Important Topics for CA Intermediary Nov, 19 Exams

PAPER – 1 (ACCOUNTING)

Important topics

1.   Accounting Standard (Besides AS it includes formation of AS, IND AS, IFRS) (5-6 Marks)

2.   Preparation and Presentation of Financial Statements as per Accounting Standards (10-16 Marks)

3.   Companies Accounts

4.   Accountings for Special Transactions.

5.   Special Type of Accounting

6.   Partnership Accounting ( Amalgamation, conversion into company, sale to company and issues related to LLP).

PAPER-2 (Corporate & Others Law)

Important topics

1.   Preliminary, Incorporation of company and matters incidental thereto, Prospectus and Allotment of securities, Share capital and Debentures

(15-20 Marks)

2.   Acceptance of Deposits by companies, Registration of Charges, Management and Administration

(15-20 Marks)

3.   Declaration and payment of dividend, Accounts of companies, Audit and auditors

(20-25 Marks)

4.   The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments, Characteristics, Classification of

Instruments, Different provisions relating to Negotiation, Negotiability, Assignability, Right and Obligation of parties,

presentment of Instruments, Rules of Compensation

5.   The General Clauses Act, 1897: Important Definitions, Extent and Applicability, General Rules of Construction,

Powers and Functionaries, Provisions as to Orders, Rules, etc. made under Enactments, Miscellaneous

6.     Interpretation  of  statutes:  Rules  of  Interpretation  of  statutes,  Aids  to  interpretation,  Rules  of Interpretation/construction of Deeds and Documents

PAPER 3- Cost Management Accounting

Important Topics

1.  Overview of Cost and Management Accounting

(i) Introduction to Cost and Management Accounting

a)   Objectives and Scope of Cost and Management Accounting.

b)   The users of Cost and Management accounting information- Functions of management accounting

c)   Role of cost accounting department in an organisation and its relation with other departments (d) Installation of Costing System

d)   Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.

e)   Cost terms and Concepts

f)    Cost Reduction and Cost Control

g)   Elements of Costs

h)   Cost behaviour pattern, Separating the components of fixed, variable, semi-variable and step costs

i)     Methods of Costing, Techniques of Costing.

j)     Cost Accounting with use of Information Technology.

(ii) Elements of Cost and preparation of Cost Sheets

a)   Functional classification and ascertainment of cost

b)   Preparation of Cost Sheets for Manufacturing sector and for Service sector

Section I (35 Marks to 40 Marks)

2. Ascertainment of Cost and Cost Accounting System

(i) Material Cost

(a)  Procurement procedures- Store procedures and documentation in respect of receipts and stock. Stock verification,

(b)  Valuation of material receipts,

(a)  (C) Inventory control-

— Techniques of fixing level of stocks- minimum, maximum, re-order point, safely stock, determination of optimum stock level.

— Determination of Optimum Order quantity- Economic Order Quantity (EOQ),

— Techniques of Inventory control- ABC Analysis, Fast, Slow moving and Non moving (FSN). High. Medium. Low (HML), Vital, Essential, Desirable (‘lED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios,

(c)  Inventory Accounting

(d)  Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounting, monitoring consumption

(ii) Employee Cost

(a) Attendance and Payroll procedures-

— Elements of wages- Basic pay, Dearness Allowance, Overtime. Bonus, Holiday and leave wages, Allowances and perquisites.

(b) Employee Cost Control

(c) Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover.

(d) Utilisation of Human Resource, Direct and indirect employee Cost, charging of employee cost, Identifying employee hours with work orders or batches or capital jobs.

(e) Remuneration systems and incentive schemes

Time Rate System, Piece Rate System. Differential piece rate system, Calculation of wages, Effective Wages.

(iii) Direct Expenses

(a)  Direct expenses

(b)  Nature of Direct or Chargeable expenses

(c)  Sub-contracting- Control on material movements. Identification with the main product or service.

(iv) Overheads

(a)  Functional analysis- Factory, Administration, Selling, D istnbution, Research and Development.

(b)  Behavioural analysis- Fixed, Variable and Semi- Variable

(c)  Allocation and Apportionment of overheads using Absorption Costing Method.

(d)  Factory Overheads- Primary and secondary distribution.

a)   (e)Administration Overheads- Method of allocation to cost centres or products,

(e)  Selling & Distribution Overheads- Analysis and absorption of the expenses in products! customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion

(f)   Treatment of Research and development cost in cost accounting

Concepts of Activity Based Costing (ABC)

Recording and Accounting of Costs

(a)  Non-integrated Cost Accounting system- Ledger under non-integral system

(b)  Integrated (Cost and Financial) Accounting system- Ledgers under integral system.

(c)  Difference between the Non- integrated and Integrated Accounting system

(d)  Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated Accounting System)

3. Methods of Costing

1)   Single Output’ Unit Costing

2)   (ii) Job Costing: Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.

3)   (iii) Batch Costing: Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective work.

4)   (iv) Contract Costing

(a) Ascertainment of cost of a contract, Progress payment, Retention money: Escalation clause, Cost- plus contract, Value of work certified, Cost of Work not certified.

(b) Determination Value of work certified, Cost of work not certified, Notional or Estimated profit from a contact.

(v) Process! Operation Costing

(a) Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of production, Inter-process profit: Valuation of work in process.

(b) Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products.

(c) By-Products- Methods of apportioning joint costs over by-products, treatment of By-product cost.

(vi) Costing of Service Sectors

(a) Determination of Costs and Prices of services of following sectors! Industries:

— Transport, Toll roads, Hospitals, Canteen! Restaurants, Hotelsl Lodges, Educational Institutions. Financial Institutions? Banks, Insurance. IT sector and other services.

Section I (20 Marks to 25 Marks)

4 Cost Control and Analysis

(i) Standard Costing

(a) Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.

(b) Calculation and Reconciliation of Cost Variances-

- Material Cost Variance, employee Cost Variance, Variable Overheads Variance and Fixed Overhead Variance.

(ii) Marginal Costing

(a) Basic concepts of marginal costing. Contribution margin, Break-even analysis, Break —even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost- Volume-Profit Analysis (CVP), Multi- product break- even analysis. Consideration of Limiting factor (key factor),

(b) Determination of Cost of a product) service under marginal costing method. determination of cost of finished goods, work-in-progress,

(c) Comparison of Marginal costing with absorption costing method- Reconciliation of profit under the both methods,

(d) Short term decision making using the above concepts (basic I fundamental level).

(iii) Budget and Budgetary Control

(a) Meaning of Budget, Essentials of Budget; Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.

(b) The use of budget in planning and control

(c) Flexible budget, Preparation of Functional budget for operating and non-operating functions; Cash budget, Master budget;

(d) Introduction to Principal/ Key budget factor; Zero Based Budgeting (ZBB), Performance budget; Control ratios and Budget variances.

PAPER 4 -TAXATION

Important Topics

Income Tax

·         Capital Gain & Gift – Around 10 Marks.

·         PGBP – May be big question asked out of it.

·         Now do computation related question, when you do this questions provisions related to salary, house property & other services. After doing these questions you are not required to read provisions separately.

·         Now do TDS, deductions & provisions related to Return of Income – Marks covered 10-12.

·         Now do Set-off & carry forward more chances that theory question of 4-6 marks may be asked out of it.

Paper 5 - Advanced Accounts

Important Topics

1.

·        Application of Accounting Standards

·        Application of Guidance Notes issued by the ICAI on specified accounting aspects

(20-25 Marks )

2.   

·        Special Aspects of Company Accounts

·        Reorganization and Liquidation of Companies

(35-40 Marks)

3.

·        Financial Reporting of Banking, Financial Services and Insurance (BFSI)

(15-20 Marks)

4.

·        Valuation of goodwill

·        Consolidated Financial Statements

(20-25 Marks)

Note 1 : It is advisable to solve examples of Study material & questions of Practice Manual in Accounting Standards.

Note 2 : Most probably question of Electricity will come out of Practice manual or RTP.

Paper 6 – Auditing and Assurance

Important Topics

1.   Start with company Audit I & II friends…. this both chapter cover around 30 marks. As this cover 30 marks so read each and every topic in it.

2.   Special Audits – Club Audit, Educational Institution, Hotel, Cinema Hall, Advantages of audit of accounts of partnership firm.

3.   Verification : Cash, Depreciation, Contingent liability, Subsequent Events ( SA 560 ) , Cut-off Procedures, Personal Exp. of Directors & Analytical Review ( SA 500 ). Do this chapter and vouching in last. Best book for doing this is Practice Manual.

4.   Internal Control – Audit Risk, Audit Trail, EDP Auditing Approach n other related topic to EDP.

5.   Preparation of Audit – Audit Techniques, Audit Programme, Audit Sampling ( SA 530 ), Continuous Audit, Letter of Engagement, Management Representation.

6.   Chapter 1 & 2 – Audit Evidence & Methods of obtaining it, Compliance & Substantive Procedures, Going Concern Assumption, Joint Auditors ( SA 299 ), Principles governing audit, SA 200, Types of Error ( Specially Commission & Casting ), Operational Audit, Detection of Fraud & errors, Audit Engagement Letter, Inherent limitations of Audit.

Important Auditing Standards

SA 230	Audit Documentation
SA 330	Auditor’s Response to Risks
SA 450	Evaluation of Misstatements
SA 505	External Confirmations
SA 520	Analytical Procedures
SA 610	Using Internal Auditors work
SA 710	Comparative Information

Paper 7- EISM

Important Topics

INFORMATION SYSTEMS AND ITS COMPONENTS

1.    What is the operating system? What are the activities executed by the operating system?

2.    What is the Relational Database model? Explain.

3.    What is object-oriented Database model? Explain.

4.    What is the Data warehouse? What are the two primary schools of thought when designing a data warehouse? List out the benefits of Data warehouse.

5.    Explain about Controls for Fire Damage in Environmental Controls?

6.    What are Logical Access Controls? Explain the technical exposures in logical Access controls.

7.    Explain Programming Management Controls in Managerial Controls??

8.    Explain Data resourse management controls in managerial controls.

9.    What are Application Controls? Explain Boundary controls in Application Controls?

10.  What are Asynchronous attacks? Explain various forms of Asynchronous attacks?

11.  Explain the different types of output controls?

INFORMATION SYSTEMS AUDITING

1.    What is Information System Auditing? Explain its objectives.

2.    What is concurrent (or) Continuous Audit? Explain different types of Audit tools.

3.    What is the Audit trail? Explain the types and objectives of Audit trail.

4.    Explain internet points of presence in an audit of logical Access Controls?

5.    Explain the Need for Audit of Information Systems? (or) Explain the impact of controls and audit influencing an organization?

6.    Explain Investigative Procedures in Audit of Logical Access Controls?

7.    Explain Internet Points of Presence in Audit of Logical Access Controls?

8.    Explain about segregation of duties? Explain some examples of segregation of duties controls?

AUTOMATED BUSINESS PROCESS

1.    What are the steps to be taken while implementing BPA?

2.    What are the components of ERM?

3.    Explain the framework of ERM?

4.    Discuss the components of internal controls as per SA 315.

5.    How controls for the specific business process could be implemented?

6.    Give some examples of some common cyber-crime scenarios that can be prosecuted under the IT Act 2000

7.    Discuss the advantages of cyber laws.

8.    Explain Benefits of Automating Business Process?

9.    Explain the Limitations of Internal Control System?

10.  Discuss Order to Cash (02C) life cycle in detail? How risks and controls are implemented for O2C transaction?

11.  Discuss the term Cybercrime that can be prosecuted under the IT Act 2000?

12.  Practice a few flow charts in Study Material.

FINANCIAL AND ACCOUNTING SYSTEMS

1.    Discuss how integrated Enterprise Resource Planning Systems Support business.

2.    Discuss the features of an ideal ERP system.

3.    Discuss the term Business Intelligence. Explain its features and benefits.

4.    What is XBRL tagging?

5.    Who uses XBRL? What are its Features?

6.    Write about the importance of Basel-Ill in Banking Sector.

7.    Discuss several RISKS and CONTROLS of ERP Environment?

8.    What are the steps involved Inside the Data Analytics Process?

9.    What type of Questions should be asked by an auditor during ERP audit?

DEFINITIONS:

1.    Integrated and Non-integrated systems.

2.    Web application

3.    Master data and Non-Master data

4.     RBAC

5.    RAC

6.    CRM module

7.    Business Reporting (or) Enterprise reporting.

8.    Data Warehouse

9.    MIS Report.

10.    XBRL

11.  Business process.

E-COMMERCE. M-COMMERCE & EMERGING TECHNOLOGIES

1.    What is the architecture of networked systems? Explain the types.

2.    What are the Risks associated with E-commerce?

3.    What are the components of E-commerce?

4.    Write about several IT Risks as per SA (Standard on Auditing) 315?

5.    What is a digital payment? What are the new methods of digital payments?

6.    List out the advantages and Drawbacks of digital payments.

7.    What are the constraints to be taken to develop a secured grid?

8.    What is green computing (or) Green IT? What are its best practices?

9.    What are Risks associated with the Internet of Things (loT)?

10.  Write down the Threats (or) Risks associated with BYOD?

Definitions

·         E-COMMERCE

·         M-COMMERCE

·         E-wallet

·         Network virtualization. Virtualization Storage virtualization.

·         Community cloud.

·         Hybrid cloud

·         Saas model

·         BYOD

·         IOT

·         Artificial Intelligence.

·         Web 3.0

·         Machine learning.

·         Grid computing

·         Server consolidation

CORE BANKING SYSTEMS

·         Discuss Various IT Risks which could have a significant impact on IT Risks in the business/ banking sector or Explain the impact of IT risks in banking segment?

·         Discuss the concept of IT Risk Management?

·         Discuss Technology and Workflow of CBS?

·         What is a Server? Discuss various types of servers being used in CBS?

·         Briefly explain all the stages of money laundering and how banks are used in laundering money?

·         What are the Risks associated with CBS?

·         What are the steps involved in a credit card transaction? Discuss several Risks and Controls around the Credit Card Process?

·         Discuss several IT related Risks and mitigating Controls w.r.t Data Center and Network Operations What are the processes that are comprised in Data Center and Network Operations?

Definitions

·         CBS

·         Finacle

·         Money Laundering

·         Phishing attacks.

·         Bankmate

SM :-

·         Bench Marking, e-commerce/ ERP, Business Process Re- engineering, TQM & Traditional Mgt. Practices, Rationale of BPR.

·         Diff. b/w Strategy Formulation & Implementation, SBU, Matrix Structure, Network Structure and Value Chain Analysis.

c.    Penetration & Skimming Pricing, Marketing Strategy Techniques, Implementing Supply Chain Mgt. System.

d.    Corporate Strategy Formulation implementation process, Various Grand Strategies, Concentric & Congolemerate Diversification, Turnaround Strategy.

e.    GE Model, Ansoff’s Matrix, Product Life Cycle, Common Driving Forces and

BCG.

g.    Strategic levels in organization, Mission & Vision, Objectives & goals, Task of Strategic Mgt., Generic Strategic Alternatives, Definition of Strategy, Porter’s Five forces model, Kieretsus, Manifestation of globaliztion.

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