15th March, 2014
Important Announcement
Attention: Intermediate (IPC) and Final Course students
Applicability of notified sections of the Companies Act, 2013 for
November 2014, Examinations
As students may be aware that the Companies Act, 2013 has been
notified in the Official Gazette on 30th August, 2013 stating that different
dates may be appointed for enforcement of different provisions of this Act
through notification of the Central Government in this regard.
Having regard to the above development, the Council at its 330th meeting
revised the syllabus in a limited manner in the following papers of
Intermediate (IPC) and Final Course(s) as per Annexure I (shown in Bold
cum Italics).
Intermediate (IPC) Course Final Course
Paper No. 2- Business Laws, Ethics Paper No. 4- Corporate and Allied
and Communication Laws
Paper No. 6 : Auditing and Paper No.3 : Advanced Auditing
Assurance and Professional Ethics
The Central Government has notified 98 sections of the
Companies Act, 2013 on 12th September, 2013. Accordingly,
those 98 notified sections are applicable for November 2014
examinations corresponding to their bifurcation into the
Intermediate (IPC) and Final Course(s), i.e. from these 98
sections, 53 sections have been included in the Paper 2,
Business Laws, Ethics and Communication, Intermediate (IPC)
Course, and 45 have been included in the Paper- 4, Corporate
and Allied Laws, Final Course.
For reference and benefit of our students, the Board of Studies has
released the following publications relevant for November, 2014
examinations for Paper 2, Business Laws, Ethics and Communication,
Intermediate (IPC) Course, and Paper- 4, Corporate and Allied Laws, Final
Course:
Publication Links for reference
Supplementary study material for http://220.227.161.86/32794s
Intermediate (IPC) Course sp-p2blec-ipcc.pdf
Supplementary study material for Final http://220.227.161.86/32793s
Course sp-p4final.pdf
Students may also note that the Study Material and Practice Manual of
Corporate and Allied Laws, Final Course released in January, 2014 has
been prepared keeping in view the amendments brought in by the
Companies Act, 2013.
Director, Board of Studies
Annexure-I
Intermediate (IPC) Course
SYLLABUS
PAPER 2 : BUSINESS LAWS, ETHICS AND COMMUNICATION
(One paper Three hours 100 Marks)
Level of Knowledge: Working knowledge
PART I BUSINESS LAWS (60 MARKS)
Objective:
To test working knowledge of business laws and company law and their practical application in
commercial situations.
Contents
Business Laws (30 Marks)
1. The Indian Contract Act, 1872
2. The Negotiable Instruments Act, 1881
3. The Payment of Bonus Act, 1965
4. The Employees' Provident Fund and Miscellaneous Provisions Act, 1952
5. The Payment of Gratuity Act, 1972.
Company Law (30 Marks)
The Companies Act, 1956 Sections 1 to 197
(a) Preliminary
(b) Board of Company Law Administration National Company Law Tribunal; Appellate
Tribunal
(c) Incorporation of Company and Matters Incidental thereto
(d) Prospectus and Allotment, and other matters relating to use of Shares or Debentures
(e) Share Capital and Debentures
(f) Registration of Charges
(g) Management and Administration General Provisions Registered office and name,
Restrictions on commencement of business, Registers of members and debentures
holders, Foreign registers of members or debenture holders, Annual returns, General
provisions regarding registers and returns, Meetings and proceedings.
(i) Company Law in a computerized Environment E-filing.
Note: If any provision of the Companies Act, 2013 comes into force in place of an
existing provision under the Companies Act, 1956 or otherwise by way of new
provision, the syllabus would accordingly include the corresponding or new provisions
of the Companies Act, 2013, as the case may be.
Part II : ETHICS (20 Marks)
Objective:
To have an understanding of ethical issues in business.
Contents:
1. Introduction to Business Ethics
The nature, purpose of ethics and morals for organizational interests; Ethics and
Conflicts of Interests; Ethical and Social Implications of business policies and decisions;
Corporate Social Responsibility; Ethical issues in Corporate Governance.
2. Environment issues
Protecting the Natural Environment Prevention of Pollution and Depletion of Natural
Resources; Conservation of Natural Resources.
3. Ethics in Workplace
Individual in the organisation, discrimination, harassment, gender equality.
4. Ethics in Marketing and Consumer Protection
Healthy competition and protecting consumer's interest.
5. Ethics in Accounting and Finance
Importance, issues and common problems.
Part III COMMUNICATION (20 Marks)
Objective:
To nurture and develop the communication and behavioural skills relating to business
Contents:
1. Elements of Communication
(a) Forms of Communication: Formal and Informal, Interdepartmental, Verbal and non-
verbal; Active listening and critical thinking
(b) Presentation skills including conducting meeting, press conference
(c) Planning and Composing Business messages
(d) Communication channels
(e) Communicating Corporate culture, change, innovative spirits
(f) Communication breakdowns
(g) Communication ethics
(h) Groups dynamics; handling group conflicts, consensus building; influencing and
persuasion skills; Negotiating and bargaining
(i) Emotional intelligence - Emotional Quotient
(j) Soft skills personality traits; Interpersonal skills ; leadership
2. Communication in Business Environment
(a) Business Meetings Notice, Agenda, Minutes, Chairperson's speech
(b) Press releases
(c) Corporate announcements by stock exchanges
(d) Reporting of proceedings of a meeting
3. Basic understanding of legal deeds and documents
(a) Partnership deed
(b) Power of Attorney
(c) Lease deed
(d) Affidavit
(e) Indemnity bond
(f) Gift deed
(g) Memorandum and articles of association of a company
(h) Annual Report of a company
SYLLABUS
PAPER 6 : AUDITING AND ASSURANCE
(One Paper- Three hours -100 Marks)
Level of knowledge: Working Knowledge
Objective:`
To understand objective and concept of auditing and gain working knowledge of generally
accepted auditing procedures and of techniques and skills needed to apply them in audit and
attestation engagements.
Contents:
1. Auditing Concepts Nature and limitations of Auditing, Basic Principles governing
an audit, Ethical principles and concept of Auditor's Independence, Relationship of auditing
with other disciplines.
2. Standards on Auditing and Guidance Notes Overview, Standard-setting
process, Role of International Auditing and Assurance Standards Board, Standards on
Auditing issued by the ICAI; Guidance Note(s) on Audit of Fixed Assets, Audit of
Inventories, Audit of Investments, Audit of Debtors, Loans and Advances, Audit of Cash and
Bank Balances, Audit of Miscellaneous Expenditure, Audit of Liabilities, Audit of Revenue,
Audit of Expenses and provision for proposed dividends.
3. Auditing engagement Audit planning, Audit programme, Control of quality of audit
work Delegation and supervision of audit work.
4. Documentation Audit working papers, Audit files: Permanent and current audit
files, Ownership and custody of working papers.
5. Audit evidence Audit procedures for obtaining evidence, Sources of evidence,
Reliability of audit evidence, Methods of obtaining audit evidence Physical verification,
Documentation, Direct confirmation, Re-computation, Analytical review techniques,
Representation by management, Obtaining certificate.
6. Internal Control Elements of internal control, Review and documentation,
Evaluation of internal control system, Internal control questionnaire, Internal control check list,
Tests of control, Application of concept of materiality and audit risk, Concept of internal audit.
7. Internal Control and Computerized Environment, Approaches to Auditing in
Computerised Environment.
8. Auditing Sampling Types of sampling, Test checking, Techniques of test checks.
9. Analytical review procedures .
10. Audit of payments General considerations, Wages, Capital expenditure, Other
payments and expenses, Petty cash payments, Bank payments, Bank reconciliation.
11. Audit of receipts General considerations, Cash sales, Receipts from debtors,
Other Receipts.
12. Audit of Purchases Vouching cash and credit purchases, Forward purchases,
Purchase returns, Allowance received from suppliers.
13. Audit of Sales Vouching of cash and credit sales, Goods on consignment, Sale on
approval basis, Sale under hire-purchase agreement, Returnable containers, Various types of
allowances given to customers, Sale returns.
14. Audit of suppliers' ledger and the debtors' ledger Self-balancing and the
sectional balancing system, Total or control accounts, Confirmatory statements from credit
customers and suppliers, Provision for bad and doubtful debts, Writing off of bad debts.
15. Audit of impersonal ledger Capital expenditure, deferred revenue expenditure
and revenue expenditure, Outstanding expenses and income, Repairs and renewals,
Distinction between reserves and provisions, Implications of change in the basis of
accounting.
16. Audit of assets and liabilities.
17. Company Audit Audit of Shares, Qualifications and Disqualifications of Auditors,
Appointment of auditors, Removal of auditors, Powers and duties of auditors, Branch audit ,
Joint audit , Special audit, Reporting requirements under the Companies Act, 1956.
18. Audit Report Qualifications, Disclaimers, Adverse opinion, Disclosures, Reports
and certificates.
19. Special points in audit of different types of undertakings, i.e., Educational institutions,
Hotels, Clubs, Hospitals, Hire-purchase and leasing companies (excluding banks, electricity
companies, cooperative societies, and insurance companies).
20. Features and basic principles of government audit, Local bodies and not-for-
profit organizations, Comptroller and Auditor General and its constitutional role.
Note: If any provision of the Companies Act, 2013 comes into force in place of an
existing provision under the Companies Act, 1956 or otherwise by way of new
provision, the syllabus would accordingly include the corresponding or new
provisions of the Companies Act, 2013, as the case may be.
Final Course
SYLLABUS
PAPER 4: CORPORATE AND ALLIED LAWS
(One paper - Three hours - 100 marks)
SECTION A : COMPANY LAW (70 MARKS)
Level of Knowledge: Advanced knowledge
Objective:
To be able to analyze and apply various provisions of the Companies Act in
practical situations
Contents:
1. The Companies Act, 1956, Rules and Regulations thereunder in its entirety with
specific reference to
(a) Accounts and audit
(b) Dividend
(c) Directors - powers, managerial remuneration
(d) Meetings, powers of the Board and related party transactions
(e) Inspection and Investigation
(f) Compromises, Arrangements and Reconstructions
(g) Prevention of Oppression and Mismanagement
(h) Revival and Rehabilitation of Sick Industrial Companies
(i) Corporate Winding up and Dissolution
(j) Producer Companies
(k) Companies incorporated outside India
(l) Offences and Penalties
(m) E-governance
2. Corporate Secretarial PracticeDrafting of Resolution, Minutes, Notices and Reports
SECTION B : ALLIED LAWS (30 MARKS)
Objective:
To develop ability to analyse the requirements of laws stated in the Section.
Contents:
3. An overview of the following laws
(a) The Securities and Exchange Board of India Act, 1992, Rules, Regulations and
Guidelines issued thereunder.
(b) Securities Contracts (Regulation) Act, 1956
(c) The Foreign Exchange Management Act, 1999
(d) The Competition Act, 2002
(e) The Banking Regulation Act, 1949, The Insurance Act, 1938. The Insurance
Regulatory and Development Authority Act, 1999. The Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
(f) The Prevention of Money Laundering Act, 2002
4. Interpretation of Statutes, Deeds and Documents.
Note: If any provision of the Companies Act, 2013 comes into force in place of an
existing provision under the Companies Act, 1956 or otherwise by way of new
provision, the syllabus would accordingly include the corresponding or new
provisions of the Companies Act, 2013, as the case may be.
SYLLABUS
PAPER 3: ADVANCED AUDITING AND PROFESSIONAL ETHICS
(One Paper- Three hours - 100 marks)
Level of Knowledge: Advanced knowledge
Objectives:
(a) To gain expert knowledge of current auditing practices and procedures and apply them in
auditing engagements,
(b) To develop ability to solve cases relating to audit engagements.
Contents:
1. Auditing Standards, Statements and Guidance Notes
Auditing and Assurance Standards (AASs); Statements and Guidance Notes on Auditing
issued by the ICAI; Significant differences between Auditing and Assurance Standards
and International Standards on Auditing.
2. Audit strategy, planning and programming
Planning the flow of audit work; audit strategy, planning programme and importance of
supervision: review of audit notes and working papers; drafting of reports; principal's
ultimate responsibility; extent of delegation; control over quality of audit work; reliance on
the work of other auditor, internal auditor or an expert.
3. Risk Assessment and Internal Control
Evaluation of internal control procedures; techniques including questionnaire, flowchart;
internal audit and external audit, coordination between the two.
4. Audit under computerized information system (CIS) environment
Special aspects of CIS Audit Environment, need for review of internal control especially
procedure controls and facility controls. Approach to audit in CIS Environment, use of
computers for internal and management audit purposes: audit tools, test packs,
computerized audit programmes; Special Aspects in Audit of E-Commerce Transaction.
5. Special audit techniques
(a) Selective verification; statistical sampling: Special audit procedures; physical
verification of assets, direct confirmation of debtors and creditors
(b) Analytical review procedures
(c) Risk-based auditing.
6. Audit of limited companies
Statutory requirements under the Companies Act 1956; Audit of branches: joint audits;
Dividends and divisible profits % financial, legal, and policy considerations.
7. Rights, duties, and liabilities of auditors; third party liability.
8. Audit reports; Qualifications, notes on accounts, distinction between notes and
qualifications, detailed observations by the statutory auditor to the management vis-a-vis
obligations of reporting to the members.
9. Audit Committee and Corporate Governance
10. Audit of Consolidated Financial Statements, Audit Reports and Certificates for Special
Purpose engagements; Certificates under the Payment of Bonus Act, import/export
control authorities, etc.; Specific services to non-audit clients; Certificate on Corporate
Governance.
11. Special features of audit of banks, insurance companies, co-operative societies and non-
banking financial companies.
12. Audit under Fiscal Laws, viz, Direct and Indirect Tax Laws.
13. Cost audit
14. Special audit assignments like audit of bank borrowers, audit of stock and commodity
exchange intermediaries and depositories; inspection of special entities like banks,
financial institutions, mutual funds, stock brokers.
15. Special features in audit of public sector companies. Directions of Comptroller and
Auditor General of India under Section 619; Concepts of propriety and efficiency audit.
16. Internal audit, management and operational audit Nature and purpose, organisation,
audit programme, behavioural problems; Internal Audit Standards issued by the ICAI;
Specific areas of management and operational audit involving review of internal control,
purchasing operations, manufacturing operations, selling and distribution, personnel
policies, systems and procedures. Aspects relating to concurrent audit.
17. Investigation and Due Diligence.
18. Concept of peer review
19. Salient features of Sarbanes Oxley Act, 2002 with special reference to reporting on
internal control.
20. Professional Ethics
Code of Ethics with special reference to the relevant provisions of The Chartered
Accountants Act, 1949 and the Regulations thereunder.
Note: If any provision of the Companies Act, 2013 comes into force in place of an
existing provision under the Companies Act, 1956 or otherwise by way of new
provision, the syllabus would accordingly include the corresponding or new
provisions of the Companies Act, 2013, as the case may be.
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