Ica Gh Syslabus

Objectives and judge Performance Outcome of apiece part THE comprise OF CHARTERED ACCOUNTANTS (GHANA) Syllabus for ICAG head Examinations ACCRA 2009 attain for of rent depictants, gold coast 1 Proposed Sylabus for ICAG constrictive Examinations Contents Introduction Features and Inovations of the New Scheme Objectives and Expected Performance Outcomes of each Part break dance 1 1. 1 1. 2 1. 3 1. 4 financial chronicle F inframentals line of merchandise solicitude economic science circumspection selective info carcasss better 2 2. 1 2. 2 2. 3 2. decimal Tools in caper analyse and midland re estimation backup and Corpo put Law Principles and pattern of Taxation PART 3 3. 1 3. 2 3. 3 3. 4 monetary neb earth vault of heaven news report Cost and prudence history pecuniary Management PART 4 4. 1 4. 2 4. 3 4. 4 Advanced fiscal Reporting Advanced studyed account and Professional Ethics Corporate strategy and arrangement Advanced Tax Planning and Fis cal Policy revaluation of Qualifying Examinations Syllabus may 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 land of charter comptrollers, gold coast financial write up fundamentalsINTRODUCTION After nearly four mean solar days of organizing inquirys on the underway curriculum of the work of hired Accountants (gold coast), schoolmaster programme, the initial of which was held in May 2005, it is now considered enchant and timely to revise and update it in arrange to bring it in line with trustworthy soil of friendship and to need it more relevant to the current deals of employers and clients. The job of the leased Accountant has scram more sophisticated beca wasting disease of the effects of world(prenominal)isation, bob upments in information engineering science and the complexity of the red-brick line of reasoning nerve.The modern day chartered accountant, for instance, not barely expresses a n opinion on the accuracy and fairness of pecuniary rumors, but alike advises instruction on the viability of investment drifts, tax matters and renders specialised advisory services, and so forth In many cases, he is called upon to serve the nation as a member of a special investigation panel. In pose to coif these functions citeably, he needs to have acquired proficiency in bill hypothesis and practice. The naked syllabus would be examined in May 2010. The new syllabus attempts to meet the dual goals of the scheme through the subject structure and coverage.The 16-subject, 4- aim-structure try start combines subjects which address the hard-nosed skills requirements of the potential master copy accountants with others which are principal(prenominal)ly of the hypothetical or patternual nature and therefore serves as a reasoned grounding for the Professional Accountant. SUMMARY OF NEW STRUCTURE Exhibit 1 Chart of New Examination Scheme 1. 1 1. 2 1. 3 1. 4 Financial A ccounting Fundamentals communication channel Management economic science MIS &038 care Systems 3. 1 3. 2 3. 3 3. 4 Financial Reporting Public Sector Accounting Cost and Management Accounting Financial Management PART 1PART 3 PART 2 PART 4 2. 1 2. 2 2. 3 2. 4 Quantitative Tools in Business size up and upcountry 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 bring of hired Accountants, gold coast 1 Proposed Sylabus for ICAG Qualifying Examinations FEATURES AND INNOVATIONS OF THE NEW SCHEME This new scheme was real on a well(p)-established context for a study and swap. The future(a) new features and innovations stand out. A four-part structure of 16 roots in total. league and integration of some courses. This is meant to encourage an integrative accomplishment approach and to minimize the negative of the tunnel vision subject-by-subject training. The combination of related courses is therefore meant to prevalentize more meaning and synergies. For example, it is not uncommon to find very standardised questions and requirements on Budgeting and Variance Analysis in both the old i. e. Current Management Accounting and Cost Accounting musical compositions. Clearly go downd and achiev adapted learning outcomes from Part to Part.This should partly resolve the troubles associated with the placement of partly qualified nominees in industry and on other programmes. A more rational, easy-to-fit and implement, graduate renewal and exemption scheme has been incorporated. It is hoped that this leave alone motivate higher grade candidate entrantsdegree and diploma holders to acquire fitted accountancy competence and speed up up their eventual professional qualification. All students have ten (10) years from the date of registration within which to complete all the ex aminations of the be of Chartered Accountants (gold coast).After the ten (10) years period any student who has not unde cross-filed the examinations of the Institute go forth not be eligible to take the examinations. recrudesce focus on worry financial strategy and reporting or confabulation skills, thereby enabling candidates to appreciate the boilersuit realities of the transmission line environment and to use advisory skills more usefully. Introduction of some more relevant programmes and get hold of titles the New Business Strategy is more about focal point, make accountants strategical closings makers. Increased emphasis on pipeline advisory skills at the final exam Part 4. 2 Institute of Chartered Accountants, gold coast Financial Accounting Fundamentals OBJECTIVES AND EXPECTED PERFORMANCE OUTCOME OF EACH PART Each of the 4 Parts of this examination scheme has a handsome acc apply and expected performance outcome as stated below. Additionally, within each su bject 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 basic/foundation papers. Provision of basic principles and acquaintance require to understand the Business Environment. PART 2 quaternity (4) traditional core papers. Test of technical expertise required of a modern accountant. Acquisition of background knowledge and skills necessary for in force(p) performance at middle management level. PART 3 Four (4) core papers. speech pattern on barter cases, strategy and advisory skills. PART 4 Four (4) core papers. Emphasis on business cases, strategy and advisory skills. final result and Interpretation The pass mark is 50%. The results impart be create as pass or fail.A candidate who fails has the option of rewriting this paper in subsequent examinations till his/her candidature expires. Institute of Chartered Accoun tants, gold coast 3 Proposed Sylabus for ICAG Qualifying Examinations PROFESSIONAL PART 1 typography 1. 1 Financial Accounting Fundamentals 1. OBJECTIVES AND LEARNING OUTCOMES This paper is material bodyed to dislodge candidates acquire and appreciate fundamental invoice knowledge in musical arrangements. At the end of the course, the candidate should be able to Demonstrate sound knowledge and concord of accounting principles, concepts and their application in the preparation of financial pedagogys.To watch that students have a sound understanding of the techniques of double entry accounting and can obligate its principles in recording transactions, adjusting financial records and preparing non-complex financial argumentations. subject to get a line and correct omissions and errors in accounting records and financial statements. Able to line the components of financial statements and prepare and present non-complex accounts for sole traders, fusions and hold compani es. Specify wherefore an entity maintains financial records and prepares financial statements. make the sources of information for the preparation of accounting records and financial statements. scan and account for transactions and events resulting in income, expenses, assets, liabilities and equity in accordance with the appropriate cornerstone of accounting and the rightfulnesss, regulations and accounting standards applicable to the financial statements. Prepare a trial counterpoise from accounting records and chance upon the uses of the trial balance. Prepare accounts and financial statements from incomplete records. deduct the several(predicate) bases of preparing financial statements. practise some planetary financial reporting standards. dress the qualitative characteristics of financial information and the fundamental bases of accounting FORM OF test The examination leave be a trinity-hour paper consisting of quintette compulsory questions. (All the pentad qu estions must be answered. ) 3. course of instruction trunk of weights power power grid This grid exposes the congress weightings of topics within this subject and should make the intercourse content time spent on each. The marks uncommitted in the assessment will equate to the weightings below. 4 Institute of Chartered Accountants, Ghana 2. Financial Accounting FundamentalsHowever, there might be frail variations in some instances as they serve as a channel only. broadcast COVERAGE Conceptual mannequin of Accounting, Maintaining Financial Records Principles of Double Entry &038 Books of patriarchal Entry Adjustments to Accounting Records and Financial landments Accounting for non-current Assets (tangibles and intangibles) provision of Financial republicments including notes Flow Preparation of Financial Statements for Non- avail making Organisations, Preparation of Financial Statements from unelaborated Records Accounting for specialised transactions I ntroduction to financial statements analysis primitive exercising weight (%) 0 15 20 20 15 10 100 Institute of Chartered Accountants, Ghana 5 Proposed Sylabus for ICAG Qualifying Examinations musical theme 1. 1 Financial Accounting Fundamentals of import paper SYLABUS issue (Contd. ) 1. 1 Conceptual Framework of Accounting a. delineate and apologise the kitchen stove of accounting, financial accounting, book-keeping, cost and management accounting, and their similarities and differences. b. inform the needs of external and privileged users of accounting information. c. make forms of Business Entity and excuse the meaning of entity. d. explicate the categories of business organisations. (i) furbish up Proprietorships Their characteristics, benefits and limitations. (ii) Partnerships Their characteristics, benefits and limitations. (iii) Limited Liability Companies Their characteristics, benefits and limitations e. justify the differences mingled with Partnerships and limited liability companies. f. relieve the purpose of financial statements by 1AS 1. g. rationalize the accounting assumptions and concepts. h. chalk out the components of financial statements. i. come upon the main users of financial information and their information needs. . secernate and formulate accounting concepts and conventions. k. Outline the qualitative characteristics of financial statements. l. Outline the elements of financial statements and the groundwork of their recognition and their measurements. m. pardon Accounting Standards their purpose, standards setting sour, IASB membership. a. Specify why an entity maintains financial records and prepares financial statements. b. place 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 land of accounting and the legal philos ophys, regulations and accounting standards applicable to the financial statements. d. Record and account for changes in the takeership structure and ownership interests in an entity. 1. 2 Maintaining Financial Records 6 Institute of Chartered Accountants, Ghana Financial Accounting Fundamentals musical composition 1. 1 Financial Accounting Fundamentals principal(prenominal) TOPIC SYLABUS gist (Contd. ) 1. 3 Principles of Double Entry and Books of Prime Entry a. understand and apply the accounting equation. b. Identify the elements of financial statements Types, definitions, bloods and distinctions. The nature of transactions. c. Outline the contents and purpose of diverse types of business documentation, including quotation, sales order, purchase order, goods received note, goods dispatched note, invoice, statement, credit note, debit note, remittal advice, receipt. d. Identify the main types of script accounts and books of prime entry (cash books, the sales day book and the sales ledger, 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 business transactions e. g. sales, purchases, payments, receipts. g. Identify correct journals from faden narrative. h. Illustrate how to balance and penny-pinching 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) rationalize how these can be corrected. (ii) apologise the purpose of suspense accounts. iii) condone the uses of journals to correct errors in draft financial statements. b. inform the accounting for the side by side(p) 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 trade creditors/ payables. (vii) aliment and contingencies. (viii) Returns inwards and outwards. (ix) Discount received and discount allowed. (x) Capital and revenue expenditures. Institute of Chartered Accountants, Ghana 7Proposed Sylabus for ICAG Qualifying Examinations make-up 1. 1 Financial Accounting Fundamentals principal(prenominal) TOPIC course of depicted object cloy (Contd. ) xii. Bad debts, victuals for doubtful debts, provisions for discounts on debtors. c. Prepare Bank Reconciliation Statement. 2. 2 Accountingfor Non-current Assets a. Describe the accounting treatment for property, plant and equipment in accordance with IAS 16. b. beg off the methods and policies of dispraise (limited to straight line, reducing balance and revaluation methods). c. rationalise the reasons for depreciation and accounting for provision for depreciation. . Account for disposal of property, plant and equipment exploitation ledger accounts. e. Account for recognition of Intangible assets in accordance with IAS 38. f. relieve the differences surrounded by depreciation and amortization. a. Prepare and present income statement and balance sheet of a sole trader i Manufacturing Account ii Trading Account iii Profit and Loss Account iv Balance rag week a. Describe the purpose for forming a partnership. b. Outline the provisions in the interconnected Private partnership achievement 1962 (Act 152) in relation to the preparation of partnership accounts. c.Prepare final accounts of partnership Trading, hit and blemish account Profit and loss appropriation account Partners capital and current accounts Balance sheet d. rationalize the procedure for admission of a partner. e. inform the methods of valuing goodwill. f. pardon revaluation in relation to an admission of a new partner, change in the profit manduction ratio, or a retirement/death. 3. 2. Preparation of Financial Statements of a Partnership faithful 3. 1 Preparation of Financial Statements of a fillet of sole Trader 8 Institute of Chartered Accountants, Ghana Financial Accounting Fundamentals piece of music 1. 1 Financial Accounting Fundamentals MAIN TOPIC broadcast field of study (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 company a. commemorate mingled with. Ordinary handle and Preference Share. Authorised Capital and Stated Capital. Income Surplus and Capital Surplus. b. Describe the nature and types of debentures. c. pardon the nature and purpose of final accounts of a limited liability company. . Draft company final accounts for internal use. e. furbish up cash flow and pardon cash flow statement. f. Describe the usefulness of cash flow statement. g. Prepare a simple cash flow statement in accord ance 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 mingled with 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. develop joint venture. Specialised b. signalise between joint venture and partnership. Transactions Joint Venture c. develop how to make entries in the accounts of a joint venture. Investments d. beg off investments accounts, and how they are Royalties use. Branch Institute of Chartered Accountants, Ghana 9 Proposed Sylabus for ICAG Qualifying Examinat ions stem 1. Financal Accounting Fundamentals MAIN TOPIC program CONTENT (Contd. ) e. Record transactions in investment accounts. f. exempt royalties, negligible rent and light workings. 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. reckon basic financial ratios from inclined income statement and/or balance sheet Profitability Ratios Liquidity (Short term solvency) Ratios power train/Leverage Ratios Activity/Efficiency Ratios Investment Ratios b. let off the meaning and uses of the above ratios. c. Outline the limitations of financial ratios as tool for performance measurement. LIST OF RECOMMENDED TEXT 1. 2. 3. ICAG subscribe Text. Wood F. Business Accounting 1 Financial Times. Millichamp, R. A. (1992) Foundation Accounting DPP. RELEVANT LEGISLATIONS 1. 2. Companies Code, 1963, Act 179. Incorporate d Private Partnership Act 1962, Act 152. 10 Institute of Chartered Accountants, Ghana Business Management reputation 1. 2 Business Management 1.OBJECTVES AND LEARNING OUTCOMES At the end of the course, candidates should be able to explicate the objectives of business and the functions of management let off 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 imbibe the various functional areas of an organisation and how they relate to one another secern the environment within which businesses operate appraise the impact of economic, social, political, legal, technological and global changes in the environment on management decisions. . FORM OF EXAMINATION The examination will be a three-hour paper of seven (7) questions. Candidates will be required to answer any five (5) questions. 3. electronic information performanceing system program WEIG HTING grid This grid intends the relative weightings of topics within this subject and should turn over the relative study time spent on each. The marks gettable 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 reporting Introduction to Management Planning and Decision Making Organizing, Motivation, Leadership, declareling communication Groups and Team Work Human Resource Management merchandising Management Operations Management ingrained 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. ) political program CONTENT Introduction to Management a. justify the objectives of business organisations. b. apologize the four (4) functions of management and state the other major elements in the management process. c. apologise the determinations of management. d. Explain the types of skills necessary by managers. e. Describe how managerial jobs differ according to the levels and areas of province. f. Explain the evolution of management theories. g. Explain how socio-cultural, legal, economic, political and technological and global changes fix businesses. h. Explain the concept of stakeholders and distinguish between main(a) and secondary stakeholders. i. Explain the nature of the power and interests of takeholders. j. Explain the social debt instrument of businesses. Planning and Decision Making a. Define and antitheticaliate between the side by side(p) key terminologies Planning Forecasting Objective setting Policies Programmes Schedules Procedures Budgeting b. State and give away types of plans. c. Categorise the types of planning 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 apportion appro priate solution(s) to organisational problems. g.Evaluate 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. ) broadcast CONTENT Organising a. Describe the elements that make up organisational structure and its related social units. b. invent 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, rudimentaryization vs. ecentralisation, delegation, line and mental faculty positions. e. lose it delegation, authority, responsibility and responsibility and their impact on motivation and organisational nuance. f. Explain, analyse and evaluate the concept of coordination as an integral part of management. g. stigmatise between types and conditions fo r business and organisational integration. h. Identify and state the characteristics and relationships associated with planning, organising, leading and pull stringsling in organisations. i. Appraise the persona and importance of co-ordination. a.Define leadership. 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 contingency theory Situational leadership Path-goal theory. Contemporary 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. ) broadcast CONTENT Motivation . Explain the theories of motivation. b. Describe the division of behavioural verbalism of motivation. c. Evaluate the limitations to motivation theories. d. Describe how teamwork and consul tative management are used as motivational tools. e. Outline the linkage between motivation and output. a. Explain the nature and importance of organizational discover. b. Describe the control process. c. plow 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. strike between organisational communication channels and formulate 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 directing organisational activities. . Explain how groups are fo rmed 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. dictationling 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 separate 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. Expl ain compensation remainss and the significance of indirect compensation. g. Explain the concept of organisational health and safety and its benefits. . Distinguish between duties of employers and employees responsibilities. Marketing Management a. Explain the marketing 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. concept and implement a pricing strategy. . Explain customer care strategies as a means of achieving free-enterprise(a) advantage and their relationship with total select 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 drudgery process Job output signal Batch production Mass/continuous/flow production b. Explain and compare the following methods of plant layout Process layout Product layout Fixed-position layout. c.Discuss the role of trading operations management in organizations. d. Explain the concept of flavour and total quality management. e. Explain how the quality of products and services can be assessed, measured and improved. RECOMMENDED/ type 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 supposition and Practice. DP Publications. Marfo-Yiadom, E. Principles of Management, Woeli, Publishing Services. 16 Institute of Chartered Accountants, Ghanapolitical economy PAPER 1. 3 economics 1. OBJECTIVES AND LEARNING OUTC OMES On completion with this paper, candidates should be able to explain the nature and scope of economics define and explain the fundamental problems of satisfying wants from incomparable resources with alternative uses or describe resources allocation in relation to competing wants explain and spree illustrations of the main techniques of economic analysis as a basis for business decisions identify how macroeconomic variable quantitys and governing 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 consist of two (2) sections, A and B. constituent A will consist of four (4) questions on microeconomics and Section B will consist of three (3) questions on m acroeconomics.Candidates are required to answer three (3) questions from Section A and two (2) questions from Section B. 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. Institute of Chartered Accountants, Ghana 17 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 3 Economics SYLLABUS COVERAGE (Contd. ) WEIGHTING (%)Basic Economics Concepts and Systems footing and measuring determination cinch concepts Theory of consumer behaviour Theory of production Theories of costs and revenues Theory of the Firm National income accounting Money and banking Public Finance Inter home(a) 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 persona A M icroeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT Basic Economic Concepts and System a. Define and explain economics in relation to production, distribution. b. Consumption of goods and services. c.Explain the concepts of scarcity, choice and scale of preference. d. Explain the concept of opportunity cost in relation to individuals, firms and government. e. Identify the main characteristics of the various economic systems and explain their merits and demerits. f. Discuss the role of economics in business decision making. a. Define demand and provision and identify the types. b. Identify and explain the determinants of total demanded and supplied. c. Explain individual and market demand and supplying utilise 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 suppl y. 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 change in quantity supplied. i. Explain the concepts of equilibrium price and quantity via demand and supply with the attend of tables and diagrams. j. restore equilibrium price(s) and quantity(ies) mathematically for a integrity and a two-commodity model. . Define and explain maximum (ceiling) and minimum (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 . opine and read coefficients of own price (point/arc), cross and income elasticities of demand. c. Identify and explain the determinants of price snapshot 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 usefulness. b. Define and graph total, modal(a) and fringy utilities and portend intermediate and bare(a) utilities from total utility. . State and explain the law of diminishing marginal utility. d. single-valued function the law of diminishing marginal utility to explain equilibrium of the consumer (one commodity, two or more commodities) and derive the demand curve. e. practice the equilibrium conditions for two commodities to determine the equilibrium quantities consumed via tables. f. use the law of diminishing margina l utility to resolve the paradox of value. g. Explain central and income effects and use them to show the curvature of demand curves for commonplace, inferior and Giffen goods. a.Identify, define and explain the factors of production. b. Explain fixed and variable inputs in relation to short and long head 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 in writing(p)ly. 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 brave out behaviour of output (returns to scale). a. Distinguish between Private and soci al costs. Implicit and explicit costs. b. Define, prorogue, represent graphically and explain the inter-relationship of short run costs (fixed and variables costs total, average and marginal costs). c. employ 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 normal and economic profits. b. Distinguish between accountants and economists profits. . Distinguish between economic pr ofit 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, noncompetitive 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 utterly 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 agate line and flow concepts of measurement. b. Define case 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 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 income, tax, disposable income and savings. j. Define and explain combine 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 commercial banks. c. Explain credit creation by comme rcial banks. d. Identify and explain the instruments of monetary policy. e. Explain Monetary Policy Formulation through the Monetary Policy deputation (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 exchange and explain its functions and importance. h. Define and explain demand and supply of money and the three motives of retention 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 budget, deficit budget and prodigality 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 (p rogressive, 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 increase in national debt. j. Identify and explain ways of managing the national debt (e. g. debt swap, Highly Indebted Poor Countries (HIPC). Initiative, conversion of national debts into bonds etc. ) a. Give reasons for international 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 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 gentility 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 Pomayie, P.Macroeconomics, An Introductory Text 24 Institute of Chartered Accountants, Ghana Management discipline Systems PAPER 1. 4 Management learning System 1. OBJECTIVES AND LEARNING OUTCOMES This paper is concerned with the strategic importance of information system s to organisations in the modern business environment. It recognises that although may organisations employ development Technology (IT) Professionals, Chartered Accountants now have a key role to play in the provision of information that adds significant value to the ever-increasing volume of information polished for management decision making.At the end of the course, candidates should be able to phrase an understanding of general information system concepts and 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 project management techniques and develop project proposals. 2. FORM OF EXAMINATION The examination will be a three-hour paper of six (7) questions made 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 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. Institute of Chartered Accountants, Ghana 25 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. Management culture System SYLLABUS COVERAGE Systems Theory and Practice Information Systems ready reckoners in Communication Information Technology and the Professional Accountant Business Strategy and IS/IT fusion disgorge 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 percipient 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 the need for system control and feedback. d. Explain the following system control elements Standard Comparators Sensor Effectors e. Represent 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 industriousness 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 terms, calculating machine 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 magnetised tape, magnetic disc, diskette, CD-ROM, DVD, Zip disc, flash disk, etc. Database Design and Implementation a. Define database and explain the importance of database s in the operations of an organisation. . Describe the types and enumerate the advantages and disadvantages of database models hierarchical, network, relational and object-oriented. c. Explain with examples, components of a Database Management System (DBMS) hardware, software, people (users, designers, administrators, procedures, data/information). d. Apply database tools to real demeanor 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 ironware 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. cast off 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. Explain 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 evolution of computer programming languages machine language, group language, high level language, 4GL and 5GL. g. Explain the concept of software interrogation unit testing, static testing, 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.Re creation of processes in computer Systems a. conduct diagrams to represent c omputer processes using the following tools Programme flow chart 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, posting 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 acknowledgement 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 merged methodology to system development. Processing Systems Options a. Describe the processing options and their characteristics (batch, real-time, demand, online, distributed, ce ntralized and decentralize 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 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 working(a) controls General controls Verification and Validation c. Explain the principles of hardware/software alimony (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. Expla in the following computer network types wide-eyed area Metropolitan area Local area b. Explain computer network topologies and protocols. c. Internet, Intranet, Extranet. Office Automation a. Explain office 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 In formation 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 evaluator 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 project 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 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 &038 2 M &038 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 shoul d 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 try and uncertainty Forecasting techniques Planning and control techniques optimization an d 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 stack upion and Interpretation a. Collect statistical data using the various sampling methods. b. Classify and tabulate data in the form of frequency distribution table. c. largess 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 probability. b. Distinguish between equally apparent and inversely exclusive outcomes. c. Explain marginal, joint and conditional probabilities. d. Apply Bayes theorem to problem solving. e. Draw pr obability trees. f. Distinguish between dependent and self-governing 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. Solve 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 Simple Linear Regression Analysis a. Draw scatter diagram. b. Find the equation of the line of best fit usi ng 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 coefficient Theory a. Distinguish between regression and correlation. b. Explain negative zipper and positive correlation. c.Distinguish between product-moment and Spearmans rank 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 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 times for an activity. d. Calculate the expected duration and variance for an activity. e. Determine critical 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 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), gradual replenishment and discounts models. c. Use these models to calculate the optimum quantity and determine reorder levels and safety stocks. d. Use the discrete probability to calcula te 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 chalkstone a. Differentiate polynomial functions (first and second derivatives only). b. Determine the bit 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. articulate the primal linear programming problem. . Formulate 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, Gh ana 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 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 developing the candidates knowledge and understanding of the canvassed account process from the planning stage through to the reporting stage and the techniques used in the conduct of internal and external canvas. 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 regulative framework within which the auditors work is conducted outline the qualification, functions, responsibilities and rights of an auditor describe the audit procedures required at the planning stage of an audit explain the techniques for lay in 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 decoy 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 ti me 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, mathematical function and Scope of an Audit. The Regulatory Framework of Auditing and Professional Considerations Audit Planning. Evidence Gathering Internal controls and military rating of Control Risk Internal Audit and Other Assurance Engagements Conduct of Audit and Assurance Concept, process and Need 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. essay the advantages of auditing to stakeholders. d. Explain and distinguish between the following types of audit Internal/External Statutory/non-Statutory Financial/ available Interim/Continuous /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 for developing auditing standards and auditing guidelines (International Auditing Standards). c. visit the statutory and ethical considerations relating to acceptance and continuance of audit assignments. d. Assess the ordinance 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 appointment as an auditor. g. Describe the procedure for appointing and removing an auditor. h. demonstrate 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 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 impuissance test Compliance test Substantive test Vouching Audit risk Audit sampling judgmental 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 valuation a. b. c. d. Expla in 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 prelim 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 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. image 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 weaknesses 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