Chartered Accountant Online Courses & Certifications

Paper Number and Name

Topics

Paper 1: Accounting

Theoretical Framework:

1. Scope of Accounting
2. Accounting principles, concepts and conventions
3. Capital and revenue receipts, capital and revenue expenditure, contingent assets and liabilities
4. Accounting policies
5. Valuation principles, accounting estimates
6. Accounting Standards

Accounting Process:

1. Recording accounting transactions: double entry book-keeping principles
2. Books of original entry - subsidiary books, cash book, journal, ledger-format, posting from subsidiary books and journal, balancing of accounts
3. Rectification of errors
4. Preparation of trial balance
5. Bank Reconciliation Statement

Inventories:

1. Meaning and basis
2. Inventory valuation technique
3. Net realizable value
4. Cost of inventory
5. Record system

Depreciation and Amortization:

1. Tangible and intangible assets
2. Methods of computation and accounting treatment of amortization/depreciation
3. Change in depreciation method

Bills of Exchange and Promissory Notes:

1. Accounting treatment
2. Accommodation bills

Preparation of Final accounts of Sole Proprietors:

1. Financial statements elements
2. Trading account
3. Closing adjustment entries
4. Profit and loss account
5. Balance sheet for manufacturing and non-manufacturing entities

Financial Statements of Not-for-Profit Organizations:

1. Significance and preparation of payment account and reciept
2. Income and expenditure account, balance sheet
3. Difference between income as well as expenditure account and profit and loss account

Accounts from Incomplete Records: Excluding preparation of accounts based on ratios

Partnership and LLP Accounts:

1. Final accounts of LLPs and partnership firms
2. Admission, retirement, or death of the partner including treatment of goodwill
3. Partnership firms and LLPs dissolution including piecemeal distribution of assets

Company Accounts:

1. Definition of debentures and shares
2. Issue of debentures and shares, re-issue of forfeited shares, forfeiture of shares
3. Redemption of preference shares and debentures 
4. Accounting for bonus and right issue

Paper 2: Business Laws

Indian Regulatory Framework: Major Regulatory Bodies such as Ministry of Finance, Ministry of Corporate Affairs, SEBI, RBI, IBBI, Ministry of Law and Justice, etc.

The Indian Contract Act, 1872:

1. General nature of contract
2. Consideration
3. Valid contract element
4. Performance of contract
5. Breach of contract
6. Contract of Indemnity and Guarantee
7. Contract of Agency
8. Contingent and Quasi Contract
9. Contract of Bailment and Pledge

The Sale of Goods Act, 1930:

1. Formation of the contract of sale
2. Conditions and Warranties
3. Unpaid seller and his rights
4. Transfer of ownership and Delivery of goods

The Indian Partnership Act, 1932:

1. Rights and Duties of partners
2. General Nature of Partnership
3. Reconstitution of firms
4. Registration and Dissolution of firms

The Limited Liability Partnership Act, 2008:

1. Nature and scope
2. Essential features
3. LLP Characteristics
4. Differences and Incorporation with other forms of organizations

The Companies Act, 2013:

1. Essential features of company
2. Corporate veil theory 
3. Types of share capital
4. Classes of companies
5. Incorporation of company
6. Articles of Association
7. Memorandum of Association
8. Doctrine of Indoor Management

The Negotiable Instruments Act, 1881:

1. Meaning of Negotiable Instruments
2. Characteristics
3. Classification of Instruments
4. Provisions related to Negotiation
5. Presentment of Instruments
6. Rules of Compensation

Paper 3: Quantitative Aptitude

Business Mathematics:

1. Ratio and proportion
2. Indices and Logarithms
3. Laws of Indices
4. Ratio and proportion and Time and work-related problems
5. Exponents and Logarithms and Anti Logarithms

Equations:

1. Quadratic and Cubic equations in one variable
2. Linear Simultaneous linear equations up to three variables
3. Applications in Business related problems

Linear Inequalities: Linear Inequalities in 1 and 2 variables and the solution space.

Mathematics of Finance:

1. Simple Interest
2. Compound interest
3. Sinking Funds
4. Net Present Value
5. Present Value
6. Future Value
7. Perpetuity
8. Annuities
9. Nominal and Effective Rate of Interest
10. Calculating of EMI
11. Compound Annual growth rate (CAGR)
12. Calculations of Returns: Nominal and Effective rate of Return

Permutations and Combinations:

1. Basic concepts of Permutations and combinations 
2. Factorial
3. Permutations
4. Circular permutations
5. Permutations with restrictions
6. Combinations with standard results.

Sequence and Series:

1. Series, Sequences, Arithmetic progression and Geometric progression
2. Relationship between GM and AM and Sum of n terms of the special series and Business Applications

Sets, Relations, and Functions. Basics of Limits and Continuity functions

Basic applications of Differential calculus and Integral calculus in Business and Economics 

Coding and decoding number series and odd man out

Direction Tests

Seating Arrangements

Blood Relations

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Topics

Paper 1: Advanced Accounting

1. Formulation Process of Accounting Standards including Indian Accounting Standards and IFRS
2. Adoption vs Convergence 
3. Carve-outs concepts and objective

Framework for Preparation of Financial Statements 

Accounting Standards Applications

Company Accounts:

1. Schedule III of Companies Act, 2013 (Division I)
2. Financial statements preparation– Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement
3. Buyback of securities
4. Accounting for reconstruction of companies

Accounting for Branches including foreign branches

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Paper 2: Corporate and Other Laws

PART I– COMPANY LAW AND LIMITED LIABILITY PARTNERSHIP LAW

The Companies Act, 2013: including important rules and drafting of notices, resolutions

1. Preliminary
2. Incorporation of the Company and Matters Incidental thereto
3. Prospectus and Allotment of Securities
4. Share Capital and Debentures
5. Acceptance of Deposits by Companies
6. Registration of Charges
7. Management and Administration
8. Declaration and Payment of Dividend
9. Accounts of Companies
10. Audit and Auditors
11. Companies Incorporated Outside India

The Limited Liability Partnership Act, 2008 including important Rules

PART II- OTHER LAWS

1. The General Clauses Act, 1897 
2. Important Definitions
3. Extent and Applicability
4. General Rules of Construction
5. Powers and Functionaries
6. Provisions as to Orders and Rules

1. Statutes Interpretation
2. Rules of Statutes Interpretation
3. Aids to Statutes Interpretation
4. Rules of Statutes Interpretation/Deeds and Documents Construction 

1. The Foreign Exchange Management Act, 1999
2. Concepts of Current account and Capital Account Transactions

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Topics

Paper 3: Taxation

SECTION A: INCOME TAX LAW

1. Introduction to income-tax law
2. Significant concepts of income-tax law, including assessee, person, previous year, income, assessment year, agricultural income
3. Basis of Charge
4. Computation procedure of total income and tax payable in case of individuals

Residential Status and Scope of Total Income:

1. Scope of total income
2. Residential status

Income Heads and Provisions Governing Income Computation Under Different Heads:

1. Salaries
2. Income from house property
3. Profits and gains of business or profession capital gains
4. Income from other sources
5. Provisions related to clubbing of income
6. Deductions from gross total income, carry forward and set-off of losses

Advance Tax, Tax deduction and Collection at Source:

1. Provisions for filing return of income and self-assessment.
2. Total income and computation of income-tax payable by individuals under alternative tax regimes as per the Income-tax Act, 1961 for optimizing tax liability.

SECTION B: GOODS AND SERVICES TAX (GST)

GST Laws

CGST and IGST Levy and Collection:

1. Application of IGST/ CGST law
2. Concept of supply including mixed and composite supplies
3. Charge of tax including reverse charge
4. Exemption from tax
5. Composition levy

Basic Concepts:

1. Classification
2. Place, time and supply value
3. Input tax credit

GST liability Computation

Registration

Tax invoice; Electronic way bill, Credit and Debit Notes

Accounts and Records

Returns

Payment of tax

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Topics

Paper 4: Cost and Management Accounting 

Overview of Cost and Management Accounting

Introduction to Cost and Management Accounting:

1. Scope of Cost and Management Accounting
2. Users of Cost and Management accounting information and management accounting functions
3. Cost accounting department role in an organization and its relation with other departments
4. Costing System Installation
5. Relationship between  Financial Accounting, Cost Accounting, Financial Management and Management Accounting 
6. Cost Reduction and Cost Control
7. Elements of Costs
8. Cost behavior pattern, separating tcomponents of fixed, variable, semi-variable, and step costs
9. Methods and Techniques of Costing
10. Digital Costing

Elements of Cost and Cost Sheets Preparation:

1. Functional classification and cost ascertainment.
2. Cost Sheets preparation for Manufacturing sector and Service sector.

Cost Ascertainment and Cost Accounting System

Material Cost:

1. Procurement procedures, issue, valuation of receipts, and closing stock of Material, Stock verification.
2. Material requirement analysis via digital costing including Government e-Marketplace (GeM) and introduction to Costing through ERP. Process of tender and quotation.
3. Inventory control and techniques to fix stocks level 
4. Treatment of Normal/Abnormal Losses related to  scrap, waste, spoilage, defective, obsolescence.

Employee Cost:

1. Attendance and Payroll procedures
2. Elements of wages 
3. Employee Cost Control
4. Employee Turnover
5. Remuneration systems and incentive schemes

Direct Expenses: Identification of direct expenses with the main product or service and its treatment.

Overheads:

1. Functional analysis (Administration, Factory, Selling, Distribution, Research and Development).
2. Behavioral analysis (Fixed, Semi-Variable and Variable).
3. Allocation and Apportionment of overheads via Absorption Costing Method.
4. Primary and secondary distribution, Factory Overheads
5. Administration Overheads and Allocation methods to cost centers or products.
6. Selling & Distribution Overheads, Analysis and absorption of expenses in customers/products, impact of marketing strategies, cost-effectiveness of sales promotion methods.
7. Treatment of Research and development cost in cost accounting.

Concepts of Activity Based Costing (ABC)

Integration of Cost and Financial Data:

1. Recording of financial data and its segregation.
2. Integrated and Non-integrated Accounting system.
3. Items that are only included in cost accounts but financial accounts.
4. Reconciliation of profit according to Cost and Financial Accounts

3. Methods of Costing

Job Costing:

1. Job cost cards and databases
2. Direct costs collection of each job 
3. Attributing overheads to jobs
4. Job costing application

Batch Costing:

1. Optimum batch quantity determination 
2. Batch cost ascertainment 
3. Batch cost sheet preparation
4. Treatment of defective and spoiled work

Process/ Operation Costing:

1. Process loss, Process cost recording, Abnormal gains and losses, Equivalent units of production, Valuation of work in process, Inter-process profit. 
2. Joint Products-Apportionment of joint costs, Apportioning joint cost methods over joint products.
3. By-Products-Apportioning joint costs methods over by-products, treatment of By-Product cost.

Costing of Service Sectors: Costs and Service price determination

4. Cost Control and Analysis

Standard Costing:

1. Types of Standards, Standard Costing as a performance measurement method, Setting up Standards
2. Calculation and Reconciliation of Material Cost, Variable Overhead, Fixed Overhead, Labor cost

Marginal Costing:

1. Contribution margin, Break-even analysis, Contribution to sales ratio, Break–even and profit volume charts, Margin of Safety, Cost-Volume-Profit Analysis (CVP), Angle of Incidence
2. Determination of Cost of service/product under marginal costing method, finished goods cost determination, work-in-progress
3. Marginal costing comparison with absorption costing method, Reconciliation of profit under all methods
4. Short-term decision making: Multiproduct break-even analysis, Make or buy decision, Discontinuation decision, Limiting factor (key factor)

Budget and Budgetary Control:

1. Budget Manual, Budget setting process, Budget preparation, and monitoring procedures.
2. Budget use in planning and control.
3. Flexible budget, Functional budget preparation for operating and non-operating functions, Master budget, Cash budget.
4. Zero-Based Budgeting (ZBB), Control ratios, Principal/Key budget factor,  Performance budget, and Budget variances.
5. Budgets and motivation, Feedforward and Feedback controlling in budgeting.

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Paper 5: Auditing and Ethics (100 Marks)

Nature, Objective and Scope of Audit:

1. Auditing Concepts: Need for Audit, Objectives, Scope, External Audit engagements
2. Inherent Limitations of Audit; Relationship of auditing with other disciplines

Audit Strategy, Audit Planning, and Audit Program:

1. Auditor's responsibility for planning an audit of financial statements. 
2. Audit planning benefits.
3. Elements of planning with management of entity.
4. Key Engagement Team Members involvement in planning audit.
5. Preliminary engagement activities.
6. Auditor’s consideration for client continuance and ethical requirements.
7. Establishing audit strategy- Assistance for the auditor.
8. Development of audit plan.
9. Documenting audit strategy and plan; Audit program.

Risk Assessment and Internal Control:

1. Audit Risk.
2. Material Misstatement Risk, Detection Risk, Inherent and Control Risk, 
3. Sampling risk and Non-Sampling Risk.
4. Materiality concept, Materiality in Planning and Performing an Audit.
5. Auditor’s responsibility in applying materiality concept.
6. Materiality and Audit Risk.
7. Materiality application in planning and performing the audit.
8. Performance materiality concept.
9. Determining materiality and performance materiality while planning an audit.
10. Benchmarks to determine materiality for financial statements as a whole. Levels for materiality for particular classes of account balances, transactions, or disclosures.
11. Revision in materiality as the audit progresses. Documenting Materiality.

SA 320 Materiality in Planning and Performing an Audit:

1. Risks documentation.
2. Internal control system evaluation.
3. Testing Internal control; Internal Control and IT Environment .
4. Digital Audit: Impact of Controls, IT-related Risks, Internal Financial Controls as per Regulatory requirements 
5. Controls Type
6. Audit approach
7. Automated environment 
8. Testing methods
9. Data analytics for reporting, auditing, and assessing audit findings

Audit Evidence:

1. Audit Evidence
2. Relevance and Reliability of audit evidence
3. Appropriate audit evidence, Assertions.
4. Assertions in the Financial Statements. Source of audit evidence.
5. Test of controls.
6. Substantive Procedures.
7. Audit Evidence and Audit Trail.

Work of Internal Auditors – SA 610:

1. Function of internal audit
2. External Auditor’s Responsibility for audit, Evaluating internal audit function.
3. Internal Financial Control and reporting requirements.
4. Difference between Internal Control over Financial Reporting and Internal Financial Control.
5. Audit Sampling: (SA 530 Audit Sampling), Audit Sampling.
6. Designing audit sample; Sampling types 
7. Sample Size and items selection for testing
8. Sample selection method.
9. Obtaining inventory existence evidence
10. Audit procedure for identifying litigation and claims 
11. Obtaining evidence related to presentation and disclosure of segment information
12. External confirmation procedures.
13. Management’s refusal to allow auditor for sending a confirmation request
14. Audit evidence for opening balances
15. Accounting policies regarding opening balances 
16. Reporting related to opening balances
17. Nature of Related Party Relationships and Transactions
18. Entity’s Related Party Relationships and Transactions
19. Analytical procedures timing 
20. Design and performance of analytical procedures prior to Audit
21. Investigation of analytical procedures results

Audit of Items of Financial Statements:

1. Audit of Products and Services sale
2. Audit of Dividend Income, Net gain/loss on sale of Investments, Interest Income, Rental Income, etc.
3. Employee benefits expenses, Audit of Purchases, Depreciation, Interest expense, Expenditure on Power & Fuel, Rent, Taxes, Insurance, Travelling Expenses, Repair to building and Machinery, Miscellaneous Expenses, etc.
4. Audit of Share Capital, Short and Long Term Borrowings, Trade Payables, Reserve & Surplus, Provisions and Other Current Liabilities.
5. Goodwill, Brand/Trademarks, Furniture & Fixtures, Plant & Equipment, Audit of Land, Buildings, Vehicles, Office Equipment, Computer Software, etc.
6. Current Assets, Audit of Loan & Advances, Trade Receivable, Inventories, Cash & Cash Equivalent 

Audit Documentation:

1. Audit Documentation Purpose
2. Completion Memorandum
3. Content & Extent of Audit Documentation
4. Ownership and custody of Audit Documentation

Completion and Review:

1. Subsequent Events
2. Auditor’s obligations in situations for subsequent events
3. Procedures for subsequent events
4. Responsibilities and objectives of Auditor about Going Concern Assumption
5. Events or Conditions that cause doubts about the assumptions of Going Concern
6. Audit Procedures on identification of events or conditions
7. Evaluations of Misstatements that are identified during the audit
8. Written Representations as Audit Evidence.
9. Auditor objectives related to Written Representation.
10. Management from whom Written Representations will be requested.
11. Written Representations about management responsibilities

Audit Report:

1. Opinion about Financial Statements
2. Auditor’s Report- basic elements
3. Audit Matters in Independent Auditor’s Report (SA 701)
4. Circumstances When Modification to Auditor’s Opinion is Needed, Qualified, Adverse Disclaimer of Opinion
5. Emphasis of Matter Paragraphs and Other Matter Paragraphs in Independent Auditor’s Report.
6. Comparative Information Nature.
7. Corresponding Figure and Comparative Financial Statements
8. Branch audit, joint audit, and reporting requirements as per Companies Act, 2013 including CARO.

Special Features of Audit of Different Type of Entities:

1. Auditor Appointment
2. Audit Procedure and Report for Category of Entities
3. Basics of Limited Liability Partnerships (LLPs)
4. Audit and Co-operative Societies Audit

Audit of Banks:

1. Audit of Revenue items
2. Accounting system in Banks
3. Audit Approach
4. Special Consideration in Bank Audit on Advances and NPAs