The IFAP Syllabus

Awarding of membership of Forensic Accounting Program requires completion of the

following eighteen (18) compulsory subjects/Papers!
Foundation Stage
F" 1 #ntroduction to Forensic Accounting
F" $ %oncepts & 'echniques of Fraud ()amination
F" * Forensic Accounting & +itigation Framewor,
F" - .usiness %ommunication & .eha/ioral "tudies
Certifcate Stage
%" 0 #n/estigation Process & 'echniques
%" 1 'he 'a)ation & %ompany +aws
%" 2 (/idence & 'he Forensic Accountant
%"8 Forensic Auditing & Assurance
Professional Stage (Group I)
P" 3 'reasury & Fore) 4anagement
P" 15 6is, 4anagement (.asics & 'ools)
P" 11 #ndependent Accounting ()pert 6eports
P" 1$ .an,ing & #nsurance +aws
Professional Stage (Group II)
P" 1* Anti 4oney laundering 4easures & .usiness (thics
P" 1- %orporate & Financial 6eporting
P" 10 %orporate 7o/ernance & Administration
P" 11 .usiness 8aluation 4anagement
P" 12 %riminology9 +egal (n/ironment & (thics
P" 18 Ad/anced Auditing or Ad/anced 'a)ation or %yber +aws or .an,s/%orporate
Frauds
Note:
Research Project/Thesis/Presentation
'he purpose of this subject is to pro/ide students/applicants with an opportunity to
underta,e independent research in a speciali:ed area of interest to the student; 'he
topic is to be selected in consultation with the subject coordinator but must ha/e a
global or transnational focus drawn from subject areas such as <nancial crime9
regulatory issues and corruption; =hile this is an independent research
project/thesis/presentation9 students/applicants will be required to consult on a
regular basis with their super/isor throughout the session of enrolment; 6esearch
Projects are to be $0 > *5 pages at least;
The Course Outlines
[1]
FS 1Introuction to Forensic Accountin! "#ar$s: 1%%&
CO'RS( )(SCRIPTION
Principles of Forensic Accounting pro/ide a solid foundation for building s,ills in
forensic accounting techniques9 including gathering9 interpreting9 and documenting
e/idence; #n this course we e)amine the in/estigati/e techniques used by
accountants to conduct forensic e)aminations as well as the common schemes and
techniques used to commit fraud; 'he s,ills acquired will enable you to assist
businesses in detecting9 in/estigating9 documenting9 and pre/enting fraud; 'he
course also introduces you to the many professional opportunities a/ailable to
Forensic Accountants "FAs&;
A*isory
"tudents considering enrolling in this graduate course should ha/e a thorough
understanding of the business transaction cycle and9 at a minimum9 a bac,ground in
both <nancial accounting and auditing9 obtained through either prior coursewor, or
professional e)perience;
CO'RS( O+,(CTI-(S
After successfully completing this course9 you should be able to!
CO1 #mplement the best practices used by Forensic Accountants "FAs&.
including in/estigati/e techniques9 standards of proof9 and report format used
to support their conclusions
CO/ ?escribe the types of research and the wide array of in/estigations that
Forensic Accountants "FAs& are customarily engaged to conduct
CO0 ?iscuss the /arious roles underta,en by Forensic Accountants "FAs&. as
well as their requirements and certi<cations
CO1 ?i@erentiate roles and responsibilities of the <nancial statement auditor and
the forensic in/estigator
CO2 "ummari:e the Ared BagsC used by Forensic Accountants "FAs& to detect
fraud;
CO3 Assess the objecti/es of the forensic accountant called in as part of the fraud
in/estigation team
CO4 ?escribe and practice Aprofessional s,epticismC
CO5 (/aluate the fraudulent schemes commonly encountered by the Forensic
Accountant "FA&6
CO7 Plan a forensic in/estigation by gathering and documenting e/idence9
including cases where there is ,nown or suspected fraud;
CO1% ?iscuss the professional ethical responsibilities of the Forensic Accountant (FA)
and de/elop appropriate recommendations or strategies for resol/ing
potential ethical dilemmas;
CO11 #dentify internal controls or other methods that can be used to help pre/ent
fraud;
CO'RS( STR'CT'R(/O'T8IN(S
Principles of Forensic Accounting consist of se/en modules; (ach module includes an
o/er/iew9 a list of topics9 learning objecti/es9 a study assignment9 graded
[2]
assessments (i;e;9 a combination of one or more discussion forums9 re/iew questions9
integrati/e assignments9 case assignments9 and research assignments)9 and
additional resources to supplement your assigned study materials; 'he module
structure is as follows!
#oule 19Accountin! an 8e!al Funa:entals ;or Forensic Accountin!
%ourse objecti/es co/ered in this module include %D19 $9 *9 -9 09 19 29 89 39 15
'opics addressed include role of the Forensic Accountant "FA&< di@erences
between forensic accounting and auditingE legal fundamentals (including
<nancial crimes and criminal and ci/il processes)E transaction cycles and
internal controls
#oule /9The Auitin! (n*iron:ent an the Sarbanes=O>ley Act o; /%%/
%ourse objecti/es co/ered in this module include %D19 $9 *9 -9 09 29 39 159 11
'opics addressed include the audit process (including methods and
techniques used and types of audit reports issued)E the auditorFs responsibility
to detect fraudE "arbanes!D)ley Act (including o/erall objecti/es9 major
pro/isions9 compliance with the act9 and e/aluation of e@ecti/eness)
#oule 09Forensic Accountin! Tools an Techni?ues
%ourse objecti/es co/ered in this module include %D19 $9 *9 -9 09 19 29 89 39
159 11
'opics addressed include ,ey concepts of forensic science applicable to
accountingE ,ey concepts of information security management systemsE the
e@ect of suspected fraud on the audit of <nancial statements or a forensic
in/estigationE common indicators of fraudE common analytical proceduresE
sources of forensic e/idenceE in/estigati/e techniques used by forensic
accountantsE inter/iew and interrogation techniques
#oule 19Financial State:ent Frau
%ourse objecti/es co/ered in this module include %D19 $9 -9 09 19 29 89 39 15
'opics addressed include <nancial statement fraud schemes (including
improper re/enue recognition9 o/erstatement of assets9 understatement of
e)penses and liabilities9 misappropriation of assets9 inappropriate disclosure9
and other miscellaneous techniques)E characteristics of <nancial statement
fraudE moti/es of management to commit <nancial statement fraudE <nancial
statement fraud9 the stoc, mar,et9 and insider trainingE pre/ention of <nancial
statement fraudE red Bags of <nancial statement fraud
#oule 29(:@loyee an -enor Frau
%ourse objecti/es co/ered in this module include %D19 $9 09 19 29 89 39 11
'opics addressed include circumstances that lead to employee fraud9 types of
employee and /endor fraud (including transaction cycle fraud and electronic
information fraud)E internal control wea,ness and fraud
#oule 39Ta>. +an$ru@tcy. an )i*orce Frau< Ientity The;t< an #oney
8aunerin!
%ourse objecti/es co/ered in this module include %D19 $9 09 19 29 89 39 15
'opics addressed include o/er/iew of ta) fraudE the ta) practitioner and the
#6"E principal ta) e/asion crimesE ci/il ta) fraudE statute of limitationsE
[3]
methods of proofE ta) protestersE ban,ruptcy fraudE di/orce fraudE identity
theftE organi:ed crimeE terrorismE money laundering
#oule 49Pro;essional Ser*ices: +usiness -aluation. )is@ute Resolution.
an 8iti!ation
%ourse objecti/es co/ered in this module include %D19 $9 *9 09 29 89 39 15
'opics addressed include o/er/iew of business /aluationE basic /aluation
theoryE the process of /aluing a businessE /aluation methodsE forms of
alternati/e dispute resolutionE creating an alternati/e dispute resolution
departmentE e)pert consulting and testimony
)etaile
INTRO)'CTION TO FOR(NSIC AN) IN-(STIAATI-( ACCO'NTINA
)eBnition an )e*elo@:ent o; Forensic Accountin!
?e<ning Forensic Accounting
Gistorical 6oots of Accounting
Gistory of Financial 6eports and +egal %hallenges
'hreads of Forensic Accounting
Accounting +iterature Parallels Accounting Practice
'he Phrase HForensic AccountingH #s .orn
Forensic Accountin! an In*esti!ati*e Accountin! Co:e o; A!e
'he Forensic Accountant .ecomes an #n/estigator
F.# and Forensics
First Forensic Accounting .oo,s in Inited "tates
A#%PA Practice Aid
American 4anagement Association %ourse
'he Panel on Audit (@ecti/eness
A#%PA Fraud 'as, Force 6eport
%ontro/ersy "urrounding the AccountantJs 6ole in Fraud ?etection
%onclusion
FOR(NSIC ACCO'NTINA ()'CATION. INSTIT'TIONS. AN)
SP(CIA8TI(S
Pre@arin! to +eco:e a Forensic Accountant
%ollege and Ini/ersity Programs
Keystones of Forensic Accounting %urricula
K"As and (ducation of the Forensic Accountant
Career Trac$s in Forensic Accountin!
#ncome ()pectations for Forensic Accountants
"pecialties within Forensic and #n/estigati/e Accounting
Pro;essional Arou@s an Creentials
'he #nstitute of Forensic Accountants of Pa,istan (#FAP)
'he #nstitute of %erti<ed Forensic Accountants (#%FA I"A/%anada)
%aribbean #nstitute of Forensic Accountants (%#FA =est #ndies)
'he #nstitute of Forensic Accountants (#FA Ligeria)
[4]
'he #nstitute of Forensic Accounting and #n/estigati/e Audit (#FA#A #ndia)
American %ollege of Forensic ()aminers
Association of %erti<ed Fraud ()aminers
Association of %erti<ed Fraud "pecialists
Forensic Accounting "ociety of Lorth America
Lational Association of %erti<ed 8aluation Analysts
Lational +itigation "upport "er/ices Association
Letwor, of #ndependent Forensic Accountants
#nstitute of .usiness Appraisers
Dther Drgani:ations "er/ing Forensic Practitioners
%onclusion
FRA')'8(NT FINANCIA8 R(PORTINA
I:@ortance o; Trans@arent Financial In;or:ation
"tatement of Financial Accounting %oncepts
#eans an Sche:es o; Financial Re@ortin! Frau
'hree 4Js of Financial 6eporting Fraud
'en Fraud "chemes .ases on "(% 6eleases
"henanigans to .oost (arnings
Sources o; Frauulent Financial Re@ortin!
#nternal 8ersus ()ternal Fraud
#oti*ation an Contributin! Factors
%ontributing Factor 4odel
6is, Factor Analysis
#nternal %ontrols
Incience o; Cri:e an Characteristics o; Per@etrators
"tudies of the Pre/alence of Fraud in .usiness
%haracteristics of the =hite!%ollar %riminal
(arnin!s #ana!e:ent an AAAP *ersus IFRS
Fle)ibility of 7AAP and #F6"
6estatements of (arnings
%onclusion
)(T(CTINA FRA') IN FINANCIA8 R(PORTINA
Res@onsibilities an Roles in Financial Re@ortin!
#ndependent Audit Procedures and the AuditorJs 6ole
#nternal AuditorJs Procedures and 6ole
Audit %ommitteeJs 6ole
4anagement 6ole
Forensic AccountantJs 6ole
Financial State:ent Frau Cate!ories an Re Fla!s
D/erstated 6e/enues
4anagement (stimates
Pro Forma %an 4islead
[5]
(arnings Problems 4as,ing 6educed %ash Flow
(arnings before #nterest9 'a)es9 ?epreciation9 and Amorti:ation ((.#'?A)
()cessi/e ?ebt
#n/entory Problems
"ales and ()penses Problems
.ig .ath
.alance "heet Account Problems
Pension Plan Problems
6eser/e (stimates
Personal Piggy .an,
.arter ?eals
Financial Frau )etection Tools
#nter/iewing the ()ecuti/es
Analytics
Percentage Analysis
Ising %hec,lists to Gelp ?etect Fraud
%onclusion
(#P8OC(( FRA') TD( #ISAPPROPRIATION OF ASS(TS
Frau Sche:es an Their Sche:ers
%ompany "usceptibility to Fraud
(mployee Fraudsters
Ty@es o; #isa@@ro@riations
(mbe::lement
%ash and %hec, "chemes
Accounts 6ecei/able Fraud
#n/entory Fraud
Fictitious ?isbursements
=al,ing the =al, of Fraud ?etection Programs
Co:@any Frau Pre*ention. )etection. an #iti!ation #easures
%ompanies on the Front +ines in Pre/enting (mployee Fraud
Non @roBt (ntities as S@ecial Frau Tar!ets
6easons for Fraud in Lot!for!Pro<ts
Pre/ention Programs for Lot!for!Pro<ts
Fraud in Federal9 "tate9 and +ocal 7o/ernments
Ehen ItFs Ti:e to Call in Pro;essionals
Forensic AccountantJs 'echniques
%onclusion
IN)IR(CT #(TDO)S OF R(CONSTR'CTINA INCO#(
Forensic Auit A@@roaches 'se by the IRS
4inimum #ncome Probes
+ifestyle Probes
#6"Js Financial "tatus Audits
[6]
Inirect #ethos
4ar,et "egment "peciali:ation Program
%ash '
"ource and Application of Funds 4ethod (()penditure Approach
Let =orth 4ethod
.an, ?eposit 4ethod
%onclusion
#ON(C 8A'N)(RINA AN) TRANSNATIONA8 FINANCIA8 F8OES
#oney 8aunerin!: An Introuction
+egal and #llegal +aundering
%yber cash %reates Lew +aundering Dpportunities
=ho Ises 4oney +aundering PracticesM
Financial InstitutionsF Role in #oney 8aunerin!
%orrespondent .an,ing
'ools .an,s Ise to #dentify 4oney +aunderers
?ue ?iligence +aws for .an,s
"hell .an,s
Other +usinessesF Role in #oney 8aunerin!
%ash!Driented .usinesses
Audit 'rail for .usiness 4oney +aundering "chemes
Finin! #oney 8aunerin! Sche:es
+i,ely "ources
Auarin! A!ainst #oney 8aunerin!
#ndi/idual due ?iligence Ising #dentity %hec,s
%ompany ?ue ?iligence in 8eri<cation Procedures
'rust ?ue ?iligence Ising 'rust ?eeds
Drgani:ation!wide "uspicious Acti/ities
'he AccountantJs 6ole as 7ateway Keeper
Lew #nitiati/es I"A Patriot Act of $551
%onclusion
8ITIAATION S(R-IC(S PRO-I)() +C ACCO'NTANTS
Ty@es o; 8iti!ation Ser*ices Pro*ie by Accountants
%onsultant
()pert =itness
4asters and "pecial 4asters
Stanars o; Conuct ;or Per;or:in! 8iti!ation Ser*ices
Knowledge9 ",ills9 ()perience9 'raining9 and (ducation
Professional %odes of %onduct
%onBicts of #nterest
=ritten Agreement to Perform +itigation "er/ices
+eco:in! an (>@ert Eitness
[7]
()pert =itnesses ?istinguished from +ay =itnesses
=hat +awyers +oo, for in an ()pert =itness
Nualifying as an ()pert =itness
%ourt!Appointed ()pert =itnesses
Pre@arin! to Testi;y as an (>@ert Eitness
4aintaining #ndependence from the %lient
(/idence upon =hich ()perts 4ay 6ely
Ise of %on<dential %lient #nformation
()pert 6eports
=or,ing Papers
(/aluation of Dther ()perts
()hibits and Dther ?emonstrati/e (/idence
Testi;yin! as an (>@ert Eitness
'estifying at a ?eposition
Preparing to 'estify at 'rial
'estifying at 'rial
8iability o; (>@ert Eitnesses
=itness #mmunity
.ases for +iability
%onclusion
PROP(R (-I)(NC( #ANAA(#(NT
+asic Rules o; (*ience
=hat Are the 6ules of (/idenceM
=hat #s (/idenceM
Process for ?etermining the Admissibility of (/idence
6ele/ance 6equirement
Pri/ileged %ommunications
Gearsay 6ule
Authentication 6equirement
.est (/idence 6ule
?emonstrati/e (/idence
"pecial 6ules for %riminal %ases
"pecial 6ules in Administrati/e Proceedings
#ana!e:ent o; (*ience
4a)imi:ing %lient %on<dentiality
Ising 'echnology to 7ather (/idence
%omputer (/idence
(nsuring the Admissibility of (/idence in %ourt
"ecurity for (/idence and =or,ing Papers
(/idence ?atabase
(/aluating the Nuality and Persuasi/eness of (/idence
6ecord 6etention
%onclusion
CO##(RCIA8 )A#AA(S
The (>@ert
()pert =itnessesJ Nuali<cations
()pert =itnessesJ 'estimony 6equirements
[8]
+asics o; )a:a!es 8iti!ation
'he +egal Framewor, of ?amages
'wo 'ypes of Garm 'ort and .reach of %ontract
'wo 'ypes of ?amages 6estitution and 6eliance
A@@roaches to 8oss (sti:ation
?amages %alculation Approaches
'he +ost Pro<ts 4ethods
"tudy of +osses Process
(conomic Framewor, for the +ost Pro<ts (stimation Process
#easurin! the 8oss
+ength of the +oss Period
%omponents of ?amages
'he ?efendantJs ?amages (stimate
'he Plainti@Js ?amages (stimate
+ost "ales and Pro<ts
Production or Dther %ost #ncreases
%ustomer #ll =ill and Future +ost Pro<ts
Dther Ad/erse (@ects
The (>@ertFs ,ourney throu!h the 8e!al Syste:
'estimony (arly in %ase
?efending the ()pert 6eport
Cost +eha*ior an )a:a!es Calculations
%ost .eha/ior ?e<ned
%ommon 'ypes of %ost .eha/ior
%ost .eha/ior Assumptions
?amages Period and ?iscount 6ate
%onclusion
8ITIAATION S'PPORT IN SP(CIA8 SIT'ATIONS
Antitrust 8iti!ation
D/er/iew of Antitrust +aws
6ole of Accountants in Antitrust +itigation
Actions 'hat %onstitute Predatory Pricing
?etermining a %ompanyJs A/erage 8ariable %osts
(stimating %ost .eha/ior Patterns
%ase "tudy %oho 7rocery
Feeral False Clai:s Act 8iti!ation
D/er/iew of the Federal False %laims Act
'he AccountantJs 6ole in False %laim Act +itigation
%onclusion
INT(RN(T FOR(NSICS ANA8CSIS: PROFI8INA TD(
CC+(RCRI#INA8
Si;tin! ;or Clues to Cybercri:es
%ollecting (/idence
[9]
%lues /ersus (/idence
Technical Searches
#nternet Protocols 'echnical "earches .egin Gere
?ecoding Pac,et #nformation
?ecoding "imple 4ail 'ransfer Protocol ("4'P)
?ecoded #P Addresses 'racing 'ools
?ecoded #P Addresses Larrowing the "earch
In;or:ational Searches
#nternet ?atabases #nformational "earches .egin Gere
=eb Page "earches
7o/ernment ?ata "earches
4iscellaneous "earches
%onclusion
CC+(RCRI#( #ANAA(#(NT: 8(AA8 ISS'(S
Cybercri:es: An Introuction
Let Frauds
Inauthori:ed Access to Letwor, Assets
'ypes of Inauthori:ed Access
Cri:inality o; Cybercri:es
=hen #s a %ybercrime 6eally a %ybercrimeM
+egislation as +agging 'echnology
Cybercri:e Statutes
#nternational +aw
Federal +egislation
"tate +egislation
Auielines ;or Cybercri:e #ana!e:ent
K"As for Fighting %ybercrime
Filing 6eports of %ybercrimes
%onclusion
CC+(RCRI#( 8OSS -A8'ATIONS
Attac$s on Tan!ibles an Intan!ibles
()tent of the Problem
"tatutory +oss 8aluations
Gigh!'ech A'angibleC +osses Attributed to %yber Attac,s
Gigh!'ech #ntangible +osses
8oss -aluations an Insurance Clai:s
#nsurers
%osts and 'ypes of %o/erage
Nualifying for %o/erage
%onclusion
+'SIN(SS -A8'ATIONS
[10]
Funa:entals
8aluation and Appraiser Accreditations
(ngagement Agreements 'hat %reate "uccessful %lient 6elationships
Purposes for Dbtaining .usiness 8aluations
"tandards of 8alue
Purpose of the 8aluation A@ects the 8aluation 4ethods Ised
The Three -aluation A@@roaches
#ncome Approach
4ar,et Approach
%ost Approach
Aatherin! Initial In;or:ation
#nitial #nformation 6equest
?iscerning =hat ?ata #s 6equired
Financial Analysis
Gow 4uch Gistory #s (noughM
"preading Financial "tatements
Analy:ing Financial "tatements for 'rends and 6is,s
6e/enues
7ross Pro<ts
Dperating ()penses
Dperating Pro<ts
Dther #ncome and ()pense
Preta) Pro<tability
Practical Illustrations
(arnings Gistory
#ncome "tatement 4ethods of ?etermining a .usiness 8aluation
%ash Flow 4ethods of ?etermining the .usiness 8aluation
6ules of 'humbO8aluation on the %heap
+usiness -aluation Stanars
Iniform "tandards of Professional Appraisal Practice (I"PAP)
American #nstitute of %erti<ed Public Accountants (A#%PA)
%ommon 6equirements of .usiness 8aluation "tandards of 8aluation "ocieties
Features of the "tandards
+usiness -aluation Re@orts
Drgani:ation of the 6eport
Attention to 4echanics
4ain "ections of the 8aluation 6eport
%onclusion
Reco::ene Reain!
1; Gopwood9 =; ";9 +einer9 P; P;9 & Qoung9 7; 6; ($558); Forensic accounting;
.oston 4c7raw!Gill #rwin; #".L 328!5!52!*0$180!5;
$; Knapp9 4; %; ($515); Forensic accountingOA%% 051; 'wo case studies; %ustom
publication; 4ason9 DG %engage +earning; #".L!15 1!111!$30*5!1;
*; Forensic and #n/estigati/e Accounting by ?; +arry %rumbley9 +ester ( Geitger
& 7; "te/enson "mith9 published by %%G #ncorporated =oltersKluwer
%ompany;
[11]
1; #ntroduction to Forensic Accounting by 6obert K; 4inniti9 %PA9 %F(9 %r;FA9 %FF9
4.A President9 4inniti %PA9 ++%
$; Fraud Auditing and Forensic Accounting by 'ommie =; "ingleton
*; Forensic Accounting in 4atrimonial ?i/orce by Pames A; ?i7abriele
-; Forensic Accounting by Pohn 'aylor #".L15 5$2*2$$31- #".L1*
3285$2*2$$315 Publisher Pearson (ducation +imited Financial 'imes
Prentice Gall Publication date 11 Lo/ $515
FS /Conce@ts G Techni?ues o; Frau (>a:ination
"1%% #ar$s&
Course )escri@tion
Fraud e)amination will co/er the principles and methodology of fraud detection and
deterrence; 'he course includes such topics as s,imming9 cash larceny9 chec,
tampering9 cash register disbursement schemes9 billing schemes9 payroll and
e)pense reimbursement schemes9 non!cash misappropriations9 corruption9
accounting principles and fraud9 fraudulent <nancial statement9 and inter/iewing
witnesses;
Course Objecti*e
'o de/elop an understanding of how and why occupational fraud is
committedE
'o recogni:e how fraudulent conduct may be deterredE and
'o determine how allegations of fraud should e in/estigated and resol/ed;
Course Re?uire:ents
%lass sessions will consist of lectures9 case studies9 /ideo presentations9 and
discussions; 'he sessions will be interacti/e9 with students wor,ing through the
cases9 de/eloping in/estigati/e strategies9 and see,ing to pro/e how the fraud was
committed;
Course O*er*ieH
%hapter 1 #ntroduction
%hapter $ ",imming
%hapter * %ash +arceny
%hapter - .illing schemes
%hapter 0 %hec, 'ampering
%hapter 1 Payroll "chemes
%hapter 2 ()pense 6eimbursement "chemes
%hapter 8 %ash 6egister ?isbursement "chemes
%hapter 3 Lon!%ash Assets
%hapter 15 %orruption
%hapter 11 Accounting Principles & Fraud
%hapter 1$ Fraudulent Financial "tatement "chemes
%hapter 1* #nter/iewing =itnesses
%hapter 1- %onducting #n/estigations and =riting 6eports
%hapter 10 Dccupational Frauds and Abuse 'he .ig Picture
Course Outlines
Introuction
[12]
Fraud ()amination methodology
predication
Fraud 'heory Approach
'ools used in Fraud ()aminations
?e<ning Dccupational Fraud and Abuse
?e<ning Fraud
?e<ning Abuse
6esearch in Dccupational Fraud and Abuse;
S$i::in!
",imming "chemes
"ales ",imming
6ecei/ables ",imming
Proacti/e %omputer Audit 'ests ?etecting ",imming
%ase "tudies;
Cash 8arceny
%ash +arceny "chemes
+arceny at the Point of "ale
+arceny of 6ecei/ables
%ash +arceny from the ?eposit
Proacti/e %omputer Audit 'ests for ?etecting %ash +arceny9
%ase "tudies;
+illin! Sche:es
.illing "chemes
"hell %ompany "chemes
.illing "chemes #n/ol/ing Lon > Accomplice 8endors
Pay > and > 6eturn "chemes
D/erbilling with a Lon > Accomplice 8endorJs #n/oices
Personal Purchases with %ompany Funds
Personal Purchases through False #n/oicing
Personal Purchases on %redit %ards or Dther %ompany Accounts
Proacti/e %omputer Audit 'ests for ?etecting .illing "chemes
%ase "tudies;

Chec$ Ta:@erin!
%hec, 'empering "chemes
Forged 4a,er "chemes
Forged (ndorsement "chemes
Altered Payee "chemes
%oncealed %hec,s "chemes
Authori:ed 4a,er "chemes
%oncealing %hec, 'empering
'he Fraudster 6econciling the .an, "tatement
6e > Altering %hec,s
Falsifying the ?isbursements Pournal
6eissuing #ntercepted %hec,s9 .ogus "upporting ?ocuments
Proacti/e %omputer Audit 'ests for ?etecting %hec, 'empering "chemes
[13]
%ase "tudies;
Payroll Sche:es
Payroll "chemes
7host (mployees
Falsi<ed Gours and "alary
%ommission "chemes
Proacti/e %omputer Audit 'ests for ?etecting Payroll Frauds/ "chemes
%ase "tudies;
(>@ense Rei:burse:ent Sche:es
()pense 6eimbursement "chemes
4ischaracteri:ed ()pense 6eimbursements
D/erstated ()pense 6eimbursements
Fictitious ()pense 6eimbursement "chemes
4ultiple 6eimbursement "chemes
Proacti/e %omputer Audit 'ests for ?etecting ()pense 6eimbursement
"chemes
%ase "tudies;
Cash Re!ister )isburse:ent Sche:es
6egister ?isbursement "chemes
False 6efunds
False 8oids
%oncealing 6egister ?isbursements
"mall ?isbursements
?estroying 6ecords
Pre/enting and ?etecting 6egister ?isbursement "chemes
Proacti/e %omputer Audit 'ests for ?etecting 6egister ?isbursement
"chemes
%ase "tudies

Non=Cash Assets
Lon %ash 4isappropriation "chemes
4isuse of Lon %ash Assets
Inconcealed +arceny "chemes
Asset 6equisitions and 'ransfers
Purchasing and 6ecei/ing "chemes
False "hipments of #n/entory and Dther Assets
Dther "chemes
%oncealing #n/entory "hrin,age
Altered #n/entory 6ecords
Fictitious "ales and Accounts 6ecei/able
=rite D@ #n/entory and Dther Assets
Physical Padding
Pre/enting and ?etecting Loncash 'hefts 'hat are %oncealed by
Fraudulent "upport
Proacti/e %omputer Audit 'ests for ?etecting Loncash 4isappropriations
%ase "tudies
[14]
Corru@tion
%orruption "chemes
.ribery
Kic,bac, "chemes
.id > 6igging "chemes
"omething of 8alue
#llegal 7ratuities
(conomic ()tortion
%onBicts of #nterest
Purchasing "chemes
"ales "chemes
Dther %onBict of #nterest "chemes
Pre/enting and ?etecting %onBicts of #nterest
Proacti/e %omputer Audit 'ests for ?etecting %orruption
%ase "tudies
Accountin! Princi@les G Frau
Fraud in Financial "tatements
=ho %ommits Financial "tatement FraudM
=hy ?o People %ommit Financial "tatement FraudM
Gow ?o People %ommit Financial "tatement FraudM
%onceptual Framewor, for Financial 6eporting
(conomic Acti/ity
7oing %oncern
4onetary Init
Periodicity
Gistorical %ost
6e/enue 6ecognition
4atching
Full ?isclosure
%ost > .ene<t
4ateriality
#ndustry Practice
%onser/atism
6ele/ance and 6eliability
%omparability and %onsistency
6esponsibility for Financial "tatements
Isers of Financial "tatements
'ypes of Financial "tatements
'he "arbanes > D)ley Act of $55$
Public %ompany Accounting D/ersight .oard (P%AD.)
%erti<cation Dbligations for %(Ds and %FDs
Lew "tandards for Audit %ommittee #ndependence
Lew "tandards for Auditor #ndependence
(nhanced Financial ?isclosure 6equirements
Protection for %orporate =histleblowers under "arbanes D)ley Act $55$
(nhanced Penalties for =hite > %ollar %rime
Frequency and %ost
'ypes of Fraudulent Financial "tatement "chemes
[15]
%ase studies
Frauulent Financial State:ent Sche:es
?e<ning Financial "tatement Fraud
%osts of Financial "tatement Fraud
Fictitious 6e/enues
"ales with %onditions
Pressures to .oost 6e/enues
6ed Flags Associated with Fictitious 6e/enues
'iming ?i@erences
4atching 6e/enues with ()penses
Premature 6e/enue 6ecognition
+ong 'erm %ontracts
%hannel "tuRng
6ecording ()penses in the =rong Period
6ed Flags Associated with 'iming ?i@erences
%oncealed +iabilities and ()penses
+iability/()pense Dmissions
%apitali:ed ()penses
()pensing %apital ()penditures
6eturns and Allowances and =arranties
6ed Flags Associated with %oncealed +iabilities and ()penses
#mproper ?isclosures
+iability Dmissions
"ubsequent (/ents
4anagement Fraud
6elated > Party 'ransactions
Accounting %hanges
6ed Flags Associated with #mproper ?isclosures
#mproper Asset 8aluation
#n/entory 8aluation
Accounts 6ecei/able
.usiness %ombinations
Fi)ed Assets
6ed Flags Associated with #mproper Asset 8aluation
?etection of Fraudulent Financial "tatement "chemes
"A" Lo;33 > %onsideration of Fraud in a Financial "tatement Audit
Financial "tatement Analysis
?eterrence of Financial "tatement Fraud
6educe Pressures to %ommit Financial "tatement Fraud
6educe the Dpportunity to %ommit Financial "tatement Fraud
6educe 6ationali:ation of Financial "tatement Fraud
%ase "tudies
Inter*ieHin! Eitnesses
#ntroductory Nuestions
#nformational Nuestions
%losing Nuestions
Assessment questions
[16]
Admission > "ee,ing Nuestions
6e/iew Nuestions
?iscussion #ssues
%ase "tudies
Conuctin! In*esti!ations an Eritin! Re@orts
=hen #s an #n/estigation LecessaryM
Planning the #n/estigation
"electing the #n/estigation 'eam
?e/eloping (/idence
%o/ert Dperations
"ur/eillance
Ising #nformants
A?umpster ?i/ingC
"ubpoenas
"earch =arrants
8oluntary %onsent
Preser/ing ?ocumentary (/idence
%hronologies
'o > ?o +ists
Ising %omputer "oftware to Drgani:e ?ocuments and other ?ata
"ources of #nformation
#n > Gouse "ources
Public #nformation
6eport =riting
Purpose of the 6eport
Know the 6eader
Format
Dpinions or %onclusions in 6eport
%ase "tudies
Occu@ational Fraus an Abuse: The +i! Picture
?e<ning Abusi/e %onduct
4easuring the +e/el of Dccupational Fraud and Abuse
'he Guman Factor
Inderstanding Fraud ?eterrence
'he #mpact of %ontrols
'he Perception of ?etection
'he %orporate "entencing 7uidelines
?e<nition of %orporate "entencing
8icarious or #mputed +iability
6equirements
'he (thical %onnection
%oncluding 'houghts
%ase "tudies
Reco::ene Reain! #aterial
1; Principles of Fraud ()aminations by Poseph ' =ells ($
nd
(dition) Published by
Pohn =iley & "ons #nc;
[17]
$; Fraud ()amination (with A%+ %? S 6D4) by = "te/e Albrecht9 %onan %;
Albrecht9 %had D; Albrecht and 4ar, Timbelman (*
rd
(dition) Published by
"outh =estern %engage +earning;
*; (ssentials of %orporate Frauds by 'racy + %oenen9 published by Pohn =iley &
"ons #nc;
-; %orporate Fraud Gandboo, Pre/ention and ?etection by Poseph '; =ells
0; Fraud & Forgery +aws (+atest (dition) by (mmanuel Tafar9 published by
Ladeem +aw .oo, Gouse9 +ahore;
FS 0Forensic Accountin! G 8iti!ation Fra:eHor$ "1%%
#ar$s&
'his subject will address the role of law in dealing with cases of fraud or
misconduct9 and the legal framewor, within which the Forensic Accounting
process9 from preliminary stages9 to in/estigation and ultimately to
prosecution or litigation; #n particular9 the subject will address the legal
framewor, (at the state9 national and international le/el) within which
allegations of fraud are addressedE the concept of the corporation and the
cope for abuseE the duties9 roles and responsibilities of the ,ey players in
corporations and in the in/estigation of corporate misconductE and the legal
obligations of professional such as auditors9 and the implications of these for
the Forensic Accountants "FAs&6
Course Outlines
Part I The 8iti!ation (n*iron:ent
'he 6ole of the Forensic Accountant in +itigation "er/ices
%ausation #ssues in ()pert 'estimony
'he (conomics in Accounting for +itigation
Alternati/e ?ispute 6esolution
Part II )a:a!es Techni?ues
"tatistical (stimation of #ncremental %ost from Accounting ?ata
(conometric Analysis
(stimating the %ost of %apital
() Ante /ersus () Post damages %alculations
Prejudgment #nterest
'he Flaw of A/erages in +aw and Accounting
8aluing +osses in Lew .usinesses
.usiness #nterruption #nsurance %laims
.usiness 8aluations (Adjusted Present 8alue (AP8) 4ethod
+ost (arnings of Persons
Puniti/e ?amages
'a) 'reatment of ?amages Awards
Part III 8iti!ation Tools
?ata 4anagement
Part I- Ci*il 8iti!ation
[18]
Securities an Accountant 8iability
Federal "ecurities Acts and Areas of ()pert Analysis
Accountant +iability
Intellectual Pro@erty
(conomic Analysis of Lon patent #ntellectual Property 6ights and ?amages
4easures
#ntellectual Property ?amages in the (ntertainment #ndustry
Patent #nfringement ?amages
+icense %ompliance Performing 6oyalty ()aminations
Antitrust/+usiness Co:bination
Antitrust
?isputes in 4ergers & Acquisition 'ransactions
Construction an Real Pro@erty )is@utes
%onstruction %laims
Nuantifying ?amages in 6eal (state +itigation
Other Ci*il 8iti!ation
'he 'roubled .usiness and .an,ruptcy
Alter (go
(mployment +itigation
Federal %ontract ?isputes
Part - Fa:ily 8aH
8aluation and ?i/ision of 4arital Property
%hild and "pousal "upport Awards
4arital ?issolution Professional 7oodwill and 6elated #ntangibles
4arital ?issolution 'racing and Apportionment of Assets
4arital ?issolution 'a) %onsiderations
Part -I Cri:inal Cases
'a) Fraud
Part -II In*esti!ations
Financial "tatement #n/estigation
#nternational #n/estigation
Reco::ene Reain!:=
1; +itigation "er/ices Gandboo,9 Fourth (dition ('he 6ole of the Forensic
Accountant/Financial ()pert by 6oman + =eil9 Peter . Fran,9 %hristian =
Gughes and 4ichael P =agner9 Published by =iley & "ons #nc;
$; +itigation "upport and Financial Assessment of ?amages ?onald 6; %hil/ers9
%hristopher P; +emar9 'im +awrence9 Andrew 4ain:9 Licholas "herrard9 ?a/id
Anton #".L 3285-5155$03- Publisher +e)isLe)is IK
*; +itigation "upport9 'he %oopers & +ybrand 7uide to the Financial Assessment
of ?amages and ?onald 6; %hil/ers9 %hristopher P; +emar9 'im +awrence9
Andrew 4ain:9 Licholas "herrard9 ?a/id Anton #".L 3285-515-33-5
Publisher +e)isLe)is IK (dition *rd 6e/ised edition
[19]
FS 1+usiness Co::unication G +eha*ioral Stuies
"1%% #ar$s&
Objecti*e
'he course aims to introduce students to the ,ey concepts of business
communication and their application; 'he course also intends to incorporate an
understanding of the concepts of organi:ational beha/ior to de/elop problem sol/ing
s,ills9 negotiation s,ills and leadership qualities in the students;
Inicati*e Ari
Syllabus Content Area Eei!ht=a!e
Principles of (@ecti/e .usiness %ommunication $0
%ommunication 4ethods and ",ills -5
Drgani:ational .eha/ior *5
'otal 155
Note: 'he weight!ages gi/en abo/e are for guidance purposes only and some
de/iations in setting of paper could be e)pected;
Syllabus Contents
Princi@les o; (Iecti*e +usiness Co::unication
Introuction
%oncepts and bene<ts of e@ecti/e communication
%omponents of communication including e@ecti/e listening
Problems of communication
+asic @rinci@les o; +usiness Co::unication
"e/en %Js of e@ecti/e communication
Inter@ersonal Co::unication "IPC&
Ini/ersal of #P%
A)ioms of #P%
'ypes of #P%
Co::unication #ethos an S$ills
+usiness #essa!es
Planning before communication
.asic organi:ational plans
Appearance and design
+etters to customers
%ircular letters
Pob application and %urricular 8ia tea (6esume)
7ood news messages & bad news messages
[20]
Persuasi/e messages
.usiness letters9 memos9 fa)es and e!mail
#eetin!s
Preparation of Agenda9 Lotice and 4inutes of 4eetings
Re@ort an @ro@osal Hritin!
"hort report
+ong report
Proposals
Or!aniJational +eha*ior "O+&
Introuction
Approaches to Drgani:ational .eha/ior (D.)
?e<nitions and characteristics of Drgani:ational .eha/ior (D.)
%hallenges faced by the management > 7lobali:ation9 #nformation 'echnology9
?i/ersity and (thics
Or!aniJational @rocesses
Drgani:ational structure & design (principles of organi:ation9 di@erent ways of
structuring organi:ation)
Drgani:ational %hange (nature of change process9 resistance of change)
Drgani:ational culture (concept9 dysfunctional aspect of culture)
Ini*iual +eha*ior
Perception
Attitude
Pob satisfaction
Pob stress
#oti*ation
'ypes of 4oti/ation
'heories of 4oti/ation
Applications > Pob ?esign
7oal setting and 4anagement by Dbjecti/es (4.D)
4anagement by ()ception (4.()
8eaershi@
'ypes of +eadership
'heories of +eadership
Applications > 6oles9 Acti/ities9 ",ills of +eaders
7roup dynamics and team wor, (types of groups9 group formation9 group structure9
indi/idual in groups9 team wor,)
ConKict an Ne!otiation
[21]
+e/els of %onBict
%onBict 6esolution
Legotiation & "tages of negotiation
Peculiar Legotiation "ituation
Reco::ene Reain!
1; 'he (@ecti/e .usiness %ommunication by Gerta a 4urphy9 Gerbert
Gildebrandt9 Pane P; 'homas; 'he boo, co/ers substantial part of the syllabus
area of business communication;
$; Drgani:ational .eha/ior by "tephen P; 6obbins;
*; Drgani:ational .eha/ior by Fred +uthans; 'hese are /ery useful boo,s for
understanding the theoretical and practical aspects of organi:ational beha/ior;
Su@@le:entary Stuy #aterial
1; .usiness %ommunication and .eha/ioral "tudy 'e)t and 6e/ision "eries by
Professional .usiness Publications (P.P);
$; .usiness %ommunication and .eha/ioral "tudy 'e)t and 6e/ision series by A'
Foul,s +ynch Pa,istan;
C(RTIFICAT( STAA( "Co:@rise 1 @a@ers&
CS 2 In*esti!ation Process G Techni?ues
'his subject adopts an interdisciplinary approach to introduce the in/estigati/e
processes used by Forensic Accountants "FAs& to identify9 e)amine and pre/ent
fraudulent <nancial acti/ity; "tudents are pro/ided with the opportunity to learn the
speci<c elements in/ol/ed in a <nancial in/estigation from the moment of predication
through to case pro<ling and the in/estigation processes9 including the process of
setting9 testing9 adjusting and eliminating the case hypothesis; 'he subject focuses
on both qualitati/e and quantitati/e in/estigati/e procedures including in/estigati/e
inter/iewing and data mining techniques; #n addition9 students are e)posed to
Forensic Accounting issues beyond <nancial statement and employee fraud9 to also
understand and appreciate the roles and responsibilities of a Forensic Accountant
"FA& when in/estigating a case and wor,ing along side members of /arious
regulatory bodies9 including the legal ability and limitations faced by a Forensic
Accountant "FA&6
'his subject also e)plores comple) qualitati/e in/estigation techniques utili:ed by a
Forensic Accountant "FA& to further gather e/idence in order to adequately and
appropriately detect and in/estigate the e)istence of <nancial crime; "tudents will
learn how to apply sophisticated in/estigation techniques to comple) in/estigations
of both domestic and o@shore <nancial crimes; Ad/anced study of in/estigati/e
inter/iewing and human beha/ior analysis is underta,en to correctly detect
deception and understand a subject moti/es and rationali:ation for committing
<nancial crime utili:ing this ,nowledge in the o/erall <nancial in/estigation; #n
consideration of e/idence gathering and custodial issues students will be taught how
to underta,e the use of electronic disco/ery9 a crucial component to any forensic
accounting in/estigation complimented by the Forensic AccountantFs (FA)
responsibility throughout the in/estigation to issues of pri/acy and con<dentiality;
Syllabus Contents
[22]
Part I
Introuction
%hapter 1 #n/estigating Forensic Accounting
%hapter $ =hy the =orld Leeds Forensic Accountants
Part /
%hapter * 4eeting Qour 4ethods of #n/estigation
%hapter - =al,ing through the #n/estigation Process
%hapter 0 'racing the Flow of 4oney
%hapter 1 7oing to the "ource Dbtaining 6ecords
%hapter 2 'apping into (lectronic (/idence
%hapter 8 =ho =ants to KnowM 6eporting on Qour Findings
%hapter 3 Preparing for 'rial .usiness +itigation
%hapter 15 Drgani:ing (/idence and "er/ing as an ()pert =itness;
%hapter 11 Pee,ing #nside Federal 7o/ernment Fraud %ases
Part 0
%hapter 1$ Pre/enting Dccupational Fraud
%hapter 1* Gelping "mall .usinesses Pre/ent Fraud
%hapter 1- Assisting +arger .usinesses with Fraud Pre/ention
%hapter 10 Keeping (mployees Gonest (and Gappy)
%hapter 11 Applying 'echnology to Fraud Pre/ention
%hapter 12 A Gistorical Account of the AuditorFs 6ole
%hapter 18 'he 6oles of the Auditor and the Forensic Accounting #n/estigator
%hapter 13 Auditor 6esponsibilities and the +aw
%hapter $5 'odayFs Auditors Are Lot Forensic Accounting #n/estigators
Reco::ene Reain!
1; A 7uide to Forensic Accounting #n/estigation9 'homas =; 7olden9 "te/en +;
",ala,9 4ona 4; %layton #".L 3285-25033520 Published by Pohn =iley and
"ons +td (dition $nd 6e/ised edition
$; Anatomy of a Fraud #n/estigation9 "tephen Pedneault #".L15 5-25015-23
#".L1* 3285-25015-21 Published by Pohn =iley and "ons +td Pohn =iley &
"ons +td Publication date 13 Feb $515
*; Forensic Accounting9 Gow to #n/estigate Financial Fraud by =illiam 'hornhill
#".L 3281001$*2**1
-; ()pert Fraud #n/estigation by 'racy + %oenen #".L15 5-25*8231* #".L1*
3285-25*8231$ published by Pohn =iley and "ons +td Pohn =iley & "ons +td
Publication date 15 4ar $553
CS 3 The Ta>ation G The Co:@any 8aHs "#ar$s: 1%%&
Part 1 The Ta>ation 8aHs "#ar$s: 2%&
[23]
Objecti*e
'he aim of this paper is to de/elop basic ,nowledge and understanding in the core
areas of #ncome 'a) and its chargeability as en/isaged in the #ncome 'a) Drdinance
$551 and the #ncome 'a) 6ules $55$/$558 (rele/ant to the syllabus)9 "ales 'a) Act
1335 and the "ales 'a) 6ules (rele/ant to the syllabus)
Inicati*e Ari
Syllabus Content Area Eei!ht=a!e
Inco:e Ta>
.asic concepts of ta)ation 10
Geads of #ncome9 %omputation of #ncome9 ?etermination of ta) liability -5
'ypes of persons and their ta)ation 15
Procedures and Administration
#ncome 'a) 6ules $55$ 15
Sales Ta>
Prescribed chapters of "ales 'a) Act and 6ules $0
Total 1%%
'he weight!ages gi/en abo/e are for guidance purposes only and some of de/iations
in setting of papers could be e)pected;
Note
Finance Act/Drdinance9 Loti<cations and circulars issued within a period of less than
- months from the date of e)amination shall not be tested;
%hapters9 Parts and ?i/isions not mentioned here speci<cally are e)cluded from the
syllabus; Gowe/er9 it is clari<ed to eliminate any ambiguity that if only a chapter is
mentioned it includes all parts and if only a part is mentioned it includes all di/isions;
'he weight!age gi/en abo/e are for guidance purposes only and some de/iations in
setting of papers could be e)pected;
"tudents are not e)pected to remember the ta) rates; "ome if applicable shall be
gi/en in the question paper;
Syllabus Contents
Inco:e Ta> Orinance. /%%1
+asic conce@ts o; ta>ation
%hapter # Preliminary (concepts of terms de<ned)
%hapter ## %harges of ta) (e)cluding section 2)
%hapter #8 %ommon rules (Part # & ##)
Deas o; inco:e. Co:@utation o; inco:e. )eter:ination o; ta>
liability
%hapter ### 'a) on ta)able income (e)cluding "ection $3A9 *5 & *1)
[24]
%hapter #U 4inimum 'a)
%hapter U Part 8 Ad/ance ta) and deduction of ta) at source
%hapter U## 'ransitional Ad/ance 'a) Pro/isions
Ty@es o; @ersons an their ta>ation
%hapter 8 Part %entral concepts
%hapter 8 Part ## > ?i/ision # #ndi/iduals
%hapter 8 Part ### Association of persons
%hapter 8## Part ## 'a)ation of foreign > source of residents
Proceures an A:inistration
%hapter U Part # 6eturns
%hapter U Part ## Assessments
%hapter U Part ### Appeals including Alternati/e ?ispute 6esolution
%hapter U Part #8 %ollection and reco/ery of ta) (("ections 1*2 to1-5)
%hapter U Part 8### Audit ("ection 122)
%hapter U# Part # Administration > 7eneral (e)cluding section $$- to $$2
Inco:e Ta> Rules /%%///%%5
'he rules related to the abo/e chapters of the #ncome 'a) Drdinance9 $551 shall also
e)amined;
Sales Ta> Act 177%
%hapter # Preliminary (concepts of terms de<ned)
%hapter ## "cope and payment of ta)
%hapter ### 6egistration
%hapter #8 .oo, ,eeping and in/oicing requirements
%hapter 8 6eturns
'he following rules (e)cluding anne)ure and forms) of the "ales 'a) 6ules > $551
related to the rele/ant chapters of the "ales 'a) Act may be e)amined; 6ules other
than the following shall not be e)amined at this stage!
%hapter # 6egistration9 8oluntary registration and ?e > 6egistration
%hapter ## Filing of returns
%hapter ### %redit and ?ebit Lote and ?estruction of 7oods
%hapter #8 Apportionment of #nput 'a)
Reco::ene Reain!
1; %omplete #ncome 'a) +aw by " A "alam
$; +aw & Practice of #ncome 'a) by ?r; #,ram!ul!Gaq
*; .are Act9 6ules9 Loti<cationsE %irculars etc; on syllabus topics are included in
these boo,s with brief e)planations
-; "ales 'a) 6eady 6eference by " A "alam
[25]
0; .are Act9 6ules9 Loti<cationsE %irculars etc; on syllabus topics are included in
these boo,s with brief e)planations;
1; "ynopsis of ta)ation by 4ir:a 4unawar Gussain
2; Pa,istan #ncome 'a) +aw Principles and Practice by 4ian "a<ullah and Kashif
A:i: Pahangir
'hese boo,s are /ery useful for understanding practical application of ta)ation;
1; Khalid PetiwalaJs Lotes on #ncome 'a) and "ales 'a)
'he .oo, pro/ides summari:ed notes to the students which will help them at the
time of re/ision; 'he boo, also includes practical questions and original #ncome 'a)
Drdinance and 6ules & "ales 'a) Act and 6ules;
Part / The Co:@any 8aHs "#ar$s: 2%&
'his course aims to pro/ide candidates with ,nowledge of the %ompanies Drdinance9
138- and to de/elop amongst them an understanding of their application to
corporate and other business en/ironment9 e)cluding ad/anced topics as pro/isions
relating to arbitration9 arrangements and reconstruction9 pre/ention of oppression
and mismanagement9 winding up etc; that are co/ered at the Final ()amination
"tage;
Inicati*e Ari
Syllabus Content Area Eei!ht=a!e
'he %ompanies Drdinance9 138- > "ections 1 to 01
$5
'he "ecurities and ()change %ommission of Pa,istan Act9 1332
'he %ompanies Drdinance9 138- > "ections 0$ to 1*1 $0
'he %ompanies Drdinance9 138- > "ections 1-$ to $1$ 00
Total 1%%
Note: 'he weight!ages gi/en abo/e are for guidance purposes only and some
de/iations in setting of papers could be e)pected;
Syllabus Contents
The co:@anies Orinance. 1751= section 1 to 21
Part # Preliminary (concepts of terms de<ned)
Part ## Purisdiction of courts
Part ### "ection 1$ and "ection 1*
Part #8 #ncorporation of companies and matters incidental thereto
Part 8 First schedule to the %ompanies Drdinance9 138-
The Securities an (>chan!e Co::ission o; Pa$istan Act. 1774
The Co:@anies Orinance. 1751=Sections 2/ to103
Part 8 Prospectus9 allotment9 issue and transfer of shares and debentures9 deposits9
etc;
Part 8# "hare capital and debentures;
[26]
Part 8## 6egistration of mortgages9 charges etc;
The Co:@anies Orinance. 1751=Sctions 11/=/3/
Part 8### 4anagement and Administration (e)cluding in/estigation & related
matters)
'hird "chedule to the %ompanies Drdinance9 138-
Reco::ene Reain!
1; %omplete %ompany +aw by " A "alam (6ele/ant topics)
$; .are law and brief e)planation thereon are included in the boo,
*; Practical Approach to the %ompanies Drdinance9 138- by La:ir Ahmed
"haheen (6ele/ant topics); 'his boo, is useful for understanding practical
application of law;
Su@@le:entary Stuy
%ompany +aw "tudy 'e)t and 6e/ision "eries by A ' Foul,s +ynch Pa,istan
%ompany +aw "tudy 'e)t and 6e/ision "eries by Professional .usiness Publications
(P.P)
CS 4(*ience G The Forensic Accountant "FA&
"#ar$s: 1%%&
'his subject will focus on the law of e/idence as it applies to the Forensic Accountant
and in/estigator9 from the inception of an in/estigation through to presentation of
e/idence in court9 including e)pert e/idence; "tudents will e)plore the implications of
law for the identi<cation of sources of e/idence9 collection of e/idence and
presentation of e/idence in a manner lost suitable for the purposes of their
in/estigation and/or role in the litigation of a rele/ant matter; Adducing e/idence9
admissibility of e/idence and speci<c issues of e)pert e/idence will be considered;
%ommunication issues will be an underlying theme throughout9 speci<cally
accountant > lawyer communication;
Part 1
Inderstanding (/idence
'he Foundations of the +awE
An #ntroduction to the +aw of (/idenceE
'he Aims of the +aw of (/idenceE
6ele/ance and AdmissibilityE
Facts and Fact <ndingE
Part /
Dbtaining (/idence
Pre!'rial Procedures and the 6egulation of AccessE
'he Pri/ilege against "elf!#ncrimination and the 6ight to "ilenceE
%onfessionsE
#denti<cation (/idenceE
[27]
(/idence Dbtained by #llegal or Infair 4eansE
?isclosure and #mmunityE
+egal Professional Pri/ilegeE
Part 0
Adducing (/idence
'rial Procedures and the Principles of ProofE
.urden and "tandard of ProofE
Forms of Proof and Alternati/es to ProofE
=itnessesE ()amination of =itnessesE
8ulnerable and "uspect =itnessesE
Part 1
Ising (/idence
'he "cope and +imits of ()clusionary 6ulesE
'he "cope and 6ationale of the Gearsay 6uleE
'he Gearsay 6ule ()ceptions and 6eformsE
(/idence of %haracter and Dther 4isconductE
%ross!()amination of the AccusedE
Dpinion and ()pert (/idence
Reco::ene Reain!
1; 'he +aw of (/idence by #an ?ennis #".L15 18-25*8010 #".L1*
32818-25*801$ Publisher "weet & 4a)well +td "weet & 4a)well (dition -th
6e/ised edition
$; 'he +aw of (/idence by Pohn .ruce Lorton #".L15 115*$$$82$ #".L1*
328115*$$$82$ Publisher .iblio+ife9 ++% .iblio.a:aar9 ++%
*; 'he +aw of (/idence by ?a/id Paciocco9 +ee "tuesser #".L15 100$$11511
#".L1* 328100$$11513 Publisher #rwin +aw #nc (dition -th 6e/ised edition
-; (/idence (Nuestions & Answers) by %hristopher Allen9 published by %a/endish
Publishing %ompany9 +ondon;
CS 5Forensic Auitin! G Assurance "1%% #ar$s&
Ai:
'o de/elop ,nowledge and understanding of the process of carrying out the
assurance engagement and its application in the conte)t of the professional
regulatory framewor,;
#AIN CAPA+I8ITI(S
Dn successful completion of this paper9 candidates should be able to!
()plain the nature9 purpose and scope of assurance engagements
including the role of the e)ternal audit and its regulatory and ethical
framewor,
[28]
()plain the nature of internal audit and describe its role as part of o/erall
performance management and its relationship with the e)ternal audit
?emonstrate how the auditor obtains an understanding of the entity and
its en/ironment9 assesses the ris, of material misstatement (whether
arising from fraud or other irregularities) and plans an audit of <nancial
statements
?escribe and e/aluate information systems and internal controls to
identify and communicate control ris,s and their potential consequences9
ma,ing appropriate recommendations
#dentify and describe the wor, and e/idence required to meet the
objecti/es of audit engagements and the application of the #nternational
"tandards on Auditing
(/aluate <ndings and modify the audit plan as necessary
()plain how the conclusions from audit wor, are reBected in di@erent
types of audit report e)plain the elements of each type of report;
RATIONA8(
'he Forensic Audit and Assurance syllabus is essentially di/ided into se/en areas; 'he
syllabus starts with the nature9 purpose and scope of assurance engagements9
including the statutory audit9 its regulatory en/ironment9 and introduces professional
ethics relating to audit and assurance; #t then leads into internal audit9 including the
scope of internal audit as well as the di@erences between internal audit and e)ternal
audit; 'he syllabus then co/ers a range of areas relating to an audit of <nancial
statements; 'hese include planning and ris, assessment9 e/aluating internal controls9
audit e/idence9 and a re/iew of the <nancial statements; 'he <nal section then deals
with reporting9 including statutory audit reports9 management reports9 and internal
audit reports;
)(TAI8() SC88A+'S
A6 Auit Fra:eHor$ an Re!ulation
1; 'he concept of audit and other assurance engagements
$; "tatutory audits
*; 'he regulatory en/ironment and corporate go/ernance
-; Professional ethics and #FAPJs %ode of (thics and %onduct
+6 Internal auit
1; #nternal audit and corporate go/ernance
$; ?i@erences between the e)ternal auditor and the internal audit function
*; 'he scope of the internal audit function
-; Dutsourcing the internal audit function
0; #nternal audit assignments
C6 Plannin! an ris$ assess:ent
1; Dbjecti/e and general principles
$; Inderstanding the entity and its en/ironment
*; Assessing the ris,s of material misstatement and fraud
[29]
-; Analytical procedures
0; Planning an audit
1; Audit documentation
2; 'he wor, of others
)6 Internal control
1; #nternal control systems
$; 'he use of internal control systems by auditors
*; 'ransaction cycles
-; 'ests of control
0; 'he e/aluation of internal control components
1; %ommunication on internal control
(6 Auit e*ience
1; 'he use of assertions by auditors
$; Audit procedures
*; 'he audit of speci<c items
-; Audit sampling and other means of testing
0; %omputer!assisted audit techniques
1; Lot!for!pro<t organi:ations
F6 Re*ieH
1; "ubsequent e/ents
$; 7oing concern
*; =ritten representations
-; Audit <nali:ation and the <nal re/iew
A6 Re@ortin!
1; Audit reports
$; 6eports to management
*; #nternal audit reports
APPROACD TO (LA#ININA TD( SC88A+'S
'he syllabus is assessed by a three!hour paper based e)amination9 consisting of </e
compulsory questions; 'he bul, of the questions will be discursi/e but some
questions in/ol/ing computational elements will be set from time to time; 'he
questions will co/er all areas of the syllabus; Nuestion 1 will be a scenario!based
question worth *5 mar,s; Nuestion $ will be a ,nowledge!based question worth 15
mar,s; Nuestions *9 - and 0 will be worth $5 mar,s each;
Stuy Auie
A A')IT FRA#(EORM AN) R(A'8ATION
16 The conce@t o; auit an other assurance en!a!e:ents
[30]
a) #dentify and describe the objecti/e and general principles of e)ternal audit
engagements;
b) ()plain the nature and de/elopment of audit and other assurance
engagements;
c) ?iscuss the concepts of accountability9 stewardship and agency;
d) ?iscuss the concepts of materiality9 true and fair presentation and reasonable
assurance;
e) ()plain reporting as a means of communication to di@erent sta,eholders;
f) ()plain the le/el of assurance pro/ided by audit and other re/iew
assignments;
/6 Statutory auits
a) ?escribe the regulatory en/ironment within which statutory audits ta,e place;
b) ?iscuss the reasons and mechanisms for the regulation of auditors;
c) ()plain the statutory regulations go/erning the appointment9 rights9 remo/al
and resignation of auditors;
d) ?iscuss the types of opinion pro/ided in statutory audits;
e) "tate the objecti/es and principle acti/ities of statutory audit and assess its
/alue (e;g; in assisting management to reduce ris, and impro/e performance);
f) ?escribe the limitations of statutory audits
06 The re!ulatory en*iron:ent an cor@orate !o*ernance
a) ()plain the de/elopment and status of #nternational "tandards on Auditing;
b) ()plain the relationship between #nternational "tandards on Auditing and
national standards;
c) ?iscuss the objecti/e9 rele/ance and importance of corporate go/ernance;
d) ?iscuss the need for auditors to communicate with those charged with
go/ernance;
e) ?iscuss the pro/isions of international codes of corporate go/ernance (such as
D(%?) that are most rele/ant to auditors;
f) ?escribe good corporate go/ernance requirements relating to directorsJ
responsibilities (e;g; for ris, management and internal control) and the
reporting responsibilities of auditors;
g) Analy:e the structure and roles of audit committees and discuss their bene<ts
and limitations;
h) ()plain the importance of internal control and ris, management;
i) %ompare the responsibilities of management and auditors for the design and
operation of systems and controls;
16 Pro;essional ethics an IFAPFs Coe o; (thics an Conuct
a) ?e<ne and apply the fundamental principles of professional ethics of integrity9
objecti/ity9 professional competence and due care9 con<dentiality and
professional beha/ior;
b) ?e<ne and apply the conceptual framewor,;
[31]
c) ?iscuss the sources of9 and enforcement mechanisms associated with9 #FAPJs
%ode of (thics and %onduct;
d) ?iscuss the preconditions9 requirements of professional ethics and other
requirements in relation to the acceptance of new audit engagements;
e) ?iscuss the process by which an auditor obtains an audit engagement;
f) ()plain the importance of engagement letters and state their contents;
+ INT(RNA8 A')IT
16 Internal auit an cor@orate !o*ernance
g) ?iscuss the factors to be ta,en into account when assessing the need for
internal audit;
h) ?iscuss the elements of best practice in the structure and operations of
internal audit with reference to appropriate international codes of corporate
go/ernance;
/6 )iIerences betHeen the e>ternal auitor an the internal auit
;unction
a) %ompare and contrast the role of e)ternal and internal audit regarding audit
planning and the collection of audit e/idence;
b) %ompare and contrast the types of report pro/ided by internal and e)ternal
audit;
06 The sco@e o; the internal auit ;unction
a) ?iscuss the scope of internal audit and the limitations of the internal audit
function;
b) ()plain the types of audit report pro/ided in internal audit assignments;
c) ?iscuss the responsibilities of internal and e)ternal auditors for the pre/ention
and detection of fraud and error;
16 Outsourcin! the internal auit ;unction
a) ()plain the ad/antages and disad/antages of outsourcing internal audit;
26 Internal auit assi!n:ents
a) ?iscuss the nature and purpose of internal audit assignments including /alue
for money9 #'9 best /alue and <nancial;
b) ?iscuss the nature and purpose of operational internal audit assignments
including procurement9 mar,eting9 treasury and human resources
management;
C P8ANNINA AN) RISM ASS(SS#(NT
16 Objecti*e an !eneral @rinci@les
a) #dentify and describe the need to plan and perform audits with an attitude of
professional s,epticism;
b) #dentify and describe engagement ris,s a@ecting the audit of an entity;
c) ()plain the components of audit ris,;
d) %ompare and contrast ris, based9 procedural and other approaches to audit
wor,;
[32]
e) ?iscuss the importance of ris, analysis;
f) ?escribe the use of information technology in ris, analysis;
/6 'nerstanin! the entity an its en*iron:ent
a) ()plain how auditors obtain an initial understanding of the entity and its
en/ironment;
06 Assessin! the ris$s o; :aterial :isstate:ent an ;rau
a) ?e<ne and e)plain the concepts of materiality and performance materiality;
b) %ompute indicati/e materiality le/els from <nancial information;
c) ?iscuss the e@ect of fraud and misstatements on the audit strategy and
e)tent of audit wor,;
16 Analytical @roceures
a) ?escribe and e)plain the nature and purpose of analytical procedures in
planning;
b) %ompute and interpret ,ey ratios used in analytical procedures;
26 Plannin! an auit
a) #dentify and e)plain the need for planning an audit;
b) #dentify and describe the contents of the o/erall audit strategy and audit plan;
c) ()plain and describe the relationship between the o/erall audit strategy and
the audit plan;
d) ?e/elop and document an audit plan;
e) ()plain the di@erence between interim and <nal audit;
36 Auit ocu:entation
a) ()plain the need for and the importance of audit documentation;
b) ?escribe and prepare wor,ing papers and supporting documentation;
c) ()plain the procedures to ensure safe custody and retention of wor,ing
papers;
46 The Hor$ o; others
a) ?iscuss the e)tent to which auditors are able to rely on the wor, of e)perts;
b) ?iscuss the e)tent to which e)ternal auditors are able to rely on the wor, of
internal audit;
c) ?iscuss the audit considerations relating to entities using ser/ice
organi:ations;
d) ?iscuss why auditors rely on the wor, of others;
e) ()plain the e)tent to which reference to the wor, of others can be made in
audit reports;
) INT(RNA8 CONTRO8
'he following transaction cycles and account balances are rele/ant to this capability!
V 6e/enue9
V Purchases9
V #n/entory9
[33]
V 6e/enue and capital e)penditure9
V Payroll9
V .an, and cash;
16 Internal control syste:s
a) ()plain why an auditor needs to obtain an understanding of internal control
acti/ities rele/ant to the audit;
b) ?escribe and e)plain the ,ey components of an internal control system;
c) #dentify and describe the important elements of internal control including the
control en/ironment and management control acti/ities;
d) ?iscuss the di@erence between tests of control and substanti/e procedures;
/6 The use o; internal control syste:s by auitors
a) ()plain the importance of internal control to auditors;
b) ()plain how auditors identify wea,nesses in internal control systems and how
those wea,nesses limit the e)tent of auditorsJ reliance on those systems;
06 Transaction cycles
a) ()plain9 analy:e and pro/ide e)amples of internal control procedures and
control acti/ities;
b) Pro/ide e)amples of computer system controls;
16 Tests o; control
a) ()plain and tabulate tests of control suitable for inclusion in audit wor,ing
papers;
b) +ist e)amples of application controls and general #' controls;
26 The e*aluation o; internal control co:@onents
a) Analy:e the limitations of internal control components in the conte)t of fraud
and error;
b) ()plain the need to modify the audit strategy and audit plan following the
results of tests of control;
c) #dentify and e)plain managementJs ris, assessment process with reference to
internal control components;
36 Co::unication on internal control
a) ?iscuss and pro/ide e)amples of how the reporting of internal control
de<ciencies and recommendations to o/ercome those de<ciencies are
pro/ided to management;
( A')IT (-I)(NC(
16 The use o; assertions by auitors
a) ()plain the assertions contained in the <nancial statements;
b) ()plain the principles and objecti/es of transaction testing9 account balance
testing and disclosure testing;
c) ()plain the use of assertions in obtaining audit e/idence;
/6 Auit @roceures
[34]
a) ?iscuss the sources and relati/e merits of the di@erent types of e/idence
a/ailable;
b) ?iscuss and pro/ide e)amples of how analytical procedures are used as
substanti/e procedures;
c) ?iscuss the problems associated with the audit and re/iew of accounting
estimates;
d) ?escribe why smaller entities may ha/e di@erent control en/ironments and
describe the types of e/idence li,ely to be a/ailable in smaller entities;
e) ?iscuss the quality of e/idence obtained;
06 The auit o; s@eciBc ite:s
For each of the account balances stated in this sub capability!
V ()plain the purpose of substanti/e procedures in relation to <nancial
statement assertions9
V ()plain the substanti/e procedures used in auditing each balance9 and
V 'abulate those substanti/e procedures in a wor, program;
a) 6ecei/ables!
i) ?irect con<rmation of accounts recei/able
ii) Dther e/idence in relation to recei/ables and prepayments9 and
iii) 'he related income statement entries;
b) #n/entory!
i) #n/entory counting procedures in relation to year!end and continuous in/entory
systems
ii) %ut!o@
iii) AuditorJs attendance at in/entory counting
i/) ?irect con<rmation of in/entory held by third parties9
/) Dther e/idence in relation to in/entory;
c) Payables and accruals!
i) "upplier statement reconciliations and direct con<rmation of accounts payable9
ii) Dbtain e/idence in relation to payables and accruals9 and
iii) 'he related income statement entries;
d) .an, and cash!
i) .an, con<rmation reports used in obtaining e/idence in relation to ban, and cash
ii) Dther e/idence in relation to ban, and cash9 and
iii) 'he related income statement entries;
e) 'angible non!current assets and long!term liabilities!
i) (/idence in relation to non!current assets and
ii) Lon!current liabilities and
iii) 'he related income statement entries;
[35]
16 Auit sa:@lin! an other :eans o; testin!
a) ?e<ne audit sampling and e)plain the need for sampling;
b) #dentify and discuss the di@erences between statistical and non!statistical
sampling;
c) ?iscuss and pro/ide rele/ant e)amples of9 the application of the basic
principles of statistical sampling and other selecti/e testing procedures;
d) ?iscuss the results of statistical sampling9 including consideration of whether
additional testing is required;
26 Co:@uter=assiste auit techni?ues
a) ()plain the use of computer!assisted audit techniques in the conte)t of an
audit;
b) ?iscuss and pro/ide rele/ant e)amples of the use of test data and audit
software for the transaction cycles and balances mentioned in sub!capability
*;
c) ?iscuss the use of computers in relation to the administration of the audit;
36 Not=;or=@roBt or!aniJations
a) Apply audit techniques to small not!for!pro<t organi:ations;
b) ()plain how the audit of small not!for!pro<t organi:ations di@ers from the
audit of for!pro<t organi:ations;
F R(-I(E
16 Subse?uent e*ents
a) ()plain the purpose of a subsequent e/ents re/iew;
b) ?iscuss the procedures to be underta,en in performing a subsequent e/ents
re/iew;
/6 Aoin! concern
a) ?e<ne and discuss the signi<cance of the concept of going concern;
b) ()plain the importance of and the need for going concern re/iews;
c) ()plain the respecti/e responsibilities of auditors and management regarding
going concern;
d) ?iscuss the procedures to be applied in performing going concern re/iews;
e) ?iscuss the disclosure requirements in relation to going concern issues;
f) ?iscuss the reporting implications of the <ndings of going concern re/iews;
06 Eritten re@resentations
a) ()plain the purpose of and procedure for obtaining written representations;
b) ?iscuss the quality and reliability of written representations as audit e/idence;
c) ?iscuss the circumstances where written representations are necessary and
the matters on which representations are commonly obtained;
16 Auit BnaliJation an the Bnal re*ieH
a) ?iscuss the importance of the o/erall re/iew of e/idence obtained;
[36]
b) ()plain the signi<cance of unadjusted di@erences;
A R(PORTINA
16 Auit re@orts
a) ?escribe and analy:e the format and content of unmodi<ed audit reports;
b) ?escribe and analy:e the format and content of modi<ed audit reports;
/6 Re@orts to :ana!e:ent
a) #dentify and analy:e internal control and system de<ciencies and their
potential e@ects and ma,e appropriate recommendations to management;
06 Internal auit re@orts
a) ?escribe and e)plain the format and content of internal audit re/iew reports
and other reports dealing with the enhancement of performance;
b) ()plain the process for producing an internal audit report;
R(A)INA 8IST
ACCAFs oNcial @ublishers:=
+PP 8earnin! #eia
Contact nu:ber: O11"%&/% 541% ////
Eebsite: HHH6b@@6co:
Ma@lan Publishin!
Contact nu:ber: O11"%&115 757 %3/7
Eebsite: HHH6$a@lan@ublishin!6co6u$
Aitional reain!:=
%osserat9 7;=9 4odern Auditing9
("econd edition)9 Pohn =iley and "ons +td; ($55-)
Alternati/e reading!
Accountancy 'uition %entre (A'%) #nternational
%ontact infoWatc!global;com
=ebsite www;atc!global;com
#nternational Financial Publishing +imited
%ontact number S-- (5)1*-- 20112-
=ebsite www;ifpboo,s;com
PROF(SSIONA8 STAA( "ARO'P I&
PS 7 Treasury G Fore> #ana!e:ent "1%% #ar$s&
Part 1 Treasury #ana!e:ent "2% #ar$s&
'raditionally9 Forensic Accountants (FAs) ha/e been focusing on cash management
and in/estment decisions; #n many organi:ations9 management of cash assets
continues to be a ,ey aspect of treasury function; (@ecti/e cash management adds
signi<cantly to the liquidity and pro<tability of an organi:ation; #n fact9 treasury is a
pro<t center in many ban,s and companies;
'he dynamics of <nancial mar,ets the world o/er are undergoing a transformation as
businesses are increasingly getting globali:ed and more and more economies are
becoming mar,et!dri/en; Dne of the major consequences of this changing scenario is
the increasing /olatility in money supply9 credit o@!ta,e9 interest rates9 e)change
[37]
rates and general price le/els; 'his has added a new dimension of ris, management
to the traditional functions of treasury managers;
'his part of treasury 4anagement introduces the subject to the candidates and
facilitates their assimilation of the ,nowledge and s,ills required for e@ecti/e treasury
management;
Course Co*era!e
'his part co/ers the following topics!
16 Sco@e an Functions o; Treasury #ana!e:ent
%orporate Finance and its lin,ages with other Functional areas of
4anagement
'he Key ?ecisions #n/estment ?ecision and Financing ?ecision
'he role of Forensic Accountant "FA& as %hief Financial DRcer (%FD)
A %onceptual framewor, for treasury function
6esponsibilities of the 'reasurer
Funds 4anagement
Foreign ()change 4anagement
6is, 4anagement
/6 Financial Forecastin!
#ntroduction to Forecasting 'echniques
Financial Forecasting 'echniques
"ales Forecasting
%ash Flow Forecasting
.udgeting and Financial Planning
06 Short ter: Financial Plannin!
(stimating =or,ing %apital 6equirements
4anaging +iquidity
4anaging 6ecei/ables and Payables
4anaging #n/entory
4anaging "hort 'erm Funds > ()cess +iquidity and +iquidity %runch
16 Financial #ar$ets an Instru:ents
4oney 4ar,et and 4oney 4ar,et #nstruments
6epos
%ommercial Paper
%erti<cate of ?eposits
#nter!corporate ?eposits
.an,ers Acceptances
'reasury .ills
Agency ?iscount Lotes
Floating 6ate #nstruments
4oney 4ar,et 4utual Funds > #n/estment objecti/es and criteria
%apital 4ar,et and %apital 4ar,et #nstruments
26 8on! Ter: Funs
(stimating +ong 'erms Leeds
%apital "tructure ?ecisions
[38]
"ources and %ost of %apital
%ape) ?ecisions
?i/ersion of Funds > ?angers
+ong 'erm Planning and Dutloo,
36 Internal Treasury controls
"tructure and Drgani:ation of 'reasury
#nternal Audit
Accounting and %ontrol
Physical controls
%ustodial %ontrols
#nsurance %ontrols
#nformation "ystems and 6eporting
4easuring 'reasury Performance
46 Ta> Plannin! an #ana!e:ent
Dpportunities for 'a) Planning
'a) #ssues 6elating to Lon!routine 'ransactions
'a) %ompliance and 4anagement
56 #ana!in! +an$ru@tcy
Financial %risis and .an,ruptcy
(arly =arning "ignals
6eorgani:ations Plans
Priority %laims
%reditor 6elations > "ettlement with %reditors 8oluntary +iquidation
76 +an$in! Relationshi@s
"election of .an,ers
(lectronic .an,ing
Itili:ation of .an,ing "er/ices
6elationship 4anagement with .an,ers and +enders
%ommunications and Legotiations
Gonesty and #ntegrity in 6elationship 4anagement
1%6 #ana!in! In*estors Relationshi@s
#n/estment %ommunity
#n/estors
Analysis
#ntermediaries
6egulators
#nformation needs of #n/estment %ommunity
(@ecti/e #n/estor 6elations Programs
Annual 4eetings
Gandling %risis and Gostility
%urrent ?e/elopments
Part / Forei!n (>chan!e #ana!e:ent "2%
#ar$s&
[39]
'he foreign e)change mar,et is the largest of all the mar,ets in the world; 'his is a
$-!hour mar,et9 which mo/es from one <nancial center to another9 across the world;
Gigh /olatility is a distinct feature of the foreign e)change mar,et; #n the wa,e of
increasing integration of world economies9 the ris,s of in/esting globally in terms of
e)change ris, and country ris, need to be understood9 measured and managed
e@ecti/ely; "imilarly9 cash Bows of foreign currencies from international operations
and rising of resources from foreign mar,ets need to be carefully monitored and
hedged against the potential ris,s;
The Forensic Accountant "FA& should ha/e an appreciation of the international
economic en/ironment9 the institutional mechanism to facilitate as well regulate
foreign e)change Bows9 the arbitrage opportunities9 and the international capital and
money mar,et instruments; 'he factors a@ecting e)change rates9 forecasting of
e)change rates9 the foreign e)change trading mechanisms and practices9 the
speculati/e aspects in foreign e)change dealings9 transactional dimensions of
international trade9 and international ta)ation are also to be appreciated to deepen
the understanding of and successfully operate in the foreign e)change mar,et;
'he /olatility of currencies in the international mar,ets highlights the need for
e@ecti/e management of e)change ris, by using /arious ris, management tools and
hedging techniques; 'here is growing application of deri/ati/es li,e options and
futures in the foreign e)change mar,et; 'his part on Foreign ()change 4anagement
helps the candidates analy:e the international <nancial mar,ets in terms of their
en/ironment9 eRciency9 opportunities and challenges; Further9 this part facilitates an
understanding of the fundamental factors that a@ect the mar,ets and e)plains the
operational aspects of dealing in foreign e)change mar,ets;
Course Co*era!e
16 International (cono:ics an International
Finance
'he #nterdependence of Lational (conomies
%omparati/e Ad/antage
#nternational 'rade
.alance of Payments
?ynamics of ()port!led 7rowth
'he ='D
4#7A
'rading .loc,s
"uper *51 and "pecial *51
'he 7lobal (conomy
'he #nternational 4onetary "ystem
%apital Flows and Flight
#nternational +iquidity
()ternal ?ebt and (quity Financing
'he 6ole of #4F9 #.6?9 ?e/elopment .an,s and
#nternational
/6 In*estors
Foreign ()change 4ar,ets
%ash and "pot ()change
(urocurrency 4ar,ets
'he 6ole of %ommercial .an,s
4echanics of 4a,ing a Foreign Payment
[40]
"=#F'
%osts associated with #nternational Payments
16 )eter:ination o; (>chan!e Rates
Factors a@ecting ()change 6ates
'he +aw of Dne Price
Purchasing Power Parity
#nterest Parity and its +imitations
Forecasting Fore) 6ates
'he Forward 6ate as a "hort > 'erm Forecast 'echnical Forecasts
(conomic 4odels
Forecasting of Fi)ed ()change 6ates from %on/ertible %urrencies
/6 Fore> Train!
Fore) 'rading #nfrastructure and networ,s
%ontrols on Drder Placing
%ross 6ates
"peculation
Psychology of Fore) 'rader
%omputeri:ed 'rading Program
#nformation Analysis for 'rading
06 Financin! o; International Trae
'he 'ransactional ?imension of #nternational 'rade
4anaging #nternational 'rade 'ransactions
+etter of %redit
%ash in Ad/ance and %onsignment "ales
.an,erJs Acceptances
%ounter trade
#nternational .an,ing "er/ices
16 International Eor$in! Ca@ital #ana!e:ent
4anaging 4ultinational Funds Flows
#nternational ?imensions of 'a)ation
"trategies to a/oid Lational 'a)es and 6estrictions
%entrali:ed /s; ?ecentrali:ed %ash 4anagement
4anaging #nternational Accounts 6ecei/ables
#nternational Factoring9 and Forfeiting
6ecei/ables #nsurance
(Rciency of 4oney 4ar,et
26 #ultinational Cor@orations
'he growth of 4ultinationals
'ransfer Pricing
%ountry 6is,
6elationships with 7o/ernment
Public 6elations
%urrent ?e/elopments
Reco::enin! Reain!
[41]
The +an$ers Danboo$ 0
r
(ition by =illiam .aughn9 'homas "torrs and %harles
=al,er
Finance o; International Trae 4
th
(ition by %owdell/Gyde/=atson
Finance o; Forei!n Trae G Forei!n (>chan!e latest (ition by Asrar G "iddiqi
International Trae. In*est:ent G )ebt #ana!e:ent published by the #nstitute
of .an,ers Pa,istan (#.P);
+an$ers International Trae Finance G Forei!n (>chan!e -olu:e I P II
published by the #nstitute of .an,ers Pa,istan (#.P)
A*ance Financial #ana!e:ent "INT&. #".L15 18-8581$3-9 #".L1*
32818-8581$31
Publisher 7et 'hrough 7uides
(dition 6e/ised edition
Treasury O@erations an the Forei!n (>chan!e Challen!e
.y ?imitris L %horafas
#".L15 5-210-*3*- #".L1* 3285-210-*3*5
Publisher Pohn =iley and "ons +td Pohn =iley & "ons #nc
Alobal Treasury #ana!e:ent
?ere, A 6oss
#".L15 1803280135 #".L1* 3281803280130
Publisher #nforma Professional #nforma .usiness Publishing
ProBtin! Eith Fore>
Pohn Pagerson9 " =ade Gansen
#".L15 5521-1-10- #".L1* 3285521-1-103
Publisher 4c7raw!Gill (ducation ! (urope 4c7raw!Gill Professional
(dition illustrated edition
O@@ortunities an Challen!es in the Alobal +usiness
8 K 7autam9 . " .handari9 " 4 Anas #qbal9 8i/e, Kapre
#".L15 812--12181 #".L1* 328812--12188
Publisher ()cel .oo,s
PS 1%: Ris$ #ana!e:ent P +asics G Tools "1%%
#ar$s&
Part 1 Ris$ #ana!e:ent "+asics&"2% #ar$s&
Introuction to Ris$ #ana!e:ent
(lements of uncertainty
"ources of 6is,
?ecision 4a,ing Process
'ypes of 6is,s dealt by treasurers
#nterest 6ate 6is,
Purchasing Power 6is,
%urrency 6is,!'ransaction9 'ranslation and (conomic 6is,s
%ompensation for 6is, > ta,ing implications of %urrency 6is, for a Firm
+imitations of 6is, 4anagement
Quantitati*e Techni?ues
(conomic Applications of 7raphs and (quations
?eri/ati/es and the 6ules of ?i@erentiation
[42]
Ises of ?eri/ati/e in (conomics
+inear Programming
#ntegral %alculus
?i@erential (quations
Probability and Probability ?istributions
4athematics of Finance
%ompounding and ?iscounting
%ontinuous %ompounding
#acro econo:ies Factors
Lational #ncome Accounting
#ncome ?etermination and 4ultiplier
'he 7oods 4ar,et9 4oney 4ar,et and "imultaneous in both the 4ar,ets
4onetary and Fiscal Policy
'he ?emand for 4oney
4oney "upply9 %redit %reation and the 6ole of %entral .an,
Fi>e Inco:e Instru:ents. Prices Ciels
%haracteristics of debt instruments
'reasury yield cur/e
Factors inBuencing the interest le/els
Price /olatility
#nterest rate sensiti/ity of asset /alue
Nuantifying interest rate ris,
Gedging and interest rate ris,
Gedging and anticipated debt o@ering > preliminary
%onsiderations <)ing a rate
%apping a rate
Fi)ed income ris, management > design and practice
Interest Rate Ris$
%omposition of interest rate ris,
'he structure of interest rates
#nterest rate theories
Gedging with duration
Asset 8iability #ana!e:ent
6ate sensiti/e 7ap 4anagement
6ate adjusted 7ap 4anagement
?uration Analysis
Introuction to )eri*ati*es
Gistorical Perspecti/e
'he 4echanics of ?eri/ati/e 4ar,ets
'he 6ole of %learing Gouses
4ar,et Players
'rading 'echniques
Futures
%ash and Futures 4ar,ets for ?ebt #nstruments
[43]
'he Foreign %urrency Futures 4ar,et
'reasury bon, and 'reasury Lote Futures
'heir Prices
Gedging with '!.ond Future Arbitraging
Foreign ()change Futures and Forward %ontracts
'heir Prices
Application %ase "tudies
Part / Ris$ #ana!e:ent "Tools& "2% #ar$s&
The Forensic Accountants "FAs& need to familiari:e themsel/es well with /arious
ris, management tools and their features; ?eri/ati/e products li,e options9 futures
and <nancial swaps were originally created for hedging ris,s; 'hese deri/ati/e
products <nd application in capital mar,ets9 money mar,ets and currency mar,ets;
'his Part co/ers in!depth features of these deri/ati/e products which include
identi<cation of the type of ris, and management of the ris, using each type of
product strategies9 pricing and /aluation; =hile using these products9 di@erence
between hedging ris, and speculation needs to be clearly understood; 'he le/el of
ris, can be reduced by using appropriate deri/ati/e products; #n the pursuit of higher
pro<ts9 treasury managers may use deri/ati/es and in the bargain e)pose the <rm to
higher le/els of ris,; Ise of these products unmindful of the ris, le/el for generating
higher pro<ts leads to speculation which may in turn lead to <nancial disaster of the
entire business;
#t is important for treasury managers to understand the accounting and ta)
implications for business when they use these deri/ati/e products; Dtherwise9
apparent gains made using deri/ati/e products ay not result consideration
accounting and ta) aspects may in the o/erall conte)t9 result in loses;
'his Part addresses issues related to ethical dilemmas which are often faced by
treasury managers in the practice of their profession;
Course Co*era!e
'his part co/ers the following topics;
Dptions
Financial "waps
Pricing of ?eri/ati/es a generic approach
"ources and 'ypes of ()change 6is,
4anaging ()change 6is,
Gedging & "peculation using ?eri/ati/es
Accounting and 'a) #mplications
(thical ?ilemmas
%urrent ?e/elopment
8earnin! +eneBts
Inderstand the mechanics of options and swaps
Acquire the s,ills to use deri/ati/es for ris, management including pricing
Inderstand the distinction between hedging and speculation and the
implications
Appreciate the comple)ities in/ol/ed ethical dilemmas
[44]
)etaile Curriculu:
O@tions
"toc, Dptions
#nterest 6ate Dptions
%urrency Dptions
Dptions on Futures %ontracts
'rading "trategies with Dptions
Factors A@ecting Dption Prices
.lac,!"choles 4odel of Dption Pricing
Dther 4odels of Dption Pricing
()otic Dptions
Application %ase "tudies
Financial SHa@s
#nterest 6ate "waps
%urrency "waps
Dption on "wap
Ises of "waps
4echanics of "wap 'ransactions
8aluation of "waps
Application %ase "tudies
Pricin! )eri*ati*es P A Aeneral A@@roach
8alue of the Inder laying Asset
6ole of #nterest 6ates in Pricing of ?eri/ati/es
8aluation of "ecurities ?ependent on "e/eral 8ariables
4ar,et Price of 6is,
Nuantos
Sources an Ty@es o; (>chan!e Ris$
?i@erence between 6is, and ()posure
'ransaction ()posure
'ranslation ()posure
(conomic ()posure
4easurement of ()posure
#ana!in! (>chan!e Ris$
4anagerJs ?ilemma > to Gedge or not Gedge ?i@erence between
#nternal and e)ternal Gedging 'echniques
"uitability of 8arious 'echniques to ?i@erent "ituations
Ise of Forwards9 Futures9 Dptions and "waps for 4anaging ()posure
Ise of 4oney 4ar,et for Gedging ()posure
Gedging /ia +eading and +agging
Gedging /ia %urrency of #n/oicing
Gedging /ia "ourcing
%ost of Gedging
S@eculation Hith )eri*ati*es
"peculation and 4ar,et eRciency
[45]
.ad e@ects of "peculation
=ays to "peculate in the ?eri/ati/es 4ar,et
4ar,et #neRciencies and "peculation Dpportunities
6ecent %ase "tudies of ?isastrous "peculation in ?eri/ati/es
Accountin! an Ta> I:@lications
'ranslation of Foreign %urrency 'ransactions
'ranslation of Foreign > %urrency ?enominated Assets and +iabilities
'ranslation of Accounts of a 6elated Foreign (ntity
Accounting for ?eri/ati/es
Accounting "tandards in 4ajor %ountries
'a) #mplications of #nternational 'ransactions
?ouble > 'a)ation A/oidance Agreements
'a) #mplications of 'ransactions #n/ol/ing ?eri/ati/es
(thical )ile::as
6ole of #nternal %ontrols in 'reasury Dperations
#mportance of (thical .eha/ior
Principle of 'ransparency
?isclosure to 4anagement and "hareholders
Agency Problems
%ode of Professional %onduct and "tandards of Practice
Reco::ene Reain!s:=
Ris$ #ana!e:ent by 4ichel %hroury9 ?an 7alali and 6obert 4ar,9 4c7raw Gill;
Financial Ris$ #ana!e:ent: .rian A; (ales9 4c7raw Gill;
Financial #oellin! ;or +usiness )ecisions: .ryan Ke@ord9 %hartered #nstitute of
4anagement9 Kogan Page
The +an$ersF Danboo$: (dited by =illiam G; .aughn9 'homas #; "torrs and
%harles (; =al,er9 'opman #nternational (dition9 'o,yo
Forei!n (>chan!e Danboo$: Paul .ishop & ?on ?i)on9 4c7raw Gill #nc;
Financial Ris$ #ana!e:ent in +an$in! = The Theory an A@@lication o;
Asset an 8iability #ana!e:ent: Iyemura9 ?ennis 7; & /an ?e/enter9 ?onald 6;9
4c7raw!Gill
Per;or:ance :ana!e:ent: 6ichard "; =illiams9 'homson Press;
8iberation #ana!e:ent: 'om Peters9 Fawcett %olumbine9 Lew Qor,;
The Talent #ana!e:ent Danboo$: .erger9 +ance A; & .erger9 ?orothy 6;9
4c7raw!Gill
PS 11 Ine@enent Accountin! (>@erts
Re@orts "1%% #ar$s&
'his subject draws on professional guidelines9 judicial re/iews and documented
e)periences and outcomes of the preparation and defense of independent e)pert
reports in a wide range of litigation and dispute resolution matters; 'he subject
material will deal speci<cally with acceptance of engagement as an independent
e)pert especially issues of appropriateness of e)pertise9 training and independence9
professional guidelines dealing with conducting an in/estigation9 documentation of
[46]
the in/estigation and the product of the in/estigation in the form of the independent
e)pert report;
Attention will also be gi/en to the e)periences of practitioners in the defense of
e)pert reports in a court of law or similar forum; %ommon mista,es and pitfalls of
acceptance of an independent e)pert engagement9 in/estigation and preparation of
an e)pert report and appearance of as an e)pert witness will also be addressed;
4aterials will speci<cally draw on judicial and similar re/iews of the appropriate role9
duties and obligations of the independent e)pert;
From opposing the local Forensic Accountant "FA& to tac,ling the .ig Fi/e !
(/erything you need to ,now about accounting in the courtroom; =ith the recent
boom in litigation and malpractice charges concerning ta)9 accounting9 <nancial
litigation9 and fraud disputes9 more and more accounting professionals are being
hired as e)pert witnesses; Qet9 few lawyers ha/e a full understanding of what
accountants can contribute to their cases; And few accountants are familiar enough
with the legal system to recogni:e e/erything they ha/e to o@er as an e)pert
witness; #n turn9 many rele/ant issues are missed and <nancial disputes are often
settled with unfa/orable outcomes; %oncei/ed and written in the trenches9 R(>@ert
Eitnessin! in Forensic Accountin!: A Danboo$ ;or 8aHyers an
AccountantsR candidly shows how to be successful in the courtroom through the
hands!on e)periences of both a Forensic Accountant (FA) and a trial attorney; Teph
'elpner and 4ichael 4oste, guide you through the entire judicial process ! re/ealing
their own and othersF mista,es and triumphs along the way and presenting guidelines
for e/erything from choosing an accountant to analy:ing the opposing e)pertFs
deposition; 'he law of ci/il procedure9 e/idence9 e)pert opinions9 trial procedure9 and
the presentation of e)pert testimony are a mystery to many accountants and e/en
some lawyers; 'his straightforward boo, pulls together all the essential information
on the topic; Pro/iding numerous case studies9 annotated court documents9 e)pert
witness reports9 and an actual trial transcript of an e)pertFs testimony9 R(>@ert
Eitnessin! in Forensic Accountin!: A Danboo$ ;or 8aHyers an
AccountantsR helps you disco/er the rele/ant issues and facts needed to win the
dispute; +awyers Know how and when to choose and wor, with the right Forensic
Accountant (FA)E determine whether to hire your Forensic Accountant (FA) as a
consultant or an e)pert witnessE decide how early to bring the accounting e)pert in
on the caseE disco/er e/erything that Forensic Accountants (FAs) can accomplish for
youE match the accounting e)pert with the job to be doneE help the accountant do a
superior job in disco/eryE use the Forensic Accountant (FA) to the greatest bene<tE
as, the right questions during direct and cross!e)aminationE and9 build a successful
wor,ing relationship with the Forensic Accountant (FA); Accountants learn how to
best ad/ise lawyers during disco/ery and litigationE disco/er the procedural and
e/identiary rules that most often a@ect Forensic Accountant (FA) specialistsE ,now
how to respond and what to e)pect while youFre on the witness standE successfully
rebut the opinions of the opposing e)pert accountant Perform superior ser/ices in
disco/ery9 accounting guidance9 and writing e)pert reportsE ,now how to write a job
engagement letter and negotiate feesE and9 see how an e)pert supported the
/aluation of a particular business in accordance with judicial requirements .uild a
successful wor,ing relationship with the lawyer;
Course Outlines
The Forensic Accountant "FA&

A Forensic Accountant as ()pert =itnesses or %onsultant
()pert =itness
%onsultant
[47]
=hen the Forensic Accountant should be hired for +itigation 4atters
=here to <nd an ()pert Forensic Accountant
4ust the Accounting ()pert =itnesses be Forensic Accountant (FA) by 'he
#nstitute of Forensic Accountants of Pa,istan (#FAP)
Gow to determine whether the 6ight Forensic Accountant has been selected
Gow the ()pert prepares for and responds to the #nitial #nter/iew by the
+awyer
=hat a %urriculum 8itae should contain9 representati/e engagements in
Forensic Accounting9 e)pert witnessing and litigation support
.usiness 'ermination
.an,ruptcy
+oss of (arnings
Accounting for Assets
Antitrust Price Fi)ing %ommunication9 Petition of Appeal
=ater Itility 6ate ?ispute
'rademar, #nfringement Pro<ts
#ndependent %ontractor or (mployee
.rach of %ontract
4iscellaneous Dther +itigation
6epresentati/e wor, in 'a) Lon +itigation 4atters
.oo,s and articles written
%ontinuing Professional (ducation
(ducation and %orporate .usiness %lients etc
Articles and %olumns
'eaching ()perience
(mployment
(ducation Awards etc
+icenses and %erti<cates
Professional 4embership
Accounting Gonors and Awards
Attorney 6eference
The Accountin! (>@ert Eitness
#ntroducing the Attorney to an Accounting ()pert =itness
'he relationship between the Attorney and the Accounting ()pert =itness
'he importance of the engagement letter
'he ()pertJs determination of where to begin
'he general responsibility of the Attorney to the ()pert =itness
'he AttorneyJs responsibility to the testimony of the Accounting ()pert
=itness
+egal quali<cation of the Accounting ()pert =itness
'he general requirement of competency
+ac, of personal ,nowledge
'he oath or aRrmation
Dther grounds for disqualifying lay witnesses
Dpinions from lay witnesses
4i)ed e)pert and lay opinions
The (>@ertFs ,ob (n!a!e:ent 8etter
'he importance of a job engagement letter
()amples of job engagement letters
Ehere to +e!in
[48]
.egin with a philosophy and ,nowledge of Forensic %onsulting and e)pert
=itnessing
'he ma,ing of a successful Accounting ()pert =itness
%ontinuing (ducation
()pert engaged before a dispute has started through the court system
()pert engaged after the dispute is in court
Petitions9 #nterrogati/es9 Drders and ?epositions
.asic concepts and techniques
=hat are the factsM
=hat are the #ssuesM
=here and how do # resol/e the issuesM
=here do # beginM
Gow do # proceedM
Gow do # ,now when # am <nishedM
Gow should # report my <ndingsM
'he ()pertJs wor, begins
#nterrogatories
#nterrogatory Lo;$
Answer to #nterrogatory Lo;$
%ounterclaim
Application for temporary hearing
?eposition of Plainti@ ()pert
DoH to Continue
?isco/ery
?eposition of the ()pert =itness for the city of 6acine
?irect ()amination
'he #ssues
'he =or, Program
'he =or,ing Papers
'he ()pertJs 6eport
6eport #ssued by the ()pert
Substance *ersus For: an the Non;actual Fact 1%7
'he most important concepts of Forensic Accounting and ()pert =itnessing
=hat %auses 'estimony or 6eports to be 6ejected
=hat are #ssuesM
"ection 11$ 'rade or .usiness ()penses
"ection 11$ (c) #llegal .ribes9 Kic,bac,s and Dther Payments
=hat is the "igni<cant #ssuesM
'he Lonfactual Fact
'he Lonfactual Fact in Action
"ubstance /ersus Form and the Lonfactual Fact 6ecogni:ed
?eposition of 4ichael Pames
?irect ()amination
%ross ()amination
Inderstanding "imple and .asic Accounting
"tatement of Facts
%ommentary
Knowing and Inderstanding Facts 4eans #ssues will 6esol/e 'hemsel/es
[49]
The (Iect o; the Attorney P Client Pri*ile!e an Eor$ Prouct
)octrine
Preface to the Attorney 6eading 'his %hapter
'he Attorney > %lient Pri/ilege
'he 7eneral 6equirements for any Pri/ilege
6equirements for Application of the Attorney > %lient Pri/ilege
'he meaning of A%ommunicationC
'he 4eaning of A+awyerC
'he meaning of A%lientC
'he meaning of ADbtaining +egal Ad/ice or "er/icesC
'he meaning of A#ntended to be %on<dentialC
=ai/er of the Pri/ilege
'he wor, Product ?octrine
'he AttorneyJs Preparation of the case $$-
'he =or, Product 6ule as stated by the Federal %ourts
?isco/ery of =or, Product
?isco/ery of Drdinary =or, Product and Dpinion =or, Product
?isco/ery of 'rial Preparation ()perts
=ai/er of the =or, Product Protection
Gow Pri/ilege and =or, Product Protection can a@ect the decisions and wor,
of the ()pert
Research Sources ;or the (>@ert
#ntroduction
Lothing but the facts
Filling in the .ac,ground
?o you Qahoo
?onJt do #t Qourself
%orporate Files
The (>@ertFs Eritten Re@ort
'he 6equirements for a 6eport
'he contents of the 6eport
'he writing of the e)pertJs 6eport
Analysis of 6eports
()pert 6eport to Goward =illiam %onse,i on 8aluation of the %onse,i ?ri/e >
#n
Ising ()perience from pre/ious cases
The (>@ertF Testi:ony
Reco::ene Reain!
1; ()pert =itnessing in Forensic Accounting by =alter P; Pagano
$; ()pert =itnessing in Forensic Accounting A Gandboo, for +awyers and
Accountants by Teph 'elpner and 4ichael 4oste,
PS 1/ +an$in! G Insurance 8aHs "1%%
#ar$s&
Part 1 +an$in! 8aHs "2% #ar$s&
1; +an$in! Co:@anies Orinance. 173/ G /%%3
[50]
'his is the fundamental law under which all ban,s e)ist and operate; As such9
candidates are e)pected to acquire a detailed ,nowledge of this law;
/6 STAT( +ANM OF PAMISTAN ACT
%andidates must acquire a general ,nowledge of this law particularly those
pro/isions which gi/e powers to the "tate .an, to regulate and o/ersee the
wor,ing of a .an,;
*; FOR(IAN (LCDANA( R(A'8ATION ACT AN) (LCDANA(
CONTRO8 R(A'8ATIONS
%andidates are e)pected to ha/e a general ,nowledge of the pro/isions of this law
and regulations particularly those pro/isions which a@ect ban,s operations as an
Authori:ed ?ealer;
16 FINANCIA8 INSTIT'TIONS "R(CO-(RC OF FINANC(S&
OR)INANC(. /%%1
'his is the law which ma,es special pro/isions for reco/ery of ban,sF dues from its
customers; %andidates are e)pected to ha/e a general o/er all ,nowledge of this
law so that they are familiar with its requirements for initiating
legal actions against defaulting customers and ultimate reco/ery; Pro/ision of this
law which enables ban,s to enforce its mortgages without the inter/ention of
courts must be thoroughly mastered by candidates as they are of utmost
importance for ensuring prompt reco/ery of dues of a ban,;
26 PR')(NTIA8 R(A'8ATIONS OF STAT( +ANM
%andidates must be familiar with these regulations as a ban,er is
e)pected to ,now them to be able to ensure that he is able to conduct correctly
the business of the ban, without committing a breach of any of them;
36 'NIFOR# C'STO#S AN) PRACTIC(S FOR )OC'#(NTARC
CR()ITS
'his is a /ery important document and has the force of law; #t pro/ides for the
manner in which +etter of %redit transactions are handled; %andidates must study
these pro/isions in detail as they will need to be well familiar with them for
handling foreign trade business of the ban,;
46 OFF(NC(S IN R(SP(CT OF +ANMS "SP(CIA8 CO'RTS&
OR)INANC(
%andidates must study in detail the pro/isions of this law which pro/ide for
/arious o@ences in respects of dealings between a ban, and its customers and
also o@ences committed by ban, sta@ in the course of performance of their duties
in the ban,;
56 IS8A#IC +ANMINA
%andidates must familiari:e themsel/es with /arious modes of non!interest based
and sharia compliant <nancing; %andidates should familiari:e themsel/es with
/arious circulars issued by "tate .an, of Pa,istan from time to time prescribing
/arious modes under which ban,s can pro/ide <nance to their customers;
76 #ISC(88AN(O'S 8AES
'here are a number of laws e;g; .an,s (Lationali:ation) Act9 Lational .an, of
Pa,istan Act9 Agricultural ?e/elopment .an,9 #ndustrial ?e/elopment .an,9 etc;9
which a@ect the operations of indi/idual ban,s; Although candidates need not
[51]
study the pro/isions of these special laws9 they must be familiar with their
e)istence so that whene/er needed9 they should be able to <nd the rele/ant
pro/isions;
R(CO##(N)() R(A)INA #AT(RIA8S
A number of boo,s written by /arious authors are a/ailable in the mar,et on di@erent
laws; 'he candidates are recommended to study any of the boo,s on each of the
following laws;
1; Practice & +aws of .an,ing in Pa,istan (+atest (dition) by ?r; Asrar G; "iddiqi9
published by 6oyal .oo, %ompany9 Karachi;
$; %omplete .an,ing +aws in Pa,istan by Pustice (6) 4uhammad Laseem
%haudhry9 published by Ladeem +aw .oo, Gouse9 +ahore;
*; .an,ing %ompanies Drdinance9 $551;
-; "tate .an, of Pa,istan Act9 1301;
0; Financial #nstitutions (6eco/ery of Finances9) Drdinance9 $551;
1; D@ences in 6espect of .an,s ("pecial %ourts) Drdinance9 138-;
2; 4anual of .an,ing +aws in Pa,istan;
8; Prudential 6egulations issued by "tate .an, of Pa,istan;
3; "tate .an, circulars on non!interest ban, <nancing and opening of #slamic
.an,ing branches of ban,s;
PART / INS'RANC( 8AES AN) PRACTIC( "2% #ARMS&
1; ?e<nition of ris, and uncertaintyE classi<cation of ris,E sources of ris, !
e)ternal and internal;
$; #nsurance ! meaning9 nature and signi<canceE essential requirements and
principles of ris, insuranceE re!insuranceE nationali:ation of insurance business
in Pa,istanE #nsurance Drdinance;
*; +ife insurance ! law relating to +ife #nsuranceE general principles of life
insurance contractE proposals and policyE assignment and nominationE title
and claimsE concept of trusts in life policyE +ife #nsurance %orporation ! role
and functions;
-; 7eneral insurance > law relating to general insuranceE di@erent types of
general insuranceE general insurance and life insuranceE nature of <re
insuranceE /arious types of <re policyE subrogationE double insuranceE
contributionE pro)imate causeE claims and reco/ery;
0; Accident and motor insurance ! nature9 disclosure9 terms and conditionsE
claims and reco/eryE third party insuranceE compulsory motor /ehicle
insuranceE accident insurance;
1; ?eposit and credit insurance ! nature9 terms and conditions9 claim9 reco/ery9
etcE public liability insuranceE emergency ris, insurance;
2; "tructure9 power and function of 7eneral #nsurance %orporation of Pa,istan
("(%P 6ules & 6egulations)E ?eposit #nsurance and %redit 7uarantee
%orporationE %laims 'ribunal;
8; 4arine insurance P law relating to marine insuranceE scope and natureE types
of policyE insurable interestE disclosure and representationE insured perilsE
pro)imity causeE /oyageE warrantiesE measurement of subrogationE
contributionE under insurance Drdinance;
3; 6is, management ! nature9 ris, analysis9 planning9 control and transfer of ris,E
administration of companyJs properties and pro/ision of adequate security
arrangements;
[52]
15; #nsurance sur/eyorship > appointment9 legal pro/isions and licensing9
functions;
11; %ompany "ecretary vis-a-vis insurance and ris, managementE recent
de/elopments in the insurance sector;
1$; Princi@les o; Ta$a;ul (Objecti*e: to de/elop in the candidates)!
A ,nowledge and understanding of the technical aspects of #slamic #nsurance
('a,aful) and its application in the global mar,etplace;
At the end of this unit9 candidates should be able to demonstrate an understanding
of!
Lature and principles of #slamic #nsurancesE
"hariah framewor, of #slamic #nsuranceE
Dperational framewor, of #slamic #nsuranceE
"tructure of #slamic insurance mar,etsE
%onstraints and opportunities for #slamic insuranceE
=ay in which ethical considerations of #slamic insurance are applied and
practiced;

Su::ary o; learnin! outco:es
()plain the main features of #slamic contractsE
?iscuss prohibited contracts from the "hariah point of /iewE
()plain why traditional insurance is prohibited from the "hariah point of /iewE
?iscuss the main features of #slamic insurance /is!X!/is con/entional
insuranceE
()plain the operational framewor, of #slamic insurance including the di@erent
models applying in di@erent countriesE
?iscuss the management principles and practices relating to #slamic insurance
companies
a6 Drgani:ational structureE
b6 "hariah .oard roles and responsibilityE
c6 Financial management aspects and in/estment policies which are
acceptable to #slamic insurance companiesE
6 'echnical management aspects and acceptable underwriting policy
from a "hariah point of /iew;
()plain the constraints and opportunities for #slamic insuranceE
()plain the application of ethical considerations of #slamic insurance practice
and their impact on underwriting policy and practice;
(>@lain the :ain ;eatures o; Isla:ic contracts
a; The :ain ;eatures:=
b; 4udaraba (Partnership)E
c; =a,ala (Agency)E
d; 'abarau (?onation)E
e; Kafallh ("ponsorship);
)iscuss @rohibite contracts ;ro: the Shariah @oint o; *ieH
a; Contracts @rohibite in Shariah:=
b; Isury (6iba)E
c; Ambiguity (7harar)E
d; 7ambling (4iser);
[53]
(>@lain Hhy traitional insurance is @rohibite ;ro: the Shahriah
@oint o; *ieH
a; Nature o; Isla:ic insurance:=
b; Gistorical bac,groundE
c; %on/entional insuranceE
d; Arguments against con/entional insuranceE
e; 7harar in insurance contractsE
f; 6iba in insurance contracts E
g; Dther arguments;
)iscuss the :ain ;eatures o; Isla:ic insurance *is=S=*is con*entional
insurance
a; Isla:ic insurance:=
b; "hariah point of /iewE
c; 4utuallyE
d; 6elationship between #slamic insurance companies and policyholdersE
e; #n/estment policy;
f; Isla:ic insurance *s6 :utual insurance
g; ?i@erences between mutualJs and #slamic insurance;
(>@lain the o@erational ;ra:eHor$ o; Isla:ic insurance incluin! the
iIerent :oels a@@lyin! in iIerent countries "#uaraba=Ea$ala&
a; O@eration o; Isla:ic insurance:=
b; Pure mutual /s; commercial modelsE
c; #slamic insurance (pure mutual model)E
d; #slamic insurance (commercial model)E
e; "urplus and de<cit treatment;
f; #uaraba P Ea$ala :oel:
g; 4udaraba and =a,ala featuresE
h; =a,ala as a portfolio management contractE
i; 4udaraba as an in/estment and fund management contract;
j; Practice in iIerent :ar$ets:
,; "udanE
l; 4alaysia and Asia > Paci<c mar,etsE
m; PordonE
n; 7ulf AreaE
o; Pa,istan;
)iscuss the :ana!e:ent @rinci@les an @ractices relatin! to Isla:ic
insurance co:@anies
a; #ana!e:ent Princi@les an Practices:=
b; Drgani:ational structureE
c; "hariah .oardJs roles and responsibilityE
d; Financial :ana!e:ent as@ects:=
e; Principles of #slamic accountingE
f; #n/estment policies which are acceptable to #slamic insurance companiesE
g; AAD#F# accounting and auditing and go/ernanceJs standardE
h; 'echnical management AspectsE
i; Acceptable underwriting policy from a "hariah point of /iewE
j; Prohibited business;
(>@lain the constraints an o@@ortunities ;or Isla:ic insurance
a6 Isla:ic insurance constraints an o@@ortunities:=
b6 6einsuranceE
[54]
c6 +ac, of quali<ed peopleE
6 Dpportunities;
(>@lain the a@@lication o; the ethical consierations o; Isla:ic
insurance @ractice an their i:@act on unerHritin! @olicy an
@ractice
a6 (thical consierations o; Isla:ic insurance @ractice:
b6 Framewor, of #slamic ethicsE
c6 #slamic ethics and #slamic insurance;
Reain! 8ist
'he following list pro/ides details of /arious publications which may assist with your
studies; 'he primary te)t for this syllabus is shown in bold type; Periodicals and
publications listed as additional reading will be of /alue in ensuring candidates ,eep
up to date with de/elopments and in pro/iding a wider co/erage of syllabus topics;
Any reference materials cited are authoritati/e9 detailed wor,s which should be used
selecti/ely as and when required;
Note: The e>a:ination Hill test the syllabus alone6
'he reading list is pro/ided for guidance only and is not in itself the subject of the
e)amination; #FAP 4embers/students can borrow most of these additional study
materials from %## Knowledge "er/ices and the .#.F library and may be able to
purchase some at a special discount; For further information on lending and discounts
go to www;cii;co;u,/,nowledge or www;bibf;com;
#ntroduction to #slamic #nsurance ('a,aful) > .ahrain .#.F Publication;
4; "; Lajatullah #slamic #nsurance and (conomy9 =itherby;
Accounting "tandards of #slamic Financial #nstitutions9 Accounting & Auditing
Drgani:ation9 $558
Perioicals
'he Pournal 'he %##9 si) issues a year; Also a/ailable online (%##/Personal
Finance "ociety members only) at www;cii;co;u,/,nowledge/journal
Policy 4iddle (ast #nsurance 4aga:ine9 four issues a year;
(>a:ination !uies
Qou are strongly ad/ised to study these before the e)amination; Please /isit
www;cii;co;u, to buy online or contact %## %ustomer "er/ice for further information on
S-- (5)$5 8383 8-1-;
(>a: technical/stuy s$ills
'here are many modestly priced guides to study s,ills and e)am techniques in
boo,shops; Qou will also <nd ad/ice at www;cii;co;u,/careersupport (%##/Personal
Finance "ociety members only);
For a more interacti/e approach9 you should consider =inning the brain game9
+ondon 'he %##9 $5519 %?!6om;
%olin/au)Fs +aw of #nsurance Professor 6obert 4 4er,in #".L15 5-1-5-$**1
#".L1* 3285-1-5-$**3 Publisher "weet & 4a)well +td "weet & 4a)well (dition
3th 6e/ised edition
'he 4odern +aw of #nsurance by Andrew 4c7ee #".L15 1-5020152U #".L1*
3281-50201525 Publisher +e)isLe)is IK .utterworths +aw (dition *rd 6e/ised
edition Publication date *5 Apr $511
[55]
PS 10 Anti #oney 8aunerin! #easures an
+usiness (thics
"#ar$s: 1%%&
16 )eBnitions
1;1 4oney +aundering
1;$ 'errorism Financing
1;* 6elationship with other crimes and world economy
$; #oney 8aunerin!
A6 #ethoolo!y
$;A;1 Placement
$;A;$ +ayering
$;A;* #ntegration
$;A;- #ssuance of %hec,
+6 Sources an Techni?ues
$;.;1 %rimes and %i/il wrongs
Nature o; cri:es
$;.;$ %orruption9 ?rug 'raRc,ing9 6ansom9 %ounterfeiting9 %opy 6ights /iolations9
Arms "muggling9 "toc, ()change Frauds +earning from 23 Federal 8iolations
in I"A
Nature o; Ci*il Eron!s
$;.;* "tructured #nsurance Policies9 +etter of %redit9 Abuse of %redit %ards9
"tructured +oans9 Inder or D/er #n/oicing9 'ransit 'rade9 Free Tone
%oncessions9 %orrespondent .an,ing 9 Legotiable instruments9 'elegraphic
'ransfers9 D@ shore transactions;
For:al Institutions
$;.;- D@ shore or shell .an,s9 #nsurance and #n/estments %ompanies9 .ureau ?e
%hange9 Pension Funds9 "hell %orporations9 8enture %apital9 %asinos9 'ra/el
Agencies9 6eal (state Agents;
In;or:al Institutions
$;.;0 %ash .usiness and 'ransactions9 Gundi9 Gawala9 Fin %hin9 Peso ()change
"ystem9 Antique ?ealers9 Precious %ommodities dealers and +otteries;
06 DoH the ban$s are abuseT
*;1 6e/iew of the accounts with case "tudies
*;$ 6e/iew of the customers with case studies
*;* 6e/iew of the transactions with case studies
*;- %ase studies of .%%# 9 .an, of America etc
*;0 =al,ing Accounts and Lumbered Accounts
16 International Initiati*es an rele*ance Hith MCC
A6 Initiati*es
-;A;1 %oncepts and Dbjecti/es
-;A;$ .an, of #nternational "ettlement and .asel %ommittee
-;A;* IL %on/ention on Financing of 'errorism 1333
[56]
-;A;- IL %on/ention on Larcotic ?rugs 1388
-;A;0 D(%? %on/entions on %orruption and .ribery1332
-;A;1 IL %on/ention Against 'ransnational Drgani:ed %rimes $555
-;A;2 Financial Action 'as, ForceFs 6ecommendations (1335 and $551)
-5 S 8
+6 I:@lications
-;.;1 Lational and #nternational #mplications
-;.;$ #nitiati/es by national agencies li,e "tate .an,9 "(%P and Lational
Accountability .ureau;
-;.;* #denti<cation9 4onitoring9 'raining9 Auditing And Anti 4oney
+aundering Inits
-;.;- 6eporting to A4+ units and to Authorities;
-;.;0 7lobal co!operation and KQ%;
0; DoH to e>ercise MCC in Pa$istan
0;1 Procedure laid down by Financial Action 'as, Force
0;$; Procedure laid down by "tate .an,
0;* 6ecommended steps
"tep Dne Policy
"tep 'wo #denti<cation and 6ecord Keeping
"tep 'hree 4onitoring
"tep Four 6eporting
5.4 (/aluation of
%ustomer related ris,s
'ransaction related ris,s
Purisdiction related ris,s
0;0 6ole of A4+ units and %ompliance DRcers
1; A re/iew of legislation and initiati/es within the trading partners I"A9 IA(9
Papan and common law jurisdictions IK9 #ndia and ban,ing ha/ens li,e
"wit:erland M
Business Ethics
1; (thics and approaches in (thics
$; (thical Power Purpose9 Perspecti/es9 Patience9 Persistence9 Pride
*; Eor$ (thics!
*;1 4ission and 7oal related
*;$ =or, related
*;* "tyle related
*;- .elief related
-; +uilin! (thical Or!aniJation!
-;1 Drgani:ational 'ools to %ulti/ate ethics
-;$ (thical ?ecision ma,ing
0; Factors responsible for (thical & moral erosion
1; Promoting ethics at wor, place
R(CO##(N)() R(A)INA #AT(RIA8
COR( R(A)INAS
1 Pa,istan9 #nstitute of .an,ers Anti!4oney +aundering 4easures >
[57]
A 7uide for .an,ers
$; Pa,istan9 #nstitute of .an,ers .usiness (thics in the .an,ing
"ector
*; 4unir A; 4ali,; .an,erJs 7uide on Anti!4oney
+aundering
#nitiati/es & +egislation
-; #nternational 4onetary Fund9 Financial "ystem Abuse9 Financial %rimes and
4oney +aundering9 .ac,ground Paper =ashington ?;%;#4F $551
S'PP8(#(NTARC R(A)INAS
1; .lunden .on 'he 4oney +aunderers9 Gow they do it and
how to catch them at all %halford (ngland9
4anagement .oo,s $555 ! $551;
$; Pac, A .lum Financial Ga/ens9 .an,ing "ecrecy and
4oney +aundering; I" %rime Pre/ention
and %riminal Pustice Lews +etter 89 Lo
*-/*0 1338;
*; "al/a "andeep 4oney +aundering and Financial
#ntermediaries; 'he Gague9 Kluwer +aw
#nternational $551;
"elected reading of Lational Accountability .ureau Drdinance of 13339 Anti
Larcotic +aw of 1332 and Anti 'errorism +aw of 1332 and the %irculars of ".P
on KQ% and related section of Prudential regulations
PS 11: Cor@orate G Financial Re@ortin! "1%% #ar$s&
Part 1 Cor@orate Re@ortin! "2% #ARMS&
AI#
'o apply ,nowledge s,ills and e)ercise professional judgment in the application and
e/aluation of <nancial reporting principles and practices in a range of business
conte)ts and situations;
#ain Ca@abilities
On success;ul co:@letion o; this @a@er/subject stuents shoul be able to:=
a; ?iscuss the professional and ethical duties of the Forensic Accountant;
b; (/aluate the <nancial reporting framewor,;
c; Ad/ise on and report the <nancial performance of entities;
d; Prepare the <nancial statements of groups of entities in accordance with
rele/ant accounting standards;
e; ()plain reporting issues relating to speciali:ed entities;
f; ?iscuss the implications of changes in accounting regulation on <nancial
reporting;
g; Appraise the <nancial performance and position of entities;
h; (/aluate current de/elopments
'he syllabus ta,es the subject into greater depth and conte)tuali:es the role of the
Forensic Accountant as a professional steward and ad/iser/analyst by initially
e)ploring the wider professional duties and responsibilities of the Forensic Accountant
to the sta,eholders of an organi:ation;
[58]
'he syllabus e)amines the <nancial reporting framewor, within which the Forensic
Accountant operates and e)amines detailed <nancial reporting requirements for
entities leading to the preparation of group <nancial reports in accordance with
generally accepted accounting practice and rele/ant standards; 'he syllabus then
deals with the nature of reporting for speciali:ed entities including not > for > pro<t
and small and medium si:ed enterprises;
'he <nal sections of the syllabus e)plore in more depth the role of the Forensic
Accountant as <nancial analyst and ad/iser through the assessment of <nancial
performance and position of entities9 and the Forensic AccountantJs role in assessing
and ad/ising on the implications of accounting regulation on corporate reporting;
Finally9 the syllabus co/ers the e/aluation of current de/elopments and their
implications for <nancial reporting;
)etaile Syllabus:
A6 The @ro;essional an ethical uty o; the ;orensic accountant
1; Professional beha/ior and compliance with accounting standards
$; (thical requirements of corporate reporting and the consequences
*; "ocial 6esponsibility
+6 The Bnancial re@ortin! ;ra:eHor$
1; 'he contribution and limitations of <nancial statements in meeting the needs
of users and capital mar,ets
$; 'he applications9 strengths and wea,nesses of an accounting framewor,
*; %ritical e/aluation of principles and practices
C6 Re@ortin! the Bnancial @er;or:ance o; entities
1; Performance reporting
$; Lon > current assets
*; Financial instrument
-; +eases
0; "egment reporting
1; (mployee bene<ts
2; #ncome ta)es
8; Pro/isions9 contingencies and e/ents after the reporting date
3; 6elated parties
15; "hare > based payment
)6 Financial state:ents o; !rou@s o; entities
1; 7roup accounting including statements of cash Bows
$; %ontinuing and discontinued interests
*; %hanges in group structures
-; Foreign transaction and entities
(6 S@ecialiJe entities
[59]
1; Financial reporting in speciali:ed9 not > for > pro<t and public sector entities
$; 6eporting requirements of small and medium > si:ed entities ("4(s)
F6 I:@lications o; chan!es in accountin! re!ulation on Bnancial
re@ortin!
1; 'he e@ect of changes in accounting standards on accounting systems
$; Proposed changes to accounting standards
A6 The A@@raisal o; Bnancial @er;or:ance an @osition o; entities
1; 'he creation of suitable accounting policies
$; Analysis and interpretation of <nancial information and measurement of
performance
D6Current )e*elo@:ents
1; (n/ironmental and social reporting
$; %on/ergence between national and international reporting standards
*; %omparison of national reporting requirements
-; %urrent reporting issues
Stuy Auie
A6 TD( PROF(SSIONA8 AN) (TDICA8 )'TI(S OF TD( FOR(NSIC
ACCO'NTANT
16 Pro;essional beha*ior an co:@liance Hith accountin! stanars
a; Appraise and discuss the ethical and professional issues in ad/ising on
corporate reporting;
b; Assess the rele/ance and importance of ethical and professional issues in
complying with accounting standards;
/6 (thical re?uire:ents o; cor@orate re@ortin! an the conse?uences
o; unethical beha*ior
a; Appraise the potential ethical implications of professional and managerial
decisions in the preparation of corporate reports;
b; Assess the consequences of not upholding ethical principles in the preparation
of corporate reports;
06 Social Res@onsibility
a; ?iscuss the increased demand for transparency in corporate reports9 and the
emergence of non!<nancial reporting standards;
b; ?iscuss the progress towards a framewor, for en/ironmental and
sustainability reporting;
+6 TD( FINANCIA8 R(PORTINA FRA#(EORM
1. The contribution an li:itations o; Bnancial state:ents in :eetin!
'serFs an ca@ital :ar$etFs nees
i; (/aluate the consistency and clarity of corporate reports;
ii; Assess the insight into <nancial and operational ris,s pro/ided by
corporate reports;
[60]
iii; ?iscuss the usefulness of corporate reports in ma,ing in/estment
decisions
/6 The a@@lications. stren!ths an Hea$nesses o; an accountin!
;ra:eHor$
a; (/aluate the /aluation models adopted by standard setters;
b; ?iscuss the use of an accounting framewor, in underpinning the
production of accounting standards;
c; Assess the success of such a framewor, in introducing rigorous and
consistent accounting standards;
06 Critical e*aluation o; @rinci@les an @ractices
a; #dentify the relationship between accounting theory and practice;
b; %ritically e/aluate accounting principles and practices used in
corporate reporting;
C6 R(PORTINA TD( FINANCIA8 P(RFOR#ANC( OF (NTITI(S
16 Per;or:ance re@ortin!
a; Prepare reports relating to corporate performance for e)ternal sta,eholders;
b; ?iscuss the issues relating to the recognition of re/enue;
c; (/aluate proposed changes to reporting <nancial performance;
/6 Non=current assets
a; Apply and discuss the timing of the recognition of non!current assets and the
determination of their carrying amounts including impairments and
re/aluations;
b; Apply and discuss the treatment of non!current assets held for sale;
c; Apply and discuss the accounting treatment of in/estment properties
including classi<cation9 recognition and measurement issues;
d; Apply and discuss the accounting treatment of intangible assets including the
criteria for recognition and measurement subsequent to acquisition and
classi<cation;
06 Financial Instru:ents
a; Apply and discuss the recognition and derecogni:ing of <nancial assets and
<nancial liabilities;
b; Apply and discuss the classi<cation of <nancial assets and <nancial liabilities
and their measurement;
c; Apply and discuss the treatment of gains and losses arising on <nancial assets
and <nancial liabilities;
d; Apply and discuss the treatment of impairments of <nancial assets;
e; Account for deri/ati/e <nancial instruments9 and simple embedded
deri/ati/es;
f; Dutline the principles of hedge accounting and account for fair /alue hedges
and cash Bow hedges including hedge e@ecti/eness;
16 8eases
[61]
a; Apply and discuss the classi<cation of leases and accounting for leases by
lessors and lessees;
b; Account for and discuss sale and leasebac, transactions;
26 Se!:ent Re@ortin!
a; ?etermine the nature and e)tent of reportable segments;
b; "pecify and discuss the nature of segment information to be disclosed;
36 (:@loyee +eneBts
a; Apply and discuss the accounting treatment of de<ned contribution and
de<ned bene<t plans;
b; Account for gains and losses on settlements and curtailments;
c; Account for the AAsset %eilingC test and the reporting of actuarial gains and
losses;
46 Inco:e ta>es
a; Apply and discuss the recognition and measurement of deferred ta) liabilities
and deferred ta) assets including the e)ceptions to recognition;
b; ?etermine the recognition of ta) e)pense or income and its inclusion in the
<nancial statements;
56 Pro*isions. contin!encies an e*ents a;ter the re@ortin! ate
a; Apply and discuss the recognition9 de!recognition and measurement of
pro/isions9 contingent liabilities and contingent assets including
en/ironmental pro/isions;
b; %alculate and discuss restructuring pro/isions;
c; Apply and discuss the accounting for e/ents after the reporting date;
d; ?etermine and report going concern issues arising after the reporting date;
76 Relate @arties
a; ?etermine the parties considered to be related to an entity;
b; #dentify the implications of related party relationships and the need for
disclosure;
1%6Share base @ay:ent
a; Apply and discuss the recognition and measurement criteria for share!based
payment transactions;
b; Account for modi<cations9 cancellations and settlements of share based
payment transactions;
)6 FINANCIA8 STAT(#(NTS OF ARO'PS OF (NTITI(S
16 Arou@ accountin! incluin! state:ents o; cash KoHs
a; Apply the method of accounting for business combinations including comple)
group structures;
b; Apply the principles in determining the cost of a business combination;
c; Apply the recognition and measurement criteria for identi<able acquired
assets and liabilities and goodwill including step acquisitions;
d; Apply and discuss the criteria used to identify a subsidiary and an associate;
[62]
e; ?etermine and apply appropriate procedures to be used in preparing group
<nancial statements;
f; Apply the equity method of accounting for associates;
g; Dutline and apply the ,ey de<nitions and accounting methods which relate to
interests in joint /entures;
h; Prepare and discuss group statements of cash Bows;
/6 Continuin! an iscontinue interests
a; Prepare group <nancial statements where acti/ities ha/e been discontinued9
or ha/e been acquired or disposed of in the period;
b; Apply and discuss the treatment of a subsidiary which has been acquired
e)clusi/ely with a /iew to subsequent disposal;
06 Chan!es in !rou@ structures
a; ?iscuss the reasons behind a group re!organi:ation;
b; (/aluate and assess the principal terms of a proposed group re!
organi:ation;
16 Forei!n transactions an entities
a; Dutline and apply the translation of foreign currency amounts and
transactions into the functional currency and the presentational currency;
b; Account for the consolidation of foreign operations and their disposal;
c; ?escribe the principal objecti/es of establishing a standard for enterprises
reporting in the currency of a hyper inBationary economy;
(6 SP(CIA8IS() (NTITI(S
16 Financial re@ortin! in s@ecialiJe. not=;or=@roBt an @ublic sector
entities
a; Apply ,nowledge from the syllabus to straightforward transactions and e/ents
arising in speciali:ed9 not!for!pro<t9 and public sector entities;
/6 Re@ortin! re?uire:ents o; s:all an :eiu: entities "S#(s&
a; Dutline the principal considerations in de/eloping a set of accounting
standards for "4(s;
b; ?iscuss solutions to the problem of di@erential <nancial reporting;
F6 I#P8ICATIONS OF CDANA(S IN ACCO'NTINA R(A'8ATION ON
FINANCIA8 R(PORTINA
16 The eIect o; chan!es in accountin! stanars on accountin! syste:s
a; Apply and discuss the accounting implications of the <rst time adoption of a
body of new accounting standards;
b; Dutline the issues in implementing a change to new accounting standards
including organi:ational9 beha/ioral9 and procedural changes within the entity;
/6 Pro@ose chan!es to accountin! stanars
a; #dentify issues and de<ciencies which ha/e led to a proposed change to an
accounting standard;
[63]
b; Apply and discuss the implications of a proposed change to an accounting
standard on the performance and statement of <nancial position of an entity;
A6TD( APPRAISA8 OF FINANCIA8 P(RFOR#ANC( AN) POSITION OF
(NTITI(S
16 The creation o; suitable accountin! @olicies
a; ?e/elop accounting policies for an entity which meets the entityJs reporting
requirements;
b; #dentify accounting treatments adopted in <nancial statements and assess
their suitability and acceptability;
/6 Analysis an inter@retation o; Bnancial in;or:ation an :easure:ent
o; @er;or:ance
a; "elect and calculate rele/ant indicators of <nancial and non<nancial
performance;
b; #dentify and e/aluate signi<cant features and issues in <nancial
statements;
c; Gighlight inconsistencies in <nancial information through analysis and
application of ,nowledge;
d; 4a,e inferences from the analysis of information ta,ing into account
the limitation of the information9 the analytical methods used and the
business en/ironment in which the entity operates;
D6 C'RR(NT )(-(8OP#(NTS
16 (n*iron:ental an social re@ortin!
a; Appraise the impact of en/ironmental9 social9 and ethical factors on
performance measurement;
b; (/aluate current reporting requirements in the area;
c; ?iscuss why entities might include disclosures relating to the en/ironment and
society;
/6 Con*er!ence betHeen national an international re@ortin! stanars
a; (/aluate the implications of worldwide con/ergence with #nternational
Financial 6eporting "tandards;
b; ?iscuss the implementation issues arising from the con/ergence process;
06 Co:@arison o; national re@ortin! re?uire:ents
a; #dentify the reasons for major di@erences in accounting practices9 including
culture;
b; ?iscuss the inBuence of national regulators on international <nancial
reporting;
16 Current re@ortin! issues
a; ?iscuss current issues in corporate reporting;
Reain! 8ist
ACCAFs ONcial Publishers:=
+PP 8earnin! #eia
Contact Nu:ber: O11 "%& /% 541% ////
[64]
Eebsite: www;bpp;com
Ma@lan Publishin!
Contact Nu:ber: O11 "%& 115 757 %3/7
Eebsite: www;,aplanpublishing;co;u,
Aitional Reain!:
A#nternational 7AAP $553C > (rnst and Qoung +e)isLe)is
Abbas Ali #irJa. Arha: , Dolt. #a!nus Orrell.
A#nternational Financial 6eporting "tandards =or,boo, and 7uide =iley ($558)C
Alternati*e reain!:
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Part / Financial Re@ortin! "2% #ar$s&
AI#
'o de/elop ,nowledge and s,ills in understanding and applying accounting standards
and the theoretical framewor, in the preparation of <nancial statements of entities9
including groups and how to analy:e and interpret those <nancial statements;
#ain CAPA+I8IT(S
Dn successful completion of this paper9 candidates should be able to!
a; ?iscuss and apply a conceptual framewor, for <nancial reporting;
b; ?iscuss a regulatory framewor, for <nancial reporting;
c; Prepare and present <nancial statements which conform with international
accounting standards;
d; Account for business combinations in accordance with international
accounting standards;
e; Analy:e and interpret <nancial statements;
)(TAI8() SC88A+'S
A6 A conce@tual ;ra:eHor$ ;or Bnancial re@ortin!
1; 'he need for a conceptual framewor,;
$; Inderstandability9 rele/ance9 reliability and
comparability;
*; 6ecognition and measurement;
-; 'he legal /ersus the commercial /iew of accounting;
0; Alternati/e models and practices;
1; 'he concept of Yfaithful representationJ (Ytrue and fair
/iewJ);
+6 A re!ulatory ;ra:eHor$ ;or Bnancial re@ortin!
1; 6easons for the e)istence of a regulatory framewor,;
[65]
$; 'he standard setting process;
*; "peciali:ed9 not!for!pro<t9 and public sector entities;
C Financial state:ents
1; "tatements of cash Bows;
$; 'angible non!current assets;
*; #ntangible assets;
-; #n/entory;
0; Financial assets and <nancial liabilities;
1; +eases;
2; Pro/isions9 contingent liabilities9 and contingent assets;
8; #mpairment of assets;
3; 'a)ation;
15; 6egulatory requirements relating to the preparation of <nancial statements;
11; 6eporting <nancial performance;
) +usiness co:binations
1; 'he concept and principles of a group;
$; 'he concept of consolidated <nancial statements;
*; Preparation of consolidated <nancial statements including an associate
( AnalyJin! an inter@retin! Bnancial state:ents
1; +imitations of <nancial statements;
$; %alculation and interpretation of accounting ratios and trends to address users
and sta,eholders needs;
*; +imitations of interpretation techniques;
-; "peciali:ed9 not!for!pro<t9 and public sector entities;
Stuy Auie
A6 A CONC(PT'A8 FRA#(EORM FOR FINANCIA8 R(PORTINA
16 The nee ;or a conce@tual ;ra:eHor$
a; ?escribe what is meant by a conceptual framewor, of accounting;
b; ?iscuss whether a conceptual framewor, is necessary and what an
alternati/e system might be;
/6 'nerstanability. rele*ance. reliability an co:@arability
a; ?iscuss what is meant by understandability in relation to the pro/ision of
<nancial information;
b; ?iscuss what is meant by rele/ance and reliability and describe the qualities
that
enhance these characteristics;
c; ?iscuss the importance of comparability to users of <nancial statements;
[66]
d; ?istinguish between changes in accounting policies and changes in
accounting estimates and describe how accounting standards apply the
principle of comparability where an entity changes its accounting policies;
e; 6ecogni:e and account for changes in accounting policies and the correction
of prior period errors;
06 Reco!nition an :easure:ent
a; ?e<ne what is meant by YrecognitionJ in <nancial statements and discuss the
recognition criteria;
b; Apply the recognition criteria to!
i; Assets and liabilities;
ii; income and e)penses
c; ?iscuss re/enue recognition issuesE indicate when income and e)pense
recognition should occur;
d; ?emonstrate the role of the principle of substance o/er form in relation to
recogni:ing sales re/enue;
e; ()plain the following measures and compute amounts using!
i; Gistorical cost;
ii; Fair /alue/current cost;
iii; Let reali:able /alue;
i/; Present /alue of future cash Bows;
16 The le!al *ersus the co::ercial *ieH o; accountin!
a; ()plain the importance of recording the commercial substance rather than the
legal form of transactions > gi/e e)amples where recording the legal form of
transactions may be misleading;
b; ?escribe the features which may indicate that the substance of transactions
di@ers from their legal form;
c; apply the principle of substance o/er form to the recognition and de!recognition
of assets and liabilities;
d; 6ecogni:e the substance of transactions in general9 and speci<cally account for
the following types of transaction!
i; 7oods sold on sale or return/consignment in/entory;
ii. "ale and repurchase/leasebac, agreements
iii; Factoring of recei/ables;
26 Alternati*e :oels an @ractices
a; ?escribe the ad/antages and disad/antages of
the use of historical cost accounting;
b; ?iscuss whether the use of current /alue
accounting o/ercomes the problems of historical
cost accounting;
c; ?escribe the concept of <nancial and physical
capital maintenance and how this a@ects the
determination of pro<ts;
8
36 The conce@t o; U;aith;ul re@resentationF "Utrue an ;air *ieHF&
[67]
a; ?escribe what is meant by <nancial statements achie/ing a faithful
representation;
b; ?iscuss whether faithful representation constitutes more than compliance with
accounting standards;
c; #ndicate the circumstances and required disclosures where a Ytrue and fairJ
o/erride may apply;
+6 A R(A'8ATORC FRA#(EORM FOR FINANCIA8 R(PORTINA
16 Reasons ;or the e>istence o; a re!ulatory ;ra:eHor$
a; ()plain why a regulatory framewor, is needed;
b; ()plain why accounting standards on their own are not a complete
regulatory framewor,;
c; ?istinguish between a principles based and a rules based framewor, and
discuss whether they can be complementary;
/6 The stanar settin! @rocess
a; ?escribe the structure and objecti/es of the #A"% Foundation9 the #nternational
Accounting "tandards .oard (#A".)9 the "tandards Ad/isory %ouncil ("A%) and
the #nternational Financial 6eporting #nterpretations %ommittee (#F6#%);
b; ?escribe the #A".Js "tandard setting process including re/isions to and
interpretations of "tandards;
c; ()plain the relationship of national standard setters to the #A". in respect of
the standard setting process;
06 S@ecialiJe. not=;or=@roBt an @ublic sector entities
a; ?istinguish between the primary aims of not!for pro<t and public sector
entities and those of pro<t oriented entities;
b; ?iscuss the e)tent to which #nternational Financial 6eporting "tandards
(#F6"s) are
rele/ant to speciali:ed9 not!for!pro<t and public sector entities;
C6 FINANCIA8 STAT(#(NTS
16 State:ents o; Cash KoHs
a; Prepare a statement of cash Bows for a single entity (not a group) in
accordance with rele/ant accounting standards using the direct and the
indirect method;
b; %ompare the usefulness of cash Bow information with that of an income
statement or statement of comprehensi/e income;
c; #nterpret a statement of cash Bows (together with other <nancial information)
to assess the performance and <nancial position of an entity;
/6 Tan!ible non=current assets
a; ?e<ne and compute the initial measurement of a non!current (including a self!
constructed) asset;
b; #dentify subsequent e)penditure that may be capitali:ed (including borrowing
costs)9 distinguishing between capital and re/enue items;
c; ?iscuss the requirements of rele/ant accounting standards in relation to the
re/aluation of noncurrent assets;
[68]
d; Account for re/aluation and disposal gains and losses for non!current assets;
e; %ompute depreciation based on the cost and re/aluation models and on
assets that ha/e two or more signi<cant parts (comple) assets);
f; Apply the pro/isions of rele/ant accounting standards in relation to accounting
for go/ernment grants;
g; ?iscuss why the treatment of in/estment properties should di@er from other
properties;
h; Apply the requirements of rele/ant accounting standards for in/estment
property;
06 Intan!ible assets
a; ?iscuss the nature and accounting treatment of internally generated and
purchased intangibles;
b; ?istinguish between goodwill and other intangible assets;
c; ?escribe the criteria for the initial recognition and measurement of intangible
assets;
d; ?escribe the subsequent accounting treatment9 including the principle of
impairment tests in relation to goodwill;
e; #ndicate why the /alue of purchase consideration for an in/estment may be
less than the /alue of the acquired identi<able net assets and how the
di@erence should be accounted for;
f; ?escribe and apply the requirements of rele/ant accounting standards to
research and de/elopment e)penditure;
16 In*entory
a; ?escribe and apply the principles of in/entory /aluation;
b; ?e<ne a construction contract and discuss the role of accounting concepts
in the recognition of pro<t;
c; ?escribe the acceptable methods of determining the stage (percentage) of
completion of a contract;
d; Prepare <nancial statement e)tracts for construction contracts;
2 Financial assets an Bnancial liabilities
a; ()plain the need for an accounting standard on <nancial instruments;
b; ?e<ne <nancial instruments in terms of <nancial assets and <nancial
liabilities;
c; #ndicate for the following categories of <nancial instruments how they
should be measured and how any gains and losses from subsequent
measurement should be treated in the <nancial statements!
i; Fair /alue through pro<t and loss;
ii; Geld to maturity (use of amorti:ed cost9 interest to income);
iii; A/ailable for sale (carried at fair /alue with changes to equity9 but di/idends
to income);
i/; +oans and recei/ables;
d; ?istinguish between debt and equity capital;
e; Apply the requirements of rele/ant accounting standards to the issue and <nance
costs of!
[69]
i; (quity;
ii; 6edeemable preference shares and debt instruments with no con/ersion
rights (principle of amorti:ed cost);
iii; %on/ertible debt;
36 8eases
a; ()plain why recording the legal form of a <nance lease can be misleading to
users (referring to the commercial substance of such leases);
b; ?escribe and apply the method of determining a lease type (i;e; an operating
or <nance lease);
c; ?iscuss the e@ect on the <nancial statements of a <nance lease being
incorrectly treated as an operating lease;
d; Account for assets <nanced by <nance leases in the records of the lessee;
e; Account for operating leases in the records of the lessee;
46 Pro*isions. contin!ent liabilities an contin!ent assets
a; ()plain why an accounting standard on pro/isions is necessary;
b; ?istinguish between legal and constructi/e obligations;
c; "tate when pro/isions may and may not be made and demonstrate how
they should be accounted for;
d; ()plain how pro/isions should be measured;
e; ?e<ne contingent assets and liabilities and describe their accounting
treatment;
f; #dentify and account for!
i; =arranties/guarantees;
ii; Dnerous contracts;
iii; (n/ironmental and similar pro/isions
i/; Pro/isions for future repairs or refurbishments;
56 I:@air:ent o; assets
a; ?e<ne an impairment loss;
b; #dentify the circumstances that may indicate impairments to assets;
c; ?escribe what is meant by a cash generating unit;
d; "tate the basis on which impairment losses should be allocated9 and
allocate an
impairment loss to the assets of a cash generating unit;
76 Ta>ation
a; Account for current ta)ation in accordance with rele/ant accounting
standards;
b; 6ecord entries relating to income ta) in the accounting records;
c; ()plain the e@ect of ta)able temporary di@erences on accounting and
ta)able pro<ts;
d; %ompute and record deferred ta) amounts in the <nancial statements;
1%6 Re!ulatory re?uire:ents relatin! to the @re@aration o; Bnancial
state:ents
[70]
a; ?escribe the structure (format) and content of <nancial statements presented
under #F6";
b; Prepare an entityJs <nancial statements in accordance with the prescribed
structure and content;
116 Re@ortin! Bnancial @er;or:ance
a; ?iscuss the importance of identifying and reporting the results of discontinued
operations;
b; ?e<ne and account for non!current assets held for sale and discontinued
operations;
c; #ndicate the circumstances where separate disclosure of material items of
income and e)pense is required;
d; Prepare and e)plain the contents and purpose of the statement of changes in
equity;
e; ?escribe and prepare a statement of changes in equity;
f; (arnings per share (eps);
calculate the eps in accordance with rele/ant accounting standards (dealing
with bonus issues9 full mar,et /alue issues and rights issues)
()plain the rele/ance of the diluted eps and calculate the diluted eps
in/ol/ing
con/ertible debt and share options (warrants)
()plain why the trend of eps may be a more accurate indicator of
performance than a companyJs pro<t trend and the importance of eps as a
stoc, mar,et indicator
discuss the limitations of using eps as a performance measure
) +'SIN(SS CO#+INATIONS
16 The conce@t an @rinci@les o; a !rou@
a) ?escribe the concept of a group as a single economic unit;
b) ()plain and apply the de<nition of a subsidiary within rele/ant accounting
standards;
c) ?escribe why directors may not wish to consolidate a subsidiary and the
circumstances where this is permitted;
d) ()plain the need for using coterminous year ends and uniform accounting
polices when preparing consolidated <nancial statements;
e) ()plain why it is necessary to eliminate intra!group transactions;
/6 The conce@t o; consoliate Bnancial state:ents
a) ()plain the objecti/e of consolidated <nancial statements;
b) #ndicate the e@ect that the related party relationship between a parent
and subsidiary may ha/e on the subsidiaryJs entity statements and the
consolidated <nancial statements;
c) ()plain why it is necessary to use fair /alues for the consideration for an
in/estment in a subsidiary together with the fair /alues of a subsidiaryJs
identi<able assets and liabilities when preparing consolidated <nancial
statements;
[71]
d) ?escribe and apply the required accounting treatment of consolidated
goodwill;
06 Pre@aration o; consoliate Bnancial state:ents incluin! an associate
a) Prepare a consolidated statement of <nancial position for a simple group
(parent and one subsidiary) dealing with pre and post acquisition pro<ts9
minority interests and consolidated goodwill;
b) Prepare a consolidated income statement and consolidated statement of
comprehensi/e income for a simple group dealing with an acquisition in the
period and minority interest;
c) ()plain and account for other reser/es (e;g; share premium and re/aluation
reser/es);
d) Account for the e@ects in the <nancial statements of intra!group trading;
e) Account for the e@ects of fair /alue adjustments (including their e@ect on
consolidated goodwill) to!
?epreciating and non!depreciating noncurrent assets
#n/entory
4onetary liabilities
Assets and liabilities not included in the subsidiaryJs own statement of
<nancial position9 including contingent assets and liabilities
g; Account for goodwill impairment;
g; ?e<ne an associate and e)plain the principles and reasoning for the use of
equity accounting;
h) Prepare consolidated <nancial statements to include a single subsidiary and
an associate;
( ANA8CSINA AN) INT(RPR(TINA
FINANCIA8 STAT(#(NTS
16 8i:itations o; Bnancial state:ents
#ndicate the problems of using historic information to predict future
performance and trends;
?iscuss how <nancial statements may be manipulated to produce a desired
e@ect (creati/e accounting9 window dressing);
6ecogni:e how related party relationships ha/e the potential to mislead users;
()plain why <gures in a statement of <nancial position may not be
representati/e of a/erage /alues throughout the period for e)ample9 due to!
"easonal trading
4ajor asset acquisitions near the end of the accounting period;
/ Calculation an inter@retation o; accountin! ratios an trens to
aress usersF an
Sta$eholersF nees
V ?e<ne and compute rele/ant <nancial ratios;
V ()plain what aspects of performance speci<c ratios are intended to assess;$
[72]
Analy:e and interpret ratios to gi/e an assessment of an entityJs performance
and <nancial position in comparison with!
Z An entityJs pre/ious periodJs <nancial statements
Z Another similar entity for the same reporting period
Z #ndustry a/erage ratios;
Z #nterpret an entityJs <nancial statements to gi/e ad/ice from the perspecti/es
of di@erent sta,eholders;
Z ?iscuss how the interpretation of current /alue based <nancial statements
would di@er from those using historical cost based accounts;
06 8i:itations o; inter@retation techni?ues
[ ?iscuss the limitations in the use of ratio analysis for assessing corporate
performance;
[ ?iscuss the e@ect that changes in accounting policies or the use of di@erent
accounting polices between entities can ha/e on the ability to interpret
performance;
[ indicate other information9 including non<nancial information that may be of
rele/ance to the assessment of an entityJs performance;
-; S@ecialiJe. not=;or=@roBt an @ublic sector entities
?iscuss the di@erent approaches that may be required when assessing the
performance of speciali:ed9 not!for!pro<t and public sector organi:ations;
Reain! 8ist
ACCAFs oNcial @ublishers:=
++P 8earnin! #eia
Contact Nu:ber: O11"%&/% 541% ////
Eebsite: www;bpp;com
Ma@lan Publishin!
Contact Nu:ber: 11"%&115 757 %3/7
Eebsite: HHH6$a@lan@ublishin!6co6u$
Additional 6eading
%lare Finch9 A studentJs guide to #nternational Financial 6eporting "tandards > Kaplan
Publishing
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%ontact Lumber S--(5)1*-- 20112-
=ebsite www;ifpboo,s;com
[73]

PS 12 Cor@orate Ao*ernance G A:inistration
"1%% #ar$s&
Part 1 Cor@orate Ao*ernance "2% #ar$s&
Syllabus
Ai:
%orporate 7o/ernance has emerged on the global agenda in pursuit of proper and
eRcient practice in the administration of the business entity; 'he objecti/e is probity
in business acti/ity9 compliance with law and regulation9 and the securing of
reputation and con<dence towards the attraction of inward in/estment; 'he Forensic
Accounting is the ,ey corporate player and the global Profession has emerged as a
benchmar, of the de/elopment of best practice;
'he aim of the module is to instill the ,nowledge and ,ey s,ills necessary for the
Forensic Accountant to act as a chief ad/iser to the .oard on best practice in
corporate go/ernance9 and as the catalyst for systematic application in the major
global forms of organi:ation;
8earnin! Outco:es
At the conclusion of this module9 the candidate will be able to!
6esearch and apply the growing global information sources on corporate
go/ernanceE
Promote awareness of9 and be responsible for continuing self and personnel
de/elopment of corporate go/ernance themesE
Promulgate corporate go/ernance principles and best practice in the
employing or client organi:ationE
Apply professional ,nowledge and s,ills to the resolution of practical issues
and problems in the proper go/ernance of the employing or client
organi:ationE
Inderstand and apply the concepts of probity and ethical standards in
go/ernanceE
Inderstand and ad/ise on the impact of corporate go/ernance principles on
the role of ?irectors9 the "ecretary and the Audit function;
Pre=Re?uisite 8earnin!
(/idence of assessed pre!requisite ,nowledge and understanding in the following
disciplines must be demonstrated through the #nstituteJs e)aminations9 or those of
equi/alent quali<cations which ha/e been appro/ed as meeting the #nstituteJs
required curriculum and standards!
%orporate +aw
"trategic and Dperations 4anagement
Financial Accounting
4anagement Accounting
[74]
The )eBnitions an Objecti*es o; Cor@orate Ao*ernance
'he corporate entity legality separation of ownership and operation;

'he concepts of ownership and accountability ethics and performance;

'he Aenlightened shareholder and sta,eholderC concepts; 'he state as
shareholder;

4odels of hierarchic and functional relationships in sound go/ernance; Initary
(one!tier) and two!tier .oards;
'he e)ternal and internal pressures for sound go/ernance;
Gistory and ongoing de/elopments in corporate go/ernance;
'he 6eports from %adbury and King onwardsE Lational and international
sources;
'he combined %ode9 #nstitutional guidelines;
%orporate go/ernance guidelines D(%?E the %ommonwealth AssociationE
corporate scorecards;
'he go/ernance agenda in the de/eloping and de/eloped economies9
#nternational networ,ing;
The Re!ulatory an (thical Fra:eHor$
'he role of legislation and regulation in corporate go/ernance;
'he nature and importance of compliance;
%ompliance statements;
()planation of non!compliance;
'he ethical dimension codes and practices;
'he assessment of corporate performance yardstic,s and measurementE
corporate re/iewE disclosure;
"ocial and en/ironmental responsibility importance9 assessment and
measurementE reportingE rele/ance to all industries and acti/ities;
Key concepts openness and transparencyE honestyE probityE accountabilityE
judgmentE reputation
The +asis o; Soun Ao*ernance
'he concept of best practice in go/ernance in companies;

"tatutory corporations and trusts;

Inderstanding the distinctly and separate roles9 duties and responsibilities of
corporate oRcers and sta,eholders chairman9 chief e)ecuti/e oRcer9
directors9 secretary and shareholders/members;
"hareholders majority controlE minority rightsE the rights of members in
guarantee companies;
[75]
6esponsibilities of institutional shareholdersE communications with
shareholders; #nternal controls;

D/erall business ris, management and re/iew9 including the
recommendations of the 'urnbull %ommittee;

#nternal structural relationships in the organi:ation;
The Secretary an Cor@orate Ao*ernance
'he importance and special position of secretaryE the role in sound and
e@ecti/e go/ernance;

Appointment and quali<cation; %ontrol of corporate information and corporate
reporting the annual reportE the website and electronic communications;

%ommunication with sta,eholders; 'he Awhistle blowingC concept issues and
problems9 protection;
+oar o; )irectors
()ecuti/e and non!e)ecuti/e directors;
%hairman9 managing director9 shadow and alternate directors;
'he concept of independent directors9 comparison of roles9 needs9 powers and
duties appointment9 reappointment and rotation9 remuneration9 remo/al9
retirement and disquali<cation;
'he importance of the proper mi) of appointments to the .oard9 "er/ice
contracts9 induction9 orientation and training;
6esponsibilities of the .oard9 committees and their roleE composition9
operation and accountabilityE especially Audit;
6emuneration9 Lomination9 .oard e@ecti/eness ?irectorsJ liabilities9
indemnity and insurance;
.orrowing powers9 %onBict and disclosure of interest; "hare dealingE model
codesE insider dealing;
%ompany record9 ?irectorsJ disclosures9 ser/ice contracts9 remuneration and
agreements;
Auit
'he contribution of internal and e)ternal audit to sound go/ernance;
Audit reports and their use;

Appointment9 remo/al; #ndependence and remuneration rights9 powers and
duties in the go/ernance framewor,;
6esponsibilities to shareholders and the board;
Part / Cor@orate A:inistration "2%
#ar$s&
Ai:
[76]
'he Forensic Accountant is regularly employed in a position of strategic responsibility
for administrati/e operations within and across the organi:ation; 'he aim of the
module is to instill ,nowledge and ,ey s,ills in handling the responsibilities of
corporate administration in both the strategic and functional conte)ts9 to de/elop
competence in ad/ising the .oard and leading teams in administrati/e best practice9
and in ensuring compliance with e)ternal regulation and internal procedures;
8earnin! Outco:es
At the conclusion of this module9 the candidate will be able to!
Inderstand the scope of strategic and functional administration and apply it
within the employing or client organi:ationE
Access information sources and deli/er ,nowledge and information internally
to the optimum bene<t of the organi:ation and its needsE
(/aluate the requirements of the legal and regulatory en/ironment in
corporate administration9 ad/ise the .oard accordingly9 and ensure
complianceE
'a,e responsibility for the administration of corporate ,nowledge and
information9 the human resources9 pension schemes9 insurance and ris,9 and
physical corporate assetsE
Inderstand the impact of corporate ta)ation on administration and ensure
ta)ation compliance within systems;
Pre=re?uisite 8earnin!
(/idence of assessed pre!requisite ,nowledge and understanding in the following
disciplines must be demonstrated through the #nstituteJs e)aminations9 or those of
equi/alent quali<cations which ha/e been appro/ed as meeting the #nstituteJs
required curriculum and standards!
"trategic and Dperations 4anagement
%orporate +aw
8earnin! content
Role an Functions
'he role and functions of the corporate administrator;
Administration as a support ser/ice in organi:ation;
'he concept of best practice;
'he sources and application of guides to best practice;
MnoHle!e an In;or:ation
'he sources of information on law9 regulation and administrati/e best practice;
%opyright and intellectual property9 including asset protection;
'rademar,s and patents;
#nformation9 data and technology as a corporate resource;
'echnological change and inno/ation internet and website applications and
management;
"ecurity and integrity of informationE control of access;
?ata protection legislation9 %on<dentiality;
[77]
The Du:an Resource
(mployment law and regulation;
'he employment contract;
%oncepts of added /alue and continuous impro/ements;
"ecuring and monitoring the people resources human resource planning9
recruitment and selection9 job descriptions and person speci<cations;
4a)imi:ing performance job designE job enrichmentE reward and recognition
systemsE job e/aluation; 'raining and de/elopment;
Performance appraisal; =or,ing with consultants;
Gealth and safety at wor, legislation and practice;
(n/ironmental issues legislation and best practice;
Pensions. Insurance an Ris$
Pensions their rele/ance and purposes;
"cheme types > occupational9 state9 personal;
"ta,eholder pensions and group personal pensions;
'he management and proper control of pension schemes;
'he impact of legislation;
Funds and their management;
Principles and practice of trusteeshipE administrati/e secretary ship and
support;
'he duties of trustees in law; 'rust deeds and rules;
'he nature of corporate and business ris,sE management and control;
%orporate liability and the implications;
#nsurance classes9 types and uses for companies;
'he insurance mar,etE bro,ers and intermediaries;
'he use of consultants and ad/isers;
?isaster planning;
Cor@orate Ta>ation
'he impact of corporate ta)ation corporation 'a)E "ales9 8alue Added or
7oods and "er/ices 'a)es9 #ncome 'a);
%orporate responsibilities under law and regulation;
Cor@orate Assets
'he management of physical assets;
Facilities administration role and functions;
"ecurity and the application of systems; Purchasing principles and procedures;
Reco::ene Reain!
1; 4anual of %orporate 7o/ernance9 published by the Pa,istan #nstitute of
%orporate 7o/ernance (P#%7);
$; %ompilation of %orporate +aws (+atest (dition) by Abdul 6auf "ha,oori &
"ha,obia Asghar9 published by Federal +aw Gouse9 +ahore & 6awalpindi;
*; %orporate 7o/ernance A "ynthesis of 'heory9 6esearch9 and Practice G; Kent
.a,er ((ditor)9 6onald Anderson ((ditor) #".L 328!5!-25!-331*!3
[78]
-; 7o/ernance 'heory and Practice 8asudha %hhotray9 7erry "to,er #".L15
5$*5$05*3- #".L1* 3285$*5$05*35 Publisher Palgra/e 4acmillan
0; %orporate and .usiness +aw (IK) #".L15 18-858$-51 #".L1*
32818-858$-5* Publisher 7et 'hrough 7uides (dition (d; *9 8ersion 1
1; 'olleyFs %ompany "ecretaryFs Gandboo, Perry P + +ai #".L15 1-50205551
#".L1* 3281-5020555- Publisher +e)isLe)is IK 'olley Publishing (dition
$5th 6e/ised edition
2; 'he %ompany "ecretaryFs Gandboo, Gelen Ashton #".L15 52-3-0*$1-
#".L1* 32852-3-0*$1* Publisher Kogan Page +td (dition 0th 6e/ised
edition
8; %orporate 7o/ernance ? 7eeta 6ani9 6 K 4ishra #".L15 812--118*0 #".L1*
328812--118*3 Publisher ()cel .oo,s
PS13 +usiness -aluation #ana!e:ent
"#ar$s: 1%%&
Objecti*es:
'o gain ,nowledge in di@erent techniques of /aluation of assets and liabilities
'o understand the legal implications of merger and acquisitions
16 -aluation +asis "1%W&
Principles and techniques of /aluation;
Asset /aluation;
(arnings /aluation;
%ash Bow /aluation;
Dther /aluation basis;
(Rcient mar,et hypothesis;
#mpact of changing capital structure on the mar,et /alue of the company;
Priorities of di@erent sta,eholders in terms of business /aluation;
/6 -aluation o; #er!ers an Ac?uisitions "/%W&
Assets and cash Bows;
'he strengths and wea,nesses of /arious /aluation method;
6ecognition of the interest of /arious sta,eholders;
"election of appropriate cost of capital for /aluation;
"ynergistic bene<ts;
Forms of consideration and terms of acquisitions;
Post merger integration process;
#mplications of regulations for business combinations;
'ypes of e)it strategies and their implications;
06 -aluation o; Assets an 8iabilities "1%W&
Forms of intellectual property and methods of /aluation;
8aluation of <)ed assets;
8aluation of in/entories;
8aluation of in/estments;
8aluation of shares;
[79]
?i/idend growth /aluation models;
44 theory;
8aluation of options;
8aluation of intangibles;
Guman resource accounting;
8aluation of 7oodwill9 Patents and copyrights;
8aluation of brands;
8aluation of real estate;
6ele/ant accounting standards;
16 Case stuies "0%W&
Reco::enin! Reain!
Valuation by 4cKinsey & %ompany9 #nc 9 'im Koller9 4arc 7oedhart9 ?a/id =essels
IS+N1%: 5-25-$-101 IS+N10: 3285-25-$-105
Publisher: Pohn =iley and "ons +td Pohn =iley & "ons +td
(ition: 0th 6e/ised edition
Financial -aluation: A@@lications an #oels. 0r (ition
Author Pames 6; Gitchner9 %PA/A.89 A"A
Publisher Pohn =iley and "ons
'nerstanin! +usiness -aluation: A Practical Auie to -aluin! S:all to
#eiu: SiJe .usinesses ! 'hird (dition
Author 7ary 6; 'rugman9 %PA9 A.89 4%.A9 A"A9 48"
Publisher A#%PA
PS 14 Cri:inolo!y. 8e!al (n*iron:ent G (thics
"#ar$s: 1%%&
Part A Cri:inolo!y "#ar$s: 2%&
Part I: CONC(PTS OF CRI#(. 8AE. AN) CRI#INO8OAC
1; %rime and %riminology;
$; =hat is crimeM %ontrasting de<nitions and perspecti/es;
*; 'he Lature and ()tent of %rime;
-; Public conceptions and misconceptions of crime
0; 8ictims and 8ictimi:ation;
Part II: TD(ORI(S OF CRI#( CA'SATION
1; 6ational %hoice 'heory;
$; 'rait 'heories;
*; "ocial "tructure 'heories;
-; "ocial Process 'heories;
0; "ocial %onBict9 %ritical %riminology9 and 6estorati/e Pustice;
1; ?e/elopmental 'heories +ife %ourse and +atent 'rait;
2; #nBuences of physical factors and genetics on criminality
Part III: CRI#( TCPO8OAI(S
1; #nterpersonal 8iolence;
$; Political 8iolence and 'errorism;
*; Property %rime;
-; (nterprise %rime =hite!%ollar and 7reen!%ollar %rime;
[80]
0; Public Drder %rime "e) and "ubstance Abuse;
1; %rimes of the Lew 4illennium %yber!%rime and 'ransnational Drgani:ed
%rime;
Part I-: TD( CRI#INA8 ,'STIC( SCST(# OF PAMISTAN
1; %riminal Pustice Process and Perspecti/es;
$; Police and %ourts #n/estigation9 Arrest and Adjudication;
*; Punishment and %orrection;
Reco::ene Reain!
Cri:inolo!y by 8arry Sie!el
#".L15 5-3031$1-1 #".L1* 3285-3031$1--
Publisher %engage +earning9 #nc =adsworth Publishing %o #nc
Te>tboo$ on Cri:inolo!y. Matherine Eillia:s
Katherine =illiams
#".L15 5133$35*18 #".L1* 3285133$35*1-
Publisher D)ford Ini/ersity Press
Cri:inolo!y. Chris Dale. Meith DayHar. AJrini Eahiin. (::a Eincu@
".L15 5133$$2$3$ #".L1* 3285133$$2$32
Publisher D)ford Ini/ersity Press
Cri:inolo!y. Ste@hen ,ones
#".L15 5133$18533 #".L1* 3285133$18532
Publisher D)ford Ini/ersity Press
Cri:inal 8aH An Proceure
?aniel ( Gall
#".L15 1111*1$288 #".L1* 3281111*1$282
Publisher %engage +earning9 #nc ?elmar %engage +earning
(dition 1th 6e/ised edition
Publication date *1 Pul $511
Part + 8e!al (n*iron:ent G (thics "#ar$s: 2%&
%hapter 1 #ntroduction; 'he =ellsprings of +egal (thics
%hapter $ 'he philosophical foundations of legal ethics
%hapter * +egal ad/ising and the rule of law
%hapter - 'he +awyerly 8ices
%hapter 0 'he "eeds of a +awyerly 8irtue
%hapter 1 #ntroducing #ntegrity9 Personal integrity and professional ethics
%hapter 2 #ntegration through 6ole
%hapter 8 +awyerly Fidelity and Political +egitimacy
%hapter 3 =hy good intentions are often not enough the potential for ethical
blindness in legal decision!ma,ing
Reco::ene Reain!
A #oern 8e!al (thics. )aniel #ar$o*its
Ad/ersary Ad/ocacy in a ?emocratic Age
#".L 32851311-81*2
Publisher 'he Ini/ersity Press 7roup +td
ReaNr:in! 8e!al (thics. Rei #ortensen. #ichael Robertson. 8illian Corbin.
Francesca
+artlett. Mieran Tranter #".L 3285-100-10*39 Publisher 'aylor & Francis +td
Coe o; (thics ;or Associates an FelloH #e:bers @ublishe by IFAP
[81]
Coe o; (thics ;or Pro;essional Accountants "latest eition& @ublishe by
IFAC
PS 15 A*ance Auitin! G Assurance "#ar$s:
1%%&
AI#
'o analy:e9 e/aluate and conclude on the assurance engagement and other audit and
assurance issues in the conte)t of best practice and current de/elopments;
#AIN CAPA+I8ITI(S
Dn successful completion of this paper9 candidates should be able to!
6ecogni:e the legal and regulatory en/ironment and its impact on audit and
assurance practice
?emonstrate the ability to wor, e@ecti/ely on an assurance or other ser/ice
engagement within a professional and ethical framewor,
Assess and recommend appropriate quality control policies and procedures in
practice management and recogni:e the auditorJs position in relation to the
acceptance and retention of professional appointments
#dentify and formulate the wor, required to meet the objecti/es of audit and
non!audit assignments and apply the #nternational "tandards on Auditing
(/aluate <ndings and the results of wor, performed and draft suitable reports
on assignments
Inderstand the current issues and de/elopments relating to the pro/ision of
audit related and assurance ser/ice
RATIONA8(
'he Ad/anced Audit and Assurance syllabus is essentially di/ided into si) areas;
'he syllabus starts with the legal and regulatory en/ironment including money
laundering9 and procedures in practice management9 including quality control and
the acceptance and retention of professional engagements; 'his then leads into
professional and ethical considerations9 including the %ode of (thics and professional
liability;
'he syllabus then co/ers /arious assignments9 including an audit of <nancial
statements9 audit related ser/ices9 and other assurance assignments9 as well as the
reporting of these assignments;
'he <nal section co/ers current issues and de/elopments relating to the pro/ision of
audit related and assurance ser/ices;
)(TAI8() SC88A+'S
A Re!ulatory (n*iron:ent
1; #nternational regulatory framewor,s for audit and assurance ser/ices
$; 4oney laundering
*; +aws and regulations
[82]
+ Pro;essional an (thical Consierations
1; %ode of (thics for Professional Accountants
$; Fraud and error
*; Professional liability
C Practice #ana!e:ent
1; Nuality control
$; Ad/ertising9 publicity9 obtaining professional wor, and fees
*; 'endering
-; Professional appointments
) Assi!n:ents
1; 'he audit of historical <nancial information includingE
i) Planning9 materiality and assessing the ris, of misstatement
ii) (/idence
iii) (/aluation and re/iew
$; 7roup audits
*; Audit!related ser/ices
-; Assurance ser/ices
0; Prospecti/e <nancial information
1; Forensic audits
2; #nternal audit
8; Dutsourcing
( Re@ortin!
1; AuditorJs reports
$; 6eports to management
*; Dther reports
F Current Issues an )e*elo@:ents
1; Professional9 ethical and corporate go/ernance
$; #nformation technology
*; 'ransnational audits
-; "ocial and en/ironmental auditing
0; Dther current issues
APPROACD TO (LA#ININA TD( SC88A+'S
'he e)amination is a three hour paper constructed in two sections; Nuestions in both
sections will be almost entirely discursi/e; Gowe/er9 candidates will be e)pected9 for
e)ample9 to be able to assess materiality and calculate rele/ant ratios where
appropriate;
[83]
"ection A questions will be based on Ycase studyJ type questions; 'hat is not to say
that they will be particularly long9 rather that they will pro/ide a setting within a
range of topics9 issues and requirements can be addressed; ?i@erent types of
question will be encountered in "ection . and will tend to be more focused on
speci<c topics9 for e)ample YauditorJs reportsJ9 Yquality controlJ and topics of #"As
which are not e)aminable in Paper %" 89 Forensic Auditing and Assurance; ('his does
not preclude these topics from appearing in "ection A); %urrent issues will be
e)amined across a number of questions;
"ection A $ compulsory questions 05!25 mar,s
"ection . %hoice of $ from * questions *5!05 mar,s (total 155)
Stuy Auie
A R(A'8ATORC (N-IRON#(NT
16 International re!ulatory ;ra:eHor$s ;or auit an assurance
ser*ices
a) ()plain the need for laws9 regulations9 standards and other guidance relating to
audit9 assurance and related ser/ices;
b) Dutline and e)plain the need for the legal and professional framewor, including
i) 'he international standard!setting process
ii) 'he authority of national and international standards
iii) Public o/ersight and principles of corporate go/ernance
i/) 'he role of audit committees;
c) ?iscuss the e@ecti/eness of the di@erent ways in which the auditing profession and
audit mar,ets are regulated;
/6 #oney launerin!
a) ?e<ne Ymoney launderingJ;
b) ()plain how international e@orts see, to combat money laundering;
c) ()plain the scope of criminal o@ences of money laundering and how professional
accountants may be protected from criminal and ci/il liability;
d) ()plain the need for ethical guidance in this area;
e) ?escribe how accountants meet their obligations to help pre/ent and detect
money laundering including record ,eeping and reporting of suspicion to the
appropriate regulatory body;
f) ()plain the importance of customer due diligence (%??);
g) 6ecogni:e potentially suspicious transactions and assess their impact on reporting
duties;
h) ?escribe9 with reasons9 the basic elements of an anti!money laundering program;
06 8aHs an re!ulations
a) %ompare and contrast the respecti/e responsibilities of management and auditors
concerning compliance with laws and regulations in an audit of <nancial statements;
b) ?escribe the auditor considerations of compliance with laws and regulations and
plan audit procedures when possible noncompliance is disco/ered;
c) ?iscuss how and to whom non!compliance should be reported;
[84]
d) 6ecogni:e when withdrawal from an engagement is necessary;
+ PROF(SSIONA8 AN) (TDICA8 CONSI)(RATIONS
16 Coe o; (thics ;or Pro;essional Accountants
a) ()plain the fundamental principles and the conceptual framewor, approach;
b) #dentify9 e/aluate and respond to threats to compliance with the fundamental
principles;
c) ?iscuss and e/aluate the e@ecti/eness of a/ailable safeguards;
d) 6ecogni:e and ad/ise on conBicts in the application of fundamental principles;
/6 Frau an error
a) ?e<ne and clearly distinguish between the terms YerrorJ9 YirregularityJ9 YfraudJ and
YmisstatementJ;
b) %ompare and contrast the respecti/e responsibilities of management and auditors
for fraud and error;
c) ?escribe the matters to be considered and procedures to be carried out to
in/estigate actual and/or potential misstatements in a gi/en situation;
d) ()plain how9 why9 when and to whom fraud and error should be reported and the
circumstances in which an auditor should withdraw from an engagement;
e) ?iscuss the current and possible future role of auditors in pre/enting9 detecting
and reporting error and fraud;
06 Pro;essional liability
a) 6ecogni:e circumstances in which professional accountants may ha/e legal
liability;
b) ?escribe the factors to determine whether or not an auditor is negligent in gi/en
situations;
c) ()plain the other criteria for legal liability to be recogni:ed (including Ydue
professional careJ and Ypro)imityJ) and apply them to gi/en situations;
d) %ompare and contrast liability to client with liability to third parties6
e) %omment on precedents of case law;
f) (/aluate the practicability and e@ecti/eness of ways in which liability may be
restricted9 including professional indemnity insurance (P##)
g) ?iscuss how audit and other opinions may be a@ected by limiting auditorsJ liability;
h) ?iscuss the ad/antages and disad/antages of claims against auditors being settled
out of court;
i) ?iscuss and appraise the principal causes of audit failure and other factors that
contribute to the Ye)pectation gapJ (e;g; responsibilities for fraud and error&;
j) 6ecommend ways in which the e)pectation gap might be bridged;
C PRACTIC( #ANAA(#(NT
16 Quality control
a) ()plain the principles and purpose of quality control of audit and other assurance
engagements;
b) ?escribe the elements of a system of quality control rele/ant to a gi/en <rm;
[85]
c) "elect and justify quality control procedures that are applicable to a gi/en audit
engagement6
d) Assess whether an engagement has been performed in accordance with
professional standards and whether reports issued are appropriate in the
circumstances;
/6 A*ertisin!. @ublicity. obtainin! @ro;essional Hor$ an ;ees
a) ()plain the need for guidance in these areas;
b) 6ecogni:e situations in which speci<ed ad/ertisements are acceptable;
c) ?iscuss the restrictions on practice descriptions9 the use of the #FAP logo and the
names of practicing <rms;
d) ?iscuss the e)tent to which reference to fees may be made in promotional
material;
e) Dutline the determinants of fee!setting and justify the bases on which fees and
commissions may and may not be charged for ser/ices;
f) ?iscuss the ethical and other professional problems in/ol/ed in establishing and
negotiating fees for a speci<ed assignment;
06 Tenerin!
a) ?iscuss the reasons why entities change their auditors/professional accountants;
b) 6ecogni:e and e)plain the matters to be considered when a <rm is in/ited to
submit a proposal or fee quote for an audit or other professional engagement;
c) #dentify the information required for a proposal;
d) Prepare the content of an engagement proposal document;
e) ?iscuss and appraise the criteria that might be used to e/aluate tenders recei/ed
from audit <rms in a gi/en situation6
f) ?iscuss reasons why audit fees may be lowered from the pre/ious yearJs fees;
g) ()plain Ylow ballingJ and discuss whether or not it impairs independence;
16 Pro;essional a@@oint:ents
a) ()plain the matters to be considered and the procedures that an audit
<rm/professional accountant should carry out before accepting a speci<ed new
client/engagement including!
i) %lient acceptance
ii) (ngagement acceptance
iii) (stablishing whether the preconditions for an audit are present
i/) Agreeing the terms of engagement;
b) 6ecogni:e the ,ey issues that underlie the agreement of the scope and terms of an
engagement with a client;
c) Dutline the procedures for the transfer of boo,s9 papers and information following
a new appointment;
) ASSIAN#(NTS
16 The auit o; historical Bnancial in;or:ation
a) ?escribe the ,ey features of the following audit methodologies!
[86]
i) 6is,!based auditing
ii) Y'op downJ approach
iii) "ystems audit
i/) .alance "heet Approach
/) 'ransaction cycle approach
/i) ?irectional testing;
b) Pustify an appropriate approach to a gi/en assignment and recogni:e when an
approach is unsuitable6
1"i& Plannin!. :ateriality an assessin! the ris$ o; :isstate:ent
a) "pecify the matters that should be considered in planning a gi/en assignment
including:=
i) +ogistics (e;g; sta@ and client management9 multiple locations9 deadlines)
ii) Ise of #' in administration
iii) 'ime budgets
i/) Assignment objecti/es and reports required
/) %lient interface (e;g; communication methods)
/i) Preliminary materiality assessment
/ii) Key <nancial statement ris,s
/iii) An o/erall audit strategy;
b) ?e<ne materiality and performance materiality and demonstrate how it should be
applied in <nancial reporting and auditing;
c) Apply the criteria that determine whether or not a matter is material and discuss
the use and limitations of prescripti/e rules in ma,ing decisions about materiality;
d) #dentify and e)plain business ris,s in gi/en situations;
e) ?escribe the factors that inBuence the assessment of a speci<ed ris, (e;g; inherent
ris,9 <nancial statement ris,) for a gi/en assignment;
f) ()plain how and why the assessments of ris,s and materiality a@ect the nature9
timing and e)tent of auditing procedures in a gi/en situation;
g) "elect and apply appropriate ris, assessment procedures9 including analytical
procedures9 to obtain an understanding of a gi/en entity and its en/ironment6
h) Assess the ris, of misstatement at the <nancial statement le/el and assertion le/el
and design audit procedures in response to assessed ris,s;
i) 6ecogni:e and assess the implications of a speci<ed computer system (e;g;
networ,) on an assignment;
1"ii& (*ience
a) (/aluate the appropriateness and suRciency of di@erent sources of audit e/idence
and the procedures by which e/idence may be obtained including!
i) Analytical procedures
ii) =ritten representations
iii) 'he wor, of others
[87]
i/) Audit sampling
/) ()ternal con<rmations
/i) Audit automation tools;
b) "pecify audit procedures to obtain suRcient audit e/idence from identi<ed
sources;
c) Apply the criteria for assessing the e)tent to which reliance can be placed on
substanti/e analytical procedures and recogni:e situations in which analytical
procedures may be used e)tensi/ely6
d) Apply analytical procedures to <nancial and non!<nancial data;
e) #dentify and e/aluate the audit e/idence e)pected to be a/ailable to!
i) /erify speci<c assets9 liabilities9 transactions and e/entsE and
ii) support <nancial statement assertions and accounting treatments (including fair
/alues);
f) ()plain the reasons for preparing and retaining documentation and the importance
of re/iewing wor,ing papers;
g) ()plain the speci<c audit problems and procedures concerning related parties and
related party transactions;
h) 6ecogni:e circumstances that may indicate the e)istence of unidenti<ed related
parties and select appropriate audit procedures;
i) ?emonstrate the use of written representations to support other audit e/idence;
j) 6ecogni:e when it is justi<able to place reliance on the wor, of an e)pert (e;g; a
sur/eyor employed by the audit client);
,) Assess the appropriateness and suRciency of the wor, of internal auditors and the
e)tent to which reliance can be placed on it;
1"iii& (*aluation an re*ieH
a) ()plain re/iew procedures (including the use of analytical procedures and
chec,lists) and assess their role in detecting material misstatements;
b) (/aluate <ndings quantitati/ely and qualitati/ely9 e; g!
i) 'he results of audit tests and procedures
ii) 'he e@ect of actual and potential misstatements;
c) %ompare and contrast how the auditorJs responsibilities for corresponding <gures9
comparati/e <nancial statements9 Yother informationJ9 subsequent e/ents and going
concern are discharged;
d) Apply the further considerations and audit procedures rele/ant to initial
engagements;
e) ?iscuss the courses of action a/ailable to an auditor if a material inconsistency or
misstatement of fact e)ists;
f) "pecify audit procedures designed to identify subsequent e/ents that may require
adjustment to9 or disclosure in9 the <nancial statements of a gi/en entity;
g) +ist indicators that the going concern basis may be in doubt and recogni:e
mitigating factors;
[88]
h) (/aluate the e/idence that might be e)pected to be a/ailable and assess the
appropriateness of the going concern basis in gi/en situations;
i) Assess the adequacy of disclosures in <nancial statements relating to going
concern and e)plain the implications for the auditorJs report with regard to the going
concern basis6
j) (/aluate the matters (e;g; materiality9 ris,9 rele/ant accounting standards9 audit
e/idence) relating to!
i) #n/entory
ii) "tandard costing systems
iii) %ash Bow statements
i/) %hanges in accounting policy
/) %onstruction contracts
/i) 'a)ation
/ii) "egment information
/iii) Lon!current assets
i)) Fair /alue
)) +eases
)i) 6e/enue recognition
)ii) (mployee bene<ts
)iii) 7o/ernment grants and assistance
)i/) .orrowing costs
)/) 6elated parties
)/i) (arnings per share
)/ii) #mpairment
)/iii) Pro/isions9 contingent liabilities and contingent assets
)i)) 7oodwill
))) .rands
))i) 6esearch and de/elopment
))ii) Dther intangible assets
))iii) %apital instruments
))i/) Financial instruments
))/) #n/estment properties
))/i) 'ransition to #nternational Financial 6eporting "tandards (#F6")
))/ii) "hare!based payment transactions
))/iii) .usiness combinations
))i)) ?iscontinued operations
)))) Geld for sale non!current assets
)))i) (/ents after the end of the reporting period;
[89]
/6 Arou@ auits
a) 6ecogni:e the speci<c matters to be considered before accepting appointment as
principal auditor to a group in a gi/en situation6
b) %ompare and contrast the organi:ation9 planning9 management and administration
issues speci<c to group audits with those of joint audits;
c) 6ecogni:e the speci<c audit problems and describe audit procedures in a gi/en
situation relating to:=
i) 'he correct classi<cation of in/estments
ii) ?i@ering accounting policies and framewor,s
iii) Fair /alues on acquisition
i/) #ntangibles
/) 'a)ation
/i) 7oodwill on consolidation
/ii) #ntra!group balances9 transactions and pro<ts
/iii) 6elated parties
i)) (/ents after the reporting period
)) (ntities in de/eloping countries;
d) ?iscuss letters of support (Ycomfort lettersJ) as audit e/idence;
e) #dentify and describe the matters to be considered and the procedures to be
performed when a principal auditor uses the wor, of component auditors in a gi/en
situation;
f) ()plain the implications for the auditorJs report on the <nancial statements of an
entity where the opinion on a component is quali<ed or otherwise modi<ed in a gi/en
situation;
06 Auit=relate ser*ices
a) ?escribe the nature of audit!related ser/ices9 the circumstances in which they
might be required and the comparati/e le/els of assurance pro/ided by professional
accountants;
b) ?istinguish between!
i) Audit!related ser/ices and an audit of historical <nancial statements
ii) An attestation engagement and a direct reporting engagement;
c) Plan re/iew engagements9 for e)ample
i) A re/iew of interim <nancial information
ii) A Ydue diligenceJ assignment (when acquiring a company9 business or other
assets);
d) ()plain the importance of enquiry and analytical procedures in re/iew
engagements and apply these procedures;
e) ?escribe and apply the general principles and procedures relating to a compilation
engagement (e;g; to prepare <nancial statements);
f) ()plain why agreed!upon procedures and compilation engagements do not
(usually) meet the requirements for an assurance engagement;
[90]
g) #llustrate the form and content of!
i) A report of factual <ndings
ii) A compilation report
16 Assurance ser*ices
a) ?escribe the main categories of assurance ser/ices that audit <rms can pro/ide
and assess the bene<ts of pro/iding these ser/ices to management and e)ternal
users!
i) 6is, assessments
ii) .usiness performance measurement
iii) "ystems reliability
i/) (lectronic commerce;
b) Pustify a le/el of assurance (reasonable9 high9 moderate9 limited9 negati/e) for an
engagement depending on the subject matter e/aluated9 the criteria used9 the
procedures applied and the quality and quantity of e/idence obtained;
c) 6ecogni:e the ways in which di@erent types of ris, (e;g; strategic9 operating9
information) may be identi<ed and analy:ed and assess how management should
respond to ris,;
d) 6ecommend operational measures and describe how the reliability of performance
information systems is assessed (including benchmar,ing);
e) ?escribe a /alue for money audit and recommend measures of economy9
eRciency and e@ecti/eness;
f) ()plain the demand for reliable and more timely reporting on <nancial information
and the de/elopment of continuous auditing;
g) "elect procedures for assessing internal control e@ecti/eness;
h) ?escribe how entities are using core technologies (e;g; (?#9 e!mail9 #nternet9 =orld
=ide =eb) and e)plain how e!commerce a@ects the business ris, of a gi/en entity;
26 Pros@ecti*e Bnancial in;or:ation
a) ?e<ne Yprospecti/e <nancial informationJ (PF#) and distinguish between a
YforecastJ9 a YprojectionJ9 a Yhypothetical illustrationJ and a YtargetJ;
b) ()plain the principles of useful PF#;
c) #dentify and describe the matters to be considered before accepting a speci<ed
engagement to report on PF#;
d) ?iscuss the le/el of assurance that the auditor may pro/ide and e)plain the other
factors to be considered in determining the nature9 timing and e)tent of e)amination
procedures;
e) ?escribe e)amination procedures to /erify forecasts and projections relating to!
i) 6e/enue
ii) %apital e)penditure
iii) 6e/enue e)penditure
i/) Pro<ts
/) %ash Bows
[91]
/i) =or,ing capital;
f) %ompare the content of a report on an e)amination of PF# with reports made in
pro/iding audit!related ser/ices;
36 Forensic auits
a) ?e<ne the terms Yforensic accountingJ9 Yforensic in/estigationJ and Yforensic auditJ;
b) ?escribe the major applications of forensic auditing (e;g; fraud9 negligence9
insurance claims) and analy:e the role of the forensic auditor as an e)pert witness;
c) Apply the fundamental ethical principles to professional accountants engaged in
forensic audit assignments;
d) "elect in/estigati/e procedures and e/aluate e/idence appropriate to determining
the loss in a gi/en situation;
e) ()plain the terms under which e)perts ma,e reports;
46 Internal auit
a) %ompare the objecti/es and principal characteristics of internal audit with other
assurance engagements;
b) %ompare and contrast operational and compliance audits;
c) Pustify a suitable approach (e;g; cyclical compliance) to speci<ed multi!site
operations;
d) ?iscuss outsourcing internal auditing ser/ices;
56 Outsourcin!
a) ()plain the di@erent approaches to YoutsourcingJ and compare with Yin sourcingJ;
b) ?iscuss and conclude on the ad/antages and disad/antages of outsourcing <nance
and accounting functions including!
i) ?ata (transaction) processing
ii) Pensions
iii) #nformation technology (#')
i/) #nternal auditing
/) ?ue diligence wor,
/i) 'a)es;
c) 6ecogni:e and e/aluate the impact of outsourced functions on the conduct of an
audit;
( R(PORTINA
1 AuitorFs re@orts
a) %ritically appraise the form and content of a standard unmodi<ed auditorJs report;
b) 6ecogni:e and e/aluate the factors to be ta,en into account when forming an
audit opinion in a gi/en situation;
c) Pustify audit opinions that are consistent with the results of audit procedures
relating to the suRciency of audit e/idence and/or compliance with accounting
standards (including the going concern basis);
d) 6ecogni:e when the use of an emphasis of matter paragraph and other matter
paragraph would be appropriate;
[92]
e) ?raft e)tracts suitable for inclusion in an audit report;
f) ?iscuss the implications for the auditorJs report on <nancial statements that report
compliance with #F6"s;
g) Assess whether or not a proposed audit opinion is appropriate;
h) ?iscuss Ya true and fair /iewJ;
i) ?escribe special purpose auditorsJ reports (e;g; on summari:ed <nancial
statements) and analy:e how and why they di@er from an auditorJs report on
historical <nancial information;
/6 Re@orts to :ana!e:ent
a) ?raft suitable content for a report to management9 on the basis of gi/en
information9 including statements of facts9 their potential e@ects and appropriate
recommendations for action;
b) %ritically assess the quality of a report to those charged with go/ernance;
c) Ad/ise on the content of reports to those charged with go/ernance in a gi/en
situation;
d) ()plain the need for timely communication9 clearance9 feedbac, and follow up;
e) ?iscuss the relati/e e@ecti/eness of communication methods;
06 Other re@orts
a) Analy:e the form and content of the professional accountantJs report for an
assurance engagement as compared with an auditorJs report;
b) ?raft the content of a report on e)amination of prospecti/e <nancial information;
c) ?iscuss the e@ecti/eness of the Ynegati/e assuranceJ form of reporting and
e/aluate situations in which it may be appropriate to e)press a reser/ation or deny a
conclusion;
F C'RR(NT ISS'(S AN) )(-(8OP#(NTS
?iscuss the relati/e merits and the consequences of di@erent standpoints ta,en in
current debates and e)press opinions supported by reasoned arguments;
16 Pro;essional. ethical an cor@orate !o*ernance
a) ?iscuss the relati/e ad/antages of an ethical framewor, and a ruleboo,;
b) (/aluate the adequacy of e)isting ways in which objecti/ity may be safeguarded
and suggest additional measures to impro/e independence;
c) #dentify and assess rele/ant to emerging ethical issues and e/aluate the
safeguards a/ailable;
d) ?iscuss #FA% de/elopments including!
i) 'he implementation and adoption of #nternational "tandards on Auditing (#"As)
ii) "igni<cant current assurance issues being dealt with by #AA".;
e) Assess the relati/e ad/antages and disad/antages of partnership status9 limited
liability partnerships and incorporation of audit <rms;
f) ?iscuss current de/elopments in the limitation of auditorsJ liability and the practical
ways in which the ris, of litigation and liability can be reduced in a gi/en situation;
[93]
g) ?iscuss inno/ations in corporate go/ernance (e;g; enterprise!wide ris,
management) and their impact on boards of directors9 audit committees and internal
auditors;
/6 In;or:ation technolo!y
a) ?escribe recent trends in #' and their current and potential impact on auditors
(e;g; the audit implications of Ycyber incidentsJ and other ris,s);
b) ()plain how #' may be used to assist auditors and discuss the problems that may
be encountered in automating the audit process;
06 Transnational auits
a) ?e<ne Ytransnational auditsJ and e)plain the role of the 'ransnational Audit
%ommittee ('A%) of #FA%;
b) ?iscuss how transnational audits may di@er from other audits of historical <nancial
information (e;g; in terms of applicable <nancial reporting and auditing standards9
listing requirements and corporate go/ernance requirements);
c) ?iscuss the need for international audit <rm networ,s in implementing
international auditing standards;
d) ?istinguish9 for e)ample9 between Yglobal auditing <rmsJ and second tier <rms;
e) ?iscuss the impact of globali:ation on audit <rms and their clients;
f) ()plain the ad/antages and problems of current trends (e;g; to merge9 to di/est
consultancy ser/ices);
16 Social an en*iron:ental auitin!
a) ?iscuss the increasing importance of policies that go/ern the relationship of an
organi:ation to its employees9 society and the en/ironment;
b) ?escribe the diRculties in measuring and reporting on economic9 en/ironmental
and social performance and gi/e e)amples of performance measures and
sustainability indicators;
c) ()plain the auditorJs main considerations in respect of social and en/ironmental
matters and how they impact on entities and their <nancial statements (e;g;
impairment of assets9 pro/isions and contingent liabilities);
d) ?escribe substanti/e procedures to detect potential misstatements in respect of
socio en/ironmental matters;
e) ?iscuss the form and content of an independent /eri<cation statement (e;g; on an
en/ironmental management system ((4") and a report to society);
26 Other current issues
a) ?iscuss how the potential problems associated with the audit of small enterprises
may be o/ercome;
b) ()plain how #nternational "tandards on Auditing a@ect smaller <rms;
c) ?iscuss the dominance of the global <rms and their inBuence and impact on the
accounting profession;
d) ?iscuss the impact of de/elopments in public company o/ersight on e)ternal
auditors;
e) ()plain current de/elopments in auditing standards including the need for new and
re/ised standards and e/aluate their impact on the conduct of audits;
[94]
f) ?iscuss other current legal9 ethical9 other professional and practical matters that
a@ect accountants9 auditors9 their employers and the profession;
R(A)INA 8IST
ACCAs ofcial publishers:-
+PP 8earnin! #eia
Contact nu:ber: O11"%&/% 541% ////
Eebsite: HHH6b@@6co:
Ma@lan Publishin!
Contact nu:ber: O11"%&115 757 %3/7
Eebsite: HHH6$a@lan@ublishin!6co6u$
Additional reading:-
Forensic accounting and fraud in/estigation for non!e)perts9 G "il/erstone and 4
"heet:9 $nd edition9 =iley9 $552 student accountant including rele/ant <nancial
reporting articles and technical auditing and <nancial reporting update
http//www;ifac;org
Please note, the following text is only relevant for students studying in Singapore
A')IT CO##ITT(( A'I)ANC( CO##ITT(( A'I)(+OOM FOR A')IT
CO##ITT((S IN
SINAAPOR(
Alternative reading:-
Accountancy 'uition %entre (A'%) #nternational %ontact infoWatc!global;com
=ebsite www;atc!global;com
7et 'hrough 7uides
%ontact number S-- (5)8-0 $02 02$3
=ebsite www;7et'hrough7uides;com
#nternational Financial Publishing +imited
%ontact number S-- (5)1*-- 20112-
=ebsite www;ifpboo,s;com
OR
PS 15 A*ance Ta>ation "#ar$s: 1%%&
Introuction
'he objecti/e of this paper is to test comprehensi/e ,nowledge and understanding of
the e)aminees on the #ncome 'a) and "ales 'a) +aws pre/ailing in Pa,istan9 as are
described below; 'he e)aminees shall also be e)pected to ha/e command on the
practical application of the laws; A general ,nowledge of the %entral ()cise +aw will
also be e)amined;
The @a@er co*ers the ;olloHin! laHs:=
'he #ncome 'a) Drdinance9 $551
'he "ales 'a) Act9 1335
'he "ales 'a) Drdinance9 $555 promulgated by the Pro/inces
'he #slamabad %apital 'erritory ('a) on "er/ices) Drdinance9 $551
[95]
'he Federal ()cise Act9 $550
Loti<cations9 6ules9 7eneral Drders and %irculars issued under the abo/e
mentioned laws;
As candidates are required to ha/e comprehensi/e ,nowledge of the laws described
abo/e9 detailed contents are9 therefore9 not gi/en hereunder; 'he e)aminees are
e)pected to possess profound understanding of the subject o/er and abo/e what
they ha/e learnt at the %erti<cate "tage; 'opics e)amined at an earlier stage may or
may not be directly re!e)amined9 howe/er9 e)aminees would need to utili:e
,nowledge and s,ills learnt at the %erti<cate "tage;
Knowledge of speci<c agreements for a/oidance of double ta)ation will not be
required; %andidates are also not e)pected to quote speci<c legal cases; %ase
studies/scenario based question will be set in the e)amination;
Loti<cations and circulars in respect of Finance Act/Drdinance9 issued within a period
of less than si) months from the e)amination date will not be tested; Gowe/er9 the
Finance Act/Drdinance would be e)amined from the attempt following its date of
enforcement;
Inicati*e Ari
Syllabus Content Area Eei!ht=a!e
A comprehensi/e ,nowledge and practical applications in respect of!
#ncome 'a) +aws 00 >
10
"ales 'a) +aws
$0 > *0

7eneral ,nowledge in respect of!
'he Federal ()cise Act9 $550 (%hapters # & ## only) 2 >
10
Total
1%%
Note: 'he weight!age gi/en abo/e are for guidance purposes only and some
de/iations in setting of papers could be e)pected;
Reco::ene Reain! #aterial
%omplete #ncome 'a) +aw by " A "alam;
+aw & Practice of #ncome 'a) by ?r; #,ram!ul!Gaq; 'hese boo,s co/er all topics
of syllabus9 regularly updated and also gi/es bac,ground of any changes
made to the law;
"ales 'a) 6eady 6eference Act by " a "alam; .are Act9 6ules9 Loti<cationsE
%irculars etc on syllabus topics are included in the boo, with brief
e)planations;
Federal ()cise Act9 $550 including rele/ant noti<cations9 circulars etc; by 'ariq
Lajeeb %houdhry; 'he boo, co/ers the related topics of syllabus;
Practical Gandboo, of #ncome 'a) by ?r; #,ram!ul!Gaq;
[96]
"ynopsis of ta)ation by 4ir:a 4unawar Gussain;
Pa,istan #ncome 'a) +aw Principles and Practice by 4ian "a<ullah and Kashif
A:i Pahangiri; 'hese are /ery useful boo,s for understanding practical
application of ta)ation;
OR
PS 15 Cyber 8aHs/Cri:es "#ar$s: 1%%&
#n the todayJs era of rapid growth9 #nformation technology is encompassing all wal,s
of life all o/er the world; 'hese technological de/elopments ha/e made the transition
from paper to paperless transactions possible; =e are now creating new standards of
speed9 eRciency9 and accuracy in communication9 which has become ,ey tools for
boosting inno/ations9 creati/ity and increasing o/erall producti/ity; %omputers are
e)tensi/ely used to store con<dential data of political9 social9 economic or personal
nature bringing immense bene<t to the society;
'he rapid de/elopment of #nternet and %omputer technology globally has led to the
growth of new forms of transnational crime especially #nternet related; 'hese crimes
ha/e /irtually no boundaries and may a@ect any country across the globe; 'hus9
there is a need for awareness and enactment of necessary legislation in all countries
for the pre/ention of computer related crime;
7lobally #nternet and %omputer based commerce and communications cut across
territorial boundaries9 thereby creating a new realm of human acti/ity and
undermining the feasibility and legitimacy of applying laws based on geographic
boundaries; 'his new boundary9 which is made up of the screens and passwords9
separate the Cyber Horl ;ro: the Rreal HorlR of atoms; 'erritorially based
law!ma,ing and law!enforcing authorities <nd this new en/ironment deeply
threatening;
Ehy Cyber 8aHs At All
=e may as, why is there a need for a separate law to go/ern the %yber =orldM 'his
may also assume signi<cance loo,ing to the fact that the phenomenal spread of
#nternet has been enabled mainly due to the absence of a centrali:ed regulating
agency; Anyone who has access to a computer and a telephone networ, is free to get
hoo,ed to the #nternet; 'his uncontrollable growth of the #nternet ma,es the need for
regulation e/en more badly felt;
"ystems across the globe ha/e many di@erent rules go/erning the beha/ior of users;
'hese users in most of the countries are completely free to join/ lea/e any system
whose rules they <nd comfortable/not comfortable to them; 'his e)tra Be)ibility may
at times lead to improper user conduct; Also9 in the absence of any suitable legal
framewor,9 it may be diRcult for "ystem Administrators to ha/e a chec, on Frauds9
8andalism or Abuses9 which may ma,e the life of many online users miserable;
'his situation is alarming as any element of distrust for #nternet may lead to people
a/oiding doing transactions with online sites thereby directly a@ecting e!%ommerce
growth; 'he misuse of #nternet as an e)cellent medium of communication may in
some situations lead to direct damage to physical societies; Lon!imposition of ta)es
on online transactions may ha/e its destructi/e e@ect on the physical businesses and
also go/ernment re/enues; 'errorists may also ma,e use of web to create
conspiracies and ma,e /iolence in the society; 'herefore9 all of us whether we directly
[97]
use #nternet or not9 will li,e to ha/e some form of regulation or e)ternal control for
monitoring online transactions and the cyber world for pre/enting any instability;
Cyber Cri:es
RCo:@uter or Cyber cri:es are consiere as ille!al. unethical or
unauthoriJe beha*ior o; @eo@le relatin! to the auto:atic @rocessin! an
trans:ission o; ata. use o; Co:@uter Syste:s an NetHor$sR6
%ommon types of %yber %rimes may be broadly classi<ed in the following groups!
1. Against Individuals: -
a. Against Person: -
i; Garassment through e!mails;
ii; %yber!stal,ing;
iii; ?issemination of obscene material on the #nternet;
i/; ?efamation;
/; Gac,ing/crac,ing;
/i; #ndecent e)posure;
b. Against property of an individual: -
i; %omputer /andalism;
ii; 'ransmitting /irus;
iii; #nternet intrusion;
i/; Inauthori:ed control o/er computer system;
/; Gac,ing /crac,ing;
2. Against Organizations: -
a6 A!ainst Ao*ern:ent. Pri*ate Fir:. Co:@any. Arou@ o; Ini*iuals: =
i; Gac,ing & %rac,ing;
ii; Possession of unauthori:ed information;
iii; %yber terrorism against the go/ernment organi:ation;
i/; ?istribution of pirated software etc;
3. Against Soiety at large: -
i; Pornography (especially child pornography);
ii; Polluting the youth through indecent e)posure;
iii; 'raRc,ing;
!asi approa"es for reation of #yber $a%s
Following are the basic approaches for creation of %yber +aws9 which will ensure the
smooth go/ernance of #nternet globally!
Formulation of new laws and amendment of e)isting laws by nations within
their present territorial boundaries thereby attempting to regulate all actions
on the #nternet that ha/e any impact on their own population;
Lations may enter into multi!lateral international agreements to establish new
and uniform rules speci<cally applicable to conduct on the #nternet;
%reation of an entirely new international organi:ation9 which can establish
new rules and new means of enforcing those rules;
7uidelines and rules may naturally emerge from indi/idual decisions li,e
domain name and #P address registrations and by websites and users deciding
about whom will they patroni:eM
[98]
All of these approaches ha/e their own merits and demerits and we shall not go into
those details here;
(stablishin! a Suitable ;ra:eHor$
'here is a dire need for the emergence of a well!de<ned framewor, of %yber +aws9
which should be able to do the following!
%reate and implement a minimum set of guiding rules of conduct that would
facilitate eRcient %ommunications and reliable %ommerce through the use of
(lectronic medium;
?e<ne9 punish and pre/ent wrongful actions that attac, the electronic
medium or harm others;
Dne of the greatest concerns of the <eld of %yber +aws has been the absence (or
rather delay) of a well!de<ned and comprehensi/e framewor, of law across the
globe; 'odayJs nternet was born in the early 1315Fs while the initial e@orts for its
regulation could only surface in the late 1335Js; 'his problem has been further
aggra/ated by the steep rise in usage of #nternet in the recent years all o/er the
world and that too in the absence of any appropriate legal framewor,;
"urely9 the %yber +aw scenario is globally more complicated than traditional laws
owing to the reason that the range of acti/ities which are to be go/erned by these
laws are largely technology dri/en9 an area which is dynamically changing and is
beyond anyoneJs control; Gowe/er9 enactment of these laws pose opportunities for
nations to car/e model %yber "ocieties for the future thereby ta,ing a lead in
becoming 7lobal #' Powers;
(@ecti/e #mplementation of any law is as critical an e)ercise as its enactment; A law
implementing agency has to focus on the following major areas to be e@ecti/e!
%reating a suitable climate thereby #nducing "elf %ompliance by the "ociety;
6egular monitoring of the scenario for reliable feedbac,;
D@ering Dpenness and Fle)ibility to accept and incorporate necessary
modi<cations at appropriate times;
?istinctly establishing the Authority!6esponsibility guidelines for the
#mplementing Agency;
#n order to be e@ecti/e9 it has to be ensured that the +aw is "imple9 fair and full of
clarity; Failing this9 the law may be misused to harass indi/iduals resulting in its
de<ance; 'he implementing agency will then be compelled to ta,e correcti/e actions
to ensure implementation; 'his whole process may result in spread of corruption and
polluting of the o/erall sentiments in society ma,ing the job of law implementing
agencies more diRcult;
Cyber 8e!islations EorlHie
'o meet the challenge posed by new ,inds of crime made possible by computer
technology including telecommunication9 many countries ha/e also re/iewed their
respecti/e domestic criminal laws so as to pre/ent computer related crimes; "ome of
these countries are I"A9 Austria9 ?enmar,9 France 7ermany9 7reece9 Finland9 #taly9
'ur,ey9 "weden9 "wit:erland9 Australia9 %anada9 #ndia9 Pa,istan9 Papan9 "pain9
Portugal9 IK9 4alaysia and "ingapore;
Gowe/er9 no country has fully resol/ed all the issues such as legal9 enforcement and
pre/ention of crime; 'he legislations enacted by di@erent countries co/er only few of
the classi<ed computer related o@ences; Gowe/er9 loo,ing to the dynamic and fast
changing technology9 new types of o@ences may pop!up frequently;
[99]
"ome of the major types of o@ences against which many countries across the globe
ha/e enacted /arious Acts (mostly at preliminary le/els) are as follows !
1; Inlawful access to data in computers9
$; ?amaging data in computer etc;
*; Possession of de/ice to obtain unauthori:ed telephone facilities9
-; Inauthori:ed access to computer and computer material
0; %ommitting mischief with data;
1; ?ata spying9
2; %omputer fraud9
8; Forgery of prohibiti/e data9
3; Alteration of data9
15; %omputer sabotage;
11; False entry in an authentic deed
1$; False entry in permit license or passport
1*; (lectronic record made wrongfully
1-; (lectronic record made wrongfully by public ser/ant
10; #nterferences with business by destruction or damage of computer
11; #nterferences with computer
12; ?estruction of public document
18; ?estruction of pri/ate document
13; Inauthori:ed access with intention to commit o@ences/ computer crimes
$5; Inauthori:ed use and interception of computer ser/ices
$1; Knowingly access of computer without authori:ation related to national defense
or foreign relation
$$6 #ntentional access of computer without authori:ation to obtain <nancial
information
/06 Inauthori:ed access of computer of a 7o/ernment ?epartment or agency
/16 Knowingly causing transmission of data/program to damage a computer networ,9
data or program or withhold or deny use of computer9 networ, etc;
/26 Knowingly causing transmission of data/program with ris, that transmission will
damage a computer networ,9 data or program or withhold or deny use of computer9
networ, etc9 an unauthori:ed access of computer with intent to defraud;
Cyber laHs in Pa$istan
Keeping in line with other countries9 Pa,istan also has passed its <rst cyber law9 the
(lectronic 'ransaction Drdinance9 $55$ and the (lectronic/%yber %rime .ill $552
which aims to pro/ide the legal bac,bone for enabling e!commerce in the country;
Gowe/er the arri/al of #nternet resulted in the rise of new and comple) legal issues;
'hough Pa,istan has a detailed and well!de<ned legal system in place with laws li,e
the Pa,istan Penal %ode 13589 the Pa,istan (/idence Act 182$9 the .an,ing
Drdinance9 131$9 the Federal #n/estigation Agency Act9 132- (Act 8### of 1320)9 the
LA. Drdinance9 13339 the %ompanies Drdinance9 138- and so on; .ut at the time of
enactment of these laws nobody could really /isuali:e about the #nternet; =e must
remember that all the e)isting laws in place in Pa,istan were enacted ,eeping in
mind the rele/ant political9 social9 economic9 and cultural scenario of the
corresponding time; As li,e the rest of the world9 the e)isting laws of Pa,istan also
could not handle the /arious cyber space acti/ities; As such the need arose for a
%yber +aw;
Conclusions
'he conclusion may9 therefore9 be drawn that computer!related crime is a real9 (at
least in respect of certain o@ences) e)panding phenomenon; Furthermore9 a steady
[100]
increase in number of such crimes in this area is e)pected which demands for greater
attention of lawma,ers;
+etFs now once again re/iew the alternati/es a/ailable for establishing a
comprehensi/e legal framewor,; %an we ma,e only territorial laws applicable to
online acti/ities that ha/e no rele/ant or perhaps e/en determinable geographic
locationM #t seems to be /ery diRcult; =e must also allow responsible participants on
the #nternet to set their own rules and to help all concerned (online and o\ine); 'he
law of the #nternet has already emerged9 and we belie/e can continue to emerge with
indi/idual users /oting to join the particular systems they <nd most congenial;
Gowe/er9 this model also does not sol/e all problems9 and /arious go/ernance issues
cannot be resol/ed o/ernight; =e will need to rede<ne %yber +egal processes in this
new dynamic conte)t;
Finally9 the %yber +aw de<ned as a thoughtful group con/ersation about core /alues
and distinct bene<ts to the "ociety will persist; .ut it will not9 could not9 and should
not be the same law as that applicable to physical9 geographically de<ned territories;
Course Outlines
Cha@ter I Introuction
6ele/ance of cyber laws
(lectronic agreements are now legally /alid
7o/ernment goes electronic
%omputer crimes are punishable
#gnorance is no defense
#nternet is a part of our en/ironment
%yber laws are already here since $55$ ((lectronic 'ransaction Drdinance9
$55$ and the (lectronic/%yber %rime .ill $552)
Protect yourself by being cyber literate
?igital %ontract (ra ?awns on Pa,istan
Cha@ter / The Internet (ra
#ntroduction
Dne hundred and <fty thousand neti:ens in Pa,istan and growing fast
Falling costs and growing popularity
#nternet is a way of life
Leed for laws to go/ern the society
'echnology that dri/es the internet
Gistory of internet
#nternet in the public domain
'he emergence of the world wide web
Key contributors to the internet re/olution
4ore facets of the internet
Ad/ent of ( > %ommerce
'he process of shopping on an (!commerce site
'ypes of ( > %ommerce "ites
'he Future of .usiness is (!.usiness
(!.usiness as the Gub
Cha@ter 0 (lectronic )ocu:ent
#ntroduction
()ceptions
[101]
Amendments to other Acts
'he digital transformation
'he de<nition of an electronic document
=eb format is the uni/ersal document standard
+egally acceptable electronic records
"ome (merging issues
(lectronic ?ocuments and %yber "pace! A thought for %yber Purisprudents
Cha@ter 1 )i!ital Si!nature
#ntroduction
"ignature in a paper based society
"ignature in digital society
'ransmission of electronic documents
"ymmetric crypto system
Gash function
?e<ciencies of the symmetric ,ey system
Asymmetric crypto system
'he digital signature process
Leed for a trusted intermediary
Alternati/e encryption systems
"ymmetric > asymmetric combinations
"plit ,ey transactions
'ime stamping of a document
'wo ,ey pair system
Cha@ter 2 )i!ital Ientity #ana!e:ent
#ntroduction
%ertifying Authority (%A)
?igital %erti<cate
%erti<cation Practice ?ocument
6egistering Authorities (6A)
%ross %erti<cation
8alidity of ?igital %erti<cates
Financial +iability of the %ertifying Authority (%A)
%ustody of the Pri/ate Key
%erti<cation 6e/ocation +ist (%6+)
%orporate (n/ironment
"ecured %ustody of (lectronic 6ecords
=ill the %#D hold the KeyM
Cha@ter 3 +usiness o; Certi;yin! Authorities
#ntroduction
'he requirements of a %ertifying Authority
+icensing 7uidelines
+ocation
+icense Period
"ecurity 7uidelines
Pa,istani %ertifying Authorities
Dpportunities for #nternational Players
"er/ices D@ered
[102]
Personal ( > mail #dentity %erti<cation
"ecured "er/er %erti<cation
'he ?ilemma of the ?igital "igner
Cha@ter 4 )i!ital Contracts
#ntroduction
%ontracts 'hrough (lectronic Agents
%ontractual +iability
(lectronic ?ocuments as =eb Pages
?igital %erti<cates as (ntry Passes
'ime and Place of %ontract
Purisdiction of %ontracts
Purisdiction! A Lightmare for (!.usiness
Cha@ter 5 Cyber Re!ulatory Structure
#ntroduction
%yber 6egulations Appellate 'ribunal
Cha@ter 7 Cyber Cri:es
#ntroduction
%yber %rimes Inder ((lectronic 'ransaction Drdinance9 $55$ and the
(lectronic/%yber %rime .ill $552)
Penalties and D@ences under ((lectronic 'ransaction Drdinance9 $55$ and the
(lectronic/%yber %rime .ill $552)
'ypes of D@ences
D@ences under (lectronic 'ransaction Drdinance9 $55$ and the
(lectronic/%yber %rime .ill $552)
DRcial/Partners to be 6esponsible
?etermination of the Penalty
Purisdiction
Cha@ter 1% Intellectual Pro@erty Issues
#ntroduction
?omain Lame ?isputes
%opy 6ights ?isputes
Patents 6ights
%hapter 11 Letwor, "er/ice Pro/iders
%hapter 1$ Pri/acy and Personal 6ights
%hapter 1* +aw (nforcement #ssues
%hapter 1- ( 7o/ernance #ssues
%hapter 10 "emi %onductor Act
%hapter 11 %ommunication %on/ergence .ill
%hapter 12 .usiness Dpportunities in %yber +aw
%hapter 18 +egal #ssues in %yber Ad/ertising
%hapter 13 +egal #ssues in %yber .an,ing
%hapter $5 +egal #ssues in (merging 'echnologies
[103]
%hapter $1 +egal #ssues in %yber 'a)ation
%hapter $$ %yber =ars and %yber 'errorism
%hapter $* %yber +aw %ompliancy9 the Leed of the Gour
%hapter $- #nformation "ystem "ecurity Audit
%hapter $0 FAN
%hapter $1 %ase "tudies
Reco::ene Reain!
Cyber 8aH an Cyber Security in )e*elo@in! an (:er!in! (cono:ies
Teinab Kara,e!"halhoub9 "hei,ha Ai Nasimi
#".L15 18-0-$821- #".L1* 32818-0-$8211
Publisher (dward (lgar Publishing +td
Res@onin! to Cyber +ullyin!
Pill Poline 4yers9 Professor ?onna "ue 4c%aw9 +eaunda " Gemphill
#".L15 1-1$33-8-0 #".L1* 3281-1$33-8-$
Publisher "A7( Publications #nc %orwin Press #nc
Publication date 5$ 4ar $511
Cyber 8aHs
.issonette9 Aimee 4 Aimee 4 .issonette
#".L15 1-1$311103 #".L1* 3281-1$31110*
Publisher "A7( Publications #nc %orwin Press #nc
Publication date 52 Pun $553
(lectronic an #obile Co::erce 8aH
?r %harles =ild (Gead of "chool of +aw9 Ini/ersity of Gertfordshire9 Gead9 Leil
4ac(wan9 "tuart =einstein9 Leal 7each
#".L15 1352*3151$ #".L1* 3281352*3151-
Publisher Ini/ersity of Gertfordshire Press
Publication date $$ Feb $511
Reain!s an Cases in In;or:ation Security
4ichael ( =hitman9 Gerbert P 4attford
#".L15 1-*0--1020 #".L1* 3281-*0--1021
Publisher %engage +earning9 #nc ?elmar %engage +earning
Publication date $* Pul $515
Internet Searches ;or -ettin!. In*esti!ations. an O@en=Source Intelli!ence
(dward P Appel
#".L15 1-*38$2011 #".L1* 3281-*38$201$
Publisher 'aylor & Francis #nc %6% Press #nc
Publication date 1- Pan $511
Co:@uter Cri:e. In*esti!ation. an the 8aH
%huc, (asttom9 Pe@ 'aylor
#".L15 1-*0-00*$5 #".L1* 3281-*0-00*$5
Publisher %engage +earning9 #nc ?elmar %engage +earning
Publication date 11 4ar $515
OR
PS 15 CORPORAT( FRA')S
"#ARMS: 1%%&
)escri@tion
[104]
6eal!world help for companies combating fraud > from major management fraud to
fraudulent <nancial reporting
A must!ha/e for all auditors9 controllers9 %FDs9 and business managers9 %orporate
Fraud o@ers broad co/erage of!
'he most common and damaging types of fraud in todayJs business
en/ironment
'he many facets of fraud9 including management fraud9 corporate
go/ernance9 and top!le/el forensics issues9 as well as <nancial statement
fraud and the interconnected nature of each
%orruption bribery9 including contracting9 subcontracting9 and leasingE and
outsourcing
4isappropriation /endor billings9 s,imming9 and di/erted receipts
Fraud for the organi:ation money laundering9 price <)ing9 and fraud in the
international arena
%orporate 6esiliency 4anaging the 7rowing 6is, of Fraud and %orruption is written
for members of boards of directors and audit committees9 senior e)ecuti/es9 those
who ad/ise or report to them9 and those responsible for managing fraud and
corruption ris,s; #t describes in plain (nglish terms a proacti/e fraud and corruption
ris, management process that can enhance corporate resiliency; 'he authors pro/ide
practical insights and highlight traps to a/oid; Nuotes from their inter/iews of
business e)ecuti/es pro/ide international perspecti/es regarding changes in fraud
and corruption ris,s and techniques companies are adopting to deal with them;
Course Outlines
%hapter 1 'he Fraud Problem
%hapter $ People =ho %ommit Fraud
%hapter * 6ed Flags of Fraud
%hapter - Asset 4isappropriation9 .ribery9 and %orruption
%hapter 0 Financial "tatement Fraud
%hapter 1 Fraud ?etection and #n/estigation
%hapter 2 Fraud Pre/ention
%hapter 8 .est Practices in Fraud 4anagement
%hapter 3 'he Future of Fraud
%hapter 15 %ase "tudies
Reco::ene Reain!
1; (ssentials of %orporate Fraud by 'racy %oenen9 #".L 328!5!-25!13-1$!1
$; Fraud %aseboo, +essons from the .ad "ide of .usiness by Poseph '; =ells9
#".L 328!5!-25!1*-18!3
*; Policies and Procedures to Pre/ent Fraud and (mbe::lement 7uidance9
#nternal %ontrols9 and #n/estigation by (dward P; 4c4illan9 %PA9 %A( #".L
328!5!-21!2355*!2
-; 4anagerFs 7uide to %ompliance "arbanes!D)ley9 %D"D9 (649 %D.#'9 #F6"9
.A"(+ ##9 D4.Fs A!1$*9 A"U 159 D(%? Principles9 'urnbull 7uidance9 .est
Practices9 and %ase "tudies by Anthony 'arantino #".L 328!5!-21!23$02!-
[105]
OR
PS 15 +an$ Fraus "#ar$s:
1%%&
Failure of the <nancial ser/ices sector to properly understand ris, was clearly
demonstrated by the recent Fcredit crunchF; #n its $558 7lobal "tability 6eport9 the
#4F sharply critici:ed ban,s and other <nancial institutions for the failure of ris,
management systems9 resulting in e)cessi/e ris,!ta,ing; Financial sector super/ision
and regulation was also critici:ed for lagging behind shifts in business models and
rapid inno/ation;
'his boo, pro/ides in/estors with a sound understanding of the approaches used to
assess the standing of <rms and determine their true potential (identifying probable
losers and potential longer!term winners); #t ad/ocates a Fmore forensicF approach
towards operational ris, management and promotes transparency9 which is seen as a
facilitator of competition and eRciency as well as being a barrier to fraud9 corruption
and <nancial crime;
6is, assessment is an integral part of informed decision ma,ing9 inBuencing strategic
positioning and direction; #t is fundamental to a companyJs performance and a ,ey
di@erentiator between competing management teams; #ncreasing comple)ity is
resulting in the need for more dynamic9 responsi/e approaches to the assessment
and management of ris,; Lot all ris,s can be quanti<edE howe/er9 it remains
incumbent upon management to determine the impact of possible ris,!e/ents on
<nancial statements and to indicate the le/el of /ariation in projected <gures;
'o begin9 the boo, loo,s at traditional methods of ris, assessment and shows how
these ha/e de/eloped into the approaches currently being used; #t then goes on to
consider the more ad/anced forensic techniques being de/eloped9 which will
undoubtedly increase understanding; 'he authors identify Fbest practiceF and address
issues such as the importance of corporate go/ernance9 culture and ethics; #nsurance
as a mitigant for operational ris, is also considered; Nuantitati/e and qualitati/e ris,
assessment methodologies co/ered include +oss!data analysisE e)treme /alue
theoryE causal analysis including .ayesian .elief Letwor,sE control ris, self!
assessment and ,ey indicatorsE scenario analysisE and dynamic <nancial analysis;
8iews of industry insiders9 from organi:ations such as "tandard & Poors9 Fitch9
Germes9 I""9 IL!P6#9 ?eutsche .an,9 and Alchemy Partners9 are presented together
with those from e)perts at the F"A9 the #nternational Accounting "tandards .oard
(#A".)9 and the Financial 6eporting %ouncil;
#n addition to in/estors9 this boo, will be of interest to actuaries9 rating agencies9
regulators and legislators9 as well as to the directors and ris, managers of <nancial
institutions in both the pri/ate and public sectors; "tudents requiring a
comprehensi/e ,nowledge of operational ris, management will also <nd the boo, of
considerable /alue;
4yth!busting guidance for fraud pre/ention in a practical wor,boo, format
An e)cellent primer for de/eloping and implementing an anti!fraud program that
wor,s9 Financial "er/ices Anti!Fraud 6is, and %ontrol =or,boo, engages readers in
an absorbing self!paced learning e)perience to de/elop familiarity with the practical
aspect of fraud detection and pre/ention at ban,s9 in/estment <rms9 credit unions9
insurance companies9 and other <nancial ser/ices pro/iders;
[106]
=hether you are a ban, e)ecuti/e9 auditor9 accountant9 senior <nancial e)ecuti/e9
<nancial ser/ices operations manager9 loan oRcer9 regulator9 or e)aminer9 this
in/aluable resource pro/ides you with essential co/erage of
Gow fraudsters e)ploit wea,nesses in <nancial ser/ices organi:ations
Gow fraudsters thin, and operate
'he tell!tale signs of di@erent types of internal and e)ternal fraud against
<nancial ser/ices companies
?etecting corruption schemes such as bribery9 ,ic,bac,s9 and conBicts of
interest9 and the many inno/ati/e forms of <nancial records manipulation
%onducting a successful fraud ris, assessment
.asic fraud detection tools and techniques for <nancial ser/ices companies9
auditors9 and in/estigators
Fraud pre/ention lessons from the <nancial meltdown;
=ritten by a recogni:ed e)pert in the <eld of fraud detection and pre/ention9 this
e@ecti/e wor,boo, is <lled with interacti/e e)ercises9 case studies9 and chapter
qui::es9 and shares industry!tested methods for detecting9 pre/enting9 and reporting
fraud;
?isco/er how to mitigate fraud ris,s in your organi:ation with the myth!busting
techniques and tools in Financial "er/ices Anti!Fraud 6is, and %ontrol =or,boo,;
Cha@ter 1 8essons 8earne Fro: +an$in! Crises6
#nternational Financial %rises
=hat %aused the %risis in the Inited "tates9 IK9 Australia9 %anada9 #ndia & Pa,istanM
+essons +earned From Financial %rises;
Cha@ter / The (cono:ic Role o; Financial Inter:eiaries
'he (conomic and Financial "ystem
#ntermediation
Asset 4anagement
#ndi/iduals
#nterest 6ates
%urrent 'rends in Financial #ntermediaries
'he %hanging 6ole of .an,s
Alternati/e Financial "er/ices
Cha@ter 0 The (*ol*in! 8e!al (n*iron:ent
=hat is a .an,M
=hy Are .an,s 6egulatedM
"elected .an,ing +aws (references to Pa,istan)
"er/ices Pro/ided by .an,s
=hat .an, 6egulators ?oM
#s Prudential .an, 6egulation (@ecti/eM
[107]
F?#% ?e<nitions of %ommercial .an,s
"elected .an,ing +egislation
Cha@ter 1 Asset/8iability #ana!e:ent "A8#&
An D/er/iew of 4ar,et 6ates of #nterest
'he (@ects of #nterest 6ate 6is, on #ncome and 4ar,et 8alue
4anaging #nterest 6ate "preads;
?uration 7ap and (conomic 8alue of (quity
?uration 7ap 4anagement "trategies
Cha@ter 2 De!in! an Ris$ #ana!e:ent
?eri/ati/es
6is,s Associated =ith ?eri/ati/es;
?eri/ati/e %ontracts by Product and 'ype
Gedging =ith #nterest 6ate "waps
Gedging =ith %urrency "waps
Gedging =ith Dptions
Gedging =ith Futures
%o/ered .onds
"pecial Purpose 8ehicles ("P8s)
(nterprise 6is, 4anagement ((64)
Additional (ducational 6esources
Cha@ter 3 Co::ercial an Inustrial 8oans
'he 6ole of Asymmetric #nformation in +ending
'he %ompetiti/e (n/ironment
'he .oard of ?irectors =ritten +oan Policy
"e/en =ays to 4a,e +oans
%ollecting +oans
Principal +ending Acti/ities
%ollateral
'he +ending Process
#nternational +ending
Cha@ter 4 Real (state an Consu:er 8enin!
6eal (state +ending
%haracteristics of 4ortgage +oans
%onsumer +ending
Finance %harges
Annual Percentage 6ate
6eal (state and %onsumer %redit 6egulation #f %redit is ?enied
[108]
Pri/acy #ssues
%redit %ard Accountability9 6esponsibility and ?isclosure Act of $553 (%redit %A6?
Act)
Cha@ter 5 +an$ Ca@ital Ae?uacy
.asel %apital Accords
(nterprise 6is, 4anagement ((64) and (conomic %apital
Accounting #ssues
=hatJs Le)tM
Cha@ter 7 (*aluatin! +an$ Per;or:ance
(/aluating Publicly 'raded .an,s
(/aluating %ommercial .an,s
F?#% .an, ?ata 7uide
Cha@ter 1% Pay:ents Syste:s
4oney
+egal 'ender
6etail Payments
+arge!#nterban, Payments
Cha@ter 11 Other Financial Ser*ices
%ash 4anagement "er/ices
'rust "er/ices9 Pri/ate =ealth and Asset 4anagement
Cha@ter 1/ A Auie to Isla:ic +an$in! "+y #oha:e AriI&
#slamic .an,ing9 an Alternati/e #ntermediation
"pecial Nuestion on #ntermediation by .an,s
Future ?irection
Cha@ter 10 The -ieH ;ro: the To@: Reco::enations ;ro: A
Su@erintenent o; +an$s "+y ,ohn )6 Darrison&6
'ips for .an, ?irectors
'ips for .orrowers
'ips for #n/estors
=hat +ies Ahead
Cha@ter 11 Case Stuies
Reco::ene Reain!
1; .an,ing and Financial #nstitutions A 7uide for ?irectors9 #n/estors9 and
.orrowers .enton (; 7up #".L 328!5!-25!823-2!-
$; Dnline .an,ing +aws in Pa,istan (+atest (dition) by Losheen 4unawar9
published by Al > Loor +aw .oo, Gouse9 +ahore;
*; %hec, & ?ishonor of %hec, (latest edition) by Pustice (6) ?r; 4unir Ahmed
4ughal9 published by 4uneeb .oo, Gouse9 +ahore;
[109]
-; Forensic Accounting and Fraud ()amination9 1st (dition 4ary!Po Kranacher
(Qor, %ollege9 %ity Ini/ersity of Lew Qor, )9 6ichard 6iley (=est 8irginia
Ini/ersity )9 Poseph '; =ells (Association of %erti<ed Fraud ()aminers )
0; Dperational 6is, Assessment 'he %ommercial #mperati/e of a more Forensic
and 'ransparent Approach by .rendon Qoung9 6odney %oleman #".L 328!5!
-25!20*82!*
1; Dperational 6is, 'oward .asel ### .est Practices and #ssues in 4odeling9
4anagement9 and 6egulation by 7reg L; 7regoriou #".L 328!5!-25!*351-!1
[110]