ICWAI (ICAI) : Syllabus - Foundation Course
Paper 1 : Organisation and Management Fundamentals (One Paper: 3 hours:
100 marks)
Section I - Organisation (30 marks)
- Functional areas of organisation - different organisation
structures, operations of main functional areas of business, the organisation
and the activities of different functions. Formal and informal organisation
– principles of organisation, criteria for grouping activities.
Schools of organisation theory - classical, behavioural and
systems, current trends and approaches, behaviour in organisation, role
of behavioural science.
Organisational management - objectives (missions, goals and targets),
conflict between the objectives; appropriate strategy formulation; the
determinants of culture – the different models available for categorising
cultures; different models of organisational management available to
achieve goal congruence.
Section II - Management (70 marks)
-
Human resource management - human resource plan; the human issues
relating to recruitment, dismissal, retirement and redundancy. Models
of human behaviour and motivation and their application (e.g. Taylor,
McGregor, Maslow, Hertzberg, etc); training, development and design
of reward system.
- Management of relationship - process of management covering
planning, organising, staffing, directing, motivating, communicating
and control; the concepts of power, authority, responsibility and delegation;
the characteristics of leaders and managers; management style theories,
contingency approach.
Theories of group development, behaviour and roles. The sources of conflict
in organisations and the ways in which the conflict can be managed.
- Management of change - The stages in the process of management
change, approaches to the management of organisational development and
major cultural and structural change; the importance of managing critical
period of change and the ways in which these periods can be managed
effectively.
- Pattern of management - broad policies and functions, structural
pattern of the Board of Directors; concept of public sector, social
objectives; public sector management. Current management thoughts.
Paper 2: Financial Accounting Fundamentals (One Paper: 3 hours: 100
marks)
i. Basics of bookkeeping and accounting - definition and its
usefulness. Financial accounting principles, concepts and convention -
measurement of business income. Position Statement. Accounting Standards
- national and international (basic knowledge).
System of book keeping - double entry system, books of prime
entry, subsidiary books, recording of cash and bank transactions, preparation
of ledger accounts, preparation of trial balance - interpretation and
usefulness.
Bank reconciliation statement - Need for reconciliation between
cashbook and bank pass book and problems relating to the preparation of
bank reconciliation statement.
Accounting mechanics (including computerization.), bill of exchanges,
consignment and joint venture.
- Concept of capital, revenue and deferred revenue expenditure, opening
entries, closing entries, adjustment entries and rectification entries,
trading, manufacturing and profit and loss account and balance sheet.
Bad debts and reserves for bad debts - its accounting treatment. Depreciation
- its significance and accounting.
- Concept of single entry vis-à-vis double entry system of accounting,
their interrelationship and conversion from single entry system to double
entry system. Preparation of receipts and payments accounts and income
and expenditure account. Significance of reserves and provisions. Preparation
of profit and loss account and balance sheet of different organisations.
- Partnership Accounts - Admission, Retirement, Death, Dissolution.
- Joint stock company accounts - issue, forfeiture and redemption
of preference shares and debentures, profits prior to incorporation
and company profit and loss account and balance sheet as per provision
of the Companies Act, 1956 (1 of 1956).
Paper 3: Economics and Business Fundamental (One Paper: 3 hours: 100
marks)
Section I - Economics (50 marks)
- Basics of economics - definition, scope and subject matter
of economics - a few fundamental concepts like utility, wealth, factors
of production, demand and supply, elasticity, equilibrium, land and
the laws of diminishing returns.
Theory of employment - types of unemployment, concepts of full
employment and how it can be achieved.
Labour and population theories, definition of capital and growth of
capital, steps in capital formation.
Market forms - value under perfect competition and under imperfect
competition.
National Income - Gross National Product, Net National Product,
measurement of national income, economic growth and fluctuations, consumption,
savings and Investments.
Distribution - income determination and equilibrium relating
to rent, wages, interest and profit.
- Money - definition and functions of money, quantity theory
of money, inflation, effects of inflation on production and distribution
of wealth, control of inflation, money supply, liquidity preference
and managerial efficiency, rate of interest and investment.
Banking - definition, functions and utility of banking, the principles
of commercial banking, multiple credit creation, essentials of a sound
banking system.
Central bank - Functions, weapons of credit control and the money
market.
International trade - basic features of import - export.
- National and International Financial Institutions - Industrial
Finance Corporation of India (IFCI), Industrial Credit and Investment
Corporation of India (ICICI), Industrial Development Bank of India (IDBI),
Export-Import Bank (EXIM), Asian Development Bank, International Monetary
Fund, International Bank for Reconstruction and Development (World Bank).
Public finance - direct and indirect taxes, principles of taxation,
effects of taxation on production and distribution, taxable capacity,
deficit financing systems.
Section II: Business Fundamentals (50 marks)
( i )Types of business units - sole proprietorship, partnership,
companies, co-operatives, Hindu Undivided Family, joint stock companies,
public utility services and state enterprises.
Company organisation and management - types of companies - their
formation, incorporation and commencement of business, memorandum of association
and articles of association, prospectus, shares and debentures, Board
of directors and general meetings.
(ii) Business objectives - concept and rationale of social responsibility,
business and its environment, interface with legal, political, economic,
social and cultural aspects.
Stock exchange and its workings - dealers and brokers’ transactions,
economic significance, conditions of membership, role of stock exchanges.
Business communication and report writing - commercial correspondence
and report writing.
Paper 4: Business Mathematics and Statistics Fundamentals (One Paper:
3 hours: 100 marks)
Aim: To ensure a basic understanding a quantitative tool and their
elementary application of business problems.
Level of knowledge: Basic knowledge.
Arithmetic (15 marks)
Average, mixtures, computation of interest, discounting of bills, percentages,
ratios and proportions.
Algebra (25 marks)
- Number systems – real, imaginary, rational and irrational.
- Elementary knowledge of sets and the operations on them. Simple applications
and solution by the use of Venn diagram. Truth table and its applications
to statements.
- Indices and surds, variation, logarithms, permutations and combinations,
compound interest.
- Solution and systems of linear simultaneous equations (3 variables
only). Quadratic equations, solution of linear inequalities (by geometrical
method only).
Mensuration (30 marks)
Area and perimeter of triangles, circles, parallelogram, regular polygon,
volume and surface of cube, prism, cylinder, pyramid, cone, frustums and
spheres (including zone and segments). Plain Co-ordinate Geometry (Rectangular
Cartesian co-ordinates only). Length of line segments, section ratio,
gradient of a line, equations of straight lines, circles, parabolas, Ellipse
and hyperbolas (standard forms only).
Elementary Statistics (30 marks)
Graphical presentation of statistical data, frequency distribution, measures
of central tendency (mean, median, mode) measures of dispersion (range,
mean deviation, standard deviation, variance), measures of skewness and
kurtosis.
|
