	Dr. D.Mukhopadhyay	Asian Books
Advanced Accountancy	M.E. Thukaram Rao	New Age International

Group I - Commercial and Industrial Laws and Auditing

ICWA :: Intermediate
Paper 6 : Commercial & Industrial Laws and Auditing
[One Paper: 3 hours:100 marks]

Objective . . .

•	To gain knowledge of some of important commercial and industrial laws related to business.
•	To gain working knowledge of the principles and practice of auditing and their various applications.

A. Commercial & Industrial Law ( 50 Marks)

1.	Laws of Contracts	15%
	• Essential elements of a valid simple contract. • Legal status of the various types of statements which may be made by negotiating parties. Enforceable offers and acceptances, and the application of the rules to standard form contracts and modern forms of communication. • Meaning and importance of consideration. • Principles for establishing that the parties intend their agreement to have contractual force. • How a contract is affected by a misrepresentation. • Conditions and warranties • Manner in which law controls use of exclusion clauses and unfair terms in consumer and non-consumer transactions • Level of performance sufficient to discharge contractual obligations • Valid reasons for non-performance by way of agreement, breach by the other party and frustration
2.	Laws relating to Sale of Goods	10%
	• Formation of Contract of sale • Conditions and warranties • Transfer of ownership and delivery of goods • Unpaid seller and his rights
3.	Industrial Laws	20%
	• Factories Act • Industrial Dispute Act • Workman Compensation Act • Payment of Wages Act, Minimum Wages Act • Provident Funds Act • Payment of Bonus Act • Payment of Gratuity Act • Consumer Protection Act etc
4.	Other Laws	5%
	• Limited Liability Partnership • RTI Act • Competition Commission Act • Negotiable Instruments Act. • Dissolution, Insolvency • Piecemeal Distribution

B. Auditing ( 50 Marks)

1.	Auditing Basics	10%
	• Major influences of auditing; nature and scope of auditing; basic concepts of auditing; role of evidence in auditing; auditing techniques and practices – generally accepted auditing standards; the concept of materiality in auditing. • Fixed assets, investments, inventories, debtors, loans and advances, cash and bank balances, debentures and creditors, provisions for taxation, proposed dividend and gratuity – other items in the balance sheet; verification of items in the profit and loss account; contingent liabilities; disclosure of accounting policies, practice; expenditure during the period of construction; adjustments for previous year – provisions of the Companies Act, 1956 regarding accounts. Restructure • Statistical sampling in auditing. Use of ratios and percentages for comparison and analysis trends - inter-firm and intra-firm comparison.
2.	Companies Act Provisions relating to Audits	10%
	• Auditors' appointment, remuneration, removal, rights of statutory auditors, duties of statutory auditors, joint auditors, branch audits. • report versus certificate, contents of the reports, qualifications in the report. • relevant provisions of the Companies Act, 1956 and the Income-tax Act, 1961. • Interface between statutory auditor and internal auditor. • Corporate Governance
3.	Review and Audit of Internal Control Systems	15%
	• Nature and scope of internal auditing, financial versus operational audit; concepts of efficiency audit, propriety audit, voucher audit, compliance audit, pre and post audits. • CARO • Audit Report • Internal auditing function • Planning and process of internal audit • Verification of evidence, detailed checking versus sampling plans, statistical sampling as used in internal auditing; flow chart techniques. • Internal control, nature and scope, internal auditor and internal controls. • Field work, collecting evidences, interviews; memoranda. • Audit notes and working papers. • Audit reports - techniques of effective reporting; follow up of audit report. • Summary reports of top management. • Communications in internal auditing - improving auditor-auditee relationship. • Scope of Audit Committee • Internal audit and investigation of fraud
4.	Information System Audit.	10%
5.	Introduction to Management Audit.	5%

Recommended Books

Title	Author	Publisher
Commercial & Industrial Law	Sen & Mitra	World Press
Mercantile Law Including Industrial Law	N.D.Kapoor	Sultan Chand
Business Laws	Gulsan & Kapoor	Wiley Eastern
Busines Laws	Dr. G.K.Kapoor	Sultan Chand
Business Law includig Company Law	G.K.Kapoor	New Age International
Contemporary	Kamal Gupta	Tata-McGraw Hill
Spicer & peglar’s Practical Auditing	S.V.Ghatalia	Allied Pubulishers
A Handbook of Practical Auditing	B.N.Tandon	Sultan Chand
Internal Auditing	R.S.Waldron
Auditing Standards and Guidelines	ICAI
Guidance Note on Secretarial Audit	ICSI
Basics of Auditing, for ICWA Inter	Dinkar Pagare	Sultan Chand

Group I - Applied Direct Taxation

ICWA :: Intermediate
Paper 7 : Applied Direct Taxation
[One Paper: 3 hours:100 marks]

Objective . . .

•	To understand the provisions of direct tax laws
•	To gain knowledge on procedural aspects for filing tax returns for various assesses and other statutory compliances
•	To get knowledge of various tax incentives and benefits under direct taxes
•	To know applications of tax provisions in various cases

1.	Direct Taxes- Comprehensive Study.	50%
	• Overview of Direct Tax Laws • Direct versus indirect taxes, taxable person • Basic Concepts. • A comprehensive study of the Income-tax Act, 1961; case laws governing capital and revenue expenditure, deemed income, residence concept. • Special problems centering on the concept of assessees, registered firm, Hindu Undivided Family, Companies, Association of persons and trust, minors, cooperatives, non-resident Indians and avoidance of double taxation. • Salaries, perquisites, gratuity and retirement benefits, income from house property, capital gains, income from other sources, income from business and profession, problems arising from aggregation of income and set off and carry forward of losses, • Computation of income and Return of Income Tax, Filing procedure, Principles of valuation of movable and immovable property. Advance payment of Tax. • Deduction and collection of tax at source. • Tax incentives and export promotion schemes, other benefits and tax exemptions. • Assessment, appeals, revisions, review, rectification and application to Central Board of Direct Taxes. • Penalties ,Fines and prosecution. • Refunds. • Securities Transaction Tax. • Fringe Benefit Tax. • Banking Cash Transaction Tax. • Wealth Tax.
2.	Practical problems and case studies under Direct Taxes.	50%

Recommended Books

Title	Author	Publisher
Commercial & Industrial Law	Sen & Mitra	World Press
Mercantile Law Including Industrial Law	N.D.Kapoor	Sultan Chand
Business Laws	Gulsan & Kapoor	Wiley Eastern
Busines Laws	Dr. G.K.Kapoor	Sultan Chand
Business Law includig Company Law	G.K.Kapoor	New Age International
Contemporary	Kamal Gupta	Tata-McGraw Hill
Spicer & peglar’s Practical Auditing	S.V.Ghatalia	Allied Pubulishers
A Handbook of Practical Auditing	B.N.Tandon	Sultan Chand
Internal Auditing	R.S.Waldron
Auditing Standards and Guidelines	ICAI
Guidance Note on Secretarial Audit	ICSI
Basics of Auditing, for ICWA Inter	Dinkar Pagare	Sultan Chand