Ican Syllabus

THE INSTITUTE OF CHARTERED
ACCOUNTANTS OF NIGERIA
(Established by Act of Parliament No. 15 of 1965)
Effective May 2010

FOREWORD
The Institute of Chartered Accountants of Nigeria (ICAN) is one of the leading professional
bodies in the continent of Africa with a large population of students and members. It was
established by the Act of Parliament No. 15 of 1965. Due to the increasing demands for
better quality chartered accountants in the market place, both nationally and
internationally as a result of globalization, the Council of the Institute had to constitute a
“Syllabus Technical Review Committee” at its August 2008 meeting to prepare a syllabus
that will be the basis for examining students commencing from the May 2010 Professional
Examinations Diet.
The rationale for the new syllabus is to meet the challenges posed by the world being a
global village so that our graduates can be well versed in knowledge, skills and
professionalism to deliver seamless and excellent services to their employers and clients.
The old syllabus had a five-level structure with a total of nineteen papers, while this new
syllabus has a structure with a robust content, which will meet the challenges of the world
economy. It has a four-level structure with a total of fifteen papers. It has not only
expanded the scope and contents of the old syllabus but has introduced more of ethics
and information technology as the bedrock on which to propel the examination of our
students. The syllabus is in compliance with the requirements of International Accounting
Education Standards Board (IAESB) of the International Federation of Accountants (IFAC)
and the World Bank Report on Observance of Standards and Codes (2004).
The Foundation Level is knowledge based; the Intermediate Level is skills based, while the
Professional I and Professional II examinations are areas of essential and core
competencies. This is in line with the Institute’s current policy on specialisation of our
graduates on passing the 15-paper examinations to choose a minimum of one and a
maximum of three faculties of interests out of the six faculties, namely: (1) Audit,
Investigations and Forensic Accounting (2) Taxation and Fiscal Policy Management 3)
Consultancy and Information Technology (4) Insolvency and Corporate Re-engineering (5)
Public Finance Management and (6) Corporate Finance Management.
Overall, this syllabus is student-friendly and will certainly meet the needs of employers of
labour whether in the public or private sectors, accounting and consulting firms and
training institutions.
In conclusion, this new syllabus that comes into effect in May 2010 will ensure that the
education and training of students are adequate and comparable with world class
standards of training of Professional Accountants.
FRANCIS OJAIDE, Ph.D, FCA

Chairman, Syllabus Review Technical Committee
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CONTENTS
Page
FOREWORD……………………………….………………………………….…………….. 1
PART ONE
STUDENTS REGULATIONS AND EXAMINATION SYLLABUS
1 Introduction ……………………………………………………… 4
2 Objects and Duties ……………………………………………………… 4
3 Membership ……………………………………………………… 4
4 Chartered Accountants……………………………………………………… 4
5 Registered Accountants ……………………………………………… 5
6 Designatory letters ..…………………………………………….. 5
7 The Practice of Accountancy in Nigeria……………………………….… 5
8 Advertisements for Business……………………………………………… 6
9 The Library …………………………………………….… 6
10 District Societies …………………………………………….… 6
11 Publications …………………………………………….… 6
12 Training Schemes …………………………………………….… 7
(i) Definition of Training…………………………………..… 7
(ii) Approved Work of Accounting Nature………………..… 7
(iii) Recognised Training Centres …………………………… 7
13 Practising Licence …………………………………………….… 8
14 Secretariat …………………………………………….… 8
PART TWO
15 STUDENTSHIP REGISTRATION AND TRAINING………………………….. 9
15.1 Approved Qualifications for Registration………..……………………… 9
15.2 Application for Registration ……………………………………… 10
15.3 Conditions to be satisfied …………………………………………….… 10
PART THREE
16. PROFESSIONAL EXAMINATIONS…………………………………………. 11
16.1 Structure of the Syllabus ……………………………………………… 11
16.2 Dates of Examinations ……………………………………………… 12
16.3 Closing Dates of Entries ……………………………………………… 12
16.4 Examination Entry ……………………………………………………… 12
16.5 Examination Results………………………………………………………. 12
16.6 Credit System ……………………………………………………………. 12
16.7 Pass Mark ……………………………………………………………… 13
16.8 Conversion Arrangements ……………………………………………... 13
17 Examination Time Table ………………………………………………… 16
18 Examination Question Format……………..…………………………… 16
19 Absence from an Examination ……………………………………..….. 17
20 Misconduct in an Examination ……………………………………..….. 17
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20 Exemption Guidelines ……………………………………………... 18
20.1 Academic Qualifications ………..………………………………………. 18
20.2 Subject by Subject Exemption………………………………………….. 19
20.3 Professional Qualifications……………………………………………… 20
20.4 Lecturers in Higher Institutions……….………………………………… 21
PART FOUR
21 EXAMINATIONS SYLLABUS ……………………………………………. 22
21.1 FOUNDATION…………………………………………………………….. 22
21.1.1 Fundamentals of Financial Accounting (FFA)………………………….. 22
21.1.2 Corporate and Business Law (CBL)….………………………………….. 26
21.1.3 Economics and Business Environment (EBE)………………………….. 29
21.2 INTERMEDIATE…………………………………………………………… 36
21.2.4 Costing and Quantitative Techniques (CQT)….……………………….. 36
21.2.5 Taxation (TAX)…………………………………………………………….. 42
21.2.6 Auditing and Assurance (AAS)………………………………………….. 46
21.2.7 Business Communication and Research Methodology (BCRM)…….... 50
21.3 PROFESSIONAL EXAMINATIONS
21.3 PROFESSIONAL EXAMINATIONS I ….…………………………..……. 55

21.3.1 Information Technology (IT)……………………………..……………… 55
21.3.2 Management Accounting (MA)……………………..…………………… 62
21.3.3 Financial Accounting (FA)…………………………………………….…. 66
21.3.4 Advanced Audit and Assurance (AAA)…………………………………. 69
21.4 PROFESSIONAL EXAMINATION II …………………………………….. 73

21.4.1 Public Sector Accounting and Finance (PSAF)………………………… 73
21.4.2 Financial Reporting and Ethics (FRE)………………………………….. 78
21.4.3 Strategic Financial Management (SFM)……………………………….. 85
21.4.4 Advanced Taxation (ATAX)……………………………………………….. 90
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THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA
PART ONE
Students’ Regulations and Examination Syllabus
1. INTRODUCTION
The forerunner of the Institute under the name “The Association of Accountants in
Nigeria” was established in 1960. This Association was absorbed by the Institute
created by an Act of Parliament No. 15 (The Act) which came into force on
September 1, 1965. The Institute has, as at May 31, 2009, over twenty-seven
thousand (27,000) members and One hundred and fifty-one thousand, one hundred
and fourteen (151,114) students on its Register.
2. OBJECTS AND DUTIES
The objects and duties of the Institute as laid down in section 1 (1) of the Act, are:
(a) “determining what standards of knowledge and skill are to be attained by

persons seeking to become members of the accountancy profession and
raising those standards from time to time as circumstances may permit;
(b) securing in accordance with the provisions of the Act, the establishment
and maintenance of registers of Fellows, Associates and Registered
Accountants entitled to practise as accountants and auditors and
publishing same from time to time lists of those persons; and
(c) performing through the Council under this Act the functions conferred on it
by the Act.”
3. MEMBERSHIP
There are two main classes of membership of the Institute, namely; Chartered
Accountants and Registered Accountants.
4. CHARTERED ACCOUNTANTS
A person shall be enrolled as a Chartered Accountant if:
(a) he/she passes the qualifying examination for membership conducted by the
Council of the Institute and completes a prescribed practical training under
Section 8(1)(a); or
(b) he/she holds a qualification granted outside Nigeria and for the time being
accepted by the Institute, and he/she satisfies the Council of the Institute
that he/she had sufficient practical experience as an Accountant under
Section 8(1)(b). A member of any of the approved professional bodies shall
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be eligible under the present Rules and Regulations of the Institute to be
enrolled as a Chartered Accountant, in pursuance of section 8 (1) (b) of the
Act after undergoing an orientation course/seminar during which Corporate
and Business Law; Public Sector Accounting and Finance; Financial
Reporting and Ethics; and Advanced Taxation would be the main subjects of
intense discourse. Furthermore, the candidate would be required to make
an oral presentation before admission.
These approved professional bodies are:
(i) The Institute of Chartered Accountants in England and Wales;

(ii) The Institute of Chartered Accountants of Scotland;
(iii) The Institute of Chartered Accountants in Ireland;
(iv) The Association of Chartered Certified Accountants, United Kingdom;
(v) The American Institute of Certified Public Accountants;
(vi) The Canadian Institute of Chartered Accountants;
(vii) The Chartered Institute of Management Accountants, United
Kingdom; and
(viii) The Chartered Institute of Public Finance and Accountancy, United
Kingdom.
5. REGISTERED ACCOUNTANTS
A person is entitled to be registered as a Registered Accountant if he/she satisfies

the Council of the Institute that immediately before the appointed day (i.e.
September 1, 1965), he/she has had not less than five years experience as an
inspector and auditor of company affairs under the provisions of the Companies
and Allied Matters Act, 1990. See Section 8 (2) of the Act.
6. DESIGNATORY LETTERS
Members of the Institute are entitled to use the following designatory Letters after
their names:
In the case of a Fellow, the letters “FCA” (Fellow of the Institute of Chartered
Accountants)
In the case of an Associate, the letters “ACA” (Associate of the Institute of Chartered
Accountants).
In the case of a Registered Accountant, the letters “RA” (Registered Accountant).
7. THE PRACTICE OF ACCOUNTANCY IN NIGERIA
A member of the Institute is not allowed to set up a public practice as an

accountant until he/she has applied for, and has been granted a licence to practise
by the Council, and a member is not eligible for this licence until he/she has, for a
continuous period of thirty months before or after or partly before and partly after
becoming a member of the Institute, been employed in a responsible accountancy
position in the office of a qualified accountant in public practice in Nigeria or
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elsewhere in accordance with the Membership Rules 12 and 13 made in pursuance
of Section 15(2)(d) and (e) of the Act.
8. ADVERTISEMENT FOR BUSINESS
A member may seek publicity for his/her services, achievements and products and
may advertise his/her services, achievements and products in any way consistent
with the dignity of the profession. He/she should not project an image inconsistent
with that of a professional person bound to high ethical and technical standards.
9. THE LIBRARY
The Institute’s Library caters for both members and students. The Library at the
Secretariat, Plot 16 Idowu Taylor Street, Victoria Island, Lagos caters for the needs
of members, while the Students’ Library is located at the Institute’s Secretariat
Annex at No. 82, Murtala Muhammed Way, Ebute-Metta, Lagos. Continuous efforts
are being made by Council from time to time to satisfy fully the diverse interests of
the members and students. Enquiries should be directed to the Librarian at the
Victoria Island Office.
10. DISTRICT SOCIETIES
There are District Societies for members of the Institute with headquarters in some
principal towns throughout the country as well as in the UK and USA. The principal
objectives of the District Societies are to avail members the opportunity of extra
professional and social activities and assist potential accountants in their
endeavour towards membership of the Institute.
11. PUBLICATIONS
The Institute publishes the following for the benefit of members, students and the
general public:
(a) Membership Year Book, containing lists of members and other general
information about the Institute.
(b) The Nigerian Accountant, the official journal of the Institute, containing
authoritative articles on accountancy and related fields.
(c) ICAN News, the official journal for students of the Institute.
(d) Pathfinder, published after each examination and contains the suggested
solutions to the examination questions.
(e) Members’ Handbook, which is a compendium of the Institute’s

constitutional, ethical and legal provisions as well as accounting, auditing
and reporting standards.
(f) ICAN Study Packs.
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(g) Nigeria: Journal of Accountancy Research.
12. TRAINING SCHEMES
(i) DEFINITION OF TRAINING
Training for the purpose of the Institute’s membership means full time
assignments on a work of an approved accounting nature either in a
professional office, commerce, industry, government or a full time/part time
study in an accredited institution.
However, accounting experience acquired before a candidate attains the

minimum educational level required for registration would not be
recognised, but only the practical experience acquired by the candidate as
from the date of registration as a student.
(ii) APPROVED WORK OF ACCOUNTING NATURE
An accounting duty is deemed to be approved when such a duty is being

supervised by a Chartered Accountant member of the Institute or being
subjected to regular audit by a professional firm of Chartered Accountants in
Nigeria.
In the Civil Service, however, the supervision by a Chartered Accountant is

not strictly necessary (Civil Service accounting systems throughout the
Federation having been recognised as providing adequate training ground
for accountants in the Public Sector).
(iii) RECOGNISED TRAINING CENTRES
The Institute attaches considerable importance to practical training and

students are required to acquire their practical experience in Recognised
Training Centres (RTC).
The Institute recognises for this purpose:
(a) Approved service under a practising member of the Institute.

(b) Employment in the office of a practising accountant, for example, as
an audit clerk.
(c) Employment in the accounting or finance department of industrial or
commercial undertakings, parastatals and the Public Service.
If a candidate wishes to train otherwise than in a Recognised Training

Centre, his/her particular employment has to be approved by the Council of
the Institute as providing acceptable experience. For this purpose, he/she
has to give precise details of the nature of his/her work together with a
certificate from a senior officer of the organisation (who has to be a member
of the Institute) stating that he/she will, during the course of his/her
studentship, obtain experience of adequate scope and variety.
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The period of practical experience sufficient for a candidate to be
accomplished as an accountant depends on the relevance of his/her basic
qualifications on registration. This is expected to be not less than 24 months
practical training whilst those entering with non-accounting qualifications
will require 42 – 48 months.
13. PRACTISING LICENCE
The licence to practise will be issued only to those candidates who have been
trained in professional offices and have acquired the minimum practical training as
stated in paragraph 7 above. However, for those who qualify outside professional
offices/firms, such practising experience could be acquired after qualifying as an
accountant and the period of post-qualification will not be less than 36 months for
those with accounting qualifications, whilst those with non-accounting
qualifications require not less than 42 months.
14. SECRETARIAT
The Institute’s Secretariat is located at:
Plot 16, Idowu Taylor Street

Victoria Island
P O Box 1580
Lagos, Nigeria
Tel: +234 – 1 – 764 2294, 764 2295
Fax: +234 – 1 – 462 7048
E-Mail: info.ican@ican.org.ng
Website: www.ican-ngr.org
For those submitting their completed students registration forms by hand or making
enquiries, please call at our Secretariat Annex:
(a) Students’ Affairs Department

No. 25, Association Avenue
Obanikoro Bus Stop
Ilupeju
Lagos, NIGERIA
Tel: +234–1–7740627, 4705336. DL: 01-8714496
E-mail: studentsaffairs@ican.org.ng;
(b) Liaison offices; or
(c) District Societies.
All enquiries should be directed to the Registrar/Chief Executive.
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PART TWO
15. STUDENTSHIP REGISTRATION AND TRAINING
15.1 APPROVED QUALIFICATIONS FOR REGISTRATION
In order to register as a student with the Institute, an applicant must hold a

qualification not below University degree or its equivalent.
The Council has accepted the following qualifications for the purpose of entry
requirements:
(a) The degree of any University or Higher National Diploma of any Polytechnic
accredited by the Council.
(b) Any other qualification for the time being approved by the Council.
Approved meanwhile are:
(i) The final examination of the Institute of Chartered Secretaries and

Administrators
(ii) The final examination of the former Corporation of Secretaries

.
(iii) The final examination of the Association of International Accountants
(iv) The final examination of the Chartered Institute of Bankers of Nigeria
(v) The final examination of the Chartered Institute of Stockbrokers
(vi) The final examination of the Chartered Institute of Taxation of Nigeria
(vi) The final examination of the Association of Accounting Technicians,

U.K.
(vii) The final examination of the Association of National Accountants of

Nigeria (ANAN)
(viii) Executive Management Accountancy (Federal Treasury Training

School, Stage III)
(ix) The final examination of Accounting Technicians Scheme, West Africa

(ATSWA).
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15.2 APPLICATION FOR REGISTRATION
Application for registration as a student must be made on-line which requires an

undertaking on the part of the applicant to abide by the rules and regulations laid
down by the Council from time to time. Every applicant will be required to produce
satisfactory evidence of his/her name, age and character together with certified
photocopies of educational certificates and two certified passport size photographs.
The Council reserves the right to grant or refuse any application or to terminate the
registration of a student. Applicants must comply with the conditions set forth and
must pay the registration fee in force at the date of application. If the application
to register is unsuccessful, the registration fee is not refundable.
The annual subscription for successful applicants becomes payable immediately

upon registration for the year of registration and thereafter on 1st January of each
year of registered studentship.
15.3 CONDITIONS TO BE SATISFIED
Every applicant for registration as a student must satisfy the Council that:
(a) He/she is not less than 18 years of age;

(b) He/she possesses the basic educational qualifications set out above; and
(c) He/she is a fit and proper person to be registered.
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PART THREE
16. PROFESSIONAL EXAMINATIONS
16.1 STRUCTURE OF THE SYLLABUS

The professional examination of the Institute under the new syllabus consists of the
following four levels: Foundation, Intermediate, Professional I and Professional II.
OLD SYLLABUS NEW SYLLABUS
FOUNDATION FOUNDATION
1. Fundamentals of Financial Accounting 1. Fundamentals of Financial Accounting
2. Quantitative Analysis 2. Corporate and Business Law
3. Economics 3. Economics and Business
Environment
INTERMEDIATE INTERMEDIATE
4. Cost Accounting 4. Costing and Quantitative Techniques
5. General Principles of Law 5. Taxation
6. Principles and Practice of Auditing 6. Audit and Assurance
7. Management 7. Business Communication and
Research Methodology
PROFESSIONAL EXAMINATION I PROFESSIONAL EXAMINATION I

8. Financial Accounting I 8. Information Technology
9. Taxation 9. Management Accounting
10. Management Information Systems 10. Financial Accounting
11. Business Law 11. Advanced Audit and Assurance
PROFESSIONAL EXAMINATION II PROFESSIONAL EXAMINATION II

12. Financial Accounting II 12. Public Sector Accounting and Finance
13. Management Accounting 13. Financial Reporting and Ethics
14. Public Sector Accounting and Finance 14. Strategic Financial Management
15. Business Communication and 15. Advanced Taxation
PROFESSIONAL EXAMINATION III

16. Financial Reporting and Audit Practice
17. Strategic Financial Management
18. Tax Management and Fiscal Policy
19. Multidisciplinary Case Study
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16.2 DATES OF EXAMINATIONS
The examinations are normally held twice each year in May and November and, at
present, at the following centres: Aba, Abakaliki, Abeokuta, Abuja, Ado-Ekiti,
Akure, Asaba, Benin-City, Calabar, Enugu, Ibadan, Ilesa, Ilorin, Jos, Kaduna, Kano,
Lagos, Lokoja, Maiduguri, Makurdi, Minna, Ogbomoso, Onitsha, Owerri, Port
Harcourt, Sokoto, Umuahia, Uyo, Warri, Yenagoa, Yola, and London (U.K.).
At the discretion of the Council, examinations may be arranged at centres other

than those specified above.
16.3 CLOSING DATES OF ENTRIES
The closing dates of entries for May and November examinations are March 31 and
September 30, respectively.
16.4 EXAMINATION ENTRY
No person may enter for any of the Institute’s examinations unless he/she had been
registered as a student of the Institute and had paid the required annual
subscription and examination entry fees in force at the date of entry.
16.5 EXAMINATION RESULTS
The result of the examination will be communicated by post, or through the

Institute’s website, to each candidate. Further correspondence relating to
individual results may not be entertained. No information as to individual marks
can be given.
16.6 CREDIT SYSTEM
16.6.1 A candidate writing Foundation, Intermediate, Professional I and II examinations

will be credited for each paper passed provided he/she has passed at least (2) Two
papers at the first sitting. The remaining one or two papers could be passed and
credited at one per sitting.
NOTES:
1. Candidates are expected to register and attempt all papers at a level. No
candidate will be allowed to apply to sit for one paper unless the other
papers have been previously passed or exempted.
2. Candidates are also expected to complete the examination papers at a

level before attempting papers at a higher level.
3. CANDIDATES ARE NOT ALLOWED TO COMBINE TWO LEVELS of the

examinations. Candidates are expected to complete all parts of the
Institute’s examination within a period of ten years from the date of
registration as student members. However, candidates registered before
12
May 2005 are expected to complete the Institute’s examinations on or
before May 2014.
16.7 PASS MARK
The pass mark for each paper of the Institute’s examination is 50%.
16.8 CONVERSION ARRANGEMENTS
Examinations on the basis of this new syllabus will commence in May 2010.
All candidates stand converted as stated in paragraph 16.8.1 below. Each
candidate will be credited with subjects passed if he or she passes a minimum of
two subjects at that level. No candidate may proceed to the next level of the
examination without successful completion of all the subjects in the preceding
level.
16.8.1 Conversion from the old to the new syllabus is as stated hereunder:

To write: Credited with
Candidates who successfully
Economics & Business Fundamentals of
completed the old
Environment, Costing and Financial Accounting in
Foundation Examination
Quantitative Techniques Foundation level
To write:
Candidates who successfully Credited with Costing and
Taxation, Business
completed the Intermediate Quantitative Techniques,
Communication and
Examination only Audit and Assurance.
To write:
Candidates who successfully Management Accounting,
Credited with Information
completed the P.E l Financial Accounting,
Technology.
Examination only Advanced Audit &
Assurance
To write:
Financial Reporting &
Candidates who successfully Ethics, Strategic Credited with Public
completed the P.E ll Financial Management, Sector Accounting and
Examination Advanced Taxation, Finance
Advanced Audit &
Assurance in P.E. l
To write:
Candidates who passed Corporate and Business
Credited with Financial
Fundamentals of Financial Law, Economics and
Accounting only
Accounting – Foundation Business Environment in
Foundation
13
Candidates who passed

To write the whole new
Quantitative Analysis and Credited with no subjects
Foundation subjects
Economics in Foundation
To write:
Corporate and Business
Candidates who passed Cost Law in Foundation, Audit Credited with Costing and
Accounting in Intermediate and Assurance, Taxation Quantitative Techniques
and BCRM in
Intermediate
To write:
Costing & Quantitative Credited with Economics
Management only in
Techniques; Taxation and & Business Environment
Intermediate
BCRM in Intermediate
To write:
Costing & Quantitative
Techniques, Taxation, Credited with Audit &
Principles and Practice of
Corporate and Business Assurance
Auditing in Intermediate
Law in Foundation and
BCRM in Intermediate.
To write:
All the papers in Credited with no subject
General Principles of Law
Intermediate
Candidates who passed any
of the following subjects in
To write all papers in
old P.E l, Financial Credited with all the
new Professional
Accounting/Taxation/ subjects in Intermediate
Examination l
Management Information
System/ Business Laws
To write:
Information Technology Credited with Financial
Management Accounting, Accounting in the new
Financial Accounting ll
Advanced Audit and P.E. l
Assurance
To write:
Candidates who passed Financial Accounting Credited with
Management Accounting in Information Technology Management Accounting
old P.E l & Advanced Audit and in the new P.E. l
Assurance
Candidates who passed Credited with Public
To write all the papers in
Public Sector Accounting and Sector Accounting and
the new P.E l
Finance in old P.E ll Finance in the new P.E. ll
14

Financial Reporting and To write all papers in the
Credited with no subject
Audit Practice in the old P.E. new P. E. II
lll
Candidates who passed only

To write all papers in the
Strategic Financial
new P.E ll Credited with no subject
Management in the Old P E
III
Candidates who passed Tax

To write: all papers in the
Management and Fiscal Credited with no subject
new PE II
Policy in the Old P.E lll
To write:
Candidates who passed Credited with Public
Financial Reporting and
Multidisciplinary Case Study Sector Accounting and
Ethics and Strategic
(MDCS) Finance
Financial Management
NOTE: Any candidate with only MDCS outstanding shall be allowed to

continue with the 2005 syllabus for three consecutive diets until May
2011. There shall be no further examinations under the 2005 syllabus
after May 2011.
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17. EXAMINATION TIME-TABLE FOR MAY 2010
DAY TIME FOUNDATION INTERMEDIATE P. E. I P. E. II
Fundaments Costing and Financial

9.00 a.m. - Financial
of Financial Quantitative Reporting and
12.00 noon Accounting
Accounting Techniques Ethics
TUESDAY
Economics Strategic
2.00 p.m. – Audit and Information
and Business Financial
5.00 p.m. Assurance Technology
Environment Management
9.00 a.m. – Advanced

Corporate and Advanced
12.00 noon Taxation Audit and
Business Law Taxation
WEDNESDAY
Assurance
Business
2.00 p.m. – Public Sector
Communication Management
5.00 p.m. - Accounting and
and Research Accounting
Finance
Methodology
THURSDAY
9.00 a.m. –
Multidisciplinary
2.00 p.m - - -
Case Study
18 EXAMINATION QUESTION FORMAT
The questions for each subject shall consist of two sections: A & B.
Section A:
Shall comprise multiple-choice and short-answer questions. Questions in
this section shall cover the entire area of the subject syllabus. All the
questions in this section shall be compulsory. This section shall make up
40% of the total marks.
Section B:
Shall comprise more involving questions. Questions will carry equal marks.
Candidates will be required to answer four out of six questions in this
section. However, in subjects with cases, the case question will be
compulsory. This section shall make up 60% of the total marks.
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19. ABSENCE FROM AN EXAMINATION
Examination entries cannot be withdrawn after the closing date in any

circumstances. The fees paid for an examination will not be refunded or
transferred to subsequent examination, if a candidate is unable to attend the
examination.
20. MISCONDUCT IN AN EXAMINATION
The examinations regulations prohibit a student from:
(a) taking into the examination room or possessing, while in that room, any
books, notes, programmable calculators, GSM hand sets or other materials
except those which have been authorised in the Examination Attendance
Docket;
(b) aiding or attempting to aid another candidate, or obtaining or attempting to
obtain aid from another candidate;
(c) refusing to obey any instruction from the Examination Supervisor or
Invigilators; and
(d) giving false or misleading information to the Examination Supervisor.
The Supervisor is empowered to stop any candidate suspected of mis-conduct and

to require him/her to leave the examination hall.
Any student who fails to comply with the above regulations may be liable to such
penalties as the Council of the Institute may determine.
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20. EXEMPTION GUIDELINES
20.1 ACADEMIC QUALIFICATIONS
Academic Qualifications Exemptions

B.Sc./HND (Accounting) obtained
All Subjects in Foundation and
A. from Accredited institutions in
Intermediate.
Nigeria
B.Sc./HND (Accounting) obtained
from recognized institutions in
B. All subjects in Foundation
Nigeria, but not yet accredited by the
Institute
B.Sc./B.A./HND (Accounting) obtained
C. Intermediate.
from foreign recognised institutions
M.Sc. (Accounting) obtained from
D. recognized institutions in addition to
Intermediate
B.Sc. in any other related discipline
All subjects in Foundation and
Intermediate, and Management
E. Ph.D (Accounting)
Accounting and Financial Accounting in PE
1.
Economics and Business Environment in
F. B.Sc. Economics
Foundation
B.Sc. Actuarial Science
Foundation
B.Sc./HND Insurance
Foundation
B.Sc/HND/B.A Economics and Business Environment in
Business Admin/Management Foundation
B.Sc./HND Marketing
Foundation
B.Sc./HND Banking & Finance
Foundation
MBA in addition to B.Sc./HND in Non- Economics and Business Environment in
Accounting discipline Foundation
B.Sc. (Ed.) Accounting or
B.Ed. Business Education (Accounting All subjects in Foundation
Option)
B.Ed Education Management
Foundation
Economics and Business Environment and
G. ATS II (Old Syllabus) Fundamentals of Financial Accounting in
Foundation
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Academic Qualifications Exemptions
All Subjects in Foundation, Costing &
H. ATS III (New Syllabus) Quantitative Techniques, Taxation and
Audit & Assurance in Intermediate
20.2 SUBJECT BY SUBJECT EXEMPTION
FOUNDATION EXEMPTION FROM FOUNDATION LEVEL ONLY

B.Tech Project Management
Foundation
B.Sc Engineering Management
Foundation
B.Sc./HND Cooperative and Rural Economics and Business Environment in
Development Foundation
Fundamentals of Financial Accounting and
B.Sc./B.A. Commerce Economics and Business Environment in
Foundation
B.Sc/HND Statistics/Economics
Foundation
B.A Library Science/Economics
Foundation
HND Agric/Economics
Foundation
LL.B Corporate and Business Law in Foundation
B.Sc/HND Estate Management Nil
B.Sc/HND Biology Nil
B.Sc/HND Chemistry Nil
B.Sc/HND Bio-Chemistry Nil
B.Sc Archaeology/Geology Nil
B.Sc/HND Statistics Nil
B.Sc/HND Engineering Nil
B.Sc/HND Chemistry Engineering Nil
B.Sc/HND Town & Regional
Nil
Planning
B.Sc/HND/B.Ed Chemistry Nil
B.Sc/HND Tech. Computer Nil
B.Sc/HND Mathematics Nil
B.Sc/HND Industrial Mathematics Nil
B.Sc/HND Industrial Chemistry Nil
B.Sc/HND Agriculture Nil
B.Sc/HND Building Technology Nil
B.Sc/HND Petroleum Engineering Nil
B.Sc/HND Elect. (Elect.) Nil
B.Sc/HND/B.Ed. Chemistry Nil
19
B.Sc/HND Applied Mathematics Nil
B.Sc/HND Applied Chemistry Nil
B.Sc/HND Applied Physics Nil
Public Admin – Subject to transcript Nil
B.Sc Business Education – Subject
Nil
to transcript
20.3 PROFESSIONAL QUALIFICATIONS
Qualifications ICAN Exemptions

intermediate except Taxation, Audit
A. ACIB (Nigeria)
and Assurance and Business
Environment in Foundation
Intermediate except Taxation, Audit
B. ACIB (London)
Intermediate except Taxation, Audit
C. ACIS
D. ACS All Subjects in Foundation
Economics and Business Environment

E. ACII
in Foundation
F. ACIT
Taxation in Intermediate
G. AIA (Final) 1994 to date Costing and Quantitative Techniques,
AAT (U.K) Audit and Assurance in Intermediate
All subjects in Foundation and
AIA (Pre-1994 )
H. Intermediate except Audit and
Assurance
Intermediate, Management
I. ANAN
Accounting in PE 1 and Strategic
Financial Management in PE 11
Executive Management
J. Accountancy (Federal Treasury
Intermediate
Training School Starting from 1987)
ICAEW
ACCA, UK
All Subjects in Foundation,
CPA, USA
Intermediate, P.E. I and P. E. II –
K. CIMA, UK
subject to undergoing Intensive
CIPFA, UK
Course for special candidates
ICAS, UK
ICAI, UK
20
20.4 LECTURERS IN HIGHER INSTITUTIONS
Lecturers in Accounting Departments with B.Sc./HND (Accounting) in all accredited

institutions shall be given the same level of exemptions/concession granted to
graduates of Recognised Training Institutions (RTIs) regardless of date of
qualification.
21
PART FOUR
21. EXAMINATIONS SYLLABUS
21.1 FOUNDATION
21.1.1 PAPER 1: FUNDAMENTALS OF FINANCIAL ACCOUNTING
A. OBJECTIVE
To examine candidates’
• Knowledge and application of the fundamental principles, processes and

regulatory framework employed in keeping financial records.
• Proficiency in double–entry accounting techniques and maintenance of
accounting records.
• Ability to identify and correct omissions and errors in accounting records
and financial statements.
• Ability to prepare financial statements of sole traders, not-for-profit
organisations, partnerships (including admissions, dissolutions,
amalgamations and absorption) and limited liability companies in
accordance with generally accepted accounting principles and basic
statements of accounting standards.
• Awareness of various accounting techniques and their uses.
B. LINKAGES: This paper is linked to 2, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14 and 15.
This paper will be a three-hour paper divided into two sections:
SECTION A: (40 marks) - A number of compulsory multiple choice and short

answer questions covering the entire syllabus.
SECTION B: (60 marks) - Out of six essay-type questions, candidates are answer
four.
C. CONTENTS
1. ACCOUNTING FRAMEWORK (10%)
(a) Historical perspective of development of accounting.

(b) Terminologies, concepts, conventions and purposes of accounting
information and its communication.
(c) The role of an accountant in an organisation.
(d) The users of financial statements, their information requirements,
objectives, adequacy and the usefulness of financial statements.
22
2. BASIC ACCOUNTING STANDARDS (15%)
(a) The nature and role of bodies which set accounting standards in
Nigeria.
(b) Structure and process leading to the issuance of standards in Nigeria.
(c) Statement of accounting standard numbers 1-9 (SAS 1-9) – Theory
and practice of the standards.
3. BOOK-KEEPING AND MAINTENANCE OF FINANCIAL RECORDS (15%)
(a) Principles and practice of double-entry book-keeping:

Forms and contents of books of accounts (manual and computer-
based).
Books of prime entry, including journals.
Sales and purchases ledgers and daybooks.
Cash book and petty cash books.
General ledger.
(b) Trial balance

Its scope, uses and correction of errors of commissions and
omissions.
Use of suspense accounts.
Its preparation from accounting records and list of ledger
balances.
Book-keeping and maintenance of financial records.
(c) Allocation of income and expenditure between capital and revenue.
(d) Accounting treatment of:

(i) Assets: -
• Tangible
Depreciation - reasons for and methods of providing for
it.
• Intangible
Amortisation – reason for and methods of providing for
it
• Asset Registers
• Stocks – Valuation for Financial Accounting Purposes.
• Debtors – Bad debts and provision for doubtful debts.
• Cash and bank balances
(ii) Liabilities.
(iii) Provisions and reserves.
(iv) Contingencies and events after balance sheet date.
(e) Control accounts – Their uses and processes, and benefits derivable
therefrom.
(f) Bank Transactions - Bank reconciliation statement - format and

preparation. Banking transactions and processes.
23
(g) Introduction to Accounting Software:
(i) Features
(ii) Interfacing modules (GL, Payables, Receivables, etc)
(iii) Benefits and challenges.
4 PREPARATION OF FINAL ACCOUNTS FOR SOLE PROPRIETORSHIP AND

NOT-FOR-PROFIT ORGANISATIONS (15%)
(a) Preparation of Manufacturing, Trading, Profit and Loss Accounts and

Balance Sheet for sole proprietorship
(b) Preparation of Income and Expenditure Account, and Balance Sheet
(or Statement of Affairs) of not-for-profit organisations: Non
Governmental Organisations (NGOs), clubs, societies, associations,
etc.
(c) Preparation of final accounts from incomplete records.
5. PARTNERSHIP ACCOUNTS (20%)
(a) Formation of partnership - general principles, practice and law.

(b) Accounting treatment of admission, retirement, removal and death of
partners.
(c) Revaluation of assets and goodwill on admission, retirement, removal
or death of partners.
(d) Amalgamation and absorption.
(e) Dissolution of partnership, including piecemeal realization and
distribution.
(f) Conversion of partnership to limited liability company.
(g) Preparation of partnership final accounts.
6. LIMITED LIABILITY COMPANY ACCOUNTS (15%)
(a) Nature of limited liability companies.

(b) Raising of capital – issue of shares, debentures and loan stocks.
(c) Statutory books and records maintained by a limited liability
company.
(d) Methods of establishing a limited liability company.
i) Establishment of new businesses.
ii) Conversion of sole proprietorship to limited liability company.
(e) Preparation of commencement period financial statements,
highlighting the treatment of pre- and post-incorporation items.
(f) Preparation of final accounts in conformity with the Nigerian
Accounting Standards and Generally Accepted Accounting Principles
(excluding published accounts).
24
7. MISCELLANEOUS ACCOUNTS (10%)
Accounting for Joint Ventures;

Consignments;
Containers;
Royalties;
Bill of Exchange;
Departmental Account;
Non-Independent Branches.
D. CONTACT HOURS 80
E. RECOMMENDED TEXTS:
Akeju J.B. 2003, Financial Accounting Volume 1 – JBA Limited Lagos.

Anao, A.R., An Introduction to Financial Accounting, Longman.
ICAN Study Pack, Fundamentals of Financial Accounting, V/I Publishers, 2006
ICAN Study Pack, Fundamentals of Financial Accounting, V/I Publishers, 2009
Spicer & Pegler, Book-keeping & Accounts
Wood, Frank, & Sangster Alan, 2005, Business Accounting 1, Pitman 10th Ed.
25
21.1.2 PAPER 2: CORPORATE AND BUSINESS LAW
A. OBJECTIVE
• Understanding of the nature and objectives of the laws that are essential to
their functions and duties as accountants as well as the business
relationships that use their services.
• Understanding of various commercial transactions that involve the input of
accountants.
• Understanding of their duties in business regulatory compliance
• Ability to apply the knowledge of business laws to specific aspects of their
accounting functions.
B. LINKAGES
This paper is linked to papers 1, 3, 5, 6, 8, 10, 11, 12, 13, 14 and 15

SECTION B: (60 marks) – Out of six essay-type questions, candidates are

expected to answer four.
C. CONTENTS
1. The Nigerian Legal System (10%)
Sources of Nigerian Law (Received English law, the Constitution and its
characteristics, Nigerian statutes, judicial precedent or case-law,
international law.
2. Law of Torts (5%)
Definition of tort, the tort of (professional) negligence, vicarious liability,

criminal and civil liability
3. Law of Contract (15%)
Elements of a valid contract (offer, acceptance, consideration, intention to

create legal relations), capacity to contract, privity of contract, terms of
contract (conditions and warranties); mistakes, misrepresentation, undue
influence, illegality and duress, breach of contract and remedies,
termination of contract.
26
4. Nature and Framework of e-Contracts
• Click wrap agreements

• Shrink-wrap agreement
• Electronic Data Interchange (EDI)
• e-Signatures
• Enforceability of e-contracts
5. Law of Commercial Transactions (20%)
• Agency – methods of creating agency, duties and rights of principal

and agent including commercial agents, agent’s authority (express,
implied and apparent).
• Sale of Goods – Goods and their types, the duties and rights of seller
and buyer, passing of property.
• Hire Purchase – Nature of hire purchase contract at common law and

under the Hire Purchase Act, 2004
• Insurance Law – Nature of insurance contract, indemnity and non-

indemnity, insurable interest misrepresentation, conditions and
warranties, subrogation and contribution, assignment of policy
6. Law of Business Associations (30%)
Company Law - Types and formation of companies (choice of name,

documents of incorporation, functions of the Corporate Affairs
Commission); consequences of incorporation, holding and subsidiary
companies, company meetings and returns, issue of shares, duties
relating public offer of shares, transfer of shares requirements, status
and duties of directors, status and duties of company secretary,
company accounts and audit, appointment and duties of auditors,
appointment and duties of receivers, types of winding up (including
significance of secured debts).
Partnership Law – Applicable statutes, creation of partnership,

essential elements of partnership, partnership distinguished from a
company, general and limited partnership, rights and duties of
partners, partners’ relationship with each other and with third
parties, dissolution of partnership.
7. Law of Banking and Negotiable Instruments (10%)
The statutory powers and duties of the Central Bank of Nigeria, the reporting
duties of banks and other financial institutions (reference to the Central
Bank Act as well as Banks and Other Financial Institutions Act), the statutory
powers and duties of the Nigerian Deposit Insurance Corporation, duties of
financial institutions to report certain transactions under the Money
Laundering Act, duties and rights relating to banker-customer relationship.
27
Negotiable instruments, types, delivery, acceptance, negotiation and
discharge of bills, duties and liabilities of parties to a bill.
8. Trust and Estate Administration, Bankruptcy (10%)
Appointment, duties, powers, rights and accounts of trustees, executors and

administrators, investments authorised by the Trustee Investment Act.
Bankruptcy, issue of receiving order, appointment, duties and powers of

Official Receiver and trustee in bankruptcy, statement of affairs and
deficiency account, discharge of a bankrupt.
D. CONTACT HOURS 85
E. RECOMMENDED TEXTS
Biggs, W.W. and Thompson, Ranking, Spicer and Pegler’s Merchantile Law,
(London: HFL Publishers).
Fabunmi, J.O., Equity and Trusts in Nigeria, 2nd ed., (Ile-Ife: Obafemi
Awolowo University Press.)
Jegede, M.I., Law of Trusts Bankruptcy and Administration of Estate, (Lagos:
MIJ Professional Publishers).
Obilade, A.O., The Nigerian Legal System, (London: Sweet and Maxwell)
Omojola, F., 2004, General Principles of Business Law in Nigeria 2nd Ed.
Omojola, S. F., 2005, Omojola’s Company Law in Nigeria
Federal Republic of Nigeria, Companies and Allied Matters Act, 1990
Federal Republic of Nigeria, Investments and Securities Act, 1999
Federal Republic of Nigeria, Banks and Other Financial Institutions Act 25 of
1991
Federal Republic of Nigeria, Insurance Act, 2003
Federal Republic of Nigeria, Central Bank of Nigeria Act,
Federal Republic of Nigeria, Money Laundering Act, 2003
Partnership Act/Partnership Law
Sale of Goods Act/Law
Yerokun, Nigerian Law of Insurance
28
21.1.3 PAPER 3: ECONOMICS AND BUSINESS ENVIRONMENT
A. OBJECTIVE
• Knowledge of economic concepts, principles and application which

underline rational choice and behaviour of economic agents, particularly
consumers and firms.
• Understanding of the features of the Nigerian environment in which
individuals, business organisations, government and other economic agents
operate and interact.
• Ability to analyse and discuss the impact of government economic policies
and outcomes on both national and international institutions and
organizations.
• Knowledge of the nature of Nigerian economic relations with other
countries, institutions and regional bodies.
• Understanding of management concepts, theories and techniques and their
relevance in contemporary business world.
• Ability to apply concepts and techniques in the analysis and development of
solutions to management problems especially those frequently encountered
in the global economy.
B. LINKAGES
The paper is linked to papers 2, 4, 5, 6, 7, 9, 11, 12, 14 and 15
The paper will be a three-hour paper divided into two sections:
SECTION A: (40 Marks) – A number of compulsory multiple choice and short

SECTION B: (60 Marks) – Out of six essay-type questions, candidates are

C. CONTENTS
COMPONENT A ECONOMICS
INTRODUCTION
1. BASIC CONCEPTS OF ECONOMICS (5%)
(a) Nature of economics and economic reasoning: Definition, economics

as social and management science, economic models, economic
methods: induction and deduction.
29
(b) Concepts of scarcity, choice, scale of preference and opportunity cost,
ceteris paribus, mutatis mutandis.
(c) Distinction between microeconomics and macroeconomics
(d) Nature of economic problems under different types of economic
systems
(e) Types and resources allocation under different economic systems,
particularly the roles of the private sector in production and
distribution of goods viz:
Free Market Economy
Command or Centrally Controlled Economy
Mixed Economy.
MICROECONOMIC CONCEPTS AND PRINCIPLES
2. BASIC FOUNDATION OF MARKET ACTIVITIES (5%)
(a) Concepts of demand and supply: laws of demand and supply;

exception to the laws; determinants of demand and supply,
relationships between change in quantity demanded/supplied and
change in demand/supply.
(b) The concepts of equilibrium in demand and supply.
(c) Elasticity of demand and supply: Price elasticity, income elasticity
and cross elasticity. Factors affecting elasticity. Applications of
elasticity to consumption, product pricing, and distribution or sales.
(d) Definition of industry
(e) Location and localization of industry
(f) Factors that influence location of industry in Nigeria with appropriate
examples.
(g) Industrial concentration – advantages and disadvantages
(h) Forms of business enterprises – advantages and disadvantages.
3. THEORIES OF PRODUCTION AND COSTS (5%)
(a) Concepts of production and cost

(b) The factors of production and their peculiarities: land, labour, capital
and entrepreneurship
(c) The short-run and long-run production analysis: law of diminishing
returns, isoquant and isocost curves, concept of returns to scale,
production function
(d) Factor markets and Income determination: Marginal productivity
theory, Wage determination, Rent, Interest and Profits, Economic
rents
(e) Theory of costs: Total cost, total fixed cost, total variable cost, average
cost, average variable cost and marginal cost concept. Demonstration
with graphical representation.
(f) Concepts of total revenue, average revenue and marginal revenue.
(g) Concept of profit maximization, conditions for short- and long-run
profit maximization.
30
4. FIRMS AND MARKET STRUCTURES (5%)
(a) The concept of market and market structure: perfect competition,

monopolistic (imperfect) competition, monopoly, oligopoly,
monopsony. Provide examples.
(b) The firm in the market place: profit maximization under perfect
competition; Alternatives to profit maximization: Sales revenue
maximization, Growth maximization and Managerial utility
maximization. Monopolistic competition; Monopoly; Price
discrimination under monopoly: types (degree) and conditions;
Oligopoly and interdependence.
(c) Growth strategies of firms: horizontal growth, vertical growth,
diversified growth, growth by mergers and acquisitions. Provide
enabling conditions and advantages/disadvantages for the growth
strategies.
(d) Privatization, commercialization, e-commerce and perfect
competition.
MACROECONOMICS
5. THE NATIONAL ECONOMY (10%)

(a) The circular flow of income
(b) National income and income determination in an open economy
(c) Measuring national income and output: Gross National Product
(GNP), Gross Domestic Product (GDP), Net National Income (NNI), Per
Capita Income, etc.
(d) National income accounting: uses and problems of computing
(e) Concept of Consumption and Saving within Keynesian macroeconomic
setting: Determinants, marginal propensity to consume and save,
multiplier analysis.
(f) Concept of Investment: Determinants, the accelerator principles and
investment choices
(g) Causes of inflation in developed and developing countries
(h) Effects of inflation on consumption, saving and investments
(i) Control of inflation with reference to Nigeria
(j) Unemployment: Types, measurement and cures
6. MONEY AND BANKING (10%)
(a) The meaning, functions and characteristics of money. Types and

nature of money and near monies. Value of money versus price of
goods.
(b) The determinants/motives for demand for and supply of money.
(c) Credit creation by the banking system and money multiplier
(d) The Nigerian financial system: structure of the Nigerian financial
system; nature and functions of money and capital markets; functions
of the central bank, commercial banks, merchant banks, universal
banks, microfinance banks, bureau-de-change. Competition and
innovations in the banking industry.
31
(e) The Nigerian capital market: Nigerian Stock Exchange (NSE), Security
and Exchange Commission (SEC), the Specialised or development
banks, insurance companies. Roles of money and capital markets in
economic activities.
(f) Monetary policy and Exchange rate policy and their relationships
with fiscal policy.
7. ECONOMIC GROWTH AND DEVELOPMENT (5%)
(a) Theories of economic growth and development

(b) Economic growth with and without technological progress
(c) Nature and scope of government intervention in development
processes
(d) Role of private sector and non-governmental organisations in
economic development
(e) Role of international institutions in economic development.
INTERNATIONAL ECONOMY
8. INTERNATIONAL TRADE (5%)
(a) International Trade – Definition, advantages and disadvantages

(b) Theories of trade – comparative advantage, strategic theory, etc.
(c) Free trade and trade restrictions. Argument for and against trade
restrictions.
(d) World Trade Organisation (WTO), the Doha Agreement and African-
Caribbean-Pacific Agreement.
9. THE BALANCE OF PAYMENTS AND EXCHANGE RATES (5%)
(a) Balance of payments – Definition, and components

(b) Relationship between balance of trade and balance of payments
(c) Balance of payment equilibrium and disequilibrium – implications
and corrections
(d) Alternative exchange rate regimes: fixed, floating and crawling peg
exchange rates
(e) Currency devaluation, depreciation and appreciation, and their
implication for business environment.
10. THE GLOBAL ECONOMY (5%)
(a) Globalisation and developing countries

(b) Concepts and forms of regional integration
(c) African regional economic communities: African Union (AU),
Economic Community of West African States (ECOWAS), East African
Community (EAC),South African Development Community (SADC),
Common Market of Eastern and Southern Africa (COMESA), etc.
(d) Activities of international institutions like International Monetary
Fund (IMF), World Bank (WB), African Development Bank (ADB),
32
Organisation of the Petroleum Exporting Countries (OPEC), United
Nations Conference on Trade and Development (UNCTAD), Economic
Commission for Africa (ECA), etc.
COMPONENT B BUSINESS ENVIRONMENTS
11. MANAGEMENT CONCEPTS AND THEORIES (5%)
(a) Nature and Purpose of Management - Definitions

(b) Art and Science of Management; Management levels, skills and roles
(c) Process of Management - Planning, organising, staffing, leading and
controlling
(d) Managerial and organisational performance - Efficiency and
effectiveness
(e) Domain of Business - Production, Marketing, Finance and Human
Resources Management
(f) Evolution of Management Thought - Pre-classical contribution;
classical school - Scientific Management, Fayol’s Principles of
Management, Max Webbers’ theory of bureaucracy; and neo-classical
school - human relations school.
(g) Modern Theories - systems and contingency theories; the inter-
relationships between the schools of thought.
12. ENVIRONMENT OF MANAGEMENT (5%)
(a) Nature and role of environment of management

(b) Types; internal, external and global environments.
(c) Analysis of environmental factors - Ecological, economic, social,
technological, political, legal and cultural factors. Globalisation and
its impact on management; Environmental scanning.
(d) Business ethics and social responsibility; perspectives of ethics and
social responsibility; monitoring social demands and expectations;
changing concept of social responsibility.
13. MANAGEMENT TECHNIQUES (10%)
(a) Management by Objectives

(b) Stress Management
(c) Time Management
(d) Forecasting techniques
(e) Decision tree
(f) Budgetary control techniques
(g) Program evaluation and review technique (PERT)
(h) Break-even analysis
(i) Total quality management
(j) Just-in-time inventory control
(k) Change management
33
14. MANAGING WORK AND ORGANISATION (10%)
(a) Planning - Types, approaches, benefits, and processes constraints to

effective planning.
(b) Organising - the concept of organisation, nature and purposes,
organisation structure, design and effectiveness; formal and informal
organisation
(c) Patterns of departmentalisation; by function, product, geography,
customer, process, time, matrix organisation, choice of pattern of
departmentalisation; line and staff authority; centralisation and
decentralisation; delegation of authority; span of control.
(d) The determinants of organisational structure - strategy, size,
technology and environment; the impact of structure on
organisational performance.
The need for and techniques of co-ordination, managerial hierarchy,
roles, procedures, plans and goals.
(e) Decision making - Types, programmed/non-programmed; Decision
making under certainty, risk and uncertainty; rational decision
making model and its limitations; management by objectives.
(f) Controlling - the nature and purpose of control; control process. Key
performance areas; control techniques; characteristics of effective
control system.
15. ORGANIC BUSINESS FUNCTIONS (5%)
(a) Managing People in an organisation

(i) Characteristics of Effective Communication Systems
Staffing - Manpower planning; job analysis, job
description.
Job specification; recruitment; selection and placements.
Training and development, performance appraisal
Compensation and welfare services.
Discipline, promotion and separation.
Nature of industrial relations – collective bargaining, legal
framework and dispute settlement.
(ii) Motivation - Roles of motivation; theories of motivation,
content, process and reinforcement theories, implication of
motivation theories for management.
(iii) Leadership - The nature and role of leadership in
organisations; leadership styles and effectiveness; approaches
to leadership; managerial grid.
(iv) Communication - Definition, types, channels and process of
communication, importance of effective communication;
barriers to effective communication. Characteristics of
effective communication.
34
(b) Production Functions – the scope of production management;
production planning and control; scheduling; facility location and
layouts; productivity and productivity improvement schemes.
Material requirements, planning and purchasing; inventory control
and quality assurance.
(c) Marketing Functions - Nature of marketing; marketing concepts;

marketing functions; market segmentation; marketing research;
elements of consumer behaviour, marketing mix – product; pricing;
distribution and promotion strategies. Sales forecasting, planning
and budgeting.
16. APPLICATION OF IT IN BUSINESS ENVIRONMENT (5%)
IT productivity tools including:

(i) Word processing software
(ii) Presentation software
(iii) Internet usage and applications
(iv) e-mails and their business applications
E. CONTACT HOURS - 80
F. RECOMMENDED TEXTS:
Adebayo A. (1998), Economics: A Simplified Approach, Volumes 1 & 2, Lagos:

African International Publishing Ltd 1999, 1998.
Black, John (2002) Oxford Dictionary of Economics, 2nd Ed, New York: Oxford
University Press.
Inegbenebor A. U. and Osaze E. B. Introduction to Business, Lagos Malthouse Press
Limited.
Management in Nigeria: Published by the Nigerian Institute of Management,
Lagos
Nigerian Management Review: Published by the Centre for Management
Development (CMD), Lagos.
Ojo, J.A.T. and O. Adewunmi, Banking and Finance in Nigeria, Graham Burn.
Sloman John (2006), Economics, Prentice Hall, 6th Ed.
Stoner, A. F., Freeman R. E, and Gilbert, D. R. 1995, Management, New Delhi
Prentice-Hall Incorporated 6th Ed.
ASCON Journal of Management: Published by Administrative Staff College of
Nigeria (ASCON), Badagry.
35
21.2 INTERMEDIATE
21.2.4 PAPER 4: COSTING AND QUANTITATIVE TECHNIQUES
A. OBJECTIVE
• Mastery of the concepts and principles of Cost Accounting and their
applications in pricing decisions and other control matters in public and
private sectors.
• Ability to analyse and predict cost behavioural patterns as output and

market factor vary and the impact of patterns on profit and loss.
• Ability to apply appropriate methods and techniques in collecting,

measuring and reporting cost information relevant to business and other
activities.
• Familiarity with basic concepts and processes in Statistics, Business

Mathematics and Operations Research
• Ability to employ suitable mathematical models and techniques to solve

problems involving rational choice among alternatives.
B. LINKAGES
This paper is linked to papers 1, 3, 6, 7, 9, 11, 12 and 14
SECTION A: (40 Marks) – A number of compulsory multiple choice and short

SECTION B: (60 Marks) – Out of seven essay-type questions, candidates are

C. CONTENTS
COMPONENT A COSTING
1. INTRODUCTION TO COST ACCOUNTING (10%)
(a) Definition and purpose of cost accounting.

(b) Classification of cost by nature, functions, elements, responsibility
and behaviour.
(c) Materials accounting and control procedures including:

(i) Stock recording and management
(ii) Procurement and pricing
36
(iii) Methods of Inventory valuation
(iv) Just-In-Time purchasing and production
(v) ABC Analysis Technique
(vi) Inventory Control
(d) Labour accounting and control procedures including:

(i) Basic methods of remuneration
(ii) General features of incentive schemes
(iii) Labour costing and labour cost control.
(iv) Job evaluation, merit rating, labour turnover and their impact
on labour cost.
(e) Overhead Cost Accounting and control procedures including:

(i) Overhead classification and analysis
(ii) Overhead allocation, apportionment and absorption
(f) Cost Centre:

(i) Selection and attributable costs
(ii) Product and departmental costs
(g) Cost behavioural patterns and cost estimation
2. COSTING METHODS (10%)
(a) Operation cost

(b) Specific order costing: Job, batch, uniform and contract costing
including work-in-progress
(c) Process costing, including principles of equivalent units, treatment of
normal and abnormal losses and gains
(d) Joint products and by-product costing.
(e) Service costing.
3. BUDGETING AND BUDGETARY CONTROL (10%)
(a) Forecasting problems and techniques.

(b) Budgeting process and organisation.
(c) Preparation of functional budget such as fixed and flexible budgets,
cash budget and master budget.
(d) Behavioural aspects of budgetary control.
(e) Preparation and reconciliation of budgeted and actual results.
4. STANDARD COSTING TECHNIQUES (10%)
(a) Types and basis of setting standards such as basic, current, ideal and
normal standards.
(b) Methods of determining standard cost and the uses of standard cost.
(c) Types of variances and their analyses.
37
5. OTHER COSTING TECHNIQUES (10%)
(a) Absorption costing

(i) Reciprocal services
(ii) Absorption of overheads by product or service
(iii) Absorption costing method of income statement preparation
(b) Marginal costing
Uses of marginal costing in decision making such as production
planning, pricing decision, make or buy decision, closure of
operation, elimination of product/department/unit, accept or reject,
accepting additional order.
(c) Cost- Volume - Profit Analysis
(i) Limitations of Break-even analysis
(ii) Types of break-even charts.
(iii) Methods of calculating break-even point and other levels of
activities.
(iv) Margin of safety and ascertainment of angle of incidence.
(v) Profit volume ratio.
(vi) Prove of various levels of activities through marginal costing
income statement.
(d) Activity Based Costing Technique
6. COST CONTROL (5%)
Cost control and reduction techniques such as

(a) value analysis
(b) work study
(c) method study
(d) quality control techniques
(e) merit rating
(f) job evaluation
(g) work measurement and cost audit.
7. INTEGRATED ACCOUNTS (5%)
(a) Book-keeping entries for costing systems, integrated and interlocking

systems
(b) Reconciliation of financial and cost accounting profits
(c) Budget Classifications and Chart of Accounts (BC&COA).
(d) Computer Assisted Costing Techniques.
COMPONENT B: QUANTITATIVE TECHNIQUES
8. STATISTICS (10%)
(a) Index Numbers

(i) Meaning and purpose
(ii) Problems associated with the construction of index numbers
38
(iii) Unweighted indices: simple aggregate index, price relative
(iv) Unweighted indices: Laspeyre, Paasche, Fisher and Marshall
Edgeworth
(v) Applications of index numbers to business analysis.
(b) Probability
(i) Concept and meaning: random experiment, sample space,
sample point, events, etc.
(ii) Measurement/determination of simple probability directly
from sample
(iii) Additive law of probability/mutual exclusive events
(iv) Multiplication law and conditional probability/independent
events
9. BUSINESS MATHEMATICS (15%)
(a) Set Theory

(i) Concept and definition
(ii) Types of sets: null, subset, finite, infinite, universal and equal
sets.
(iii) Cardinality: number of elements in a set and number of all
possible sub-sets in a set.
(iv) Operations: union, intersection, difference and complement.
(v) Euler-Venn diagram: using Euler-Venn diagram in set theory.
(vi) Applications of set theory to solving business related problem
(b) Matrix
(i) Array of numbers
(ii) Meaning of a matrix
(iii) Types of matrices: identity, null, square, diagonal, symmetric
and skew symmetric, triangular matrix (upper and lower).
(iv) Basic operations with matrix:
Addition, subtraction, multiplication of matrices and
conditions under which these are possible; transpose of a
matrix.
(v) Meaning of determinant and its evaluation
(vi) Minor, cofactor, matrix of cofactors and adjoint matrix.
(vii) Inverse of a square matrix: its definition and determination
(other methods in addition to adjoint approach may be used.
Also, limited to at most 3 by 3 matrix).
(viii) Solution of systems of linear equations including Cramer’s
rule.
(ix) Applications of matrices to solving business related problems.
(c) Differentiation
(i) Concept and Meaning:
Measures of rate of change as derivative or slope measure of
marginal.
39
(ii) Rules for differentiating the following functions: polynomial,
product, quotient, function of function , implicit function,
exponential and logarithmic functions.
(iii) Second-order derivative.
(iv) Application of a differentiation: finding marginals, break-
even points, elasticity, maximum and minimum values.
(v) Simple partial differentiation of first order.
10. OPERATIONS RESEARCH (15%)
(a) Basic Linear Programming Techniques

(i) Concept and meaning (as a resource allocation tool).
(ii) Underlying basic assumptions
(iii) Problem formulation in linear programming.
(iv) Methods of solution
• graphical methods (for two decision variables only)
• simplex method (limited to three decision variables)
(b) Network analysis

(i) Concept and meaning
(ii) Network diagram – Activity –on-Node Network diagram
- Activity –on –arrow Network diagram
(iii) Concept of the following terms:
• floats, slack, earliest time, latest time, etc.
(iv) Methods of network analysis
• critical path method (CPM): using floats and without
using floats
• meaning of critical path and how to determine it
• Programme Evaluation and Review Technique (PERT)
(c) Replacement analysis

(i) Meaning and purpose
(ii) Replacement of items that wear gradually.
(iii) Replacement of items that fail suddenly.
(d) Transportation Model

(i) Nature of transportation models
(ii) As special linear programming problems.
(iii) Concept of balanced and unbalanced transportation problems.
(iv) Methods of providing basic initial solutions to transportation
problems: Northwest Corner rule, Least Cost, Vogel’s
approximation method.
(v) Test for optimality of the solution using the Stepping Stone
method.
(vi) Solving assignment problem as a special transportation
model.
D. CONTACT HOURS: 80
40
Biggs, W.W., Cost Accounts, Macdonald and Evans

Dandago, K.I. and Tijani, B. Cost and Management Accounting, Lagos:
Malthouse Press
Horngren, C.T., Cost Accounting – A Managerial Emphasis, Prentice – Hall
Lucey, T.7 Costing, ELBS Texts
Lucey, T. 1996, Quantitative Techniques: An Instructional Manual, DPP
Publications Ltd.
ICAN Study Pack Quantitative Analysis, published by V/I Publishers, 2006
ICAN Study Pack, Costing, V/I Publishers,. 2006
ICAN Study Pack, Costing and Quantitative Techniques, V/I Publishers, 2009
Marsland, M.W., Quantitative Techniques for Business, Polytechnic
Omolehinwa, E. Coping with Cost Accounting, Pumark Publishing Ltd, 2nd
Ed. 2000.
Soyibo, A. and Adekanye, F., Linear Programming for Business and Finance
F & A. Publishers Ltd.
Wheldon, H. J., H.J., Owler, L. W.J., and Brown, Cost Accounting and Costing
Methods, Macdonald and Evans.
41
21.2.5 PAPER 5: TAXATION
A. OBJECTIVE
• Understanding and general awareness of Nigerian tax environment.

• Knowledge of the provisions of statutes in taxation and their interpretations.
• Ability to compute tax liabilities based on relevant statutes.
• Knowledge of ethical issues – implications of confidentiality, conflict of
interest and disclosure of information in tax practice.
B. LINKAGES
This paper is linked to papers 2, 3, 12, 13, 14 and 15
SECTION A: (40 Marks) - A number of compulsory multiple choice and short

SECTION B: (60 Marks) - Out of six essay-type questions, candidates are

C. CONTENTS
1. GENERAL SYSTEM OF TAX AND TAX ADMINISTRATION (20%)
(a) Definition, nature and objectives of taxation.

(b) Distinction between taxes and other levies.
(c) Historical background and the structure of Nigerian tax system.
(d) Sources of various tax laws.
(e) Jurisdiction in respect to rules of residence as applicable to
individuals, families, estates, executors and itinerant workers.
(f) General guidelines and practical procedures for the registration of tax
payers.
(g) Knowledge of the relevant documents necessary for filing returns for
various taxes and relevant tax authorities.
(h) Returns, assessment procedures and collection of taxes, interests on
overdue tax.
(i) Objections, appeals and enforcement.
(j) Multiplicity of taxes:
- Act No. 21 of 1998 and conflict between it and the 1999
Constitution.
(k) Organs of administration.
(l) Tax Clearance Certificates – nature, objectives, relevance and
problems.
42
2. INDIVIDUAL ASSESSMENT, TRUST SETTLEMENTS AND ESTATES (30%)
(a) General familiarity with the relevant laws and practice, income
chargeable and exemptions
(b) (i) The employee:
• Definition of employee and legal meaning of income.
• Salaries, pensions, charge, annuities, fees, gratuities,
allowances and benefits-in-kind.
• Allowable and disallowable expenses and related case
laws.
• Assessments and collection of taxes.
• Pay-As-You-Earn.
(ii) Partnerships and Joint Ventures.
(c) Sole Traders:
(i) Meaning of a trade or profession.
(ii) Adjustment of profits of a trade or profession.
(iii) Basis periods including commencement and cessation years.
(iv) Change of accounting dates
(v) Treatment of business losses – types of relief and their
treatment, losses of new trade or business in commencement
and cessation years.
(vi) Nature, computation and objectives of capital allowances and
reliefs available
(d) Treatment of Unearned income:
(i) Income from rent on property, including contractor-financed
projects.
(ii) Income from savings.
(iii) Dividends and interests.
(iv) Assessments and payments.
(e) Taxation of non-resident individuals deriving income from Nigeria.
(g) Trust settlements.
(h) Estates.
3. TAXATION OF LIMITED LIABILITY COMPANIES (30%)
(a) Company income tax:

(i) Adjustments of profits
(ii) Claims for loss relief and computation of Assessable Profits
(iii) Claims for capital allowances and computation of total profits.
(iv) Franked investment income.
(v) Computation of tax liability.
• basis periods including commencement and cessation
years.
• change of accounting dates
• treatment of business losses – types of relief and their
treatment, losses of new trade or business in
commencement and cessation years.
• nature and objectives of capital allowances and reliefs
available
43
(vii) Assessment and payment of income taxes, including minimum
tax provisions.
(vii) Special considerations:
• Turnover tax.
• Small company relief.
• Specialised businesses, including real estate, agriculture,
transportation and telecommunication
(b) Education Tax
(i) Objectives and basis of computation.
(ii) Education tax fund management.
(c) Withholding Tax
• relevant tax authority.
• income subject to withholding tax.
• time and mode of claims.
• refunds; grounds and procedures.
• remittance to tax authorities.
(d) Preparation of taxation accounts:
Deferred Taxation.
Withholding Tax.
Education Tax.
Income Tax.
4. VALUE ADDED TAX AND STAMP DUTIES (10%)
(a) Value Added Tax:

(i) Definition, nature, objectives and administration
(ii) Taxable persons and taxable supplies and services
(iii) Input and output VAT
(iv) Exempt, zero and zero rated supplies and services
(v) Withholding VAT
(vi) Returns.
(vii) Preparation of VAT Accounts.
(viii) Penalties.
(b) Stamp Duties:
(i) Definition, nature and objectives.
(ii) Forms of stamp duties and computations.
(iii) Administration - territorial limits, methods of stamping.
(iv) Adjudication - limits and appeals.
(v) Transactions attracting stamp duties.
5. COMPUTER AIDED TAX PLANNING AND MANAGEMENT (10%)
(a) Overview of tax planning process

(b) Basics of spreadsheet application in tax planning
(c) Using spreadsheet to model:
(i) payee tax
(ii) capital allowances computations
(iii) company income tax, etc
44
(d) Benefits and challenges of computer aided tax planning and
management
NOTE: STUDENTS ARE EXPECTED TO BE FAMILIAR WITH RELEVANT DECIDED

CASES AS WELL AS OFFENCES, PENALTIES AND ENFORCEMENT PROVISIONS
OF TAX LEGISLATIONS.
Afe, Ogundele, Element of Nigerian Taxation 1999

Afe, Ogundele, Value Added Tax (Theory and Practice) 1996
Ariwodola, J. A., Personal Taxation in Nigeria, J. A. A. Nigeria Limited. 4th Ed,
including Capital Gains Tax 5th Ed, 2008.
Ariwodola, J. A., Companies Taxation in Nigeria, J. A. A. Nigeria Limited. 3rd
Ed, including Petroleum Profits Tax, 2000.
Arogundade, J. A, Nigerian Income Tax and Its International Dimensions,
2005 Ed.
ICAN Study Pack, Taxation V/I Publishers, 2006
ICAN Study Pack, Taxation, V/I Publishers, 2009, 2nd Ed.
Ola, C. S., Nigerian Income Tax in Practice, C. S. S. Ltd., Lagos
45
21.2.6 PAPER 6: AUDIT AND ASSURANCE
A. OBJECTIVE
Familiarity with and knowledge of, the basic objectives, principles and concepts of
auditing.
Understanding of the risks, methods, techniques and processes of auditing,
including planning and control.
Ability to audit computerised accounting systems.
Ability to communicate effectively with management and internal auditors, audit
committees, shareholders, regulatory agencies and specialists.
Understanding of the regulatory and ethical considerations governing assurance
engagements.
Ability to identify the requirements of the audits of various organisations.
B. LINKAGES
This paper is linked to papers 1, 2, 3, 4, 5, 7, 10, 11, 13 and 15.

answer questions, covering the entire syllabus.
SECTION B: (60 Marks) - Out of six essay-type questions, candidates are
C. CONTENTS
1. FUNDAMENTALS AND PRINCIPLES OF AUDIT (10%)
(a) Development and objectives of audit.

(b) Auditing techniques: their limitations, audit evidence and
documentation.
(c) Independence, objectivity, integrity, confidentiality, skills, due care and
competence.
(d) “True and fair” view, materiality and professional judgement.
2. REGULATORY AND ETHICAL ISSUES (15%)
(a) Scope and terms of engagement of auditors as provided in:

(i) Companies and Allied Matters Act, 1990
(ii) Banks and Other Financial Institutions Act 25 of 1991.
(iii) Insurance Act of 2003.
(iv) Pensions Reform Act, 2004
46
(v) Nigerian Accounting Standards Board Act, 2003
(vi) Nigerian Standards on Auditing (NSA).
(vii) Other International Regulatory Bodies: Auditing Practices Board of
the United Kingdom, etc.
(viii) Statements of Accounting Standards (SAS)
(b) Candidates to be familiar with the instruments establishing various
organisations such as SEC, NDIC, PENCOM, CBN, NASB, Bureau for Public
Enterprise, etc.
(c) Professional pronouncements and their applications, that is, guidelines and
standards of the Institute and other International Bodies.
(d) Supervision and monitoring of auditors:
(i) Quality control, working papers, peer review.
(ii) Functions and responsibilities of the Institute in supervising and
monitoring auditors
(iii) Threats to auditors’ independence and their resolutions:
conflicts of interest, beneficial shareholding, financial involvement
with or in the affairs of clients, personal relationships, audit fee, etc.
3. INTERNAL AUDIT AND CONTROL (15%)
(a) Scope and purpose of internal audit.

(b) Reviewing the relationship between external and internal audits.
(c) Internal control system and corporate governance.
(d) Outsourcing the internal audit functions.
4. AUDIT PLANNING AND CONTROL PROCEDURE (15%)
(a) Reviewing the client’s operational background with regard to its financial,
legal and personnel situations and the industry environment in which it
operates.
(b) Allocation and supervision of work and responsibilities.
(c) Designing the audit programme.
(d) Examining the impact of relevant legislations on the performance of
an audit.
(e) Evaluating the quality of the audit and maintaining adequate working
papers.
(f) Planning, documenting and monitoring of time and costs.
(g) Establishing procedures for obtaining audit evidence, including balance and
transaction testing such as third party confirmation, analytical procedures
and management representation.
(h) Quality control and peer review.
5. SUBSTANTIVE PROCEDURES (10%)
(a) Verification principles.

(b) Verification of
(i) current assets, fixed assets and liabilities.
(ii) intangible assets, goodwill, patents, trademarks, copyrights,
franchise.
47
(iii) debenture loans and borrowing.
(iv) reserves, equity.
(v) income and expenditure.
(vi) revenue and expenses.
(vii) sales/purchases.
(viii) wages and salaries.
(ix) other income and expenditure account items.
(c) Audit documentation.
6. APPLICATION OF INFORMATION TECHNOLOGY IN AUDITING (15%)
(a) Understanding the impact of Information Technology in audit environment.

(b) Application of Computer Assisted Auditing Techniques (CAATs) in the Audit
process.
(c) The Role of Auditors in IT security controls implementation.
(d) Internal Control Environment.
(e) Overview of General and Application Controls
(f) IT General Controls - COBIT Framework.
7. INTRODUCTION TO PUBLIC SECTOR AUDIT (5%)
(a) Appointment, powers and functions of the Auditor-General of the Federation,

State and Local Government,
(b) Auditing for compliance with legislative and related authorities.
(c) Role of Public Accounts Committee in the Audit Process.
(d) Internal audit in the Public Sector.
(d) Value-for-money audit.
(e) Due Process and the Public Procurement Act, 2007
8. AUDIT REPORT (5%)
(a) Audit Report: Statutory and non-statutory, qualified and unqualified.

(b) Reviewing subsequent events, ‘going concern’ status, management
representation and the ‘truth and fairness’ of financial statements.
(c) Relationship of auditors with audit committees and third parties.
9. INTRODUCTION TO ASSURANCE (10%)
(a) Definition and Scope of Assurance.

(b) Due Diligence.
(c) Forensic Audit and Assurance.
48
Adewunmi, Wole, 1992, Bank Audit, University of Lagos Press.

Aguolu Osita, 1998, Fundamentals of Auditing, Rex Charles & Patrick Ltd.,
Nimo, Anambra State, Nigeria.
Arens, A.A. and Loebbecke J.K., Auditing: An Integrated Approach, Prentice
Hall.
Chambers, A.D. et al Internal Auditing: Theory and Practice, Pitman.
Dunn, J., Auditing: Theory and Practice, Prentice Hall
ICAN Study Pack, Principles and Practice of Auditing, V/I Publishers Ltd.
2006.
ICAN Study Pack, Audit and Assurance, V/I Publishers Ltd. 2009.
INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA: Professional Code of
Conduct, V/I
Johnson, A.A, An Introduction to Business Data Processing and Computer
Audit, City Publications Ltd., Lagos.
U.K. National Audit Office, A Public Audit Manual I & II National Audit
Office.
49
21.2.7 PAPER 7 - BUSINESS COMMUNICATION AND RESEARCH
METHODOLOGY
A. OBJECTIVE
To examine candidate’s ability to:
• Construct and use English Language effectively both in writing and speaking,
and use it as communication tool to carry out various functions.
• Identify researchable problems; to systematically and purposefully gather data
from a variety of relevant sources on chosen topics;
• Conceptualise and originate study and design appropriate method of presenting
the result for decision making;
• Search for and use existing knowledge on a subject matter to develop the
framework for advancement in the understanding of it (subject matter) and the
basis for advancing such knowledge;
• Apply IT tools in research activities.
• Use various methods of referencing borrowed materials from existing published
and unpublished interactive.
• Use statistics to analyse and interprete data in research.
B LINKAGES
This paper is linked to papers 3, 4, 6, 8, 11 and 13.

answer questions covering the entire syllabus
SECTION B: (60 marks) – Answer the question on Case Study and any other three.
C. CONTENTS
COMPONENT A BUSINESS COMMUNICATION
1. COMMUNICATION AND LANGUAGE (7%)
Concepts of communication and language and their relationship

Importance of communication in business
Principles of effective business communication
2. TYPES OF COMMUNICATION (8%)
(a) Formal Communication

• Vertical Downward Communication
• Vertical Upward Communication
• Horizontal/Diagonal Communication
(b) Informal Communication
• Grave vine
• Rumour
50
(c) Barriers to Effective Communication
3. REPORT WRITING - COMMUNICATION PERSPECTIVE (20%)
Types of Report Writing

• Routine/Regular
• Progress/Technical
• Attributes of good report writing
• Importance of reports to management decision making process
• Speech writing
COMPONENT B STATISTICS
4. METHODS OF DATA COLLECTION AND ANALYSIS (20%)
(a) Handling statistical data:

(i) Methods of collecting statistical data
• questionnaire/schedule, interview, observation, mailing
(ii) Classification of data:
• by types: (numeric and non-numeric)
• by source (origin): Primary and Secondary
• by use: agricultural, demographic, health, education,
power and energy.
(iii) Presentation of data:
• tabular presentation: frequency table and cross
tabulation
• characteristics of a table: title, heading, foot-note,
source etc.
• charts: bar charts (simple, component, percentage
component and multiple), pie-chart, Z-chart, Gantt
chart
• graphs: histograms, polygon, ogives, Lorenz– curve
(iv) Sampling:
• purpose of sampling
• methods of sampling: simple random sampling,
stratified, systematic, quota and multi-stage.
• advantages and disadvantages of each.
(b) Measures of location

(i) Measures of central tendency
• mean (arithmetic, geometric and harmonic).
• other measures: median and mode.
(ii) Measures of partition
• percentiles, deciles and quartiles.
(c) Measures of variation/spread/dispersion

(i) range, mean deviation, mean absolute deviation, variance and
standard deviation.
51
(ii) co-efficient of variation.
(iii) skew ness.
(d) Measures of relationships

(i) Correlation (Linear)
• meaning and purpose
• scatter diagram
• types of correlation: positive, zero and negative
(ii) Correlation co-efficient:
• Meaning
• Types: Pearson product moment correlation,
Spearman’s +rank correlation co-efficient
• Determination and interpretation of correlation
coefficient
(iii) Regression Analysis (Linear)
• meaning and purpose
• fitting of regression line by graphical method and
normal equation/least squares method
• interpretation of regression constant and regression co-
efficient
• use of regression line in forecasting and its limitations
• co-efficient of determination: meaning and
interpretation, testing the equality of several means:
analysis of variance (ANOVA)
- Chi-square test
- t-test of difference of means
COMPONENT C RESEARCH METHODOLOGY
5. INTRODUCTION TO RESEARCH METHODOLOGY (5%)
(a) Definition and purpose of research

(b) Types of Research
- Applied
- Basic
(c) Other types of research
(d) Importance of research
(e) Relationship between types of research
(f) Problems of research in Nigeria
6. STAGES OF RESEARCH (20%)
(a) Problem identification

• Objective of study
• Statement of the problem
• Significance of Study
• Development of Research Questions and hypotheses
• Identification of Variables - dependent and independence
52
(b) Review of Related Literature
• Purpose, Division and Sequence of Literature Review
• Checklist for Reviewing Literature
• Special Hints on Review of Related Literature
(c) Research Design and Methodology
• Overview of Research Design
• Types of Research Designs
• Characteristics of a Good Design
• Research Instruments
• Validity of Experimental Design
• Factors affecting Internal Validity
• Factors affecting External Validity
• Research Population, Sample and Sample Size
• Probability/Random Sampling
• Non-Probability (Non-Random) Sampling
(d) Data Collection
• Sources of Data
• Validity and Testing Data
• Methods of Data Collection
(i) Questionnaire – Aims and Objectives
• Qualities of Good Questionnaires
• Types of Questionnaire (Contingency, Scale, Open &
Close-Ended Questions)
(ii) Interview: Types (Structured and Unstructured) and its
Guidelines
(iii) e-interview
(e) Measurement Scales
(f) Validity of Instrument and its Types
• Face Validity
• Content Validity
(g) Reliability Test and Different Methods of Measurement
(h) Costing of Research Project/ Research Budget
(i) Hypotheses testing
(j) Test of significance/Confidence Intervals
7. USE OF IT IN RESEARCH ANALYSIS (5%)
(i) IT tools for effective research activities and reporting

(ii) Internet resources and usage in research
(iii) Data organisation and analysis tools:
• Introduction to Statistical Package for Social Scientist (SPSS)
• Use of spread sheet in data analysis
• Presenting research reports using PowerPoint application.
8. REFERENCE AND BIBLIOGRAPHY (5%)
(a) Differences between reference and bibliography

(b) Methods of referencing
- American Psychological Association (APA) style
53
- Turban Kate style of referencing
- Modern Language Association of America (MLA) style
- Harvard style of referencing
- The Chicago style
9. REPORT WRITING - RESEARCH (10%)
To include:
(a) Attributes of a good report
(b) Presenting the findings of the study
(c) Interpreting the findings
(d) Methods of presenting the findings of the study
(e) Drawing inference and conclusions from the results of the study
(f) Developing recommendations and signposts for future research from
the findings
(g) Executive summary
D CONTACT HOURS: 80
E RECOMMENDED TEXTS
C. Lowthorpe: Ethical Issues in Accounting – Routledge

John L. Colley: Corporate Governance - McGraw-Hill Professional
ICAN Study Pack, Business Communication and Research Methodology,
V/I Publishers, 2006.
ICAN Study Pack, Business Communication and Research Methodology, V/I
Publishers, 2009
Mark Saunders, Philip Lewis and Adrian Thornhill (2007), Research Methods
for Business Students, Pitman Publsishing, England.
Obadara, E. O., 2008, Essentials of Research Methodology
Philip G. Cottell Jr., Terry M. Perlin: Accounting Ethics: A Practical Guide for
Professionals - Quorum books
ICAN: Code of professional ethics, V/I
IFAC: Professional code of conduct
54
21.3 PROFESSIONAL EXAMINATION I
21.3.1 PAPER 8: INFORMATION TECHNOLOGY
A. OBJECTIVE
• General knowledge of Information Technology concepts, principles and

technologies applicable in business;
• Understanding of general IT infrastructure and related hardware such as:
servers, networks, switches, routers, cable models, and how they work;
• General understanding of computer software systems, including the various
types and classifications such as: systems, applications and utility software
and database management systems;
• Ability to use IT tools and related technologies including electronic mail
systems and the internet in the performance of accounting and financial
reporting functions;
• Ability to offer advisory services on IT controls and assurance services as
either a consultant or an assurance provider/evaluator;
• Understanding of potential risks in the use of IT services and products, and
ways of mitigating such risks including: virus attacks, computer hacking and
other disastrous events;
• Knowledge and competences in computer disaster and business continuity
planning framework
B. LINKAGES
This paper is linked to all other papers.

SECTION B: (60 Marks) - Answer the question on Case Study and any other three.
C. CONTENTS
1. GENERAL IT KNOWLEDGE AND CONCEPTS (10%)
(a) Definition of Computers including:

• Classification based on size of the hardware
• Classification based on the methods of operation
• Basic computer hardware layout
• Some terminologies will be explained: software and hardware,
data/datum, I/O terminology, time sharing, MODEM, and
processing, etc
55
• The past: historic landmarks
• The present: today's nature and manner of computing
• The future: expectations of the future and other emerging
issues including a brief introduction to Artificial Intelligence
and Expert Systems
• Evolution of e-commerce driven by computer networks
(b) Input and Output Devices
• Input devices and their uses
• Output devices and their uses
(c) Physical Storage Devices
Data representation by computer, and storage mechanism
Hard Storage Devices
Tape, disk, Compact Disk Read Only Memory (CD-ROM),
RAID technology
(d) Network components, configurations and designs
• Local area networks/wide area networks (LAN/WAN)
• Wireless/mobile systems
• Distributed processing networks
(e) General e-commerce framework covering:
e-commerce relationships (B2B, B2C, B2G, B2E,C2B etc)
e-business application: Upstream supply chain management
e-business application: Downstream supply chain
management
e-business application: Customer relationship management
A brief discussion of security implications of e-commerce and

other related technologies
2. COMMUNICATION SUPPORTED BY INFORMATION TECHNOLOGY (10%)
(a) General Concepts of Communication including:

Web communication
SMS
Electronic files transfers
Web surfing
e-mail uses
Digital signatures and certificates
(b) Potential Risks of Communication supported by IT

Privacy issues
Secrecy issues
Copying data from one user/client and using it for the benefit
of another
Use of USB sticks and other removable devices
Forwarding data that might be unreliable for business use
Virus and worms
Web trust assurance
56
3. INFORMATION SYSTEMS ARCHITECTURE (15%)
(a) Communication Networks:

• Types and classification of networks, client
server/technologies, remote systems,
• Distributed systems, Mobile facilities,
• Hardware (mainframe, server, router, workstation, etc.)
• Software: systems software, application software, utilities
programs:
• Application development environment
• Data organisation and access methods
• Files, tables, data bases, data base management systems
• Protocols, standards, enabling technologies
• Random/sequential data access
• Professionals accountants and career paths in IT organisations
(b) Systems Development Life Cycle (SDLC)
Systems acquisition/development phases and tasks:
• Investigation and feasibility study
• Requirements analysis and initial design
• Detailed design specification/documentation
• Systems installation/implementation maintenance
• Project management techniques
(c) Business Systems
Transaction Processing Systems (TPS)
Production support systems
Executive Information Systems (EIS)
Decision Support Systems (DSS)
Expert Systems (ES),
Neural Networks (NN)
(d) Transaction Processing
Phases of transaction processing systems:
Data entry
Edit/validation of data
Data transmission
File look-ups, calculations, logical comparisons
Master file updates
Storage, record retention, back-up procedures
Accounting, control, management and reporting
Query, audit trail, ad hoc reports
Error prevention, detection, correction
Data Processing Methods
i. Batch processing
ii. On-line processing
iii. Real-time processing
iv. Distributed processing
Multi-programming, multi-tasking and multi-processing
57
4. SOFTWARE SYSTEMS (20%)
(a) Components of Software Configuration

Distinction between systems and application software
Workflow managers, middleware and other utilities
Open vs proprietary software
(b) Operating Systems Software
Disk Operating System (DOS)
User interfaces: Command Driven, Menu Driven and GUIs
Network, client/server OS
Single user vs. multi-user OS
Process management and OS
Functions of OS in Memory and file management
(c) Security Software
Authentication and access control software
Anti-virus software
Firewall and Intrusion Detection Systems (IDS)
Security assessment tools
(d) Application Software
Introduction to Accounting Software
The Basics of Excel
Principles in Peachtree and Sage Software
(e) Utility Software
Text editor, directory manager, file backup/recovery, etc
Performance monitoring software, scheduling software, etc
(f) e-Business Enabling Software
Supply Chain Management (SCM)
Customer Relationship Management (CRM)
Sales Force Automation (SFA)
Human resources management
Asset management
Enterprise Resource Planning (ERP)
Manufacturing (CAD/CAM, CNC)
Distribution and logistics software
(g) Protocols and Standards
Common Standards and Internet Protocols
Seven-layer OSI Reference Model:
(i) Physical
(ii) Data Link
(iii) Network
(iv) Transport
(v) Session
(vi) Presentation
(vii) Application
Electronic Data Interchange (EDI)

Transmission Control Protocol/Internet Protocol (TCP/IP)
Wireless Application Protocol (WAP)
Packet Switching
58
Uniform Resource Locator (URL)
Domain Name Server (DNS)
File Transfer Protocol (FTP)
Hypertext Transfer Protocol (HTTP)
Hypertext Mark-up Language (HTML)
Extensible Mark-up Language (XML)
Extensible Business Reporting Language (XBRL)
Internet Relay Chat Protocol (IRC)
5. DATA ORGANISATION, ADMINISTRATION, ACCESS METHODS AND

E-GOVERNMENT TOOLS (10%)
(a) Data Structures and File organisation

Data Basics : characters, records, files, multi-media
Precision of data
Data relationships: one-to-one, one-to-many, many-to-many
Conceptual data modelling
Normalisation of data
Logical vs physical
Entity-relationship diagramming
Referential integrity
Table structure: Tree, Flex
Distributed data basics
(b) e-Government tools and software

Accounting software models in government operations
Introduction to Microsoft office government edition
Introduction to billing software
6. IT CONTROLS AND THE CONTROL ENVIRONMENT (10%)
(a) Approaches to IT Risk Management

IT risk strategy
Policy statements, oral and written communications
IT risk tolerance
Acceptability of IT risk level
IT risk measurement: Qualitative/quantitative risk approach
strategies
(b) IT Governance Issues
IT governance framework
Level of IT oversight in the organization
Knowledge of IT in the oversight board
Pro-active IT risk detection systems
(c) Flow of authority and responsibility within the IT function
Segregation of IT functions
Authority structure in the IT function
Responsibility of IT control structure:
i. Board, Top Management
59
ii. IT management and IT personnel
iii. User departments and individuals
iv. Auditors
(d) Setting IT objectives
IT strategic objectives
Mission/Vision/Purpose
Relation entity strategy objectives/IT strategy objectives
IT goals/measurements metrics, e.g. the BSC
(e) Conducting IT Control Activities
IT Control Frameworks:
COBIT,
ITCG,
Web Trust
(f) IT Asset safeguarding
Prevention/detection of fraud, error and illegal acts
Privacy
Confidentiality
Copyright issues
(g) Systems Reliability Issues
Availability and continuity (back-up, recovery)
Access controls (physical, logical)
Processing integrity (completeness, accuracy, timeliness,
authorisation)
Data integrity
Comparability
Authorisation
Auditability
(h) Types of Control Activities
IT Top-Level Reviews
Direct IT Functional or IT Activity Management
Information Processing Controls
Manual Controls
IT Performance Indicators
Segregation of IT Duties and Functions
(i) Systems Evaluation Procedural Controls
Systems analysis and documentation (e.g. flowcharting
packages, review of program logic, etc.)
Systems/program testing (e.g. test data, integrated test
facility, parallel simulation, etc.)
Data integrity testing (e.g. generalized audit software,
utilities, custom programs, sampling routines, etc.)
Problem solving aids (e.g. spreadsheet, database, on-line data
bases, etc.)
Administrative aids (e.g. word processing, audit program
generations, work paper generators, etc)
7. EMERGING ISSUES IN INFORMATION TECHNOLOGY (5%)
• Cloud computing
• Computer forensic
60
8. EMERGING ISSUES IN TELECOMMUNICATIONS INDUSTRY (5%)
• 2G
• 3G
• WI - Max
9. CASE STUDY (15%)
Candidates will be required to apply different aspects of this paper to solve

problems and also draw on the knowledge of other interlinked papers at
lower or the same levels of the Institute’s examinations.
ACCA Study Text: December 2004/2005; Information Systems; FTC Foulks Lynch
Certified Information Systems Auditors, CISA (2004); CISA Review Manual 2005,
Illinois, USA
Essinger James (1998); The Virtual Banking Revolution. United Kingdom; Thomson
Business Press.
Gerald V. Post and Andersen David L. (2000); Management Information Systems:
Solving Business Problems with Information Technology. London: Irwin McGraw-
Hill.
ICAN Study Pack, Management Information Systems, V/I Publishers, 2006
ICAN Study Pack: Information Technology, V/I Publishers, 2009
Laudon, Kenneth C. and Laudon, Jane Price (2003) Management Information
Systems: Organisation and Technology. 1st Ed, London: Prentice Hall
Pressman Roger S. (1992); Software Engineering: A Practitioner’s Approach 3rd Ed.
New York: Mc Graw-Hill
61
21.3.2 PAPER 9: MANAGEMENT ACCOUNTING
A. OBJECTIVE
x Ability to provide relevant information to assist the management of

organisations in various sectors and at the operational and strategic levels
in planning, decision making and in controlling operations
x Ability to analyse problem situations, propose and/or evaluate alternative
courses of action
x Knowledge of the relevant quantitative techniques in solving problems
x Ability to assist management in identifying and applying appropriate
performance measurement techniques
x Use of information and communication technology in solving problems and
preparation of reports.
B. LINKAGES
This paper is linked to papers 1, 3, 4, 8 and 14

SECTION B: (60 Marks) - Answer the question on Case Study and any other
three.
C. CONTENTS
1. NATURE AND PURPOSE (5%)
(a) An overview of management accounting

(b) Management accounting as a tool of management and its role in a
changing environment.
(c) Concepts used in planning, control and decision making such as full
cost, sunk cost, marginal or direct cost, opportunity cost,
incremental cost or differential cost.
2. DECISION MAKING (15%)
(a) Short Term

(i) profit analysis - application and limitation
(ii) measuring costs and benefits, decision making involving
dropping a segment, make or buy decision, accept or reject,
incremental analysis, optimal product mix, adding new
product, etc
62
(iii) Single and Multi-Product cost-volume-profit analyses under
conditions of uncertainty
(iv) pricing
• objectives of pricing and factors influencing pricing
decisions
• pricing methods: cost and market based methods - cost
plus, marginal cost, average or lowest market prices or
negotiated prices
• product-life cycle and appropriate pricing strategies
(b) Long Term - Capital Budgeting
(i) objectives of capital budgeting
(ii) techniques of evaluating capital budgets such as pay back
period, accounting rate of return, cost benefit analysis,
discounted cash flow (DCF) techniques-net present value
(NPV), internal rate of return (IRR), and profitability index
(iii) capital rationing (single period, multi period) and use of
linear Programming
(iv) replacement theory
(c) Risks and Uncertainty
(i) measurement of risks
(ii) decision tree
(iii) portfolio theory
(iv) sensitivity analysis
(v) probability theory or expected value
(vi) utility theory
3. PLANNING (15%)
(a) Long Term

i) Objectives of long terms planning.
ii) Procedure and stages for developing long-term plan including
evaluation of alternatives
iii) Implementation of long-term plan and annual budget.
iv) Monitoring and control.
(b) Short Term
i) types of budgets
ii) budgeting process covering but not limited to identification of
objectives, search for possible courses of action, gathering data
about alternatives and measuring pay-offs, selection of course
of action, and monitoring outcomes and comparing with actual
performance alternatives approaches to budgeting such as zero-
base budgeting (ZBB). Programme Performance Budgeting
System (PPBS) and Activity-Based Budgeting (ABB).
iii) Application of IT in budgeting e.g. spreadsheet application.
63
4. CONTROL (15%)
(a) Control theory in management accounting including feedback loops,

open and closed systems.
(b) Control aspect of budgeting involving:
(i) budgetary control, its objectives and relationship
with responsibility accounting
(ii) controllable and uncontrollable outcomes
(iii) analysis of variances
(iv) investigation and evaluation of variances including use of
probability distribution and normal distribution curves
( v) behavioural aspect of budgeting including goal congruence,
motivation and the problems of dysfunctional behaviour
(c) Standard Costing:

(i) relationship of standard costing with budgeting
(ii) types of standards and procedure for setting standards
(iii) variance analysis including the use of IT
(iv) planning and operational variances
(V) control ratios
5. DIVISIONAL PERFORMANCE EVALUATION (10%)
(a) Performance measures and control in divisionalised companies:

(i) organisational arrangement – centralisation, decentralisation
and divisionalisation
(ii) methods of assessment such as absolute profit, residual
income, return on investment
(b) Transfer pricing in divisionalised companies
(i) objectives of transfer pricing
(ii) setting of transfer pricing
(iii) types of transfer pricing decision
(iv) determination of optimum transfer price
(v) International transfer pricing
6. APPLICATION OF QUANTITATIVE METHODS (15%)
(a) Cost estimation methods.

(b) Inventory control and estimation of optimum stock.
(c) Linear programming techniques.
(d) Learning Curve theory.
(e) Markov process:
• definition of Markov process
• meaning of transition matrix
• formulation of transition matrix
• equilibrium or long-run situations for Markov process.
64
(f) Simulation:
(i) Concept and meaning
(ii) Types/approaches
• Monte Carlo
• Computer approach: To know how to use some
packages on simulation
7. CONTEMPORARY ISSUES IN MANAGEMENT ACCOUNTING (10%)
Candidates will be tested on emerging issues such as Advanced

Manufacturing Technology (AMT), Backflush, Target Costing (TC), Activity
Based Costing (ABC), Throughput Accounting (TA), Life-cycle Costing (LC).
8. CASE STUDY (15%)

D. CONTACT HOURS 90
Adeniji, A.A. (2008). An insight into Management Accounting. Value Analysis

Publisher, Lagos
Asaolu, T. O. and Nasser M. L., Essentials of Management Accounting, Cedar
Productions.
Drury, C., 2000, Management and Cost Accounting, Van Nostrand Reinhold
Ltd 5th Ed,.
Horngren, C. T. 2006, Cost Accounting: A Managerial Emphasis, Prentice-Hall
12th Ed.
Kaplan, R. S., Advanced Management Accounting, Prentice-Hall (New
Delhi).
Lucey, T. 1996, Management Accounting, DP Publication 4th Ed.
ICAN Study Pack: Management Accounting, V/I Publishers, 2006
ICAN Study Pack: Management Accounting, V/I Publishers, 2009, 2nd Ed.
65
21.3.3 PAPER 10: FINANCIAL ACCOUNTING
A. OBJECTIVE
• Ability to prepare, analyse, interpret and report on financial statements.

• Knowledge and skills in understanding and applying international and local
accounting standards.
• Knowledge of theoretical and legal framework in the preparation of financial
statements of entities and groups for management use and publication.
• Technical knowledge required in keeping books, records and preparation of
accounts of specialised businesses and transactions.
B. LINKAGES
This paper would be a three hour paper divided into two sections:
Section A: (40 marks) – A number of compulsory multiple choice and short

answers questions covering the entire syllabus.
Section B: (60 marks) – Answer the question on Case Study and any other three.
C. CONTENTS
1. ACCOUNTING AND REPORTING CONCEPTS (10%)
(a) Purpose of accounting regulations, standards and other

requirements.
(b) Objectives of financial statements.
(c) Qualitative characteristics of financial information and its constraints.
(d) Differences between financial statements prepared on accrual, cash
or ‘break-up’ basis.
(e) Different basIs of measurement of elements of financial statements
and the definitions of capital and capital maintenance used in
accrual basis preparation of financial statements.
2. COMPANY REPORTS AND ACCOUNTS (15%)
(a) Preparation of published financial statements for limited liability

companies, including banks and insurance companies, in conformity
with International Financial Reporting Standards (IFRS),
International Accounting Standards (IAS) and Nigerian Statements of
Accounting Standards (SAS).
(b) Computation and interpretation of accounting ratios and trends from
Financial Statements to address stakeholder needs, including their
usefulness and limitations.
66
(c) Report writing. – Application of Extensible Business Reporting
Language (EBRL) in financial reporting.
(d) Preparation of Cashflow Statements for companies, including banks
and insurance companies, using direct and indirect methods.
(e) Accounting for bankruptcy and liquidation – Preparation of
Statements of Affairs for insolvent individuals, partnership and
limited liability companies.
• Statement of distribution by the Receiver and Liquidator.
3. ACCOUNTING FOR SPECIALISED BUSINESSES AND TRANSACTIONS (10%)
(a) Preparation of accounts of Trustees, Estate Agencies, Farmers,

Investments, Leasing, Hire Purchase, Oil and Gas, Pension and
Provident Fund, Property Companies, Solicitors, Underwriters, Unit
Trusts, Shipping Organisations, Stock Brokerage and Co-operative
Societies.
(b) Treatment of the following transactions in the financial records:
Sinking Fund and Annuities, Insurance claims, Independent and
Foreign Branches, and Contract Accounts.
4 REGULATORY AND STATUTORY FRAMEWORK (20%)
(a) Detailed contents and application of all Nigerian Accounting Standards

(SAS) issued to-date (excluding SAS 1-9 examined in FFA).
(b) Detailed contents and application of International Financial Reporting
Standards (IFRS) and International Accounting Standards (IAS) not yet
Issued by Nigerian Accounting Standards Board (NASB).
(c) Comparison of local and international standards.
(d) Generally Accepted Accounting Principles (GAAP)
(e) Arguments for and against regulations.
(f) Legislative and quasi-legislative requirements.
(i) Companies and Allied Matters Act, 1990
(ii) Insurance Act, 2003
(iii) Banks and Other Financial Institutions Act, 2003
(iv) NAICOM Act
(v) Prudential Guidelines for Banks and Non-banking Financial
Institutions
(vi) Nigerian Stock Exchange Regulations
(vii) Securities and Exchange Commissions (SEC) and Investment
and Securities Acts (ISA)
NOTE: Standards and legislations will be examined six-months after

they are issued.
5 PUBLISHED GROUP ACCOUNTS (20%)
(a) Legal and regulatory framework in the preparation of group accounts

(b) The preparation of consolidated financial statements (including
group cash flow statement) involving one or more subsidiaries, sub-
67
subsidiaries and associates, under the acquisition methods (IFRS 3
and IAS 27).
(c) The treatment of minority interests: pre and post-acquisition reserves;
goodwill; fair-value adjustments; intra-group transactions and
dividends; piecemeal and mid-year acquisitions; and disposals to
include sub-subsidiaries and mixed groups.
(d) The accounting treatment of Joint ventures and associates (IAS 28 &
31), using equity method and proportional consolidation method.
Foreign currency transactions (IAS 21 & SAS 7 ) to include overseas
transactions and investment in overseas subsidiaries.
6. APPROACHES TO COMPUTERISED ACCOUNTING SYSTEMS IN ORGANISATIONS

(10%)
(a) Accounting System Development

(b) Uses of Accounting Packages
(c) Transaction Processing Systems in a computerised environment.
7. CASE STUDY (15%)

D. CONTACT HOURS 80
Akeju, J.B., Financial Accounting Volume II, JBA Limited, Lagos.

Alexander, D., Financial Reporting: The Theoretical and Regulatory
Framework, Chapman & Hall.
Biggs, W.W. & Perrins, R.E.G. Spicer and Pegler’s Book-keeping and
Accounts, H.F.L
Jennings, A.R., Financial Accounting Manual 1 & 2, DP Publications 1993.
Lewis, R & Pendrill, Advanced Financial Accounting, Pitman 5th Ed 1996.
Wood, F & Sangster A. Business Accounting 2 - Pitman Inter 10th Ed 2005.
IASB – International Financial Reporting Standards
NASB – Statements of Accounting Standards, V/I.
Akeju, J., Financial Accounting Volume 1 (2003)
ICAN Study Pack, Financial Accounting 1 and II, V/I Publishers, 2006
ICAN Study Pack, Financial Accounting, V/I Publishers, 2009
68
21.3.4 PAPER 11: ADVANCED AUDIT AND ASSURANCE
A. OBJECTIVE
• Understanding of regulatory and ethical considerations governing the

conduct of audit and assurance engagements.
• In-depth knowledge and skills in the application of computer based
accounting system.
• Ability to prepare reports on specialised audits and investigations and
proffer tactical solutions to dynamic problems.
• Ability to exercise professional competence in dealing with problems in re-
engineering, insolvency and specialised audits.
• Ability to apply professional expertise in audits and investigations with a
view to ensuring transparency and accountability in the public sector.
• Ability to anticipate and react to current and future audit and assurance
related services.
B LINKAGES
This paper is linked to papers 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13 and 15


C. CONTENTS
1. AUDIT PLANNING AND CONTROL (10%)
(a) Development of Audit Strategy:

(i) Determination and uses of quantitative and qualitative
materiality considerations.
(ii) Multiple location and consolidated organisation
considerations.
(iii) Audit Plans and Planning Memorandum.
(iv) Factors for consideration in Audit Planning.
(b) Determination of Audit Risks:
(i) Inherent risks.
(ii) Control risks.
(iii) Detection risks.
(c) Execution of Audit Strategy:
(i) Documentation and assessment of control systems.
(ii) Nature, extent and timing of audit procedures.
(d) Organising, audit working papers and working with specialist
reports.
69
2. ISSUES IN AUDIT PRACTICE (10%)
(a) Organisation and Conduct of Professional Office:

(i) Office and office facilities
(ii) Partners relationship
(iii) Staff and management
(iv) Quality control
(v) Training
(b) Standards for Assurance Engagement:
(i) Definition and underlying concept of assurance engagement
(ii) Quality control practices and procedures, advertising and
publicity, fees, tendering, engagement letters and
consultation
(iii) Performance and reporting standards
(c) Appraisal of Expectation Gap, Responsibilities for Fraud Detection,
Prevention, Reporting Errors, Omissions, Misstatements and Other
irregularities. Case studies and implications of new developments
from Researches, Decided cases, Standards and other sources.
(d) Negotiation skills: Own office and on behalf of clients.
(e) Auditors’ liability
(f) IS audit issues in Audit and Assurance services
3. PUBLIC SECTOR AUDIT (10%)
(a) Audit of Corporations and Parastatals.

(b) Specialised Audits: Contracts, Pensions, Defence and Security
Agencies,
(c) Audit of Nigerian Foreign Missions and Agencies.
(d) Value-for-money Audit.
(e) Investigations: Uses of Probe Panels in Investigating Acts of Fraud
and Corruption.
(f) Due process review
(g) Audit of Government Accounts (Federal, States and Local
Governments).
4. SPECIALISED AUDITS AND INVESTIGATIONS (15%)
(a) Understanding of special features of certain types of situations

peculiar to:
(i) farmers, professionals, hospitals, hotels, etc.
(ii) forensic investigation and reporting.
(iii) banks, insurance companies, primary mortgage institutions,
etc.
(iv) ‘not-for profit’ organizations – Charities, NGO’s, etc.
(b) Joint Audits.
(c) Investigations
(i) Distinction between auditing and investigation.
(ii) Nature, classes and methods of investigation.
70
(iv) Auditors’ involvement with prospectuses and other offer
documents.
(iv) Examination of financial forecasts and projections.
(v) The report appropriate to each type of investigation.
(d) Insolvency and Business Recovery
(i) Various legal processes involved in corporate distress.
(ii) Differences between receivership, receiver/manager,
bankruptcy and liquidation.
(iii) Implications of insolvency for corporate governance and
‘going concern’ threats.
(iv) Legal requirements
(v) Handling insolvency assignments.
(e) Due diligence reviews for mergers, acquisitions and business
combinations.
5. PRINCIPLES AND APPLICATIONS OF PROFESSIONAL ETHICS (15%)
(a) The nature of ethics; differentiation between philosophical and

professional approaches.
(b) Concepts of integrity, obligation, independence, public expectations.
(c) Ethics and the professions; social responsibility.
(d) Ethics and the law.
(e) Consequences of unethical behaviour to the individuals, the
professions and the society at large.
(f) Ethical standards and professional responsibilities, independence,
confidentiality, objectivity, securing professional work, consultancy,
succession arrangement, disciplinary procedures, compliance with
standards and development.
(g) Relationship with fellow members, joint engagements,
communication with predecessors, special assignments and other
assurance services.
(h) Corporate Governance: Concepts and Applications
• auditors’ responsibility in relation to shareholder information
and participation rights.
• the duties and organisations of the Board of Directors and the
Management.
• systems of checks and balances.
(i) Obligation should change to objectivity.
6. LOCAL AND INTERNATIONAL LEGISLATIONS AFFECTING AUDITS (5%)
(a) Economic and Financial Crimes Commission (EFCC) Act

(b) Independent, Corrupt Practices and Other Related Offences
Commission (ICPC) Act
(c) Sarbanes-Oxley Act and other relevant international
legislations.
71
7. QUALITY CONTROL IN AUDIT AND ASSURANCE REPORTS (10%)
(a) Effects of SAS, NSA and IFRS on Audit Reports.

(b) Statutory Audit Reports:
(i) Supervisor’s Review.
(ii) Manager’s Review.
(iii) Partner’s Review.
(iv) External/Peer Group Review.
(v) Hot/Quality Control Appraisal.
(c) Reports to Management.
(d) Reports on Assurance assignments.
8. EMERGING ISSUES IN AUDIT AND ASSURANCE (5%)
• Transnational audits.
• Environmental and social audits.
9. INFORMATION TECHNOLOGY ISSUES IN ADVANCED AUDIT AND

ASSURANCE (10%)
• IT general controls environment.

• IT governance.
• IT control activities.
• Systems evaluation & procedural controls.
• IT risk assessment methodologies and processes.
• Disaster recovery.
• Auditor’s role in Systems Development Life Cycle (SDLC).
10. CASE STUDY (10%)
Candidates will be required to apply different aspects of this paper to

solve problems and also draw on the knowledge of other interlinked
papers at lower or the same levels of the Institute’s examinations.
Chambers, A. N. and Court, J. N. 1991, Computer Auditing, Pitmans, 3rd Ed.

ICAN Study Pack: Advanced Audit and Assurance, V/I Publishers, 2009.
ICAN Study Pack: Financial Reporting and Audit Practice, V/I Publishers, 2006.
Lee, T. A., Corporate Audit Theory, Chapman & Hall.
Swinson, C. H. Group Accounts, Butterworths.
Woolf, E. Auditing Today, Prentice Hall International, 1997.
Nigeria Standards of Auditing.
IFAC, IFAC Guidelines, Gee & Co.
72
21.4 PROFESSIONAL EXAMINATION II
21.4.1 PAPER 12: PUBLIC SECTOR ACCOUNTING AND FINANCE
A. OBJECTIVE
To examine candidates’ ability to:
• Understand the Legal frameworks and the Financial Authorities used in the
Public Sector.
• Describe the Accounting Concepts, Fund Accounting Concepts and various
Professional Pronouncements on Government Accounting.
• Identify the various revenue inflows to the Federation Account and
Consolidated Revenue Fund, their differing characteristics and interaction
with each other.
• Evaluate the Financial Management Cycle in Federal, States and Local
Governments and explain the main public expenditure votes – Personnel
Emolument, Overheads and Capital Votes and the rules guiding
disbursement.
• Prepare Financial Statements for Parastatals based on the enabling laws
setting each up and explain the procedure of accounting for the funds
allocated to each of them.
• Analyse the economic environment in respect of sources of revenue and
capital receipts, debt management strategies and project appraisal in
relation to medium term expenditure framework.
B. LINKAGES:
SECTION A: (40 Marks) - A number of compulsory multiple choice and

short answer questions covering the entire syllabus.
C. CONTENTS:
1. THE CONSTITUTIONAL AND REGULATORY FRAMEWORK OF PUBLIC

SECTOR ACCOUNTING (10%)
(a) The constitutional, legislative and regulatory context of government

accounting:
(i) The constitutional provisions on revenue, revenue allocation
and public expenditure (Federal, State and Local Government).
(ii) The provisions of the Finance (Control and Management Act
73
of 1958, as amended).
(iii) Financial Regulations for Federal and State Governments,
and the Financial Memoranda for Local Governments.
(iv) Federal Treasury Accounting Manual
(v) Fiscal Responsibility Act, 2007
(vi) Public Procurement Act, 2007.
(vii) The Generally Accepted Accounting Principles applicable to
the Public Sector, Local and International Sources.
(b) The economic environment of Public Sector Accounting:
• Performance of the Nigerian economy: a historical perspective
and the economic role of the public sector.
2. GOVERNMENT ACCOUNTING CONCEPTS AND PRONOUNCEMENTS (10%)
(a) Accounting concepts, bases and principles relevant to government

accounting.
(b) The concept of funds, its relationship to the entity concept and its
implications for income measurement and valuation.
(c) Professional pronouncements on government accounting by the
United Nations, the International Committee on Government
Financial Management, Chartered Institute of Public Finance and
Accountancy (CIPFA) and International Federation of Accountants
(IFAC).
(d) Standardisation of Federal and State Government Reporting Formats
in Nigeria
(e) International Public Sector Accounting Standards Board (IPSASB).
3. SOURCES OF GOVERNMENT REVENUE (10%)
(a) Types of Revenue

(i) Federation Accounts Revenue
(ii) Federal Government Independent Revenue
(b) Revenue Collection Agencies
(i) Nigerian National Petroleum Corporation (NNPC)
(ii) Federal Inland Revenue Service (FIRS)
(iii) Department of Petroleum Resources (DPR)
(iv) Nigerian Customs Service (NCS)
(c) Federation Accounts Allocation Committee
(i) Composition and functions
(ii) Bases of revenue allocation
(d) Charges to the Consolidated Revenue Fund
(e) Revenue Collection Procedures and Monitoring
(f) Preparation of Federation Account, Consolidated Revenue Fund and
Development Fund.
74
4. FINANCIAL MANAGEMENT CYCLE IN FEDERAL, STATES AND LOCAL GOVERNMENTS
(20%)
(a) Institutional Framework

(i) Financial Responsibilities of Government Officers.
(ii) Nature and types of financial control in government.
(iii) The Financial Control Institutions:- Ministry of Finance, Office
of the Accountant-General of the Federation, Office of the
Auditor-General for the Federation, Budget Office, Expenditure
Control Unit/Fund Section – their functions and procedures.
(iv) The Role of National and State Assemblies and Local
Government Councils in Financial Management and Control.
(v) Financial Warrants and virement procedures.
(b) Planning and Budgeting
(i) Preparation of Medium-Term Expenditure Framework.
(ii) Objectives/Uses of Annual Budget in the Public Sector.
(iii) Types of Budgeting
• Line – Item Budgeting System.
• Traditional/Incremental Budgeting System.
• Planning Programming Budgeting System (PPBS).
• Programme Performance Budgeting System (PBS).
• Zero - Based Budgeting System (ZBB).
(c) Budgeting Process and Budgetary Control
(i) Stages in the Budget Cycle.
(ii) Procedure for Budget Execution and Achievement of Target.
(iii) Vote Book and Expenditure Control.
(iv) Revenue Control Procedures.
(v) Internal Audit.
(d) Government Accounting Processes
(i) Preparatory of Treasury Cash Book and Transcripts.
(ii) Cash Management and Borrowing Guidelines.
(iii) Types of Vouchers and their Uses.
(iv) Bank Reconciliation Statement and its preparation.
(v) Method of preparation of standardised formats of Government
Financial Statements:.
• Subsidiary Accounts – Deposit, Advance,
Remittance/Cash Transfers.
• Treatment of loss of Government Fund.
• Payroll Accounting and Pension Fund.
• Accounting for Foreign Mission.
(e) Government Contracts
(i) Fundamental Principles for Procurement in the Public Sector.
(ii) Tendering Procedures on Construction/Contract, Goods
and Services.
(iii) Approving authority and limit.
(iv) The role of Procurement Planning Committee.
(v) Contract Payment Procedures.
(vi) Due Process Concept.
75
f) Financial Reporting
(i) Preparation of Statutory Financial Statements in Federal and
State Treasury: Cash Flow Statement, Consolidated Revenue
Fund, Development Fund and Statement of Assets and
Liabilities.
(ii) Preparation of Statutory Financial Statements in Local
Governments.
(iii) Ethical Issues in Government Accounting.
(iv) Auditor-General’s Role in Financial Reporting.
(v) Preparation of Revenue and Expenditure Accounts.
(g) Interpretation of Government Financial Statements
5. ACCOUNTING FOR PUBLIC SECTOR ORGANISATIONS, AUTHORITIES,

PARASTATALS, BOARDS, CORPORATIONS, AGENCIES AND TERTIARY
EDUCATIONAL INSTITUTIONS (15%)
(a) The general nature of and differences among these bodies .

(b) Financial provisions of enabling laws for the relevant utilities,
authorities, Parastatals, boards, corporations, agencies, and tertiary
educational institutions.
(c) Financial reporting
(i) receipts and payments accounts.
(ii) income and expenditure accounts.
(iii) the balance sheet.
(iv) value-added statement.
(v) cash flow statement.
(vi) five-year financial summary.
(d) Processes of appointing Auditors and Auditing of the Financial
Statements.
(e) Public Accountability of Government Parastatals.
(f) Financial Guidelines for the operation of Parastatals.
6. PUBLIC FINANCE (20%)
(a) The economic environment and role of the public sector.

(i) performance of the Nigerian Economy.
(ii) the economic role of the public sector.
(iii) objectives of Fiscal Responsibilities.
(b) Main sources of revenue and capital finance.
(c) Expenditure and Revenue Framework.
(d) Borrowing policy and public debts.
(i) funded and unfunded debts.
(ii) external loans: multilateral, Paris Club, London Club,
promissory notes, others.
(e) Debt Management Strategies.
(i) Loans pooling and consolidation.
(ii) Loan re-scheduling.
(iii) debt-equity swap.
(iv) debt forgiveness.
76
(f) Principles and practice of federalism, fiscal federalism, fiscal capacity
and needs in multi-level government structures.
(g) Inter-governmental fiscal relations, Nigeria’s experience with
revenue allocation.
(h) The theory and practice of grants in relation to State and Local
Governments.
(i) Project appraisal in the Public Sector
• cost-benefit analysis.
• cost-outcome analysis.
• cost-effectiveness analysis.
• net present value and internal rate of return.
• dimensions of project performance such as availability,
efficiency, outcome, effectiveness and accessibility.
(j) Rolling Plans and Perspective Plans
• relationship between rolling and perspective plans with PPBS.
• linkages between the perspective plan, rolling plan and the
annual budgets.
7. CASE STUDY (15%)

D. CONTACT HOURS 60
Bammeke, S.A.. (2008). Public Sector Accounting and Finance for Decision
Making. Lagos, Sab & Associates Limited.
Daniel, G. I. 1999, Public Sector Accounting, Ahmadu Bello University Press
Zaria
Hassan, M. M., 2001, Government Accounting, Malthouse Press Ltd., Lagos
Hassan, M. M., Financial/Management in Nigeria Local Government (2003)
ICAN Study Pack, Public Sector Accounting and Finance, V/I Publishers, 2006
ICAN Study Pack, Public Sector Accounting and Finance, V/I Publishers, 2009, 2nd ed.
Oshisami, K. 1992, Government Accounting and Financial Controls, Spectrum
Books Ltd, Ibadan
Musgrave, R. A. & Musgrave, P. B., Public Finance in Theory and Practice,
Fiscal Responsibility Act, 2007
Federal Treasury Accounting Manual (Policy and Procedure) Act 2006.
Public Procurement Act, 2007
77
21.4.2 PAPER 13: FINANCIAL REPORTING & ETHICS
A. OBJECTIVE
• Knowledge of current issues in the regulatory framework for reporting and

identification of key ethical issues for an accountant undertaking work in
accounting and reporting.
• Ability to formulate accounting and reporting policies for single entities and
groups.
• Ability to prepare and present extracts from the single entity and
consolidated financial statements for entities undertaking a wide range of
accounting transactions in conformity with Statement of Accounting
Standards (SAS), International Financial Reporting Standards (IFRS) and
accounting policies.
• Ability to analyse and interpret financial statements and other financial
information and draw appropriate conclusions.
• Ability to apply professional ethical considerations in the practice of
financial reporting.
• Understanding of the relevant ethical and professional standards relating to
the accounting profession.
• Understanding of general ethical principles and the fundamental principles
of professional ethics outlined in the IFAC Code of ethics.
• Ability to develop ethical sensitivity in the recognition of ethical threats or
issues, awareness of alternative course of action leading to ethical solution
and the effect on stakeholders.
• Ability to apply basic ethical principles to the relevant functional roles such
as financial accounting, management accounting, auditing and assurance,
taxation and other functional areas.
• Ability to take informed decisions through the integration and application of
ethical knowledge and sensitivity.
• Understanding of the concept of business ethics and its importance in
corporate governance.
B. LINKAGES
This paper will be a three hour paper divided into two sections:
Section A – (40 Marks) - A number of compulsory multiple choice and short

answer questions covering the entire syllabus
Section B – (60 Marks) - Answer the question on Case Study and any other four.
78
C. CONTENTS
COMPONENT A FINANCIAL REPORTING
1. CURRENT ISSUES IN REPORTING FRAMEWORK (5%)
(a) Accounting Standards

(i) Standards setting process
• Nigerian Accounting Standards Board (NASB)
• International bodies
(ii) Authority of the NASB and international standards
(b) Sources of reporting requirements in different jurisdictions.
(c) Principles underlying different reporting treatments.
(d) Ethical and professional issues in accounting and financial reporting:
(i) relevance and importance
(ii) merits of different viewpoints
2. FORMULATION OF ACCOUNTING AND REPORTING POLICIES (10%)
(a) Accounting and reporting policies for single entity and consolidated
financial statements
(i) laws
(ii) regulations
(iii) accounting standards
(b) Recognising and measuring assets and liabilities
(i) methods of recognising and measuring assets and liabilities of
the single entity or group
(ii) effect of the methods on the financial performance of the
single entity or group
(c) Accounting and reporting concepts
(i) fair presentation
(ii) true and fair view
(d) Circumstances in which accounting and reporting concepts may
override provisions of legislation or of accounting standards.
3. PREPARATION AND PRESENTATION OF EXTRACTS FROM FINANCIAL

STATEMENTS (10%)
(a) Extracts from financial statements

(i) extracts from financial statements of single entity according
to IFRS requirements and accounting policies
(ii) extracts from financial statements of consolidated entities
according to IFRS requirements and accounting policies
(b) Financial and other data of:
(i) subsidiary
(ii) associate
(iii) joint venture
of a single entity in accordance with IFRS
(c) Financial and other data of an entity's consolidated financial
79
statements in respect of
(i) new interest
(ii) continuing and discontinuing interests (excluding partial
disposals) in subsidiaries, associates and joint ventures in
accordance with IFRS
(d) Determination of distributable profits of single entity and allocation
of distributable profit
(e) Financial and operational information in documents containing
audited financial statements
(i) reports on operations by management or those responsible for
governance
(ii) financial summaries and highlights relevant to the legal entity
or consolidated financial statements
4. INTERPRETATION OF FINANCIAL STATEMENTS (15%)
(a) Application of SAS, IFRS and other accounting and disclosure

requirements to information provided in:
(i) single entity financial statements
(ii) group financial statements
(b) Application of relevant indicators, including ratios, trends and
interrelationships to analyse single entity or group financial position
(c) Stages in financial statements analysis
(i) choice of accounting treatments adopted in financial
statements and other financial information
(ii) identify and compare significant features in the information
supplied for a given entity or entities, including inconsistences
between the results analysed and the information supplied
(iii) specify any additional information required for a meaningful
analysis
(iv) draw conclusions and make inferences from an analysis with
respect to:
• significant features in the information supplied
• limitation of the information supplied
• analytical methods used
• economic conditions
• business circumstances
Note: The Nigerian Accounting Standards Board (NASB) is in the process of

concluding the Conceptual Framework on Financial Reports into a
standard. This will replace the existing Conceptual Framework on
Financial Statements.
80
5. ACCOUNTING STANDARDS (10%)
A thorough knowledge of the following financial statement areas with a

solid understanding of the subject matter and experience in the application
thereof sufficient to exercise reasonable professional judgement in the
application of the subject matter is required.
SAS IAS IFRS

1. First Time Adoption - - 1
2. Statement of cashflows 18 7
3. Construction contracts 5 11
Accounting for government grants and
4. - 20
disclosure of government assistance
5. Borrowing costs - 23
6. Related party disclosures - 24
Consolidated and separate financial
7. 27 27
Statements
8. Investments in associates 28 28
9. Interest in Joint Ventures 29 31
10 Financial instrument presentation - 32
11 Impairment of assets - 36
12 Intangible assets - 38
13 Investment property 13 40
14 Business combinations 26 3
Non-current assets held for sale and discontinued
15 - 5
operations
16 Operating segments - 8
COMPONENT B ETHICS
6. ETHICAL FRAMEWORK CONCEPTS AND VALUE (5%)
(a) Nature of ethics

(b) The ethical framework for accountants
(c) Rules-based and principles-based approaches
(d) The foundation of the accounting profession
(e) Ethics and the profession
(f) Accountants and their stakeholders
(g) Interests of stakeholders and conflicts
(h) Professional conduct and the public interest
(i) Behaviour and influences of stakeholders
(j) Commonly used theories and principles
81
(k) Theories of moral development
(l) Virtue ethics theory and value based education
(m) Ethics and culture
(n) Professional values, ethics and attitudes and the code of conduct for
accountants
(o) Importance of ethical courage and ethical leadership
7. THE ENVIRONMENT: CORPORATE, PROFESSIONAL AND REGULATORY (5%)
(a) The corporation and its interests

(b) Professional responsibilities
(c) The accounting profession and public expectations
(d) Professional and legal requirements in financial reporting and
auditing
(e) The concept of accountability
(f) The legal framework for businesses and accountants
(g) The role of accountants in the globalisation context
(h) The impact of legal and other reforms
(i) Investigative reports and professionalism
(j) Developments in the profession to enhance professional values,
ethics, and attitudes, including codifications and education initiatives
(k) Learning with and managing professional responsibilities through
case studies
8. PROFESSIONAL ETHICS (5%)
(a) Compliance with fundamental ethical principles

(b) Codes of ethics, including corporate codes and underlying rationale
(c) Technical and ethical standards
(d) Independence, professional skepticism, accountability and the public
interest
(e) Self-regulation and oversight functions
(f) Quality control and peer reviews
(g) Case analyses of professional issues
(h) Current developments in professional ethics and conduct
9. DECISION MAKING IN ETHICS: (5%)
Ethical decision making models
10. ETHICAL THREATS AND SAFEGUARDS (5%)
(a) Definition and scope of ethical threats and issues in accounting and
related areas
(b) Introduction of safeguards at professional and firm levels
(c) Conflicts of interest in corporate and professional environments
(d) Different types of ethical threats and ethical issues
(e) Specific ethical threats and safeguards in accounting, e.g. window
dressing/creative accounting
82
(f) Ethical threats in auditing and assurance service e.g. threats and
safeguards to independence and integrity
(g) Ethical threats in other financial services and safeguards
(h) Effects of culture on ethical issues
(i) Whistle-blowing cases and solutions
(j) A discussion of current controversial ethical issues relevant to the
profession
(k) Analysis of threats and safeguards
11. CORPORATE GOVERNANCE (5%)
(a) The nature, significance and scope of enterprise governance and threats
to effective governance
(b) Theoretical framework including agency problems
(c) Minimizing the threats of agency costs
(d) Corporate and other social responsibilities
(e) Stakeholder relationships
(f) Regulatory framework for corporate and enterprise governance
(g) The role of accountants and auditors in governance framework
(h) Governance: good practice and issues
(i) Analysis of cases of failures
(j) Global developments in enterprise and corporate governance
(k) Benchmarking governance cases in practice
12. SOCIAL AND ENVIRONMENTAL ISSUES IN ETHICS (5%)
(a) The scope, background and concept of corporate social responsibility

(b) The accountant and society including agency problems
(c) Minimizing the threats of social costs and liabilities
(d) Developments in social and environmental frameworks
(e) Measurement and accountabilities in social and environmental
reporting
(f) Issues in social responsibilities and accountabilities
(g) The role of accountants and auditors in society and businesses
(h) Analysis of cases of social and environmental failures
(i) Social and environmental accounting and issues

D. CONTACT HOURS - 80
83
E RECOMMENDED TEXTS:
Alexander, D. and Balttan, A. 1999, Financial Reporting, International Thomson
Business Press, 5th Edition.
Beaver, W. N., Financial Reporting, An Accounting Revolution, Prentice Hall
ICAN Study Pack Financial Reporting and Audit Practice. V/I Publishers Ltd. 2006
IFAC: Professional code of conduct
ICAN: Rules of Professional Conduct for Members
John L. Colley: Corporate Governance - McGraw-Hill Professional
Martin Hilb: New Corporate Governance: Successful Board Management Tools -
Springer
NASB – Statement of Accounting Standards (SASs)
IASB – International Accounting Standards (IASs)
IFRS – International Financial Reporting Standards (IFRSs)
ICAN Study Pack, Financial Reporting and Ethics, V/I Publishers, 2009.
84
21.4.4. PAPER 14: STRATEGIC FINANCIAL MANAGEMENT
A. OBJECTIVE
Understand the principles of business strategy and ability to differentiate

between corporate and financial strategies.
Appreciate the major concepts, techniques and tools employed in the
sourcing of business finance and its efficient deployment to optimise the
value of the business.
Apply appropriate Financial Management techniques in analysing the cost
and benefits of various sources of finance and capital investment
opportunities, Allowing for the effects of taxation, inflation, risk and
uncertainty.
Familiarise themselves with financial market operations including
appreciation of the role of financial intermediaries in the provision of short,
medium and long term funds
Understand the need for, as well as the techniques of, and approaches to
corporate re-organisation and re-engineering
Analyse the changing competitive business and economic environment
factors (including the impact of Information Technology - IT) and to
formulate appropriate financial strategy.
Up-date themselves with recent developments in Financial Management as
well as the international dimensions of Financial Management
B. LINKAGES
This paper is linked to papers 1, 2, 3, 4, 5, 7, 9, 10, 12, 13 and 15.
SECTION A: (40 Marks) – A number of compulsory multiple choice questions

and short answer question covering the entire syllabus:
C. CONTENTS
1. NATURE AND SCOPE OF STRATEGIC FINANCIAL MANAGEMENT (5%)
• Scope of Strategic Financial Management.

• Goals and Objectives of Corporate Organisations.
• Financial objectives of both profit and not-for-profit organisations -
maximizing shareholders wealth, value for money, providing a
surplus, etc.
• Principles of corporate governance: relationship between the

company, management and other stakeholders. Scope of directors’
85
responsibilities, adequacy of disclosure requirements, creative
accounting, window dressing, e.t.c. Directors’ remuneration and
prerequisites, rewards and sanctions.
• The effect of good and bad corporate governance on the value of the
business via share price
• Developments in the Nigerian Capital Market
• The nature and functions of money and capital markets. Distinctions
between the two markets. Instruments of each of the markets:
nature, characteristics, advantages and disadvantages. Key
participants; individuals, companies, banks, non-bank financial
institutions and Government agencies e.g. Central Bank of Nigeria
(CBN), Nigerian Stock Exchange (NSE), Securities and Exchange
Commission (SEC). Emerging Issues in the Stock Market.
• Ethical Issues in Corporate Financial Strategy
2. CORPORATE STRATEGY, INFORMATION AND FINANCIAL MANAGEMENT (5%)
(i) Corporate strategy

• Goals and Objectives of Corporate Strategy.
• Types and importance of strategy including the relationship
between corporate strategy and financial strategy.
• Strategic planning, and differences between strategic, tactical
and operational planning.
• Development of a corporate plan and its relationship to
budgeting.
• Long-term financial planning.
(ii) Information and financial management

• Application of IT in Financial Management Process
• Financial Modeling Techniques
• Decision Support Systems (DSS)
– Meaning, nature and application
- Applications software and analytical models
3. CAPITAL INVESTMENT DECISIONS (10%)
• Mathematics of finance - time value of money, present value, yields

on investments, loan amortisation, sinking fund etc.
• Capital expenditure planning and control and the identification and
evaluation of investment opportunities including risk and return
relationship
• Techniques of investment appraisal including payback period,
discounted payback period, return on investment, NPV, IRR, PI, Cost-
Benefit-Analysis, Value for money
• Evaluation of capital projects: Capital rationing including application
of Linear programming in Multi-period capital rationing, replacement
and abandonment decisions
• Strategic methodologies of investment appraisal of AMT projects.
Types of AMT projects; relevance and shortcomings of current
appraisal techniques in evaluating AMT projects.
86
• Treatment of inflation, taxation, risk, uncertainty and the effects of
government policies on investment decisions
• Qualitative factors in Capital Investment Decisions
4. FINANCING, CAPITAL STRUCTURE AND DIVIDEND POLICY DECISIONS

(15%)
• Identification and evaluation of various sources of finance: Share

capital, Loan capital, convertibles and warrants, trade credit and
bank finance
• Valuation of Securities
• Leasing: Definition, types of lease - Operating leases, finance lease,
advantages and disadvantages, accounting and tax management of
lease, after tax analysis of lease/buy/borrow and hire purchase
• The concept and measurement of the various costs of capital - equity,
preference shares, debentures and loan stocks
• Optimal capital mix: evaluation and determination of financial
requirements of corporate entities and organisations emphasising the
factors which influence the choice of capital structure: Weighted
Average Cost of Capital (WACC). Weighted net income/net operating
income approach (Modigliani and Miller concept)
• Active and passive dividend policies and factors influencing dividend
policies
• Types of dividends - cash dividend, script dividend and script issues
(stock dividend)
• Legal and procedural aspects of dividend payment in Nigeria
• Relevance and irrelevance theories of dividend policy to the value of
firm.
5. CAPITAL MARKET FINANCING AND RISK MANAGEMENT (10%)
Public issues: methods and procedures for new issues

The cost of new issues
Rights issues: the mechanics of rights issues, subscription price,
theoretical ex-rights price, value of rights, effects of rights issues on
the price of the shares and on share holdings, underwriting
arrangements
Private placing: methods of issue
Public issue of bonds and debentures
Capital market efficiency - forms and tests of efficiency, implications
of the efficiency of the market
The applicability of market efficiency to the Nigerian capital market
and empirical evidence of tests on the market
Portfolio analysis: selection and decision techniques
The market models - Capital Asset Pricing Model (CAPM), Arbitrage
Pricing Model (APM)
Measurement for portfolio performance
Nigerian Capital Market Operations
87
6. WORKING CAPITAL MANAGEMENT (5%)
The components of working capital and the importance of

effective working capital management to corporate survival.
cash: preparation of cash budget and management of
cash surpluses and deficits; cash management models.
debtors: analysis and evaluation of various credit terms, use of cash
discounts and debt collection techniques, debt factoring and invoice
discounting.
creditors: evaluating trade credits and the advantages and
disadvantages
of trading on credit.
stocks: formulation of various stock policies and stock control systems
techniques including inventory models such as Economic Order Quantity
(EOQ), and Just-In-Time (JIT). Implications of inventory control for the
financial manager.
7. CORPORATE RE-STRUCTURING, MERGERS AND ACQUISITIONS (10%)
The need and purpose of restructuring

Types of restructuring, take-overs, leveraged buy-outs, distress
restructuring
Valuation of business units and entities
Features of a merger, estimating the economic gains and costs of
mergers
Basic forms of acquisitions
Motives for mergers and acquisitions
The mechanics and tactics of a merger
Evaluating financial performance of merged companies including
reasons for their successes and failures
The impact and effects of government regulations on mergers and
acquisitions
Quantitative factors in mergers and acquisitions
8. FINANCIAL MANAGEMENT OF SMALL AND MEDIUM SCALE ENTERPRISES

(10%)
SME’s and capital Investment appraisal techniques

Justification for the use of popular but incorrect techniques, such as
pay back period, and ARR
The need for SME’s to embrace the use of DCF techniques viz NPV,
IRR, etc.
Determination of financial needs of SME’s, problems of SME’s
financing, accessibility to other sources of finance such as venture
capital, cheaper government fund, government grants and
subvention as well as International funds.
Micro-credit financing.
88
9. INTERNATIONAL FINANCIAL MANAGEMENT (15%)
International financial markets and their associated risks.

Exchange rate determination, identification and management of
exchange rate risk.
Hedging against currency risks - futures and options markets:
Forward contracts, Future contracts, currency options and swaps.
The role of the following financial institutions in financing
international trade: Nigerian Export - Import (NEXIM) Bank, African-
Export-Import Bank (AFREXIM), Bank of Industries (BOI), African
Development Bank (ADB), International Monetary Fund (IMF), World
Bank, International Finance Corporation (IFC), the Paris Club, London
Club, etc.
Government control versus self regulation
International Capital Budgeting and International Financing

D. CONTACT HOURS 120
Adetifa, S. B. 2006, Corporate Finance and Investment Strategy.
Akinsulire, Oye (2008) Financial Management, Ceemol Nigeria Limited,
Nigeria 5th Edition
Akintoye, I.R (2008). Investment Decisions: Concept, Analysis and
Management. Glorious Hope Publishers, Lagos.
Holland John, 1993, International Financial Management; United Kingdom,
Blackwell Publishers. 2nd Ed
ICAN Study Pack, Strategic Financial Management, V/I Publishers, 2006
ICAN Study Pack, Strategic Financial Management, V/I Publishers, 2009.
Kayode, A. J., Financial Management - Students Manual; AJK Limited.
Omolehinwa, Ade., 2002,Workout Corporate Finance
Pinches, G. E. 1984, Essentials of Financial Management, Harper & Row.
Richard A. Brealey & Stewart C. Myers, 1991: Principles of Corporate
Finance, U.S.A., 4th Edition.
Van Horne, J. C., 2002, Fundamentals of Financial Management, Englewood
Cliffs, N. J. Prentice – Hall, 11th Ed.
89
21.4.4. PAPER 15: ADVANCED TAXATION
A. OBJECTIVE
• Appreciate the importance of taxation in personal and corporate financial

planning and decision-making.
• identify and avail clients of the opportunities for minimizing potential tax
liability by making full use of available options.
B. LINKAGES
This paper is linked to papers 1, 2, 3, 5, 10, 11, 12, 13 and 14
SECTION A: (40 Marks) – A number of compulsory multiple choice questions

covering the entire syllabus.
SECTION B: (60 Marks) – Answer the question on Case Study and any other three.
C. CONTENTS
1. TAX PRACTICE AND ADMINISTRATION (20%)
(a) Tax audit and investigation

(b) Explain and advise on the requirements of a Revenue Audit so as to
enable client/employer compliance.
(c) Explain the principles of Stamp Duties and calculate any duty tax
payable having optimised the use of any available relief.
(d) Nature and purpose of revenue enquiry
(e) Revenue Department’s procedures
(f) Ethical issues – implication of confidentiality, conflict of interest and
disclosure of information on tax practice
(g) Interpretation of tax laws using decided cases
(h) Communication with Clients, Tax authorities and other stakeholders
(i) Case presentation before Body of Appeal Commissioners.
90
2. INDIVIDUAL ASSESSMENT, TRUST SETTLEMENTS, WITHHOLDING
TAX, VAT AND ESTATES (10%)
(a) General familiarity with the relevant Laws and Practice, Incomes
chargeable/exempt
(b) Income from Employment
salaries, pensions, charge, annuities, fees, gratuities,
allowances and benefits-in-kind;
allowable and disallowable expenses and related case laws;
assessments and collection of taxes
(c) Sole traders and partnership business
meaning of a trade or profession
adjustment of profits of a trade or profession
Basis periods, Commencement and ceasation rules
change of accounting dates
treatment of business losses – types of reliefs and their
treatment, losses of trade or business at commencement or
ceasation
nature and objectives of capital allowances and reliefs
available
- Computation of capital allowances
(d) Treatment of unearned income
income from rent on property, including contractor-financed
projects
income from savings
dividends and interests
- assessments and payments.
(e) Taxation of non-resident individuals deriving income from Nigeria
(f) International dimension of taxation and tax tariff
• Double Taxation, etc.
(g) VAT
• General principles of VAT
• Vatable goods/services
• Exempt goods/services
• Amount on which tax is chargeable
• VAT rates
• VAT on capital assets
• EU VAT legislation/regulations
• International transactions
(h) Withholding Tax
- Supplies/services subject to Withholding Tax
- Rates
- Offences and penalties
91
3. CAPITAL GAINS TAX (CGT) 10%
(a) Administration of CGT Act Cap CI LFN 2004

Application of computational rules for Capital Gains Tax in the
preparation of CGT returns and advise on appropriate tax planning
measures including the use of available reliefs.
(b) Disposal and acquisition of assets
• hire purchase transactions
• part disposal
• connected persons/artificial transaction
• consideration aspect
• death
• asset lost or destroyed
• bargains comprising two or more transactions
(c) Planning for tax savings and reliefs in capital gains tax
• roll-over relief
• delayed remittances or gains
• double taxation relief
(d) Other matters e.g. partnerships, legatees
(e) Offences and Penalties
4. CORPORATE TAXATION INCLUDING TAXATION OF INCOME, PIONEER

ACTIVITIES AND DOUBLE TAXATION RELIEF (20%)
(a) Computation of tax liabilities of various companies including down

stream operations under CITA 1979 (as amended)
(b) Planning for direct and indirect tax savings
(c) Critical review of tax avoidance schemes
(d) Pioneer legislation
(e) Double taxation treaties and their implications on non-resident
companies
(f) Tax implication of mergers, acquisitions and take-over bids
(g) Concepts and applications of deferred taxation
(h) Tax distortion under inflationary conditions
(h) Specialised businesses including real estate, agriculture,
transportation, telecommunication, insurance, bank, airlines, etc.
5. PETROLEUM PROFITS TAX (PPT) (20%)
(a) Administration of PPT Cap P13 LFN. 2004

(b) Understanding the nature and classification of income
(c) Knowledge of the concept and computation of posted prices
(d) Definition of Terms
(e) Understanding the nature and classification of costs
(f) Ascertainment of adjusted profits and imposition of costs
(g) Allowable and non-allowable deductions
(h) Treatment of losses
(i) Computation of capital allowance
92
(j) Tax offsets, petroleum investment allowance, computation of
chargeable profit, chargeable tax and the concept of additional tax
(k) Computation of Assessable Profits
(l) Payment of tax due
(m) Familiarisation with Memorandum Of Understanding (MOU) as it
applies to petroleum prospecting companies
(n) Offences and Penalties
(o) Incentives available to companies engaged in the utilisation of
associated gas and objectives for the incentives
(p) Understanding the Joint Venture Contracts (JVC) and Production
Sharing Contracts (PSC) as they apply to petroleum operations
6. STAMP DUTY INCLUDING TRANSFERS BETWEEN ASSOCIATED COMPANIES

AND RECONSTRUCTION/AMALGAMATION RELIEF (5%)
7. CASE STUDY (15%)

NOTES
(1) Candidates will be provided with tables of rates and allowances.
(2) Candidates should be conversant with relevant decided cases and
statutory provisions.
(3) Candidates are expected to be conversant with annual budgetary
provisions.
(4) New legislations and budgetary provisions shall become examinable
after 6 months from the date of issue or enactment.
Adesola, S.M., Income Tax Law and Administration in Nigeria, Obafemi Awolowo
University Press.
Agyei, A. K. Capital Gains Tax, Graham Burn.
Ani, A. A., et al., Companies Income Tax and Petroleum Profit Tax in Nigeria, UPL.
ICAN Study Pack, Tax Management and Fiscal Poiicy, V/I Publishers, 2006
ICAN Study Pack, Advanced Taxation, V/I Publishers, 2009
Joint Tax Board, Decided Cases by the Body of Appeal Commissioners.
Oremade, B. T., Petroleum Profits Tax in Nigeria, Evans Brothers, Ibadan.
Uche, R. U., 2002, Petroleum Accounting and Taxation in Nigeria, Alexander Books
Associates, Oakland, California, V/I,
Federal Inland Revenue Service, Annual Budget of Federal Republic of Nigeria
Federal Inland Revenue Service & Establishments (FIRS) Act, 2007
93

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THE INSTITUTE OF CHARTERED

Effective May 2010

FRANCIS OJAIDE, Ph.D, FCA

STUDENTS REGULATIONS AND EXAMINATION SYLLABUS

21 EXAMINATIONS SYLLABUS ……………………………………………. 22

21.3 PROFESSIONAL EXAMINATIONS

21.3 PROFESSIONAL EXAMINATIONS I ….…………………………..……. 55

21.4 PROFESSIONAL EXAMINATION II …………………………………….. 73

2. OBJECTS AND DUTIES

(a) “determining what standards of knowledge and skill are to be attained by

A person shall be enrolled as a Chartered Accountant if:

These approved professional bodies are:

(i) The Institute of Chartered Accountants in England and Wales;

A person is entitled to be registered as a Registered Accountant if he/she satisfies

In the case of a Registered Accountant, the letters “RA” (Registered Accountant).

7. THE PRACTICE OF ACCOUNTANCY IN NIGERIA

A member of the Institute is not allowed to set up a public practice as an

8. ADVERTISEMENT FOR BUSINESS

10. DISTRICT SOCIETIES

(e) Members’ Handbook, which is a compendium of the Institute’s

(f) ICAN Study Packs.

12. TRAINING SCHEMES

(i) DEFINITION OF TRAINING

However, accounting experience acquired before a candidate attains the

(ii) APPROVED WORK OF ACCOUNTING NATURE

An accounting duty is deemed to be approved when such a duty is being

In the Civil Service, however, the supervision by a Chartered Accountant is

(iii) RECOGNISED TRAINING CENTRES

The Institute attaches considerable importance to practical training and

The Institute recognises for this purpose:

(a) Approved service under a practising member of the Institute.

If a candidate wishes to train otherwise than in a Recognised Training

13. PRACTISING LICENCE

The Institute’s Secretariat is located at:

Plot 16, Idowu Taylor Street

(a) Students’ Affairs Department

(b) Liaison offices; or

(c) District Societies.

All enquiries should be directed to the Registrar/Chief Executive.

15. STUDENTSHIP REGISTRATION AND TRAINING

15.1 APPROVED QUALIFICATIONS FOR REGISTRATION

In order to register as a student with the Institute, an applicant must hold a

Approved meanwhile are:

(i) The final examination of the Institute of Chartered Secretaries and

(ii) The final examination of the former Corporation of Secretaries

(iv) The final examination of the Chartered Institute of Bankers of Nigeria

(v) The final examination of the Chartered Institute of Stockbrokers

(vi) The final examination of the Chartered Institute of Taxation of Nigeria

(vi) The final examination of the Association of Accounting Technicians,

(vii) The final examination of the Association of National Accountants of

(viii) Executive Management Accountancy (Federal Treasury Training

(ix) The final examination of Accounting Technicians Scheme, West Africa

Application for registration as a student must be made on-line which requires an

The annual subscription for successful applicants becomes payable immediately

15.3 CONDITIONS TO BE SATISFIED

(a) He/she is not less than 18 years of age;

16.1 STRUCTURE OF THE SYLLABUS

OLD SYLLABUS NEW SYLLABUS

PROFESSIONAL EXAMINATION I PROFESSIONAL EXAMINATION I

Accounting for Joint Ventures;

Akeju J.B. 2003, Financial Accounting Volume 1 – JBA Limited Lagos.