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202 Management Accounting

Course Objectives : To provide the students with an in-depth knowledge of Management Accounting to enable them to apply its methods and techniques for preparing and presenting information for management decision-making and control purposes. Formulation of strategic plan for achieving efficiency and effectiveness in business operation is also the focus of this course. On completion of this course, the students will be able to: a. discus the role of management accounting and quantitative analysis within the organization. b. apply management accounting techniques in Planning, control and decision making situations. c. illustrate and evaluate absorption and marginal costing methods for decision making and use them in various decision-making situations. d. identify, discuss and implement a range of product pricing methods applicable in particular operating situations. e. prepare and evaluate plans, budgets and forecasts.

202. 01 Introduction Definition of Management Accounting; Relationship between Management


Accounting and Financial Accounting; Relationship between Management Accounting and Cost Accounting; Role of Management Accounting, Characteristics of Management Accounting Information; Changing Business Environment: Just-in- Time (JIT), Total Quantity Management (TQM), Process Reengineering, Automation, Theory of Constraints (TOC), Benchmarking and Continuous Improvement, Creating Value in Organization; Accounting and Ethical Conduct: Ethical Behavior, Standards of Ethical Conduct for Management Accountants and Ethical Conduct.

202.02 Cost-Volume Profit Analysis Uses of Cost-Volume-Profit (CVP) Analysis; Break-even Point
and Shut-down Point; Graphical Approach of CVP Analysis in a Milti-product Environment; ABDs Effects on CVP. Assumptions and Limitations of CVP Analysis; Application of linear programming in multiproduct decision making.

202. 03 Absorption and Variable Costing An Overview of Absorption and Variable Costing: Variable
Costing and Absorption Costing Income Statements; Reconciliation of Absorption Costing Income with Variable Costing Income; Advantages and Disadvantages of Absorption Costing and Variable Costing; variable Costing and the theory of Constraints; Impact of JIt Inventory Methods.

202. 04 Pricing Basic Economic Pricing Concepts: Customer Demand, Price Elasaticity of Demand,
Market Structure and Price. Establishing Optional Price and Output; Cost-Plus Pricing Methods: Variable Cost Pricing, Differential Cost Pricing, Full Cost Pricing, Conversion Cost Pricing and Direct Cost Pricing; ABC and Pricing.

202. 05 Relevant Costing The Concept of Relevance; Relevant Cost and Sunk Cost; Using Relevant Cost
Information in Decision Making. Special Order Decision, Make, Lease or Buy Decision; Product Line Decision; Scarces Resources Decisions. Sales Mix Decisions, Further Processing Decisions.

202.06 Budgeting For Planning and Control


i. Basic Framework of Budgeting; Purposes of Budgeting; Advantages of Budgeting; Planning and

Control; The udgeting Process: Budget Committee, Budget Period, Budget Guidelines, Review and Approval. Revision; Authoritative or Participative Budgeting. ii. Master Budget: Master Budget Interrelationships; Sales Forecasts; Production-Related Budgets; Marketing and Administrative Budgets, Cash Budgets; Budgeted Income Statement, Budget Statement of Financial Position. iii. Flexible Budget: Static Budgets and Flexible Budgets; Limitations of Performance Evaluation with Static Budgets; Preparation of Flexible Budget. iv. Additional Consideration in Budgeting: Budgeting in Service Industries; Budgeting in Not-for-Profit Organizations; Zero-Base Budgeting; Activity Based Budgeting; Kaizen Budgeting.

v.

Ethical, Behavioral and Implementation Issues in Budgeting:

202.07 Profitability Analysis


Analysis of Profit-Related Variances: Contribution Margin Variance, market Share and Market Size Variances; Profitability of Segments: Profit by Product Line, Divisional Profit; Customer Profitability, Overall profit; Time and Profit: Short-Run Profitability and Long-Run Profitability. 202.08 Critical thinking skills in a business i. ii. iii. iv. v. vi. Reviews a case study and breaks it down into component parts. Analyzes elements of the problem from a variety of perspectives. Determines the impacts on other aspects of the business. Considers a variety of solutions and evaluates the impact of each scenario on key stakeholders. Reviews relevant cases and literature. Recommends solutions based on an integrative view of the best outcome.

Text Books 1. Managerial Accounting- R.H. Garrison (10th edition) 2. Cost Accounting- R.S. Polimeni & Others (3rd edition) Reference Books 1. Cost Management: Hansen and Mowen (4th edition) 2. Cost Management - Blocher, Chen & Lin (1st edition) 3. Cost Accounting, - L. Gayle Rayburn (6th edition)

204. TAXATION 100


Course Objectives This course is designed to achieve following objectives. These are to a. provide a basic knowledge in principles of taxation and tax laws b. understand various aspects of fiscal statutes and its practical applications c. assess tax, VAT etc. d. know how to try prepare plan for tax 204.01 Income Tax 1.01. Theory on Taxation Meaning of Tax, Features and Purposes of Tax, Principles of Taxation, Classification of Taxes, Characteristics of a Good Tax System, Tax Structure in Bangladesh. 1.02. Income Tax Introduction to Income Tax: Income Tax Meaning, Nature, Importance in respect of Contribution to Internal Resource Mobilization Historical Perspective of the Income Tax Ordinance, 1984 Statutory Definitions of Important Terms. 1.03. Income tax authority Administrative and Judicial appointment, organization structure, power and functions Taxes Appellate Tribunal Registered Income Tax practitioner. 1.04. Charge of Income Tax Basic Principles, Systems (Conventional Exemption Limit versus Filing Threshold) Sources of Income Tax Laws. 1.05. Computation of Total Income Scope of Total Income on the basis of Assessees Residential Status Income deemed to accrue or arise in Bangladesh Deemed Income (unexplained investment etc.) Non Assessable Income Income under Specific Heads. Salaries: Definition, coverage, benefits and perquisites, provident fund. Interest on Securities: Coverage, grossing up, deductions, exclusion limit. Income from House Property: annual value, coverage, deductions, Tax holiday and exemption limit for newly constructed residential houses. Agricultural Income: Agriculture assets, deductions, set-off and carry forward of agricultural losses. Income from Business or Profession: definitions, Capital and revenue expenditures, coverage, partially business income, admissible and inadmissible expenses, depreciation on business property (normal, extra, initial, accelerated and special), set-off and carry forward of business losses and losses in speculation business. 1.06. Share of Income from firms. 1.07. Income of Spouse or Minor child. Capital Gains: definitions, computation, exempted capital gains, set-off and carry forward of losses under Capital Gains. 1.08. Income from other Sources Coverage (dividend, interest on securities, royalty, fees for technical services, etc.), deductions, Clubbing of Income. 1.09. Foreign Income 1.10. Procedure of Assessment Filing of return of income and supporting Statements. Assessment of Tax - Provisional Assessment and Final Assessment (Correct return basis, after-hearing basis, and ex-parte) Other issues in assessment,

self-assessment, presumptive assessment, assessment for outgoing persons and deceased persons, assessment of escaped income, limitations of assessment, reopening of assessment. 1.11 Rates of Taxes. Tax Rate on Capital gains and income from winnings Tax rate on other income of individuals, firm and companies Tax Rate on non-residents income, imposition of Surcharge. 1.12. Investment Tax Credit and Tax Rebate 1.13. Payment, Refund and Recovery. Modes of Tax payment: Tax deducted at source (TDS) or pay-as-you-earn (PAYE), Advance payment, Payment on the basis of return, Adjustments with other taxes paid, and Payment on notice of demand, Tax Recovery, Tax Refund, Tax Relief. 1.14. Assessments of Individuals, Firms, Association of Persons and Co-operative Societies. Assessment covering all heads of income Set-off and carry forward of losses by firms and partners income including income other than firms income Allocation firms income Assessment in case of change in firms constitution and in case of constitution of new successor firm. 1.15. Corporate Taxation Definition, Determination of total income, Rates and Rebates, classification of companies according to Income Tax Law. Assessment of Various types of Companies including bank and insurance companies and companies engaged in extraction and exploration of material resources Corporate fiscal incentives. 1.16. Provident, Superannuating, Pension and Gratuity Funds. Kinds of Provident Funds (PF) Statutory: General & Contributory; Recognized and Unrecognized privileges of Recognized PF Approved Superannuation, Pension and Gratuity Funds. 1.17. Liabilities in special cases. Liabilities of representatives, agents, firms, association of persons, partners, company directors, liquidators, etc. 1.18. Appeals, Revision and Reference Appeal and or Revision against DCT, Tax Recovery Officer (TRO) Decision of appeal by AJCT, Taxes Appellate Tribunal, High Court Division and Appellate Division. 1.19. Miscellaneous issues. Offence and Prosecution Methods of Accounting Double Taxation Relief-Tax Avoidance-Bond Washing Transactions. Tax-holiday and Tax-exemption Scheme: Industrial undertakings Tourist Industries Objectives and Importance of the Scheme Accelerated Depreciation Tax Audit and Investigation. 204.02 Property Taxes 2.01. Property related Tax under Income Tax law 2.02. Income tax on investment 2.03. Tax on national income 2.04. Capital gain tax on transfer of property. 2.05. Gift for, Charge of gift tax, Taxable Gifts, Exemption from Gift-tax. Determination of the value of Gifts Return of gifts Gift tax payable penalty Prosecution Assessment procedures Rates Authorities. 204.03 Indirect Taxes 3.01. Objective of Custom Act, Custom procedure- statutory definitions of import Terms Duties under the custom Act 1969. [General Customs Duty (import/export duty), Regulatory Duty, Countervailing Duty, Antidumping Duty and safeguard duty] - Rates of Duties, Duties Taxes and other charges collected by custom Authority at Import point (Custom Duty (CD) Supplementary Duty (SD) Value Added Tax (VAT)

Infrastructure Development surcharge (IDSC) and Advance Income Tax (AIT) Computation of Duties and Taxes at Import stage Duty, Drawback Customs Authority Assessment Appeals and Revision Offence and Penalties Power of Search, Seizure and Arrest under Custom Act. Travel Tax on Foreign Tours Baggage rules and related Taxes. 3.02. Value Added Tax (VAT) Concepts, Advantages and Disadvantages, Arguments for and against VAT, Computation of VAT in Bangladesh; Obligation of Tax payers under VAT laws Registration. Enlistment for Turnover Tax or Enlistment for cottage Industry- Payment of VAT Submission of Return Maintenance of Books of Accounts and Records VAT audit offence and Penalties Confiscation Appeals, and Revisions Recovery of Claim VAT Refund. 3.03. Other Taxes Excise duty, objectives, Current coverage of excise taxation, Tax Collection Tax Collectors Narcotizes duty, Current coverage of excise taxation Tax collectors. 204.04 Tax planning 4.01. Tax evasion, Tax avoidance, and effective Tax planning 4.02. Prerequisite to Effective Tax planning (All Parties, All Taxes and All Costs). 4.03. Taxing Authority as an Uninvited Investment partner 4.04. Influence of Tax Rules on Investment, Finance and Dividend Decisions. 4.05. Types of Tax planning, Importance of Tax planning 4.06. Restrictions on taxpayer behaviour Tax Arbitrage Tax Clientele. Recommended Readings:1. The Income Tax Ordinance 1984 and the Income Tax Rules 1984 (updated) 2. The Custom Act 1969 3. The value Added Tax Act 1991 (updated) 4. The Excise and Salt Act 1944 (updated) 5. The Gift Tax Act 1920 (updated) 6. The Finance Acts (Latest0 7. Motor Vehicles Tax Act (Bengal Act. No. 1) 1932 (updated) 8. Motor Vehicle Ordinance (No. LV) of 1983 (updated) 9. Tax Planning under Direct Tax Shuklendra A and M. G. gushn 10. Taxation Wilkinson M. (Macmillan).

301. Advanced Financial Accounting II 100


Course Objectives
This course is designed to fulfill the following objectives. To know : a. ethical code and standard of reporting b. accounting process of business combination with due focus on related IAS and IFRS c. consolidated accounting reports and their contents d. length and breadth of interim financial reporting, segment reporting e. the model of government accounting and human resource accounting A: Ethics & Standards 301.01 Ethical Issues in Financial Reporting Fraudulent financial reporting, Ethical standards for preparers of financial statements and reports, Ethical standards and codes of ethics for management accountants and financial executives, Codes of ethics for accountants in public practice

Describes best practices and emerging issues in governance for profit-oriented, not-for-profit, and public sector organizations (e.g. impact of increasing shareholder and stakeholder activism). B: Accounting for Combination 301.02.1 Accounting for Business Combinations (IFRS-3) Anti-trust considerations, Methods for arranging business combinations, Establishing price for a business combination, Purchase method of accounting, application of IFRS-3 301.02.2 Consolidated Financial Statements on date of Acquisition (IAS-27 & IAS-28) Parent company subsidiary relationships, Consolidation of wholly owned subsidiary, Consolidation of partially owned subsidiary, Application of International Accounting Standards. 301.02.3 Consolidated financial statements following acquisition Operating results of wholly owned subsidiaries, Equity method and cost method, Operating results of partially owned subsidiaries, Equity method for partially owned subsidiary for first year of business combination, Equity method for partially owned subsidiary for second year after business combination Cost method for partially owned subsidiary. 301.02.4 Unrealized profit in inter-company sales of inventory Inter-company transactions not involving gain or loss, Inter-company transactions involving gains or loss, Inter-company sales of merchandise, Inter-company sales of plant assets, Inter-company lease of property, Inter-company sales of intangible assets, Acquisition of affiliates bonds. 301.02.5 Income taxes, cash flows, and installment acquisitions in combination (IAS-7, 12) Income taxes in combination a.nd consolidation, Consolidated statement of cash flows, Installment acquisition of subsidiary, 301.02.6 Changes in Ownership Interests Changes in parent companys interest in a subsidiary, Subsidiary with preferred stock outstanding Stock dividend distributed by subsidiary, Indirect shareholding and parent companys common stock owned by a subsidiary C. Branch Accounting 301.03. Accounting for Branch Activities Accounting system for a branch, Expenses incurred by home office and allocated to branches, Methods of billing merchandise shipments to branches, Separate financial statements for branch and for home office, Combined financial statements, Billing of merchandise to branches at prices above costs, Treatment of beginning inventories priced above costs, Reconciliation of reciprocal ledger accounts, Transactions between branches D. Foreign Currency Accounting 301.04.1 Accounting for Foreign Currency Transactions (IAS-21 & IAS-39) Purchase of merchandise from a foreign supplier, Foreign currency transaction gain or loss, Sale of merchandise to a foreign customer, Loan payable in a foreign currency, Loan receivable in a foreign currency, Forward contracts, Application. 301.04.2 Translation of Financial Statements of Foreign Affiliates Functional currency, Re-measurement of a foreign entitys accounts, Translation of a foreign entitys financial statements. E. Interim & Segment Reporting 301.05 Interim Financial Reporting (IAS-34) Problems in interim financial reports, Reporting accounting changes in interim periods, Application of IAS-34.

301.06 Segment Reporting (IFRS-8)

Reporting components of an entity, Product segments and geographical segments, Allocation of expenses to operating segments, Reporting disposal of business segment. Corporate Reporting : Describes the methods of compensation (e.g. cash, stock, and options), corresponding tax implications, and related factors for a given organization. Describes the methods of business valuation. Explains the accounting treatment for a given organization of the following specific items and transactions Employees Benefit, R & D, EPS: Non-monetary Transactions Pensions and other employee future benefits. Research and development (R & D) costs. Non-monetary and related party transactions. Earnings per share. 301.07 Accounting for Liquidation and Re-organization Bankruptcy liquidation, Shareholders voluntary liquidation, Creditors involuntary liquidation, Liquidation by order of the court, Role of liquidator and official liquidator, Discharge of debtors, The statement of affairs, Recovery by each class of creditors, Accounting and reporting for trustees, Corporate re-organization, Accounting for re-organization, Disclosure of re-organization. F. HRA, Government Accounting, Dilutive Securities and Earning per Share 301.08 Government Accounting Nature and scope of government accounting, Frame work and structure of government accounting, Finance and revenue accounts, Budget and annual development program. 301. 09 Human Recourse Accounting (HRA) Definition and its scope, Emergence of human resource accounting, Traditional accounting practices, Human resource -an asset, classification of human resource accounting approaches / model, Cost based approaches, historical approaches accounting, Replacement cost based approaches, Opportunity cost model, Economic model, Goodwill method, Adjusted discounted future wages method, Behavioral and other surrogate measures. 301.10 Dilutive Securities and Earning per Share (IAS-33) Dilutive Securities and Compensation Plans: Accounting for Convertible Debt, Convertible Preferred Stock, Stock warrants, Stock Compensation plans-computing Earning Per Share: Simple Capital Structure and Basic Earning Per Share, Complex Capital Structure and Diluted Earnings Per Share, Comprehensive Earning per Share, IAS-33. Text Books: 1. Modern Advanced Accounting in Canada, 4th edition Murray W. Hilton. 2. Advanced Financial Accounting, 4th Canadian edition Byrd & Chen. 3. Modern Advanced Accounting, 10th edition - E. J. Larsen (McGraw-Hill). 4. Advanced Accounting, 7th edition Hoyle, Schaefer & Doupkin. 5. International Financial Reporting Standards - IASB, London (Latest edition).

Reference books:
1 Advanced Financial Accounting, 6th edition - Baker, Lembke & King (McGraw-Hill). 2. Advanced Accounting, 6th edition - Haried, Imdieke & Smith (John Wily & Sons, Inc.). 3. Ethics Reading Handbook - CGA, Canada (2nd edition).

303. Corporate Laws, Governance & Secretarial Practices 100


Course Objective
The course is designed to achieve the following objectives. These are to a. know particular code of conduct, policies & conventions are maintained by the organization b. know corporate laws that regulate a corporate type of business right from its formation up

to winding up c. know all legal procedures maintained in corporate matters d. know all legal procedures and practice maintained in corporate governance e. know the standard practices that a corporate secretary should follow A. Corporate Laws 50 303.01 The Companies Act 1994

1.01 Introduction.
Background and evolution of company law in the sub-continent The company: Its nature and kinds formation and incorporation of a company law and Procedures.

1.02 Constitution and in corporation.


1. Memorandum of Association : Definition Importance Form Content Procedure of alteration. 2. Articles of Association : Definition Content Procedure of alteration. 1.03 Share and capital 1. Prospectus : Issue Listing of Companies Content Statement in lieu of prospectus Misleading Prospectus Remedies. 2. Share Capital: Application Allotment Types of shares Debenture Premium Discount Rights Issue Convertibility Alteration of Share Capital Bonus share Share-split. 3. Share Certificate and Share Warrant: Definition Content Issue Surrender etc. Membership and maintenance of register etc. Transfer and transmission of shares and Debentures Forfeiture of shares. 1.04 Borrowing and Debenture Borrowing Powers and Methods Pledges Hypothecation Mortgage Floating Charge.

1.05 Regulations for management of A Company limited by shares.


1.06 Directors Directors Qualifications Appointment Removal of Managing Agent Duration Investigation Remuneration. 1.07 Meeting and Resolutions Boards Meeting Frequency Notice Agenda Quorum Resolution General Meetings Types Law and procedure Resolutions and minutes.

1.08 Accounts, Audit and inspection.


Appointment Remuneration and Removal of Auditors.

1.09 Winding up.


Meaning Modes Consequences etc. 1.10 Liquidators

1.11 Registration of Foreign Companies.


2.01 Bank Companies Act 1991 (Amended upto 2003) 1. Introduction 2. Business of Bank Companies 3. Suspension of Business and Winding up. 3.01 Law Relating to Securities & Exchange 1. Introduction 2. Securities and Exchange Ordinance 1969 3. The Securities and Exchange Commission Act. 1993 4. Securities and Exchange Rules 1987

4.01 The Financial Institutions Act 1993 1. Introduction 2. License of Financial Institutions 3. Reserved Fund, Dividend, Liquid Assets. 4. Submission of Accounts and Audit 5. Moratorium and Reconstruction of Financial Institution. 5.01 The Insurance Act 1938 and Insurance Corporation Act. 1973 1. Introduction 2. Provisions Applicable to insurance 3. Investment, loans and Management 4. Investigator and Power of Chief Controller of insurance 5. Assignment and Nomination 6. Insurance Corporation Act. 7. Winding up. 6.01 Leasing Companies Act 1. Introduction 2. Leasing industry Scenario in Bangladesh, Meaning of Lease financing 3. Types of Lease financing, operating lease, financial lease 4. Character sties of operating and financial lease 5. Merits and demerits of lease 6. Provision for leasing Companies. B. Corporate Governance & Secretarial Practice 50 a. Corporate Governance 20 7.01 Introduction Learning Objectives Definition, Role Purpose, Nature and Characteristics of Corporate Governance 7.02 Organization Code, Corporate conduct and ethics Identifies the role of a given organization's code of corporate conduct and ethical values with respect to governance issues and the accomplishment of the organization's strategic objectives. 7.03 The board of directors 1. Roles and Responsibility 2. Appointment, Retirement & Removal 3. Qualification. 4. Remuneration 7.04 Board committees Explain and assess the importance, roles and accountabilities of board committees in corporate governance. Different approaches to corporate governance. Governance: reporting and disclosure b. Secretarial Practices 30 303.06 The Company Secretary: Appointment, legal position, Duties of Company secretary, Rights liabilities and Qualifications 303.07 Functions of the company secretary: Formation of a company, issuance of shares, Issue and Redemption of Debentures, Companys Directors meeting, Books of accounts, and Financial Reports Filing of Return, Recording of minutes of meeting etc. 303.08 Case Analysis 303.08.1 Salomon v. Salomon & Co. Ltd. (1897)

303.08.2 Turner Morrison & Co. v. Hungerford Investment Trust Ltd. (1969) 303.08.3 Egyptian Salt and Soda Co. Ltd. V. Port Salid Salt Association Ltd. (1931) 303.08.4 Ashbury Railway Carriage & Iron Co. v. Riche (1875) 303.08.5 Tussaud & Sons v. Tussaud (1890) 303.08.6 Allen v. Gold Reefs of West Africa Ltd. (1900) 303.08.7 Beattie v. Bettie Ltd. (1938) 303.08.8 Gluckstein v. Barnes (1900) 303.08.9 Howrah Trading Co. v. I. T. Commissioners (1959) 303.08.10 Perceival v. Wright (1902) 303.08.11 City Equitable Fire Insurance Co. (1925) 303.08.12 Barnet Hoars & Co. v. South London Tramways Co. (1887) 303.08.13 Kingston Cotton Mills Co. (1896) 303.08.14 Foss v. Harbottle (1843) 303.08.15 Yorkshire Wool Combers Association (1903) Recommended Text books 1. All the relevant Acts 2. Hand books for Company Secretary 1998. A.K.A. Muqtadir 3. Study manual on corporate and practices ICAB 4. Corporate Governance Kesho prasad 5. Code of Corporate Governance for Bangladesh 6. CIMA, ICWAI,ACCA Study text.

304. AUDITING
304. AUDITING - 100 Course Objective The course is designed to achieve the following objectives. These are to a. b. c. d. e. f. g. explain the nature, purpose and scope of an Assurance Engagements explain the nature, purpose and scope of an audit and review of financial statements consider compliance with national laws and regulations in an audit and review appraise theoretical and regulatory national auditing frameworks and international auditing guidelines perform auditing procedures in EDP environment explain the professional ethics of a Professional Accountant outline the position of an auditor

1.00 1.01. 1.02. 2.00 2.01 2.02 2.03

INTRODUCTION TO AUDITING Meaning, Nature and Scope of Audit Objectives and Types of Audit FRAMEWORK International Framework for Assurance Engagements ISAE 3000 Assurance Engagements Other Than Audit or Reviews of Historical Financial Information ISAE 3400 The Examination of Prospective Financial Information

3.00 AUDITS AND REVIEWS OF HISTORICAL FINANCIAL INFORMATION. 3.01 ISA 200-299 General Principles and Responsibilities ISA 200 Objective and General Principles Governing an Audit of Financial Statements ISA 210 Terms of Audit Engagements

ISA 220 Quality Control for Audits of Historical Financial Information ISA 230 Audit Documentation ISA 240 The Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements ISA 250 Consideration 'of Laws and Regulations in an Audit of Financial Statements ISA 260 Communication of Audit Matters with Those Charged with Governance 3.02 ISA 300-499 Risk Assessment and Response to Assessed Risks ISA 300 Planning an Audit of Financial Statements ISA315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement ISA320 Audit Materiality ISA330 The Auditor's Procedures in Response to Assessed Risks ISA402 Audit Considerations Relating to Entities Using Service Organizations 3.03 ISA500-599 Audit Evidence ISA500 Audit Evidence ISA 510 Audit Evidence - Additional Considerations for Specific Items ISA 505 External Confirmations ISA 510 Initial Engagements - Opening Balances ISA 520 Analytical Procedures ISA 530 Audit Sampling and Other Means of Testing ISA 540 Audit of Accounting Estimates ISA 545 Auditing Fair Value Measurements and Disclosures ISA 550 Related Parties ISA 560 Subsequent Events ISA 570 Going Concern ISA 580 Management Representations 3.04 ISA600-699 Using Work of Others ISA600 Special Considerations -Audits of Group Financial Statements ISA610 Considering the Work of Internal Auditing ISA620 Using the Work of an Expert 3.05 ISA700-799 Audit Conclusions and Reporting ISA700 The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements ISA701 Modifications to the Independent Auditor's Report ISA710 Comparatives ISA720 Other Information in Documents Containing Audited Financial Statements 3.06 ISA800-899 Specialized Areas ISA 800 The Independent Auditor's Report on Special Purpose Audit Engagements. 3.07 7.01 4.00 4.01 4.02 4.03 5.00 5.01. Audits in EDP Environment. Audits in CIS Environment PROFESSIONAL ETHICS Introduction and Fundamental Principles Code of Professional Ethics Profession Accountants in Public Practice Code of Professional Ethics Professional Accountant in Business AUDITORS POSITION Qualification and Disqualification of Auditor

5.02. 5.03. 5.04. 5.05. 6.00 6.01. 6.02.

Appointment and Removal of auditors Rights and Powers of Auditors Responsibilities and duties of Auditor Remuneration of auditor PUBLIC SECTOR AUDIT Constitutional Provisions IFAC Guild lines for public sector Audit

Recommended Text books 1. 2. 3. 4. 5. 6. 7. 8. 9. ISA Issued by IAASB, IFAC Code of Professional Ethics Issued by IAASB, IFAC Code of Ethics issued by ICAB Companies Act, 1994 Part VI, Chapter-ii, Constitution of the Government of Peoples Republic of Bangladesh Public Sector Accounting and Auditing- A comparison to international Standard by World Bank, May 2007. Auditing - Khawaja Amjad Sayeed - 2008 edition 8. Modern Auditing - Gill. Modern Auditing - Gill. Contemporary Auditing - Kamal Gupta 4th

edition

401. Financial Management 100


Course Objectives Financial Management course is designed to achieve the following objectives. These are to a. explain the term finance and its scope in business management; b. describe various sources of funds with their costs; c. explain various methods of evaluating investment projects; d. explain capital structure theories; e. describe various dividend polices and their relative importance; and f. explain various specific issues like working capital management, base financing and recondition of organization. g. describe various investment concepts h. describe various techniques of security analysis; and i. explain various steps involved in portfolio management. 401.01 Role and objective, working capital Management and Analysis of Financial Management 1.01. Role and objective of Financial Management, Financial Management Decisions, Agency Problem, objective of public Enterprise in Financial Management. 1.02. Working Capital Management, Working Capital Polices, Factors effecting working capital of a Firm, Fore casting working capital requirement, Management of Debtors, Inventory and cash. 1.03. Analysis of Financial Statements : Statement changes in financial position; Income statement, Balance Sheet, Cash flows statement, Owners equity statement & their components, Ratio Analysis, Financial statement analysis, Budgeting and Profit planning.

401.02 The Time value of Money, Cost of Capital and leverage and capital structure 2.01. Time value of Money : Time preference for money, reasons for time preference of money, Preference rate and required rate, implication of time value of money, Technique of Calculation compounding and discounting, Periodical compounding and discounting linking to PV & FV. 2.02. Cost of Capital : Costs of capital components, Marginal Cost of capital, Weighted Cost of Capital, Modigliani and Millers view of cost of capital, cost of Capital and Adjusted cost of Capital. 2.03. Capital Structure: Capital structure and financial structure, Theories of Capital structure, Traditional Approach and MM Approach, Designing Capital Structure. 2.04. Leverage: Financial leverage, operating leverage, combined leverage, Effects of Financial Planning on leverage. 2.05. Risk management 401.03 Source of Finance & valuation of securities 3.01. Short term Finance : Nature and Importance of STF, Types of STF, Trade Credits, Money market securities, Commercial papers bankers acceptance, time of credit, short time bank loan. 3.02. Term & long term Financing: Nature and Importance of Source of LTF or term financing, payment structure of LTF Conceptual meaning of long term financing. 3.03. Characteristics and valuation of fixed income Decorations characteristics of Long-term Debts, Bond valuation Characteristic of Preference share valuation of Preferred stock. 3.04 Characteristics of Common stock, Characteristics of Common stock valuation Valuation of closely Held Firm. 3.05 Lease Financing: Jargons, Types, Methods of Lease, NPV Analysis, 401.04 Portfolio Management, Capital Market Theory and Dividend Policy 4.01. Portfolio Management: Concept, process, importance, measuring risk and return from port folio Markowits port folio selection model single asset port folio, two assets three assets port folio, Port folio risk and return in risky and uncertain situation Formulate appropriate investment port folio policy, efficient port-folio Efficient fronter Index model, correlation model portfolio strategies 4.02. Capital Market Theory : Capital Assets pricing model (CAPM) uses of CAPM Capital asset pricing fund transfer, cost of capital, Historical and empirical CAPM Market portfolio estimating beta equilibrium risk return trade off, estimating security market line (SML), Capital market line (CML), Arbitrage pricing Theory (APT), concepts Testing APT estimating APT. 4.03. Dividend Policy : Dividend policy constant payment ratio- stable Dividend Residual Dividend

policy Determinate of Dividend policy scrip Dividend and stock Dividend- Theory of Dividend irrelevancy. 401.05 Financial DerivativeMarger and Acquisition and Foreign Exchange Management 5.01. Derivatives : Derivatives and option theory Theory of Options Simple, Option strategic call option and future compared, Factor Affecting option values Application of option pricing theory to corporate Finance Swaps - Swap structure types of swaps. Convertible securities, warranties, hedging. 5.02. Marger and Acquisition: Marger and Take over Activity Motives for meaning Takeover Tactics Financing Acquisition. 5.03. Foreign Exchange Management: Factor influencing Exchange Rates Managing Transaction Risk Currency Future Contracts Foreign Exchange Risk. Methods of Translation and Adjustment of Rate fluctuation effects. Recommended Text books 1. Principles of Managerial Finance L. J. Gitman 2. Principles of Corporate Finance Brealy S. A. & S. C. Myers (2003) 7th edition. 3.Financial Management Vanhorne - 12th Edition 4. Financing Large Projects Using Project Finance Technique and Practice Khan and Parra 2003 edition 5. Investment Management Security Analysis and Portfolio Management 9th Edition V.K. Bhalla.

402 Strategic Management Accounting


402 Strategic Management Accounting 100

Course Objectives: To provide the students with an in-depth knowledge of management accounting to make them competent to prepare and analyses accounting data, apply it to a range of planing, control and decision-making situations and adopt it to accommodate changes. On completion of this course they will be able to: a. apply management accounting techniques in planning, control and decision-making situations. b. apply and evaluate alternative methods of investment appraisal. c. apply and evaluate techniques for allocating and managing resources. d. discuss and evaluate performance of strategic management accounting decisions. e. apply quantitative models for management planning and control. 402.01 Capital Budgeting Capital Budgeting-An Investment Concept; Capital Budgeting Process; Cash Flow Estimation; Capital Budgeting Evaluation Methods: Discounted Cash Flow Methods and Non-discounted Cash Flow Methods; The Ranking of Investment Projects; Post-investment Audit. 402.02 Advanced Capital Budgeting Topics The Effect of Depreciation on After-Tax Cash Flow; Sensitivity Analysis for Capital Budgeting Decisions Under Uncertainty; Inflation in the Capital Budgeting Process; Ranking Multiple Capital Projects;

Ranking Projects Under Capital Rationing; Capital Budgeting in the Contemporary Manufacturing Environment; Strategic Cost Management and Capital Budgeting; Behavioral Issues in Capital Budgeting.
402.03 Responsibility Accounting and Transfer Pricing in Decentralized Organization

i.

ii.

Decentralization; Advantages and Disadvantages of Decentralization; Responsibility Accounting System; Types of Responsibility Centres; Traditional vs. Contemporary Responsibility Accounting; Limitations of Traditional Responsibility Accounting: Activity Based Management. Transfer Pricing: Transfer Price; Objectives of Transfer Price; Transfer Pricing Methods: CostBased Transfer Prices, Market-Based Transfer Prices, Negotiated Transfer prices, Dual Transfer Pricing; Choosing the Right Transfer Pricing Method; Transfer price for Service Departmens; Multinational Transfer pricing; Behavioral Implications of Transfer Pricing.

402.04 Measuring Organizational Performance

Traditional Financial performance Measures: Divisional Profits, Cash Flow, Return on Investment, Residual Income; Limitations of Traditional Methods for Evaluating Segment performance; Nonfinancial Performance Measures; Throughput as a Non-financial performance Measure; Activity-Based Costing and performance Evaluation; Performance Evaluation in Multinational Selling.
402.05 Total Quality Management

Definition of Quality; TQM Implementation Guidelines; Types of Conformance; Costs of Quality-Types of Quality Cost(QC), Distribution of QC, Reporting Quality Costs; TQM in Service Organizations; TQM and Management Accountants. 402.06 Managing Productivity Definition Productivity; Measuring Productivity: Partial and Total; Measuring Changes in Activity Efficiency: Activity Productivity Analysis, process productivity Analysis; Quality and Productivity.
402.07 Inventory Management and JIT

Pull-System, Setup and carrying costs, The JIT Approach, Due-date Performance, The JIT Solution, Avoidance of Shutdown and Process Reliability-The JIT Approach; Discounts and Price Increases, JIT Purchasing Versus Holding Inventories; JITs Limitations Manufacturing Resource Planning (MRP-II).
402.08 Quantitative Models for Planning and Control

Linear Programming - Effects of Constraints, Linear Programming Requirements, Optimal Solution under LP using Graph and simplex, Critical Path Method; Network Models: PERT; PERT-Cost Analysis; Queuing theory; Decision Tree Analysis; Discounted Expected Value of Decision, Game theory and investment analysis, Transportation model, shadow price and sensitivity analysis.
402.09 Management Control

Definition of Management Control; Objectives of Management Control; Operational Control vs. Management Control; Design of Management Control Systems: Informal Systems and Formal Systems; Open and closed Loop Control System, Feedback: Positive and Negative Feedback; Behavioral Aspects of the Control process.

402.10 The Balanced Scorecard, Benchmarking, EMA and Six Sigma Balanced Scorecard: Measuring Total Business unit performance The BSC Financial perspective customer perspective internal business process perspective Learning and Growth perspective. Four perspectives and their sufficiency. Benchmarking: Meaning Benefits of Benchmarking analysis Types of benchmarking Benchmarking process TQM and Benchmarking Management accounting for benchmarking. Environmental Management Accounting (EMA) Six Sigma. 402.11 Strategic risk, Operational risk, Reporting risk and Compliance risk Definition and distinguishing among strategic risk, operational risk, reporting risk, and compliance risk for a given organization. The external risks related to the organization's strategic objectives, the impact of those risks, and the necessity for risk management. Potential shifts in the external environment and implications of such shifts for a given organization's exposure to risk. An appropriate risk response strategy, including procedures for managing risk, for a given organization. Reporting mechanisms for compliance and risk issues (e.g. risk reporting, whistle blowing) within the context of a given organization. Methods of measuring organizational performance in relation to internal operational goals set by the planning and budgeting function.

Best practices and emerging issues in performance measurement in a given industry (e.g. strategy mapping, target setting, performance-based budgeting). Texts Books 1. Advanced Management Accounting 3rd Edition Kaplan, R. S. and A. A. Atkinson. 1998 (Prentice Hall). 2. Cost Management: Strategic for Management Decisions - Hilton, R. W., M. W. Maher, and F. H. Selto, 2003. 3. Cost Accounting, - L. Gayle Rayburn (6th edition) 4. Managerial Accounting: R.H. Garrison (10th edition) 5. Management Science - Turburn & Merdith (6th edition) Reference Books 1. Cost Management - Blocher, Chen & Lin (1st edition) - 1999 2. Cost Management: Hansen and Mowen (4th edition) 3. Cost Accounting: Barfield, Raiborn and Kinney (3rd edition) 4. Introduction to Management Accounting C.T. Horngren (12th edition)

403. Strategic Management and Organizational Behavior 100


Course Objectives This course is designed to achieve some specific objective. These are to a. understand the nature and models of organizational behavior and its implications b. explain the concepts of authority, power, responsibility and delegation c. analyze the courses of inter-group and interpersonal conflict in an organization and recommend ways in which such conflict might be managed d. evaluate ways in which change can be managed successfully e. analyse how the culture affects the way in which organizations conduct business f. explain the formation of groups and the way in which groups and their members behave g. evaluate individual behavior, job satisfaction and its impact on business h. identify the principles and concepts in the theories and practices of strategic management i. evaluate different approaches to strategy formation j. prepare and evaluate competitive strategy analysis and its matching and implementation k. outline how formal corporate structure functions l. assess the importance of human resources development to organizations and identify methods of managing people effectively.

Strategic Management (Marks-60)


A: Strategic Mission and Vision 403.01 Introduction Define Strategy; Define Strategic Management, Tasks of Strategic Management, Strategic Management a Process, Role of members for Strategy formulation, the Tasks of Strategy. Benefits of Thinking and Managing Strategically 403.02 Strategic Mission and Vision Developing a Strategic Vision/Mission, Establishing Financial and Strategic Objectives, Crafting a Strategy, Factors Shaping a Companys Strategy Linking Strategy With Ethics. Identifies and explains the role that a given organization's management incentives play in maintaining organizational compliance.

B: Analysis of Situation and Resources to form Strategy 403.03 Role of Situation Analysis in Strategy-Making Methods of industry and Competitive Analysis, Conducting an Industry and Competitive Analysis. 403.04 Evaluation of Companys Strategy Present Strategy Is Working, SWOT Analysis: Resource Strengths and Weaknesses, Opportunities and Threats, Strategic Cost Analysis and Value Chains, Assess a Firms Competitive Position, Identify

Strategic Issues. C: Competitive & Globalization Strategies 403.05 Competitive Strategies Low-Cost Leadership Strategy, Broad Differentiation Strategies, Best-Cost Provider Strategies, Focused Low-Cost Strategies, Focused Differentiation Strategies, Vertical Integration Strategies, Merger and Acquisition Strategies, Cooperative Strategies, Offensive and Defensive Strategies, FirstMover Advantages and Disadvantages. 403.06 Globalization Strategy Expanding into Foreign Markets, Cross-Country Differences, The Competitive Environment: Multicountry or Global Competition: Strategy Options for Entering and Competing in Foreign Markets, Pursuing Competitive Advantage by Competing Multinationally, Profit Sanctuaries, Cross-Market Subsidization, and Global Offensives, Strategic Alliances and Joint Ventures with Foreign Partners, Competing in Emerging Foreign Markets, Strategies for Local Companies in Emerging Markets. 403.07 E-strategy

The Internet, Technology and Participants, How Internet Technology Impacts Company and Industry Value Chains, How the Internet Reshapes the Competitive Environment, Strategic Mistakes Made by Early Internet Entrepreneurs, E-commerce Business Models and Strategies for the Future. D: Entrepreneurial Strategy 403.08 Entrepreneurial Strategy Entrepreneurship types, roles in economic development, entrepreneurial start ups, and growth strategies. Small entrepreneurship, importance, entrepreneurial support services. Formal and informal supports. Organizational Behavior (Marks - 40) E: Behavior and Leadership 403.01 Introduction Organizational behavior (OB), comprehensive OB, Contributing disciplines to OB fields, challenges

and opportunities for OB. Importance of OB for the management accountants, Characteristics and elements of OB, OB models. Foundations of individual behavior, Ability, learning, values, attitudes, Job satisfaction, personality, emotion, perception and their influences in decision making, 403.02 Employee Motivation and Leadership Theories of motivation and leadership, power and politics, conflict negotiation, organizational structure, new design options, work design and technology, OB in e-world, 403.03 Organizational Culture Concepts and functions, creating sustainable culture, how employee learn culture, creating customer responsive culture, spiritual organizational culture. F. Organizational Development 403.04 Organizational Change and Stress Management Forces for change, managing planned changes, resistance to change, Approaches to managing organizational change. Work stress and its management: concept, sources of stresses, consequences of stresses, managing stress. Role of management accountants in managing changes and stresses. 403.05 Team and Group Behavior Foundation of group behavior, defining classifying group, group development, group members resources, structure, process and decision making. Work team, types of teams, creating effective team and management of groups and teams. Role of management accountants in managing group and teams. 403.06 i. ii. Organizational Goal

Recognizes and personally acts on opportunities that are consistent with organizational goals. Constructive personal contributions to team performance. a. Listens well to other team members input. b. Participates actively in team discussions. c. Communicates ideas effectively at team meetings. d. Prepares for team meetings.

e. Takes direction form the team leader. f. Recognizes team norms and operates within them when appropriate. 403.07 a. b. c. Coursework in Groups

Meets commitments and deadlines. Maintains trust and honesty. Exhibits self-confidence.

403.07 Other Professional Manner. a. b. c. Maintains appropriate conduct and demean our. Maintains trust and honesty. Respects the opinions of others

Text Books 1. 2. 3. Strategic Management: Text and Cases, 13th Edition -Thomson and Strickland. Entrepreneurship, 5th Edition - Robert Hisrich & Petters. Organizational Behavior, 10th Edition - Stephen P. Robbins.

Reference books 1. Concepts and Cases Strategic Management- Competitiveness and Globalization, 3rd Edition, - Hitt, Ireland, R. D. and Hoskisson, R.E. (South Western). 2. Organization Behavior at Work, 11th Edition - Keith Davis.

404. Cost and Management Auditing 100


Course Objective The course is designed to achieve some specific objectives. These are to know a. the concepts related to cost and management audit b. the importance of cost and management audits c. how audit plans are prepared and implemented d. the areas where management audit can be conducted e. how to prepare a management audit report

A. Cost Audit - 50 Cost Audit Rules And Regulations 404.01 Introduction to cost Audit Meaning, Nature and Scope of Cost Audit, Purpose and Objectives of Cost Audit, Concepts of Efficiency Audit, Value For Money (VFM) Audit, Performance Audit, Social Audit, Management Audit 404.02 Legal station and position of Cost Auditor as per Company Act. Appointment under the Companies Act, Qualification and disqualification of Cost Auditor, Relationship between cost audit and annual statutory auditor, Rights and Powers, Responsibilities and Duties, Qualification and Disqualification, Resignation and Removal. 404.03 Legislation Relevant to Cost Audit Companies Act, 1994, Cost Audit (Report) Rules, 1997, Order of the Government for Cost Audit, CMA Ordinance, 1977 (Ordinance No. LIII of 1977), CMA Regulations, 1980 (and subsequent amendments) 404.04 Duties and liabilities of Cost Auditors 404.05 Code of Conduct and Ethies Professional misconduct, Liability of a cost auditors 404.06 Audit Planning, Contral & Reporting 1. Familiarization with the industry, the organisation, the production process systems and procedures, list of records and reposts, preparation of the audit program. 2. Verification of records and reports Utilization of statistical sampling methods verification of performance and statements maintained under the cost Accounting ( Records ) Rules. 3. Evaluation of Internal Control Systems - Budgetary Control Capacity utilization, inventory contral , purchase and payables sales and receivables , management information system- assessment of the adequacy of the internal audit function. 4. Risk Assessment, Preparation Cost audit report, placement of the report before the Board of directors and Finalization. B. Management Audit - 50 404.01 Introduction Meaning, nature and scope, organizational needs for Management Audit and its coverage over and above other audit procedures. 404.02 Areas of Management Audit Specific areas of management and operational audit involving review of internal control, purchasing operations, manufacturing operations, selling and distribution, personnel policies, systems and procedures. Aspects relating to concurrent audit. 404.03 Auditing Process and Systems

Audit of the Management Processes and Functions, such as Planning, Organization, Staffing, Coordination, Communication, Direction and Control. 404.04 Auditing MIS Evaluation of Management Information and Control Systems with special emphasis on Corporate Image and Behavioral Problems. Auditing e-business, e-cash, e-payment, e-transactions. 404.05 Environmental Audit 404.06 Auditing CSR & Corporate Governance Corporate Development and Management Audit, including operational and propriety aspects. Audit of Social responsibility of management. Corporate governance and Board Audit Committee Functions 404.07 Specialized Audit and Reports 7.01 Audit of Banks Act 1991 7.02 Audit of Insurance Companies Act - 1938 7.03 Audit of Financial Institutions and co-operations 1984 7.04 Audit of charities and trusts. 7.05 Value for Money Audit. 7.06 Audit of Small Business. 7.07 Audit Committee 7.08 Professional Auditors Liabilities 7.09 Audit of Non Trading concern 7.10 Audit of Public Sector Corporations. Recommended Readings: 1. IASB Hand Book 2. Bangladesh Standards on Auditing ICAB 3. Study Manual on Advanced Auditing ICAB 4. Contemporary Auditing Kamal Gupta. 5. Cost Audit and Management Audit Dutta Chowdhury.