CA Intermediate Paper 5 Advanced Accounting Syllabus

CA Intermediate Paper 5 Advanced Accounting Syllabus :

The Institute of Chartered Accountants of India (ICAI) has now announced dated 27th May 2017 that the Revised Scheme of Education and Training for CA course will come into effect from 1st July, 2017. Students who are eligible to register in the CA IIPC under the existing (OLD) scheme, may register on or before 30th June, 2017

ICAI has given details about CA New Course | Foundation Route, CA New Course | Direct Entry Route, Changes in CPT, IPCC and CA Final syllabus from 2016 and other training programmes| CA IPCC Old Scheme Versus CA Inter New Scheme Syllabus.

CA Intermediate Paper 5 Advanced Accounting Syllabus

Paper 5: Advanced Accounting (One paper – Three hours – 100 Marks)

Contents:

1. Accounting Standards:
   AS 7 : Construction Contracts
   AS 9 : Revenue Recognition
   AS 14: Accounting for Amalgamations
   AS 18 : Related Party Disclosures
   AS 19: Leases
   AS 20 : Earnings Per Share
   AS 24 : Discontinuing Operations
   AS 26 : Intangible Assets
   AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
2. Application of Guidance Notes issued by the ICAI on specified accounting aspects.
   Company Accounts
3. Special Aspects of Company Accounts
   (a) Accounting for employee stock option plan
   (b) Buy back of securities
   (c) Equity shares with differential rights
   (d) Underwriting of shares and debentures.
4. Reorganization of Companies
   (a) Accounting for business acquisition, Amalgamation (excluding inter-company holding) and reconstruction
   (b) Accounting involved in liquidation of companies, Statement of Affairs (including deficiency/surplus accounts) and Liquidator’s statement of account of the winding up.
5. Financial Reporting of Banking, Financial Services and Insurance
   (a) Insurance,
   (b) Banking companies and
   (c) Non-Banking Financial Companies
   (d) Mutual funds
   and regulatory requirements thereof.
6. Valuation of goodwill
7. Consolidated Financial Statements
   Concept of consolidation and simple problems on Consolidated Financial Statements with single subsidiary (excluding problems involving acquisition of Interest in Subsidiary at Different Dates; Different Reporting Dates; Disposal of a Subsidiary and Foreign Subsidiaries)

CA Intermediate Paper 5 Advanced Accounting Syllabus

Notes:

1. If either a new Accounting Standards (ASs), Announcements and Limited Revisions to ASs are issued or the earlier one are withdrawn or new ASs, Announcements and Limited Revisions to AS are issued in place of existing ASs, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified.
2. The list of Guidance Notes in Accounting applicable in this paper for a particular exam will be issued separately before the respective examination.

CA Intermediate Paper 5 Advanced Accounting Syllabus

CA Intermediate Paper 5 Advanced Accounting Syllabus

CA Intermediate Paper 5 Advanced Accounting Syllabus

Paper 6: Auditing and Assurance (One paper – Three hours – 100 Marks)

1. Nature, Objective and Scope of Audit
   Auditing Concepts: Nature, objective and scope of Audit; Relationship of auditing with other disciplines;
   Standard Setting Process: Overview, Standard-setting process, Role of International Auditing and Assurance Standards Board (IAASB) & Auditing and Assurance Standards Board (AASB); Standards on Auditing, Guidance Note(s) issued by the ICAI;
   Engagement Standards: Definition of Auditor, Basic Elements of System of Quality Control (SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements); Ethical requirements relating to an audit of financial statements; Inherent Limitations of an audit (SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing); Preconditions for an audit; Audit Engagement; Agreement on Audit Engagement Terms; Terms of Engagement in Recurring Audits (SA 210 Agreeing the Terms of Audit Engagements); Leadership Responsibilities for Quality on Audits; Concept of Auditor’s Independence; Threats to Independence; Acceptance and Continuance of Client Relationships and Audit Engagements (SA 220 Quality Control for an Audit of Financial Statements).
2. Audit Strategy, Audit Planning and Audit Programme
   Audit Strategy; Audit planning (SA 300); Audit programme; Development of Audit Plan and Programme, Control of quality of audit work – Delegation and supervision of audit work; Materiality and Audit Plan; Revision of Materiality; Documenting the Materiality; Performance Materiality (SA 320 Materiality in Planning and Performing an Audit).
3. Audit Documentation and Audit Evidence
   Concept of Audit Documentation; Nature & Purpose of Audit Documentation; Form, Content & Extent of Audit Documentation; Completion Memorandum; Ownership and custody of Audit Documentation (SA 230 Audit Documentation); Audit procedures for obtaining audit evidence; Sources of evidence; Relevance and Reliability of audit evidence; Sufficient appropriate audit evidence, Evaluation of Audit Evidence (SA 500 Audit Evidence); Written Representations as Audit Evidence; Objective of Auditor regarding Written Representation; Management from whom Written Representations may be requested; Written Representations about Management’s Responsibilities (SA 580 Written Representations); Obtaining evidence of existence of inventory; Audit procedure to identify litigation & claims (SA 501 Audit Evidence – Specific Considerations for Selected Items); External confirmation procedures; Management’s refusal to allow the auditor to send a confirmation request; Negative Confirmations (SA 505 External Confirmations); Audit evidence about opening balances; Accounting policies relating to opening balances; Reporting with regard to opening balances (SA 510 Initial Audit Engagements-Opening Balances); Meaning of Related Party; Nature of Related Party Relationships & Transactions; Understanding the Entity’s Related Party Relationships & Transactions (SA 550 Related Parties); Meaning of Subsequent Events; Auditor’s obligations in different situations of subsequent events (SA 560 Subsequent Events); Responsibilities of the Auditor with regard to Going Concern Assumption; Objectives of the Auditor
   regarding Going Concern; Events or Conditions that may cast doubt about Going Concern Assumption; Audit Procedures when events or conditions are identified (SA 570 Going Concern).
4. Risk Assessment and Internal Control: Risk Assessment procedures; Understanding the entity and its environment; Identifying and Assessing the Risk of Material Misstatement; Documenting the Risks; Elements of internal control; Review and documentation; Evaluation of internal control system; Tests of control; Internal Control and IT Environment (SA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment); Application of concept of materiality and audit risk (SA 320 Materiality in Planning and Performing an Audit); Concept of internal audit, Basics of Standards on Internal Audit (SIAs) issued by the ICAI; Basics of Internal Financial Control and reporting requirements; Distinction between Internal Financial Control and Internal Control over Financial Reporting.
5. Fraud and Responsibilities of the Auditor in this Regard:Responsibility for the Prevention and Detection of Fraud; Fraud Risk Factors; Risks of Material Misstatement Due to Fraud; Communication of Fraud (SA 240 The Auditor’s responsibilities Relating to Fraud in an Audit of Financial Statements); Provisions of the Companies Act 2013 relating to fraud and rules thereunder including reporting requirements under CARO.
6. Audit in an Automated Environment: Key features, Impact of IT related Risks, Impact on Controls, Internal Financial Controls as per Regulatory requirements, Types of Controls, Audit approach, Understanding and documenting Automated environment, Testing methods, data analytics for audit, assessing and reporting audit findings.
7. Audit Sampling: Meaning of Audit Sampling; Designing an audit sample; Types of sampling; Sample Size and selection of items for testing; Sample selection method (SA 530 Audit Sampling).
8. Analytical Procedure: Nature of analytical procedures; Designing and performing analytical procedures prior to Audit; investigating the results of analytical procedures (SA 520 Analytical Procedures).
9. Audit of Items of Financial Statements: Audit of sale of Products and Services; Audit of Interest Income, Rental Income, Dividend Income, Net gain/loss on sale of Investments etc.
   Audit of Purchases, Employee benefits expenses, Depreciation, Interest expense, Expenditure on Power & Fuel, Rent, Repair to building, Repair to Machinery, Insurance, Taxes, Travelling Expenses, Miscellaneous Expenses etc.
   Audit of Share Capital, Reserve & Surplus, Long Term Borrowings, Trade Payables, Provisions, Short Term Borrowings & Other Current Liabilities. Audit of Land, Buildings, Plant & Equipment, Furniture & Fixtures, Vehicles, Office Equipments, Goodwill, Brand/Trademarks, Computer Software etc. Audit of Loan & Advances, Trade Receivable, Inventories, Cash & Cash Equivalent, Other Current Assets. Audit of Contingent Liabilities.
   (The list of items is illustrative only)
10. The Company Audit: Eligibility, Qualifications and Disqualifications of Auditors; Appointment of auditors; Removal of auditors; Remuneration of Auditors; Powers and duties of auditors; Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013 including CARO; Other
    Important Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder.
11. Audit Report: Forming an opinion on the Financial Statements; Auditor’s Report- basic elements (SA 700 Forming an Opinion and Reporting on Financial Statements); Types of Modified Opinion; Circumstances When a Modification to the Auditor’s Opinion is Required (SA 705 Modification to the Opinion in the Independent Auditor’s Report); Qualification, Disclaimer, Adverse opinion (SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent, Auditor’s Report); Nature of Comparative Information; Corresponding Figure; Comparative Financial Statements (SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements).
12. Audit of Banks: Understanding of accounting system in Banks, Bank Audit Approaches, Audit of Revenue items, Special Consideration in Bank Audit with emphasis on Advances and NPAs.
13. Audit of Different Types of Entities: Appointment of Auditor, Audit Procedure. Audit Report in respect of different Category of Entities mentioned below: government; Local bodies and not-for-profit organizations; Partnership Firms, Audit of different type of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals Basics of Limited Liability Partnerships (LLPs) audit and Co-operative Societies Audit.

CA Intermediate Paper 5 Advanced Accounting Syllabus

Note:

1. The specific inclusions/exclusions, in any topic covered in the syllabus, will be effected every year by way of Study Guidelines.
2. The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
3. If new legislations/ Standards on Auditing/Guidance Notes/Statements are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. The changes in this regard would also form part of Study Guidelines.

CA Intermediate Paper 5 Advanced Accounting Syllabus

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CA Intermediate Paper 5 Advanced Accounting Syllabus

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