Corporate Accounting And Auditing (CAA) (Paper-10 ) CMA Inter Group 2

SECTION A: CORPORATE ACCOUNTING [50%]

1. Accounting for Shares and Debentures - 10%

• Issue of Shares, Forfeiture of Shares, Rights Issue, Bonus Issue, Sweat Equity Shares, Employee Stock Option and Stock Purchase Scheme, Buy-back of Shares
• Redemption of Preference Shares, Issue and Redemption of Debentures
• Underwriting of Securities

2. Preparation of the Statement of Profit and Loss and Balance Sheet (As per Schedule III of Companies Act, 2013) - 10%

• Statement of Profit and Loss (as per Division I of Schedule III)
• Balance Sheet (as per Division I of Schedule III)
• An Introduction to Division II of Schedule III

3. Cash Flow Statement - 10%

4. Accounts of Banking, Electricity and Insurance Companies - 10%

5. Accounting Standards - 10%

• Conceptual Framework
• Specified Ind AS with Comparative Provisions under AS
  • Presentation of Financial Statements (Ind AS 1)
  • Inventories (Ind AS 2)
  • Events after the Reporting Period (Ind AS 10)
  • Employee Benefits (Ind AS 19)
  • Earnings per Share (Ind AS 33)
  • Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)

SECTION B: AUDITING [50%]

6. Basic Concepts of Auditing - 10%

• Nature, Scope, Objectives and Significance of Auditing
• Brief Introduction to Auditing Standards
• Audit Engagement, Audit Program, Audit Documentations, Audit Evidence, Audit Note Book
• Audit Risk, Assessment of Audit Risk, Internal Control, Internal Check, Internal Audit - Industry Specific, Interplay between Internal Audit and Statutory Audit, Risk Based Internal Audit, Internal Financial Control and Internal Control over Financial Reporting
• Audit Sampling, Audit Techniques and Analytical Procedure (Including Scrutiny of Trial Balance and Grouping Schedules)
• Application of Technology in Audit and Audit Trail

7. Provisions Relating to Audit under Companies Act, 2013 - 30%

•  Statutory Audit – Auditor’s Eligibility, Qualifications, Disqualifications, Appointment, Resignation, Rotation, Remuneration, Removal, Rights and Duties, Liabilities, Branch Audit and Joint Audit, Role of Audit Committee
•  Cost Audit
•  Secretarial Audit
•  Audit of Various Items of Financial Statements (with Special Emphasis on Audit of Inventory and PPE)
•  Audit Report, Report vs. Certificate, Reporting Requirements under Companies Act, Contents of the Reports and Modifications in the Report (with Coverage of CARO)
•  Report on Internal Financial Control over Financial Reporting
•  National Financial Reporting Authority (NFRA)

8. Auditing of Different Types of Undertakings - 10%

• Audit of Educational Institutions
• Audit of Healthcare Organisations
• Audit of Organisations in Hospitality Sector
• Audit of Banks
• Audit of Co-operative Societies
• Audit of Local Self-Government