ZICA Accountancy Programme Students Handbook PDF

ZICA
Student Handbook
ZICA Technician, Licentiate and
Professional Programmes
First edition June 2011

ISBN 9780 7517 9661 2
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from
the British Library
Published by
BPP Learning Media Ltd
BPP House, Aldine Place
London W12 8AA
www.bpp.com/learningmedia
Introduction
The Zambia Institute of Chartered Accountants, Rules and Syllabi issued in June 2011.
This handbook is issued to all students registered under ZICA programmes. It is designed to answer
queries you may have as a newly registered student and further questions that may arise throughout your
studies with the Institute. If you cannot find the answer to your queries in this handbook, please contact
the Institute.
Zambia Institute of Chartered Accountants
24 Joseph Mwilwa Road
Plot 284A,
Rhodes Park
Tel: 224489/222773 Fax: 224490/236593
E-mail: zica@coppernet.zm
Website: www.zica.co.zm
ZICA (Kitwe Office)
David Mwila House
(formerly Mutondo House)
Room 105/106
P O Box 23593
Kitwe
Tel: 222002
Fax: 222002
Email: zicakt@coppernet.zm
All our rights reserved. No part of this publication may
be reproduced, stored in a retrieval system or
transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise,
without the prior written permission of BPP Learning
Media Ltd.
BPP Learning Media Ltd and the

Zambian Institute of Chartered Accountants (ZICA)
2011
Contents
Page
1.0 Registration and Entry Requirements

1.1 Registration Requirements
1.2 Minimum Entry Requirements
5
5
2.0 Methods of Study

2.1 Full-time
2.2 Part-time
2.3 Distance
6
6
6
3.0 Examinations
3.1
3.2
3.3
3.4
Examination Timetable
Critical Dates
Assessment
Examination Procedures
7
7
7
7
4.0 Course Structure and Syllabi

Introduction
4.1 Technician Level
T1 Financial Accounting
T2 Cost Accounting
T3 Mathematics and Statistics
T4 Business Economics
T5 Taxation
T6 Management
T7 Information Technology and Communication
4.2 Licentiate Level
L1 Financial Reporting
L2 Management Accounting
L3 Integrated Taxation
L4 Auditing
L5 Decision Making Techniques
L6 Corporate Financial Management
L7 Business and Corporate Law
L8 Risk and Management Control Systems
4.3 Professional Level
P1 Advanced Financial Reporting
P2 Advanced Management Accounting
P3 Strategic Financial Management
P4 Audit and Assurance
P5 Strategic Management
9
10
10
12
15
17
20
23
26
28
28
30
32
35
37
39
42
45
47
47
49
52
54
57
5.0 Rules and Regulations

5.1 Progression
5.2 Exemptions
5.3 Deferments
60
60
61
5.4 Remarking
5.5 Certification
5.6 Exam Malpractices and Penalties
61
62
62
6.0 Study Guidance

6.1 How to study
6.2 How to revise
6.3 How to pass your exams
63
64
65
1.0
Registration and Entry Requirements
1.1
Registration Requirements
All students must register with the Institute at the start of their course. Student
registration numbers will be sent to all students.
Minimum Entry Requirements

Minimum entry requirements are set out below:
Technician
Level
Normal route
Full school certificate, or its

equivalent, with credits in
English language, Mathematics
and three other subjects.
Mature Age Entry Route (MAER)
Aged at least 18 years or

At least three years working
experience in accounting related
functions.
Holders of any other

qualifications approved by ZICA.
Licentiate
Level

Professional
Level
Holders of Licentiate level

qualification or its equivalent.
Holders of an Accounting degree,
or its equivalent from a
recognized institution.
Penultimate level of a
professional accountancy body
recognized by ZICA.
A candidate registered under the Mature Age Entry Route (MAER) who has not
passed the mandatory papers (T1 Financial Accounting, and T3 Mathematics and
Statistics) will not be allowed to attempt any other additional subjects.
1.0 Registration and Entry Requirements
1.2
2.0
Methods of Study
The method of study shall be full time and part time at colleges and Institutions
approved by TEVETA. Private home study is also encouraged.
2.1
Full-time
The student on full-time study attends class at one of the accredited tuition providers
as a full-time student of the ZICA Accountancy Programme
2.2
Part-time
The student on part-time study attends tuition at one of the accredited tuition
providers as a part-time student of the ZICA Accountancy programme.
2.3
Distance
The student on the distance learning mode of study registers with the Institute and
reads the materials for the subject they want to sit from home. They are not
registered with any tuition provider.
NOTE:
Students may change modes of study. However they must inform the Institute every
time they wish to change.
3.0
Examinations
3.1
Examination Timetable
ZICA will run two examination sessions in a year; June and December. The
Examination timetable for each year shall be sent to individual candidates and
examination centres. The timetable will also be posted to the Institutes website
www.zica.co.zm during the first week of February every year and published in all
issues of the Student Accountant magazine.
3.2
Critical Dates
Students have to adhere to the closing dates in the table below.
Examination session
Fees
June
December
Registration/Reregistration/Exemption
31 March
31 August
Examination
30 April
30 September
All registered students must pay the annual subscription fee by 31 March of each
year. Students that pay subscription fees after 31 March will pay a penalty fee as will
be determined by the Institute.
3.3
Assessment
Assessment shall be by a national examination only.
All papers shall be marked out of 100. To pass any paper, a candidate must obtain at
least 50%.
The results of the examinations shall be published within eight (8) weeks after the
examinations.
Examination Centres shall be approved by ZICA and published in the Student
Accountant magazine.
Examination Procedures
You must be in the examination room at least 30 minutes before the paper is due to
commence. The doors will be closed at that time to enable the invigilator to issue
instructions and distribute stationery, and give you an opportunity to sign the
attendance register.
Do not bring any paper or printed material into the examination room. Possession of
such material may result in your being barred from participation in the examination.
Examination paper on which to answer the questions will be provided.
You should switch off your mobile phone.
3.0 Examinations
3.4
If you arrive more than 40 minutes after the starting time of the examination, you will
not be allowed to sit that paper.
You will not be permitted to leave the examination room during the first hour nor the
last 30 minutes.
You will not be allowed finally to leave the examination room without permission until
you have handed in your answer booklets.
You must cease writing immediately the invigilator has declared the examination over.
When you answer questions, you should:
Start each answer on a new page.
Write answers in ink.
Ensure that your student number, National Registration number and the
question numbers are written on answer booklets in the blocks provided for
this purpose.
Read the instructions given carefully.
Arrange your answers in numerical sequence before handing in your

examination paper.
4.0
Course Structure and Syllabi
Introduction
This section comprises the detailed Syllabi and Course Structure of all three levels. It indicates what
could be covered in each exam.
Syllabus objectives these are the general learning objectives. They indicate what you should
understand and be able to do when you have studied and understood the whole syllabus.
Topic list the topics covered in each syllabus are listed in detail. Percentage weightings on each
section of the syllabus should help you plan your study time.
Recommended reading this includes the Study Manual, professional standards and other
readings that should reinforce your understanding of the topics covered in the syllabus. The list is
not exhaustive and you are advised to read as widely as possible.
Each syllabus gives the following information:
4.1
Technician Level
Course Structure
T1
Financial Accounting
T2
Cost Accounting
T3
Mathematics and Statistics
T4
Business Economics
T5
Taxation
T6
Management
T7
Information Technology and Communication
Technician membership of ZICA is acquired by application immediately upon successful

completion of the course. The designation is ZICA Tech.
T1
Financial Accounting
Learning outcomes
On successful completion of T1, students should be able to:
1
Describe the context and purpose of financial accounting
Apply double-entry bookkeeping techniques to record financial transactions and to maintain

accounting records
Identify and correct omissions and errors in accounting records
Prepare financial statements for sole traders, partnerships and limited companies
Calculate and interpret simple financial ratios
Describe the features of public sector accounting
Content
10
Context and purpose (10%)
Purpose of financial reporting
Needs of users of financial statements
Conceptual framework
Regulatory framework
Financial transactions and accounting records (30%)
Business transactions and documentation
Books of prime entry
Principles of double-entry bookkeeping
Recording financial transactions and events
Journal entries and balancing ledger accounts
The trial balance
Omissions and errors (20%)
Control accounts
Bank reconciliations
Correction of errors
Suspense accounts
Incomplete records
Financial statements (20%)
Statement of comprehensive income
Statement of financial position
Statement of cash flows
Sole traders
Partnerships
Limited companies
Not-for-profit organisations
Departmental accounts and manufacturing accounts
Interpretation of accounts (10%)
Financial ratios
Interpretation and limitations
Public sector accounting (10%)
Statutory and regulatory framework
Pre-audits
Cash accounting and accruals accounting
Format of the exam

Marks
Section A:
10 compulsory multiple choice questions, 2 marks each
20
Section B:
Any 4 out of 5 questions, 20 marks each
80
100
Time allowed:
3 hours, plus 15 minutes reading time
ZICA T1 Study Manual
Wood, F and Robinson, S, Bookkeeping and Accounts, 7th edition, FT Prentice Hall, 2009
Wood, F and Sangster A, Business Accounting 1, 12th edition, FT Prentice Hall, 2011
Recommended reading
11
T2
Cost Accounting
Learning outcomes
1
Explain the purpose and importance of cost accounting for an organisation
Distinguish between the various cost classifications and explain the reasons for the different
classifications
Identify and calculate cost information for use in decision-making
Explain and apply the accounting methods for materials
Explain and apply the accounting methods for labour
Explain and apply the accounting methods for overheads
Apply absorption costing and marginal costing and explain activity-based costing
Apply a range of costing systems including job, batch, contract, service and process costing
Record cost and revenue data in the accounting system
10
Explain the purpose of standard costing and calculate the difference between actual
performance and standards
Content
12
Introduction to cost accounting (5%)
Meaning and scope of cost accounting
Role and function of cost accounting within the organisational framework
Relationship between cost accounting, management accounting and financial accounting
Cost classification (10%)
The concept of cost
Importance of cost recording, cost analysis and reporting
Cost objects and cost accumulation
Manufacturing cost elements: direct, indirect, prime, product, service, period, production and
non-production costs
Cost behaviour (10%)
Cost classification for decision purposes
Cost behaviour: variable, fixed, semi-variable and stepped fixed costs
High-low method
Materials (10%)
Purchasing and cost control systems and procedures
Accounting for inventory and inventory valuation methods using Last In First Out (LIFO), First
In First Out (FIFO) and Average Cost (AVCO)
Inventory control techniques Economic Order Quantity (EOQ) and Just-In-Time (JIT) concepts
Labour (10%)
Modes of remuneration
Incentive schemes
Procedures and documentation for effective recording and analysis
Labour turnover
Overheads (10%)
Characteristics of overheads
Cost units and cost centres
Revenue centres
Profit centres
Responsibility centres
Absorption costing and marginal costing (15%)
Cost allocation and cost distribution techniques
Apportionment and absorption
Over and under absorption
Marginal costing
Absorption costing versus marginal costing
Reconciliation of absorption costing and marginal costing
Basic knowledge and application of activity-based costing
Application of cost accounting information (10%)
Job and batch costing
Contract costing
Service costing
Process costing
Cost bookkeeping (5%)
Recording of transactions under cost accounting
Control accounts
Integrated bookkeeping systems
10
Standard costing and variance analysis (15%)
Establishment of standards and types of standard
Variance analysis for costs
Explanation of variances
Operating statements using absorption costing and marginal costing
13
Format of the exam

Marks
Section A:
20
Section B:
80
100
Time allowed:
Recommended reading
14
Drury, C, Management and Cost Accounting, 7th edition, Cengage Learning EMEA, 2008
Lucey, T, Costing, 7th edition, Cengage Learning EMEA, 2008
T3
Mathematics and Statistics
Learning outcomes
1
Demonstrate the use of mathematical techniques, including probability and ratios
Demonstrate the use of probability where risk and uncertainty exist
Apply financial mathematical techniques
Apply techniques for summarising and analysing data
Calculate correlation coefficients for bivariate data and apply the techniques of simple
regression analysis and time series analysis
Mathematical techniques (15%)
Powers and roots
Logarithms
Use of formulae
Percentages and ratios
Accuracy and rounding
Simultaneous and quadratic equations
Index numbers
Probability and uncertainty (15%)
Simple probability
Addition and multiplication rules
Conditional probability
Expected values
Risk and uncertainty
Financial mathematics techniques (25%)
Simple and compound interest
Annuities and perpetuities
Loans and mortgages
Net present value (NPV) and internal rate of return (IRR)
Presentation and analysis of statistical data (20%)
Definition of data and information
Presentation of data
Analysis of data: Measures of central tendency and dispersion
Frequency distributions
Content
15
Correlation, regression and time series (25%)
Scatter diagrams, the correlation coefficient and the coefficient of determination
Linear regression
Time series analysis and trends
Seasonal variations with additive and multiplicative models
Format of the exam

Marks
Section A:
20
Section B:
80
100
Time allowed:
Recommended reading
16
Lucey, T, Quantitative Methods, 6th edition, Thomson Learning, 2002
Morris, C, Quantitative Approaches in Business Studies, 7th edition, FT Prentice Hall, 2008
T4
Business Economics
Learning outcomes
1
Explain economic concepts and terminology commonly used in commerce
Describe the role of market demand and supply in establishing prices and explain the role of
government in regulating market failure in Zambia
Describe the main forms and goals of business operating in Zambia
Explain the theories of short and long run cost behaviour and short run profit maximisation
Describe the role of market structure and competition in establishing profits of a business and
explain the role of government in modifying markets in Zambia
Explain the methodology used by the Central Statistical Office (CSO) in measuring National
Income and describe the National Income and other data produced by the CSO
Identify the factors determining the levels of National Income in Zambia
Explain the main features of the monetary and financial environment affecting Zambian
business and their likely impacts
Identify the impact on Zambia of the international sector and of major national and
international economic institutions
10
Explain the role of government in stabilising and encouraging the development of the Zambian
economy
Introduction to economic concepts (5%)
The Economic Problem: scarcity, choice and opportunity costs
Production possibility frontier: causes of economic growth and reasons for inefficiency
Market versus Planned economic solutions to the economic problem and role of privatisation
and liberalisation
Encouraging economic growth and development: primary, secondary and tertiary sectors;
Zambian government policies for encouragement of diversity, growth and development; factors
inhibiting growth in Zambia, the information economy and growth
Economics as a social science: methods of analysis and explanation used; positive versus
normative economics
Price theory (10%)
Market demand and supply curves: derivation of equilibrium price
Elasticities of demand and supply
Causes of price instability in markets for primary goods
Price stabilisation approaches
Market failures and their regulation
Forms of markets and distribution networks
Forms of enterprise (5%)
Legal forms of business
Goals of enterprises
Content
17
18
Cost theory and profit maximization (10%)
Short run cost behaviour: fixed and variable costs and the law of eventually diminishing
marginal returns
Profit maximisation in the short run: Marginal Cost = Marginal Revenue
Long run cost behaviour: economies and diseconomies of scale.
Market structures and competition (15%)
Structure, conduct, performance analysis: perfect competition, monopoly and monopolistic

competition, including cartels
Behavioural theories of the firm: oligopoly, game theory, managerial theories
Market protection policies: industrial subsidies, tariffs and quotas, monopsonistic purchasing
arrangements
Information economics: impact of reduced search costs and low variable costs of provision on
market structures and pricing
National Income accounting (5%)
Central Statistical Office (CSO) methodology of constructing measures of Zambian National

Income (NI)
Interpretation and uses of National Income data: cross sectional and time series evaluations;
difficulties
Other CSO data: Census of Production, Population and Housing; Census of Agriculture; Balance
of Payments (compiled by Bank of Zambia)
National Income determination (15%)
Aggregate demand and supply analysis of national income determination
Circular flow of income model of aggregate demand
Macroeconomic equilibrium conditions: injections and withdrawals, planned expenditure =

national income
Keynesian multiplier theory
The business cycle
Monetary and financial environment of business (10%)
Financial intermediation: main financial deficit and surplus units; functions of intermediaries;
Zambian financial intermediaries and markets (including equity markets)
Roles of Bank of Zambia: banker to banking system and government; implementation of

monetary policy, fiscal agency, prudential supervision of banking and financial services; foreign
exchange supervision
Credit creation by commercial banks: credit multiplier; measures of money stock (monetary
aggregates); impacts of bank behaviour on business
Interest rate determination: calculation of bond and bill rates; main influences eg. yield curve,
inflation, risk; impact of interest rates on equity markets
Global banking crisis: origins; consequences for banking and business; policies to resolve crisis
(MC= MR)
International sector (15%)
Theories of free trade and protectionism: comparative advantage; arguments for and against
protectionism
Forms of protectionism and cross-national integration: policies; alliances (including Southern

Africa Development Community (SADC)), common markets (including Common Market for
Eastern and Southern Africa (COMESA)) customs unions, free trade areas and economic
communities (including Economic Community of West African States (ECOWAS))
Balance of Payments: construction and characteristics of Zambian accounts; terms of trade;

deficits and financing; capital flows
Exchange rates: calculation; determination; policies to manage exchange rates
International financial institutions and external debt: development funding; roles of World Bank
Group; International Monetary Fund; impact of external debt on balance of payments
10
Government macroeconomic policy (10%)
Goals of macroeconomic policy in Zambia: role of Ministry of Finance and National Planning
(MoFNP) in structural adjustment and poverty reduction; main elements of current National
Development Plan; inflation control; balance of payments equilibrium
Zambian Public Financial Management system (PFM): sources of revenue; uses of government
expenditure; role of external borrowing; impact of tax on distribution and incentives; public
debt management; public sector investment
Inflation and hyperinflation: measurement of prices; consequences of inflation and

hyperinflation; causes; policies to control inflation
Monetary policy: goals; direct and indirect instruments of monetary policy; consequences of
monetary policy for business
Format of the exam

Marks
Any 2 out of 3 questions on Microeconomics, 25 marks each
50
Any 2 out of 4 questions on Macroeconomics, 25 marks each
50
100
Time allowed:
Griffiths, A and Wall, D, Applied Economics, 11th edition, FT Prentice Hall, 2007
Recommended reading
19
T5
Taxation
Learning outcomes
1
Describe the principles of taxation and explain the role played by taxation in the economy
Calculate taxable income for unincorporated businesses and compute income tax payable
thereon
Calculate Income Tax payable on emoluments from employment and advise on how it is paid
under the Pay As You Earn system
Calculate taxable income from letting of property and calculate withholding tax on all
investment income
Calculate company income tax payable and explain how it is payable
Calculate taxable profits from farming and compute income tax payable on farming and fishing
income
Explain the treatment of transfers of value and calculate Property Transfer Tax payable
Explain the administrative procedures for direct taxes, including objections and appeals
procedure
Calculate and account for Value Added Tax on all types of supply
10
Calculate Customs and Excise duties and advise on the clearing procedure for motor vehicles
Content
20
Role and purpose of taxation (10%)
The Zambian system of taxation
History of taxation in Zambia
Qualities of a good tax system
Functions of taxation in the economy
The role of the Ministry of Finance and the Zambia Revenue Authority
Classification of taxes
Taxable and exempt income and gains
Taxable and exempt persons
Residence, ordinary residence and domicile and their implications for taxation
Taxation of unincorporated businesses (15%)
Trades, professions and vocations and badges of trade
Computing taxable business profits for individual sole traders
Capital allowances on implements, plant and machinery, industrial buildings and commercial
buildings
Computing taxable profits for partnerships and allocation to individual partners
Accounting dates and basis of assessment, including rules applicable on commencement,

cessation and change of accounting date.
Computing Income Tax on business profits for sole traders and partners
Relief for trading losses
Presumptive taxes
Taxation of income from employment (15%)
Emoluments, employment and office
Employment compared with self-employment
Basis of assessment for emoluments
Taxable and exempt emoluments
Taxation of benefits in kind
Taxation of payments made on termination of employment
Allowable expenses
Operation of the Pay As You Earn system
Taxation of investment income received by individuals (10%)
Types of investments for individuals and companies
The withholding tax system
Computing taxable income from letting of property and loss relief
Treatment of income from savings and financial investments
Treatment of dividends received from Zambian companies
Company income taxation (15%)
Residence of a company for Income Tax purposes
Taxation of business profits for companies
Taxation of investment income received by companies
Computing company Income Tax payable and its payment
Relief for tax losses incurred by companies
Taxation of farming enterprises (10%)
Characteristics of farming and fishing enterprises
Computing farming profits for individuals and companies
Capital allowances for farming enterprises
Relief for losses from farming and fishing businesses
Averaging of farming and fishing income
Valuation of livestock
Property Transfer Tax (5%)
Meaning of transfer and realised value
Transfers within groups of companies
Transfers to members of the immediate family
Computation of property transfer tax and its payment
21
Administration of direct taxes (5%)
Comprehensive computation of Income Tax payable by Individuals
Payment of Income Tax by individuals
Payment of Income tax by incorporated businesses
Payment of withholding taxes, Turnover Tax, and Property Transfer Tax
Objections and appeals procedure
Role, functions and composition of the Revenue Appeal Tribunal
Value Added Tax (VAT) (10%)
Taxable and exempt supplies for VAT purposes
Registration and deregistration
The tax invoice, tax point and tax period
Recovery of input VAT, pre-registration input VAT and partial exemption
Bad debt relief
Special schemes
VAT inspection/control visits, payment of VAT, submission of VAT returns, penalties and
appeals for review
Duty and reverse tax
10
Customs and Excise (5%)
Introduction to tariffs and computation of Customs Values (VDP), customs duty and excise
duty
Importation and clearance of motor vehicles
Valuation principles applicable on imports
Exports and export concessions
Rules of origin and tax implications
Trade agreements and their benefits to the economy
Payment of Customs and Excise duties
Format of the exam

Marks
Section A:
20
Section B:
80
100
Time allowed:
Recommended reading
22
Hassan, Mohammed Mulenga, Taxation in Zambia, ZICA
T6
Management
Learning outcomes
1
Identify the different types of organisation and key stakeholders
Explain how the strategic position of the organisation is evaluated
Explain how the organisation can be designed and structured for success
Discuss the role of managers and the theories of management
Discuss leadership theories, styles and issues
Explain the different theories of motivation
Explain the role of change management in implementing corporate strategy
Explain the importance of the recruitment process, training, development and evaluation of
employees
Describe the specific challenges faced in managing a public sector organisation
Different types of organisation and stakeholders (10%)
Different types of organisation and their characteristics
Benefits and limitations of different types of organisation
Different types of stakeholders
Small and medium-sized enterprises
Strategic position of an organisation (10%)
Fundamental nature of strategy
Relationship between different levels of strategy
Implementation of strategy
Assessment of the micro-environment
Assessment of the macro-environment, using PESTEL
Design and structuring of an organisation (10%)
Role and purpose of core functions
Different structures of organisations
Organisation of internal relationships
Design of structure, processes and relationships
Culture and behaviour
Role of the managers and theories of management (10%)
Role of the manager and principles of management
Management skills
Theories of management
Content
23
Leadership theories, styles and issues (10%)
Difference between management and leadership
Theories of leadership
Leadership in modern organisations
Nature and uses of different styles of leadership
Uses, benefits and possible obstacles to delegation
Theories of motivation (10%)
Nature and process of motivation
Theories of motivation
Personal achievement and career development
Role of job design in motivation
Change management (15%)
Concept of strategic change
Different types of change
Impact of change triggers on organisation
Techniques for managing the change process
Role of leadership in managing change
Techniques for overcoming resistance to change
Relationship between change process and organisational culture
Ethical issues raised by change management and strategy implementation
Strategic human resources management (15%)
Role of human resources management
Process and methods of recruitment
Training and development process and use in improving performance
Purpose and process of performance evaluation
Public sector organisations (10%)
Definition of public sector organisations
Objectives of public sector organisations
Features, structure and issues arising in a community, non-profit organisation
Format of the exam

Marks
Time allowed:
24
100
Bratton, J and Gold, J, Human Resource Management: Theory and Practice, 4th edition, Palgrave
Macmillan, 2007
Handy, C, Understanding Organisations, 4th edition, Penguin, 1993
Mullins, L J, Management and Organisational Behaviour, 9th edition, FT Prentice Hall, 2010
Recommended reading
25
T7
Information Technology and Communication
Learning outcomes
1
Demonstrate the core skills needed to operate a personal computer (PC) in the business
environment
Demonstrate the communication skills expected of a professional accountant
Use spreadsheets to facilitate the presentation of data
Describe the elements of an organisations information technology infrastructure
Explain how the quality and security of an information system can be protected
Content
26
Information technology skills (20%)
Common types of hardware and software used within a business organisation
Basic skills involved in operating a PC including Microsoft Windows, email and the Internet
Basic skills involved in operating word processing and spreadsheet software
Importance of using passwords and back-ups when operating a PC
Communication skills (20%)
Attributes of clear, effective and appropriate communication
Presentation of information using a variety of methods including business reports, business

letters, memos and emails
Other methods of presenting information including tables, bar charts, pie charts and line
graphs
Spreadsheets (10%)
Features of spreadsheets software
Uses of spreadsheet software in the day-to-day work of the accountant
Organisational information infrastructure (35%)
Main elements of an organisations Information systems
Common types of Information technology (IT) network including Client-Server and Peer-to-Peer
networks
Control issues arising from the introduction of a network
Types of accounting information systems and their roles
Role of databases within an accounting information system and common types of data
processing
Ethical implications of accounting information systems
Information system quality and security (15%)
Importance of data quality and security
Common threats to data quality and security
Types of controls used to counter the threats to data quality and security
Format of the exam

Marks
Section A:
Any 3 out of 4 questions on Information Technology, 20 marks each
60
Section B:
Any 2 out of 3 questions on Communication Skills, 20 marks each
40
100
Time allowed:
Bovee, C L, Thill, J V and Schatzmann, B E, Business communication today, 11th edition, FT

Prentice Hall, 2011
May, C B and May, G, Effective Writing: A Handbook for Accountants, 8th edition, FT Prentice
Hall, 2008
Recommended reading
27
4.2
Licentiate Level
Course Structure
L1
Financial Reporting
L2
Management Accounting
L3
Integrated Taxation
L4
Auditing
L5
Decision Making Techniques
L6
Corporate Financial Management
L7
Business and Corporate Law
L8
Risk and Management Control Systems
Licentiate membership of ZICA is acquired by application immediately upon successful

completion of the course. The designation is ZICA Lic.
L1 Financial Reporting
Learning outcomes
On successful completion of L1, students should be able to:
1
Describe the conceptual and regulatory framework for financial reporting and apply the principles
set out in the International Accounting Standards Board (IASB) Framework
Prepare single entity financial statements which comply with International Financial Reporting
Standards (IFRS)
Interpret and analyse the information in published financial statements
Acquire basic understanding of how to prepare group financial statements which comply with
IFRS
Identify the issues involved in preparing financial statements for specialised and public sector
entities
Content
28
The conceptual and regulatory framework (10%)
The conceptual framework
The regulatory framework: IASB structure, global harmonisation
Financial statements (40%)
Presentation of financial statements
Non-current assets
Intangible assets
Impairment of assets
Reporting financial performance
Inventories and construction contracts
Provisions and events after the reporting period
Accounting for leases
Accounting for taxation
Statement of cash flows
Segment reporting
Interpretation and analysis (15%)
Earnings per share
Interpretation of financial statements
Group financial statements (25%)
Business combinations
Consolidated statement of financial position
Consolidated statements of financial performance
Accounting for associates
Specialised and public sector entities (10%)
Agriculture
Branch accounts
Public sector financial statements
Format of the exam

Marks
Section A:
2 compulsory questions, 30 marks each
60
Section B:
40
100
Time allowed:
ZICA L1 Study Manual
2011 International Financial Reporting Standards, IFRS Foundation Education Initiative
Abbas, A M, Holt, G J and Knorr, L, Wiley Practical Implementation Guide and Workbook for
IFRS, 3rd edition, Wiley, 2011
Dodge, R, Foundations of Business Accounting, 2nd edition, Cengage Learning, 1997
Dunn, J, Financial Reporting and Analysis, Wiley, 2010
Elliott, B J and Elliott, J, Financial Accounting and Reporting, 14th edition, FT Prentice Hall,
2010
Wood, F and Sangster, A, Business Accounting 1, 12th edition, FT Prentice Hall, 2011
Wood, F and Sangster, A, Business Accounting 2, 11th edition, FT Management, 2008
Recommended reading
29
L2
Management Accounting
Learning outcomes
1
Explain the importance of management accounting for decision making and contrast it with
financial accounting
Apply relevant costing principles to different scenarios and explain the use of relevant costing
in short-term decision making
Apply the cost volume profit model and critically evaluate its value in decision making
Describe and evaluate different pricing strategies
Analyse cost and revenue variances and recommend appropriate responses to identified
variances
Prepare those budgets commonly used in practice and explain the behavioural implications of
using budget variances for performance evaluation
Apply alternative modern management accounting techniques and explain when each is
appropriate
Content
30
Introduction to Management Accounting (5%)
Scope of Management Accounting
Management Accounting compared to Financial Accounting
The role of Management Accounting in cost analysis and decision making
Short-term decision making (15%)
Decision making process
Short-term decisions
Considerations for qualitative factors
Cost volume profit analysis (15%)
Nature of short term planning decisions
The accountants Cost Volume Profit (CVP) Model
Practical applications of the CVP model
Critical evaluation of assumptions underlying the model
Comparison with the economists CVP Model
Usefulness and limitations of the model
Costs and pricing decisions (15%)
Cost plus pricing
Marginal cost plus pricing
Target pricing
Life cycle pricing
Other pricing methods
Changes in price levels
Standard costing and variance analysis (15%)
Variance analysis for costs
Variance analysis for revenue
Variances and control
Operating statements using absorption costing and marginal costing
Budgeting and budgetary control (20%)
Introduction to budgeting: meaning and usefulness, benefits and limitations, the budgeting
process
Types of budgets
Behavioural implications of budgeting and budgetary control
Application of Information technology in budget preparation
Forecasting
Modern management accounting techniques (15%)
Throughput accounting
Target costing
Life cycle costing
Backflush accounting
Kaizen costing
Format of the exam

Marks
Section A:
60
Section B:
40
100
Time allowed:
Atkinson, A A, Kaplan, R S, Matsumura, M, and Young, S M, Management Accounting:

Information for Decision-Making and Strategy Execution, 6th edition, FT Prentice Hall, 2011
Recommended reading
31
L3
Integrated Taxation
Learning outcomes
1
Discuss the interaction of taxes, prepare relevant tax computations and advise when the taxes
are payable
Evaluate the tax implications of the various investment opportunities and calculate the taxes
payable
Evaluate the approaches to carrying out tax audit and investigations, and perform appropriate
tax investigations
Calculate taxes payable on overseas transactions, including those of multinational enterprises
Calculate taxes payable on mining income and gains computed using applicable tax law
Calculate relevant taxes payable by enterprises in the insurance and financial services sector
Advise on the taxation implications of various financial arrangements that could be made by
individuals and enterprises
Advise on the measures that could be put in place to minimise or defer taxation liabilities
Content
32
The interaction of taxes (15%)
Liability of various persons to taxes and collection of taxes using a wide range of methods such
as self assessment, direct assessment, deduction at source and so on
Objections and appeals procedure in respect of all extant taxes
Income Tax liabilities for sole traders, partners, employees and individuals with investment
income and farming income
Interaction of corporate taxation and withholding taxes
Value Added Tax, Customs and Excise, Capital Allowances and Income Tax
Property Transfer Tax, estates and trusts
Presumptive Taxes, Capital Allowances and losses
Taxation and Investment regulation in Zambia (10%)
Legal, administrative and political environment of the Zambian tax system
Types of business investment in Zambia
Taxation of inward investments
Taxation of outward investments
Taxation incentives under the Zambia Development Agency Act
Negotiating fiscal incentives with government
Legal, administrative and political environment of the Zambian tax system
Tax audit and investigations (10%)
Introduction to tax audits
Basis of accounting, ratio analysis and preliminary review of financial statements
The statement of financial position/balance sheet
Incomplete records of taxpayers
Uncovering hidden income
Perpetual tax loss position and loss harvesting
Overseas aspects of taxation (15%)
Liability of residents and non-residents to Income Tax
Liability of foreign income to Income Tax and basis of assessment
Trading within Common Market for Eastern and Southern Africa
Indirect taxes on overseas operations
Double taxation conventions and the Organisation for Economic Co-operation and Development
(OECD) model
Methods of giving double taxation relief
Transfer pricing and thin capitalisation
Taxation of multinational enterprises
International tax avoidance
Taxation of mining operations (10%)
Introduction to mining operations
Treatment of revenue and capital expenditure, including environmental expenditure
Mining Tax losses and their indexation
Tax incentives for mining operations
Capital allowances and their indexation
Thin capitalization and tax treatment of hedging income
Income Tax computations for mining operations
Mineral Royalty Tax
Variable Profit Tax
Insurance and financial service operations (10%)
Nature of the financial services sector
Meaning of bank and insurance company for taxation purposes
Computing taxable income and Income Tax payable by banks
Computing Income Tax payable by insurance companies on both general insurance and life
insurance business
Computing taxable income and Income Tax payable on management of pension
Financial arrangements and planning (15%)
General tax policy and financial principles relevant to the Income Tax treatment of financial
instruments
Zambian tax law applicable to financial instruments including debt/equity rules, hire purchase,
leasing and sale and lease back
(COMESA) and Southern Africa Development Community (SADC)
33
Debt-financing techniques, particularly the treatment of interest surrogates and hybrid debt
instruments
Personal financial planning
Collective investment plans
Deposit based investments
Pension scheme planning and the role of the National Pension Scheme Authority
Minimising and deferring taxation liabilities (15%)
Tax planning, tax avoidance and tax evasion
Employment compared with Self employment from a tax point of view
Tax implications of alternative remuneration packages
Choice of business medium
Tax implications of incorporation of a business
Tax treatment of alternative ways of extracting profits from a company
Tax implications arising from the disposal of a business
Income Tax assessment of consolidated groups
Treatment of entry and exits from a group
Treatment of group losses
Property Transfer Tax for groups of companies
Value Added Tax in groups of companies
Corporate insolvency and reconstruction
Format of the exam

Marks
Section A:
60
Section B:
40
100
Time allowed:
Recommended reading
y
34
L4
Auditing
Learning outcomes
1
Explain the purpose and context of external audit and other assurance engagements
Explain the principles of good corporate governance, and apply professional and ethical codes
in specified circumstances
Explain the nature of internal audit and its relationship with external audit, and describe
forensic audit engagements
Demonstrate how an auditor plans an audit in accordance with International Standards on

Auditing
Evaluate the effectiveness of systems of internal control and assess control risks and their
potential consequences
Explain the audit evidence that the auditor requires to meet the objectives of the audit in
accordance with International Standards on Auditing
Identify and describe the audit evidence and work that would be required in relation to
specified areas of an audit conducted in accordance with International Standards on Auditing
Evaluate the findings of the audit and assess their potential impact on the auditors report
Purpose and context of audit (5%)
Concept of audit and assurance
Appointment and removal of the auditor, auditor rights and duties
Audit objectives and true and fair view
Corporate governance and codes of ethics (10%)
Purpose and principles of good corporate governance
Codes of professional ethics
Internal audit and other assurance engagements (5%)
Differences between external audit and internal audit
Internal audit: scope, limitations, assignments and reporting
Using the work of internal audit
Forensic audits
Audit planning and risk assessment (15%)
Audit risk
Materiality
Understanding the entity
Risk assessment
Audit planning and documentation
Content
35
Internal control (20%)
Internal control: control environment and activities
Testing of internal control by external auditors
Tests of controls over accounting systems
Audit evidence techniques (15%)
Audit evidence and financial statement assertions
Audit procedures
Accounting estimates
Audit sampling
Computer Assisted Audit Techniques
Audit evidence areas (20%)
Tangible non-current assets
Inventory
Receivables
Cash and bank
Liabilities and capital
Review and reporting (10%)
Subsequent events
Going concern
Written representations
Overall review of financial statements
The auditor's report on financial statements
Reports to management
Format of the exam

Marks
Section A:
60
Section B:
40
100
Time allowed:
Recommended reading
36
Handbook of International Quality Control, Auditing, Review, Other Assurance and Related
Services Pronouncements, International Audit and Assurance Board, 2010
Handbook of the Code of Ethics for Professional Accountants, International Audit and Assurance
Board, International Audit and Assurance Board, 2010
L5
Decision Making Techniques
Learning outcomes
1
Discuss business decisions and the decision-making process
Analyse data, making use of business modelling techniques including regression analysis,
linear programming and time series
Apply business planning techniques including Material Requirements Planning (MRP) systems,
inventory management and aggregate planning
Demonstrate the use of probability in decision making
Apply estimation techniques and hypothesis tests to aid the decision-making process
Introduction to decision making (10%)
Types of business decision
The decision making process
Decision making techniques
Business modeling (20%)
Regression analysis
Correlation
Time series analysis
Linear programming (LP)
Simulation
Replacement analysis
Decision trees
Business planning (20%)
Project planning and control
Material Requirements Planning (MRP) systems
Inventory management
Aggregate planning
Probability (20%)
Addition and multiplicative laws
Probability trees and conditional probabilities
Bayes rule
Discrete probability distributions
Continuous probability distributions
Content
37
Inferential statistics (30%)
Estimation techniques
Hypothesis testing
Chi-Square test
Analysis of variance (Anova)
Format of the exam

Marks
Time allowed:
Recommended reading
38
Lucey, T, Quantitative Methods, 6th edition, Thomson Learning, 2002
Morris, C, Quantitative Approaches in Business Studies, 7th edition, FT Prentice Hall, 2008
Owen, F and Jones, R, Statistics, 4th edition, FT Management, 1994
100
L6
Corporate Financial Management
Learning outcomes
1
Explain the role and purpose of financial management
Describe the role of financial institutions and markets within an economy
Explain the relevance of key ratios and planning and control to the performance of a company
Identify an appropriate working capital strategy for a company
Assess whether a proposed capital project should be undertaken
Evaluate appropriate sources of finance for a given situation
Calculate a weighted average cost of capital for an organisation
Compare and contrast different business valuation methods
Identify a suitable method for managing foreign exchange risk
Financial management and objectives (5%)
Nature and purpose of financial management
Role and functions of the finance manager
Organisational and financial objectives
The financial system in an economy (5%)
Role of a financial system
Components of a financial system
Financial institutions
Financial markets
The Zambian financial system
Financial analysis (10%)
Financial analysis techniques and ratios
Benefits and limitations of techniques
Importance of financial planning and control
Forecasting and techniques of financial planning and control
Working capital management (15%)
The elements of working capital and their role
Investment in current assets
Financing policies for current assets
Overtrading
Cash management
Receivables management
Content
39
40
Payables management
Inventory management
Capital investment and appraisal (15%)
Capital budgeting
Time value of money: Discounting, compounding, annuities, perpetuities
Investment appraisal methods: Net Present Value, Internal Rate of Return, Accounting Rate of
Return, payback
Comparison and evaluation of methods
Inflation and tax in investment appraisal
Treatment of risk and uncertainty in investment appraisal
Other investment appraisal issues
Sources of finance (15%)
Short-term sources of finance
Impact of long-term finance on growth and development
Debt finance
Equity finance
Other sources of finance
Dividend policy
Cost of capital (10%)
Risk, return and cost of capital
Cost of debt
Cost of equity
Capital Asset Pricing Model (CAPM)
Portfolio theory
Impact of capital structure
Modigliani-Miller theory
Business valuations (15%)
Purpose of business valuations
Income based valuation methods
Cash flow based valuation methods
Asset based valuation methods
Finance for international trade (10%)
Differences with international trade
Payment methods
Export and import finance
Foreign exchange risk
Cause of exchange rate fluctuations
Managing foreign exchange risk
Format of the exam

Marks
Section A:
60
Section B:
40
100
Time allowed:
Arnold, G, Corporate Financial Management, 4th edition, FT Prentice Hall, 2008
Atrill, P, Financial Management for decision-makers, 5th edition, FT Prentice Hall, 2008
Brealey, R A, Myers, S C and Marcus, A J, Fundamentals of Corporate Finance, 6th edition,

McGraw-Hill, 2008
McLaney, E J, Business Finance Theory and Practice, 8th edition, FT Prentice Hall, 2009
Watson, D and Head, A, Corporate Finance: Principles and Practice, 5th edition, FT Prentice
Hall, 2009
Recommended reading
41
L7
Business and Corporate Law
Learning outcomes
1
Identify the main sources of Zambian law and other essential elements of the Zambian legal
system
Explain and apply the legal rules relating to the law of obligations
Explain and demonstrate how the Sales of Goods Act 1893 impacts upon contracts
Explain and apply the law relating to employment relationships
Explain and apply the law relating to agent-principal relationships
Explain and apply the law of torts
Distinguish between different types of company
Explain and apply the law relating to partnership arrangements
Apply the concept of separate legal personality to companies
10
Compare share and loan capital and explain the rules relating to the financing of companies
11
Explain the rules relating to the management, administration and governance of companies
12
Explain the legal rules relating to corporate insolvency
Content
42
Essential elements of the Zambian legal system (5%)
The constitution as a primary source of law
Legislation and the interpretation of statutory law
Case law and the court structure
The reception of common law, equity and English statutes in Zambia
Distinction between criminal and civil liability
Law of obligations (25%)
Essential elements of a valid contract
Terms and conditions of a contract
Misrepresentation as a vitiating factor
Discharge or termination of contract
Various remedies under the law of contract
Contracts under the Sales of Goods Act 1893 (5%)
Definitions, conditions and warranties
Transfer of property, risk and title to the goods
Employment law (5%)
Distinction between contract of service and contract for services
Types of employment contracts under the Employment Act, Chapter 268 of the Laws of
Zambia
Vicarious liability
Dismissal and redundancy
Agency law (5%)
Establishment of the agent/principal relationship
Authority of an agent
Rights and duties of both the agent and the principal
Termination of agent/principal relationship
The law of torts (5%)
Definition
Negligence
Professional negligence
Defences and remedies
Formation of business organisations (5%)
Types of companies
Partnerships (5%)
Formation and types of partners
The partnership agreement
Rights and duties in a partnership
Dissolution
Limited liability partnerships
Companies and legal personalities (5%)
10
Capital and financing of companies (10%)
Share capital
Loan capital
Capital maintenance
11
Management, administration and governance of companies (15%)
Company directors
Meetings and resolutions
Officers of the company
Corporate governance and ethical issues
12
Corporate insolvency (10%)
Liquidation and winding up of a company
43
Format of the exam

Marks
Section A
Any 2 out of 3 questions on Business Law, 25 marks each
50
Section B
Any 2 out of 3 questions on Corporate Law, 25 marks each
50
100
Time allowed:
Recommended reading
y
44
L8
Risk and Management Control Systems
Learning outcomes
1
Discuss the types of risk that organisations face and evaluate risk management strategies and
policies
Discuss the corporate governance issues that organisations face and evaluate corporate
governance systems and policies
Evaluate control systems for the management of operations and resources
Evaluate the role of information systems in an organisations control systems and discuss the
risks associated with information systems
Risks and risk management (25%)
Types of risk
Risk management systems
Risk analysis
Risk management procedures
Risk management responsibilities
Corporate governance (20%)
Principles of corporate governance
Corporate governance legislation and codes
Board of directors
Directors remuneration
Relations with shareholders and stakeholders
Reporting on corporate governance
Control systems (35%)
Components of control systems
Structure of organisations
Organisational culture
Human resources
Control environment
Control procedures
Management accounting control systems
Control of business ethics
Role of internal audit and audit committee
Board and management review
Content
45
Role and development of Information systems (20%)
Uses of information for control purposes
Information systems, Information technology and Information management strategies
Information technology systems
The Information technology function
Risks to Information systems
Ethical issues
Systems development
Format of the exam

Marks
Time allowed:
Recommended reading
46
Bank of Zambia Banking and Financial Services (Corporate Governance) Guidelines, 2006
King Code Governance for South Africa 2009
UK Corporate Governance Code 2010
Mallin, C, Corporate governance, 3rd edition, Oxford University Press, 2009
Merna, A and AlThani, F F, Corporate risk management, 2nd edition, Wiley, 2008
100
4.3
Professional Level
Course Structure
P1
Advanced Financial Reporting
P2
Advanced Management Accounting
P3
Strategic Financial Management
P4
Audit and Assurance
P5
Strategic Management
Upon successful completion of the Professional Level, a student will require three years
experience to be able to apply for Associate membership of ZICA.
P1
Advanced Financial Reporting
Learning outcomes
On successful completion of P1, students should be able to:
1
Prepare group financial statements in accordance with International Financial Reporting

Standards and International Accounting Standards
Apply full International Financial Reporting Standards and International Accounting Standards
to group and single entity financial statements
Analyse financial performance and position and produce relevant reports
Evaluate issues in recognition and measurement, capital maintenance and substance over
form
Identify and discuss current developments in financial and non-financial reporting
Group financial statements (35%)
Group accounting principles and fair value
Associates and joint ventures
Complex groups
Changes in group structure
Foreign transactions and entities
Consolidated statement of cash flows
Full International Financial Reporting and Accounting Standards (30%)
Non-current assets
Financial instruments
Income taxes
Provisions and events after the reporting period
Reporting financial performance
Accounting for leases
Content
47
Employee benefits
Extractive industries
Share-based payment
Analysis of position and performance (15%)
Earnings per share
Ratio and segment analysis
Measurement of capital and income (10%)
Substance over form
Accounting for the effects of changing prices
Current developments (10%)
Current issues
International developments
Environmental and social issues
Format of the exam

Marks
Section A:
1 compulsory question, 40 marks
40
Section B:
60
100
Time allowed:
Recommended reading
48
ZICA P1 Study Manual
2011 International Financial Reporting Standards, IFRS Foundation Education Initiative
Abbas, A M, Holt, G J and Knorr, L, Wiley Practical Implementation Guide and Workbook for
IFRS, 3rd edition, Wiley, 2011
Ernst and Young, International GAAP 2010, LexisNexis, 2010
Pendlebury, M, Fanning, D and Groves, R, Company Accounts: Analysis, Interpretation and

Understanding, 6th edition, Thomson Learning, 2003
P2
Advanced Management Accounting
Learning outcomes
1
Demonstrate an awareness of the modern environment of the organisation and the emergence
of the modern management accountant
Identify and apply modern information technology used in management accounting information
and advanced manufacturing technology
Analyse and apply a range of decision making techniques reflecting factors such as risk,
uncertainty and the rate of learning
Recommend different pricing strategies, including transfer prices, taking account of the
organisations objectives
Evaluate budget models, taking account of modern developments such as beyond budgeting
and behavioural issues, and analyse and apply advanced budget variances
Analyse and apply modern cost analysis techniques designed to control and reduce costs and
enhance value
Evaluate and apply a range of financial and non-financial performance measures
Evaluate capital investment decisions, applying appropriate techniques
Apply the principles and techniques of management accounting in the public sector and notfor-profit organisations
10
Analyse and apply alternative modern accounting techniques and philosophies and discuss
when each is appropriate
Modern environment (10%)
Business environment
Modern management accountant
Organisation background and theories
Performance hierarchy: mission, vision, goals and objectives
Ethics
Information technology and management accounting (5%)
Management Information Systems
Transaction Processing Systems
Computer aided design (CAD) and Computer aided manufacturing (CAM)
Flexible manufacturing
Decision making techniques (10%)
Sensitivity analysis
Learning curves
Linear programming
Risk and uncertainty
Content
49
50
Relevant costs
Breakeven analysis and Cost Volume Profit analysis
Pricing and transfer pricing strategies (5%)
Pricing methods
Transfer pricing methods
Advanced budgeting and budgetary control (10%)
Recap of traditional techniques
Beyond budgeting
Budgets and behaviour
Advanced variance analysis
Modern cost analysis techniques (10%)
Cost reduction
Cost control
Value analysis and value engineering
Business Process Reengineering
Financial and non-financial performance measures (15%)
Financial measures
Non-financial measures
Value For Money
Broader measures of performance
Divisional measures
Capital investment decisions (15%)
Net present value inc taxation and inflation
Internal rate of return and modified internal rate of return
C`
Payback and discounted payback
Accounting rate of return
Leasing and hire purchase transactions
Cost-benefit analysis
Post project completion audit
Public sector and not-for-profit performance measurement (5%)
Public sector environment
Not-for-profit and voluntary organisations
Applying financial and non-financial measures
10
Modern management accounting techniques and philosophies (15%)
Activity based costing
Target costing
Service costing
Lifecycle costing
Backflush accounting
Throughput accounting
Manufacturing Resource Planning (MRP/MRPII)
Enterprise Resource Planning (ERP)
World Class Manufacturing and Costs of quality
Just In Time and Lean Manufacturing
Format of the exam

Marks
Section A:
40
Section B:
60
100
Time allowed:
Atkinson, A A, Kaplan, R S, Matsumura, M, and Young, S M, Management Accounting:

Information for Decision-Making and Strategy Execution, 6th edition, FT Prentice Hall, 2011
Atrill, P and McLaney, E, Management Accounting for Decision Makers, 6th edition, FT Prentice
Hall, 2009
Hope, J and Fraser R, Beyond Budgeting; How Managers can break free from the annual
performance trap, 1st edition, Harvard Business School Press, 2003
Recommended reading
51
P3
Strategic Financial Management
Learning outcomes
1
Evaluate the issues involved in the formulation of an organisations financial strategies
Evaluate the various types of investment opportunities that may be available to an

organisation, using appropriate techniques and considering the major issues that may arise
Evaluate the various financing options available to an organisation and recommend the most
appropriate strategy based on the organisations objectives
Assess the role of the treasury management function within an organisation
Evaluate the extent to which an organisation is exposed to foreign exchange and interest rate
risks and recommend appropriate strategies to manage these risks
Analyse the impact of, and how to manage, global issues, including the management of
international trade and the development of strategic financial plans
Content
52
Formulation of financial strategy (10%)
Financial strategy objectives and the constraints on various elements of financial strategy
Evaluation of different financial strategies with the various financial objectives of an

organisation
Conflicting stakeholder interests and their effect on financial strategy formulation
Investment decisions (35%)
Evaluation of value added to shareholders by a project using discounted cash flow techniques
Business valuations
Mergers and acquisitions
Divestments and management buyouts
Evaluation of procedures for investment projects
Financing decisions (10%)
Short and long term financing requirements
Alternative methods of financing, including impact of tax, and implications of different methods
on financial statements
Treasury management (10%)
Role of treasury function
Role of money markets
Operations of derivatives markets
Foreign exchange and interest risk management (25%)
Evaluation of the extent of foreign exchange and interest rate risks for a particular company
Appropriate hedging strategy for foreign exchange risk
Appropriate hedging strategy for interest rate risk
Global issues and the multinational company (10%)
Emerging issues in the global financial markets
Developments in international trade and finance
Management of international trade and finance
Development of strategic financial plan for multinationals
Format of the exam

Marks
Section A:
40
Section B:
60
100
Time allowed:
Arnold, G, Corporate Financial Management, 4th edition, FT Prentice Hall, 2008
Atrill, P, Financial Management for decision-makers, 5th edition, FT Prentice Hall, 2008
Brealey, R A, Myers, S C and Marcus, A J, Fundamentals of Corporate Finance, 6th edition,

McGraw-Hill, 2008
McLaney, E J, Business Finance Theory and Practice, 8th edition, FT Prentice Hall, 2009
Watson, D and Head, A, Corporate Finance: Principles and Practice, 5th edition, FT Prentice
Hall, 2009
Recommended reading
53
P4
Audit and Assurance
Learning outcomes
1
Discuss the purpose and content of external audit and other assurance engagements
Discuss the requirements imposed on assurance providers by legislation and regulation
Evaluate a firms policies in relation to obtaining, accepting and managing assurance

engagements
Evaluate business risks and audit risks in specific circumstances and produce appropriate
audit strategies and plans
Recommend and evaluate audit evidence in response to specified audit risks in relation to
specific elements of the financial statements
Evaluate audit findings and perform analysis of draft financial statements to produce final audit
conclusions
Produce appropriate auditors reports in specified circumstances and evaluate draft reports
Demonstrate and apply knowledge of the issues arising in the context of group audits and
transnational audits
Evaluate risks, recommend evidence and produce reports in line with IAASB guidance on other
types of engagement
10
Discuss current developments in audit and assurance
Content
54
Overview of the role of audit and assurance (5%)
Objective and purpose of an audit
Preconditions for audit
Public sector audit
Definition and role of assurance
Legal and regulatory frameworks (5%)
Corporate governance
Laws and regulations
Fraud
Money laundering
Auditor liability
Obtaining, accepting and managing audit and assurance engagements (10%)
Ethics
Quality control
Risk assessment and planning (20%)
Business risk
Risk of material misstatement
Materiality
Analytical procedures
Documentation
Audit evidence (15%)
Responses to risks
Evidence
Review and conclusions (10%)
Related parties
Subsequent events
Other information in documents containing audited financial statements
Comparative information
Going concern
Written representations
Reporting (10%)
Auditors reports
Modified opinions
Emphasis of matter and other matters paragraphs
Group audits and transnational audits (10%)
Group audits
Transnational audits
Other assignments (10%)
Specialised audits
Reviews
Prospective financial information
Agreed-upon procedures
Compilations
10
Current developments in audit and assurance (5%)
Social and environmental audits
Implementation of Clarity International Standards on Auditing (ISAs)
International Auditing and Assurance Standards Board (IAASB) work schedule
55
Format of the exam

Marks
Section A:
40
Section B:
60
100
Time allowed:
Recommended reading
56
Handbook of International Quality Control, Auditing, Review, Other Assurance and Related
Services Pronouncements, International Audit and Assurance Board, 2010
Handbook of the Code of Ethics for Professional Accountants, International Audit and Assurance
Board, International Audit and Assurance Board, 2010
P5
Strategic Management
Learning outcomes
1
Evaluate the ways organisations develop corporate strategy
Evaluate the ways the external environment affects an organisations strategy development
Evaluate the ways an organisations resources and capabilities affect its strategy development
Discuss the ways ethics and social responsibility affect an organisations strategy
Analyse the tools and techniques used in strategy formulation
Analyse the ways organisations identify and evaluate strategic options
Evaluate the impact of information systems on organisations and their strategies
Assess the role of marketing in delivering corporate strategy
Evaluate the tools and processes of implementation and managing strategic performance
Developing corporate strategy (10%)
Different approaches to strategy formulation
Elements of strategic management
Mission statements and objectives
Non-market strategy and corporate political activity
The relationship between organisational structure and strategy
Role and responsibilities of directors in developing strategy
Understanding the external environment (10%)
The impact of the external environment on an organisation and its strategy
Opportunities and threats
The impact of the industry on the organisation
National competitive advantage
Globalisation and strategy
Resources and capabilities (10%)
Strengths, weaknesses and strategy development
Product portfolios
Core competences
Value chain
Innovation and developing new products
The importance of learning and knowledge management
Collaboration and networking
Benchmarking
Content
57
58
Ethics and social responsibility (10%)
The influence of stakeholders
Managing stakeholders
The impact of corporate social responsibility on corporate strategy
The impact of sustainability on corporate strategy
Ethics and corporate strategy
Culture and the organisation
Tools and techniques used in strategy formulation (10%)
Qualitative and quantitative tools used to support strategic decision making
Gap analysis
Forecasting and forecasting techniques
Scenario planning
Using environmental information and competitor analysis in strategy formulation
Role of corporate parents in building business portfolios
Evaluating strategic options (15%)
Identifying possible strategic options
Methods of strategic growth
Market entry strategies
Divestment and rationalization
Assessing the suitability, acceptability and feasibility of strategic options
Information systems and strategy (10%)
Impact of Information systems on organisations
Relationship between Information systems / Information technology strategy and corporate

strategy
Role of Information systems/ Information technology in creating competitive advantage
Impact of Information technology on organisations
The impact of contemporary developments in Information technology on organisational strategy
The impact of e-commerce on organisations and business
Marketing and corporate strategy (10%)
Understanding customers and markets
Different approaches to marketing
Relationship between marketing strategy and corporate strategy
Using information and technology in marketing
E-marketing
Using electronic media to increase customer value
Strategic implementation and performance management (15%)
Project management and implementing strategic plans
Processes and strategy
Change management in strategy implementation
Human resources management (HRM) and delivering strategy
Strategic control in multi-divisional and multi-national organisations
Financial and non-financial models of performance measurement
Critical Success Factors (CSFs) and Key Performance Indicators (KPIs) in performance
management
Format of the exam

Marks
Section A:
40
Section B:
60
100
Time allowed:
Johnson, G, Scholes, K and Whittington, R, Exploring Corporate Strategy, 8th edition, FT Prentice
Hall, 2009
Recommended reading
59

5.1
Progression
A candidate who has one arrear shall be allowed to attempt a maximum of two subjects at
higher level.
A candidate who has two arrears shall be allowed to attempt one subject only at higher level.
However, should the candidate pass the subject (s) at higher level as provided for above, but
still fails to clear the arrear(s), he/she shall not be allowed to attempt any other subject(s) at
the higher level until he/she clears the arrear(s).
A candidate with an arrear in T1 Financial Accounting shall not be allowed to attempt L1
Financial Reporting.
A candidate with an arrear in T2 Cost Accounting shall not be allowed to attempt L2
Management Accounting.
A candidate with an arrear in T3 Mathematics and Statistics shall not be allowed to attempt
(L5) Decision Making Techniques.
A candidate with an arrear in T5 Taxation shall not be allowed to attempt L3 Integrated
Taxation.
A candidate with an arrear in L1 Financial Reporting shall not be allowed to attempt P1
Advanced Financial Reporting.
A candidate with an arrear in L2 Management Accounting shall not be allowed to attempt P2
Advanced Management Accounting.
A candidate with an arrear in L4 Auditing shall not be allowed to attempt P4 Audit and
Assurance.
A candidate with an arrear in L6 Corporate Financial Management shall not be allowed to
attempt P3 Strategic Financial Management.
5.2
Exemptions
The Zambia Institute of Chartered Accountants subscribes to the principle of recognition of
prior learning.
Students seeking exemptions must apply by completing the relevant sections in the student
registration form.
All applications must be accompanied by certified copies of certificates and results transcript
(academic record) issued by the relevant examining body. In addition, detailed syllabi for the
subjects which form the basis for the application must also be submitted. Official translations
should be provided where any of the documents referred to above is not in English.
The exemptions committee shall consider and grant exemptions to ZICA programme subjects
on merit using the following criteria:
y
60
There is at least 75% content overlap between the subject for which the recognition is
being applied and the one(s) which is/ (are) the basis for application.
The examining body that issued the qualification is recognised by the authorities in the
country of origin.
The pass mark is at least 50% and has not been compromised.
Tests and assignments do not exceed 40% of the final grade awarded.
The decisions of the exemption committee shall be final and no appeal shall be allowed.
No exemptions shall be considered in the following circumstances:
y
Where an application is for a subject at the Professional Level of the ZICA programme.
Where an application is based on non-certified learning.
Exemption fees are payable, equivalent to the ruling examinations fees for the subjects that
have been applied for. Fees are payable on application.
It is recommended that, where candidates study plan is dependent on the exemptions to be
awarded, applications should be submitted before 31 January and 31 July for the June and
December examinations respectively, to allow adequate time for processing. In those cases,
candidates are advised to wait for a response before entering for any examinations.
Non-accounting qualifications will not attract exemptions in T1 Financial Accounting and T3
Mathematics and Statistics, even if similar subjects are part of the syllabi for such
qualifications.
5.3
Deferments
Students who wish to defer any examination shall make an application in writing. Applications
for deferment of examinations shall only be allowed on three conditions:
y
Illness applications for deferment are only authorized where illness is supported by a
certificate issued by a registered medical practitioner.
Loss of an immediate family member applications are only authorized if the person
who has died is the spouse, child, biological parent or direct guardian of the candidate.
The application must be supported by the death certificate and burial permit for the
family member who has died.
Legal grounds applications for deferment are allowed for persons who are required to
attend court sessions or to give evidence in courts of law at the same time as they are
expected to sit an examination.
Notwithstanding the statements above, applications for deferment shall only be considered if
they are received by the Institute up to one month (30 days) before the examination dates.
Remarking
Under no circumstances shall remarking of the examination answer script(s) be permitted.
Script verification will however be done at the discretion of the Institute upon receipt of a
complaint
Candidates applying for script verification will be required to pay a non-refundable fee as will
be determined by the Institute.
All complaints regarding the examinations shall be launched with the Manager Education
and Examinations within three (3) months after the results have been published.
5.4
61
5.5
Certification
Upon successful completion and passing of each of the levels, ZICA shall, at each level, award
certificates to successful students. The Institute shall have the liberty to withdraw the award of
a certificate if it has been proved that it was done so erroneously. There shall be no appeal
against the withdrawal.
5.6
Examination Malpractices and Penalties

The types of malpractices and penalties are listed below
Malpractice
Recommended Actions/Penalties
Attempting to go or
going into the
examination room with
unauthorized notes or
materials
Invigilator to write a report and ensure that the candidate writes an

exculpatory letter and leaves the examination immediately.
Impersonation where
somebody else writes for
the candidate
Nullify all results for that sitting,
Copying from each other
Invigilator to write a report. If two or more candidates connive to share their

solutions, nullify results in that particular subject.
If one candidate copies from the other without consent, nullify the results for
the one copying in that particular subject.
Where two or more candidates have copied from each other for more than
one subject, nullify all their results for that particular sitting.
62
Submission of two or
more answer scripts
Examiner to write a report. Nullify results for that particular subject.
Widespread cheating at
an examination centre in
one paper
This may include poor invigilation; poor seating arrangements; candidates

being assisted; candidates having prior knowledge of examination questions.
In all cases:
The first time nullify results for affected subjects and warn the centre
The second time nullify results for affected subjects and suspend the
centre
The third time nullify results for affected subjects and close the centre
Misconduct
This may include, but is not limited to, going to the examination room drunk;
engaging in harassment of ZICA staff, invigilators, support staff or other
candidates either verbally or physically. The candidate shall be expelled from
the programme with no room for appeal.
Exhibiting false
examination documents
This includes exhibiting false school certificates, results transcripts and/or

certificates. The student shall be expelled from the ZICA programme with
immediate effect.
6.0 Study Guidance

How to study
Have a positive attitude
You have a lot to learn. However others have passed and so can you. You should focus on all
the benefits that passing the exam will bring you. Studying may seem difficult at times, but
you are doing it for a reason to advance your career.
Focus on the exams

You need to keep the exam firmly in your sights throughout your studies. You should read the
guidance in the front pages of the Study Manual about the exam. You should also look out
for all the references to the exam in Chapter introductions, Exam alerts and other places in
the Study Manual.
Organise your time

Before you start studying you must organise yourself properly. You need to timetable your
studies, to ensure that you have enough time to cover the entire syllabus and revise it.
Choose the notes format that is most helpful to you. Do not copy out too much, but
summarise key areas that show you understand the entire syllabus content of your subject.
Learn actively
There are various ways in which you can keep your mind active when studying and hence
improve your understanding and recall of material. You should keep asking yourself how
what youre studying fits into the whole picture of the exam. If you are not sure, go through
the Introduction of the Chapter and front pages of the Study Manual. You will also increase
your understanding of the syllabus by going carefully through every example and trying every
question in the Study Manual.
Review what you have learnt

Regularly reviewing the topics youre studying will help cement your understanding. The
Study Manual will help you do this. The Chapter roundups summarise the key points in each
chapter. The Quick quizzes test your grasp of the essential knowledge in each chapter.
6.0 Study Guidance
6.1
63
6.2
How to revise
Plan your revision
At the start of your revision period, you should draw up a timetable to plan how long you will
spend on each subject and how you will revise each area. You need to consider the total
time you have available and also the time that will be required to revise for other exams you
are taking. It is important not to spend too much time on small areas, and leave yourself
insufficient time to cover the rest of the syllabus.
Questions for Practise

You will significantly improve your chances of passing the exam by practising exam-standard
questions. Answering full questions against the clock will mean that youll get used to the
time pressure of the exam and will help you improve your written communication skills.
When the time is up, you may well find it useful to note where you have reached and then to
try to complete the question, giving yourself practice at all the techniques that the question
tests. You should attempt the questions before you read the answers. Reading the answers
without doing the questions will give you false assurance that you would have tackled the
question in the best way and made the points that the answer does. You should also practise
written and numerical questions, dont only attempt calculation questions.
Revise the whole syllabus

Make sure that your revision covers the entire syllabus. Examiners are well aware that some
students only revise those syllabus areas that they think will be examined. Examiners try to
prevent this by doing the unexpected, for example setting questions on the same topic in
successive sittings. The most important topics in a syllabus often appear in questions. You
need to identify these topics and spend sufficient time revising them. Take time to ensure
you know the fundamental calculations, proformas and preferred report layouts for each
examination, to increase your chances of scoring higher marks.
Deal with difficult areas

Difficult areas are topics you find dull and pointless, or subjects that you found problematic
when you were studying them. You must not become negative about these topics. Instead
you should build up your knowledge by reading the Chapter summaries and using the Quick
quiz questions in the Study Manual to test yourself. When practising questions, go back to
the Study Manual if you are struggling.
Learn from your mistakes

When you complete a question you should try to look at your answer critically. It is worth
noting mistakes you have made, and referring to these notes in the days before the exam. You
should aim to learn at least one new point from each question you attempt, a technical point
perhaps or a point on style or approach.
64
How to pass your exams

Prepare for the day
You should allow plenty of time to get to the examination room and plan to arrive well in
advance of the starting time, so that you may be seated and accustomed to your
surroundings by the time the examination begins. You should have your route planned in
advance and should try to find out about potential travel problems. You should check the
night before to see that you have:
y
Pens
Pencils
Erasers
Watch
Calculator with spare batteries
Exam documentation and evidence of identity
You should not however bring paper or printed material into the examination room.
Select the right questions

You should select the optional questions you feel you can answer best, basing your selection on:
y
The topics the question covers
The requirements of the question
How easy it will be to apply the requirements
The availability of easy marks
Plan your time

You need to make sure that you answer the correct number of questions. You should also
ensure that you spend the right length of time on each question. This will be determined by
the number of marks available. Each mark carries with it a time allocation of 1.8 minutes. A
25 mark question therefore should be selected, completed and checked in 45 minutes. If
you have not finished a question when the budgeted time is up, you should leave it and
maybe return to it once you have completed the rest of the paper. The number of marks will
also help to indicate the expected length and require depth of the answer.
Read the requirements carefully

Its often best to read the requirements first. To score well, you must follow the requirements
of the question, understanding what aspects of the subject area are being covered, and the
tasks you will have to carry out. Failing to provide everything the examiner asks for will limit
the marks you can score. The requirements will also help you identify the most important
information in the scenario more rapidly. They may specify that your answer has to be in a
particular format, for example a letter. You will limit the marks you can score if you do not
use that format.
Read the question scenarios carefully

Reading the question scenarios carefully will help you decide what issues to discuss, what
techniques to use and how your answer should be structured.
6.0 Study Guidance
6.3
65
Plan your answers

Five minutes of planning plus twenty-five minutes of writing is certain to earn you more
marks than thirty minutes of writing. When you are planning, you should ensure your answer
is structured in accordance with the requirements of the question. You should also consider
whether you should group connected points under a single header and how long each part of
the answer should take to write. You should confirm before you start writing that your plan:
y
Makes sense
Covers all relevant points
Does not include irrelevant material or repetitions
Your answer will need to be a full response to the requirements of the question. The markers
cannot award marks for what they think you know but have not written down.
Demonstrate judgment
Examiners are not just looking for a display of knowledge; they want to see how well you can
apply the knowledge you have. Evidence of application and judgement includes writing
answers that:
y
Only contain relevant material
Support the statements you make with adequate reasons and arguments
Use the material in scenarios to support your answer
Discuss the limitations and assumptions of the techniques you use
Make reasonable recommendations that follow from your discussion.
Avoid poor exam technique

There are various signs of a lack of judgement and poor exam technique. The most serious
one is setting out all you know about a subject and paying no attention to the question
requirements. Answers that give a vague broad outline or which contain contradictions also
wont score well. There is also no need to write out the question requirements this wastes
valuable time. You will also decrease your chances by writing an answer with insufficient
depth, for example providing a single line bullet point list when the examiner asks you for a
discussion.
Present your work clearly

Markers will only be able to give you credit if they can read your writing, so you must write
legibly. You can help the marker by writing on alternate lines and leaving adequate space
between words, sentences and paragraphs. There are also plenty of other things that will
make it more difficult for markers to reward you. Examples include:
66
Not showing clearly which question youre attempting
Scattering question parts from the same question throughout your answer booklet
Not showing clearly workings or the results of your calculations
Writing paragraphs that are too long or which lack headers
Writing sentences that are too long - you should normally restrict yourself to one idea
per sentence.
Stay until the end of the exam
Filled out the candidate details correctly
Labelled question parts and workings clearly
Used headers and underlining effectively
Ensured that spelling, grammar and arithmetic are correct
6.0 Study Guidance
You should use any spare time to check and recheck your script. This includes checking you
have:
67
68
Notes
Notes

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ZICA

First edition June 2011

BPP Learning Media Ltd and the

1.0 Registration and Entry Requirements

2.0 Methods of Study

4.0 Course Structure and Syllabi

5.0 Rules and Regulations

6.0 Study Guidance

Registration and Entry Requirements

Minimum Entry Requirements

Full school certificate, or its

Mature Age Entry Route (MAER)

Aged at least 18 years or

Holders of any other

Holders of any other

Holders of Licentiate level

1.0 Registration and Entry Requirements

Start each answer on a new page.

Write answers in ink.

Read the instructions given carefully.

Arrange your answers in numerical sequence before handing in your

Course Structure and Syllabi

4.0 Course Structure and Syllabi

Each syllabus gives the following information:

Mathematics and Statistics

Information Technology and Communication

Technician membership of ZICA is acquired by application immediately upon successful

Describe the context and purpose of financial accounting

Apply double-entry bookkeeping techniques to record financial transactions and to maintain

Identify and correct omissions and errors in accounting records

Calculate and interpret simple financial ratios

Describe the features of public sector accounting

Context and purpose (10%)

Purpose of financial reporting

Needs of users of financial statements

Financial transactions and accounting records (30%)

Business transactions and documentation

Books of prime entry

Principles of double-entry bookkeeping

Recording financial transactions and events

Journal entries and balancing ledger accounts

The trial balance

Omissions and errors (20%)

Financial statements (20%)

Statement of comprehensive income

Statement of financial position

Statement of cash flows

Departmental accounts and manufacturing accounts

Interpretation of accounts (10%)

Interpretation and limitations

Public sector accounting (10%)

Statutory and regulatory framework

Cash accounting and accruals accounting

Format of the exam

10 compulsory multiple choice questions, 2 marks each

Any 4 out of 5 questions, 20 marks each

3 hours, plus 15 minutes reading time

ZICA T1 Study Manual

4.0 Course Structure and Syllabi