CWA ICWA Intermediate - Syllabus and Books

ICWAICWA ICWA (2008)Inter : Intermediate • Syllabus and Books

Group I - Financial Accounting

ICWA :: Intermediate
Paper 5 : Financial Accounting
[One Paper: 3 hours:100 marks]

Objective . . .

To have working knowledge of accounting concepts, detailed procedures and documentation involved in financial accounting system
To gain working knowledge of the principles and procedures of accounting and their application to different practical situations
1.Accounting Conventions and Practices10%
Depreciation and various methods thereof
Stock valuation
Distinction between Capital and Revenue
2.Royalty and Hire Purchase10%
Royalty accounting
Need for hire purchase and installment systems and parties involved.
Accounting from the point of view various parties.
Possession and repossession in case of default in payments.
3.Receipts & Payments/ Income & Expenditure Accounts10%
Receipts & Payments
Income & Expenditure Account
4.Partnership Accounting10%
Past adjustments and guarantee
Admission & Retirement
Assignment of life policy
Amalgamation and Sale of Business
Dissolution, Insolvency
Piecemeal Distribution
5.Branch and Departmental Accounts10%
Branch accounts- Debtors system, Stock & Debtors system, Foreign Branch.
Treatment of shortages.
Calculation of net profit of various departments and allocation of expenses on the basis of suitable base.
Preparation of common balance sheet.
Treatment of Unrealized profit.
6.Accounting Standards10%
Applicability of a particular accounting standard.
Interpretation of various accounting standards.
Scope of accounting standards.
Compliance with the Accounting Standards.
7.Joint Stock Companies20%
Issues of shares at par, discount & premium, forfeiture, reissue of shares
Bonus issue and right issue
Buy back of shares
Redemption of Preference of shares
Profit prior to incorporation
Issue and redemption of debentures
8.Preparation of Company Accounts
Preparation of Final Accounts under Company Law
9.Accounting services in organizations10%
Construction companies ,Project Accounting
Service sector such as Software, ITES, Telecommunication, Entertainment, Hospital, educational institutions
Banking , Electricity and Insurance companies
10.Accounting and Interpretation of Financial Statements.10%

Recommended Books

Advanced AccountancyHrishikesh ChakrabortyOxford University Press
Modern AccountancyMukherjee & HaniffTata McGraw Hills
Advanced AccountingGupta & RadhaswamySultan Chand
Advanced AccountsShukla & Grewal & GuptaSultan Chand
Accounting standards & Corporate Accounting Practice T.P.GhoshTaxmann
Guide to Accounting StandardSanjiv AgarwalSnow White
Advanced Practical AccountsSubrata Mukherjee & Anjan BhattacharyyaSultan Chand
Indian Accounting StandardsR.L.Gupta & M.RadhaswamySultan Chand
Financial Accounting – A Managerial perspectiveDr. D.MukhopadhyayAsian Books
Advanced AccountancyM.E. Thukaram RaoNew Age International

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

Group I - Applied Direct Taxation

ICWA :: Intermediate
Paper 7 : Applied Direct Taxation
[One Paper: 3 hours:100 marks]

Objective . . .

To understand the provisions of direct tax laws
To gain knowledge on procedural aspects for filing tax returns for various assesses and other statutory compliances
To get knowledge of various tax incentives and benefits under direct taxes
To know applications of tax provisions in various cases

1.Direct Taxes- Comprehensive Study.50%
Overview of Direct Tax Laws
Direct versus indirect taxes, taxable person
Basic Concepts.
A comprehensive study of the Income-tax Act, 1961; case laws governing capital and revenue expenditure, deemed income, residence concept.
Special problems centering on the concept of assessees, registered firm, Hindu Undivided Family, Companies, Association of persons and trust, minors, cooperatives, non-resident Indians and avoidance of double taxation.
Salaries, perquisites, gratuity and retirement benefits, income from house property, capital gains, income from other sources, income from business and profession, problems arising from aggregation of income and set off and carry forward of losses,
Computation of income and Return of Income Tax, Filing procedure, Principles of valuation of movable and immovable property. Advance payment of Tax.
Deduction and collection of tax at source.
Tax incentives and export promotion schemes, other benefits and tax exemptions.
Assessment, appeals, revisions, review, rectification and application to Central Board of Direct Taxes.
Penalties ,Fines and prosecution.
Securities Transaction Tax.
Fringe Benefit Tax.
Banking Cash Transaction Tax.
Wealth Tax.
2.Practical problems and case studies under Direct Taxes.50%

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

Group II - Cost and Management Accounting

ICWA :: Intermediate
Paper 8 : Cost & Management Accounting
[One Paper: 3 hours:100 marks]

Objective . . .

To understand basic concept, processes used to determine product cost
To gain knowledge of preparation of budgets , standard costs and variance statements
To gain skill for controlling cost and decision making

1.Basic aspects of Cost Accounting15%
Cost Concepts and Classification of costs
Materials: accounting and control systems procedures and techniques
Labour: accounting, incentive schemes and control systems and procedures
Direct Expenses
Indirect expenses: allocation, apportionment, re-apportionment and absorption of overhead costs.
Cost Accounting Standards.
2.Cost Accounting Methods and systems20%
Job, batch, contract and process costing.
Cost accounting for service sector
Accounting entries for an integrated accounting system – cost ledgers
Reconciliation between cost and Financial profit and loss account.
Interlocking accounting
3.Decision Making Tools20%
Marginal costing, break even analysis and its applications in decision making
Absorption costing as a system of profit reporting and stock valuation.
Throughput accounting as a system of profit reporting and stock valuation.
Activity-based costing for profit reporting and stock valuation.
Integration of standard costing with marginal cost accounting, absorption cost accounting and throughput accounting.
Process costing including establishment of equivalent units in stock, work-in-progress and abnormal loss accounts and use of various methods like first-in-first-out, average cost and standard cost methods of stock valuation.
Budget Concepts and Preparation
Fixed and Flexible Budgets
Time series analysis including moving totals and averages, treatment of seasonality, trend analysis using regression analysis and the application of these techniques in forecasting product and service volumes.
Fixed, variable, semi-variable and activity-based categorizations of cost and their application in projecting financial results.
Zero base budgeting
5.Standard Costing15%
Manufacturing standards for material, labour, and overhead.
Price/rate and usage/efficiency variances for materials, labour and overhead. Further subdivision of total usage/efficiency variances into mix and yield components.
Fixed overhead variances.
Planning and operational variances.
Sales price and sales revenue/margin volume variances (calculation of the latter on a unit basis related to revenue, gross margin and contribution margin). Application of these variances to all sectors, including professional services and retail analysis.
Interpretation of variances: interrelationship, significance.
Benchmarking for setting standards
6.Costing and performance management10%
Business performance measurement for performance improvement
7.Recent trends in cost and Management Accounting5%

Recommended Books

A Text Book of Cost AccountancyM.N.AroraVikas Publishing Pvt., Ltd.
Cost Accountaing: Method & ProblemsB.K.BharAcademic Publishers
Cost Accounting-A Managerial EmphasisHorngren, Foster & DaterPrentice Hall
Cost AccountingN.K.Prasad & A.K.PrasadBook Syndicate
Cost Accounting Bhabatosh BanerjeeWorld Press
Fundamental Managerial Accounting ConceptEdmonds, Edmonds And Tsay Irwin McGraw Hill
Principles and Practice of Cost AccountingAsish BhattacharyaSultan Chand
Management AccountingR.S.N.Pillai & BhagavatiS.Chand
Cost AccountingMoriarity and AllenJohn Wiley
Advanced cost and ManagementV.K.Saxena & C.D. VashistSultan Chand & Sons
Cost Accounting – Theory and PracticesBhabatosh BanerjeeSultan Chand & Sons
Advanced Cost & Management Accounting-Problems & Solutions V.K.Saxena & C.D.Vashist Prentice Hall of India(p) Ltd.
Cost Accounting R.S.N.Pillai & Bhagavati S.Chand
Studies in Cost ManagementS.N.MaheshwariSultan Chand & Sons
Cost and Management AccountingM.E.Thukaram RaoNew Age International
Management AccountingM.E.Thukaram RaoNew Age International

Group II - Operation Management and Information Systems

ICWA :: Intermediate
Paper 9 : Operation Management and Information Systems
[One Paper: 3 hours:100 marks]

Objective . . .

To gain knowledge of Operation Management, Production planning and resource management
To develop understanding of Information Technology and its use in business environment.

A. Operation Management ( 50 Marks)

1.Overview of Production Process15%
Fabrication process
Metal working process – forming, heat treatment, welding, surface treatment etc.
Machining process
Class of machine – Lathes, drilling, grinding, milling, planing, shaping, slotting etc.
Special purpose machine – special grinding, hobbing, honing, cutting tools, jigs and fixtures etc.
Pump, motor, transformer, electrical drives,
Classification of industries based on production process
Technological aspects of different production process like power, pollution control, recovery process,
Plant layout , material handling system etc
2.Production Planning & Productivity management15%
Time study, work study, method study, Job Evaluation.
Production planning and control-Introduction.
Capacity planning and Utilization.
Process planning,
Project planning.
Progressing and follow-up.
Scheduling Technique & Line Balancing Problem
Economic batch production
Human Resource Planning
Material Requirement Planning
Productivity measurement techniques of factors of production
Quality Control
3.Maintenance Management10%
Obsolescence, replacement of machinery
Breakdown maintenance, preventive maintenance & Routine Maintenance
Maintenance Techniques
Maintenance organization
Maintenance problems etc
4.Resource Management10%
Input-output ratio
Linear programming
Replacement of machine
Change of Technology and its implication

B. Information Systems ( 50 Marks)

1.Information System Analysis and Design.10%
Information System-Systems development life cycle, Structured Systems Analysis and Design, Physical and Logical Data Flow Diagrams, Requirements Analysis, Design of New Systems. Data Modeling, data dictionary, entity relationship diagram, structure charts, Transform and Transaction Analysis, Applications in Financial & Cost Management
2.Database Management Systems15%
File & Data Base Concept, Overview of DBMS, Data Models, Database Administrator, Database Users, Schema. Data Independence, Relational Database Management System (RDBMS), some applications of RDBMS using Oracle & SQL Server
3.Management Information Systems (MIS)15%
Introduction, People & Organization, System & models, Decision process and evaluation thereof, transaction processing & management reporting, MIS in functional areas: Finance & Cost Management, Inventory, Marketing, HRM.
4.Enterprise Resource Planning (ERP)10%
Functional architecture of ERP, Material requirement planning & ERP, Business Process Reengineering & ERP, Supply chain management, Some applications involving SAP & Oracle (Financial), Change Management and ERP Implementations, Technology and International Considerations in implementation of ERP.

Recommended Books

Production & Operations Management Alan Muhlemann And OthersMacmillan
Production & Operation ManagementAdam & ElebertPrentice Hall
Operations Management and ControlBiswajit BanerjeeS.Chand
Production & Operation ManagementAdam & ElbertPrentice Hall
Project Preparation Appraisal & Implementation Prasanna ChandraTata McGraw Hill
Project ManagementS.ChoudhuryTata McGraw Hill
Project Management HandbookGopal Krishnan & RamamurthyMacmillan
A Profile of Information Technology: Computer DigestH.R.BanerjeeJaico
Management Information SystemsGordon B.Davis & Margrethe H.Olson Tata McGraw Hill
Managing with InformationJerome KanterPrentice Hall of India
Computer Information TechnologyY.P.Puri & Vipin PuriGlobal Business
Computer Fundamentals: Concepts, Systems and Applications P.K.SinhaB.P.B. Publications
Fundamentals of Database SystemsRamesh Elmarsi & Shyamakant B. Navathe Pearson Education
Law of Information Technology (Cyber Law) with Information Technology (Certifying Authorities) Rules, 2000 D.P.MittalTaxmann
Getting Results with Microsoft Office 97 MicrosoftMicrosoft
Information Systems & TechnologyDr.L.M.Prasad and Usha Prasad Sultan Chand

Group II - Applied Indirect Taxes

ICWA :: Intermediate
Paper 10 : Applied Indirect Taxes
[One Paper: 3 hours:100 marks]

Objective . . .

To gain knowledge of various provisions of Central Excise, Service tax, VAT & Sales Tax.
To know the applications of provisions in different situations
To understand the statutory compliance under indirect taxes including audits

1.Canons of Taxation - Indirect Taxes5%
Features of Indirect Tax. Constitutional validity. Indirect Tax Laws, administration and relevant procedures
2.Central Excise25%
The Central Excise Law
Goods, Excisable goods, Manufacture and manufacturer, Classification, Valuation, Related Person, Captive Consumption, CAS 4, CENVAT.
Basic procedures, Export, SSI, Job Work.
Assessment, Demands, Refund, Exemptions;
Powers of Officers.
Adjudication, Appeals, Settlement Commission, Penalties .
Central Excise Audit and Special Audit under 14A and 14AA of Central Excise Act
Impact of tax on GATT 94, WTO, Anti Dumping processing;
Tariff Commission and other Tariff authorities.
3.Customs laws15%
Basic concepts of customs law;
Territorial waters, high seas;
Types of custom duties., Anti- Dumping Duty, Safeguard Duty;
Customs Procedures, Import and Export Procedures, Baggage.
Warehousing, Demurrage;
Project Imports and Re- Imports;
Penalties and Offences.
Export Promotion Schemes. EOU
Duty Drawback.
Special Economic Zones.
4.Service Tax15%
Introduction, Nature of Service Tax.
Service Provider and Service Receiver.
Registration procedure
Records to be maintained
Classification of taxable services
Valuation of taxable services.
Exemptions and Abatements.
Payment of service tax, Return
Cenvat Credit Rules
Export and import of services.
Other aspects of Service Tax.
Taxable Services.
Special Audit under 14A and 14AA of Central Excise Act
5.Central Sales Tax Act & VAT Act.15%
Introduction, definition of sale under CST;
Stock transfer, branch transfer under CST;
Inter state sale,
Various forms for filing of sales tax returns under CST;
Sales outside territorial waters under CST;
Practical examples on CST.
VAT, Salient features of State VAT Acts
Treatment of stock & branch transfer under State VAT Acts
Filing & Return under State VAT Acts
Accounting & Auditing VAT
6.Practical problems and Case Studies under Indirect Tax Laws25%

Recommended Books

Indirect Taxes: Law & PracticeTaxmannTaxmann
Central Excise Rules & FormsTaxmannTaxmann
Central Excise MannualR.K.JainCentax Publications
Customs MannualR.K.JainCentax Publications
Central Sales Tax & VATV.S.DateyTaxmann