CPA Syllabus 2016 PDF
CPA Syllabus 2016 PDF
CPA Syllabus 2016 PDF
UGANDA
EXAMINATION SYLLABUS
2016
1
CPA (U) EXAMINATIONS SYLLABUS STRUCTURE
LEVEL IV: Integratio
Test of Professional n of
Expertise Knowledg
e
Paper 18
2
CONTENTS
Page
Background Information 4
LEVEL 1
Financial Accounting – Paper 1 9
Quantitative Techniques – Paper 2 20
Economic Environment– Paper 3 28
Business Law– Paper 4 45
Business Management & Information Systems– Paper 5 53
Taxation– Paper 6 66
Cost & Management Accounting – Paper 7 74
LEVEL 2
Financial Reporting – Paper 8 83
Advanced Taxation - Paper 9 96
Financial Management - Paper 10 103
Management Decision and Control – Paper 11 108
Auditing and Professional Ethics and Values - Paper 12 117
LEVEL 3
Advanced Financial Reporting – Paper 13 130
Public Sector Accounting & Reporting – Paper 14 144
Business Policy and Strategy – Paper 15 160
Advanced Financial Management – Paper 16 169
Auditing and Assurance Services– Paper 17 176
LEVEL 4
Integration of Knowledge – Paper 18 188
3
1.0 BACKGROUND INFORMATION
1.2 Vision
1.3 Mission
To develop, promote and regulate the accountancy profession in Uganda, in
public interest.
4
2.0 CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA [CPA (U)] COURSE
3.1 Degree
3.2 Certificates/Diplomas
3.3 A-Level
Uganda Advanced Certificate of Education (UACE) with at least two principal
passes or the equivalent plus a Uganda Certificate of Education (UCE) with at
least 5 credits, including English Language and Mathematics or the equivalent.
5
4.0 REGISTRATION FOR STUDENTSHIP
Registration of students is continuous throughout the year.
Applications must be made on the appropriate forms issued by the Institute
accompanied with the prescribed fees and the required documents.
Note:
1. The Institute reserves the right not to register and/or de-register any
student who in its opinion is not a fit and proper person for the
accountancy profession in Uganda.
2. It is advisable for any person who wishes to sit for the course in any
examination diet to register for studentship at least 2 months before the
intended examinations diet.
Note: The Institute reserves the right to vary or amend the rules and
regulations.
5.1 A candidate may sit for a minimum of one and a maximum of all the
subjects at any Level at any one sitting.
5.2 A candidate must complete a lower level of the syllabus before proceeding
on to the next level.
5.3 An exception to Rule 5.2 is where a candidate has one or two subjects at
either level one or level two. In such a case, the candidate may sit for that
one or the two subjects with some other subjects at next level.
5.4 No candidate will be allowed to combine the following Level 1 subjects
with those of Level 2 in an examinations’ diet:
6
6.0 COURSE TIME LIMITS
6.1 The course must be completed in 10 years from the date of registration.
6.2 A student will be discontinued when the completion period expires. A student
discontinued for this reason, may apply for re-registration as a new student.
8.0 EXAMINATIONS
8.1 Examinations are held thrice a year i.e. June, August and November/December.
8.2 Registration for examinations must be done on online on the Institute’s website.
Exceptions will seek guidance from the Institute.
8.3 Examinations entry must be preceded by payment of the prescribed
examinations fees and evidence should be availed to the Institute to confirm the
registration.
8.4 The closing dates for the receipt of the examinations entries are as follows:
Diet Normal registration Late registration
June 30 March 15 April
August 31 July Not applicable
November 30 September 15 October
8.5 Withdrawal of examinations entries will not be accepted after 15 April and 15
October for the June and November/ December examinations respectively.
Monies paid for examinations purposes can only be used for subsequent
examinations diets or for settling any outstanding dues.
8.6 Examinations Centres
The examinations centres are as follows:
1 Arua 4 Gulu
2 Fort Portal 5 Mbale
3 Kampala 6 Mbarara
Note: The August examinations are conducted at the Kampala centre any
change to this policy will be communicated as soon as it is made.
9.0 METHODS OF STUDY
7
There are four distinct methods of study:
(a) A full-time study at a training institution.
(b) Part-time study (i.e. evening or week-end classes) at a Training
Institution.
(c) Private study.
(d) Correspondence by a training institution.
It is up to the student to choose the appropriate method of study. However,
students are encouraged to have sufficient preparation for examinations.
10.0 TEACHING INSTITUTIONS
13.1 ICPAU is not engaged in the provision of tuition. This function is carried
out by various training institutions.
13.2 The Institute will advise the students on recognised training institutions /
centres from time to time.
11.0 PASS MARK
The pass mark for each subject is 50%.
8
FINANCIAL ACCOUNTING PAPER 1
SYLLABUS CHART
OVERALL AIM
LEARNING OUTCOMES
9
LEVEL OF ASSESSMENT
The examination will test knowledge, skill and comprehension of the principles of
accounting relating to double entry bookkeeping and preparation of financial statements
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of 20 compulsory multiple-choice questions of 20 marks. Section B will
comprise of five questions of 20 marks each, of which the candidate will be required to
attempt any four.
DETAILED SYLLABUS
A INTRODUCTION
1. Introduction to accounting:
(a) Meaning:
(i) financial accounting
(ii) bookkeeping
(iii) cost accounting
(iv) management accounting
(b) (i) Financial accounting versus bookkeeping
(ii) Cost accounting versus management accounting
2. Forms of business entity
(a) Sole proprietorships:
(i) Meaning
(ii) Characteristics
(iii) Benefits and limitations
(b) Partnerships:
(i) Meaning
(ii) Characteristics
(iii) Benefits and limitations
(c) Limited liability companies:
(i) Meaning
(ii) Characteristics and forms
(iii) Benefits and limitations;
(iv) Partnership versus Limited Liability Company
(d) Public and private limited liability companies:
(i) Meaning
(ii) Public versus private limited liability companies
(iii) Advantages and disadvantages
10
3. The Accountant
(a) Meaning of:
(i) An accountant per the Accountants Act, 2013
(ii) Professional accountant per International Federation of
Accountants (IFAC)
(b) Role of an accountant in sustainable organisational success, and provision
of assurance services
(c) Drivers of sustainable organisational success
(d) Fundamental ethical principles for professional accountants
11
4. The Companies Act
(a) Accounting and reporting requirements.
(b) Impact of the Companies Act on financial accounting and reporting.
12
(e) Ledgers:
(i) Types
(ii) Purpose
(iii) Format of a ledger and steps in ledger posting
(iv) Recording transactions from journals to ledger accounts
(v) Balancing and closing ledger accounts
(vi) Meaning of the balance of each type of account
(f) Trial balance:
(i) Meaning
(ii) Purpose
(iii) Preparation of a trial balance
(g) Preparation of bank reconciliation statement:
(i) Nature and purpose of a bank reconciliation statement
(ii) Bank statement balance versus the cash book balance
(iii) Meaning of: cheque crossing, cheque endorsement, cheque
clearing and pay-in slips
(iv) Types of bank accounts
(v) Preparation of an adjusted cash book and bank reconciliation
statement
(vii) Effect of bank overdraft on the reconciliation process
E INVENTORIES (IAS 2)
1. Inventories:
(a) Definition of key terms
(b) Accounting treatment for inventory and carriage costs:
(i) Measurement of inventories: cost of inventories (purchase,
conversion and other costs), cost of inventories of a service
provider
(ii) Cost formulas: types and computation of inventory values; net
realisable value
(iii) Application of the prudence convention to valuation of inventories
(iv) Merits and demerits of continuous and period end records
(c) Methods of inventory valuation and their impact on profits and assets
(d) Factors that affect the choice of method adopted
(e) Disclosures in respect of inventories in the financial statements
14
2. Preparation of stores ledger account using the cost formulas permitted by IAS 2
15
(vii) Account for: dividends; loan interest; reserves; retained earnings,
share premium, corporation tax
(viii) Capital versus revenue reserves; uses
(ix) Preparation of financial statements of limited liability company:
statement of profit or loss and other comprehensive income,
statement of financial position, statement of cash flows and
statement of changes in equity
2. Preparation of financial statements for manufacturing concerns:
(a) Manufacturing account:
(i) Identification of manufacturing costs (direct and indirect)
(ii) Classification of costs; direct production costs and factory
overheads, fixed and variable costs, prime costs and total factory
costs
(iii) Categories of inventory
(iv) Purpose of preparing a manufacturing account; preparation of a
manufacturing account
(v) Account for factory costs with and without manufacturing profit
(b) Statement of profit or loss and other comprehensive income (SPLC), and
statement of financial position
(i) Link between the manufacturing account and SPLC
(ii) Classification and apportioning expenses
(iii) Determination of unrealized profits
(iv) Manufacturing profit versus trading profit; inventory of
manufacturing concerns versus trading entities
(v) Preparation of a statement of profit or loss and other comprehensive
income, and a statement of financial position
1. Definition of errors
2. Types of errors:
(i) Revealed by a trial balance
(ii) Not revealed by the trial balance
3. Suspense account; uses and preparation
4. Correction of errors
5. Preparation of a corrected:
(i) Trial balance
(ii) Statement of corrected net profit or loss
(iii) Statement of corrected financial position
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H PREPARATION OF FINANCIAL STATEMENTS FROM INCOMPLETE
RECORDS
1. Incomplete records:
(a) Meaning
(b) Reasons for existence of incomplete records and their disadvantages
(c) Preparation of a statement of affairs; uses
(d) Deriving missing figures
2. Control accounts:
(a) Meaning and purpose
(b) Contra entries in control accounts and the source of information for
control accounts
(c) Preparation of:
(i) Sales ledger control account
(ii) Purchases ledger control account
3. Deriving of figures for profit where only the increase in capital and details of
drawings are known
4. Definition, computation and application of mark-up and margin
5. Preparation of financial statements from incomplete records
17
9. Accumulated fund:
(a) Definition of accumulated fund
(b) Determination of an accumulated fund
(c) Effect of surplus or deficit on accumulated fund
10. Preparation of:
(a) Statement of profit or loss and other comprehensive income and
(b) Statement of financial position of a non-trading organisation.
11. Financial statements of a trading entity versus those of a non-trading
organisation.
J ETHICS
K ENTREPRENEURSHIP
NATURE AND SCOPE OF ENTREPRENEURSHIP
1 Meaning of entrepreneurship and entrepreneur
2 Evolution of entrepreneurship in Uganda and in international context
3 Factors that determine the emerging of entrepreneurs
4 Entrepreneurial types
5 Characteristics of entrepreneurs
6 Challenges to entrepreneurs; solutions to those challenges
8 Entrepreneurial decision process
9 Risks taking
(a) Types of risks in business
(b) Risk identification
(c) Risk assessment
(d) Reward to entrepreneurship
10 Role of entrepreneurship in economic development of Uganda
REFERENCES
1. Wood Frank & Alan Sangster (2011), Business Accounting, Prentice Hall, Great
Britain, 12th Edition.
2. Wood Frank & Sheila Robinson (2009), Book keeping and Accounts, Financial
Times Management, Prentice Hall Great Britain, 7th Edition
3. Wood Frank (2008), Business Accounting 1, Financial Times Management,
Prentice Hall Great Britain, 11th Edition.
4. Allen K.R Mayer C. Earl (1994), Entrepreneurship and Small Business
Management, Mc Graw Hill Glencoe, 1st Edition.
5. Grupta, Srinivasan (1999), Entrepreneurial Development, Sultan Chand and Sons
Publishers. 2nd Edition.
6. Hisrick, R.D and M.Peters (2002), Entrepreneurship, African Edition New Dehli,
Tata Mc Graw Hill. 5th Edition.
18
7. International Accounting Standards Board, International Financial Reporting
Standards, IFRS Foundation.
8. Government of Uganda (2012), The Companies Act, Uganda Printing &
Publishing Company.
19
QUANTITATIVE TECHNIQUES - PAPER 2
SYLLABUS CHART
OVERALL AIM
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
EXAMINATIONS STRUCTURE
There will be a three hour examination comprising of six questions of 20 marks each, of
which the candidate will be required to attempt any five
20
DETAILED SYLLABUS
A INTRODUCTION
1. Meaning of statistics
(a) Functions and limitations of statistics
(b) Types of statistics: descriptive and inference statistics
1. Statistical data
(a) Primary and secondary
(i) Sample and population
(ii) Discrete and continuous
(iii) Quantitative and qualitative
(iv) Variable and attribute
(b) Sources of data
(c) Methods of data collection: interview, questionnaire, direct observation,
census and sample survey
(d) Merits and demerits of each method of data collection
(e) Response errors
(f) Sample frame
(g) Sampling techniques: random sampling (simple random and stratified),
quasi random sampling (systematic and multistage sampling), non-
random sampling (cluster and quota sampling)
(h) Advantages and disadvantages of each technique of sampling
(i) Methods of data presentation:
(i) Tables (row and column, two way, frequency and percentage
distribution tables)
(ii) Basic principles of table design
(iii) Interpretation of data presented in each type of table
(iv) Limitations of each type of table
(v) Pictograms, charts (simple and compound bar charts, and pie
charts)
(vi) Methods of construction of each type of chart; type of data suitable
for each type of chart; limitations of each type of chart
(vii) Graphs (line graph, histogram, frequency polygon and curves,
including o-give, Lorenz and Z charts)
(viii) Basic principles of drawing each type of graph; interpretation and
limitations of graphs
21
2. Measures of location / central tendency
(a) Measures of averages: arithmetic mean, weighted mean, mode, median,
harmonic and geometric means
(b) Characteristics, merits and demerits of each type of average
(c) Computation of the mean using actual values and /or working mean
(d) Determination of the mode and median using both computational and
graphical methods
(e) Interpretation of calculated values of each measure
(f) Computation of weighted mean, harmonic mean and geometric mean
(g) Relationship between mean, mode and median
3. Measures of dispersion
(a) Meaning of dispersion and variation
(b) Measures of dispersion: range, quartile deviation (interquartile range),
semi-quartile deviation (semi-interquartile range), decile and percentile
range, mean deviation, quartile coefficient of dispersion, standard
deviation and variance
(c) Characteristics, merits and demerits of each measure of dispersion
(d) Determination of quartile, decile and percentile by computation and
graphically
(e) Computation of quartile coefficient of dispersion
(f) Computation of mean deviation, standard deviation and variance using the
working mean method
(g) Properties of standard deviation and coefficient of variation
(h) Interpretation of calculated values of each measure
4. Measures of skewness
(a) Positive, symmetric and negative skewness
(b) Relationship among mean, mode and median in a skewed distribution:
3 (mean – median) = (mean – mode)
(c) Computation of measures of skewness using Karl Pearson’s and Bowley’s
formulae
(d) Graphical illustration of the concept of skewness and kurtosis
(e) Comparison of skewness with measures of central tendency and
dispersion
(f) Interpretation of skewness and degree of skewness
22
C PROBABILITY AND DISTRIBUTIONS
1. Probability theory
(a) Basic concepts of probability: event, outcome, sample, sample space and
equiprobable
(b) Classical definition of probability
(c) Properties of probability theory: (probability limits, total probability and
complimentary probability); types of events (independent, dependent, and
mutually exclusive events)
(d) Rules used in probability theory that is addition and multiplication
(e) Conditional probabilities (prior and posterior, including use of probability
trees and Bayes’ theorem) as methods of computation
(f) Probability frequency distribution and the computation of expected values
(expectation)
3. Probability distribution
(a) The concept of probability distribution
(b) Normal distribution – properties and standardisation
(c) Computation of probabilities using normal distribution tables
(d) Binomial distribution probability properties and use of binomial formula
(e) Computation of the mean, variance and standard deviation of a binomial
distribution
(f) Use of binomial distribution tables to find probabilities
(g) Approximating a binomial distribution to a normal distribution
(h) Properties and computation of probabilities using poisson distribution
1. Estimation
(a) Definition of concepts: estimation, estimator (point estimator and interval
estimator), standard error of the mean, and population and sample means
(b) Confidence limits and intervals
(c) Estimation of the population mean from a large sample using normal
distribution
(d) Estimation of the mean from a small sample using Student’s t distribution
(e) Use of contingency tables for chi-square distribution
(f) Estimation of the population proportion from a large sample
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2. Hypothesis and significance tests
(a) Definition of basic concepts used in hypothesis testing: null (Ho) and the
alternative (Ha) hypotheses, errors in hypothesis testing (type (I) and
type (II) errors), critical (acceptance and rejection) regions, and level of
significance
(b) Methods of testing (normal Z score, Student’s t and chi-square)
(c) Reading values from tables (one tailed and two tailed)
(d) Computation of the statistic and determination of the level of significance
at a particular percentage
(e) Testing of population mean and population proportion
(f) Testing goodness of fit, use of contingency tables, and computation of
expected values for chi-square test
3. Control charts
(a) Definition of the concept ‘control chart’
(b) Advantages and disadvantages of control charts
(c) Drawing control charts
(d) Interpretation and making conclusions from control charts
E INDEX NUMBERS
1. Correlation
(a) Definition and importance of correlation analysis
(b) Types of correlation: linear or non-linear, positive, negative, zero and no
correlation
(c) Scatter diagrams
(d) Methods of calculating coefficient of correlation: product moment (Karl
Pearson’s) and rank correlation (Spearman’s formula).
(e) Interpretation of correlation co-efficient
(f) Merits and demerits of each method
(g) Link between correlation and causation
24
2. Regression
(a) Definition of terms: regression, regression equation, regression
coefficients
(b) Distinction between correlation and regression
(c) Uses of regression line
(d) Definition of dependent and independent variables
(e) Regression equation: y on x and x on y
(f) Calculation of regression equation using least squares method
(g) Interpretation of regression line and prediction of other values using the
line
1. Time series
(a) Definition of terms: forecasting, time series
(b) Examples of time series and their uses / importance
(c) Components of time series: secular trend, seasonal variation, cyclic
variation and irregular variation
(d) Seasonal adjustment and deflating time series
3. Forecasting
(a) Steps involved in forecasting
(b) Methods of forecasting: quantitative and qualitative, regression analysis
and deseasonalisation method, exponential smoothing, interpolation and
extrapolation and their interpretation
(c) Construction and uses of the Z chart
1. Algebra
(a) Linear, quadratic and simultaneous equations in 2 or 3 variables
(b) Methods of solving quadratic equations by factorisation, completing the
square and use of the quadratic formula
(c) Methods of solving simultaneous equations by elimination, substitution
and matrix methods
(d) Formulating equations involving quadratic and simultaneous equations in
2 variables or 3 variables
25
2. Functions and graphs
(a) Explicit functions in one variable of polynomial nature up to the third
degree (i.e. f(x) = a + bx + cx2+ dx3 +……….)
(b) Graphical representation of functions
3. Calculus
(a) Geometric interpretation of differentiation
dy
(b) Basic rule of differentiation: y = xn , = nx n-1
dx
(c) Differentiation methods: sum, difference, chain rule (substitution), product
and quotient rule of the functions (including differentiation of fractional
and negative indices)
(d) Finding a second derivative
(e) Application of differentiation (or derivatives) in determining maxima and
minima values of functions
(f) Definition of terms: cost and marginal cost, revenue and marginal
revenue, and profit functions
(g) Application of differentiation in maximization and minimization of revenue,
cost and profit functions in production functions including determination of
their values at any given level
I DECISION THEORY
J LINEAR PROGRAMMING
Note:
(i) This excludes non- linear programming, transportation, assignment and non-
linear dynamic programming.
(ii) Basic knowledge of solving simple linear inequalities and interpretation of matrix
representation is assumed.
K NETWORK ANALYSIS
1. Definition of terms: network, activity, event, dummy variable, critical path, float,
cost slopes, dangler and lead time
2. Drawing of networks and Gantt charts and their interpretation
3. Advantages and limitations of network analysis
4. Determination of earliest start time (EST), latest start time (LST), and total cost
5. Techniques of network analysis: PERT (program evaluation and review
technique) and CPM (critical path method)
6. Crashing of projects, cost analysis
7. Resource and cost scheduling
8. Use of computers in network analysis
REFERENCES
1. Andre Francis (2008), Business Mathematics and Statistics, South Western and
Cengage Learning, 6th Edition.
27
ECONOMIC ENVIRONMENT - PAPER 3
OVERALL AIM
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of 20 compulsory multiple-choice questions of 20 marks. Section B will
comprise of five questions of 20 marks each, of which the candidate will be required to
attempt four
DETAILED SYLLABUS
A INTRODUCTION
1. Definitions:
(a) According to the classical economics (Adam Smith, David Ricardo) and
neoclassical economics (Alfred Marshal and Lord Robbins)
(b) Comparison of definitions to come out with the most appropriate
2. Characteristics of: wealth, human wants and needs; resources, goods and
services
3. Nature and scope:
(a) Micro versus macroeconomics
(b) Normative versus positive economics
(c) Economics as a science versus economics as an art
(d) Economic theory versus applied economics
4. Concepts of scarcity, choice and opportunity cost:
28
(a) Meaning of scarcity, choice and opportunity cost
(b) Relationship between scarcity, choice and opportunity cost
(c) Opportunity cost concept in decision making
(d) Production possibility frontier (PPF)/ transformation curve
(i) Assumptions on which the production possibility frontier curve is
drawn
(ii) Uses of the PPF concept; why the PPF curve may shift outwards
and inwards
5. Alternative economic systems:
(a) The fundamental economic questions (what, when, how, where, how
much)
(b) Types of economic systems, advantages and disadvantages of each
system
(c) Role of government in each economic system
6. Classification of goods:
(a) Free versus economic
(b) Producer versus capital
(c) Intermediate versus final/ consumer
(d) Private versus public
(e) Giffen versus inferior
(f) Luxury versus necessity
(g) Complementary versus substitute
(h) Merit versus demerit
B PRICE THEORY
29
(h) The utility theory:
(i) Definition of utility; marginal utility
(ii) Relationship between marginal utility, total utility and demand
(iii) Statement, assumptions and limitations of the law of diminishing
marginal utility
(i) Elasticity of demand:
(i) Meaning of elasticity of demand; price elasticity of demand; income
elasticity of demand; cross elasticity of demand
(ii) Determinants of elasticity of demand
(iii) Levels/ degrees of price elasticity of demand: inelastic, elastic,
unitary, perfectly elastic and perfectly inelastic
(iv) Determination of elasticity of demand; interpretation of values
obtained
(v) Uses of elasticity of demand to the consumer, producer and
government
2. The concept of supply:
(a) Definition of supply, quantity supplied, quantity produced/ stock of goods
(b) Determinants of quantity supplied; supply of a commodity
(c) Supply schedule and conventional supply curve
(d) The law of supply; why the supply curve slopes upward from left to right
(e) Regressive supply/abnormal/ exceptional supply curve
(f) Types of supply
(g) Causes of change in supply and change in quantity supplied
(h) Elasticity of supply:
(i) Definition of elasticity of supply; cross elasticity of supply
(ii) Determinants and degrees of price elasticity of supply
(iii) Determination of elasticity of supply; interpretation of values
obtained
3. Determination of prices:
(a) Definition of price
(b) Types of prices:
(i) Market price
(ii) Equilibrium price
(iii) Normal/ long-run equilibrium price
(iv) Ideal price
(v) Reserve price
(c) Ways of determining prices in an economy:
(i) Demand and supply
(ii) Bargaining/ haggling
(iii) Bidding and auctioning
(iv) Signing treaties
(v) Resale price maintenance
(vi) Price leadership
(vii) Offers at fixed prices for example monopoly and oligopoly; price
legislation
4. Price mechanism and resource allocation:
30
(a) Definition of price mechanism
(b) Assumptions
(c) Role, advantages, disadvantages of price mechanism
(d) Ways of minimising the defects of the price mechanism
5. Price theory:
(a) Application by consumers, producers and government to make economic
decisions
(b) Determination of the prices of factors of production
1. Introduction:
(a) Economic theory on pricing
(b) Determination of optimal selling price using differential calculus
(c) Market structures
(d) The role of cost information in pricing decisions
2. A price setting firm:
(a) Short-run pricing decisions
(b) Long-run pricing decisions
3. A price taking firm:
(a) Short-run pricing decisions
(b) Long-run pricing decisions
D PRODUCTION THEORY
1. Production:
(a) Meaning and purpose of production:
(b) Direct versus indirect production; subsistence versus commercial
production
(c) Stages of production
(d) Importance of production
2. Factors of production and their importance:
(a) Factors of production; reward for each factor
(b) Importance of factors of production
3. Mobility of factors of production:
(a) Meaning of mobility of a factor of production in relation to the different
factors of production
(b) Occupational versus geographical mobility of factors
(c) Mobility versus immobility of factors
(d) Limitations to mobility/ causes of immobility of factors of production
(e) Ways of improving mobility of factors of production
4. Specialisation:
(a) Definition
(b) Specialisation versus division of labour
(c) Merits and demerits of specialisation/ division of labour
31
5. Theory of the firm:
(a) Firm versus industry
(b) Objectives and decisions of a firm
(c) Location and localisation of industry
(d) Factors that influence the location of industry
(e) Advantages and disadvantages of localisation of industry
(f) Government influence on the location of industry
6. The Law of diminishing returns:
(a) Statement and assumptions of the law of diminishing returns
(c) Limitations of the law of diminishing returns
7. The concept of output:
(a) Total product
(b) Average product
(c) Marginal product
8. Costs of production:
(a) Types
(b) Explicit versus implicit costs
(c) Determination of costs of production
(d) Reasons why the average cost curve is U-shaped in the short-run and
long-run
(e) Breakeven point versus shutdown point
(f) Reasons why a firm may continue producing even when it might be
incurring losses
9. Economies and diseconomies of scale:
(a) Economies versus diseconomies of scale
(b) Internal and external economies of scale
(c) Causes of diseconomies of scale
(d) Optimum size/ output of a firm
10. Existence of small firms:
(a) Factors that determine the size of a firm
(b) Advantages of small-scale firms
(c) Existence of small firms despite the advantages of large-scale production
(d) Reasons why small firms co-exist with large firms
11. Concept of revenue:
(a) Forms of revenue:
(i) Total revenue
(ii) Average revenue
(iii) Marginal revenue
(b) Concepts of profit:
(i) Normal profit
(ii) Supernormal profit
(iii) Negative profits or losses
(iv) Functions of profit in an economy
32
12. Market structures:
(a) Definition of ‘market’ and ‘market structure’
(b) Criteria used to classify market structures
(c) Types, characteristics, advantages, disadvantages and examples of market
structures
(d) Maximisation of profits; how output, price and profits are determined in
each type of market structure both in the short-run and long-run
(e) Advantages and disadvantages of each type of market structure
E NATIONAL INCOME
33
7. Determination of equilibrium in an economy:
(a) Ways of determining equilibrium in an economy:
(i) Where aggregate demand = aggregate supply
(ii) Where injections = withdrawals
(b) Components of aggregate demand
(c) Injections versus withdrawals as used in national income
(d) Injections versus withdrawals in a closed and an open economy
(e) Equilibrium in an economy
8. Disequilibrium in an economy:
(a) Definition of disequilibrium
(b) Forms of disequilibrium
(b) Deflationary gap versus inflationary gap
(c) Measures of closing deflationary and inflationary gaps
9. Multipliers and accelerators:
(a) Multiplier versus accelerator
(b) Determination of multiplier and accelerator
(c) Types of the multiplier:
(i) Consumption
(ii) Investment
(iii) Government
(iv) Export
(v) Import
(d) Definition and computation of:
(i) Average propensity to consume
(ii) Average propensity to save
(iii) Marginal propensity to consume
(iv) Marginal propensity to save
10. Savings, consumption and investment:
(a) Definitions
(b) Factors which determine savings, consumption and investment
expenditure
(c) Limitations of savings, consumption and investment in an economy
1. Money
(a) Definition
(b) Functions and role of money in an economy
(c) Evolution of money
(d) Types and qualities of money
(e) Definition of ‘demand for money’, ‘supply of money’
(f) Determinants of the demand for and supply of money
(g) Definition of ‘liquidity preference’
(h) Determinants of liquidity preference
(i) Definition of interest rates
(j) Reasons why interest is paid; determinants of interest rates
34
(k) Capital markets (including the institutions in the capital markets like stock
exchange, insurance companies, merchant banks)
(l) Stock exchange:
(i) Definition
(ii) Functions
(iii) Securities traded on a stock exchange; membership of a stock
exchange
(iv) Problems encountered by stock exchanges and capital markets in
developing countries
2. Value of money:
(a) Definition
(b) Factors that influence the value of money
3. Cost of living:
(a) Cost of living versus standard of living
(b) Relationship between cost of living and standard of living
(c) Measurement of changes in the cost of living
(d) Cost of living index and price index; determination of simple price index,
weighted index and average weighted price index based on given data
(e) Price indices; uses and problems encountered in the compilation of price
indices
4. Quantity theory of money:
(a) Statement and assumptions
(b) Mathematical treatment of the theory (Fisher’s equation)
(c) Applicability of the quantity theory of money
5. Commercial banking:
(a) Commercial banks:
(i) Definition
(ii) Assets and liabilities of commercial banks
(iii) Functions and role of commercial banks (indigenous and foreign)
(iv) Operational problems met by commercial banks
(v) Objectives of commercial banking (liquidity, profitability, security)
(b) Credit creation:
(i) Definition
(ii) Assumptions, process and factors that influence credit creation
(iii) Factors that limit credit creation
(c) Role of non-bank financial intermediaries in developing countries
6. Central banking:
(a) Functions of a central bank
(b) Monetary policy and its objectives
(c) Application of the tools of monetary policy
(d) Limitations to the smooth operation of monetary policy in Uganda
35
G INFLATION
1. Definition
2. Types and causes of the different types of inflation:
(a) Hyper/ runaway/ galloping
(b) Mild/ creeping/ gradual
(c) Structural
(d) Imported
(e) Demand-pull
(f) Cost-push
(g) Scarcity
(h) Speculative
(i) Monetary
(j) Stagflation
(k) Headline
(l) Underlying
3. Effects (positive and negative) of inflation in Uganda
4. Policies used to control inflation in Uganda
5. The concept of deflation
H LABOUR ECONOMICS
36
(l) Assumptions, reasons and limitations of each of the following theories of
wage payments:
(i) Market theory
(ii) Government theory
(iii) Subsistence theory
(iv) Marginal productivity theory
(v) Bargaining theory
2. Trade unions:
(a) Definition
(b) Objectives of trade unions
(c) Methods used by trade unions to advance their objectives
(d) Factors that determine the strength of a trade union
(e) Reasons or justification by trade unions to demand for high wages
(f) Problems facing trade unions in developing countries
(g) Advantages and disadvantages of trade unions
(h) Wage differentials:
(i) Definition
(ii) Causes
(iii) Types or forms
(iv) Ways of reducing wage differentials
I UNEMPLOYMENT
1. Definition
2. Types of unemployment:
(a) Voluntary
(b) Involuntary
(c) Urban
(d) Structural
(e) Technological
(f) Seasonal
(g) Residual
(h) Casual
(i) Disguised
(j) Cyclical/ mass/ Keynesian
(k) Underemployment
3. Causes and solutions of each type of unemployment
4. Unemployment in an economy:
(i) Solutions to the problem of unemployment
(ii) Effects of unemployment on the development of an economy
37
J INTERNATIONAL TRADE
38
6. Foreign exchange:
(a) Definition of foreign exchange rate, foreign exchange, foreign exchange
reserves
(b) Sources of foreign exchange to a country and reasons for the demand for
foreign exchange
(c) Uganda’s foreign exchange shortages and the steps that can be taken to
alleviate the shortages
(d) Foreign exchange rate:
(i) Definition and types
(ii) Advantages and disadvantages
(iii) Factors that determine the exchange rate in the money market
7. Economic integration:
(a) Definition
(b) Factors that give rise to economic integration
(c) Features of: preferential trade area, free trade area, customs union,
common market, economic union, complete integration
(d) Conditions for the success of economic integration
(e) Benefits and shortcomings of economic integration
8. Economic integration in developing countries:
(a) Aims of the East African Community (EAC) and Common Market for
Eastern and Southern Africa (COMESA)
(b) Achievements and failures of the EAC and COMESA
9. Institutions and agreements in international trade:
(a) Aims of: General Agreement on Tariffs and Trade (GATT); International
Bank for Reconstruction and Development (IBRD); International Monetary
Fund (IMF); World Trade Organisation (WTO); United Nations Conference
on Trade and Development (UNCTAD)
(b) Achievements and failures of the above institutions
10. Foreign aid:
(a) Definition of ‘foreign aid’
(b) Forms of foreign aid
(c) Importance of foreign aid in development
(d) Problems and demerits of foreign aid
(e) Ways of reducing the problems and demerits of foreign aid
1. Introduction:
(a) Definition of economic growth; economic development
(b) Economic growth versus economic development
(c) Objectives of economic development in Uganda
(d) Costs and benefits of economic growth
(e) Barriers to economic growth
(f) Indicators of economic development; reasons why economic growth does
not always lead to economic development
2. Rostow’s theory of economic growth:
39
(a) Stages
(b) Characteristics of Rostow’s stages of economic growth
3. Theories of economic growth and development:
(a) Definition of big push; critical minimum effort
(b) Balanced growth theory:
(i) Meaning
(ii) Merits and demerits
(c) Unbalanced growth theory
(i) Meaning
(ii) Advantages, disadvantages, limitations of the balanced growth
theory
4. Characteristics/ indicators of underdeveloped economies; factors responsible for
underdevelopment
5. Development strategy:
(a) Definition, merits and demerits of:
(i) Agricultural development
(ii) Industrial development: small-scale and large-scale industries,
specialisation
(iii) Economic diversification
(b) Advantages, disadvantages and limitations of:
(i) Export promotion
(ii) Import substitution
(iii) Capital intensive techniques of production
(iv) Labour intensive techniques
(c) Intermediate technology:
(i) Appropriate versus intermediate technology
(ii) Challenges facing the development of appropriate technology in
less developed countries
(d) Technological transfer and technological development:
(i) Technological transfer versus technological development
(ii) Factors that hinder technological transfer and technological
development in less developed countries
41
6. Incidence of tax:
(a) Definition
(b) Incidence of taxes under: unitary elasticity, elastic, inelastic, perfectly
elastic and perfectly inelastic demand and supply
7. Canons, principles or characteristics of a good tax system
8. Meaning of taxable capacity: individual, national, governmental
9. Factors that influence the taxable capacity of a country; why Uganda has low
taxable capacity
10. Public Debt:
(a) Definition of: public debt, national debt; public debt versus national debt
(b) Types: internal debt, external debt, short-term debt, long-term debt,
medium-term debt, funded debt, deadweight debt, reproductive debt,
floating debt
(c) Reasons why a country incurs public debt; the burden of public debt in a
developing country
(d) Public debt management:
(i) Meaning
(ii) Objectives of public debt management
(iii) Ways in which public debt management is carried out
11. National budget as an instrument of economic and social policy
(a) Meaning of a national budget
(b) Components of a national budget
(c) Balanced budget, surplus budget and deficit budget
(i) Reasons for making a surplus budget and a deficit budget
(ii) Effects of a surplus budget and a deficit budget
(iii) Ways of financing a deficit budget
(d) Importance of a national budget in national economic development
12. Public finance: definition; role of public finance in development
13. Uganda’s tax structure and the impact of such a structure
14. Characteristics of public expenditure in Uganda; reasons for the need of public
expenditure; effects of government spending on the economy
15. Debt financing and taxation financing’; advantages and disadvantages
42
(c) The structure of the agricultural sector in Uganda:
(i) Effects of such a structure on the economy
(ii) Ways of changing such a structure
(iii) Causes of poor performance of the agricultural sector
(iv) Solutions to the problems of the agricultural sector in Uganda
(d) The structure of the industrial sector in Uganda:
(i) Effects of such a structure on the economy
(ii) Ways of changing such a structure
(iii) Causes of poor performance of the industrial sector
(iv) Solutions to the problems of the industrial sector in Uganda
2. Subsistence and monetary sectors:
(a) Subsistence sector versus monetary sector
(b) Characteristics/ features of the subsistence and monetary sectors
(c) Importance/ merits of a large monetary sector and the disadvantages of a
large subsistence sector
3. Imports and exports:
(a) Imports versus exports
(b) The structure of Uganda’s exports and imports
(c) Effects of such a structure
(d) Ways of improving the import-export structure
4. Ownership of business organisations:
(a) Private sector versus public sector enterprises
(b) Businesses under the private sector (sole proprietorships, partnerships,
joint stock companies) and under the public sector (parastatals and public
corporations)
(c) Features/ characteristics, advantages, disadvantages of the different
business organisations
(d) Advantages and disadvantages of private ownership and public/ state/
government ownership of business enterprises; justification of private
ownership and government ownership of business enterprises
(e) Problems faced by private and public/ state enterprises
5. Privatisation:
(a) Definition
(b) Forms/ ways of privatisation
(c) Need for privatisation
(d) Advantages and disadvantages of privatisation
(e) Problems encountered in the privatisation process
6. Economic dependence:
(a) Definition
(b) Forms/ types of economic dependence (trade dependence, sectoral
dependence, direct economic dependence, external resource dependence)
(c) Effects of economic dependence on the economy
(d) Ways of minimising economic dependence
43
7. Structural adjustment programmes (SAPs):
(a) Meaning
(b) Objectives of SAPs
(c) Implementation of the SAPs in Uganda: privatisation, liberalisation,
retrenchment, agricultural modernisation, export promotion
(d) Advantages and disadvantages of SAPs
REFERENCES
1. Ddumba-Ssentamu (2005), Basic Economics for East Africa: Concepts, Analysis &
Applications, Fountain Publishers, Kampala, Uganda.
2. Hanson J.L. (1997), A Textbook of Economics, Macdonald and Evans publishers,
2nd Edition.
3. M.L. Jhingan (2009), Managerial Economics, Vrinda Publications (P) Ltd, 2nd
Edition.
4. Grant S. J (2000), Stanlake’s Introductory Economics, Pearson Education Limited,
7th Edition.
44
BUSINESS LAW - PAPER 4
OVERALL AIM
To enable the learner acquire knowledge and understanding of the legal framework
governing the business environment in Uganda
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will test knowledge, comprehension and application of law to real life
case scenarios.
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of 20 compulsory multiple-choice questions of 20 marks. Section B will
comprise of five questions of 20 marks each, of which the candidate will be required to
attempt four.
DETAILED SYLLABUS
46
C THE LAW OF AGENCY
1. Trusts:
(a) Definition
(b) Types
2. Parties of a trust
3. Circumstances under which a trust can be created
4. Appointment, discharge, duties and liabilities of trustees:
(a) Requirements for being appointed as a trustee
(b) Circumstances under which a trustee can be discharged
(c) Duties and liabilities of trustees
5. Termination of a trust
E EMPLOYMENT LAW
1. Contract of employment:
(a) Contents of a contract of employment
(b) Contract of service versus contract for services
2. Duties and rights of employees.
3. Obligations of an employer to employees
4. Discrimination:
(a) Types of discrimination
(b) Statutory provisions against discrimination
5. Termination of contract of employment:
(a) Circumstances under which a contract of employment can be terminated
(b) Circumstances under which termination may be unlawful
47
F THE LAW OF PARTNERSHIPS
G COMPANY LAW
1 Definition of company
2. Incorporation and classification of companies:
(a) Classes
(b) Types
(c) Public versus private companies
(d) Procedure of registration
(e) Importance of the certificate of incorporation
3. Commencement of business; requirements before commencement of business
4. Characteristics of a company
5. The veil of incorporation; circumstances under which the veil of incorporation
may be lifted
6. The ultra vires doctrine
1. Promoters:
(a) Definition
(b) Duties of a promoter
(c) Remedies for pre-incorporation acts of promoters
(d) Circumstances under which promoters are remunerated
(e) Rules governing pre-incorporation contracts
2. Memorandum of association:
(a) Importance and contents of a memorandum of association
(b) Requirements for altering a memorandum of association
(c) Effect of alteration of a memorandum of association
3. Articles of association:
(a) Importance and contents of articles of association
(b) Requirements for altering articles of association
(c) Effect of alteration of articles of association
48
I SHARE CAPITAL
49
J DEBENTURES
K MEMBERSHIP
L MEETINGS
DIRECTORS:
1. Appointment:
(a) Process of appointment
(b) Qualification for appointment
2. Publicity requirements; circumstances under which directors are supposed to be
publicised
3. Powers, duties and responsibilities of directors; circumstances under which a
director can be held liable personally
4. Remuneration; circumstances under directors are remunerated
5. Directors’ meetings; roles of directors in their meeting
6. Directors’ interest in shares or debentures; circumstances under which directors
can have interest in shares or debentures
7. Disqualification and removal of directors
50
COMPANY SECRETARY:
1. The Company Secretary; duties and powers
2. Contents of the register of directors and secretaries
O DIVIDENDS
P CORPORATE INSOLVENCY
1. Winding up:
(a) Meaning of the term ‘winding up’
(b) Ways of winding up
(c) Grounds for winding up
(d) Parties who can qualify to petition for winding up
(e) Procedure for winding up
(f) Commencement and completion
(g) Legal consequences of winding up
(h) Priority in the apportionment of proceeds from winding up
51
2. The Liquidator:
(a) Meaning of ‘liquidator’
(b) Appointment and removal
(c) Remuneration
(d) Control over a liquidator
(e) Rights, powers and duties of a liquidator
(f) Ways in which a liquidator may be liable for transactions made during
winding up
ETHICAL ISSUES
REFERENCES
52
BUSINESS MANAGEMENT AND INFORMATION SYSTEMS– PAPER 5
SYLLABUS CHART
OVERALL AIM
To enable the learner develop knowledge and understanding of business and its
environment and the influence this has on the structure and functions of the different
parts of an organisation and also appreciate computer hardware, software and
information systems development both theoretically and practically.
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will assess the learner’s comprehension and application of business
and information systems knowledge and skills.
53
EXAMINATIONS STRUCTURE
Paper 4 (I)
There will be a three hour examination made up of sections A and B. Section A will
comprise of four questions of 20 marks each, of which the candidate will be required to
attempt any three. Section B will comprise of three questions of 20 marks each, of
which the candidate will be required to attempt any two
Paper 4 (II)
There will be a one hour and thirty minutes practical examination of 50 marks
DETAILED SYLLABUS
PART A: MANAGEMENT
1. PESTEL analysis:
(a) Political/ legal environment:
(i) Enforcement of laws and regulations
(ii) Self-regulation
(iii) Creation of economic conditions for business to operate (including
taxation and public spending)
(b) Social environment:
(i) The demographic environment
(ii) Difference and changes in the composition and characteristics of
society in terms of age, sex, marital status, family size, occupation,
income, education, ethnic origin, geographical location
(iii) The values, attitudes and beliefs of society
(c) Technological environment:
(i) Major developments - impact on organisations and external effects
(ii) Society and technology
(d) Economic environment:
(i) Inflation
(ii) Unemployment
(iii) Foreign exchange rates
(iv) Interest rates
(e) Environmental factors:
(i) Laws regarding pollution
(ii) Waste management
(iii) Energy consumption and conservation
(iv) Environmental activism
54
2. SWOT analysis:
(a) Strengths and weaknesses
(b) Opportunities and threats
(c) Organisational response to threats and opportunities
B OBJECTIVES OF BUSINESS
1. Primary objectives:
(a) Wealth maximisation
(b) Growth
(c) Profit maximisation
(d) Survival
2. Secondary objectives:
(a) Market standing and share
(b) Innovation, productivity, and added value
(c) Acquisition and application of physical resources and technology
(d) Profitability in terms of return on capital employed (ROCE)
(e) Employees and management
(f) Financial resources and social responsibility
3. Conflict of objectives:
(a) Stakeholder analysis
(i) Meaning
(ii) Types
(iii) Needs and expectations
(b) Stakeholder mapping:
(i) Levels of power and interest
(ii) Dealing with stakeholder groups
(iii) Stakeholder conflicts and how they arise
(c) Stakeholder coalitions; how stakeholder groups can increase their power
and influence
C FUNCTIONS OF MANAGEMENT
1. Planning:
(a) Meaning
(b) Types:
(i) Strategic plans
(ii) Operational plans
(iii) Contingency plans
(c) Management by objectives
(d) Planning time horizons
55
2. Controlling:
(a) Meaning of the term control
(b) Steps in the traditional control process:
(i) Establishment of standards of performance
(ii) Measurement of actual performance
(iii) Comparison of actual performance with standards
(iv) Feedback
(v) Corrective action
(c) Bureaucratic control versus decentralised control
3. Co-ordination:
(a) Meaning
(b) Structure of the organisation (functional, divisional, matrix)
(c) Co-ordination: the need to keep departments working together
4. Leadership and delegation:
(a) Meaning of ‘leader’ and ‘leadership’
(b) Types of leaders
(c) Power:
(i) Meaning
(ii) Sources
(d) Theories of leadership approaches:
(i) Trait theories
(ii) Action-centered approach
(iii) Contingency approach (Fiedler)
(iv) Transformational leadership
(e) Leadership styles:
(i) The Blake and Mouton’s managerial grid; benefits and drawbacks of
the grid
(ii) Autocratic versus democratic leaders; the leadership continuum
(Tannenbaum & Schmidt)
(iii) Contingency approaches developing towards situational theory
5. Decision making:
(a) Importance of effective decision making
(b) Types of decisions:
(i) Programmed
(ii) Non-programmed decisions
(c) Decision making models:
(i) Classical
(ii) Administrative
(d) Decision making steps:
(i) Recognition of decision requirement
(ii) Diagnosis and analysis of causes
(iii) Development of alternatives
(iv) Selection of desired alternative
(v) Implementation of chosen alternative
(vi) Evaluation and feedback
6. Communication:
56
(a) Meaning and importance
(b) Forms
(c) The communication process
(d) Methods of communication
(e) Patterns of communication
(f) Effective communication:
(i) Attributes
(ii) Barriers and how to overcome them
1. Finance:
(a) Areas of expertise:
(i) Reporting
(ii) Managing
(iii) Auditing
(iv) Advising on financial performance
(b) Types of accounting:
(i) Financial accounting
(ii) Management accounting
(iii) Auditing
(iv) Specialist accounting (consultancy)
(c) Analysis of financial statements:
(i) Trends and ratios
(ii) Comparison of financial performance between companies
2. Marketing:
(a) Meaning
(b) Managing the marketing mix:
(i) Product: the product life cycle, the need for new product
development
(ii) Price: competitors’ prices, customer expectations
(iii) Place: chain of distribution
(iv) Promotion: advertising, sales promotions, public relations, direct
selling
3. Operations management:
(a) Purchasing and inbound logistics
(b) Manufacturing process
(c) Distribution and outbound logistics
4. Human resource management:
(a) Stages in the selection and recruitment process:
(i) Job description and person specification
(ii) Induction
(iii) Training
(iv) Development
(b) Motivation:
(i) Maslow’s hierarchy of needs
57
(ii) Herzberg’s motivation (hygiene) theory
(iii) McGregor’s (X/Y) theory
(iv) Victor Vroom’s Valence (expectancy) theory
(c) Rewards and incentives:
(i) Rewards versus incentives
(ii) Types of rewards and incentive schemes
(iii) Objectives of a successful reward system
A COMPUTER BASICS
1. Introduction:
(a) History of computers
(b) The future of computers
(c) Computer generations and classification
2. Computer system:
(a) Meaning
(b) Types of computers
(c) Types of data/ Information processing
(d) Caring for computers
(e) Data and computer security and risks
(f) Ergonomics (physical health and mental health)
(g) Computer ethics
3. Information technology:
(a) Meaning
(b) Manual versus computerised systems
(c) Limitations of using computers
(d) Applications
(e) Social impact of computers and information technology
1. Introduction:
(a) Meaning of hardware
(b) Hardware parts of the computer
2. Input devices:
(a) Meaning and associated characteristics
(b) Types and examples of input devices for example: - keyboard, mouse,
light pen, recorders, bar code reader, etc.
(c) Utility of input devices in business solutions
(d) Maintenance and security of input devices
(e) Input device specifications, characteristics and capabilities
58
3. Output devices:
(a) Meaning
(b) Types and examples of output devices
(c) Utility of output devices in business solutions
(d) Maintenance and security of output devices
(e) Output device specifications, characteristics and capabilities
4. Storage devices:
(a) Meaning and characteristics of computer storage
(b) Primary storage devices
(c) Secondary storage devices
(d) Storage device selection
(c) Purpose and role of computer hardware
5. Processing devices (CPU)
6. Uninterrupted power supply
7. Ports and cables
1. Computer software:
(a) Meaning
(b) Characteristics and applicability of computer software to businesses
(c) Types
(d) Application packages and suites
2. Operating systems:
(a) Meaning and characteristics
(b) Functions
(c) Types and examples
3. Utility programs:
(a) The role of utility programs as common computing requirements
(b) Characteristics and examples
(c) Commonly used utility programs
4. Programming languages:
(a) Meaning and characteristics
(b) Generation languages (machine code to artificial intelligence)
1. Data transmission:
(a) Data communication for business
(b) Transmission and control of business data
(c) Components of data communication
2. Types of networks:
(a) Meaning of computer network and applicability
(b) Characteristics and types of networks
(c) The Internet
3. Network topologies:
59
(a) Meaning, interconnection of elements and characteristics of network
topologies
(b) Basic types of network topologies and connectivity
(c) Selection of network topology
4. Network models:
Meaning, characteristics and applications of:
(a) Client-server system
(b) Peer-to-peer
60
H TERMINOLOGIES OF BASIC END-USER PACKAGES
I SPREADSHEETS
J DATABASES
K WORD PROCESSING
L BASIC PRESENTATION
PAPER 5 (II)
A SPREADSHEETS (MS-EXCEL)
62
2. Managing rows and columns:
(a) Inserting, moving and deleting cells
(b) Managing columns and rows
(c) Hiding and unhiding rows/ columns
(d) Formatting column widths and row heights
3. Managing worksheets:
(a) Formatting worksheet tabs
(b) Inserting and deleting worksheets
(c) Moving and copying worksheets
(d) Hiding and unhiding worksheets
4. Formatting cells:
(a) Number and date formatting
(b) Finding and replacing text
(c) Working with styles
5. Working with formulas and functions:
(a) Entering formulas
(b) Arithmetic operators and order of operations
(c) Using auto-fill options
(d) Using commonly used functions e.g VLookup, Sum, IF, Max and Min,
Sumif, Countif, And, Or, Left, Right and Concatenate, Round, Proper, Now
6. Organising worksheet and table data:
(a) Creating and modifying tables
(b) Sorting and filtering data in tables
(c) Summarising information in tables
7. Working with charts:
(a) Summarising data visually using charts
(b) Customising chart data
(c) Formatting chart legend and titles
(d) Changing chart bodies
(e) Saving charts as templates
(f) Creating pie-charts
8. Managing workbooks:
(a) Linking worksheets
(b) Printing worksheets
(c) Setting page setup options
(d) Setting page breaks
63
(f) Understanding document views: minimise, maximise, close and resize
buttons
(g) Understanding non-printing characters
(h) Executing commands with keyboard shortcuts
(i) Zoom slider
(j) Starting a new paragraph
(k) Help
2. Creating a basic document:
(a) Creating a blank document
(b) Customising the word environment
(c) Entering text
(d) Saving files and exiting word
3. Editing a document:
(a) Navigating and selecting text in a document
(b) Inserting, deleting, or rearranging text
(c) Undoing changes
(d) Searching and replacing text
(e) Cutting and pasting
(f) Copying and pasting
(g) Using the clipboard
(h) Finding and replacing
(i) Checking spelling, grammar and word count
(j) Enhancing textual meaning using the thesaurus
(k) Customising autocorrect options
(l) Previewing and printing documents
4. Formatting text and paragraphs:
(a) Changing font appearance
(b) Highlighting text
(c) Adding bullets and numbers
(d) Setting tabs to align text
(e) Paragraph layout
(f) Borders and shading
(g) Applying styles
(h) Creating lists
(i) Managing formatting
(j) Adding spaces before or after paragraphs
(k) Changing line spacing
(l) Creating first-line indents
(m) Indenting paragraphs
(n) Aligning paragraphs
(o) Creating hanging indent
5. Tables:
(a) Creating
(b) Modifying
(c) Formatting
(d) Converting text to tables or tables to text
64
6. Inserting graphic objects:
(a) Adding visual effects using symbols and special characters
(b) Inserting illustrations, clip art
7. Managing page appearance:
(a) Page layout
(b) Borders and colours
(c) Watermarks
(d) Headers and footers
(e) Page numbering
(f) Orientation
(g) Page size
(h) Margins
(i) Page and section breaks
REFERENCES:
65
TAXATION – PAPER 6
SYLLABUS CHART
Taxation – Paper 6
OVERALL AIM
To provide the basic knowledge of taxation in Uganda covering all aspects of tax as
considered by Government of Uganda. It will form a foundation for Advanced taxation –
paper 9.
LEARNING OUTCOMES
The taxation syllabus forms a basis for advanced taxation paper which is almost
independent of others. It however demands a student to have good knowledge of
Business law – Paper 3 and Financial Accounting - Paper 1. Students should understand
this relationship as a basis of the study and where it is necessary to review the previous
paper(s).
66
LEVEL OF ASSESSMENT
The examination will test the ability of the learner to demonstrate an understanding of
legal framework and the general tax administration in Uganda
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of 20 compulsory multiple-choice questions of 20 marks. Section B will
comprise of five questions of 20 marks each, of which the candidate will be required to
attempt four.
DETAILED SYLLABUS
1. Classifications of taxes:
(a) Progressive
(b) Proportional
(c) Regressive
2. Types of taxes: direct tax and indirect tax; advantages and disadvantages
3. Taxable capacity
4. Tax compliance, Tax evasion and tax avoidance
(a) Meaning
(b) Factors influencing tax compliance
5. Methods of tax accounting
6. Tax structure in Uganda and its implications
C INCOME TAX
D EMPLOYMENT INCOME
E BUSINESS INCOME
F PROPERTY INCOME
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G TAXATION OF RENTAL INCOME
I WITHHOLDING TAX
69
(iv) Disposal by exchange
(v) Disposal by way of gift
(vi) Deemed disposal by fire
3. Computation of capital gains tax on various disposals
70
L OTHER SOURCES OF REVENUE
1. Importation procedures:
(a) Arrival and reporting procedures for vehicles
(b) Arrival by international trains, vehicles and other means overland
(c) Re-export procedures
(d) Goods in transit
2. Unloading and removal of cargo:
(a) Entry examination
(b) Removal of goods by sale in customs warehouse
(c) Passenger clearance
3. Customs warehouses
(a) Meaning
(b) Receipt/ delivery of goods
(c) Disposal of warehouse goods
4. Bonded warehouses
(a) Meaning
(b) Customs procedures for bonded warehouses:
(i) Receipt/delivery of goods
(ii) Entry and control of goods prior to bonded ware house
(iii) Licensing of bonded warehouse
(iv) Goods not allowed in the bonded warehouse
5. Exportation procedures under customs for example
(a) Customs procedures for exports
(b) Entry out wards of goods
(c) Procedures for re-exportation
(d) Export of bonded goods
6. Smuggling of goods
(a) Meaning
(b) Forms of smuggling
(c) Reasons for imposing prohibitions
(d) Reasons for restriction of certain goods
(e) Problems associated with smuggling
(f) Ways of preventing smuggling of goods and services; and treatment of
offenders.
7. Importation by post:
(a) Procedures for clearing post parcels
(i) Examination procedures for parcels
(ii) Redirecting parcels
(b) Warehousing post imported goods
71
8. Customs Union
(a) Meaning
(a) Benefits and challenges
(b) Opportunities created
9. Common markets
(a) Advantages
(b) Trade barriers
N ETHICAL ISSUES
1. Ethical challenges that may be met when carrying out tax work
ENTREPRENEURSHIP
A BUSINESS ENVIRONMENT
1. Sole proprietorship.
2. Partnership.
3. Private limited companies.
4. Public Limited Companies.
72
C FORMS OF BUSINESS GROWTH
1. Natural Growth
2. Artificial Growth
Business Combinations:
(i) Mergers
(ii) Acquisitions/ Absorption/ Take-overs
(iii) Rationale for acquisition/ merging; merits and demerits
(iv) Buyout (Definition, factors to consider, format for buyout, taking over a
family business, merits and demerits)
(v) Franchising in business (Nature, importance, types, benefits, limitations to
franchiser and franchisee)
(vi) Holding company
(vii) Joint ventures
REFERENCES
1. The Government of Uganda: The Income Tax Act, Cap 340, Government of
Uganda.
2. The Government of Uganda: Value Added Tax, Cap 349, Government of Uganda.
3. The Government of Uganda: Customs & Excise Act, Cap. 335, Government of
Uganda.
4. Bahemuka Pius K. (2012): Income Tax in Uganda, The New Vision Printing &
Publishing Company Ltd, Kampala Uganda.3rd Edition.
7. Hisrich, R.D and M.Peters (2002), Entrepreneurship, African edition New Dehli,
Tata Mc Graw Hill. 5th Edition.
73
COST AND MANAGEMENT ACCOUNTING – PAPER 7
SYLLABUS CHART
OVERALL AIM
To enable the learner develop cost and management accounting principles for the
production of information for decision making.
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of 20 compulsory multiple-choice questions of 20 marks. Section B will
comprise of five questions of 20 marks each, of which the candidate will be required to
attempt any four.
74
DETAILED SYLLABUS
A INTRODUCTION
B COST CLASSIFICATIONS
1. Meaning of:
(a) Cost, cost unit, cost centre, cost object, cost behavior
(b) Cost classification
2. Explain the following costs:
(a) Product
(b) Period
(c) Variable
(d) Fixed
(e) Relevant
(f) Irrelevant
(g) Avoidable
(h) Unavoidable
(i) Controllable
(j) Non-controllable
(k) Job
(l) Process
(m) Sunk
(n) Opportunity
(o) Replacement
(p) Notional
(q) Budgeted
(r) Standard
(s) Historical
(t) Pre-determined
(u) Normal
(v) Abnormal
(w) Differential
(x) Marginal
(y) Future
75
(z) Conversion
(aa) Discretionary
(ab) Out-of-pocket
3. Cost classifications:
(a) Types
(b) Importance of each type
4. Elements of manufacturing costs; direct, indirect and non-manufacturing costs
5. Cost sheet /cost statement
C MATERIAL COSTING
D LABOUR COSTING
77
E OVERHEAD COSTING
1. Meaning of overheads
2. Ways of overhead classification
3. Methods of semi-variable overhead segregation:
(a) High-low method
(b) Scatter diagram
(c) Least squares regression method
(d) Simultaneous equations
4. Allocation and apportionment of overheads
5. Re-apportionment of service department overheads to production departments:-
(a) Simultaneous equation method
(b) Repeated distribution method
(c) Elimination/step method
6. Overhead absorption
(a) Determination of overhead absorption rates:
(i) Actual overhead rate
(ii) Predetermined overhead rate
(iii) Blanket and departmental overhead rates
(b) Methods of overhead recovery:
(i) Direct material cost
(ii) Direct wages
(iii) Prime cost
(iv) Direct labour hour
(v) Machine hour rate
(vi) Rate per unit of output
(vii) Sales price
(c) Accounting treatment of under/over recovery of overheads
(d) Causes of under/ over absorption of overheads
7. Meaning and determination of capacity levels:
(a) Idle capacity
(b) Normal capacity
(c) Actual capacity
(d) Practical capacity
(e) Maximum capacity
(f) Capacity based on expected sales
F COST ACCOUNTS
78
G SPECIFIC ORDER COSTING METHODS
1. Job costing
(a) Meaning
(b) Features
(c) Procedures
(d) Determination of the cost of a job
2. Batch costing
(a) Meaning
(b) Procedures
(c) Determination the cost of a batch
3. Contract costing
(a) Meaning
(b) Features
(c) Procedures
(d) Preparation of contract accounts
(e) Determination of profit/loss on contracts
H PROCESS COSTING
1. Process costs:
(a) Meaning
(b) Features
(c) Specific order costing versus process costing
(d) Preparation of process accounts
(e) Concepts of normal and abnormal losses or gains
(f) Accounting treatment of normal and abnormal losses or gains
(g) Work-in-progress
(i) Equivalent units
(ii) Determination of equivalent units
(iii) Preparation of appropriate statements
2. Joint products:
(a) Meaning
(b) Methods of apportionment of joint costs:
(i) Average unit cost
(ii) Contribution
(iii) Physical unit
(iv) Survey
(v) Market value
3. By-products:
(a) Meaning
(b) Classification
(c) By-products, main product and joint products
(d) Methods of accounting for by-products:
(i) Cost methods
(ii) Non-cost methods
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I ABSORPTION VERSUS MARGINAL COSTING
1. Meaning
2. ABC versus traditional costing systems
3. Merits and demerits of ABC
4. Classification of activities
5. Selection the cost drivers
6. Evaluation of the validity of different cost drivers
7. Determination of product costs using ABC
80
L BUDGETING AND BUDGETARY CONTROL
81
5. Types of cost standards:
(a) Basic cost standards
(b) Ideal cost standards
(c) Currently attainable standard costs
6. Desirable level of attainment
7. Activity levels
8. Setting of standards for:
(a) Direct materials
(b) Direct labour
(c) Overheads; fixed, variable and semi variable
9. Standard cost statements
10. Meaning of variance analysis
11. Determination of variances:
(a) Direct materials,
(b) Direct labour
(c) Overheads
12. Determination of sales variances
13. Responsibility centres for variances
14. Profit and loss statement showing interrelationship of the variances
ETHICAL ISSUES
REFERENCES
82
FINANCIAL REPORTING – PAPER 8
OVERALL AIM
To equip the learner with analytical and evaluation skills necessary for preparing
financial statements and explaining their importance to various stakeholders as per the
requirements of the regulatory framework for financial reporting in Uganda and the
International Financial Reporting Standards
LEARNING OBJECTIVES
LEVEL OF ASSESSMENT
To equip the learner with analytical, evaluation and synthesis skills which will help the
learner to consolidate the knowledge in financial accounting leading into advanced
financial reporting.
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 40 marks. Section B will comprise of four
questions of 20 marks each, of which the candidate will be required to attempt any
three.
83
DETAILED SYLLABUS
1. Accounting Bases
(a) (i) Meaning of accounting base
(ii) Accounting bases: - historical cost, modified historical cost, current
cost, realisable (settlement) value and present value
(b) Valuation of assets: open market/ fair value; depreciated replacement cost
(c) Measurement of profit: financial capital maintenance concept; physical
capital maintenance concept
(d) Strengths/ advantages and weaknesses/ disadvantages of each base
(e) Preparation of financial statements under historical cost, current cost,
realisable value and present value.
84
7. Statement of financial position:
(a) Disclosure of property, plant and equipment
(b) Non-current assets and current assets
(c) Non-current liabilities and current liabilities
(d) Equity
(e) Other disclosures
8. Statement of cash flows:
(a) Meaning of cash, cash equivalents and cash flows
(b) Disclosures under:
(i) operating activities
(ii) investing activities
(iii) financing activities
(c) Preparation of statement of cash flows
(d) Direct and indirect methods of ascertaining cash flows from operating
activities
10. Statement of changes in equity:
(a) Component of a statement of changes in equity
(b) Disclosure of:
(i) Changes in accounting policy
(ii) Dividends
(iii) Issue of share capital
(iv) Transfers to and from reserves
11. Accounting policies and notes to financial statements:
(a) Disclosure of:
(i) The measurement basis (or bases) used in preparing financial
statements
(ii) Other accounting policies used that are relevant to the
understanding of the financial statements
(iii) Estimation of uncertainty
12. Preparation of financial statements in accordance with IFRSs and the Companies
Act:
(a) Presenting and analysing expenses basing on their (i) nature and (ii)
function within the entity
(b) Disclosures required by the Companies Act
E INVENTORIES (IAS 2)
86
F CONSTRUCTION CONTRACTS (IAS 11)
Note: A new standard, IFRS 15 – Revenue from contracts with customers has
been developed by IASB and will replace IAS 11 with effect from 1 January 2017.
1. Objective and scope of the standard
(a) Accounting for construction
(b) Destruction or restoration of assets and rendering service contracts
(c) Types of contracts: fixed price contracts and cost plus contracts
2. Key concepts of the standard
(a) Construction contract
(b) Fixed price contract
(c) Cost plus contract
3. Accounting treatment:
(a) Recognition and measurement of:
(i) Contract revenue and cost
(ii) Contract revenue, expenses and expected losses
(iii) Profits on incomplete contracts
(iv) Work in progress
(b) Determination of the stage of contract completion
(c) Presentation and disclosure:
(i) Accounting policies (methods used for revenue and stage of
completion recognition)
(ii) Advances, retentions, contract progress and amounts due to/ from
customers; contingent assets or liabilities
87
(d) Presentation and disclosure
(i) Tax balances both current and deferred
(ii) Accounting policy
(iii) Reconciliation of tax profit/loss and accounting profit/ loss in
monetary terms or numerical reconciliation of the rate
88
(i) Market identification
(ii) Market participants
(e) Price
4. Application to non-financial assets, liabilities and own equity instruments
(a) Valuation of non-financial assets, liabilities and own equity instruments
(b) Valuation techniques and inputs
(c) Fair value hierarchy
5. Non-performance risk
6. Presentation and fair value disclosures
89
3. Accounting treatment:
(a) Recognition criteria
(b) Initial measurement and subsequent measurement to initial recognition
(i) The fair value model
(ii) The cost model
(c) Principles used to determine the fair value of the investment property
(d) Transfers to or from investment property
(e) Presentation and disclosure
90
5. Presentation and disclosure
(i) Accounting policies on methods of recognition of the revenue
(ii) Measurement bases
(iii) Amount of each significant category of revenue recognised during the
period including revenue from sale of goods and rendering services
91
4. Presentation and disclosure:
(a) Accounting policies
(b) Capitalisation rates
(c) Distinction in total borrowing costs
(d) Compare and contrast the accounting treatment for borrowing costs and
tax treatment
92
3. Accounting treatment:
(a) Conditions for recognition of a provision
(b) Legal and constructive obligations
(c) Recognition and measurement principles
4. Presentation and disclosure
(a) Disclosures on provisions, contingent liabilities and contingent assets
(b) Exceptions to disclosures
93
(d) Government grants related to biological assets
4. Presentation and disclosure:
(a) Carrying amount of biological assets on face of the statement of financial
position
(b) Aggregate gain or loss on initial recognition of biological assets and
agricultural produce
(c) Description of the biological assets
(d) Reconciliation of changes in carrying amounts between the beginning and
end of the period
94
V CONSOLIDATED FINANCIAL STATEMENTS (IFRS 10)
REFERENCES
1 Eliot Barry & Eliot Jamie (2011): Financial Accounting & Reporting, Prentice
Hall12th Edition
2 Gee Paul, Pegler and Spicer (1991): Spicer and Pegler’s Book - Keeping and
Accounts, Butterworth’s Law/HFL21st Edition
3 Hennie Van Greuning, Scott Darrel and Terblanche Simonet (2011): International
Financial Reporting Standards - A practical guide, World Bank Publications6th
Edition
5 International Accounting Standards Board (2012): International Financial
Reporting Standards, International Accounting Standards Board, United Kingdom
6 Lewis Richard and Pendrill David (1999): Advanced Financial Accounting,
Prentice Hall6th Edition
7 Rowan Jones & Pendlebury Maurice (2010): Public Sector Accounting, Pearson
Education6th Edition
8 Saleemi NA (2009): Advanced Accounting, ACME Press Ltd, Nairobi Kenya East
African Edition
9 Sangster Allan (1997): Workbook of Accounting Standards, Trans-Atlantic
Publications 4th Edition
10 Sutton Tim (2004): Corporate Financial Accounting & Reporting, Prentice Hall,
United Kingdom2nd Edition
95
ADVANCED TAXATION – PAPER 9
Taxation – Paper 6
OVERALL AIM
To provide a learner with thorough knowledge and application of all tax aspects as
required by Government of Uganda.
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
EXAMINATION STRUCTURE
There will be a three hour examination made up of sections A and B. Section A will
comprise of one compulsory question of 40 marks. Section B will comprise of four
questions of 20 marks each, of which the candidate will be required to attempt any
three.
DETAILED SYLLABUS
1. Meaning of: taxable person, chargeable income, gross income, year of income,
assessed losses, allowable expenses, non-allowable expenses
2. Revenue versus capital expenditure
96
3. Exclusivity clauses for expenses:
(a) Allowable (deductible)/ and non-allowable (non-deductible) expenses
(b) Treatment of items such as bad debts, entertainment, repairs and
maintenance, donations, assessed losses, legal and professional expenses
4. Treatment of tax losses:
(a) Carry forward of losses
(b) The number of years tax losses are required to be carried forward
5. Computation of taxable profits and determination of chargeable income
6. Computation of corporation tax liability
7. Taxation of group companies:
(a) Roll over relief
(b) Liquidation
(c) Re-organisations
8. Exempt income and exempt organisations: Meaning and examples of each
97
2. Treatment of asset disposal under non-arms length transactions
3. Non-recognition of gains or losses – involuntary disposal
4. Transitional provisions regarding capital gains tax:
(a) Market value of property as at 31 March 1998
(b) Value of property by the chief government valuer
(c) Cost base of an asset under certificate of incentives
5. Computation of capital gains tax on various disposals
6. Tax planning and capital gains tax
D EMPLOYMENT INCOME
1. Concept of employment income:
(a) Employee versus employer
(b) Residence status of an employee
(c) Resident employee versus non-resident employee
(d) Taxation as per the Income Tax Act
2. Scope and composition of employment income
3. Valuation of benefits in kind
4. Exempt benefits
5. Computation of employment tax liability
E PROPERTY INCOME
G TAXATION OF PARTNERSHIPS
1. Meaning of partnership
2. Principles behind taxation of partnerships:
(a) Residence rules
(b) Partnership income
(c) Profit appropriation
(d) Treatment of salaries
(e) Interest on capital
(f) Drawings
(g) Partners’ loans
(h) Contribution of business assets and non business assets
(i) Limited liability partnerships
98
3. Computation of chargeable income of a partnership
4. Computation of chargeable income and tax liabilities of a partner
5. Tax implications of reconstructed partnerships; dissolution, admission of new
partners, change in the structure
Offences and penalties- under the ITA, VAT Act and the East Africa Customs
Management Act
N TAX PLANNING
1. Meaning
2. Key areas of tax planning: structure of business set up, choosing where to locate
a business, choosing a sector where to set up business
3. Other tax planning ideas which a taxpayer can benefit from under the different
tax heads: income tax, customs tax, capital gains tax
1. Duty drawback:
(a) Meaning
(b) Claiming
(c) Documentation
2. Export Processing Zone (EPZ)
(a) Meaning
(b) Removal of goods from EPZ
(c) Designation of goods
3. Prohibitions and restrictions under customs management:
(a) Powers to prohibit
(b) Restricted goods:
(i) Reasons for restriction
(ii) Examples
(c) Exemptions of goods in transit
4. Customs offences and procedures:
(a) Types
(b) Seizures and forfeitures
(c) Procedures
(d) Penalties and settlement.
5. Transitional arrangements under customs management:
(a) Meaning:
(i) International tariffs
(ii) Common external tariffs
(iii) Common internal tariffs
(iv) Zero tariffs
(b) Rules of origin:
(i) Meaning
(ii) Criteria used in determining rules of origin
(iii) Exceptions to the rules of origin criteria
6. Tax treatment of goods deemed to originate from the partner states as per the
East African Customs Union
7. Customs valuation and computation of duty
101
8. Importance of International Customs Organisations:
(a) Common Markets for East and Southern Africa
(b) South African Development Cooperation
(c) World Trade Organisation
(d) UN model treaty
ETHICAL ISSUES
REFERENCES
1. Bahemuka Pius K (2012): Income Tax in Uganda, The New Vision Printing and
Publishing Company Ltd. 3rd Edition
2. Bahemuka Pius K (2011): Value Added Tax in Uganda
3. Mugume Christine (2014): Managing Taxation in Uganda, CMK Consulting,
Kampala, Uganda, 2nd Edition
4. The Government of Uganda: The Income Tax Act, Cap 340, Government of
Uganda
5. The Government of Uganda: Value Added Tax, Cap 349, Government of Uganda
6. The Government of Uganda: Customs & Excise Act, Cap 335, Government of
Uganda
102
FINANCIAL MANAGEMENT – PAPER 10
SYLLABUS CHART
OVERALL AIM
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 40 marks. Section B will comprise of four
questions of 20 marks each, of which the candidate will be required to attempt any
three.
103
DETAILED SYLLABUS
A INTRODUCTION
104
D CAPITAL INVESTMENT APPRAISAL
1. Methods of analysis:
(a) Concept and role of financial analysis in corporate finance
(b) Methods of financial analysis, their merits and demerits
2. Ratio analysis:
(a) Determination of liquidity, debt, coverage, profitability and market value
ratios
(b) Use of different ratios in financial analysis
(c) Measurement of achievement of stakeholder objectives using financial
ratios
106
3. Computation, interpretation, uses and limitations of ratios:
(a) Determination and interpretation of various ratios used in financial
analysis, including trend analysis and industry comparison
(b) Limitations of ratio analysis in decision making
4. Sales forecasts
Determination and preparation of sales forecasts for given period(s)
5. Projected financial statements and their preparation from forecast sales and
other data
6. Budgeting and leverage:
(a) Preparation of funds requirements budgets - cash budgets
(b) Role of leverage in budgeting and budgetary control
1 ETHICAL ISSUES
Types of ethical issues that a finance manager can come across and their
mitigation
REFERENCES
1 Brigham F and Scott Besley (2008): Principles of Finance, Thomson Learning Inc.
4th Edition
2 Pandey I M (2008): Financial Management, Vikas Publishing House. 9th Edition
3 Brayshaw RE, Samuel JM, and Wilkes FM (1995), Management of Company
Finance, Cengage Learning. 6th Edition
4 Brigham EF and Weston JF (1986), Managerial Finance, Saunders College
Publishing/Harcourt Brace. 8th Edition
5 Chew Donald H and Stern M Joel (2003), The Revolution in Corporate Finance,
Wiley-Blackwell Publishing. 4th Edition
6 Jaffe Jordan, Ross S, and Westerfield R (2008), Corporate Finance, McGraw-
Hill/Irwin. 9th Edition
107
MANAGEMENT DECISION AND CONTROL – PAPER 11
SYLLABUS CHART
OVERALL AIM
To equip the learner with knowledge and skills to enable them understand the critical
role management accountants play in organisations and to provide relevant advice in
different decision making situations
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will test the ability of the learner to interpret, analyse, evaluate and
apply the knowledge and skills acquired to real life situations at their workplace as a
cost and management accountant
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 40 marks. Section B will comprise of four
questions of 20 marks each, of which the candidate will be required to attempt any
three.
108
DETAILED SYLLABUS
A INTRODUCTION
1. Introduction:
(a) The economist’s CVP model
(b) The accountant’s CVP model
(c) Assumptions and limitations of CVP
2. Application of CVP analysis:
(a) Computation of: net profit, breakeven point, contribution and profit
volume ratio
(b) Meaning of margin of safety
(c) Breakeven charts and breakeven points
(d) Application of CVP analysis to non-manufacturing decisions
1. Introduction:
(a) Relevant and irrelevant costs
(b) Factors to consider in determining relevant costs and revenue
(b) Importance of qualitative factors in decision making
2. Relevant costs of materials and labour
3. Application of relevant cost analysis to decision making:
(a) Special pricing decisions (short and long term)
(b) Product mix decisions when capacity constraints exist (limiting factor
analysis)
(c) Outsourcing decisions (make or buy analysis)
(d) Discontinuation decisions
109
D COSTING SYSTEMS
1. Cost-plus pricing:
(a) Methods of cost-plus pricing
(b) Target mark-up percentages
(c) Limitations of cost-plus pricing
(d) Reasons for using cost-based pricing
2. Pricing policies:
(a) Price skimming
(b) Penetration pricing
3. Customer profitability analysis
Pareto analysis and customer profitability
4. Transfer pricing:
(a) Purpose of transfer pricing
(b) Alternative transfer pricing methods
(c) Resolution of transfer pricing conflicts
(d) Domestic and international transfer pricing
110
F RISK AND UNCERTAINTY
1 Introduction to controls:
(a) Meaning of control
(b) Controls at different organisational levels
(c) Types of controls
(d) Feedback and feed forward controls
(e) Harmful effects of controls
(f) Advantages and disadvantages of different types of control
2. Responsibility centres:
(a) Cost and expense
(b) Revenue
(c) Profit
(d) Investment
3. The nature of management accounting control systems:
(a) The controllability principle
(b) Dealing with uncontrollable factors before and after the measurement
period
111
4 Setting financial performance targets:
(a) Approaches to financial performance target setting:- engineering targets,
historical targets, negotiated targets
(b) Importance of setting high targets
(c) Participation in the budgeting and target setting process
(d) Side effects of using accounting information on performance evaluation
112
J DIVISIONAL PERFORMANCE EVALUATION
113
3. Test of reliability:
(a) The coefficient of determination
(b) Standard error of the estimate
(c) Standard error of the coefficient
4. Learning curve theory:
(a) The learning curve effect and its applications
(b) The experience curve and its applications
1. Introduction:
(a) Reasons for holding inventory
(b) Relevant costs for quantitative models under conditions of certainty
2. Economic order quantity (EOQ):
(a) Determination of EOQ (using various methods)
(b) Assumptions of EOQ formular
(c) Application of EOQ model
(d) Uncertainty and safety stocks
3. Application of activity based costing (ABC) to inventory management
4. Other considerations in inventory management
5. Materials requirement planning
6. Just-in-time (JIT) purchasing
7. Other inventory management techniques
M LINEAR PROGRAMMING
114
N COST MANAGEMENT AND STRATEGIC MANAGEMENT ACCOUNTING
1. Introduction:
(a) The importance of cost management
(b) The need for accurate cost measurement systems
2. Activity-based management (ABM):
(a) The ABM process
(b) The relationship between ABM and ABC
(c) Advantages and disadvantages of ABM
3. Benchmarking:
(a) The benchmarking process
(b) Areas in which an organisation can benchmark
(c) Importance of benchmarking
(e) Difficulties in benchmarking
(f) Use of benchmarking process to improve performance
4. Business process re-engineering:
(a) Steps taken in business process re-engineering
(b) Advantages and criticisms of business process re-engineering
(c) Uses of business process re-engineering
5. Management audits: objectives and importance
6. Value chain analysis:
(a) The structure of value chain
(b) The primary and secondary activities of value chain
(c) Value chain analysis and competitive advantage
(d) Importance of value chain analysis
7. Just-in-time (JIT) philosophy:
(a) Operation of the JIT system
(b) The benefits of JIT
(c) Characteristics and limitations of JIT system
(d) Effects of JIT in strategic management accounting
8. Total quality management (TQM):
(a) The TQM process
(b) Characteristics of a TQM
(c) Costs of quality management
(d) Effects of TQM in strategic management accounting
9. Environmental cost management:
(a) The importance of environment cost management
(b) Environment costs incurred by organisations
10. The balanced scorecard:
(a) Applications of the balanced scorecard
(b) Advantages and limitations of using the balanced scorecard
115
O RECENT DEVELOPMENTS
REFERENCES
1 Arnold John, Hope Tony and Turley Stuart (1996), Accounting for Management
Decisions, Prentice Hall, London, UK 3rd Edition
2 Bhilmani Andrew, Datar SM, Foster Gand Horngen Charles T (2005), Cost
Accounting Prentice Hall 12th Edition
3 Drury JC (2008), Management and Costing Accounting, Chapman & Hall, London,
UK, 7th Edition
4 Lucey T (2009), Management Accounting, Southwestern Cengage Learning,
London, UK5th Edition
116
AUDITING AND PROFESSIONAL ETHICS AND VALUES - PAPER 12
SYLLABUS CHART
OVERALL AIM
To enable the learner understand procedures involved in planning and executing audit
assignments as well as developing insights into professional values, ethics and
attitudes.
LEARNING OUTCOMES
1. Define auditing
2. Explain the need for and the nature of auditing
3. Describe the legal, regulatory and ethical environment within which audits are
performed in Uganda
4. Explain the principles and procedures of auditing
5. Explain how audit work is documented to provide sufficient appropriate audit
evidence
6. Explain the design and testing of internal controls
7. Describe risks of auditing in an information technology environment and the use of
computer-assisted audit techniques
8. Explain the role of internal auditing
9. Describe the performance of internal audit tasks
10. Explain ethics in business and society
11. Demonstrate an understanding of public interests and fundamental ethical
principles
12. Demonstrate an understanding of ethical standards of an accountant
13. Discuss ethical issues that an accountant needs to be mindful of
14. Explain corporate governance issues
15. Evaluate the relationship between ethics and corporate governance
16. Apply professional ethics, values and attitudes to work assignments
17. Identifying business opportunities and developing them into viable businesses
18. Explain the challenges facing entrepreneurs and how to overcome them
117
LEVEL OF ASSESSMENT
The examination will be focused mainly on knowledge, application and analysis of the
principles acquired in auditing and professional ethics and values.
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A B and C. Section A will
comprise of one compulsory question of 30 marks. Section B will comprise of four
questions of 20 marks each of which the candidate will be required to attempt any
three. Section C will comprise of two questions of 10 marks each, of which the
candidate will be required to attempt one.
DETAILED SYLLABUS
1. Auditing:
(a) Meaning
(b) Purpose/ objectives
(c) Development
(d) Auditing versus accounting
2. The changing role of auditing:
(a) Ways in which audit objectives have changed over the years
(b) Reasons for changes in audit objectives over the years
3. The information gap and stewardship:
(a) The concepts of accountability, stewardship and agency
(b) Responsibility over the financial statements of an entity
4. Auditing postulates
5. Concepts of auditing:
(a) Auditor’s independence
(b) Audit evidence
(c) Materiality
(d) True and fair
(e) Disclosure of accounting policies
6. Qualities of an auditor
7. Types of audits:
(a) Statutory, government, private
(b) Internal audits
(c) Other assurance assignments:
(i) Forensic
(ii) Value for money
(iii) Audits relating to environmental and social issues
(d) Advantages and disadvantages of an audit
118
B LEGAL, REGULATORY AND ETHICAL ENVIRONMENT
119
C AUDIT PLANNING AND RISK ASSESSMENT
1. Audit engagements:
(a) Procedures of obtaining new audit work
(b) Risks associated with the tendering process
(c) Accepting new audit engagements:
(i) The ethical, legal, practical and risk related issues to consider
(ii) Procedures auditors should follow when accepting new audit work
(iii) Importance, contents and format of an engagement letter
2. Audit objectives:
(a) Objective of an audit of financial statements
(b) Procedures required in undertaking an audit of financial statements
(c) Influences on the conduct of an audit
(d) Risk-based approach
3. Planning and risk assessment
(a) Audit planning:
(i) Need for planning an audit
(ii) Contents of the overall audit strategy and audit plan
(iii) Relationship between the overall audit strategy and the audit plan
(iv) Development and documentation of an audit plan
(v) The planning process
(b) Professional judgment and materiality:
(i) Importance of professional skepticism
(ii) The role of professional judgement
(iii) Identification of potential misstatements
(iv) Materiality and its importance
(c) Risk assessment:
(i) Meaning of audit risk
(ii) Audit risks at the financial statement and assertion levels
(iii) Auditor’s response to identified risks
(iv) Determination of materiality levels from financial information
(v) Identification and assessment of risk of material misstatements
(vi) Assessment of risks due to fraud
(vii) Effect of fraud and material misstatements on audit strategy and
work to be done
(d) Understanding the entity and its environment:
(i) Obtaining an initial understanding of the entity and its environment
(ii) Application of preliminary analytical procedures
(iii) Ratios used in analytical procedures
(iv) Interim audits:
• Purpose
• Procedures
• Effect on the final audit
120
(e) Audit documentation:
(i) Nature and purpose
(ii) Form, content and extent
(iii) Contents of working papers and supporting documents
(iv) Procedures of ensuring the safety and retention of working papers
and other audit documents
(v) Current and permanent files
D INTERNAL CONTROLS
121
4. The effects on risk assessment:
(a) Management’s risk assessment process with reference to internal control
components
(b) Limitations of internal control components in the context of fraud and error
(c) Reporting of internal control weaknesses and recommendations to
overcome them
1. Audit sampling:
(a) Considerations and process of designing audit samples
(b) Determination of sample sizes and selection of items for sampling; bases/
approaches to selecting samples (statistical, non- statistical)
(c) Circumstances when audit sampling is not appropriate
(d) Sampling risk
2. Audit evidence:
(a) Types
(b) Sources
(c) Techniques of obtaining audit evidence
(d) Sufficiency and appropriateness
(f) Reliability
(g) Limitations on the quality and quantity
(h) Consistency of audit evidence:
(i) Meaning and the usefulness
(ii) Need for consistency of audit evidence
(iii) Procedures used in obtaining consistent audit evidence
(i) Procedures/ methods/ techniques of obtaining evidence
3. Analytical procedures:
(a) Meaning
(b) Use of substantive analytical procedures in an audit
(c) How results of analytical procedures are investigated
4. External confirmations:
(a) Importance of external confirmation procedures
(b) How external confirmations are performed
(c) Evaluation of external confirmations
122
G AUDIT PROCEDURES
H INTERNAL AUDIT
123
2. External versus internal auditing:
(a) Responsibilities in the detection and prevention of fraud and error
(b) Roles regarding planning and collection of audit evidence
(c) Internal and external auditor’s reports
3. Performing an Internal Audit Assignment:
(a) Nature of internal audit work
(b) Planning internal audit assignments
(c) Conducting an internal audit assignment
(d) Communication of the results of internal audit assignments
(e) The format and content of audit review reports
(f) Recommendations to management and those charged with governance
4. Developments in internal auditing:
(a) Nature and purpose of internal audit assignments including value for
money, information technology, investigation
(b) Operational internal audit assignments (procurement, marketing, treasury
and human resources management)
(c) Advantages and disadvantages of outsourcing the internal audit function
A INTRODUCTION
B WORKPLACE ETHICS
1. Meaning
2. Ethical behaviour at work:
(a) Individual standards and values
(b) Manager’s and co-workers’ influence
(c) Codes of ethics and compliance requirements
(d) Discrimination
(e) Harassment
3. Importance of ethical behaviour at the workplace
4. Management of ethical behaviour at the workplace
C ETHICS IN BUSINESS
124
3. Sources of ethical standards:
(a) The Utilitarian approach
(b) The rights approach (the deontological approach)
(c) The fairness of justice approach
(d) The common good approach
(e) The virtue approach
4. Types of business ethical issues
5. Enforcement of corporate policy and functional area ethics
6. Areas covered by corporate codes of ethics
7. Concept of ethical dilemma in businesses:
(a) Business relationships
(b) Conflicts of interest
(c) Fairness and honesty
(d) Communications
8. Benefits of adhering to business ethics:
(a) Improved society
(b) Change management
(c) Strong teamwork
(d) Productivity
(e) Employee growth
(f) Management of the human resources
(g) Avoidance of criminal acts
(h) Manage values associated with quality management, strategic planning
and diversity management
(i) Promotion of strong public image
E PUBLIC INTEREST
1. Meaning
2. Composition of the public
3. Negative and positive outcomes (costs and benefits) of public interest
4. Decisions/ actions taken in the public interest as a democratic process
5. Application of public interest issue or policy to cultural and ethical diversity
6. Importance of corporate social responsibility (CSR) in organisations:
(a) Need for CSR
(b) Key developments in CSR
(c) CSR mechanisms
(d) Benefits of CSR
125
F ACCOUNTANTS IN PUBLIC PRACTICE
G CORPORATE GOVERNANCE
I WHISTLE-BLOWING
Note: Reference should be made to relevant Acts especially those listed in the
references section
1. Factors to consider
2. Generation business ideas/ spotting opportunities(product/ service ideas)
3. Selection of the type of the organisation/ opportunity assessment plan
4. Problems in selecting new ventures
5. Factors to consider for a successful business venture
6. The venture life cycle
7. Financing new ventures:
(a) Sources of capital (Internal and external)
(b) Credit analysis and assessment of risks
(c) Financial planning
(d) Analysing and managing your finances
(e) Accounting and record keeping
(f) Strategies for managing growth and transition in a venture
(g) Factors affecting the growth of entrepreneurial ventures
127
(h) Factors for success at every stage of development
(i) Assessment and selection of a suitable market
(j) Evaluation of a business venture
REFERENCES
1 Institute of Certified Public Accountants of Uganda (2009): Code of Ethics,
Institute of Certified Public Accountants of Uganda
2 International Federation of Accountants (2012): Handbook of International
Auditing, Assurance and Ethics Pronouncements, International Federation of
Accountants United Kingdom
3 Manasseh Paul (2007): A Textbook of principles of Auditing, McMore Accounting
Books Revised Edition
4 Millichamp AH and Taylor John (2008): Auditing, Cengage learning 10th Edition
5 International Federation of Accountants Council (2006), Code of Ethics for
Professional Accountants, International Federation of Accountants Council,
United Kingdom
6 The Government of Uganda, The Leadership Code Act, 2002
7 The Government of Uganda, The Inspectorate of Government Act, 2002
8 The Government of Uganda, The Anti-Corruption Act, 2002
9 Velasquez Manuel V (2001), Business Ethics: Concepts & Cases, Prentice Hall5th
Edition
10 The Government of Uganda, The Accountants Act, 2013
11 The Government of Uganda, The Companies Act, 2012
12 Weiss Joseph W (2005), Business Ethics: A Stakeholder Approach & Issues
Management Approach, Cengage Learning4th Edition
13 Allen KR Mayer C Earl (1994), Entrepreneurship and small business management
Mc GrawHill Glencoe 1st Edition
14 Grupta, Srinivasan (1999), Entrepreneurial Development, Sultan Chand and Sons
Publishers 2nd Edition
15 Hisrich, RD and MPeters (2002), Entrepreneurship, African edition New Dehli,
Tata Mc Graw Hill 5th Edition
128
ANNEX
EXAMINABLE STANDARDS
129
ADVANCED FINANCIAL REPORTING - PAPER 13
SYLLABUS CHART
Knowledge acquired at lower level papers is assumed and is applicable in this paper
OVERALL AIM
To enable the learner consolidate and apply knowledge in matters of financial reporting
in the business sectors of the economy
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will be designed to test the learner’s ability to integrate knowledge
and skills acquired in earlier papers and in the preparation of consolidated financial
statements as well as business combinations and interests in joint ventures.
130
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 50 marks. Section B will comprise of four
questions of 25 marks each, of which the candidate will be required to attempt any two.
DETAILED SYLLABUS
A REPORTING CONCEPTUAL FRAMEWORK
1 The Conceptual Framework for financial reporting under IFRSs:
(a) Problems addressed by the framework
(b) Scope and authority of the framework
(c) Structure of the standards setting process:
(i) Setting the agenda
(ii) Project planning
(iii) Development and publication of a discussion paper
(iv) Development and publication of an exposure draft
(v) Development and publication of an IFRS
(vi) Procedures after an IFRS are issued
(d) Effects of the framework on the preparation and presentation of financial
statements
(e) Recognition and measurement of the elements of financial statements
2. Major influences on standards: factors considered in development of standards
3. Institute of Certified Public Accountants of Uganda (ICPAU):
(a) Roles of ICPAU as enshrined in the Accountants Act, 2013
(b) Relationship between ICPAU and other professional accountancy bodies
4. The Regulatory Framework:
(a) Importance of regulating financial reporting
(b) Roles of:
(i) International Accounting Standards Committee Foundation
(ii) International Accounting Standards Board (including its
membership)
(iii) Standards Advisory Council
(iv) Financial Reporting Interpretations Committee
(c) Factors that have shaped financial accounting and reporting to current/
present state
(d) Main influences on possible future developments of financial accounting/
reporting
(e) Role of IFRSs
5. Forms of Regulation:
(a) The Companies Act:
(i) Accounting and reporting requirements
(ii) Impact of the Act on financial accounting and reporting
(iii) Non-financial statements required by the Act: directors’ report,
auditor’s report, chairman’s report, operating and financial review
(listed companies)
131
(b) Accounting Standards:
(i) Purpose
(ii) The standards setting process
(c) Financial Institutions Act
(d) Insurance Act
(e) The Microfinance Deposit Taking Institutions Act
(f) Reconciliation of different IFRSs with the above Acts
6. The Role of other regulatory bodies like Bank of Uganda, Insurance Regulatory
Authority, Capital and Financial Markets Authority:
(a) Objectives and functions of each regulatory body
(b) Legal and Compliance-guidelines
(c) Financial reporting requirements and reconciliation with the requirements
of IFRSs
(d) Institutions that must comply with each regulatory body
(e) Purpose and contents of an accountant’s report for listing
132
C ADVANCED GROUP FINANCIAL STATEMENTS (IFRS 3, IFRS 10,
IFRS 12, IAS 27)
133
F SEPARATE FINANCIAL STATEMENTS (IAS 27)
134
3. Aggregation of operating segments
4. Determining reportable segments
5. Quantitative thresholds
6. Disclosure of segmental information
136
16. Nature and extent of risks arising from financial instruments:
(a) Credit risk
(b) Currency risk
(c) Interest rate risk
(d) Liquidity risk
(e) Loans payable
(f) Market risk
(g) Other price risk
(h) Past due
17. Transfer of financial assets
137
P NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED
OPERATIONS (IFRS 5)
138
R EMPLOYEE BENEFITS (IAS 19)
139
T REPORTING FOR SMALL AND MEDIUM-SIZED ENTITIES (SMEs) USING
IFRSs
140
4. Current issues that influence or might influence socially oriented disclosures in
corporate reporting
5. Evaluation of ethical conduct in the context of corporate reporting
6. Corporate governance:
(a) Concept of corporate governance
(b) Corporate governance effect on corporate behaviour
(c) Pressure on good corporate governance
(d) Types of unethical behaviour
(e) Awareness of how and why governance mechanisms may differ from
jurisdiction to jurisdiction
(f) The effects of good corporate governance on capital markets
(g) Appreciation of the role of accounting in corporate governance
(h) External audits in corporate governance
(i) Corporate governance in relation to the board of directors
(j) Risk management
(K) Have a greater sensitivity to areas of potential conflict of interest
W INTERNATIONAL HARMONISATION
Y INTEGRATED REPORTING
141
Applicable International Accounting Standards (IASs)/International
Financial Reporting Standards (IFRSs)
S/N
Title
1 The Conceptual Framework 9
IASs 9
2 IAS 1 Presentation of Financial Statements 9
3 IAS 7 Statement of Cash Flows 9
4 IAS 10 Events After the Reporting Period 9
5 IAS 12 Income Tax 9
6 IAS 17 Leases 9
7 IAS 19 Employee Benefits 9
8 IAS 21 Foreign Currency Translation 9
9 IAS 24 Related Party Disclosures 9
10 IAS 26 Accounting and Reporting by Retirement Benefit Plans 9
11 IAS 27 Separate Financial Statements 9
12 IAS 28 Investments in Associates 9
13 IAS 29 Financial Reporting in Hyperinflationary Economies 9
14 IAS 32 Financial Instruments: Presentation 9
15 IAS 33 Earnings Per Share 9
16 IAS 34 Interim Reporting 9
17 IAS 37 Provisions, contingent liabilities and contingent Assets 9
18 IAS 39 Financial Instruments: Recognition & Measurement 9
9
IFRSs 9
1 IFRS 2 Share-Based Payment 9
2 IFRS 3 Business Combinations 9
3 IFRS 4 Insurance Contracts 9
4 IFRS 5 Non-Current Assets Held For Sale 9
5 IFRS 7 Financial Instruments: Disclosures 9
6 IFRS 8 Segment Reporting 9
7 IFRS 10 Consolidated Financial Statements 9
8 IFRS 11 Joint Arrangements 9
9 IFRS 12 Disclosure of Interest in other entities 9
10 IFRS 13 Fair Value Measurement 9
11 IFRS for SMEs 9
142
REFERENCES
143
PUBLIC SECTOR ACCOUNTING & REPORTING – PAPER 14
SYLLABUS CHART
OVERALL AIM
To enable the learner to apply and integrate policy, legal, regulatory, institutional,
reporting and accountability frameworks in the public sector
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will be designed to test the learner’s analytical, evaluation and
synthesis skills in the management of public resources.
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 50 marks. Section B will comprise of four
questions of 25 marks each, of which the candidate will be required to attempt any two.
144
DETAILED SYLLABUS
A INTRODUCTION
145
C ACCOUNTING PRACTICES IN THE PUBLIC SECTOR
146
4. The public procurement process:
(a) Procurement stages: key activities in the bidding process,
(b) What takes place in each of the stages/ activities
(c) What should be adhered to in each activity
5. Contract Management:
(a) Meaning and structure of contract management
(b) Identification, roles and responsibilities of key stakeholders in contract
management
(c) Techniques used in contract cost control and management
(d) Main content of a contract management plan
(e) Causes of delays and termination of contracts
(f) Challenges in contract management
6. Evaluation of procurement processes and procedures in government
148
H PRESENTATION OF FINANCIAL STATEMENTS (IPSAS1)
149
5. Presentation of cash flow statements:
(a) Operating activities
(b) Investing activities
(c) Financing activities
6. Reporting of cash flow statements from operating, investing and financing
activities using the:
(a) Direct Method
(b) Indirect Method
7. Reporting cash flows on net basis
8. Foreign currency cash flows
9. Interest and dividends
10. Taxation on net surplus
150
K THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES (IPSAS 4)
151
M CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS (IPSAS 6)
152
5. Measurements of inventories:
(a) Lower of cost and net realisable value
(b) Fair value
(c) Lower of cost and current replacement costs
6. Cost of inventories:
(a) Cost of purchase
(b) Cost of conversion
(c) Other costs
(d) Cost of inventories of a service provider
(e) Cost of agricultural produce harvested from biological assets
7. Cost formulas: net realisable value, distributing goods at no charge or for a
nominal charge
8. Recognition as an expense
9. Disclosure
153
(c) Value in use:
(i) Depreciated replacement cost approach
(ii) Restoration cost approach
(iii) Service units approach
(d) Application of approaches
6. Recognising and measuring an impairment loss
7. Reversing an impairment loss
8. Re-designation of assets
9. Disclosure
157
W INTANGIBLE ASSETS (IPSAS 31)
158
PREFACE TO INTERNATIONAL PUBLIC SECTOR ACCOUNTING STANDARDS
S/N Title
1 Introduction to Public Sector Accounting
2 Reporting framework in Uganda
3 Basis of Accounting in the Public Sector
4 IPSAS 1 Presentation of Financial Statements
5 IPSAS 2 Cash Flow Statements
6 IPSAS 3 Accounting policies, Changes in Accounting Estimates and errors
7 IPSAS 4 The Effects of changes in Foreign Exchange Rates
8 IPSAS 5 Borrowing Costs
9 IPSAS 6 Consolidated and Separate Financial Statements
10 IPSAS 9 Revenue from Exchange Transactions
11 IPSAS 14 Events after the Reporting Date
12 IPSAS 19 Provisions, Contingent liabilities and Contingent Assets
13 IPSAS 20 Related Party Disclosures
14 IPSAS 21 Impairment of non-Cash Generating Assets
15 IPSAS 22 Disclosure of Financial Information about the General Government
Sector
16 IPSAS 23 Revenue from Non-Exchange Transactions (Taxes and Transfers)
17 IPSAS 24 Presentation of Budget Information in Financial Statements
18 IPSAS 27 Agriculture
19 IPSAS 29 Financial Instruments: Recognition and Measurement
20 IPSAS 31 Intangible Assets
21 IPSAS 32 Service Concession Arrangements: Grantor
REFERENCES
159
BUSINESS POLICY AND STRATEGY – PAPER 15
OVERALL AIM
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will test the ability of the learner to comprehend, apply, evaluate and
analyse strategic options available to organisations, and report on the principles of
strategic management accounting, covering issues on ethics, especially as they relate to
marketing.
EXAMINATION STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 50 marks. Section B will comprise of four
questions of 25 marks each, of which the candidate will be required to attempt any two.
DETAILED SYLLABUS
160
Evaluation of internal and external organisational environment using various
frameworks
(a) External environment:
(i) The macro environment using the PESTLED framework
(ii) The micro environment using the five-forces framework
(b) Internal environment:
Assessment of the internal organisational competences using a range of
frameworks, including:
(i) Resource audit
(ii) Functional structures
(iii) Strategic gap analysis
(iv) BCG - Growth share matrix framework
(v) General electric grid
(vi) Product profitability analysis
(vii) Product lifecycle analysis
(viii) Value chain analysis
(ix) Financial analysis
(x) Benchmarking
(xi) Break even analysis
(xii) The balanced score card
(xiii) Customer profitability analysis
(c) Situational analysis:
(i) Evaluation of key success factors to organisational success
(ii) Competitive advantage: its sources and sustainability
(iii) Strength, weakness, opportunities and threats (SWOT) analysis
(iv) Current strategy with focus on positives, negatives and likelihood of
success
(v) Usefulness of models in gaining competitive advantage: SWOT
analysis, Porter’s five forces model, Value chain analysis and
Generic strategies
(vi) Boston Consulting Group (BCG) matrix
3. Shaping a strategy
(a) Importance of vision and mission
(b) Developing a strategic vision and mission
(c) Need for objectives
(d) Qualities of objectives
(e) Importance of strategies in improving organisational performance
(f) Need for a corporate strategy, business strategy and functional strategy
(g) Evaluation of strategies:
(i) Generic strategies (cost leadership, differentiation and focus)
(ii) Directional strategies (growth, stability and retrenchment)
(iii) Ansoff’s product/ market matrix (product development, market
development, market penetration and diversification, related and
unrelated)
161
(h) Restructuring:
(i) Retrenchment and divestiture
(ii) Business process re-engineering
(iii) Strategic alliances (joint ventures, licensing, franchising)
(iv) Corporate restructuring and turnaround
(i) Multinational strategies (exportation, licensing green field development)
(j) Diversification: importance
4. Evaluation and choice of strategies
(a) Evaluation of the appropriateness of strategies based on:
(i) Suitability
(ii) Feasibility
(iii) Acceptability
(iv) Competitive advantage
(b) Strategic analysis
5. Strategy implementation
(a) Organisational aspects that affect strategy implementation:
(i) Organisation structures
(ii) Policies and procedures
(iii) Support systems
(iv) Budgets
(v) Rewards and incentives
(vi) Corporate culture
(vii) Ethics and values
(viii) Best practices
(ix) Social responsibility
(x) Strategic leadership
(b) Failure of strategy implementation and remedies
6. Strategic control
(a) Need for strategic control
(b) Forms of control
(c) The control cycle
(d) Performance measurement; appropriate key performance indicators
(qualitative and quantitative)
(e) Use of benchmarking in strategic control
(f) Improvement of strategic control
7. Developing a strategic plan
(a) Structure of a strategic plan in:
(i) Business organisations
(ii) Public Sector
(iii) Non-governmental organisation (NGO) or Project organisations
162
(b) Writing a development project proposal/plan for NGOs/ Government
(i) Application of problem tree analysis approach in developing project
plans
(ii) Project logical framework (goals, objectives, inputs, outputs and
outcomes) and its importance in developing the Project strategic
plans/proposals
(iii) Constraining factors in development project planning (time, cost
and quality)
(c) Linking strategic plans to operational plans
(i) Importance of corporate, business and functional plans in an
organisation
(ii) Process of developing strategic budget that is linked to strategic
plans, and the major roles played by an accountant in the strategic
planning process of organisations
(iii) Importance of linking a strategic plan to; business, human
resource, financial, operational and marketing plans
(iv) Reasons for failure of linking strategic plans to operational plans in
some organisations
B MARKETING MANAGEMENT
1. Meaning of marketing:
(a) Role of marketing for both profit making and non-profit making
organisations
(b) Stages in evolution of marketing
(c) Strategic marketing/ the marketing plan:
(i) Assessment of internal and external marketing environment guided
by a range of frameworks (PESTLED, Five forces Model, BCG, Life
cycle analysis)
(ii) Situational assessment
(iii) Characteristics of industrial and individual customers
(iv) Consumer buying behaviour and its relevance to the marketer
(v) Characteristics of goods and services, and the marketing
implications
2. Marketing strategies:
(a) Application of marketing concepts; market segmentation, market
targeting, market positioning
(b) Evaluation of marketing strategies; Ansoff’s product market matrix
(product development, market development, market penetration and
diversification)
(c) Strategic choices
163
3. Marketing mix
Applicability of the elements of a marketing mix:
(a) Product:
(i) Goods versus services
(ii) Product development process
(iii) Relevance of the product life cycle
(b) Price: pricing strategies
(c) Place: distribution channels
(d) Promotion:
(i) Communication model as part of promotion
(ii) Elements of the promotional mix
(iii) Usefulness of ‘push’ and ‘pull’ promotional strategies
(e) People: role of people in marketing goods and services
(f) Processes: role of the process in service marketing
(g) Physical evidence: the need to create physical evidence in service
marketing
4. Ethics in marketing: practical challenges of ethics in marketing
164
6. Performance appraisal:
(a) Need for performance appraisal
(b) Forms of performance appraisal
(c) Challenges of performance appraisal and ways of resolving them
7. Managing Generation X and Generation Y employees
D OPERATIONS MANAGEMENT
165
(iv) Strategic interventions (open systems planning, integrated strategic
change, trans-organisational development, mergers and
acquisitions, culture change, self-designing organisations, and
organisational learning)
2. Change management
(a) The need for change management (changing environment versus
resistance to change)
(b) Forces of change: internal and or external
(c) Approaches to change management (forceful change versus educative
change)
(d) Frameworks for change management:
(i) The champion of change model
(ii) Kurt Lewin’s Freeze model
(iii) Kurt Lewin’s Force Field Analysis
H ETHICAL ISSUES
166
PART II- ENTREPRENEURSHIP
1. Creativity:
(a) Meaning
(b) Principles
(c) Stages of creativity process
(c) Limitation to creativity
(e) Benefits of creativity
2. Innovation:
(a) Meaning
(b) Types
(c) Sources
(d) Principles
(e) Benefits
(f) Fostering innovations in business ventures
167
REFERENCES
168
ADVANCED FINANCIAL MANAGEMENT – PAPER 16
SYLLABUS CHART
OVERALL AIM
To enable the learner broaden their knowledge and skills, and exercise judgment in the
effective management of financial resources.
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
The examination will test the learner’s evaluation, analytical and synthetic skills in
financial decision making.
EXAMINATION STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 50 marks. Section B will comprise of four
questions of 25 marks each, of which the candidate will be required to attempt any two.
A CAPITAL BUDGETING
169
(d) Determination and usefulness of non-discounted investment appraisal
methods:
(i) Payback period
(ii) Accounting rate of return
(e) Discounted investment appraisal methods:
(i) Relationship between interest rates and inflation; real and nominal
discount rates
(ii) Time value of money and the role of cost of capital in the capital
budgeting process
(iii) Present values of cash flows, including annuities and perpetuities
(iv) Relevant cash flows for capital budgeting projects
(v) Determination and usefulness of:
• Net present value
• Internal rate of return
• Profitability index
(f) Discounted versus non-discounted cash flow methods
(g) Determination and application of before and after tax discount rates
(h) Determination and application of tax effects on cash flows, including the
tax benefits of capital allowances
2. Probability and sensitivity analysis in investment appraisal:
(a) Relationship between risk and uncertainty in relation to project lifespan
(b) Application, usefulness and limitation of sensitivity analysis in capital
budgeting
(c) Application, usefulness and limitation of probability analysis to capital
budgeting
(d) Application, usefulness and limitation of other risk adjusting techniques
like adjusted payback and simulation models
3. Replacement and other specific investment decisions:
(a) Asset investment decisions using equivalent annual cost method
(b) Leasing or borrowing to purchase assets using the before and after tax
cost of debt
4. Capital rationing (Single and Multi period rationing):
(a) Capital rationing concept; its causes in investment
(b) Profitability indices and selection of divisible capital investment projects
(c) Combinations of non-divisible investments
(d) Sub-optimal decisions of capital rationing
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3. Theories of capital structure:
(a) The traditional school of thought about the relevance of capital structure
(b) The Modigliani and Miller school of thought about the relevance of capital
structure, both with and without taxes
4. Interaction between financing and investment decisions
5. Dividend policy:
(a) Relationship between the dividend decision and the financing decision
(b) Practical factors that influence the dividend decision
(c) Relevance of the dividend decision using both the traditional and
Modigliani and Miller school of thought
(d) Forms of dividends:
(i) Stock splits
(ii) Bonus shares
(iii) Cash dividends
C PORTFOLIO ANALYSIS
171
4. Estimation of beta values using the security market line as well as
covariance/correlation formulae
5. Practical applications and limitations of CAPM
6. Determination of the adjusted present value of investments
7. Concept of arbitrage pricing theory and its relevance in financial investments
172
2. Valuation:
(a) Reasons for valuing business and financial assets
(b) Methods of valuation; advantages and limitations:
(i) Net asset valuation
(ii) Dividend valuation
(iii) Market capitalisation
(c) Income based models:
(i) Price: earnings ratio
(ii) Earnings yield
(iii) Discounted cash flows
(d) Methods of valuing debt stock and bonds:
(i) Redeemable and irredeemable debt
(ii) Preference shares
(iii) Bonds
3. Financial distress:
(a) Nature and implications of financial distress in a business organisation
(b) Forms, signs and causes of financial distress
(c) Solutions to financial distress
4. Bankruptcy, liquidation and reorganisation and circumstances under which they
might be the best alternatives to the business
H INTERNATIONAL MARKETS
173
4. Interest rates and risk
(a) Meaning of term structure of interest rates
(b) The yield curve:
(i) Meaning and role
(ii) Factors that determine the shape of the yield curve
(c) Differences between gap exposure and basis risk as types of interest rate
risk
(d) Instruments available to manage interest rate volatility:
(i) Asset and liability management
(ii) Interest rate futures
(iii) Forward rate agreements
5. Passive versus active management strategies
6. Foreign direct investment:
(a) Meaning
(b) Forms:
(i) Exporting
(ii) Joint ventures
(iii) Building subsidiaries
(iv) Licensing
(v) Franchising
(c) Motives
(d) Barriers
(e) Risks and challenges
(f) Application of investment appraisal techniques in foreign direct
investments
I ISLAMIC FINANCE
1. Islamic financing
(a) Meaning
(b) Sudden interest in Islamic financing
(c) Islamic tradition on which Islamic financing is based
(d) Differences between Islamic and conventional modes of finance
2. Banking and Interest (Riba)
(a) Islamic banking; relationship between the user and the supplier of funds
(b) Contracts and products used in Islamic banking
(c) Islamic versus conventional banks
3. Sharia Board:
(a) Composition of the Sharia board
(b) Explain the functions of the Sharia board
4. The principles of Islamic finance:
(a) Interest-free
(b) Need for underlying assets
(c) Avoidance of uncertainty/ gambling
(d) Profit and loss sharing
(e) Rights and liabilities of banks and customers
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(f) Sharia compliance
(g) Unlawful goods and services
(h) Profit sharing principle
5. Islamic financing structures:
(a) Murabaha
(b) Tawarruq
(c) Wakala
(d) Ijara
(e) Istisna’a
(f) Musharaka
(g) Sukuk
(h) Mudaraba
6. Islamic capital markets:
(a) Islamic financial instruments
(b) Potential for Islamic capital instruments
7. Sharia compliance and the equity market
8. Issues that need to be considered:
(a) Risks and Liabilities
(b) Co-financing
9. Requirements for sustained growth of Islamic finance
REFERENCES
175
AUDITING AND OTHER ASSURANCE SERVICES - PAPER 17
OVERALL AIM
LEARNING OUTCOMES
LEVEL OF ASSESSMENT
EXAMINATIONS STRUCTURE
There will be a three hour examination made up sections A and B. Section A will
comprise of one compulsory question of 50 marks. Section B will comprise of four
questions of 25 marks each, of which the candidate will be required to attempt any two.
176
DETAILED SYLLABUS
1. Introduction:
(a) Meaning, role and benefits of auditing and other assurance services
(b) Types of auditing and other assurance services
(c) Audit of financial statements
(d) Need for performance of audits of financial statements by external
personnel independent of management and owners
(e) International Audit and Assurance Standards Board (IAASB):
(i) The standard setting process
(ii) Significant current assurance issues
(f) The authority of national and international standards
(g) Audit failure:
(i) Principal causes
(ii) Effects
(h) Audit engagements outcomes versus expectations of users of audit
reports
2. The statutory audit:
(a) The scope, purpose and initiators of statutory audits
(b) Objectives, principle activities and value of statutory audit (in assisting
management to reduce risk, improve their internal control systems and
performances)
(c) Regulatory environment within which statutory audits take place
(d) Reasons and mechanisms for the regulation of auditors
(e) Auditor qualification and skills
(f) Statutory regulations governing the appointment, removal and resignation
of auditors
(g) Types of opinion provided in statutory audits
(h) Limitations of statutory audits
3. The non-statutory audits
(a) The scope, purpose and initiators of non-statutory audits
(b) Nature, purpose and scope of assurance engagements including the role
of the external audit and its regulatory and ethical framework
(c) Concepts of accountability, stewardship, agency
(d) Reporting as a means of communication to different stakeholders
(e) Reasons and mechanisms of auditing sole proprietors and partnerships
4. Fair presentation
(a) Presentation of financial statements in accordance with International
Financial Reporting Standards (IFRS)
(b) Fair presentation of information in the financial statements
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5. Setting objectives, obtaining evidence and forming audit opinions
(a) Audit objectives: completeness, accuracy, valuation, existence/
occurrence, cut-off procedures, rights and obligations, presentation and
disclosures
(b) Audit evidence:
(i) Methods of obtaining audit evidence
(ii) Quality
(c) Formation of an audit opinion in given situations
6. Application of substantive and other testing procedures
179
D GROUP AUDITS
E AUDIT FINALISATION
F REPORTING
180
G ETHICAL ISSUES FACING THE AUDITOR
H INTERNAL AUDITING
181
(c) Criminal and civil prosecution in Uganda for fraud cases, and
recommendations
5. Fraud/ Illegal Act:
(a) Categories of frauds:
(i) Corruption
(ii) Asset misappropriation
(iii) Financial statement fraud
(b) Rules of evidence (and how to put up a strong case)
(c) Interviewing
(d) Liaising with legal counsel
(c) Making testimony in court
6. Investigative Procedures:
(a) Planning in forensic audit; setting the audit objectives
(b) Ways of gathering evidence
(c) Use of computer-assisted audit techniques
1 Quality Control
(a) Principles and purpose
(b) Elements of a system of quality control relevant to a given firm
(c) Leadership responsibility for quality control within an audit firm
(d) Quality control procedures
(e) Assessment of whether an engagement has been performed in
accordance with professional standards and whether reports issued are
appropriate in the circumstances
(f) Sources of liability, including professional negligence, arising from an
assurance engagement and their impact upon the conduct of the
engagement
2. Acceptance and continuance of client relationship
(a) Legal, professional and ethical considerations before accepting an
engagement
(b) Issues which underlie the agreement of the scope and terms of an
assurance engagement
(c) Suitable approach for the management of an assurance engagement
(d) Issues and risks for consideration with regard to the acceptance of an
audit engagement
(e) Reasons for changing auditors/professional accountants
(f) Accepting a specified new client/ engagement:
(i) Matters to consider
(ii) Procedures to be undertaken
(g) Responsibilities of management and auditors in an audit of financial
statements
(h) Withdrawal from an engagement
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3. Managing human resources:
(a) Relevant issues, policies and procedures
(b) Recruitment process and staff competence development methods
(c) Assignment of the engagement team
(d) Promoting an internal culture of quality control
(e) Consistency in the quality of engagement performance
4. Engagement performance:
(a) Consistency in the quality of engagement performance; supervision and
review responsibilities
(b) Requirements for sufficient and appropriate technical expertise,
experience in an engagement
(c) Need for consultation in promoting audit quality and application of
professional judgement
(d) Criteria, conduct and documentation of engagement quality control
reviews
5. Ethical requirements
(a) Policies and procedures designed to provide reasonable assurance that the
firm and its personnel:
(i) comply with relevant ethical requirements
(ii) are subjected to independence requirements
(b) ‘Low balling’ and whether or not it impairs independence
6. Marketing professional services:
(a) Process of obtaining audit engagements
(b) Need for guidance in marketing professional services
(c) Extent to which reference to fees may be made in promotional material
(d) Determinants of fee-setting and bases on which fees and commissions
may/or may not be charged for services
(e) Ethical and professional considerations in establishing and negotiating fees
7. Monitoring of:
(a) The assurance function within an organisation
(b) Quality and control through procedures external to the organisation
9B
K OTHER ASSURANCE ENGAGEMENTS
1. Types:
(a) Review engagements
(b) Compilation engagements
(c) Engagement to perform agreed-upon procedures
2. Business Performance Measurement:
(a) Benefits of providing assurance on business performance measures using
appropriate ratios
(b) Relevance of traditional financial and operational performance measures
(c) Assessment of reliability of performance information systems, including
benchmarking
183
(d) Value for money audit:
(i) Approach
(ii) Application
(iii) Benefits
3. System Reliability
(a) The need for information integrity and controls
(b) Demand for reliable and timely reporting
(c) Benefits for providing assurance to management and external users
(d) Procedures for assessing internal control effectiveness
4. IT Audits and Electronic Commerce (E-commerce)
(a) Use of core technologies
(b) Recent trends in IT and their current and potential impact on auditors
(implications of ‘cyber incidents’ and other risks)
(c) Application of IT in automating audit process
(d) Problems that may be encountered in automating the audit process
(e) Effects of E-commerce on the business risk of an entity
(f) Privacy and security of information for transactions and communications
(g) Principles and criteria underlying web assurance
(h) IT security and related considerations
(i) Reliance on embedded controls
(j) Auditing an IT system
5. Social and Environmental Audits:
(a) Importance of policies governing the relationship of an organisation with
its employees, societies and the environment
(b) Difficulties in measuring social and environmental performance
(c) The auditor’s considerations with respect to social and environmental
matters and their impact on companies and their financial statements
(impairments of assets, provisions and contingent liabilities)
(d) Control over social and environmental risks by management and
evaluation by the auditor
(e) Substantive procedures for detecting potential misstatements in respect of
socio-environmental matters
(f) Actions that may be taken by the auditor in situations of non-compliance
with relevant laws and regulations (environmental Acts and health and
safety regulations)
(g) Form and content of an independent verification statement on an
environmental management system and a report to society
1. Money laundering:
(a) Meaning
(b) International efforts at combating money laundering
(c) The scope of criminal offences of money laundering
(d) Protection of professional accountants from criminal and civil liability
(e) Need for ethical guidance on money laundering
184
(f) Accountants’ obligations in the prevention and detection of money
laundering
(g) Importance of customer due diligence
(h) Suspicious transactions and their impact on reporting duties
(i) Elements of anti-money laundering programmes
2. Other Issues
(a) Overcoming problems associated with the audit of small enterprises
(b) International Standards on Auditing and small firms
(c) Dominance of global firms; their influence and impact on the accountancy
profession
(d) Impact of developments in public company oversight on external auditors
(e) Current developments in auditing standards
(i) The need for new and revised standards
(ii) Impact on the conduct of audits
(f) Current legal, ethical, professional and practical matters that affect
accountants, auditors, their employers and the profession
3. Generally Accepted Auditing Standards:
(a) Meaning and objectives
(b) Scope
(c) Comparison with International Standards on Auditing (ISAs)
4. The International Standards of Supreme Audit Institutions (ISSAIs):
(a) Meaning and objectives
(b) Scope and fundamental auditing principles
(c) Comparison of ISSAIs with ISAs
REFERENCES
1. Arens Alvin, Beasley Mark and Elder J Randall (2011): Auditing and Assurance
Services: An Integrated Approach, Prentice Hall, United Kingdom. 14th Edition
2. Chambers Andrew (1991): Computer Auditing, Pearson Education. 3rd Edition
3. Gray Iain and Manson Stuart (2011): The Audit Process: Principles, Practice and
Cases, Cengage Learning EMEA. 5th Edition
4. International Federation of Accountants (2012): Handbook of International
Auditing Assurance and Ethics Pronouncements, Butterworth Law, Revised
Edition
5. Millichamp Alan (2002): Auditing, Continuum International Publishing Group. 8th
Edition
6. Handbook of International Quality Control, Auditing, Review, Other Assurance,
and Related Services Pronouncements, International Accounting Standards
Board, International Accounting Standards Board
185
ANNEX
EXAMINABLE STANDARDS
INTERNATIONAL STANDARDS ON QUALITY CONTROL (ISQC)
1. ISQC 1 Quality Control for Firms that Perform Audits and Reviews of Financial
Statements, and Other Assurance and Related Services Engagements
INTERNATIONAL STANDARDS ON AUDITING (ISA)
2. ISA 200 Overall Objectives of Independent Auditor and the Conduct of an Audit in
Accordance with International Standards of Auditing
3. ISA 210 Agreeing the Terms of Audit Engagements
4. ISA 220 Quality Control for an Audit of Financial Statements
5. ISA 230 Audit Documentation
6. ISA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial
Statements
7. ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements
8. ISA 260 Communication with Those Charged with Governance
9. ISA 265 Communicating Deficiencies in Internal Control to Those Charged with
Governance and Management
10. ISA 300 Planning an Audit of Financial Statements
11. ISA 315 Identifying and Assessing the Risks of Material Misstatement through
Understanding the Entity and Its Environment
12. ISA 320 Materiality in Planning and Performing an Audit
13. ISA 330 The Auditor's Responses to Assessed Risks
14. ISA 402 Audit Considerations Relating to an Entity Using a Service Organisation
15. ISA 450 Evaluation of Misstatements Identified during the Audit
16. ISA 500 Audit Evidence
17. ISA 501 Audit Evidence – Specific Considerations for Selected Items
18. ISA 505 External Confirmations
19. ISA 510 Initial Audit Engagements – Opening Balances
20. ISA 520 Analytical Procedures
21. ISA 530 Audit Sampling
22. ISA 540 Auditing Accounting Estimates, Including Fair Value Accounting Estimates,
and Related Disclosures
23. ISA 550 Related Parties
24. ISA 560 Subsequent Events
25. ISA 570 Going Concern
26. ISA 580 Written Representations
27. ISA 600 Special Considerations-Audits of Group Financial Statements (Including the
Work of Component Auditors)
28. ISA 610 (Revised) Using the Work of Internal Auditors
29. ISA 620 Using the Work of an Auditor’s Expert
30. ISA 700 Forming an Opinion and Reporting on Financial Statements
186
31. ISA 705 Modifications to the Opinion in the Independent Auditor’s Report
32. ISA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the
Independent Auditor’s Report
33. ISA 710 Comparative Information-Corresponding Figures and Comparative Financial
Statements
34. ISA 720 The Auditor’s Responsibilities Relating to Other Information in Documents
Containing Audited Financial Statements
35. ISA 800 Special Considerations-Audits of Financial Statements Prepared in Accordance
with Special Purpose Frameworks
36. ISA 805 Special Considerations-Audits of Single Financial Statements and Specific
Elements, Accounts or Items of a Financial Statement
37. ISA 810 Engagements to Report on Summary Financial Statements
38. IAPN 1000 Special Considerations in Auditing Financial Instruments
187
INTEGRATION OF KNOWLEDGE – PAPER 18
LEARNING OUTCOMES
SYLLABUS
A Levels 1 – 3
188