Ica Gh Syslabus

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

Enhancement Of Computer Literacy In Primary Students At Central Colleges

1. Beginning of usage of Information and Communication Technology have been re-engineering about all the Fieldss of human life from basic demands like pass oning with friend populating abroad to cardinal demands like instruction, wellness and administration. That is non merely a technological development but besides a societal revolution that enforces the primary pupils, to detect new wonts, advanced ethical motives and production of new life systems, so that to accommodate with planetary alteration in human civilization and life manner. Our instruction system besides to be formulate to run into this construct and to be aligned with this new engineering. Hence, the advanced distribution of Information Communication Technology ( ICT ) for instruction of primary pupils is going compulsive demand since the professionalism is the anchor that could alter the civilization and the society in clip to clip towards create outstanding life status expected by the people. 2. Today, it is highly of import that a primary pupil should be competent with coherency in the country of computing machines and engineering. It is impossible to be successful in today ‘s occupation market and high tech life style, if our primary pupils are failed for seasonably educate every bit early as possible to accommodate the bing demand to this topic. 3. The computing machine literacy is now an indispensable tool that all pupils must be familiar with in order to finish their everyday surveies and concentrating for future occupation demand. Whatever our occupation ; Teacher, Planner, Lawyer, Accountant or Salesperson ; computing machine literacy are compulsory them to win. Primary pupils are besides need to derive certain degree of computing machine literacy in order to finish basic every twenty-four hours skills to confront our future society. In Cardinal Colleges in Sri Lanka most of the primary pupils are cognizant with computing machine surveies but they have to utilize it in a manner to accomplish compulsory consequences need for fall in the future universe and fall in the hereafter community. 4. The usage of the cyberspace installation is extremely required accomplishment for pupils and they are to exhaustively get the hang it decidedly. Computer literacy and Internet are about one ; in the same thing normally one is n't mentioned without the other tagging along. Without the Internet, there would be no manner to immediately happen the name of a celebrated book your favourite author was in five old ages ago. Primary pupils will necessitate to be familiar with the Internet in all types of educational methods whether it is research on any subject or surfing for information. For this purpose primary pupils need to cognize what a hunt engine is and how it works, what a keyword is and how it works, how to open a browser and how to utilize a nexus, etc. The Internet is a immense wealth of information that every pupils should take advantage for gather information accomplishments. There are web sites that will assist primary pupils to happen educational Tourss by posting their ske tch online. Online skills allow primary pupils to larn and portion societal, cultural, environmental facts of other states, people and faiths. Many secondary degree pupils today are now acquiring their degree online in the comfort of their ain places on their ain agenda. It ‘s astonishing how today with a twosome of chinks, every pupil can travel anyplace in the universe in two, three seconds without go forthing their computing machine. 5. Promotion of computing machine literacy is one of the most indispensable countries in instruction. The of import function which it plays is rational, societal, emotional and religious development of kids. The pupils usually use centripetal perceptual experiences to cognize his immediate milieus. It is automatically widens his vision. The computing machine literacy accomplishments of pupils are non a one clip experience. It is a uninterrupted life-time experience. It is accepted that a proper accomplishments of Computer Literacy has to be inculcated and nurtured in the early old ages of age. 6. It must be distinguished as the ability to work with understanding and grasp. In Sri Lanka computing machine is largely a â€Å" Information Communication Technological † accomplishment which is brought about by beastly repeat of a given stimulation together with the appropriate response. It is a affair of some uncertainty whether all kids have acquired the ability to larn in the echt sense, by the clip they have reached school go forthing age. It needs at least four old ages to achieve the computing machine accomplishment and is it sensible to anticipate these kids who drop out after primary degree to prolong that accomplishment afterwards? Computer literacy is a non a terrible complex procedure. It is an mean simple accomplishment which one time learned, can be increased with referral to the Information Technological contented publications.Chapter IIMethodologyPurpose1. This paper will emphasis and analyse why the kids are non skilled in Computer Literacy and for examine the factors which determine computing machine literacy in kids and what stairss have to be taken for the sweetening of computing machine literacy and information technological accomplishments in primary school kids in Central Colleges in Sri Lanka.STATEMENT OF THE PROBLEM2. It is required to analyze of Primary degree pupils of Central Colleges computing machine literacy and the present environment to heighten their capablenesss in computing machine literacy. In this research demand to concentrate on their Computer educational system and clear up the troubles and the to the mechanism that they required to beef up the computing machine literacy, information engineering facets, as sing the future occupation chances that can be gained by primary pupils in Central Colleges Sri Lanka. 3. The inquiry is at present scenario is, the primary school pupils in Central Colleges in Sri Lanka have non been able to get the needed criterion of Computer literacy, and information engineering to heighten their minimal accomplishments required in Computer field. 4. This paper will place and analyse why the Computer Literacy in primary pupils is dwindling, the factors which determine literacy and suggest recommendation for the publicity of mechanism that needs to heighten accomplishments, cognition in primary degree pupils.RESEARCH HYPOTHESIS5. Mechanism will be beef uping to confront the future occupation demand. In this facet is to be achieved in a manner of researching experimental computing machine survey of counsel in preparation with Government educational policies on Information Technology for sweetening of Computer Literacy of primary pupils in Central CollegesScope OF STUDYThe range of this research focused on the primary pupils in Grade 1 to Rate 5, their instructors and principals are to pull out their thoughts by questionnaire and interviews. Besides the research will analyse educational specializers ‘ personal positions on what should be the background environing the primary school kids to advance their Computer literacy. The namelessness of the research worker was maintained by inquiring inquiries from certain group caputs and instructors under the name of a consented person. The intent was to extinguish colored replies which may be given as a consequence of the fact that the inquiries are presented by a known IT teacher. This is besides to look into any differences in response for the same inquiries based on computing machine literacy. This method is adopted as the subject is of sensitive nature and based wholly on single attitudes.METHOD OF DATA COLLECTION7. Data aggregation methods are as follows. a. Primary beginning. ( 1 ) Primary beginning of information were collected by questioning IT educationists and caputs of schools. ( 2 ) Further information aggregation done by a questionnaire prepared for the primary school pupils and their instructors. B. Secondary beginnings. Books, paper articles and web sites used as the secondary beginnings of information.Chapter ORGANIZATIONThe thesis is structured as follows: a. Chapter I Introduction B. Chapter II Methodology Chapter III Computer Literacy of Primary Students in Central Colleges ( 1 ) Computer literacy debut of primary pupils ( 2 ) Present literacy accomplishments and IT environment of primary pupils Chapter IV Weather educational support and the needed counsel and aid will supply to heighten the computing machine literacy How instructors adopt educational method to better computing machine literacy of pupils through policies of educational section. How the other facets on substructure installations given to better on computing machine literacy of primary pupils ( 3 ) Enhancement of Computer literacy and IT Skills of Students I Learning involvements of pupils two Students involvements in cyberspace three College IT Environmentfour Teachers sentiment about Computer literacyChapter V Impact of Computer Literacy for primary pupils at Central Colleges and future Job demand at society ( 1 ) . How the computing machine literacy aid to increase occupation demand for future society ( 2 ) . Increase occupation demands and the computing machine literacy as chief educational facets of demands in primary pupils. Chapter VI Reasons behind the inefficiency of present patterns on computing machine surveies of pupils. Why the basic computing machine demands can non continue the computing machine instruction at Central Colleges Present accomplishments of pupils and personal involvement on computing machine literacy of primary pupils. Education degree of primary pupils in line with present engineering alterations behind computing machine educational systems. Awareness surveies and competence of instructors on freshly introduced package systems and theories on computing machine surveies. Other facets that can be used to increase the computing machine surveies. The malfunction exist in modus operandi and system stableness on computing machine surveies of pupils Advantages and disadvantages of using equal survey hours for addition computing machine literacy. Chapter VI Chapter VII J. Chapter VIIIChapter IIILANGUAGE APTITUDE OF PRIMARY SCHOOL CHILDREN1. Language is a procedure that helps people to show themselves and to do effectual societal relationship among people all over the universe. It is done linguistic communication that people could get information to better their basic demands such as wellness wonts, consciousness, scientific alterations and different types of accomplishments to gain a life. Piaget, the celebrated physiologist believed that the existent key to human rational development, conceptual development, is linguistic communication. Language is the most effectual manner of communicating. The deficiency of linguistic communication ability frequently hinders one ‘s advancement. The linguistic communication aptitude and literacy public presentation of the primary degree indicates the criterions of kids ‘s reading wonts and information accomplishments.LANGUAGE LEARNING OUTCOME IN SRI LANKA2. Sri Lanka has attained the first coevals ins truction aim of supplying widespread entree to primary instruction ( grades 1-5 ) . However one major challenge that the state has to get the better of is the moderate degree of larning accomplishment in linguistic communication proficiency among primary school kids. 3. Harmonizing to recent surveies carried out by NIE and NEREC, University of Colombo merely between 35 to 38 per cent of primary school pupils have achieved standard degree of their female parent lingua ( Annex ‘B ‘ ) . This is a serious restraint to further acquisition, as all subsequent surveies will pull on the kid ‘s female parent lingua capableness. 4. There is a considerable difference in the accomplishment of command degree in their first linguistic communication between urban and rural schools. Harmonizing to the above surveies more than 40 per cent of urban kids achieve command degree in their female parent linguistic communication contrast to below 34 per cent in rural countries. Besides more than 1/3 of students have failed to accomplish standard degree for their female parent linguistic communication. This shows the dwindling of reading wonts and information accomplishments among primary school kids. 5. The regional disparity in accomplishing command degree in first linguistic communication is clearly shown in Table III.I. 41.24 per cent of Western state Grade 5 pupils achieve command degree in contrast to 42.40 per centum in Uva state pupils have failed to accomplish the needed criterion degree. This shows how the handiness of physical and human resources affects public presentation. Mastery = 80 % – 100 % Non Mastery = 0 – 59 % Table III.I – Achieving command degrees in literacy in Grade 5 – by provincial degrees Source – Performance of Grade 5 pupils in literacy and numeracy – NIELITERACY SKILLS OF CHILDREN5. Harmonizing to the research undertaking on development of linguistic communication accomplishments among primary school kids carried out by NLDC ( Annex ‘C ‘ ) , the overall public presentation of Grade 2 students is satisfactory. There is barely any disparity between territories or among school types. 6. The Grade 4 appraisal revealed disparity in public presentation among the territories and between school types. AAVG degree schools show highest public presentation while SS degree schools show hapless public presentation. These fluctuations in public presentation pin-point the inequalities in distribution of acquisition and instruction installations for the school topics, peculiarly in linguistic communication accomplishments. 7. More than half of the figure of students in the sample have non been able to achieve the expected accomplishment degree for the vocabulary & A ; synonyms/ opposite word, spelling and grammatical authorship ability and originative squeeze accomplishments for the Grade, after four old ages of schooling. This suggests that they are enduring from deficiency of reading wonts.Chapter IVReading INTERESTS AND INFORMATION SKILLS OF CHILDRENReading INTERESTS OF CHILDREN1. There is no peculiar age at which a kid should really get down the procedure of larning to read. It should appeal to existent activity, to self-generated work based upon personal demand and involvement. Children have an innate desire to cognize about their milieus. As the kid develops larning through centripetal perceptual experience, he becomes more and more funny to understand his environment ; what has happened and what is go oning are his involvements. 2. Children may come to understand an of import portion of their universe through the experience of reading. They start to larn about reading in a natural and incidental manner. If a book satisfies child ‘s demands, he will get down reading it for pleasance. A kid begins familiarity with a book by looking at images. If the book catches his involvement, he returns to the book once more. Besides he is being exposed to the printed word in the environment such as coach boards, assorted postings on the main road, route marks, labels of goods in the market, advertizements on telecasting and newspapers. The kid sees tonss of words in his environment and attempts to hold on them meaningfully. Therefore, most kids have a signifier of consciousness of the printed word. 3. Harmonizing to the survey it has clearly shown that kids are interested in books, magazines, kids ‘s documents and they have a thirst for information, cognition and communicating. This built-in desire and involvement found in kids has to be harnessed to better their reading wonts and information accomplishments. As such it is the responsibility and duty of the parent, the instructor and the governments to take the full usage of it. Table IV.I would wish to pass my Table IV.II would wish to pass my leisure clip aˆÂ ¦aˆÂ ¦.- Grade 2 leisure clip aˆÂ ¦aˆÂ ¦.- Grade 4CHILDREN ‘S INTERESTS IN MEDIA4. The child gets motivated to read when he hears narratives or when an grownup reads aloud a narrative to him. Today the kid could acquire this type of satisfaction through the mass media. When kids watch telecasting or listen to the wireless, those programmes which are meant for kids create consciousness and demand for reading and they could be made usage of to develop reading wonts and information accomplishments. 5. As per the survey it is revealed that Both Grade 2 and 4 kids ‘s best telecasting programme is cartoon narratives. Most of kids like to listen to vocals and narratives by wireless. These involvements could be made usage of in varied ways to develop reading wonts and information accomplishments in the schoolroom and place. Table IV.V – Interest on Television Table IV.VI – Interest on Television Grade 2 Grade 4 Table IV.V – Interest on Radio Table IV.VI – Interest on Radio Grade 2 Grade 4Table IV.I – Grade 2 Table IV.II – Grade 4Children ‘s involvements on kids ‘s paper6. Above two tabular arraies indicate that a really high per centum of kids in all three territories read kids ‘s documents. It was found that this is a wont developed by the good instructors of those schools by interchanging documents within the category, when those parents who could afford to purchase documents for their kids convey them to school. This high per centum suggests that if reading stuffs are made available to kids, and so reading wonts and information accomplishments of primary school kids could be decidedly improved.Chapter VReading AND CHILDHOOD ENVIRONMENT1. As a foundation for the development of reading wonts and information accomplishments, the four linguistic communication accomplishments listening, speech production, composing and reading has to be developed in the schoolroom and the place. The kid should be able to read with easiness and installation in order to develop reading as a wont. The first necessity for this is to derive ability to place letters and words. Then the kid has to read words and sentences to deduce significance and addition cognition, information etc. This is a complex procedure. 2. Reading accomplishments could develop merely if reading stuffs are available. Non handiness of suited reading stuffs create serious restrictions in developing reading wonts. Hence the laying of foundation on a sound terms is the duty of the parent, the instructor and the school.SCHOOL BACKGROUND3. A teaching-learning state of affairs is significantly affected by the handiness of edifice with sufficient figure of schoolrooms, siting adjustment and furniture. Primary subdivisions of some popular urban schools have more than 50 students in one schoolroom, which could suit merely 40. This state of affairs has resulted adversely. Neither the instructor nor the student could travel approximately freely to give and have single attending. 4. The state of affairs is worse in some schools where the categories are conducted in unpartitioned unfastened halls. In such schools both learning and acquisition has become plodding and some instructors are force to carry on categories under the trees in the garden. 5. The instructor is the cardinal factor in bettering reading accomplishments and wonts in students when resources are sub criterion. In those schools the instructor is the lone beginning of larning. Out of the 25 instructors who supplied information through the questionnaire, 21 are primary instruction trained and 3 are trained alumnuss. However the response of caput of the schools revealed that there are quite figure of instructors who are non trained. The criterion of instruction doubtless recedes when instructors are non trained for the profession. 6. Out of 15 schools entirely primary instruction is given in merely 5 schools. In those schools primary instruction is wholly managed by a Deputy Head. Of other 8 school primary caputs three are trained five are alumnuss with station sheepskin. Academic professional position of the caput of the school, his attitude toward bettering the female parent lingua, committedness to his profession, his support in supplying reading stuffs and advancing reading wonts is of significance in this context. 7. Out of 15 schools of the sample five schools do non posses libraries providing to the reading demands of primary school kids. Out of the 10 school libraries three of them have 100 – 500 books. Three school libraries have less than 1000 books and two National schools in Colombo territory and one National school in each other two territories have a wealth of 3000 or more books. The two schools in the sample which have a few books received as a contribution complained that there are no storage installations available for them even to maintain them safely. Out of the 15 schools 7 schools do non purchase even a individual newspaper. In the average clip out of remainder 8 schools merely 5 schools buy kids ‘s paper for the primary school kids. 8. Except for the national schools bibliothecs trained for the occupation are non available in the remainder of the schools. In most of these schools a instructor from the staff helps in the library. In three schools a miss is employed for the work in the library paying a nominal fee. 9. This clearly displays the disparity between schools with sub standard resources and schools with above mean standard resources. This fact substantiates the position presented earlier that the socio economic degree at place and school affect achievement degree of kids.TEACHERS OPINION ABOUT Reading10. The response presented by the 25 instructors of the schools of the sample revealed that kids are truly interested in reading and instructors do their best to advance reading by pull offing schoolroom libraries under hard state of affairss. Each kid in the schoolroom brings a narrative book at the beginning of the twelvemonth. Sometimes instructors give the names of the list of narrative books. Besides those who can afford to purchase kids ‘s paper conveying them to the category. These books and documents are exchanged among the students. There by instructors help kids to develop reading wonts. Alternatively in some schools instructors get a few books, approximately 30 from the s econdary school library and administer them among kids one time a month or so. 11. Some instructors are of the sentiment that the primary course of studies contain far excessively much stuff for the twelvemonth that they can non finish and it is hard for them to concentrate on developing the reading wonts separately. There should be truth in the content of the course of study to provide single demands. Besides they pointed out that Grade 2 and Grade 4 even Grade 5 text books do non actuate kids to read as the narratives do non rouse their feeling and wonder. Narratives do non make chances for kids to believe. Therefore the instructors say that kids automatically read by bosom, even if they can non place letters, words or significance of what they pretend to read. Therefore the governments concerned have to be more cautious in the choice and rating course of study and text book content. 12. Teachers besides revealed that in add-on to the scarceness of reading stuff, kids of sub criterion and mean type schools suffer from other lacks such as socio economic conditions at place, big households, parents non been educated, their inability to recognize the importance of reading. 13. Method of learning dramas an of import function in larning state of affairs. What was observed was instructors are more concerned with covering the course of study, simply utilizing general methods of learning without thought of particular and advanced techniques and single differences of scholars. There is barely any system of measuring reading. Teachers do non look to set about feedback programmes and maintain record of it. Lack of learning AIDSs was observed in most of the schools and instructors depend merely on ‘Talk and Chalk ‘ .Home BACKGROUND14. Research done in western states has revealed that success in reading had been achieved by kids who were provided with plentifulness of chances for reading and entree to books. Avid readers had narratives read or told to them on a regular basis by parents or expansive parents. 15. Children read anything and everything they get hold of as they are interested in reading. If is hence the responsibility of the grownups to choose suited books for kids, as they can non know apart between suited books and books non suited for them and measure them. 16. It is assumed that when household size is big, kids do non acquire equal demand satisfaction enjoyed by kids of little households of the same income degree. In the questionnaire the household size of students was divided in to two classs. a. Class 1 – Number of household members four or less B. Class 2 – Number of household members five or more Table V.I – Bespeaking household size 17. Harmonizing to the tabular array V.I in Colombo territory smaller sized households per centum is higher than other two territories. This factor seemed to hold affected the achievement public presentation of kids, as it is evident from the highest ML per centum in Colombo territory. 18. Parental support in providing reading stuffs such as books, documents and magazines doubtless helped development of kids ‘s reading wonts and information accomplishments. This in bend is conditioned by the socio economic position of parents. Table V.II & A ; Table V.III indicate the figure of books Grade 2 and Grade 4 kids posses is quite eloquent of this factor. Table V.II – No. of books kids posses for auxiliary reading – Grade 2 Table V.III – No. of books kids posses for auxiliary reading – Grade 4 19. The tabular array V.II shows 10 per cent of Grade 2 students in Colombo territory have more than 10 books for excess reading while other two territories kids have below 10 books. Besides the tabular array V.III indicates 54 per cent of Grade 4 students in Colombo territory have more than 10 books for excess reading while other two territories it is below by 36 per cent. This factor besides seemed to hold affected the achievement public presentation of kids, as it is evident from the highest ML per centum in Colombo territory. 20. The names of books read by students indicate that they read whatever those come in their manner, they have no pick. They read anything and everything they get hold of as they are interested in reading. It is hence, the responsibility of the grownups to choose suited books for kids as they can non know apart between suited books and books non suited for them and measure them. Daily%Lord's daies%Sometimes%Never%Kandy 12.9 40.5 35.3 11.2 Kalutara 19.5 34.5 32.7 13.3 Capital of sri lanka 22.4 41.3 28.4 7.8 Entire % 18.2 38.8 32.2 10.7 Table V.IV – Houses that bargain newspapers – Grade 4 21. 10.7 per cent of the overall sample of kids ‘s parents do non purchase a newspaper. However 38.8 per cent of the sample bargain Sunday newspapers. This may be due to the fact that other signifier of mass media like the telecasting and wireless are being sought after for enjoyment and acquiring information. Thereby a good chance that the parents could offer in actuating the kid to develop his wont of reading is neglected. It is merely a really hapless per centum of parents buy newspapers daily. Even in Colombo territory 22.4 per cent of the sample merely buy newspapers daily. It may hold been caused by two factors. It may be due to miss of money or of clip to read documents. Whatever it is, if the parents could afford to purchase newspapers day-to-day it would be a motive for the kid to read and better their information accomplishments.Chapter VISUMMARY OF FINDINGS1. More than 1/3 of primary school students have failed to accomplish standard degree for their female parent li nguistic communication. 2. Most of Grade 2 students have acquired the linguistic communication skills satisfactorily. 3. a. More than 50 per cent of students have non acquired the linguistic communication accomplishments expected for the class, at the terminal of the twelvemonth. B. Performance of Grade 4 students in vocabulary & A ; synonyms/ opposite word, spelling and grammatical authorship ability and originative squeeze accomplishments are really hapless. 4. There is a pronounced disparity in accomplishment of linguistic communication accomplishments among territories and between school types. 5. There is no just proviso of physical and human resources available in schools as yet for the publicity of reading wonts and information accomplishments. 6. Most of the primary schools of the sample do non posses libraries. Lack of suited reading stuffs, bibliothecs, varied sorts of books, a big measure of books of quality to provide to change demands and involvements of primary kids are found to be obstructions which stand in the manner of development of reading wonts and information accomplishments. 7. The course of study, text books and methods of learning do non look to accommodate the changed society of the modern twenty-four hours and it will non supply any encouragement to kids for the betterment of reading wonts. 8. The parental support and encouragement at place is non plenty for the kids to develop reading wonts and information accomplishments. 9. Family size the and the socio economic position of parents affect to the development of reading wonts and information accomplishments of kids. 10. Childs are interested in books, magazines, kids ‘s documents and they have a thirst for information, cognition and communicating.Chapter VIIDecision1. Reading is one of the most of import constituents of linguistic communication. It is a basic tool topic particularly in primary school. Reading helps to larn all the other countries of the school course of study and provides critical agencies of larning. Reading is believed as a procedure of geting information, having a massage from a print in a meaningful manner. 2. Reading is of greatest significance to the educationalist because it is their duty to steer the kid to develop his entire personality for the public assistance of the single kid and for the public assistance of the full society and besides because it is the right of the kid to be literate. It is of import for kids to read good books and develop their reading wonts and information accomplishments, in order to turn physically and mentally. Good reading wonts are necessary for a healthy rational growing. 3. It is a affair of some uncertainty whether all kids have acquired the ability to read in the echt sense, by the clip they have reached school go forthing age. Teacher influence, place background and book proviso hold the key to an betterment in reading. The chief aim of transporting out this survey was to happen out the ground for lack in reading wonts and information accomplishments among primary school kids. The quality of reading wonts and information accomplishments of anyone depends on many factors. Cardinal factors among those are ability to read with easiness and installation, comprehended what is read and infers information. Besides achievement degree of reading wonts and information accomplishments depend on the ability to construe either in written or unwritten signifier when necessary state of affairs arise. 4. During this research it has been observed that there is no just proviso of physical and human resources in the schools to develop reading wonts and information accomplishments in primary school kids. It is besides revealed that this of import duty has non been undertaken earnestly and satisfactorily either by the parents or by the instructors and governments concerned though the kids have clearly shown that they are like to be engaged in excess reading. 5. This survey suggests that there should be quality and measure betterment in kids ‘s reading wonts in Sri Lanka. Besides there should be better methods of choosing books for kids and better technique to administer them, within primary school kids. Further it suggests to supply sufficient physical and human resources to the primary schools to develop kids ‘s reading wonts and information accomplishments.Chapter VIIIRECOMMENDATIONS AND SUGGESTIONSRECOMMENDATIONS FOR EDUCATION AUTHORITIES1. About 50 per cent of the schools of the sample suffer due to miss of physical and human resources. Equitable proviso of resources to all primary schools in the inland is an impossible undertaking. Yet, action has to be taken to relieve these disagreements by providing basic necessities, such as separate categories, libraries and reading suites, 500 – 1000 kids ‘s books a few magazines and kids ‘s documents, storage installations and trained bibliothecs. Renovating pri mary school edifices at least one time a twelvemonth and besides maintain the ambiance of the school pleasant and attractive to kids is recommended. 2. Principles as leaders have to educate the parents and acquire their aid for the public assistance of the school. Besides could seek community aid for readying of learning AIDSs, acquiring reading stuffs as contributions from the flush etc. Leadership and committedness of principals is critical importance for the betterment of kids ‘s instruction. Therefore caput of the schools have to be selected carefully and they should be given a preparation how to develop primary kids ‘s instruction by bettering reading wonts.SUGGESTIONS FOR PARENTS AND TEACHERS3. Developing the love for good reading is one of the greatest benefits that we can supply for kids. In order to enrich the reading environment of kids, reading wonts should make the people in rural countries. We have to advance reading among them. Therefore engagement of people in the community should be promote in reading publicity activities, because first and first parents have to understand how of import it is for kids to read good books and develop a reading wont. 4. Parents ‘ consciousness towards reading dramas an of import function in advancing reading by making a reading household environment. The parents should recognize that reading must get down from a really immature age and the instructors should steer them. Mothers can assist a great trade in advancing reading wonts by narrating narratives, singing rimes, vocals, verse forms etc, while feeding, dressing their kids. 5. Those who are able can read books to kids who can non read letters. This will make merely an involvement in kids to read. When kids can read female parents should listen to their reading and praise them. Then kids will experience proud of them and go fond of reading and accordingly parents would purchase reading stuffs whenever they could. 6. The school is the centre in advancing reading wonts and information accomplishments among kids. The instructor is the cardinal factor who integrates all activities of kids ‘s acquisition. One possible agencies of advancing reading wont by the instructor is to form a category library or a book corner exposing kids to a richer reading environment by supplying more printed stuffs to accommodate the class degree. This could be done with the cooperation of parents. 7. The instructor should form a free reading activity one time a hebdomad. She could present such points as marionette shows, games, competitions, dramas, play, narrative relation and other activities related to linguistic communication development and reading involvements. 8. The instructors besides must try to associate reading to every activity of the school twenty-four hours. This is possible in the primary school as it offers a conductive environment for integrating survey accomplishments and reading development work into the regular course of study. Because one instructor is normally responsible for most countries of the course of study, the instructor could easy set her normal schoolroom activities for reading publicity.MASS MEDIA AND READING HABITS DEVELOPMENT9. Using mass media is another avenue for making an involvement in reading. For illustration holding interesting book reappraisal columns in newspapers, treatments on books over the wireless and telecasting and besides treatments, kids ‘s programmes etc. These activities would help in circulating information to the multitudes about value of books and reading on a wider graduated table. However sometimes parental neglect force kids to acquire addicted to watching the telecasting and it would be an obstruction for reading wont development. 10. Therefore parents should ; a. Curtail telecasting screening clip and offer kids other interesting activities as options. B. They should watch good programmes with kids and discourse their good facets. c. Talk about force shown on telecasting and show disapproval of aggressive behaviour and point out alternate ways of confronting jobs and see that they watch less force.Distribution OF QUALITY BOOKS11. It has been found that still there are lacks in the production of quality books for primary school kids. Besides there are lacks in appropriate and just distribution of books, both bibliothecs and instructor replacements etc. Quick remedial action has to be taken to extinguish these defects, for the betterment of reading wonts among primary school kids. 12. There is a deficiency of clear apprehension among authors and publishing houses, of the aim of bring forthing kids ‘s books and how it should be directed. Therefore stairss have to be taken to bring forth quality books, which become more originative and awaken kid ‘s imaginativeness and wonder so that kids begin to read for pleasance, which is a stepping-stone for life long involvement in reading. 13. Distribution of books has to be carried out in such a manner that many kids are benefited. It could be done through public libraries, provincial libraries, community libraries, school libraries and so away. It is indispensable that all primary schools in the island be provided with a library equipped with a scope of books, kids ‘ paper and suited magazines and trained bibliothecs. Thus publicity of better library installations all over the state is envisaged. 14. Library system has to be recognized in such a manner that even a class 2 student could do usage of the library. The kids should be taught how to happen a book, what type of book to choose etc. The instructor should look into the kids ‘s reading wont by inquiring inquiries about the inside informations of books read. These manner kids could be motivated to read, making a life long involvement for reading. 15. Another demand for the twenty-four hours is altering of the library system in conformity with the altering society. Librarians could play a important function in advancing reading wonts among kids with dedication and devotedness. These Public and Provincial libraries can form interesting activities such as ; the narrative hr, quiz competition, book nines, book carnivals, reading cantonments, reading hebdomads at regional, provincial and national degrees with the co-operation of high bookmans.

Intel Branding Strategy Case

The University of IOWA Tipple School of Management IMBA Program – Intake 6 Prepared By Group 2: Kimmy Wong Diana Hung Mike Yeh Ken Wan Date: 18/07/2009 1. Was the Intel Inside campaign worth it ? What were its strengths and weaknesses? The unfavorable judgment against Intel â€Å"386† trademark in 1991 indicated that any competitor could market its product using the same marks, numerical sequencing, used by Intel. To differentiate from competitors and solve the problem of market confusion among the product offerings, Intel developed an alternative branding strategy by focusing on building the company’s brand image instead of product-based brand strategy. Under the new branding strategy, Intel was established as a brand, a reliable and premium brand, ably transferring the equity of â€Å"386† and â€Å"486† microprocessor to Intel, the company and to distinguish Intel products and to communicate the depth of Intel as a corporation with respect to its competitors as well. To boost the awareness of Intel’s brand name and strong differentiation, the company employed a series promotion campaigns to reinforce the main message of â€Å"Intel Side† aggressively after loss of trademark. Detail of their promotion campaigns are as under: [pic] Intel campaign has successfully introduced the microprocessor to the market and consumers can identify its microprocessor technology. Its success laid the groundwork for moving into next generation. Through repeat impressed promotional message be certain that consumer have Intel technology on the inside. As Intel is the leader and the best microprocessor supplier. In Intel Inside campaign, the company applied â€Å"push† strategy to seek support of the OEMs by encouraging them using Intel microprocessor in manufacturing their product and including the Intel Inside logo in their print ads. Under this strategy, Intel found much infusive reaction from OEMs, created a great awareness of â€Å"Intel Inside† logo and driven positive perception and favorable association towards Intel brand simultaneously. With the help of the program, Intel cut the utter confusion clones bring to the marketplace. In turn, strong brand image and premium status has been built successfully. Moreover, the campaign powerfully in reinforcing on two key associations: â€Å"safety† and â€Å"technology†- whenever and wherever consumers saw the Intel logo and also created a brand image for products that fall under the Intel Side umbrella. At the same time, a â€Å"pull† effect was generated on the consumer and presented a very persuasive argument for OEM to use its product. In turn, it built a remarkable brand value to Intel, the company and its stakeholders as well. This campaign had demolished the negative perception of Intel and well-reposition Intel as a premium brand with promising of â€Å"Safety† and â€Å"Technology†. The new established brand successfully differentiate its product from competitors and help Intel move the market forward into new generations of microprocessor and to leverage its advantage and equity to its new generation of technologies. Frankly, the campaign is worth it since Intel got more than 700 OEMs to signed for the program and induce the first and second tier big OEMs to join co-operation program as well via the â€Å"pull† effect successfully. Consumer research indicated that most viewers of the TV ad remembered the Intel name instead of the product. The Intel, on the other hand, proved much more successful in educating the consumer on the specific product attributes associated with the Intel processor and created a favorable association and positive perception for consumers that they look for Intel inside their PC when making selection. In turn, a synergy effect has been well created for its brand Intel, the company and their customers till today. With the help of the program, Intel’s brand image is indeed associated with power, reliable, affordability, compatibility, technology and experience globally till today. Again, it is an effective campaign which generated lot of awareness for Intel and made the company and its chip program newsworthy in the eyes of the general and business press, and it helps build some creditability and enhancement to the OEMs’ message in the ad as well. Intel is being recognized as the technology leader which has the strongest image on quality, compatibility attributes and became more familiar, popular and delivered a quality message in the world. OEMs benefited from the campaign that their products become a quality product because of Intel chip inside. The Intel brand is one of the top ten known-brands in the world. You can credit these to the Intel Inside program. However, not all the OEMs, especially the first and second tier, were agreed and appreciated with such cooperation program would be greatly affect the penetration of Intel in the market and affect their market share. Moreover, rebate program which offered 30% -50% of rebate to the OEMs customer, incurred heavy cost to execute, caused huge marketing expenses and lower the profit in turn if program fail. Since brand equity can be eroded over time but can be enhanced by marketing actions. We concern huge of expenses has to be spent in marketing on continuous and regular basis for reinforcement of the brand and repeat reminding the customers of the brand. If success, it will create synergies in the brand and return to the company. If fail, on the other hand, it will create a burden to the company. 2. Evaluate the Pentium family of processors. Did Intel make the right decision by extending the name through the Pentium 4 processor? Should the company consider changing the name of the next processor in the Pentium line? Intel planned to introduce the next generation processor, code name â€Å"P5† sometime after the fall of 1992. Given the success of the Intel Inside campaign, it signals any branding strategy developed for the next generation, e. g. P5, would link with the Intel Inside program. In the meanwhile, Intel had leant an experience from Cyrix’s case in March 1992 which had caused a negative influence on its branding strategy. This painful lesson significantly influence Intel management concern the name strategy and as a force driven to review the possibility of altering the chip’s name instead of using 586. Recognized naming process as a major strategic move, Carter took great care by appointed Karen to manage it prudently. Intel conducted extensive search and employee contest for having the right name which is trademarkable and linguistically correct for its 5th generation of microprocessor. Intel developed a series of presentations to keep customers informed of the naming process and product introduction as way of asking for help and understanding before launching but without disclosing the actual name. Intel announced, in October 1992, its fifth generation microprocessor was named â€Å"Pentium† and would begin shipping production version in early 1993. Intel did great job in the naming strategy since â€Å"the name suggest an ingredient and the â€Å"Pent† of Pentium from Greek meaning five, imply the new chip is fifth generation of the family. The â€Å"ium† was added to make the chip sound like a fundamental element. † Absolutely, the name closely linked to Intel in which completely new with some generational concept has been rooted and have a positive association can be worked on global basis. It fully supports Intel’s brand equity till today as well. In addition, Intel conducted a profitable investment in advertising by spending a huge promotion campaign to achieve name recognition as well as acquire high level of awareness and favorable association for the Pentium processor. Intel had rewarded from what it did. In the meantime, the marketing launched a full scale effort to ensure the Pentium name quickly adopted into everyday industry vernacular. Intel’s PR department also phoned all the leading individuals who wrote about the industry to let them know the new name. They sent the author letter correcting the error if they found anyone using â€Å"586† or â€Å"P5†. In return, it was over 90% of press mentions used Pentium instead of â€Å"586†. Moreover, the Pentium processor had been recognized by PC users as a valuable ingredient since then. Intel management understood â€Å"solid position cannot be built on empty promise†. Thus, the company delivery its promise through its strongest product attributes, as under, which highly appeal to the targeted customers and the public as well: i) More than twice as fast as the Intel486 processor; i) With over three million transitors and high MHz offer high speed; iii) Support graphical user interface; iv) Support PC, workstation manufacturers to server and workstation lines; v) Offer power and technology to allow PC manufacturer to head-on address the traditional mini and mainframe market; vi) Made it easier to build the Pentium processor into multi-processor machines vii) The chip would the key to multi-platform, client-server architecture In support of the â€Å"Pentium†, Intel skillfully introduced aggressive â€Å"Technology briefing† campaign to build its brand equity and reinforce its technology leader position, a consumer-styling advertising before available for sale, in the print ad with 4 pages to educate and create demand as well as position the Pentium at the elitist of the market and further reinforce the brand awareness and its powerful features associated with the brand as well. In fact, Intel had made the right decision by extending the name through the Pentium processor. Through this extending, Intel can leverage and transfer its advantages in the valuable brand, in terms of positive perception, favorable association and strong brand equity, to this generation of â€Å"Pentium†. Clearly, it is a main ladder laid for the success of the Pentium. By the way, it created an excellent opportunity for the company moving the Pentium to achieve another climax in the new age. With the experience of i386, Intel also concern the name â€Å"Pentium† and made it protectable legally and by a set of internal and external guidelines from Intel on usage of the name as well. Through skillful extending together with the support of extensive well planned promotion efforts, cautious branding strategy and the huge advertising investment, the premium brand image and position of Intel Pentium has been successfully created and conveyed the positive attributes and preference as well as the favorable association with quality, state-of-art technology, software compatibility and performance which is the OEMs customers wanted to be associated with as well. Obviously, consumer looked for the Intel symbol in making their personal computer selection as a pull effect that adds both intangible (brand equity) and tangible (sales) value to Intel. Furthermore, following the announcement of the Pentium, Intel stopped all the speculation that had surrounded the name since trademark ruling in 1991. Regardless of the numerous debates over Intel’s branding strategy, Intel really did a great job by extending the name and applying the â€Å"branding ingredient† strategy to its new generation of technology. In 1993, Intel had been rated as the third most valuable brand, behind Marlboro and Coco-Cola, with an estimated worth of $17. 8 billion. It signals Intel is being recognized as an undisputed technology leader in which the brand had strongest image on quality and compatibility attributes. Moreover, what they had paid on the promotion now yielding the return through its huge sales of the Pentium chip, which was rising to 640,000 in 1994 from 80,000 in 1993 and further more to 2 million in 1995 and had continuously increased in 1996. It brings a sound return to the company and its stakeholders as well. Given the efforts in building and gaining the brand equity for Pentium, we don’t think it is the right time for Intel to change the name of the next processor in the Pentium line again. Since the customers had just familiar with the name and a favorable perception and association have been well connected the Pentium. Further change will cause confusion to the public within a short period of time. On the other hand, the company might use the number following the name Pentium. For example, Intel may use Pentium I, Pentium II, Pentium III†¦ as a clear indication for the new generation of technology instead of change the name frequently. Beside, staying in Pentium may also take this excellent opportunity to make use of its brand awareness, favorable association and valued brand equity inherent in the name â€Å"Pentium† leverage and transfer to its next generation as well. However, we understand that the innovation and change are necessary and crucial especially in this fast changing high technology and highly competitive world. We have reserved the right to leave the room for that change may happen sometime after few generations so as to better cope with actual changing market arena since there is still room for continue to improve on its branding strategy given surviving in such ever changing world.. 3. Should Intel adopt its Intel Inside campaign for use with its non-PC processor products? What other marketing strategies might the company employ? The Intel Inside program was widely regarded as a success and Intel became a lightning rod for this electronics revolution and paving the way for the computer to become more commonplace in the home and in business. While the Intel Inside Program continues to evolve, it will remain true to its heritage of promoting: â€Å"technology leadership,† â€Å"quality† and â€Å"reliability. † These features will be as important to online users and high-end server buyers today. The brand with an estimated worth of $17. 8 billion and expect to increase in the years to come. Intel recognized that they are in the ever changing global environment and planned to broaden its focus on other non-PC processor products, e. g. fax modems, LAN administration software etc. This is Intel to broaden its product profolio into different categories from its traditional processors and it is a new challenge for the company as well. In fact, the â€Å"Intel Inside† campaign focused solely on the company's microprocessors, such as its popular Pentium line of chips. When Intel broadens its focus to other platforms–not just the microprocessor, the new campaign and new logo is need for better reflecting this change. This will help aligning the brand strategy with its platform strategy. As they evolve as a company, it makes sense to evolve the brand supporting with the new compaign. Thus, retiring the â€Å"Intel Inside† campaign by redesigning a unique marketing program to launch its extension, which may better reflecting its product attributes, might be a wise decision and a drive for the company to leap forward into a new technological age. In the meanwhile, the company can take the leverage advantages heritage from the success of the previous program transferring to these non-pc processor products through the branding extension. Since successful brand extension occurs when the parent brand is seen as having favorable association and there is the perception of fit between parent brand and extension product. Given the favorable, positive and unique associations of the Intel brand to the mind of consumers, we believe the Intel brand name may offer many potential benefits in this extension and it would continue to receive its success as previous as well. This is also an excellent opportunity for the company to identify new and completed different way to use the brand at full potential. However, the success of the new program is highly depending on the marketing efforts, a unique and innovative marketing program as well as with huge investment projected in long term view in the new campaign in order to differentiate from its competitor. Instead of only focusing in microprocessor computer industry, we highly recommend the company should broaden its product range into other potential industry, such as, communication, household appliance industry and entertainment communication etc. and to widen its products in the existing profolio for capturing the potential heritage in the brand for consumer’s choice. Given its leading position in the world, we believe Intel can negotiate with big communication corporations, household appliance companies like Samsung, Sharp, Philips, Panasonic for different profitable co-operation or membership programs. It will be interesting to see if Intel’s strength in the traditional chip sector can translate to the increasing imp ortant mobile field. Intel may partner with first tier of the communication companies, this collaboration could lead to more innovation from the two companies and building products that the two companies can get out ahead of the competition on the emerging segment of mobile and entertainment devices or others etc. The growing importance of the Internet and webpage, E co-operation strategy with the main search engines can be considered to promote its product and its new technology as support to its new campaign to raise its awareness of the new product line. 4. What do you think of Intel’s aggressive expansion away from its core microprocessor business? What recommendations would you make for the future? It is a global trend which creates a pull and push effect for Intel to broaden its focus to entire platforms not just the microprocessor in such highly competitive arena. To continue build up its brand equity, maintaining its leading position and fully utilization of its technological potential and advantages, it is a must for Intel to act in this way respond quickly and deliver a product portfolio that meets the needs of the changing market. It is a long term planning for bring Intel move to other potential business and in more globalize way and stabilize its leader position in this diversification path. In fact, instead of only focusing in microprocessor computer industry, the company now broadens its product range into other industry, such as, communication, household appliance industry and entertainment communication etc. Given its leading position in the world, we believe Intel can negotiate with big communication corporations, household appliance companies like Samsung, Sharp, Philips, Panasonic for different profitable co-operation or membership programs. It will be interesting to see if Intel’s strength in the traditional chip sector can translate to the increasing important broaden field. Intel should boarder its brand name and create sub-brand to allow widen product category development. It should emphasize information about the extension rather than reminder about the Intel Inside brand. To be a house of brand, collecting different high technology product brand name, even if one of the product was not doing well, this would not affect their successful brand image. Most of the improvements come from Asia, such as the increasing present of technology from China corporate present threat to Intel’s global business in certain extent. However, the company reducing its threat and increasing its opportunity by vertical or horizontal integration or acquisition of its competitors or channel members etc. For decades, Intel has developed products, technologies and initiatives for the advancement and betterment of its customers. It has invented groundbreaking creations that truly define the word ‘technology’, and the proof is the Intel logo. Intel’s broadening strategy is also an indication of the company’s mission to ‘drive the next leap ahead – in technology, education, social responsibility, manufacturing and more – to continuously challenge the status quo’. ———————– CONFIDENTIAL . . . . . .. . . . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Intel ® Corporation Brand Management . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . .