Ica Gh Syslabus

Objectives and Expected Performance Outcome of each part THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA) Syllabus for ICAG toss Examinations ACCRA 2009 implant of charter deemants, gold coast 1 Proposed Sylabus for ICAG loss Examinations Contents Introduction Features and Inovations of the New Scheme Objectives and Expected Performance Outcomes of Each Part area 1 1. 1 1. 2 1. 3 1. 4 pecuniary chronicle Fundermentals job guidance Economics precaution development brasss PART 2 2. 1 2. 2 2. 3 2. decimal Tools in worry examine and internal refresh Business and Corporate Law Principles and Practice of Taxation PART 3 3. 1 3. 2 3. 3 3. 4 pecuniary Reporting Public Sector chronicle Cost and vigilance report fiscal caution PART 4 4. 1 4. 2 4. 3 4. 4 Advanced Financial Reporting Advanced Audit and Professional ethical motive Corporate Strategy and Governance Advanced Tax preparation and Fiscal Policy Review of adjustment Examinations Syllabus may 2010 Proposed Trans itional Arrangements 1 2 3 4 11 17 25 32 37 42 50 55 61 68 73 80 86 98 108 115 116 2 lay down of charter Accountants, gold coast Financial Accounting basic principleINTRODUCTION After nearly four years of organizing examinations on the current syllabus of the found of undertake Accountants (Ghana), headmaster programme, the first of which was held in may 2005, it is now considered appropriate and timely to revise and update it in order to bring it in line with current state of knowledge and to make it more relevant to the current demands of employers and clients. The job of the Chartered Accountant has become more sophisticated because of the effects of globalisation, developments in development technology and the complexity of the modern contrast governing.The modern day chartered method of news reportant, for instance, not only expresses an opinion on the accuracy and fairness of pecuniary accounts, scarce also advises counsel on the viability of investing work reveals, tax income matters and renders specialised advisory services, and so forth In many cases, he is called upon to serve the nation as a member of a special investigating panel. In order to perform these draws accreditably, he needs to have explicated proficiency in accounting theory and practice. The bracing syllabus would be examined in May 2010. The new syllabus attempts to meet the dual goals of the scheme through the subject structure and coverage.The 16-subject, 4- take-structure examination combines subjects which address the practical skills requirements of the potential professional accountants with others which are in the first place of the theoretical or judgmentual nature and therefore serves as a good grounding for the Professional Accountant. SUMMARY OF NEW STRUCTURE Exhibit 1 Chart of New Examination Scheme 1. 1 1. 2 1. 3 1. 4 Financial Accounting Fundamentals Business Management Economics MIS & Business Systems 3. 1 3. 2 3. 3 3. 4 Financial Reporting Pu blic Sector Accounting Cost and Management Accounting Financial Management PART 1PART 3 PART 2 PART 4 2. 1 2. 2 2. 3 2. 4 Quantitative Tools in Business Audit and Internal Review Business and Corporate Law Principles and Practice of Taxation 4. 1 4. 2 4. 3 4. 4 Advanced Financial Reporting Advanced Auditing and Professional Ethics Corporate Strategy and Governance Advanced Taxation and Fiscal Policy implant of Chartered Accountants, Ghana 1 Proposed Sylabus for ICAG Qualifying Examinations FEATURES AND INNOVATIONS OF THE NEW SCHEME This new scheme was developed on a well-established context for a review and transpose. The next new features and innovations stand out. A four-part structure of 16 papers in total. Fusion and integration of some courses. This is meant to encourage an integrative learning nestle and to minimize the negative of the tunnel vision subject-by-subject training. The combination of related courses is therefore meant to issue forth more meaning and synergie s. For example, it is not uncommon to find very similar questions and requirements on Budgeting and Variance Analysis in both the old i. e. Current Management Accounting and Cost Accounting papers. Clearly defined and achiev satisfactory learning outcomes from Part to Part.This should partly resolve the problems associated with the placement of partly qualified candidates in industry and on other programmes. A more rational, easy-to- satisfy and implement, graduate conversion and exemption scheme has been incorporated. It is hoped that this will motivate higher grade candidate entrantsdegree and diploma holders to acquire sufficient accountancy competence and speed up their eventual professional qualification. All students have ten (10) years from the date of registration within which to sweep through all the examinations of the Institute of Chartered Accountants (Ghana).After the ten (10) years period any student who has not completed the examinations of the Institute will not be bailable to take the examinations. Better focus on railway line pecuniary strategy and reporting or chat skills, thereby enabling candidates to appreciate the overall realities of the traffic organisation purlieu and to use advisory skills more effectively. Introduction of some more relevant programmes and appropriate titles the New Business Strategy is more about management, make accountants strategical decisions makers. Increased emphasis on business advisory skills at the final Part 4. 2 Institute of Chartered Accountants, Ghana Financial Accounting Fundamentals OBJECTIVES AND EXPECTED PER abidanceANCE OUTCOME OF EACH PART Each of the 4 Parts of this examination scheme has a broad objective and expected deed outcome as stated below. Additionally, within each subject at any Part, the syllabus coverage as well as the detailed but specific objectives and learning outcomes are stated. The broad objective and learning outcomes of the four (4) Parts are as follows PART 1 4 basic/ fanny papers. Provision of basic principles and knowledge ask to understand the Business Environment. PART 2 Four (4) traditional issue papers. Test of technical expertise unavoidable of a modern accountant. Acquisition of background knowledge and skills necessary for effective performance at middle management level. PART 3 Four (4) core papers. Emphasis on business cases, strategy and advisory skills. PART 4 Four (4) core papers. Emphasis on business cases, strategy and advisory skills. topic and Interpretation The pass mark is 50%. The results will be published as pass or fail.A candidate who fails has the option of rewriting this paper in subsequent examinations till his/her candidature expires. Institute of Chartered Accountants, Ghana 3 Proposed Sylabus for ICAG Qualifying Examinations PROFESSIONAL PART 1 study 1. 1 Financial Accounting Fundamentals 1. OBJECTIVES AND LEARNING OUTCOMES This paper is designed to enable candidates acquire and appreciate e xtreme accounting knowledge in organisations. At the end of the course, the candidate should be able to Demonstrate sound knowledge and understanding of accounting principles, concepts and their application in the preparation of pecuniary statements.To ensure that students have a sound understanding of the techniques of double entry accounting and can apply its principles in recording transactions, adjusting financial records and preparing non-complex financial statements. Able to line and correct omissions and errors in accounting records and financial statements. Able to specify the components of financial statements and prepare and pledge non-complex accounts for sole great dealrs, partnerships and limited companies. Specify why an entity of importtains financial records and prepares financial statements. tell apart the sources of knowledge for the preparation of accounting records and financial statements. Record and account for transactions and events resulting in income , expenses, assets, liabilities and equity in accordance with the appropriate basis of accounting and the jurisprudences, regulations and accounting standards applicable to the financial statements. stimulate a trial agreement from accounting records and identify the uses of the trial balance. Prepare accounts and financial statements from incomplete records. Understand the different bases of preparing financial statements. agree some inter study financial reporting standards.Define the qualitative characteristics of financial education and the fundamental bases of accounting FORM OF psychometric test The examination will be a three-hour paper make uping of five needed questions. (All the five questions must be answered. ) 3. programme WEIGHTING GRID This grid fork overs the relation back weightings of topics within this subject and should draw and quarter the relative study time spend on each. The marks purchasable in the assessment will equate to the weightings belo w. 4 Institute of Chartered Accountants, Ghana 2. Financial Accounting FundamentalsHowever, there aptitude be thin variations in some instances as they serve as a strike only. broadcast COVERAGE Conceptual Framework of Accounting, Maintaining Financial Records Principles of retroflex Entry & Books of Prime Entry Adjustments to Accounting Records and Financial Statements Accounting for non-current Assets (tangibles and intangibles) Preparation of Financial Statements including Cash Flow Preparation of Financial Statements for Non- cyberspace Making Organisations, Preparation of Financial Statements from Incomplete Records Accounting for specialised transactions Introduction to financial statements analysis TOTAL WEIGHTING (%) 0 15 20 20 15 10 degree Celsius Institute of Chartered Accountants, Ghana 5 Proposed Sylabus for ICAG Qualifying Examinations report card 1. 1 Financial Accounting Fundamentals master(prenominal) TOPIC SYLABUS CONTENT (Contd. ) 1. 1 Conceptual Framework of Accounting a. Define and apologize the compass of accounting, financial accounting, book-keeping, cost and management accounting, and their similarities and differences. b. condone the needs of external and internal users of accounting information. c. detect forms of Business Entity and justify the meaning of entity. d. rationalize the categories of business organisations. (i) Sole Proprietorships Their characteristics, benefits and limitations. (ii) Partnerships Their characteristics, benefits and limitations. (iii) Limited Liability Companies Their characteristics, benefits and limitations e. formulate the differences mingled with Partnerships and limited liability companies. f. exempt the endeavor of financial statements by 1AS 1. g. justify the accounting assumptions and concepts. h. Outline the components of financial statements. i. target the main users of financial information and their information needs. . Identify and explain accounting concepts an d conventions. k. Outline the qualitative characteristics of financial statements. l. Outline the elements of financial statements and the basis of their recognition and their measurements. m. formulate Accounting Standards their part, standards position process, IASB membership. a. Specify why an entity maintains financial records and prepares financial statements. b. Identify the sources of information for the preparation of accounting records and financial statements. c.Record and account for transactions and events resulting in income, expenses, assets, liabilities and equity in accordance with the appropriate basis of accounting and the laws, regulations and accounting standards applicable to the financial statements. d. Record and account for changes in the ownership structure and ownership interests in an entity. 1. 2 Maintaining Financial Records 6 Institute of Chartered Accountants, Ghana Financial Accounting Fundamentals PAPER 1. 1 Financial Accounting Fundamentals MAIN TOPIC SYLABUS CONTENT (Contd. ) 1. 3 Principles of Double Entry and Books of Prime Entry a.Understand and apply the accounting equation. b. Identify the elements of financial statements Types, definitions, congenatorships and distinctions. The nature of transactions. c. Outline the contents and dissolve of different types of business documentation, including quotation, sales order, purchase order, goods received note, goods dispatched note, invoice, statement, credit note, debit note, remittance advice, receipt. d. Identify the main types of ledger accounts and books of prime entry (cash books, the sales day book and the sales ledger, the purchases day book and the purchases ledger) and understand their nature and function. . Understand and illustrate the uses of ledgers and the posting of journal entries into ledger accounts. f. Identify the main types of business transactions e. g. sales, purchases, payments, receipts. g. Identify correct journals from given narrative. h. Il lustrate how to balance and close a ledger account. 2. 1 Adjustments to accounting records and financial statements a. Identify and explain the types of errors that can affect trial balance and its effects on financial statements. (i) relieve how these can be corrected. (ii) apologize the habit of suspense accounts. iii) exempt the uses of journals to correct errors in draft financial statements. b. apologize the accounting for the sideline in financial statements (i) receiveds/inventories. (ii) Tangible non-current assets. (iii) Fixed Assets and Depreciation. (iv) Intangible non-current assets and amortisation. (v) Accruals and prepayments. (vi) Debtors/receivables and trade creditors/ payables. (vii) Provisions and contingencies. (viii) Returns inwards and outwards. (ix) Discount received and discount allowed. (x) Capital and revenue expenditures. Institute of Chartered Accountants, Ghana 7Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 1 Financial Accounting Fun damentals MAIN TOPIC political program CONTENT (Contd. ) xii. Bad debts, purveys for doubtful debts, preparednesss for discounts on debtors. c. Prepare Bank Reconciliation Statement. 2. 2 Accountingfor Non-current Assets a. puff the accounting treatment for property, plant and equipment in accordance with IAS 16. b. pardon the methods and policies of depreciation (limited to straight line, reducing balance and revaluation methods). c. relieve the reasons for depreciation and accounting for provision for depreciation. . Account for disposal of property, plant and equipment using ledger accounts. e. Account for recognition of Intangible assets in accordance with IAS 38. f. Explain the differences between depreciation and amortization. a. Prepare and present income statement and balance planer of a sole trader i Manufacturing Account ii Trading Account iii Profit and Loss Account iv Balance Sheet a. find the procedure for forming a partnership. b. Outline the provisions in the Incorporated Private partnership represent 1962 (Act 152) in relation to the preparation of partnership accounts. c.Prepare final accounts of partnership Trading, profit and loss account Profit and loss appropriation account Partners capital and current accounts Balance sheet d. Explain the procedure for admission of a partner. e. Explain the methods of valuing goodwill. f. Explain revaluation in relation to an admission of a new partner, change in the profit sharing ratio, or a retirement/death. 3. 2. Preparation of Financial Statements of a Partnership Firm 3. 1 Preparation of Financial Statements of a Sole dealer 8 Institute of Chartered Accountants, Ghana Financial Accounting FundamentalsPAPER 1. 1 Financial Accounting Fundamentals MAIN TOPIC course of instruction CONTENT (Contd. ) g. Prepare partnership accounts for an admission, change in the profit sharing ratio, or a retirement. h. Prepare accounts for simple dissolution (excluding piecemeal realisation). 3. 3 Preparat ion of Financial Statements of a company a. pick up between. Ordinary Share and Preference Share. Authorised Capital and Stated Capital. Income Surplus and Capital Surplus. b. follow the nature and types of debentures. c. Explain the nature and purpose of final accounts of a limited liability company. . Draft company final accounts for internal use. e. Define cash come down and explain cash flow statement. f. place the usefulness of cash flow statement. g. Prepare a simple cash flow statement in accordance with IAS 7. a. Identify the type of entity that is a non-profit making organisation. b. Identify the purpose of such organisations. c. Outline the differences between income statement for non-profit making organisation and income statement for a profit making business. d. Prepare receipts and payments account, income statement and a balance sheet for a non-profit making organisation.Prepare Income statement and balance sheet of an entity from incomplete records. 4. 1 Prepar ation of Financial Statements for Not-for-Profit Organisations 4. 2 Preparation of Financial Statements fromIncomplete Records 5. Accounting for a. Explain joint venture. Specialised b. break up between joint venture and partnership. Transactions Joint Venture c. Explain how to make entries in the accounts of a joint venture. Investments d. Explain investments accounts, and how they are Royalties used. Branch Institute of Chartered Accountants, Ghana 9 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. Financal Accounting Fundamentals MAIN TOPIC SYLLABUS CONTENT (Contd. ) e. Record transactions in investment accounts. f. Explain royalties, minimum rent and short workings. g. Record royalties in the books of the lessee and lessor (including sub-royalties or leases). h. Prepare departmental and weapon accounts (excluding foreign branches). 6. Introduction to Financial Statement Analysis a. reason basic financial ratios from given income statement and/or balance sheet Profi tability Ratios fluidity (Short term solvency) Ratios Gearing/Leverage Ratios Activity/Efficiency Ratios Investment Ratios b.Explain the meaning and uses of the above ratios. c. Outline the limitations of financial ratios as tool for performance measurement. LIST OF RECOMMENDED text edition 1. 2. 3. ICAG deal Text. Wood F. Business Accounting 1 Financial Times. Millichamp, R. A. (1992) Foundation Accounting DPP. RELEVANT LEGISLATIONS 1. 2. Companies Code, 1963, Act 179. Incorporated Private Partnership Act 1962, Act 152. 10 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Business Management 1.OBJECTVES AND LEARNING OUTCOMES At the end of the course, candidates should be able to explain the objectives of business and the functions of management explain the major concepts, theories and techniques in the field of general management apply the concepts, theories and techniques in analysing and providing solutions to business problems hear the non-ho mogeneous available areas of an organisation and how they relate to one another describe the purlieu within which businesses operate appraise the impact of economic, social, political, legal, technological and global changes in the environment on management decisions. . FORM OF enquiry The examination will be a three-hour paper of seven (7) questions. Candidates will be required to answer any five (5) questions. 3. SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should lean the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be lithe variations in some instances as they serve as a guide only.Syllabus Coverage Introduction to Management Planning and Decision Making Organizing, Motivation, Leadership, Controlling Communication Groups and Team Work Human Resource Management Marketing Management Operations Management TOTAL Weighting (%) 10 15 30 15 10 10 10 100 11 Institute of Chartered Accountants, Ghana Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Introduction to Management a. Explain the objectives of business organisations. b.Explain the four (4) functions of management and state the other major elements in the management process. c. Explain the office staffs of management. d. Explain the types of skills needed by managers. e. Describe how managerial jobs differ according to the levels and areas of responsibility. f. Explain the phylogenesis of management theories. g. Explain how socio-cultural, legal, economic, political and technological and global changes influence businesses. h. Explain the concept of stakeholders and distinguish between primary and secondary stakeholders. i. Explain the nature of the motive and interests of takeholders. j. Explain the social responsibility of businesses. Planning and Decision Making a. Define and differentiate between the following key terminologies Planning Forecasting Objective setting Policies Programmes Schedules Procedures Budgeting b. State and describe types of plans. c. Categorise the types of planning at the different levels of management. d. Explain the planning process. e. Explain the steps in the decision making process. f. Appraise preference solutions and select appropriate solution(s) to organisational problems. g.Evaluate and apply skills necessary for effective decision making as regards the entire spectrum of management and organisation. 12 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Organising a. Describe the elements that make up organisational structure and its related units. b. Develop organisational charts and explain their importance. c. Describe the main approaches to job design. d. Explain the major methods of vertical co-ordination, including formalisation, span of ma nagement, centralization vs. ecentralisation, delegation, line and staff positions. e. Analyse delegation, authority, responsibility and accountability and their impact on motivation and organisational culture. f. Explain, analyse and evaluate the concept of coordination as an integral part of management. g. take between types and conditions for business and organisational integration. h. Identify and state the characteristics and transactionhips associated with planning, organising, leading and checkerling in organisations. i. Appraise the role and importance of co-ordination. a.Define leadership. b. Explain the major sources of a leaders power. c. Explain the following leadership theories Traits theory demeanoral theory adventure theory Managerial grid Tannenbaum and Schmidt leadership continuum Fieldlers contingency theory Situational leadership Path-goal theory. Contemporary theories d. Explain the various leadership styles Leadership Institute of Chartered Account ants, Ghana 13 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Motivation . Explain the theories of motivation. b. Describe the role of behavioral aspect of motivation. c. Evaluate the limitations to motivation theories. d. Describe how teamwork and consultative management are used as motivational tools. e. Outline the linkage between motivation and output. a. Explain the nature and importance of organizational control. b. Describe the control process. c. Discuss the different organisational control process. d. Explain the different control methods. a. Explain the meaning and role of communication in modern organisations. b.Explain the main forms of communication. c. Describe the communication process. d. Distinguish between organisational communication channels and explain their role in managing effectively. e. Discuss the roles of negotiation in the management process both within an organisation and with exte rnal bodies. f. Identify and describe barriers to communication. a. Define and analyse the concept of management groups, inter or intra-group relations and how motivation influences group/managerial behaviour. b. Analyse and evaluate the concept of team approach in directing organisational activities. . Explain how groups are formed within organisations and how this affects performance. d. Explain the nature, functions and purposes of social groups in organisations. e. Explain inter-personal and inter-group relations and distinguish between them. f. Define and analyse the concept of organisational culture and business etiquette in organisations. Controlling Communication Groups and Teamwork 14 Institute of Chartered Accountants, Ghana Business Management PAPER 1. 2 Bussiness Management MAIN TOPIC (Contd. ) SYLLABUS CONTENT Human Resource Management a.Explain the role of the human resource management function and its relationship to other parts of the organisation. b. Describe the re cruitment process. c. Distinguish between training and development and show their relationship. d. Explain the meaning and effects and/or application of job evaluation, staff appraisal, performance measurement and evaluation promotion and demotion. e. Explain the disciplinary procedure in human resource management. f. Explain compensation clays and the significance of indirect compensation. g. Explain the concept of organisational health and safety and its benefits. . Distinguish between duties of employers and employees responsibilities. Marketing Management a. Explain the marketing concept. b. Outline the strategic roles of marketing in organisations. c. Explain the main elements of a marketing plan and importance. d. Explain segmentation and targeting of markets and positioning of products within markets. e. Explain the elements of the marketing mix and their application. f. Describe the role of technology in modern marketing. g. Explain the differences and similarities in the m arketing of products and services. h. Design and implement a pricing strategy. . Explain customer care strategies as a means of achieving competitive advantage and their relationship with total quality management. Institute of Chartered Accountants, Ghana 15 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 2 Bussiness Management (Contd. ) MAIN TOPIC SYLLABUS CONTENT Operations Management a Explain the following types of production process chore production Batch production Mass/continuous/flow production b. Explain and compare the following methods of plant layout Process layout Product layout Fixed-position layout. c.Discuss the role of operations management in organizations. d. Explain the concept of quality and total quality management. e. Explain how the quality of products and services can be assessed, measured and improved. RECOMMENDED/ commendation TEXTS 1. 2. 3. 4. 5. ICAG Study Text. Appleby P. O. Modern Business Administration, Pitman. Boachie-Mensah, F. O. Essentials of Management, Woeli Publishing Services. Cole, G. A. Management Theory and Practice. DP Publications. Marfo-Yiadom, E. Principles of Management, Woeli, Publishing Services. 16 Institute of Chartered Accountants, GhanaEconomics PAPER 1. 3 Economics 1. OBJECTIVES AND LEARNING OUTCOMES On completion with this paper, candidates should be able to explain the nature and scope of economics define and explain the fundamental problems of satisfying wants from scarce resources with alternative uses or describe resources allocation in relation to competing wants explain and offer illustrations of the main techniques of economic analysis as a basis for business decisions identify how macroeconomic variables and organisation economic policies affect and/or influence an organisation. explain the main features and contemporary trends of the Ghanaian economy and apply the concepts and techniques of economics to current business issues. 2. FORM OF EXAMINATION The examination will b e a three (3) hour paper of seven (7) questions, five (5) of which should be answered by candidates. The paper will consist of both (2) sections, A and B. Section A will consist of four (4) questions on microeconomics and Section B will consist of three (3) questions on macroeconomics.Candidates are required to answer three (3) questions from Section A and two (2) questions from Section B. 3. SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. Institute of Chartered Accountants, Ghana 17 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 3 Economics SYLLABUS COVERAGE (Contd. ) WEIGHTING (%)Basic Economics Concepts and Systems Price and sum determination Elasticity concepts Theory of consumer behaviour Theory of p roduction Theories of costs and revenues Theory of the Firm issue income accounting notes and banking Public Finance International Trade TOTAL 7 10 8 10 10 5 10 10 10 10 10 100 18 Institute of Chartered Accountants, Ghana Economics PAPER 1. 3 Economics subsection A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT Basic Economic Concepts and System a. Define and explain economics in relation to production, dissemination. b. Consumption of goods and services. c.Explain the concepts of scarcity, choice and scale of preference. d. Explain the concept of opportunity cost in relation to individuals, firms and government. e. Identify the main characteristics of the various economic systems and explain their merits and demerits. f. Discuss the role of economics in business decision making. a. Define demand and supply and identify the types. b. Identify and explain the determinants of quantity demanded and supplied. c. Explain individual and market demand and supply using tables, gra phs and equations. d. Distinguish between a change in quantity demanded and a change in demand. . State and explain the determinants of a change in demand and a change in quantity demanded. f. Distinguish between a change in quantity supplied and a change in supply. g. State and explain the determinants of a change in supply and a change in quantity supplied. h. Identify and explain the determinants of a change in supply and a change in quantity supplied. i. Explain the concepts of remainder value and quantity via demand and supply with the aid of tables and diagrams. j. Determine equilibrium price(s) and quantity(ies) mathematically for a single and a two-commodity model. . Define and explain maximum (ceiling) and minimum (floor) price legislations and give reasons for legislating prices. l. State and explain the consequences of price legislation with the aid of diagrams. m. Explain the remedies for the consequences of price legislation. Institute of Chartered Accountants, Ghana 19 Price and Quantity Determination Proposed Sylabus for ICAG Qualifying Examinations SECTION A Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT Elasticity Concepts a. Distinguish between own price (point/arc), cross and income elasticities of demand. b. take aim and interpret coefficients of own price (point/arc), cross and income elasticities of demand. c. Identify and explain the determinants of price elasticity of demand. d. prognosticate and interpret coefficients of price (point/ arc) elasticity of supply. e. Identify and explain the determinants of price elasticity of supply. f. Explain how elasticities are used in pricing decisions, production and incidence of taxation. a. Define and explain the concept of utility. b. Define and graph total, average and borderline utilities and calculate average and marginal utilities from total utility. . State and explain the law of diminishing marginal utility. d. Use the law of diminishing marginal utility to explain equilibrium of the consumer (one commodity, two or more commodities) and derive the demand curve. e. Use the equilibrium conditions for two commodities to retrieve the equilibrium quantities consumed via tables. f. Use the law of diminishing marginal utility to resolve the paradox of value. g. Explain substitution and income effects and use them to show the curvature of demand curves for normal, subordinate and Giffen goods. a.Identify, define and explain the factors of production. b. Explain fixed and variable inputs in relation to short and coherent run production periods. c. Define and explain total, average and marginal products. d. Calculate marginal and average products from total product and represent total, average and marginal products graphically. e. Identify and explain the relationships between total, average and marginal products. Theory of Consumer Behaviour The Theory of Production 20 Institute of Chartered Accountants, Ghana Economics SECTION A Microeconomics MAIN TOPIC (Contd . ) SYLLABUS CONTENT . State and explain the law of variable proportions and use the law to explain the full stops of production. g. Explain the long run behaviour of output (returns to scale). a. Distinguish between Private and social costs. underlying and explicit costs. b. Define, tabulate, represent graphically and explain the inter-relationship of short run costs (fixed and variables costs total, average and marginal costs). c. Use the law of diminishing returns to variable proportions to explain the conventional shapes (Ushapes) of the average variable cost and marginal cost curves. d.Explain and represent graphically, long run costs. e. Explain economies and diseconomies of scale. f. Use economies and diseconomies of scale to explain The position of the long run average cost curve in cost-output, space. The conventional shape of the long run average cost curve. g. Define and explain total, average and marginal revenues. h. Explain the behaviours of total, average and ma rginal revenues in both price-taking and pricemaking industries. a. Define the concept of profit in relation to normal and economic profits. b. Distinguish between accountants and economists profits. . Distinguish between economic profit and economic loss. a. Distinguish among factory, firm and industry. b. Explain the general concept of equilibrium of the firm. c. Define the various forms of market structures (perfect competition, monopoly, monopolistic competition) and identify the characteristics of each of them. d. Explain the short run and long run positions of the Institute of Chartered Accountants, Ghana 21 Theories of Costs and Revenues Theory of the Firm Proposed Sylabus for ICAG Qualifying Examinations SECTION B Microeconomics MAIN TOPIC (Contd. )SYLLABUS CONTENT perfectly competitive firm, monopolistic firm and monopolistic competitive firm. e. Define oligopoly and identify its characteristics. f. Define, distinguish and give reasons for regulation, deregulation and priva tization of firms. National Income Accounting a. Explain the stock and flow concepts of measurement. b. Define national income. c. Explain the following methods of measuring national income Expenditure approach Product (output) approach Income approac d. Identify and explain the problems and factors that influence the size of national income. e.Explain the relevance of the size of national income. f. Define consumption, savings, investment, government expenditure, imports and exports. g. Identify and explain the determinants of consumption savings, investment, government expenditure, imports and exports. h. Explain income determination, equilibrium income, the multiplier and the basic accelerator. i. Compute equilibrium income, tax, disposable income and savings. j. Define and explain aggregate demand and aggregate supply. k. Illustrate changes to equilibrium level of national income using aggregate demand and aggregate supply analysis. . Define, identify types and explain measur es for tackling unemployment. a. Identify and explain the origins, nature, features and functions of money. b. Identify types of banks and explain the functions of central and commercial banks. c. Explain credit creation by commercial banks. d. Identify and explain the instruments of monetary policy. e. Explain Monetary Policy Formulation through the Monetary Policy Committee (MPC). Money and Banking 22 Institute of Chartered Accountants, Ghana Economics SECTION B Microeconomics MAIN TOPIC (Contd. ) SYLLABUS CONTENT f.Explain the effects of monetary policy on business organizations. g. Define stock exchange and explain its functions and importance. h. Define and explain demand and supply of money and the three motives of holding money. i. Define and explain ostentatiousness and the Philips curve. Public Finance a. Identify and explain the sources of government revenue b. Identify and explain the various items of government expenditure. c. Define National Budget and explain equilib rate budget, deficit budget and surplus budget. d. Identify and explain sources of financing budget deficit and its economic implications. . Explain Fiscal Policy and identify its tools. f. Define tax and explain the principles (progressive, regressive and proportional) and incidence of taxation. g. Outline the merits and demerits of direct and indirect taxes. h. Define national debt and identify the sources of national debt accumulation. i. Explain the arguments for and against increase in national debt. j. Identify and explain ways of managing the national debt (e. g. debt swap, Highly Indebted Poor Countries (HIPC). Initiative, conversion of national debts into bonds etc. ) a. Give reasons for outside(a) trade. . Explain the concept and consequences of globalisation for business and national economies. c. Explain the concept of balance of payments and its implications for business and for government policy. d. Identify and explain the various components of balance of payments. e . Distinguish between balance of payments deficit and balance of payment surplus. Institute of Chartered Accountants, Ghana 23 International Trade Proposed Sylabus for ICAG Qualifying Examinations MAIN TOPIC SYLLABUS CONTENT f. Explain the causes and effects of fundamental imbalances in the balance of payments. g.Identify and explain exchange rate systems (fixed, flexible and managed float). h. Analyse the interrelationship between exchange rate and current accounts balance. i. Identify and explain types of international trade controls, arguments for and against trade control and liberalization. j. Explain the role of major institutions (e. g. World Bank, International Monetary Fund) in fostering internal development and economic stabilization. RECOMMENDED/REFERENCE TEXTS 1. 2. 3. 4. 5. ICAG Study Manual on Economics Begg, D. Economics, McGraw-Hill Colander, D. C. Microeconomics, McGraw-Hill Colander, D. C. Macroeconomics, McGraw-Hill Pomayie, P.Macroeconomics, An Introductory Text 24 Institute of Chartered Accountants, Ghana Management breeding Systems PAPER 1. 4 Management data System 1. OBJECTIVES AND LEARNING OUTCOMES This paper is concerned with the strategic importance of information systems to organisations in the modern business environment. It recognises that although may organisations employ Information technology (IT) Professionals, Chartered Accountants now have a key role to play in the provision of information that adds significant value to the ever-increasing volume of data treat for management decision making.At the end of the course, candidates should be able to Develop an understanding of general information system concepts and practices and technological environment of the contemporary organisation. Apply a systematic approach to the use of information technology in organisations. Appraise the technological environment in order to support the practical aspects of information provision and usage. Identify and apply project management tec hniques and develop project proposals. 2. FORM OF EXAMINATION The examination will be a three-hour paper of six (7) questions make up of Sections A and B.Section A will consist of a compulsory case study question of 40 marks. Section B will consist of five (5) questions out of which candidates will be required to answer three (3) questions. 3. SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. Institute of Chartered Accountants, Ghana 25 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. Management Information System SYLLABUS COVERAGE Systems Theory and Practice Information Systems Computers in Communication Information Technology and the Professional Accountant Business Strategy and IS/IT conjugation Project Ma nagement TOTAL MAIN TOPIC SYLLABUS CONTENT (Contd. ) WEIGHTING (%) 10 35 10 20 10 15 100 1. Systems Theory and Practice Systems concepts and definition a. Explain systems concepts and give examples of real systems. b. Explain the essence of systems approach to problem solving. c. Describe the holistic features of systems. d. Differentiate between system boundaries and environments. . Explain the following system types Open Closed Adaptive Cybernetic Deterministic Probabilistic (or stochastic) System and Subsystems a. Explain the relationships among subsystems in a typical business context. b. Apply the theory of sub-optimality and systems objective. c. Explain the need for system control and feedback. d. Explain the following system control elements Standard Comparators Sensor Effectors e. Represent the control mechanisms diagrammatically. 26 Institute of Chartered Accountants, Ghana Management Information Systems PAPER 1. 4 Management Information System (Contd. MAIN TOPIC SYLLABUS CONTENT 2. Information Systems Application of Information systems in the organisation a. Define and distinguish between data and information. b. Explain the attributes of good information, i. e. accuracy, timeliness, brevity, conciseness, reliability, etc. c. Explain the concept of the value of information. d. Explain the term, Information Technology. e. Explain the role and uses of information in organisation i. e. competitive advantage and support of managerial functions. f. Explain the different types of information systems, i. e. TPS, MIS, DSS, EIS, and ES. g.Describe the three levels of information in relation to the levels of management. Traditional file Structures and storage Media a. Explain the terms, computer file record field record key. b. Explain the relationship and difference between transaction and master files. c. Describe the key methods of file organisation and access. d. List the characteristics and explain the workings of the different storage media m agnetic tape, magnetic disc, diskette, CD-ROM, DVD, Zip disc, dart disk, etc. entropybase Design and Implementation a. Define database and explain the importance of databases in the operations of an organisation. . Describe the types and enumerate the advantages and disadvantages of database models hierarchical, network, relational and object-oriented. c. Explain with examples, components of a Database Management System (DBMS) hardware, software, people (users, designers, administrators, procedures, data/information). d. Apply database tools to real life systems Entities, attributes and Relationships. e. Explain entity relationship modeling, data analysis and entity life history. Institute of Chartered Accountants, Ghana 27 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 4 Management Information System (Contd. )SYLLABUS CONTENT 2. Information Systems (Contd) Computer Hardware and Software Concepts a. Explain the hardware concepts of the computer and list its benefits and shortcomings. b. Describe the categories/generations of computers super, mainframe, mini and microcomputers. c. Draw the basic functional units of a computer system and show how they interrelate CPU, input/output devices (peripheral devices). d. Describe the various types of computer entrepot semi-conductor memory, cache memory, video memory and flash memory. e. Explain operating systems single user, multi user. f. Explain system software and describe its components. . Explain the functions of the operating system (os). h. Explain Applications software and describe Packagres. Bespoke software, special purpose software, general purpose software. i. Viruses, worm. j. Explain with examples the evolution of computer programming languages machine language, assembly language, high level language, 4GL and 5GL. g. Explain the concept of software testing unit testing, static testing, dynamic testing and regression testing. h. Explain the use of the following CASE tools Prototyp ing tools Query language. i. Describe the qualities of a good programme.Representation of processes in computer Systems a. Draw diagrams to represent computer processes using the following tools Programme flowchart Decision trees Decision tables Data flow diagram Human Computer Interfaces (HCI) a. Explain the various types of communication between users and computer systems command driven, menu 28 Institute of Chartered Accountants, Ghana Management Information Systems PAPER 1. 4 Management Information System (Contd. ) SYLLABUS CONTENT driven, GUI, user-friendliness. b. Internal and External design of systems. 2. Information Systems (Contd) Systems Development Life-cycle (SDLC) a.Explain the following phases of the SDLC difficulty identification Feasibility studies System investigation System analysis System design Implementation Post-implementation review. b. Describe the methods required to measure the success of the system. c. Apply merged methodology to system dev elopment. bear upon Systems Options a. Describe the processing options and their characteristics (batch, real-time, demand, online, distributed, centralized and decentralized processing). IS/IT in the organisation a. Explain the role and describe the staffing, functions and responsibilities of the IS/IT department in an organization. . Explain the principles of facilities management and outsourcing. Controls and Security of Computer Operations a. Explain the principles of system security and control. b. Explain the under-listed control measures Administrative controls Input and output controls Operational controls General controls substantiation and Validation c. Explain the principles of hardware/software maintenance (preventive, corrective, adaptive and perfective). Institute of Chartered Accountants, Ghana 29 Proposed Sylabus for ICAG Qualifying Examinations PAPER 1. 4 Management Information System (Contd. )MAIN TOPIC SYLLABUS CONTENT Data communication Principles, Objecti ves and Uses 3. Computers in Communications a. Explain the importance of computer networks and distributed processing. Computers in Communication a. Explain the following computer network types Wide area Metropolitan area Local area b. Explain computer network topologies and protocols. c. Internet, Intranet, Extranet. Office Automation a. Explain sanction automation. b. Explain E-Business c. Explain the following E-Commerce E-Mail Telecommuting E-Banking Telesales Video conferencing Tele conferencing EDI E-Learning 4.Information Technology andthe Professional Accountant Information Technology and the Contemporary Accountant a. Explain how information technology influencing the ways in which organization are structured, managed and operated. b. Identify the required level of knowledge of information technology by professional accountants which can be applied to practical problems in the organization. Information Technology Knowledge and Skills Areas a. Explain the role o f the accountant in information technology concepts for business systems under the following 30 Institute of Chartered Accountants, Ghana Management Information SystemsPAPER 1. 4 Management Information System (Contd. ) MAIN TOPIC SYLLABUS CONTENT The professional accountant as a user information technology. The professional accountant as a manager information system. The professional accountant as a designer business information systems. The professional accountant as an evaluator information systems. 5. Business Strategy and IS/IT Alignment of of of of a. Explain the approach that an organisation may follow to formulate its strategic business objectives. b. Identify current trends in information technology and the opportunities they offer to organisations. c.Distinguish between a business strategy and an information systems strategy. d. Identify responsibility for the ownership of this strategy. e. Explain the use of IS/IT for competitive advantage, using Porters model. a. Defi ne Project Management and explain the terms of reference of a project. b. Explain the roles and responsibilities of staff who manage and participate in projects. c. Explain roles and responsibilities of the project manager. d. Explain the advantages of using a project management software package in the project management process. e. Construct and analyse a project network. f. Construct and interpret a Gantt chart. . Project Management LIST OF RECOMMENDED TEXT 1. 2. 3. 4. 5. 6. 7. 8. ICAG Study Manual. Stubbe, R. Computers and Information Systems. French, C. A. Data Processing and Information Technology 9th Edition. Landon, K. C. Information Systems and the Internet. Kenneth E. Kedeall, K. E. Systems Analysis and Design. Senn, J. A. Information Systems in Management. Wadsworth. Anderson, J. A. Data Processing Vol. 1 & 2 M & E Pitman. French, C. S. Data Processing and Information Technology. DPP. Institute of Chartered Accountants, Ghana 31 Proposed Sylabus for ICAG Qualifying Examina tions PROFESSIONAL PART 2 PAPER 2. Quantitative Tools in Business 1. OBJECTIVES AND LEARNING OUTCOMES At the end of the course, candidates should be able to Develop the understanding and application of statistical and mathematical techniques needed to solve business and accounting problems. Explain and interpret the role of the relevant aspects of quantitative techniques needed to solve business and accounting problems. Make the most informed decision in business and accounting scenarios. 2. FORM OF EXAMINATION The examination will be a three-hour paper of seven (7) questions in all out of which candidates are required to answer any 5 questions. . SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. SYLLABUS COVERAGE Dat a collection and interpretation Decision making under risk and uncertainty Forecasting techniques Planning and control techniques Optimisation and decision making techniques TOTAL 32 Institute of Chartered Accountants, GhanaWEIGHTING (%) 10 20 25 25 20 100 Quantitative Tools in Business PAPER 2. 1 Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) 1. Data Collection and Interpretation a. Collect statistical data using the various sampling methods. b. Classify and tabulate data in the form of frequency distribution table. c. Present data pictorially in the form of bar chart, pie chart, give, histogram, Z-Chart, Gantt chart, Lorenz curve, etc. d. Calculate measures of central tendencies ( mean, median and mode) from a given data. e.Calculate measures of dispersion (standard deviation, range, mean deviation, variation, coefficient of variation, quartile deviation and skewness, etc) from a given data. a. Define probability. b. Distinguish between equally probable and mutually exclusive outcomes. c. Explain marginal, joint and qualified probabilities. d. Apply Bayes theorem to problem solving. e. Draw probability trees. f. Distinguish between dependent and independent events. g. Explain the laws of probability. h. Calculate and interpret expected value and standard deviation of a discrete random variable. . Use decision tree to solve problem. j. Prepare a conditional pay-off table. k. Use normal distribution to solve problems. Matrix Algebra a. Present ground substance information in a tabular form. b. Solve matrix algebra addition, subtraction, scalar multiplication, matrix algebra. c. Solve problems involving matrix inversion. d. Solve simultaneous equations by matrix algebra. e. Solve problems involving probability transition matrices. 2. Decision Making Under Risk and Uncertainty Institute of Chartered Accountants, Ghana 33 Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) 3. Forecasting Techniques Simple linear Regression Analysis a. Draw scatter diagram. b. Find the equation of the line of best fit using the east squares method. c. Draw the line of best fit on a scatter diagram. d. Interpret the regression coefficient. e. Use the regression equation to forecast. f. Use the computer output to test for regression (t-test, ftest). Simple analogue Correlation Theory a. Distinguish between regression and correlativity. b. Explain negative zero and positive correlation. c.Distinguish between product-moment and Spearmans rank correlation coefficient. d. Calculate and interpret product-moment and Spearmans correlation coefficients. Time Series Analysis a. Explain time series. b. State and explain the components of a time series. c. Determine the trend using the methods of moving averages and least squares. d. Apply additive and multiplicative models to determine average seasonal variations. e. Use time series to forecast. 4. Planning and Contro l Techniques Network Analysis a. Distinguish between detailed path method (CPM) and programme evaluation and review techniques (PERT). . Draw network diagrams using activity-on-arrow and activity-on nod models. c. Explain optimistic, most likely and pessimistic times for an activity. d. Calculate the expected duration and variance for an activity. e. Determine critical path and project duration. f. Distinguish among and calculate total float, independent float and free float. 34 Institute of Chartered Accountants, Ghana Quantitative Tools in Business PAPER 2. 1 Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) g. Calculate the probability and minimum time for completing a project. h.Crash a project using cost-time slope (lease incremental cost) concept. i. Use network analysis to allocate resources. Stock Control a. State the importance of keeping stock. b. Distinguish the simple economic order quantity (EOQ), gradual replenishment and discounts models. c. Use th ese models to calculate the optimum quantity and determine reorder levels and safety stocks. d. Use the discrete probability to calculate the optimum quantity and determine reorder levels and safety stocks e. Use the normal distribution to determine the reorder levels, service levels and safety stocks. 5.Optimization and Decision Making Techniques Differential Calculus a. Differentiate polynomial functions (first and second derivatives only). b. Determine the turning points of a function (maximum, minimum, point of inflection). c. Use differential calculus to maximize revenue and profits (with or without tax) and to minimize cost (including the stock control, EOQ problem). d. Use differential calculus to determine point elasticity of demand. Integral Calculus a. Derive a function given its derivative. b. Apply integration to business problems. Linear Programming a. Formulate the patriarchal linear programming problem. . Formulate the dual linear programming problem. c. Solve the l inear programming problem (involving two variables) graphically. d. Set the initial simplex tableau. Institute of Chartered Accountants, Ghana 35 Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. 1 Quantitative Tools in Business MAIN TOPIC SYLLABUS CONTENT (Contd. ) e. Carry out the first iteration of the simplex tableau. f. Interpret the final simplex tableau. g. Explain limiting factors (scarce resources) and their shadow prices. h. Carry out sensitivity analysis on the graphical and simplex solutions.LIST OF RECOMMENDATION TEXT 1. 2. 3. ICAG Study Text Francis, A. Business Mathematics and Statistics. Continuum. Lucey, T Quantitative Techniques. Continuum. 36 Institute of Chartered Accountants, Ghana Audit And Internal Review PAPER 2. 4 Audit and Internal Review 1. OBJECTIVES AND LEARNNG OUTCOMES The course is aimed at developing the candidates knowledge and understanding of the audit process from the planning peak through to the reporting stage and the techniques used i n the conduct of internal and external audit. At the end of the course, candidates should be able to 2. xplain the nature , purpose and scope of an audit state and explain the purposes of the regulatory framework within which the auditors work is conducted outline the qualification, functions, responsibilities and rights of an auditor describe the audit procedures required at the planning stage of an audit explain the techniques for collecting and evaluating audit evidence explain the techniques for collecting and evaluating audit evidence explain and apply basic auditing concepts like internal controls, sampling, conformance test, substantive test, weakness test, etc assess audit risk and design appropriate audit procedures draw valid conclusions from the results of audit tests and prepare various reports relating to audit assignments. FORM OF EXAMINATION The examination will consist of three-hour paper. Candidates are to answer all the five (5) questions set. 3.SYLLABUS WEIGHTING GRID This grid shows the relative weightings of topics within this subject and should guide the relative study time spent on each. The marks available in the assessment will equate to the weightings below. However, there might be slight variations in some instances as they serve as a guide only. SYLLABUS COVERAGE Nature, Purpose and Scope of an Audit. The Regulatory Framework of Auditing and Professional Considerations Audit Planning. Evidence Gathering Internal controls and Evaluation of Control Risk Internal Audit and Other Assurance Engagements Conduct of Audit and Assurance Concept, process and subscribe for Assurance Reporting Framework TOTAL WEIGHTING % 20 20 20 15 10 15 100 37Institute of Chartered Accountants, Ghana Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. 4 Audit and Internal Review MAIN TOPIC SYLLABUS CONTENT (Contd. ) 1. Nature, Purpose and Scope of an Audit a. Define an audit. b. Explain the purpose/general objectives of an audit (distinguis h between primary and secondary objectives). c. poke into the advantages of auditing to stakeholders. d. Explain and distinguish between the following types of audit Internal/External Statutory/non-Statutory Financial/Operational Interim/Continuous /Final e. Explain the inherent limitations of an audit. f. Explain the concept of expectation gap. a.Describe the nature, purpose and scope of auditing standards and auditing guidelines (International auditing Standards). b. Explain the procedure for developing auditing standards and auditing guidelines (International Auditing Standards). c. Examine the statutory and ethical considerations relating to acceptance and continuance of audit assignments. d. Assess the code of professional conduct independence, objectivity, integrity, duty of care, confidentiality and conflict of interest. e. State the qualification of an auditor. f. State persons change for appointment as an auditor. g. Describe the procedure for appointing and removing an auditor. h.Examine the duties, responsibilities, powers and rights of auditors. i. Describe the process of accepting audit engagements. j. State and explain the contents of letter of engagement. k. Examine the legal liabilities of the auditor. l. Explain how auditors are remunerated. m. Explain management and auditors respective responsibilities for the presentation of financial statements and detection of fraud and error. 2. The regulatory framework of auditing and Professional Considerations 38 Institute of Chartered Accountants, Ghana Audit And Internal Review PAPER 2. 4 Audit and Internal Review MAIN TOPIC SYLLABUS CONTENT (Contd. ) 3. Basic Principles and Concepts of Auditing a.Explain the fundamental principles and concepts of auditing whirl through test Weakness test Compliance test Substantive test Vouching Audit risk Audit sampling judgmental and statistical, and sample plectron methods Systems based audit Materiality True and fair view Directional and rot ational testing Systems and risk based audit. 4. Auditing Planning and Evaluation a. b. c. d. Explain the purpose and advantages of audit planning. Describe the process of audit planning. Prepare audit planning memorandum. Examine analytical review procedures as a planning technique. e. Evaluate exploratory materiality levels and audit risks. f. Evaluate the adequacy of accounting system. 5. Internal Controls and Evaluation of Control Risk a. State the reasons for organisations having effective systems of control. b. Identify the fundamental principles of effective control systems. c. Identify the main areas of a business that need effective control systems. d.Identify the components of internal control in both manual and IT environments, including the overall control environment and Control Procedures preventive, detective and corrective controls internal audit as a control factor e. Define and classify different types of internal control, with particular emphasis upon those wh ich impact upon the quality of financial information. f. Show how specified internal controls mitigate risk and state their limitations. Institute of Chartered Accountants, Ghana 39 Proposed Sylabus for ICAG Qualifying Examinations PAPER 2. 4 Audit and Internal Review MAIN TOPIC SYLLABUS CONTENT (Contd. ) 5. Internal Controls and Evaluation of Control Risk (Contd) g. Identify internal controls for an organisation in a given scenario. h. Identify internal control weaknesses in a given scenario. i.Identify, for a specified organisation, the sources of information which will enable a sufficient record to be made of accounting or other systems and i n t e r n a l controls. j. Define internal control. k. State and explain the types and limitations of internal control. l. Explain the following in relation to internal control objectives, methods of ascertaining, recording, evaluation, testing systems, control environments and control p