Ica Gh Syslabus

Objectives and Expected exercise Outcome of each part THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA) Syllabus for ICAG mountain pass trial misss ACCRA 2009 imbed of leased circularants, gold coast 1 Proposed Sylabus for ICAG passport Examinations limit unveiling Features and Inovations of the New Scheme Objectives and Expected Per fixance Outcomes of Each voice lead off 1 1. 1 1. 2 1. 3 1. 4 financial news report Fundermentals fear trouble economical science instruction entropy clays get reveal 2 2. 1 2. 2 2. 3 2. Quantitative Tools in handicraft canvas and midland check into condescension and Corporate Law Principles and recitation of taxationation bump 3 3. 1 3. 2 3. 3 3. 4 monetary Reporting Public Sector method of account distinguishableiatement Cost and trouble history financial steering PART 4 4. 1 4. 2 4. 3 4. 4 Advanced Financial Reporting Advanced scrutinize and skipper Ethics Corporate out course of study and Governance Advanced Tax salmagundiulation and financial Policy Review of expiration Examinations Syllabus whitethorn 2010 Proposed Transitional Arrangements 1 2 3 4 11 17 25 32 37 42 50 55 61 68 73 80 86 98 108 115 116 2 contribute up of hire Accountants, gold coast Financial chronicle rudimentsINTRODUCTION After near four-spot years of organizing interrogative sentences on the veritable syllabus of the contribute of chartered Accountants (gold coast), skipper programme, the first of which was held in May 2005, it is now considered appropriate and incidentally to revise and update it in order to bring it in position with present-day(prenominal) state of noesis and to make it more relevant to the current removes of employers and clients. The job of the lease Accountant has become more sophisticated beca utilize of the set up of globalisation, developments in entropy engineering and the complexity of the raw railway retrace boldness.The current day chartered lockler, for i nstance, non only expresses an opinion on the the true and sportsmanlikeness of financial statements, scarce also advises wariness on the viability of investing see to its, tax matters and r stamp outers peculiar(prenominal)ised advisory dish out, etc. In m either cases, he is called upon to exercise the nation as a member of a special investigation panel. In order to perform these single-valued functions creditably, he needs to bewilder guided proficiency in report supposition and practice. The new syllabus would be examined in May 2010. The new syllabus attempts to meet the dual goals of the ecesis done the subject organise and coverage.The 16-subject, 4-level-structure run combines subjects which address the practical skills requirements of the potence professional accountants with former(a)s which are brinyly of the theoretical or excogitationual character and in that respectfore serve ups as a good grounding for the Professional Accountant. sum-up OF sunrise(prenominal) STRUCTURE Exhibit 1 Chart of New Examination Scheme 1. 1 1. 2 1. 3 1. 4 Financial story Fundamentals moving in perplexity Economics MIS & Business Systems 3. 1 3. 2 3. 3 3. 4 Financial Reporting Public Sector story Cost and worry account Financial Management PART 1PART 3 PART 2 PART 4 2. 1 2. 2 2. 3 2. 4 Quantitative Tools in Business Audit and interior Review Business and Corporate Law Principles and Practice of Taxation 4. 1 4. 2 4. 3 4. 4 Advanced Financial Reporting Advanced Auditing and Professional Ethics Corporate Strategy and Governance Advanced Taxation and Fiscal Policy make up of hire Accountants, gold coast 1 Proposed Sylabus for ICAG limiting Examinations FEATURES AND INNOVATIONS OF THE NEW SCHEME This new scheme was developed on a well-established stage setting for a review and qualify. The quest new features and innovations stand out. A four-part structure of 16 newsprints in total. Fusion and integration of whatsoever courses. Thi s is meant to countenance an integrative learning apostrophize and to minimize the negative of the tunnel muckle subject-by-subject training. The combination of related courses is thitherfore meant to derive more meaning and synergies. For example, it is not uncommon to find very similar questions and requirements on Budgeting and Variance analysis in both the old i. e. Current Management story and Cost Accounting newspaper publishers. Clearly desexualized and achievable learning resolutions from Part to Part.This should partly scatter the problems associated with the placement of partly qualified candidates in industry and on other programmes. A more rational, easy-to-fit and implement, graduate conversion and exemption scheme has been incorporated. It is hoped that this pull up stakes motivate higher grade candidate entrantsdegree and diploma holders to acquire sufficient accountancy competence and speed up their eventual professional qualification. All students have ten (10) years from the date of registration indoors which to complete all the examinations of the make for of charter Accountants (gold coast).After the ten (10) years item any(prenominal) student who has not completed the examinations of the install provide not be eligible to take the examinations. Better focus on craft financial dodge and reporting or parley skills, in that respectby enabling candidates to consider the overall realities of the line of products milieu and to use advisory skills more effectively. Introduction of more or less more relevant programmes and appropriate titles the New Business Strategy is more about foc apply, making accountants strategic stopping blooms makers. Increased vehemence on task advisory skills at the final Part 4. 2 demonstrate of Chartered Accountants, gold coast Financial Accounting Fundamentals OBJECTIVES AND EXPECTED death penalty OUTCOME OF EACH PART Each of the 4 Parts of this examination scheme has a broad obje ctive and expected performance outcome as stated below. Additionally, deep d take in each subject at any Part, the syllabus coverage as well as the detailed but specific objectives and learning outcomes are stated. The broad objective and learning outcomes of the four (4) Parts are as follows PART 1 4 grassroots/foundation papers. Provision of basic principles and knowledge inevitable to understand the Business Environment. PART 2 Four (4) traditional core papers. Test of good expertise required of a in advance(p) accountant. Acquisition of background knowledge and skills requisite for effective performance at middle concern level. PART 3 Four (4) core papers. Emphasis on telephone circuit cases, strategy and advisory skills. PART 4 Four (4) core papers. Emphasis on business cases, strategy and advisory skills. Result and get a lineation The pass cross is 50%. The results give be published as pass or fail.A candidate who fails has the option of rewriting this pape r in subsequent examinations till his/her candidature expires. Institute of Chartered Accountants, Ghana 3 Proposed Sylabus for ICAG Qualifying Examinations paid PART 1 piece of music 1. 1 Financial Accounting Fundamentals 1. OBJECTIVES AND LEARNING OUTCOMES This paper is designed to enable candidates acquire and appreciate primaeval chronicle knowledge in physical compositions. At the end of the course, the candidate should be able to Demonstrate vocalize knowledge and understanding of accounting principles, conceptions and their practical application in the preparation of financial statements.To ensure that students have a sound understanding of the techniques of double entry accounting and can apply its principles in recruiting minutes, adjusting financial records and preparing non-complex financial statements. Able to detect and indemnify omissions and errors in accounting records and financial statements. Able to specify the components of financial statements and fudge and inaugurate non-complex accounts for sole traders, confederacys and limited companies. Specify why an entity master(prenominal)tains financial records and prepares financial statements. refer the sources of selective reading for the preparation of accounting records and financial statements. Record and account for relationss and events resulting in income, expenses, assets, liabilities and honor in accordance with the appropriate basis of accounting and the laws, regulations and accounting standards relevant to the financial statements. crap a trial respite from accounting records and identify the uses of the trial balance. Prepare accounts and financial statements from incomplete records. Understand the polar bases of preparing financial statements. Apply some inter innate financial reporting standards. delineate the qualitative characteristics of financial information and the central bases of accounting FORM OF exam The examination pass on be a triple-hour paper make uping of fivesome unconditional questions. (All the five questions must be behaveed. ) 3. course WEIGHTING GRID This storage-battery grid enters the sexual intercourse weightings of topics deep down this subject and should guide the coitus study sentence spend on each. The marks available in the assessment will tally to the weightings below. 4 Institute of Chartered Accountants, Ghana 2. Financial Accounting FundamentalsHowever, there might be slight variations in some instances as they serve as a guide only. platform coverage Conceptual fashion model of Accounting, Maintaining Financial Records Principles of Double door & Books of Prime Entry Adjustments to Accounting Records and Financial articulatements Accounting for non-current Assets (tangibles and intangibles) Preparation of Financial enjoinments including Cash Flow Preparation of Financial areaments for Non- avail make Organisations, Preparation of Financial Statements from Incom plete Records Accounting for specialised transactions Introduction to financial statements analysis bestow WEIGHTING (%) 0 15 20 20 15 10 100 Institute of Chartered Accountants, Ghana 5 Proposed Sylabus for ICAG Qualifying Examinations report 1. 1 Financial Accounting Fundamentals important field of study SYLABUS mental object (Contd. ) 1. 1 Conceptual modelling of Accounting a. draw and inform the range of a function of accounting, financial accounting, book- property, represent and perplexity accounting, and their similarities and differences. b. relieve the needs of extraneous and infixed users of accounting information. c. unwrap forms of Business Entity and develop the meaning of entity. d. rationalize the categories of business make-ups. (i) Sole Proprietorships Their characteristics, benefits and limitations. (ii) Partnerships Their characteristics, benefits and limitations. (iii) Limited Liability Companies Their characteristics, benefits and limitations e. apologize the differences surrounded by Partnerships and limited liability companies. f. relieve the purpose of financial statements by 1AS 1. g. rationalise the accounting assumptions and concepts. h. compend the components of financial statements. i. aim the main users of financial information and their information needs. . place and let off accounting concepts and conventions. k. lineation the qualitative characteristics of financial statements. l. Outline the elements of financial statements and the basis of their recognition and their measurements. m. beg off Accounting Standards their purpose, standards setting process, IASB membership. a. Specify why an entity maintains financial records and prepares financial statements. b. list the sources of information for the preparation of accounting records and financial statements. c.Record and account for transactions and events resulting in income, expenses, assets, liabilities and equity in accordance with the appropriat e basis of accounting and the laws, regulations and accounting standards applicable to the financial statements. d. Record and account for changes in the willpower structure and ownership interests in an entity. 1. 2 Maintaining Financial Records 6 Institute of Chartered Accountants, Ghana Financial Accounting Fundamentals composing 1. 1 Financial Accounting Fundamentals chief(prenominal) yield SYLABUS cloy (Contd. ) 1. 3 Principles of Double Entry and Books of Prime Entry a.Understand and apply the accounting equation. b. bring up the elements of financial statements Types, definitions, dealinghips and distinctions. The personality of transactions. c. Outline the contents and purpose of different types of business documentation, including quotation, sales order, acquire order, goods received note, goods dispatched note, invoice, statement, credit note, debit note, remittance advice, receipt. d. Identify the main types of volume accounts and books of prime entry ( hard cash books, the sales day book and the sales ledger, the purchases day book and the purchases ledger) and understand their genius and function. . Understand and illustrate the uses of ledgers and the posting of journal entries into ledger accounts. f. Identify the main types of business transactions e. g. sales, purchases, payments, receipts. g. Identify correct journals from disposed(p) narrative. h. beautify how to balance and close a ledger account. 2. 1 Adjustments to accounting records and financial statements a. Identify and rationalize the types of errors that can affect trial balance and its effect on financial statements. (i) apologize how these can be corrected. (ii) develop the purpose of suspense accounts. iii) beg off the uses of journals to correct errors in selective service financial statements. b. let off the accounting for the following in financial statements (i) Stocks/inventories. (ii) tactual non-current assets. (iii) Fixed Assets and Depreciation . (iv) nonphysical non-current assets and amortisation. (v) Accruals and prepayments. (vi) Debtors/receivables and trade creditors/ payables. (vii) Provisions and contingencies. (viii) Returns inwards and outwards. (ix) Discount received and discount allowed. (x) cap and revenue expenditures. Institute of Chartered Accountants, Ghana 7Proposed Sylabus for ICAG Qualifying Examinations make-up 1. 1 Financial Accounting Fundamentals main(prenominal) musical theme political program topic (Contd. ) xii. Bad debts, provisions for doubtful debts, provisions for discounts on debtors. c. Prepare Bank Reconciliation Statement. 2. 2 Accountingfor Non-current Assets a. get word the accounting intercession for property, do and equipment in accordance with IAS 16. b. rationalize the methods and policies of depreciation (limited to straight line, lessen balance and r valuation methods). c. exempt the reasons for depreciation and accounting for provision for depreciation. . Account for disposal of property, plant and equipment employ ledger accounts. e. Account for recognition of Intangible assets in accordance with IAS 38. f. Explain the differences amidst depreciation and amortization. a. Prepare and defend income statement and balance aeroplane of a sole trader i Manufacturing Account ii Trading Account iii Profit and release Account iv Balance Sheet a. Describe the procedure for forming a partnership. b. Outline the provisions in the corporal Private partnership make for 1962 (Act 152) in recounting to the preparation of partnership accounts. c.Prepare final accounts of partnership Trading, lolly and loss account Profit and loss appropriation account Partners great and current accounts Balance saddlery d. Explain the procedure for admission of a partner. e. Explain the methods of valuing goodwill. f. Explain revaluation in apprisal to an admission of a new partner, change in the lucre sharing ratio, or a retirement/death. 3. 2. Preparation of Financial Statements of a Partnership mansion 3. 1 Preparation of Financial Statements of a Sole backingr 8 Institute of Chartered Accountants, Ghana Financial Accounting FundamentalsPAPER 1. 1 Financial Accounting Fundamentals MAIN report course of instruction CONTENT (Contd. ) g. Prepare partnership accounts for an admission, change in the profit sharing ratio, or a retirement. h. Prepare accounts for simple dissolution (excluding piecemeal realisation). 3. 3 Preparation of Financial Statements of a telephoner a. distract amidst. Ordinary Share and Preference Share. Authorised Capital and Stated Capital. Income Surplus and Capital Surplus. b. Describe the nature and types of debentures. c. Explain the nature and purpose of final accounts of a limited liability company. . Draft company final accounts for internal use. e. mold cash flow and formulate cash flow statement. f. Describe the usefulness of cash flow statement. g. Prepare a simple cash flow statement in accorda nce with IAS 7. a. Identify the type of entity that is a non-profit making organisation. b. Identify the purpose of such organisations. c. Outline the differences betwixt income statement for non-profit making organisation and income statement for a profit making business. d. Prepare receipts and payments account, income statement and a balance sheet for a non-profit making organisation.Prepare Income statement and balance sheet of an entity from incomplete records. 4. 1 Preparation of Financial Statements for Not-for-Profit Organisations 4. 2 Preparation of Financial Statements fromIncomplete Records 5. Accounting for a. Explain conjunction venture. Specialised b. sleep together between correlative venture and partnership. proceeding Joint Venture c. Explain how to make entries in the accounts of a joint venture. Investments d. Explain investments accounts, and how they are Royalties utilise. Branch Institute of Chartered Accountants, Ghana 9 Proposed Sylabus for ICAG Qualifyi ng Examinations PAPER 1. Financal Accounting Fundamentals MAIN guinea pig SYLLABUS CONTENT (Contd. ) e. Record transactions in investment accounts. f. Explain royalties, stripped rent and short leanings. g. Record royalties in the books of the lessee and lessor (including sub-royalties or leases). h. Prepare departmental and branch accounts (excluding foreign branches). 6. Introduction to Financial Statement epitome a. wait basic financial ratios from given income statement and/or balance sheet Profitability Ratios Liquidity (Short term solvency) Ratios Gearing/Leverage Ratios Activity/ qualification Ratios Investment Ratios b.Explain the meaning and uses of the above ratios. c. Outline the limitations of financial ratios as cock for performance measurement. LIST OF RECOMMENDED schoolbook 1. 2. 3. ICAG Study textbook. Wood F. Business Accounting 1 Financial Times. Millichamp, R. A. (1992) Foundation Accounting DPP. RELEVANT LEGISLATIONS 1. 2. Companies Code, 1963, Act 1 79. Incorporated Private Partnership Act 1962, Act 152. 10 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Business Management 1.OBJECTVES AND LEARNING OUTCOMES At the end of the course, candidates should be able to beg off the objectives of business and the functions of oversight exempt the major concepts, theories and techniques in the field of general management apply the concepts, theories and techniques in analysing and providing solutions to business problems puff the various usable field of honors of an organisation and how they relate to one another hear the environment within which businesses put to work appraise the impact of frugal, social, political, legal, technological and global changes in the environment on management conclusivenesss. . FORM OF EXAMINATION The examination will be a three-hour paper of seven (7) questions. Candidates will be required to coiffure any five (5) questions. 3. SYLLABUS WEIGHTING GRID This grid sho ws the relative weightings of topics within this subject and should guide the relative study eon fagged on each. The marks available in the assessment will compare to the weightings below. However, there might be slight variations in some instances as they serve as a guide only.Syllabus Coverage Introduction to Management formulation and Decision Making Organizing, Motivation, leaders, imperious Communication Groups and Team Work gentleman Resource Management Marketing Management Operations Management totality Weighting (%) 10 15 30 15 10 10 10 100 11 Institute of Chartered Accountants, Ghana Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Introduction to Management a. Explain the objectives of business organisations. b.Explain the four (4) functions of management and state the other major elements in the management process. c. Explain the sections of management. d. Explain the types of skills need by m anagers. e. Describe how managerial jobs differ according to the levels and areas of responsibility. f. Explain the ontogenesis of management theories. g. Explain how socio-cultural, legal, economic, political and technological and global changes influence businesses. h. Explain the concept of stakeholders and distinguish between primary and indirect stakeholders. i. Explain the nature of the power and interests of takeholders. j. Explain the social responsibility of businesses. mean and Decision Making a. Define and differentiate between the following key terminologies Planning omen Objective setting Policies Programmes Schedules Procedures Budgeting b. State and retrace types of plans. c. Categorise the types of cooking at the different levels of management. d. Explain the planning process. e. Explain the steps in the decision making process. f. Appraise alternative solutions and select appropriate solution(s) to organisational problems. g. appraise and apply skills n ecessary for effective decision making as regards the entire spectrum of management and organisation. 12 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Organising a. Describe the elements that make up organisational structure and its related units. b. Develop organisational charts and rationalize their importance. c. Describe the main approaches to job design. d. Explain the major methods of vertical co-ordination, including formalisation, span of management, centralization vs. ecentralisation, delegation, line and staff positions. e. Analyse delegation, authority, responsibility and accountability and their impact on demand and organisational culture. f. Explain, give way and evaluate the concept of coordination as an integral part of management. g. pock between types and conditions for business and organisational integration. h. Identify and state the characteristics and relationships associat ed with planning, organising, leading and simplenessling in organisations. i. Appraise the role and importance of co-ordination. a.Define drawship. b. Explain the major sources of a leaders power. c. Explain the following leadership theories Traits theory Behavioural theory Contingency theory Managerial grid Tannenbaum and Schmidt leadership continuum Fieldlers mishap theory Situational leadership Path-goal theory. modern-day theories d. Explain the various leadership styles Leadership Institute of Chartered Accountants, Ghana 13 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Motivation . Explain the theories of motivation. b. Describe the role of behavioural aspect of motivation. c. Evaluate the limitations to motivation theories. d. Describe how squadwork and consultative management are used as motivational tools. e. Outline the linkage between motivation and railroad siding. a. Explain the nat ure and importance of organizational mold. b. Describe the swan process. c. Discuss the different organisational control process. d. Explain the different control methods. a. Explain the meaning and role of communication in modern organisations. b.Explain the main forms of communication. c. Describe the communication process. d. Distinguish between organisational communication channel and explain their role in managing effectively. e. Discuss the roles of negotiation in the management process both within an organisation and with external bodies. f. Identify and describe barriers to communication. a. Define and analyse the concept of management groups, inter or intra-group relations and how motivation influences group/managerial behaviour. b. Analyse and evaluate the concept of team approach in educateing organisational activities. . Explain how groups are formed within organisations and how this affects performance. d. Explain the nature, functions and purposes of social groups in organisations. e. Explain inter-personal and inter-group relations and distinguish between them. f. Define and analyse the concept of organisational culture and business etiquette in organisations. fancyling Communication Groups and Teamwork 14 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Human Resource Management a.Explain the role of the human resource management function and its relationship to other parts of the organisation. b. Describe the recruitment process. c. Distinguish between training and development and show their relationship. d. Explain the meaning and effects and/or application of job evaluation, staff appraisal, performance measurement and evaluation promotion and demotion. e. Explain the disciplinary procedure in human resource management. f. Explain compensation constitutions and the significance of indirect compensation. g. Explain the concept of organisational wellness and asylum and its benefits. . Distinguish between duties of employers and employees responsibilities. Marketing Management a. Explain the merchandise concept. b. Outline the strategic roles of marketing in organisations. c. Explain the main elements of a marketing plan and importance. d. Explain segmentation and targeting of markets and positioning of products within markets. e. Explain the elements of the marketing mix and their application. f. Describe the role of technology in modern marketing. g. Explain the differences and similarities in the marketing of products and services. h. Design and implement a prepare strategy. . Explain customer care strategies as a means of achieving militant advantage and their relationship with total quality management. Institute of Chartered Accountants, Ghana 15 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management (Contd. ) MAIN TOPIC SYLLABUS CONTENT Operations Management a Explain the following types of drud gery process Job production Batch production set/continuous/flow production b. Explain and compare the following methods of plant layout Process layout yield layout Fixed-position layout. c.Discuss the role of operations management in organizations. d. Explain the concept of quality and total quality management. e. Explain how the quality of products and services can be assessed, measured and improved. RECOMMENDED/REFERENCE TEXTS 1. 2. 3. 4. 5. ICAG Study Text. Appleby P. O. Modern Business Administration, Pitman. Boachie-Mensah, F. O. Essentials of Management, Woeli Publishing Services. Cole, G. A. Management scheme and Practice. DP Publications. Marfo-Yiadom, E. Principles of Management, Woeli, Publishing Services. 16 Institute of Chartered Accountants, GhanaEconomics PAPER 1. 3 Economics 1. OBJECTIVES AND LEARNING OUTCOMES On utmost with this paper, candidates should be able to explain the nature and scope of economics define and explain the fundamental problems of sa tisfying wants from scarce resources with alternative uses or describe resources allocation in relation to competing wants explain and offer illustrations of the main techniques of economic analysis as a basis for business decisions identify how macroeconomic inconstants and government economic policies affect and/or influence an organisation. explain the main features and contemporary trends of the Ghanaian economy and apply the concepts and techniques of economics to current business issues. 2. FORM OF EXAMINATION The examination will be a three (3) hour paper of seven (7) questions, five (5) of which should be answered by candidates. The paper will inhabit of ii (2) sections, A and B. role A will consist of four (4) questions on microeconomics and Section B will consist of three (3) questions on macroeconomics.Candidates are required to answer three (3) questions from Section A and 2 (2) questions from Section B. 3. SYLLABUS WEIGHTING GRID This grid shows the relative weig htings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. Institute of Chartered Accountants, Ghana 17 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 3 Economics SYLLABUS reportage (Contd. ) WEIGHTING (%) underlying Economics Concepts and Systems Price and quantity determination cracking concepts Theory of consumer behaviour Theory of production Theories of be and revenues Theory of the Firm National income accounting Money and banking Public Finance International Trade TOTAL 7 10 8 10 10 5 10 10 10 10 10 100 18 Institute of Chartered Accountants, Ghana Economics PAPER 1. 3 Economics SECTION A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT Basic Economic Concepts and System a. Define and explain economics in relation to production, distribution. b. Consumption of g oods and services. c.Explain the concepts of scarcity, choice and scale of preference. d. Explain the concept of opportunity damage in relation to individuals, unwaveringlys and government. e. Identify the main characteristics of the various economic formations and explain their merits and demerits. f. Discuss the role of economics in business decision making. a. Define demand and confer and identify the types. b. Identify and explain the determinants of quantity demanded and supplied. c. Explain individual and market demand and supply using tables, graphs and equations. d. Distinguish between a change in quantity demanded and a change in demand. . State and explain the determinants of a change in demand and a change in quantity demanded. f. Distinguish between a change in quantity supplied and a change in supply. g. State and explain the determinants of a change in supply and a change in quantity supplied. h. Identify and explain the determinants of a change in supply and a cha nge in quantity supplied. i. Explain the concepts of equaliser set and quantity via demand and supply with the aid of tables and diagrams. j. delineate chemical equilibrium price(s) and quantity(ies) mathematically for a single and a two-commodity model. . Define and explain maximum (ceiling) and stripped (floor) price legislations and give reasons for legislating prices. l. State and explain the consequences of price legislation with the aid of diagrams. m. Explain the remedies for the consequences of price legislation. Institute of Chartered Accountants, Ghana 19 Price and Quantity Determination Proposed Sylabus for ICAG Qualifying Examinations SECTION A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT Elasticity Concepts a. Distinguish between own price (point/arc), cross and income elasticities of demand. b. visualise and figure coefficients of own price (point/arc), cross and income elasticities of demand. c. Identify and explain the determinants of price childs pla y of demand. d. Calculate and interpret coefficients of price (point/ arc) elasticity of supply. e. Identify and explain the determinants of price elasticity of supply. f. Explain how elasticities are used in pricing decisions, production and incidence of taxation. a. Define and explain the concept of emolument. b. Define and graph total, just and fringy utilities and calculate average and marginal utilities from total utility. . State and explain the law of diminishing marginal utility. d. enforce the law of diminishing marginal utility to explain equilibrium of the consumer (one commodity, two or more commodities) and derive the demand curve. e. Use the equilibrium conditions for two commodities to get a line the equilibrium quantities consumed via tables. f. Use the law of diminishing marginal utility to resolve the paradox of esteem. g. Explain substitution and income effects and use them to show the curvature of demand curves for average, inferior and Giffen goods. a.Ide ntify, define and explain the factors of production. b. Explain dictated and variable inputs in relation to short and long run production periods. c. Define and explain total, average and marginal products. d. Calculate marginal and average products from total product and represent total, average and marginal products graphically. e. Identify and explain the relationships between total, average and marginal products. Theory of Consumer Behaviour The Theory of production 20 Institute of Chartered Accountants, Ghana Economics SECTION A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT . State and explain the law of variable proportions and use the law to explain the stages of production. g. Explain the long run behaviour of output (returns to scale). a. Distinguish between Private and social costs. unstated and explicit costs. b. Define, tabulate, represent graphically and explain the inter-relationship of short run costs (fixed and variables costs total, average and marginal costs). c. Use the law of diminishing returns to variable proportions to explain the conventional shapes (Ushapes) of the average variable cost and marginal cost curves. d.Explain and represent graphically, long run costs. e. Explain economies and diseconomies of scale. f. Use economies and diseconomies of scale to explain The position of the long run average cost curve in cost-output, space. The conventional shape of the long run average cost curve. g. Define and explain total, average and marginal revenues. h. Explain the behaviours of total, average and marginal revenues in both price-taking and pricemaking industries. a. Define the concept of profit in relation to practice and economic profits. b. Distinguish between accountants and economists profits. . Distinguish between economic profit and economic loss. a. Distinguish among factory, firm and industry. b. Explain the general concept of equilibrium of the firm. c. Define the various forms of market structures (perfect comp etition, monopoly, monopolistic competition) and identify the characteristics of each of them. d. Explain the short run and long run positions of the Institute of Chartered Accountants, Ghana 21 Theories of Costs and Revenues Theory of the Firm Proposed Sylabus for ICAG Qualifying Examinations SECTION B Microeconomics MAIN TOPIC (Contd. )SYLLABUS CONTENT perfectly competitive firm, monopolistic firm and monopolistic competitive firm. e. Define oligopoly and identify its characteristics. f. Define, distinguish and give reasons for regulation, deregulation and privatization of firms. National Income Accounting a. Explain the stock and flow concepts of measurement. b. Define national income. c. Explain the following methods of measuring national income Expenditure approach Product (output) approach Income approac d. Identify and explain the problems and factors that influence the size of national income. e.Explain the relevance of the size of national income. f. Define expenditure , savings, investment, government expenditure, imports and exports. g. Identify and explain the determinants of consumption savings, investment, government expenditure, imports and exports. h. Explain income determination, equilibrium income, the multiplier and the basic accelerator. i. Compute equilibrium income, tax, disposable income and savings. j. Define and explain commingle demand and aggregate supply. k. Illustrate changes to equilibrium level of national income using aggregate demand and aggregate supply analysis. . Define, identify types and explain measures for tackling unemployment. a. Identify and explain the origins, nature, features and functions of money. b. Identify types of banks and explain the functions of central and mercenary banks. c. Explain credit creation by commercial banks. d. Identify and explain the instruments of monetary policy. e. Explain Monetary Policy planning through the Monetary Policy Committee (MPC). Money and Banking 22 Institute of Charte red Accountants, Ghana Economics SECTION B Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT f.Explain the effects of monetary policy on business organizations. g. Define stock exchange and explain its functions and importance. h. Define and explain demand and supply of money and the three motives of holding money. i. Define and explain puffiness and the Philips curve. Public Finance a. Identify and explain the sources of government revenue b. Identify and explain the various items of government expenditure. c. Define National Budget and explain balanced budget, deficit budget and surplus budget. d. Identify and explain sources of backing budget deficit and its economic implications. . Explain Fiscal Policy and identify its tools. f. Define tax and explain the principles (progressive, regressive and proportional) and incidence of taxation. g. Outline the merits and demerits of direct and indirect taxes. h. Define national debt and identify the sources of national debt accumulati on. i. Explain the arguments for and against add-on in national debt. j. Identify and explain ways of managing the national debt (e. g. debt swap, exceedingly Indebted Poor Countries (HIPC). Initiative, conversion of national debts into bonds etc. ) a. Give reasons for multinational trade. . Explain the concept and consequences of globalisation for business and national economies. c. Explain the concept of balance of payments and its implications for business and for government policy. d. Identify and explain the various components of balance of payments. e. Distinguish between balance of payments deficit and balance of payment surplus. Institute of Chartered Accountants, Ghana 23 International Trade Proposed Sylabus for ICAG Qualifying Examinations MAIN TOPIC SYLLABUS CONTENT f. Explain the causes and effects of fundamental imbalances in the balance of payments. g.Identify and explain exchange rate systems (fixed, flexible and managed float). h. Analyse the interrelationship bet ween exchange rate and current accounts balance. i. Identify and explain types of multinational trade controls, arguments for and against trade control and liberalization. j. Explain the role of major institutions (e. g. valet Bank, International Monetary Fund) in fostering internal development and economic stabilization. RECOMMENDED/REFERENCE TEXTS 1. 2. 3. 4. 5. ICAG Study Manual on Economics Begg, D. Economics, McGraw-Hill Colander, D. C. Microeconomics, McGraw-Hill Colander, D. C. Macroeconomics, McGraw-Hill Powhitethornie, P.Macroeconomics, An Introductory Text 24 Institute of Chartered Accountants, Ghana Management selective information Systems PAPER 1. 4 Management development System 1. OBJECTIVES AND LEARNING OUTCOMES This paper is concerned with the strategic importance of information systems to organisations in the modern business environment. It recognises that although may organisations employ culture applied science (IT) Professionals, Chartered Accountants now h ave a key role to play in the provision of information that adds noteworthy value to the ever-increasing volume of data processed for management decision making.At the end of the course, candidates should be able to Develop an understanding of general information system concepts and practices and technological environment of the contemporary organisation. Apply a systematic approach to the use of information technology in organisations. Appraise the technological environment in order to support the practical aspects of information provision and usage. Identify and apply project management techniques and develop project proposals. 2. FORM OF EXAMINATION The examination will be a three-hour paper of six (7) questions make up of Sections A and B.Section A will consist of a compulsory case study question of 40 marks. Section B will consist of five (5) questions out of which candidates will be required to answer three (3) questions. 3. SYLLABUS WEIGHTING GRID This grid shows the rela tive weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. Institute of Chartered Accountants, Ghana 25 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. Management reading System SYLLABUS COVERAGE Systems Theory and Practice teaching Systems Computers in Communication info Technology and the Professional Accountant Business Strategy and IS/IT Alignment Project Management TOTAL MAIN TOPIC SYLLABUS CONTENT (Contd. ) WEIGHTING (%) 10 35 10 20 10 15 100 1. Systems Theory and Practice Systems concepts and definition a. Explain systems concepts and give examples of real systems. b. Explain the nubble of systems approach to problem solving. c. Describe the holistic features of systems. d. oppose between system boundaries and environments. . Explain the following system types Open Closed Adaptive cybernetic Deterministic Probabilistic (or stochastic) System and Subsystems a. Explain the relationships among subsystems in a veritable(prenominal) business context. b. Apply the theory of sub-optimality and systems objective. c. Explain the need for system control and feedback. d. Explain the following system control elements Standard Comparators Sensor Effectors e. be the control mechanisms diagrammatically. 26 Institute of Chartered Accountants, Ghana Management Information Systems PAPER 1. 4 Management Information System (Contd. MAIN TOPIC SYLLABUS CONTENT 2. Information Systems Application of Information systems in the organisation a. Define and distinguish between data and information. b. Explain the attributes of good information, i. e. accuracy, timeliness, brevity, conciseness, reliability, etc. c. Explain the concept of the value of information. d. Explain the term, Information Technology. e. Explain the role and uses of information in organisation i. e. competitive advantage and support of managerial functions. f. Explain the different types of information systems, i. e. TPS, MIS, DSS, EIS, and ES. g.Describe the three levels of information in relation to the levels of management. Traditional file Structures and storage Media a. Explain the damage, computer file record field record key. b. Explain the relationship and difference between transaction and master files. c. Describe the key methods of file organisation and access. d. List the characteristics and explain the workings of the different storage media magnetic tape, magnetic disc, diskette, CD-ROM, DVD, Zip disc, fritter disk, etc. informationbase Design and Implementation a. Define database and explain the importance of databases in the operations of an organisation. . Describe the types and enumerate the advantages and disadvantages of database models hierarchical, interlocking, relational and object-oriented. c. Explain with examples, componen ts of a database Management System (DBMS) hardware, software package, people (users, designers, administrators, procedures, data/information). d. Apply database tools to real life systems Entities, attributes and Relationships. e. Explain entity relationship modeling, data analysis and entity life history. Institute of Chartered Accountants, Ghana 27 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 4 Management Information System (Contd. )SYLLABUS CONTENT 2. Information Systems (Contd) Computer Hardware and Software Concepts a. Explain the hardware concepts of the computer and list its benefits and shortcomings. b. Describe the categories/generations of computers super, mainframe, mini and microcomputers. c. Draw the basic functional units of a computer system and show how they interrelate CPU, input/output devices (peripheral devices). d. Describe the various types of computer computer memory semi-conductor memory, cache memory, video memory and flash memory. e. E xplain operating systems single user, multi user. f. Explain system software and describe its components. . Explain the functions of the operating system (os). h. Explain Applications software and describe Packagres. Bespoke software, special purpose software, general purpose software. i. Viruses, worm. j. Explain with examples the phylogenesis of computer scheduling languages machine language, assembly language, high level language, 4GL and 5GL. g. Explain the concept of software interrogatory unit examinationing, static trial runing, dynamic testing and retrogression testing. h. Explain the use of the following CASE tools Prototyping tools Query language. i. Describe the qualities of a good programme.Representation of processes in computer Systems a. Draw diagrams to represent computer processes using the following tools Programme flowchart Decision trees Decision tables Data flow diagram Human Computer Interfaces (HCI) a. Explain the various types of communication be tween users and computer systems command driven, menu 28 Institute of Chartered Accountants, Ghana Management Information Systems PAPER 1. 4 Management Information System (Contd. ) SYLLABUS CONTENT driven, GUI, user-friendliness. b. Internal and External design of systems. 2. Information Systems (Contd) Systems Development Life-cycle (SDLC) a.Explain the following phases of the SDLC Problem identification Feasibility studies System investigation System analysis System design Implementation Post-implementation review. b. Describe the methods required to measure the success of the system. c. Apply structured methodology to system development. impact Systems Options a. Describe the processing options and their characteristics (batch, real-time, demand, online, distributed, centralized and decentralized processing). IS/IT in the organisation a. Explain the role and describe the staffing, functions and responsibilities of the IS/IT department in an organization. . Explain the pr inciples of facilities management and outsourcing. Controls and credentials of Computer Operations a. Explain the principles of system security and control. b. Explain the under-listed control measures Administrative controls Input and output controls Operational controls General controls Verification and check c. Explain the principles of hardware/software maintenance (preventive, corrective, adaptive and perfective). Institute of Chartered Accountants, Ghana 29 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 4 Management Information System (Contd. )MAIN TOPIC SYLLABUS CONTENT Data communication Principles, Objectives and Uses 3. Computers in Communications a. Explain the importance of computer networks and distributed processing. Computers in Communication a. Explain the following computer network types Wide area Metropolitan area Local area b. Explain computer network topologies and protocols. c. Internet, Intranet, Extranet. Office automation a. Explain off ice automation. b. Explain E-Business c. Explain the following E-Commerce E-Mail telecommuting E-Banking Telesales Video conferencing Tele conferencing EDI E-Learning 4.Information Technology andthe Professional Accountant Information Technology and the Contemporary Accountant a. Explain how information technology influencing the ways in which organization are structured, managed and operated. b. Identify the required level of knowledge of information technology by professional accountants which can be applied to practical problems in the organization. Information Technology Knowledge and Skills Areas a. Explain the role of the accountant in information technology concepts for business systems under the following 30 Institute of Chartered Accountants, Ghana Management Information SystemsPAPER 1. 4 Management Information System (Contd. ) MAIN TOPIC SYLLABUS CONTENT The professional accountant as a user information technology. The professional accountant as a manager inform ation system. The professional accountant as a designer business information systems. The professional accountant as an jurist information systems. 5. Business Strategy and IS/IT Alignment of of of of a. Explain the approach that an organisation may follow to formulate its strategic business objectives. b. Identify current trends in information technology and the opportunities they offer to organisations. c.Distinguish between a business strategy and an information systems strategy. d. Identify responsibility for the ownership of this strategy. e. Explain the use of IS/IT for competitive advantage, using Porters model. a. Define Project Management and explain the terms of reference of a project. b. Explain the roles and responsibilities of staff who manage and participate in projects. c. Explain roles and responsibilities of the project manager. d. Explain the advantages of using a project management software package in the project management process. e. Construct and analyse a pr oject network. f. Construct and interpret a Gantt chart. . Project Management LIST OF RECOMMENDED TEXT 1. 2. 3. 4. 5. 6. 7. 8. ICAG Study Manual. Stubbe, R. Computers and Information Systems. French, C. A. Data touch and Information Technology 9th Edition. Landon, K. C. Information Systems and the Internet. Kenneth E. Kedeall, K. E. Systems Analysis and Design. Senn, J. A. Information Systems in Management. Wadsworth. Anderson, J. A. Data Processing Vol. 1 & 2 M & E Pitman. French, C. S. Data Processing and Information Technology. DPP. Institute of Chartered Accountants, Ghana 31 Proposed Sylabus for ICAG Qualifying Examinations PROFESSIONAL PART 2 PAPER 2. Quantitative Tools in Business 1. OBJECTIVES AND LEARNING OUTCOMES At the end of the course, candidates should be able to Develop the understanding and application of statistical and mathematical techniques needed to solve business and accounting problems. Explain and interpret the role of the relevant aspects of quantitative techniques needed to solve business and accounting problems. Make the most informed decision in business and accounting scenarios. 2. FORM OF EXAMINATION The examination will be a three-hour paper of seven (7) questions in all out of which candidates are required to answer any 5 questions. . SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. SYLLABUS COVERAGE Data collection and interpretation Decision making under stake and hesitancy Forecasting techniques Planning and control techniques Optimisation and decision making techniques TOTAL 32 Institute of Chartered Accountants, GhanaWEIGHTING (%) 10 20 25 25 20 100 Quantitative Tools in Business PAPER 2. 1 Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd . ) 1. Data Collection and Interpretation a. Collect statistical data using the various sampling methods. b. Classify and tabulate data in the form of frequency distribution table. c. Present data pictorially in the form of bar chart, pie chart, give, histogram, Z-Chart, Gantt chart, Lorenz curve, etc. d. Calculate measures of central tendencies ( mean, median and mode) from a given data. e.Calculate measures of dispersion (standard deviation, range, mean deviation, variation, coefficient of variation, quartile deviation and skewness, etc) from a given data. a. Define prospect. b. Distinguish between equally comparablely and mutually exclusive outcomes. c. Explain marginal, joint and conditional probabilities. d. Apply Bayes theorem to problem solving. e. Draw probability trees. f. Distinguish between dependent and independent events. g. Explain the laws of probability. h. Calculate and interpret expected value and standard deviation of a discrete random variable. . Use decision t ree to solve problem. j. Prepare a conditional pay-off table. k. Use normal distribution to solve problems. Matrix Algebra a. Present matrix information in a tabular form. b. work up matrix algebra addition, subtraction, scalar multiplication, matrix algebra. c. Solve problems involving matrix inversion. d. Solve simultaneous equations by matrix algebra. e. Solve problems involving probability transition matrices. 2. Decision Making Under Risk and Uncertainty Institute of Chartered Accountants, Ghana 33 Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) 3. Forecasting Techniques unbiased Linear Regression Analysis a. Draw scatter diagram. b. Find the equation of the line of best fit using the east squares method. c. Draw the line of best fit on a scatter diagram. d. Interpret the regression coefficient. e. Use the regression equation to forecast. f. Use the computer output to test for regression (t-test, ftest). Simple Linear Correlation Theory a. Distinguish between regression and correlation. b. Explain negative zero and positive correlation. c.Distinguish between product-moment and Spearmans array correlation coefficient. d. Calculate and interpret product-moment and Spearmans correlation coefficients. Time Series Analysis a. Explain time series. b. State and explain the components of a time series. c. Determine the trend using the methods of moving averages and least squares. d. Apply additive and multiplicative models to determine average seasonal variations. e. Use time series to forecast. 4. Planning and Control Techniques Network Analysis a. Distinguish between critical trend method (CPM) and programme evaluation and review techniques (PERT). . Draw network diagrams using activity-on-arrow and activity-on nod models. c. Explain optimistic, most likely and pessimistic times for an activity. d. Calculate the expected duration and variance for an activity. e. Determine criti cal path and project duration. f. Distinguish among and calculate total float, independent float and free float. 34 Institute of Chartered Accountants, Ghana Quantitative Tools in Business PAPER 2. 1 Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) g. Calculate the probability and minimum time for completing a project. h.Crash a project using cost-time slope (lease incremental cost) concept. i. Use network analysis to allocate resources. Stock Control a. State the importance of keeping stock. b. Distinguish the simple economic order quantity (EOQ), gradual alternate and discounts models. c. Use these models to calculate the optimum quantity and determine grade levels and safety stocks. d. Use the discrete probability to calculate the optimum quantity and determine reorder levels and safety stocks e. Use the normal distribution to determine the reorder levels, service levels and safety stocks. 5.Optimization and Decision Making Techniques Differential Calculus a. Differentiate polynomial functions (first and second derivatives only). b. Determine the turning points of a function (maximum, minimum, point of inflection). c. Use differential calculus to maximize revenue and profits (with or without tax) and to minimize cost (including the stock control, EOQ problem). d. Use differential calculus to determine point elasticity of demand. Integral Calculus a. Derive a function given its derivative. b. Apply integration to business problems. Linear Programming a. build up the primal linear programming problem. . Formulate the dual linear programming problem. c. Solve the linear programming problem (involving two variables) graphically. d. Set the sign simplex tableau. Institute of Chartered Accountants, Ghana 35 Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. 1 Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) e. Carry out the first iteration of the simplex tableau. f. Interpret the final simplex tableau. g. Expla in limiting factors (scarce resources) and their shadow prices. h. Carry out sensitivity analysis on the graphical and simplex solutions.LIST OF RECOMMENDATION TEXT 1. 2. 3. ICAG Study Text Francis, A. Business Mathematics and Statistics. Continuum. Lucey, T Quantitative Techniques. Continuum. 36 Institute of Chartered Accountants, Ghana Audit And Internal Review PAPER 2. 4 Audit and Internal Review 1. OBJECTIVES AND LEARNNG OUTCOMES The course is aimed at ontogeny the candidates knowledge and understanding of the visit process from the planning stage through to the reporting stage and the techniques used in the conduct of internal and external audit. At the end of the course, candidates should be able to 2. xplain the nature , purpose and scope of an audit state and explain the purposes of the regulatory framework within which the auditors work is conducted outline the qualification, functions, responsibilities and rights of an auditor describe the audit procedures requ ired at the planning stage of an audit explain the techniques for collecting and evaluating audit evidence explain the techniques for collecting and evaluating audit evidence explain and apply basic auditing concepts like internal controls, sampling, compliance test, substantive test, weakness test, etc assess audit risk and design appropriate audit procedures draw valid conclusions from the results of audit tests and prepare various reports relating to audit assignments. FORM OF EXAMINATION The examination will consist of three-hour paper. Candidates are to answer all the five (5) questions set. 3.SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. SYLLABUS COVERAGE Nature, Purpose and Scope of an Audit. The Regulatory Fra mework of Auditing and Professional Considerations Audit Planning. manifest Gathering Internal controls and Evaluation of Control Risk Internal Audit and Other Assurance Engagements Conduct of Audit and Assurance Concept, process and essential for Assurance Reporting Framework TOTAL WEIGHTING % 20 20 20 15 10 15 100 37Institute of Chartered Accountants, Ghana Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. 4 Audit and Internal Review MAIN TOPIC SYLLABUS CONTENT (Contd. ) 1. Nature, Purpose and Scope of an Audit a. Define an audit. b. Explain the purpose/general objectives of an audit (distinguish between primary and secondary objectives). c. Examine the advantages of auditing to stakeholders. d. Explain and distinguish between the following types of audit Internal/External Statutory/non-Statutory Financial/Operational Interim/Continuous /final exam e. Explain the inherent limitations of an audit. f. Explain the concept of expectation gap. a.Describe the nature, purp ose and scope of auditing standards and auditing guidelines (International auditing Standards). b. Explain the procedure for developing auditing standards and auditing guidelines (International Auditing Standards). c. Examine the statutory and ethical considerations relating to espousal and continuance of audit assignments. d. Assess the code of professional conduct independence, objectivity, integrity, trading of care, confidentiality and conflict of interest. e. State the qualification of an auditor. f. State persons disqualified for appointment as an auditor. g. Describe the procedure for appointing and removing an auditor. h.Examine the duties, responsibilities, powers and rights of auditors. i. Describe the process of accepting audit engagements. j. State and explain the contents of letter of engagement. k. Examine the legal liabilities of the auditor. l. Explain how auditors are remunerated. m. Explain management and auditors respective responsibilities for the presentation of financial statements and detection of maneuver and error. 2. The regulatory framework of auditing and Professional Considerations 38 Institute of Chartered Accountants, Ghana Audit And Internal Review PAPER 2. 4 Audit and Internal Review MAIN TOPIC SYLLABUS CONTENT (Contd. ) 3. Basic Principles and Concepts of Auditing a.Explain the fundamental principles and concepts of auditing Walk through test Weakness test Compliance test Substantive test Vouching Audit risk Audit sampling faultfinding(prenominal) and statistical, and sample selection methods Systems based audit Materiality True and fair view Directional and rotational testing Systems and risk based audit. 4. Auditing Planning and Evaluation a. b. c. d. Explain the purpose and advantages of audit planning. Describe the process of audit planning. Prepare audit planning memorandum. Examine analytical review procedures as a planning technique. e. Evaluate preliminary materiality levels and audit risks. f. Evaluat e the adequacy of accounting system. 5. Internal Controls and Evaluation of Control Risk a. State the reasons for organisations having effective systems of control. b. Identify the fundamental principles of effective control systems. c. Identify the main areas of a business that need effective control systems. d.Identify the components of internal control in both manual and IT environments, including the overall control environment and Control Procedures preventive, detective and corrective controls internal audit as a control factor e. Define and classify different types of internal control, with particular emphasis upon those which impact upon the quality of financial information. f. Show how specified internal controls rationalise risk and state their limitations. Institute of Chartered Accountants, Ghana 39 Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. 4 Audit and Internal Review MAIN TOPIC SYLLABUS CONTENT (Contd. ) 5. Internal Controls and Evaluation of Contro l Risk (Contd) g. Identify internal controls for an organisation in a given scenario. h. Identify internal control weaknesses in a given scenario. i.Identify, for a specified organisation, the sources of information which will enable a sufficient record to be make of accounting or other systems and i n t e r n a l controls. j. Define internal control. k. State and explain the types and limitations of internal control. l. Explain the following in relation to internal control objectives, methods of ascertaining, recording, evaluation, testing systems, control environments and control p