CWA ICWA Intermediate : Group I - Commercial and Industrial Laws and Auditing

ICWAICWA ICWA (2008)InterSyllabus and Books • Group I - Commercial and Industrial Laws and Auditing

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

Objective . . .

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

A. Commercial & Industrial Law ( 50 Marks)

1.Laws of Contracts15%
Essential elements of a valid simple contract.
Legal status of the various types of statements which may be made by negotiating parties. Enforceable offers and acceptances, and the application of the rules to standard form contracts and modern forms of communication.
Meaning and importance of consideration.
Principles for establishing that the parties intend their agreement to have contractual force.
How a contract is affected by a misrepresentation.
Conditions and warranties
Manner in which law controls use of exclusion clauses and unfair terms in consumer and non-consumer transactions
Level of performance sufficient to discharge contractual obligations
Valid reasons for non-performance by way of agreement, breach by the other party and frustration
2.Laws relating to Sale of Goods10%
Formation of Contract of sale
Conditions and warranties
Transfer of ownership and delivery of goods
Unpaid seller and his rights
3.Industrial Laws20%
Factories Act
Industrial Dispute Act
Workman Compensation Act
Payment of Wages Act, Minimum Wages Act
Provident Funds Act
Payment of Bonus Act
Payment of Gratuity Act
Consumer Protection Act etc
4.Other Laws5%
Limited Liability Partnership
Competition Commission Act
Negotiable Instruments Act.
Dissolution, Insolvency
Piecemeal Distribution

B. Auditing ( 50 Marks)

1.Auditing Basics10%
Major influences of auditing; nature and scope of auditing; basic concepts of auditing; role of evidence in auditing; auditing techniques and practices – generally accepted auditing standards; the concept of materiality in auditing.
Fixed assets, investments, inventories, debtors, loans and advances, cash and bank balances, debentures and creditors, provisions for taxation, proposed dividend and gratuity – other items in the balance sheet; verification of items in the profit and loss account; contingent liabilities; disclosure of accounting policies, practice; expenditure during the period of construction; adjustments for previous year – provisions of the Companies Act, 1956 regarding accounts. Restructure
Statistical sampling in auditing. Use of ratios and percentages for comparison and analysis trends - inter-firm and intra-firm comparison.
2.Companies Act Provisions relating to Audits10%
Auditors' appointment, remuneration, removal, rights of statutory auditors, duties of statutory auditors, joint auditors, branch audits.
report versus certificate, contents of the reports, qualifications in the report.
relevant provisions of the Companies Act, 1956 and the Income-tax Act, 1961.
Interface between statutory auditor and internal auditor.
Corporate Governance
3.Review and Audit of Internal Control Systems15%
Nature and scope of internal auditing, financial versus operational audit; concepts of efficiency audit, propriety audit, voucher audit, compliance audit, pre and post audits.
Audit Report
Internal auditing function
Planning and process of internal audit
Verification of evidence, detailed checking versus sampling plans, statistical sampling as used in internal auditing; flow chart techniques.
Internal control, nature and scope, internal auditor and internal controls.
Field work, collecting evidences, interviews; memoranda.
Audit notes and working papers.
Audit reports - techniques of effective reporting; follow up of audit report.
Summary reports of top management.
Communications in internal auditing - improving auditor-auditee relationship.
Scope of Audit Committee
Internal audit and investigation of fraud
4.Information System Audit.10%
5.Introduction to Management Audit.5%

Recommended Books

Commercial & Industrial LawSen & MitraWorld Press
Mercantile Law Including Industrial LawN.D.KapoorSultan Chand
Business LawsGulsan & KapoorWiley Eastern
Busines LawsDr. G.K.KapoorSultan Chand
Business Law includig Company Law G.K.KapoorNew Age International
ContemporaryKamal GuptaTata-McGraw Hill
Spicer & peglar’s Practical AuditingS.V.GhataliaAllied Pubulishers
A Handbook of Practical AuditingB.N.TandonSultan Chand
Internal AuditingR.S.Waldron
Auditing Standards and GuidelinesICAI
Guidance Note on Secretarial AuditICSI
Basics of Auditing, for ICWA InterDinkar PagareSultan Chand