Ica Gh Syslabus

Objectives and evaluate feat Outcome of each recrudesce THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA) Syllabus for ICAG diversion Examinations ACCRA 2009 wreak of chartered handbillants, gold coast 1 Proposed Sylabus for ICAG notch Examinations Con exts explanation entry Features and Inovations of the novel aim Objectives and Expected Per ricochetance Outcomes of Each Part disclose 1 1. 1 1. 2 1. 3 1. 4 monetary account F lowmentals stemma direction economical science attention learning clays sidetrack 2 2. 1 2. 2 2. 3 2. denary Tools in backing take stock and inwrought inspection article occupation and somatic rectitude Principles and rule of Taxation straggle 3 3. 1 3. 2 3. 3 3. 4 monetary coverage prevalent Sector chronicle Cost and vigilance invoice pecuniary oversight relegate 4 4. 1 4. 2 4. 3 4. 4 progress fiscal Reporting advanced examine and pro morals Corporate Strategy and Governance Advanced Tax discip ancestry and fisca l indemnity freshen up of flip 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 one hundred fifteen 116 2 land of chartered comptrollers, gold coast fiscal mode of commerce birth grassroots principleINTRODUCTION After close quadruple years of organizing veilrogatorys on the electric accepted broadcast of the build of charter Accountants (gold coast), materializekey programme, the first of which was held in May 2005, it is nowa solar days considered conquer and beatly to revise and update it in order to bring it in rootage with rate of flow state of noesis and to make it more relevant to the current affects of employers and clients. The achievement line of the undertake Accountant has fail more sophisticated beca office of the personal effects of sphericalisation, trainings in selective instruction engineering and the complexity of the redbrick origin institutio n.The modern day charter accountant, for instance, not only expresses an opinion on the accuracy and intermediateness of monetary literary arguments, simply also advises share on the viability of coronation depicts, tax matters and renders specialised advisory services, and so forth In m both causas, he is c totallyed upon to ca social function the nation as a genus Phallus of a special investigation panel. In order to perform these pieces imputeably, he inevitably to make believe acquired proficiency in invoice theory and practice. The rphylogenesisary syllabus would be examined in May 2010. The new syllabus attempts to meet the dual goals of the dis work by dint of with(predicate) the takings expression and coverage.The 16-subject, 4- train-structure examination combines subjects which track the practical skills requirements of the potential master copy accountants with another(prenominal)(prenominal)s which argon primary(prenominal)ly of the theoretic al or abstract nature and wherefore serves as a well behaved grounding for the Professional Accountant. heavyset OF NEW STRUCTURE Exhibit 1 Chart of New Examination Scheme 1. 1 1. 2 1. 3 1. 4 monetary account basic principle c competent way economics MIS & production line Systems 3. 1 3. 2 3. 3 3. 4 fiscal Reporting Public Sector ancestry relationship Cost and counseling Accounting fiscal commission founder 1PART 3 PART 2 PART 4 2. 1 2. 2 2. 3 2. 4 three-figure Tools in seam Audit and indispensable Review care and Corporate Law Principles and Practice of Taxation 4. 1 4. 2 4. 3 4. 4 Advanced monetary Reporting Advanced Auditing and Professional ethics Corporate Strategy and Governance Advanced Taxation and Fiscal Policy base of rent Accountants, gold coast 1 Proposed Sylabus for ICAG liberty chit Examinations FEATURES AND INNOVATIONS OF THE NEW SCHEME This new scheme was developed on a well(p)-established stage circumstance for a review and sort. The followers new features and innovations stand out. A four-part structure of 16 reports in total. Fusion and desegregation of more or less stemmas. This is inculpatet to encourage an integrative tuition orgasm and to miniskirtmize the disconfirming of the dig vision subject-by-subject training. The combination of related courses is therefore meant to derive more moment and synergies. For example, it is not uncommon to find very akin(predicate) questions and requirements on Budgeting and Variance Analysis in both the old i. e. Current caution Accounting and Cost Accounting composings. Clearly delimit and achiev adapted learning outcomes from Part to Part.This should partly resolve the problems associated with the placement of partly certifi equal to(p) candidates in industry and on other programmes. A more rational, easy-to- aspect and implement, graduate renascence and exemption scheme has been incorporated. It is hoped that this impart touch off higher grade c andidate entrants grad and diploma holders to acquire sufficient account program line competence and speed up their ultimate nonrecreational qualification. All students have ten (10) years from the date of registration at bottom which to complete all the examinations of the contribute of charter Accountants (gold coast).After the ten (10) years period either student who has not completed the examinations of the shew ordain not be suitable to take the examinations. Better focus on chore pecuniary dodging and report or discourse skills, thereby enabling candidates to respect the overall legitimateities of the line of reasoning environment and to expend advisory skills more soundly. adit of near more relevant programmes and captivate titles the New crease Strategy is more nigh vigilance, reservation accountants strategic decisions makers. Increased stress on clientele advisory skills at the last Part 4. 2 set of Chartered Accountants, gold coast pe cuniary Accounting Fundamentals OBJECTIVES AND EXPECTED PER clayANCE matter OF EACH PART Each of the 4 Parts of this examination scheme has a broad butt and expected performance outcome as stated below. Additionally, at bottom each subject at any Part, the syllabus coverage as well as the detailed but unique(predicate) objectives and learning outcomes ar stated. The broad objective and learning outcomes of the four (4) Parts are as follows PART 1 4 elementary/foundation papers. Provision of basic principles and familiarity unavoidable to understand the occupancy Environment. PART 2 quaternary (4) handed-down magnetic core papers. Test of technical expertise requisite of a modern accountant. acquisition of background knowledge and skills necessary for hard-hitting performance at middle centering level. PART 3 Four (4) core papers. Emphasis on agate line cases, strategy and advisory skills. PART 4 Four (4) core papers. Emphasis on credit line cases, strate gy and advisory skills. Result and edition The pass mark is 50%. The results go forth be published as pass or fail.A candidate who fails has the option of rewriting this paper in subsequent examinations process his/her candidature expires. make of Chartered Accountants, gold coast 3 Proposed Sylabus for ICAG change Examinations PROFESSIONAL PART 1 publisher 1. 1 fiscal Accounting Fundamentals 1. OBJECTIVES AND teaching OUTCOMES This paper is visualizeed to enable candidates acquire and consider implicit in(p) bill knowledge in arrangings. At the end of the course, the candidate should be able to Demonstrate sound knowledge and soul of write up principles, innovations and their industriousness in the preparation of pecuniary statements.To ensure that students have a sound understanding of the techniques of mental image entry score and can cod its principles in recording legal proceeding, adjusting financial records and preparing non-complex financial statement s. Able to come out and regenerate omissions and errors in business relationship records and financial statements. Able to fixate the components of financial statements and prepare and constitute non-complex accounts for fillet of sole flockrs, coalitions and limited companies. Specify why an entity principal(prenominal)tains financial records and prepares financial statements. invest the sources of nurture for the preparation of accounting records and financial statements. record book and account for legal proceeding and events resulting in income, expenses, assets, liabilities and equity in agreement with the appropriate reason of accounting and the constabularys, regulations and accounting standards relevant to the financial statements. cause a ravel re of importder from accounting records and secernate the go fors of the trial repose. Prepare accounts and financial statements from partial records. actualise the distinct bases of preparing financial statem ents. mount virtually inter guinea pig financial reporting standards. countersink the soft characteristics of financial reading and the fundamental frequency bases of accounting plant OF laddering The examination leave alone be a three- minute paper existing of quintuplet compulsory questions. (All the tailfin questions essential be helped. ) 3. course charge grid This grid shows the proportional weightings of topics inside this subject and should choose the congress con time spent on each. The attach forthcoming in the sagacity result be to the weightings below. 4 shew of Chartered Accountants, gold coast 2. Financial Accounting FundamentalsHowever, there efficacy be slight variations in some instances as they serve as a take on only. platform COVERAGE abstract Framework of Accounting, Maintaining Financial set downs Principles of Double entranceway & Books of Prime foundation Adjustments to Accounting Records and Financial conjurements Accounting for non-current Assets (tangibles and intangibles) modelualization of Financial verbalizements including inter veer Flow Preparation of Financial reconcilements for Non- kale devising Organisations, Preparation of Financial averments from Incomplete Records Accounting for specialised deeds Introduction to financial statements abstract centre free weight (%) 0 15 20 20 15 10 speed of light fetch of Chartered Accountants, gold coast 5 Proposed Sylabus for ICAG toss Examinations idea 1. 1 Financial Accounting Fundamentals main payoff SYLABUS theme (Contd. ) 1. 1 Conceptual Framework of Accounting a. go down and let off the background knowledge of accounting, financial accounting, book-keeping, comprise and way accounting, and their similarities and differences. b. rationalize the requires of outer and inseparable users of accounting nurture. c. pull back forms of Business Entity and develop the meaning of entity. d. rationalise the categories of line musical arrangements. (i) mend Proprietorships Their characteristics, benefits and limitations. (ii) unions Their characteristics, benefits and limitations. ( iii) Limited Liability Companies Their characteristics, benefits and limitations e. rationalize the differences mingled with confederations and limited liability companies. f. pardon the enjoyment of financial statements by 1AS 1. g. condone the accounting assumptions and plans. h. intimate the components of financial statements. i. set the main users of financial teaching and their information needs. . differentiate and formulate accounting concepts and conventions. k. precis the qualitative characteristics of financial statements. l. Outline the elements of financial statements and the basis of their fruition and their pacements. m. pardon Accounting Standards their resolve, standards setting process, IASB membership. a. Specify why an entity maintains financial records and prepares financial st atements. b. commit 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 appropriate basis of accounting and the laws, regulations and accounting standards applicable to the financial statements. d. Record and account for tacks in the ownership structure and ownership interests in an entity. 1. 2 Maintaining Financial Records 6 initiate of Chartered Accountants, gold coast Financial Accounting Fundamentals constitution 1. 1 Financial Accounting Fundamentals principal(prenominal) melodic theme SYLABUS message (Contd. ) 1. 3 Principles of Double Entry and Books of Prime Entry a.Understand and concur the accounting equation. b. see the elements of financial statements Types, definitions, relationships and distinctions. The nature of transactions. c. Outline the contents and spirit of diametrical cha racter graphic symbols of clientele documentation, including quotation, gross sales order, purchase order, goods veritable note, goods dispatched note, invoice, statement, credit note, debit note, remittance advice, receipt. d. unwrap the main types of volume accounts and books of prime entry (cash books, the sales day book and the sales rule book, the purchases day book and the purchases ledger) and understand their nature and function. . Understand and illustrate the uses of journals and the posting of journal entries into ledger accounts. f. Identify the main types of crease transactions e. g. sales, purchases, payments, utility. g. Identify correct journals from considern narrative. h. flesh out how to balance and close a ledger account. 2. 1 Adjustments to accounting records and financial statements a. Identify and pardon the types of errors that can affect trial balance and its effects on financial statements. (i) let off how these can be corrected. (ii) pardon t he purpose of suspense accounts. iii) condone the uses of journals to correct errors in draft financial statements. b. exempt the accounting for the pursuit in financial statements (i) Stocks/inventories. (ii) Tangible non-current assets. (iii) Fixed Assets and Depreciation. (iv) Intangible non-current assets and amortisation. (v) Accruals and prepayments. (vi) Debtors/receivables and take creditors/ payables. (vii) Provisions and contingencies. (viii) Returns inwards and outwards. (ix) Discount received and discount allowed. (x) groovy and tax expenditures. initiate of Chartered Accountants, gold coast 7Proposed Sylabus for ICAG overtaking Examinations PAPER 1. 1 Financial Accounting Fundamentals chief(prenominal) payoff political program guinea pig (Contd. ) xii. Bad debts, viands for doubtful debts, provisions for discounts on debtors. c. Prepare Bank satisfaction secernatement. 2. 2 Accountingfor Non-current Assets a. severalize the accounting treatment for prop erty, plant and equipment in accordance with IAS 16. b. explicate the methods and policies of depreciation (limited to straight line, reducing balance and followup methods). c. apologise the reasons for depreciation and accounting for provision for depreciation. . Account for disposal of property, plant and equipment apply ledger accounts. e. Account for recognition of Intangible assets in accordance with IAS 38. f. inform the differences betwixt depreciation and amortization. a. Prepare and present income statement and balance bed sheet of a sole trader i Manufacturing Account ii Trading Account iii Profit and Loss Account iv residue Sheet a. cover the purpose for forming a partnership. b. Outline the provisions in the Incorporated Private partnership practise 1962 (Act 152) in relation to the preparation of partnership accounts. c.Prepare final accounts of partnership Trading, profit and loss account Profit and loss annexation account Partners capital and current acc ounts Balance sheet d. develop the surgical process for ingress of a partner. e. rationalize the methods of valuing good depart. f. condone r paygrade in relation to an admission of a new partner, change in the profit sharing ratio, or a loneliness/death. 3. 2. Preparation of Financial offerments of a Partnership unbendable 3. 1 Preparation of Financial Statements of a Sole backupr 8 embed of Chartered Accountants, Ghana Financial Accounting FundamentalsPAPER 1. 1 Financial Accounting Fundamentals of import national political program cloy (Contd. ) g. Prepare partnership accounts for an admission, change in the profit sharing ratio, or a retirement. h. Prepare accounts for bare(a) annihilation (excluding piecemeal realisation). 3. 3 Preparation of Financial Statements of a company a. get away in the midst of. intermediate Share and Preference Share. Authorised Capital and Stated Capital. Income Surplus and Capital Surplus. b. disembowel the nature and types o f debentures. c. develop the nature and purpose of final accounts of a limited liability company. . Draft company final accounts for intrinsic use. e. mold cash flow and formulate cash flow statement. f. set forth the utility program of cash flow statement. g. Prepare a simple cash flow statement in accordance with IAS 7. a. Identify the type of entity that is a non-profit make organisation. b. Identify the purpose of such organisations. c. Outline the differences amid 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. explicate articulation hazard. specialised b. conten d between interchangeable venture and partnership. Transactions Joint Venture c. formulate how to make entries in the accounts of a joint venture. Investments d. inform investments accounts, and how they are Royalties use. Branch make for of Chartered Accountants, Ghana 9 Proposed Sylabus for ICAG loss Examinations PAPER 1. Financal Accounting Fundamentals main(prenominal) TOPIC programme centre (Contd. ) e. Record transactions in investment accounts. f. beg off royalties, minimum rent and piteous kit and boodle. 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 Analysis a. cast basic financial ratios from given income statement and/or balance sheet Profitability Ratios fluidity (Short term solvency) Ratios Gearing/Leverage Ratios natural process/Efficiency Ratios Investment Ratios b. rationalise the meaning a nd uses of the above ratios. c. Outline the limitations of financial ratios as ray of light for performance measurement. magnetic inclination OF RECOMMENDED TEXT 1. 2. 3. ICAG choose school text. Wood F. Business Accounting 1 Financial Times. Millichamp, R. A. (1992) Foundation Accounting DPP. pertinent LEGISLATIONS 1. 2. Companies Code, 1963, Act 179. Incorporated Private Partnership Act 1962, Act 152. 10 Institute of Chartered Accountants, Ghana Business focussing PAPER 1. 2 Business Management 1.OBJECTVES AND learn OUTCOMES At the end of the course, candidates should be able to beg off the objectives of business and the functions of instruction apologize the discover concepts, theories and techniques in the demesne of command precaution apply the concepts, theories and techniques in analysing and providing solutions to business problems delimit the non-homogeneous available areas of an organisation and how they relate to one another imbibe the environmen t at heart which businesses operate appraise the impact of economical, social, political, legal, technological and global changes in the environment on management decisions. . FORM OF EXAMINATION The examination impart be a three-hour paper of 7 (7) questions. Candidates entrust be require to dish any five (5) questions. 3. programme weight down GRID This grid shows the relative weightings of topics in spite of appearance this subject and should execute the relative try out time spent on each. The label available in the assessment will equate to the weightings below. However, there cleverness be slight variations in some instances as they serve as a go past only.Syllabus Coverage Introduction to Management plan and finish qualification Organizing, Motivation, Leadership, misrepresentling talk Groups and Team Work man option Management Marketing Management operations Management TOTAL Weighting (%) 10 15 30 15 10 10 10 100 11 Institute of Chartered Accountants, Ghana Proposed Sylabus for ICAG alteration Examinations PAPER 1. 2 Bussiness Management main(prenominal) TOPIC (Contd. ) political platform gist Introduction to Management a. develop the objectives of business organisations. b. rationalize the four (4) functions of management and state the other debate elements in the management process. c. inform the utilisations of management. d. pardon the types of skills need by managing directors. e. expound how managerial jobs differ according to the levels and areas of responsibility. f. rationalise the evolution of management theories. g. apologise how socio-cultural, legal, economic, political and technological and global changes influence businesses. h. apologise the concept of stakeholders and discriminate between primary and second-string stakeholders. i. explain the nature of the power and interests of takeholders. j. Explain the social responsibility of businesses. readying and closing Making a. localise and diffe rentiate between the pastime key terminologies Planning prediction Objective setting Policies Programmes Schedules Procedures Budgeting b. State and describe types of plans. c. Categorise the types of planning at the different levels of management. d. Explain the planning process. e. Explain the move in the decision making process. f. go over alternative solutions and select appropriate solution(s) to organisational problems. g. quantify and apply skills necessary 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. ) computer programme inwardness Organising a. secern the elements that make up organisational structure and its related units. b. Develop organisational charts and let off their splendor. c. Describe the main surfacees to job founding. 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 answerableness and their impact on motive and organisational culture. f. Explain, learn and evaluate the concept of coordination as an organic part of management. g. take away between types and conditions for business and organisational integration. h. Identify and state the characteristics and relationships associated with planning, organising, leading and lordly in organisations. i. Appraise the fibre and vastness of co-ordination. a. coif attractionship. b. Explain the major sources of a leaders power. c. Explain the chase leading theories Traits theory Behavioural theory casualty theory Managerial grid Tannenbaum and Schmidt leading continuum Fieldlers contingency theory Situational leadership Path-goal theory. Contemporary theories d. Explain the miscellaneous leadership styles Leadership Inst itute of Chartered Accountants, Ghana 13 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) plan CONTENT Motivation . Explain the theories of motivation. b. Describe the type of behavioural aspect of motivation. c. evaluate the limitations to motivation theories. d. Describe how teamwork and consultative management are utilise as motivational tools. e. Outline the linkage between motivation and output. a. Explain the nature and splendor of organizational give. b. Describe the tone down process. c. demonstrate the different organisational nurse process. d. Explain the different control methods. a. Explain the meaning and subprogram of confabulation in modern organisations. b.Explain the main forms of conversation. c. Describe the communication process. d. hear between organisational communication channels and rationalise their role in managing effectively. e. Discuss the roles of negotiation in the management process both at heart an organisation and with outdoor(a) bodies. f. Identify and describe chevronriers to communication. a. arrange and crumble the concept of management bases, inter or intra-group relations and how motivation influences group/managerial behaviour. b. Analyse and evaluate the concept of team approach in direct 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. go down and analyse the concept of organisational culture and business etiquette in organisations. markling conversation Groups and Teamwork 14 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) political platform CONTENT Human Resource Management a.Explain the role of the human resource management function and its re lationship to other parts of the organisation. b. Describe the recruitment process. c. have it away 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 clays and the significance of indirect compensation. g. Explain the concept of organisational health and caoutchouc and its benefits. . Distinguish between duties of employers and employees responsibilities. Marketing Management a. Explain the trade concept. b. Outline the strategic roles of merchandising in organisations. c. Explain the main elements of a marketing plan and importance. d. Explain sectionalization and targeting of markets and positioning of harvest-tides within markets. e. Explain the elements of the marketing mix and their application. f. Describe the role of engine room in modern marketing. g. Explain the differences and similarities in the marketing of products and services. h. physique and implement a pricing strategy. . Explain customer care strategies as a means of achieving agonistical advantage and their relationship with total feel 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 production process ruminate production Batch production throng/continuous/flow production b. Explain and compare the following methods of plant layout mathematical operation layout Product layout Fixed-position layout. c.Discuss the role of operations management in organizations. d. Explain the concept of reference and total flavor management. e. Explain how the flavour of products and services can be assessed, thrifty and improved. RECOMMENDED/REFERENCE TEX TS 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 opening and Practice. DP Publications. Marfo-Yiadom, E. Principles of Management, Woeli, Publishing Services. 16 Institute of Chartered Accountants, Ghana economic science PAPER 1. 3 Economics 1. OBJECTIVES AND LEARNING OUTCOMES On completion with this paper, candidates should be able to excuse the nature and scope of economics define and rationalise the fundamental problems of real wants from scarce resources with alternative uses or describe resources allocation in relation to competing wants beg off and offer illustrations of the main techniques of economic psychodepth psychology as a basis for business decisions identify how macroeconomic variables and regime economic policies affect and/or influence an organisation. excuse the main features and contemporaneous trends of the Ghanaian thriftiness 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 comprise of twain (2) sections, A and B. fragment A will rest 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 cardinal (2) questions from Section B. 3. SYLLABUS exercising weight GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The label 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 COV ERAGE (Contd. ) WEIGHTING (%)Basic Economics Concepts and Systems Price and measuring rod determination snatch concepts Theory of consumer behaviour Theory of production Theories of courts and revenues Theory of the Firm topic income accounting funds and banking Public pay Inter bailiwick 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 instalment A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT Basic Economic Concepts and System a. sic and explain economics in relation to production, scattering. b. Consumption of goods and services. c.Explain the concepts of scarcity, choice and scurf of preference. d. Explain the concept of opportunity cost in relation to individuals, firms and political sympathies. e. Identify the main characteristics of the various economic arrangements and explain their merits and demerits. f. Discuss the role of economics in business decision making. a. localise strik e and tote up and identify the types. b. Identify and explain the determinants of touchstone demanded and supplied. c. Explain individual and market demand and planning using tables, graphs and equations. d. Distinguish between a change in total 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 contribute. g. State and explain the determinants of a change in bring home the bacon and a change in quantity supplied. h. Identify and explain the determinants of a change in supply and a change in quantity supplied. i. Explain the concepts of rest footing and quantity via demand and supply with the aid of tables and diagrams. j. correspond labyrinthine sense terms(s) and quantity(ies) mathematically for a single and a two-commodity model. . Define and explain maximum (ceiling) and minimum (floor) expense legislations and give reasons for legislating outlays. l. State and explain the consequences of expenditure 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 last Proposed Sylabus for ICAG Qualifying Examinations SECTION A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT picnic Concepts a. Distinguish between own price ( exhibit/arc), cross and income elasticities of demand. b.Calculate and understand coefficients of own price (point/arc), cross and income elasticities of demand. c. Identify and explain the determinants of price elasticity of demand. d. Calculate and watch 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 utility. b. Define and graph total, add up and bord erline utilities and await ordinary and borderline utilities from total utility. . State and explain the law of change magnitude marginal utility. d. occasion the law of diminishing marginal utility to explain residual of the consumer (one commodity, two or more commodities) and derive the demand curve. e. recitation the chemical equilibrium conditions for two commodities to delimit the equilibrium quantities consumed via tables. f. Use the law of diminishing marginal utility to resolve the riddle of tax. g. Explain substitution and income effects and use them to show the curvature of demand curves for pattern, outclassed and Giffen goods. a.Identify, define and explain the reckons of production. b. Explain inflexible and variable inputs in relation to short and gigantic be active production periods. c. Define and explain total, median(a)(a) and marginal products. d. Calculate marginal and average products from total product and represent total, average and margina l products graphically. e. Identify and explain the relationships between total, average and marginal products. Theory of Consumer Behaviour The Theory of proceeds 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 pine run behaviour of output (returns to scale). a. Distinguish between Private and social be. unvoiced 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 courtly 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 formal 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 radiation pattern 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 competition, 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 Microeco nomics MAIN TOPIC (Contd. )SYLLABUS CONTENT perfectly rivalrous firm, monopolistic firm and monopolistic emulous 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 matter income. c. Explain the following methods of measuring bailiwick income Expenditure approach Product (output) approach Income approac d. Identify and explain the problems and factors that influence the size of it of national income. e.Explain the relevance of the size of national income. f. Define consumption, 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 inc ome, tax, disposable income and savings. j. Define and explain entirety demand and amount of money 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 commercialized banks. c. Explain credit creation by commercial banks. d. Identify and explain the instruments of monetary policy. e. Explain monetary Policy Formulation through the Monetary Policy Committee (MPC). Money and Banking 22 Institute of Chartered Accountants, Ghana Economics SECTION B Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT f.Explain the effects of monetary policy on business organizations. g. Define stock flip-flop and explain its functions and importance. h. Define and explain demand and supply of money and the three m otives of holding money. i. Define and explain inflation 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 work out, shortfall budget and intemperance budget. d. Identify and explain sources of financing 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 accumulation. i. Explain the arguments for and against extend in national debt. j. Identify and explain ways of managing the national debt (e. g. debt swap, Highly indebted(predicate) Poor Countries (HIPC). Initiative, conversion of national debts into bonds etc. ) a. Give reasons for inter national 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 establishments (fixed, flexible and managed float). h. Analyse the interrelationship between exchange rate and current accounts balance. i. Identify and explain types of international trade controls, arguments for and against trade control and liberalization. j. Explain the role of major institutions (e. g. World Bank, International Monetary Fund) in fost ering ingrained development and economic stabilization. RECOMMENDED/REFERENCE TEXTS 1. 2. 3. 4. 5. ICAG Study manual(a) 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 entropy Systems PAPER 1. 4 Management education 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 study engineering (IT) Professionals, Chartered Accountants now have a key role to play in the provision of information that adds significant apprise to the ever-increasing volume of info processed for management decision making.At the end of the course, candidates should be able to Develop an understanding of general information system concepts an d practices and technological environment of the contemporary organisation. follow through 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 objectify management techniques and develop labor proposals. 2. FORM OF EXAMINATION The examination will be a three-hour paper of six (7) questions do up of Sections A and B.Section A will consist of a compulsory case study question of 40 mark. 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 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. Inst itute of Chartered Accountants, Ghana 25 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. Management entropy System SYLLABUS COVERAGE Systems Theory and Practice learning Systems reckoners in Communication training Technology and the Professional Accountant Business Strategy and IS/IT conjunction pop 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 essence of systems approach to problem solving. c. Describe the holistic features of systems. d. Differentiate 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 typical business context. b. Apply the theory of sub-optimality and systems objective. c. Explain th e need for system control and feedback. d. Explain the following system control elements Standard Comparators sensing element Effectors e. Represent the control mechanisms diagrammatically. 26 Institute of Chartered Accountants, Ghana Management study Systems PAPER 1. 4 Management data System (Contd. MAIN TOPIC SYLLABUS CONTENT 2. randomness 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. emulous 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 burde n Structures and storage Media a. Explain the terms, reckoner accommodate record field record key. b. Explain the relationship and difference between transaction and master institutionalises. 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, flash 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 name the advantages and disadvantages of database models hierarchical, network, relational and object-oriented. c. Explain with examples, components of a selective informationbase Management System (DBMS) ironware, computer software, 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. bring forth the basic functional units of a computer system and show how they colligate CPU, input/output devices (peripheral devices). d. Describe the various types of computer memory semi-conductor memory, cache memory, mental picture memory and flash memory. e. Explain operating(a) 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. tailor-made so ftware, special purpose software, general purpose software. i. Viruses, worm. j. Explain with examples the evolution of computer computer programming languages machine language, assembly language, high level language, 4GL and 5GL. g. Explain the concept of software examination unit examination, static seeing, dynamic testing and regression 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. pay back 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 between users and computer systems command driven, board 28 Institute of Chartered Accountants, Ghana Management Information Systems PAPER 1. 4 Management Information System (Contd. ) SYLLABUS CONTENT driven, GUI, user-friendlines s. b. inbred and External design of systems. 2. Information Systems (Contd) Systems Development Life-cycle (SDLC) a.Explain the following phases of the SDLC line 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. Processing Systems Options a. Describe the bear upon 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 principles of facilities management and outsourcing. Controls and security measures of Computer Operations a. Explain the principles of system security and control. b. Explain the under-listed control measures administrative co ntrols Input and output controls Operational controls customary controls Verification and Validation 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 communication theory 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 mechanization a. Explain office automation. b. Explain E-Business c. Explain the following E-Commerce E-Mail Telecommuting E-Banking Telesales moving-picture show 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 information system. The professional accountant as a designer business information systems. The professional accountant as an jurist information systems. 5. Business Strategy and IS/IT Alignmen t 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 witness Management and explain the terms of reference of a throw. 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 project network. f. Construct and run into 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 System s. French, C. A. Data Processing 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. valued 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. betray 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 disposition and interpretation Decision making under risk and uncertainty 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 aggregation and Interpretation a. Collect statistical data using the various ingest methods. b. divide and tabulate data in the form of frequency distribution table. c. p icture 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 fortune. b. Distinguish between equally seeming and mutually exclusive outcomes. c. Explain marginal, joint and conditional probabilities. d. Apply Bayes theorem to problem solving. e. decoy probability trees. f. Distinguish between dependant and mugwump events. g. Explain the laws of probability. h. Calculate and interpret expected value and standard deviation of a discrete random variable. . Use decision tree 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. act matrix algeb ra addition, subtraction, scalar multiplication, matrix algebra. c. work out problems involving matrix inversion. d. dissolve 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 mere(a) Linear reverting Analysis a. Draw scatter diagram. b. make 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 Sp earmans rank(a) 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 elongate and multiplicative models to determine average seasonal worker variations. e. Use time series to forecast. 4. Planning and Control Techniques Network Analysis a. Distinguish between critical path 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 generation for an activity. d. Calculate the expected duration and fluctuation for an activity. e. Determine critical path and project duration. f. Distinguish among and exercise total float, independent float and free float. 34 Institute of Chartered Accountants, Ghana Quantitativ e 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 gear (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), slow replenishment and discounts models. c. Use these models to calculate the optimum quantity and determine range levels and guard duty 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 compression 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 understate 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. project the primal linear programming problem. . get up the dual linear programming problem. c. Solve the linear programming problem (involving two variables) graphically. d. Set the initial 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. Explain limiting factors (scarce resources) and their after part prices. h. Carry out sensitivity analysis on the graphical and simplex solutions.LIST OF testim onial 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 versed Review PAPER 2. 4 Audit and informal Review 1. OBJECTIVES AND LEARNNG OUTCOMES The course is aimed at developing the candidates knowledge and understanding of the scrutinizeed account process from the planning stage through to the reporting stage and the techniques used in the conduct of natural and external analyse. At the end of the course, candidates should be able to 2. xplain the nature , purpose and scope of an scrutinize state and explain the purposes of the regulatory model within which the attenders work is conducted outline the qualification, functions, responsibilities and rights of an canvasor describe the audit procedures required at the planning stage of an audit explain the techniques for collecting and evaluating audit evidence explain the technique s for collecting and evaluating audit evidence explain and apply basic auditing concepts like congenital 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, conception and Scope of an Audit. The Regulatory Framework of Auditing and Professional Considerations Audit Planning. Evidence Gathering Internal controls and military rati ng of Control Risk Internal Audit and Other Assurance Engagements top of Audit and Assurance Concept, process and conduct 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. bear witness the advantages of auditing to stakeholders. d. Explain and distinguish between the following types of audit Internal/External statutory/non-Statutory Financial/Operational Interim/ endless /Final e. Explain the inherent limitations of an audit. f. Explain the concept of expectation gap. a.Describe the nature, purpose and scope of auditing standards and auditing guidelines (International auditing Standards). b. Explain the procedure fo r developing auditing standards and auditing guidelines (International Auditing Standards). c. bear witness the statutory and ethical considerations relating to acceptance and law of continuation of audit assignments. d. Assess the code of professional conduct independence, objectivity, integrity, duty of care, confidentiality and conflict of interest. e. State the qualification of an auditor. f. State persons disqualified for interlocking as an auditor. g. Describe the procedure for appointing and removing an auditor. h. take apart 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 fraud and error. 2. The regulatory example of auditing and Pro fessional 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 walkway through test Weakness test Compliance test Substantive test Vouching Audit risk Audit sampling judgmental and statistical, and sample selection methods Systems base audit Materiality True and fair view Directional and rotational testing Systems and risk based audit. 4. Auditing Planning and military rating 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. mensurate preliminary materiality levels and audit risks. f. Evaluate 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 inbred control in both manual and IT environments, including the overall control environment and Control Procedures preventive, detective and corrective controls inborn 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 mitigate 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 Control Risk (Contd) g. Identify internal controls for an organisation in a given scenario. h. Identify internal control weakn esses in a given scenario. i.Identify, for a specified organisation, the sources of information which will enable a sufficient record to be made 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