EDUCATION AND TRAINING

SCHEME 2013
 TABLE OF CONTENTS

Paragraph Description Page No.

1 Short title and commencement 2
2 Definitions 2
3 Registration 2
4 Curriculum and syllabus 3
5 Exemption from examinations 5
6 Fee and refunds 7
7 Examinations 8
8 Use of designation 10
9 Prohibition for use of certain designation 11
10 Rules of progression 11
11 Transition policy 12
12 Education delivery system 14
13 Training regulations and guidelines 14
14 Relevant degree awarding institute (RDAI) and 14
Specified degree awarding institute (SDAI)
15 Removal of difficulty 14
Annexure-A Syllabus 15

EDUCATION & TRAINING SCHEME 2013 1

 Directive 1.01

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN

EDUCATION AND TRAINING SCHEME 2013

In exercise of the powers conferred by section 15 of the Chartered Accountants Ordinance, 1961 read with bye-
law 129A of Chartered Accountants Bye-Laws, 1983, to regulate the education and training of the Institute, the
Council approves the following scheme:-
1. SHORT TITLE AND COMMENCEMENT
(1) This scheme shall be known as Education and Training Scheme 2013.
(2) This Scheme shall become effective from March 15, 2014 subject to the transitional arrangements
specified in this Scheme.
2. DEFINITIONS
(1) In this Scheme, unless there is anything repugnant in the subject context:
(i) AFC means Assessment of Fundamental Competencies;
(ii) CAF means Certificate in Accounting and Finance;
(iii) Chairman means the Chairman of ETCOM;
(iv) CFAP means Certified Finance and Accounting Professional;
(v) Directive means directive issued by the Council or its standing committees under bye-law
129A;
(vi) ETCOM means the Education and Training Committee;
(vii) Examinee means a person admitted to the examinations of the Institute;
(viii) Fulltime student means a person enrolled for appearing in examinations of the Institute
under the Ordinance or the Bye-Laws made thereunder, and who has not yet started the
training prescribed under the bye-laws;
(ix) Institute means The Institute of Chartered Accountants of Pakistan;
(x) Member means a member of the Institute;
(xi) MSA means Multi Subject Assessment;
(xii) Permitted book means the books an examinee may carry while attempting the examinations;
(xiii)* Relevant Degree Awarding Institutes (RDAI) means a degree awarding university or institute
recognized by Higher Education Commission of Pakistan, which fulfills the criteria specified
by the Council.
(xiv) Trainee student means a person who has entered into a contract of training prescribed
under the bye-laws, and has been registered as such by the Institute; and
(xv) Website means website of the Institute www.icap.org.pk.
(2) Unless the context otherwise requires, all other terms and expressions used but not defined in this
Scheme shall have the same meaning as assigned to them in the Ordinance and Bye-Laws; and
words importing the singular shall include the plural and vice versa.
3. REGISTRATION
(1) Registration as fulltime student
Persons shall be registered as full time students if they:
(i) are graduates from a local or foreign university recognized by competent authority of higher
education in Pakistan and have undertaken:
(a) minimum 16 years of education; or
(b) minimum 14 years of education with 45% aggregate marks or equivalent grades; or
(ii) have passed Higher Secondary School Certificate with minimum 50% aggregate marks ; or
two subjects at A Levels; or any other equivalent qualification recognized by the Council with
minimum aggregate marks or grades as may be specified by the Council;
(iii) have applied to the Institute for registration; and
(iv) have paid the specified registration fee.
*264th meeting of the Council held on May 8 and 9, 2015.

EDUCATION & TRAINING SCHEME 2013 2

 (2) Registration as trainee student
Persons shall be registered as trainee students if they:
(i) have successfully completed the following qualification:
(a) CAF stage or obtained exemption from CAF stage or equivalent examinations of the
Institute; or
(b) A degree comprising minimum of 14 years of education with minimum 45% marks in
aggregate or equivalent grades in any discipline from any local or foreign degree
awarding institute recognized by competent authority of higher education in Pakistan;
(ii) have attained 16 years of age;
(iii) have completed Presentation and Communication Skills Course specified at CAF stage as
required under paragraph 4(7);
(iv) have been offered a training contract by an approved training organization and have applied
to the Institute for registration; and
(v) have paid the specified registration fee.
(3) Provisional registration
A person may be provisionally registered in the following circumstances:
(i) As fulltime student where result of pre-requisite qualification is awaited. Provided that the
provisional registration shall stand cancelled if the person fails to pass required examinations
or obtain minimum marks or grades required to be eligible for registration by the last date of
submission of form for the first due examination with specified late fee;
(ii) As trainee student where certificate or degree of pre-requisite qualification is awaited in
normal course; or
(iii) Any other circumstances deemed appropriate by the Council for any category.
4. CURRICULUM AND SYLLABUS
(1) Any person seeking membership of the Institute under sub-section (1)(ii) of section 4 of the
Ordinance shall be required to pass all the subjects forming part of the curriculum or obtain
exemption therefrom.
(2) Curriculum
The examinations of the Institute shall consist of the following stages and subjects:
(i) Assessment of Fundamental Competencies (AFC)
AFC-1 Functional English
AFC-2 Business Communication
AFC-3 Quantitative Methods
AFC-4 Introduction to Information Technology
(ii) Certificate in Accounting and Finance (CAF)
Knowledge
CAF-1 Introduction to Accounting
CAF-2 Introduction to Economics and Finance
CAF-3 Business Law
CAF-4 Business Management & Behavioural Studies
Application
CAF-5 Financial Accounting and Reporting – I
CAF-6 Principles of Taxation
CAF-7 Financial Accounting and Reporting – II
CAF-8 Cost and Management Accounting
CAF-9 Audit and Assurance
*Gateway Examinations
GWE 1 Accounting and Reporting (60%) Management Accounting (40%)
GWE 2 Audit and Assurance (50%) Taxation (50%)

*260th meeting of the Council held on January 8, 2015.

EDUCATION & TRAINING SCHEME 2013 3

 (iii) Certified Finance and Accounting Professional (CFAP)
CFAP-1 Advanced Accounting and Financial Reporting
CFAP -2 Corporate Laws
CFAP -3 Business Management and Strategy
CFAP -4 Business Finance Decisions
CFAP -5 Advanced Taxation
CFAP -6 Audit, Assurance and Related Services
(iv)* Multi Subject Assessment (MSA)
MSA-1 Financial Reporting and Assurance Professional Competence
MSA-2 Management Professional Competence
(3) The curriculum shall be implemented in accordance with the transition policy specified in this
Scheme.
(4) Syllabus
(i) The contents and learning outcomes of each subject are attached as Annexure –A.
(ii) Where specific reference to any legislation, guideline, standard and other similar document
is given in the syllabus, it shall be deemed to cover any subsequent amendments that may
be made therein from time to time, subject to the timelines mentioned in paragraph 7(2A).
(5) Changes in syllabus
Corrections of editorial nature and changes in syllabus to reflect changes in any legislation, guideline,
standard and other similar document or changes to add, delete or amend any topic not changing
the syllabus of any subject significantly and changes in learning outcomes of individual topic of the
syllabus shall be made by ETCOM with the consultation of Examination Committee.
(6) Revision of curriculum and syllabus
(i) Any subsequent revision in curriculum and syllabus, other than changes specified in paragraph
4(5), shall be recommended by ETCOM to the Council for approval.
(ii) ETCOM shall engage in formal consultation with Examination Committee during the process
of revision in curriculum and syllabus.
(iii) The revision assignment shall be undertaken by ETCOM at least every fifth year from the date
of last revision or earlier if deemed necessary.
(7)** Presentation and Communication Skills Course (PCSC)

(i) There shall be a course on presentation and communication skills of 50 hours.

(ii) PCSC shall be attended at CAF stage before commencement of training. Provided that this
course may be completed during or after the period of training before attempting CFAP
examinations if the trainee:
(a) is registered in direct training scheme available to holder of a recognized degree
under these regulations; or
(b) has completed AFC and CAF or equivalent examinations and joins training by
December 31, 2015.
(iii) As a condition for course completion for students who have not passed or obtained
exemption from Functional English by May 31, 2015, an assessment of writing skills shall
be carried out by the Institute.
(iv) The following shall be exempt from PCSC:
(a) A person who has commenced training on or before December 31, 2014;
(b) Four-year degree holders from any recognized university
(c) Candidates holding equivalence of four-year degree issued by HEC on the basis of
their professional qualification
(d) Candidates who have completed PCSC – 1 applicable at the time of introduction of
PCSC under this regulation.
(e) Candidate who are enrolled in and complete PCSC – 1 applicable at the time of
introduction of PCSC under this regulation.
*256th meeting of the Council held on August 7-9, 2014.
** 313th meeting of the Council held on April-25-26, 2019.

EDUCATION & TRAINING SCHEME 2013 4

 (8)* The presentation and communication skills course may be conducted by the Institute or other
organizations including HEC recognized universities, RAETs **as may be approved by the Institute.
(9)* The learning outcomes and methodology of these Presentation and Communication Skills Course
are specified in Annexure – A.
(10) ***Course on Professional Values, Ethics and Attitude (PVEA)
(i) Trainee student shall be required to complete an online course on PVEA during the period of
training. Provided that a trainee student who has completed his training on or before
October 15, 2020 shall be exempted from the course.
(ii) The learning outcomes of the Course on Professional Values, Ethics and Attitude (PVEA) are
specified in Annexure – A.
(iii) TO shall issue Form –S (Certificate of Completion of Service Under Training Contract) under
bye-law 106 (2) upon successful completion of the Course.
5. EXEMPTION FROM EXAMINATIONS
(1) Application
All persons seeking exemption from any examination shall be required to apply to the Institute on
the specified exemption form along with the prescribed fee.
(2) Conditions for exemption
Exemption from AFC and CAF examinations or any subject thereof shall be granted subject to the
following conditions:
(i) Graduates from ‘Specified Degree Awarding Institutes (SDAI)’
(a) Persons who hold minimum four year relevant degree from ‘Specified Degree Awarding
Institutes’ shall be eligible to claim exemption:
(i) from AFC without fulfilling any criteria; and
(ii) from subjects of CAF provided they fulfill the criteria specified in this paragraph.
(b) Criteria for exemption from CAF shall be as follows:
(i) the syllabus contents and learning outcomes of the subject match at least 70%
with that of the prescribed syllabus and learning outcomes of the Institute or
are of more advanced level; and
(ii)* person has secured minimum 60% marks or equivalent grades in aggregate and
the subject from which exemption is sought.
(c) The procedure and criteria for granting the status of Specified Degree Awarding
Institute is specified in directive 1.04.
(ii) Graduates with minimum 16 years of education from institutions other than Specified
Degree Awarding Institutes
(a) Persons who hold degree with minimum 16 year of education from any local or foreign
institution recognized by HEC, shall be eligible to claim exemption from the following
papers after fulfilling the criteria specified in this paragraph:
AFC-1 Functional English
AFC-2 Business Communication
AFC-3 Quantitative Methods
AFC-4 Introduction to Information Technology
CAF-1 Introduction to Accounting
CAF-2 Introduction to Economics and Finance
CAF-3 Business Law
CAF-4 Business Management & Behavioural Studies

*256th meeting of the Council held on August 7-9, 2014.

**269th meeting of the Council held on October 14, 2015.
**325th meeting of the Council held on April 8, 2020.

EDUCATION & TRAINING SCHEME 2013 5

 (b) Criteria for exemption shall be as follows:
(i)* Minimum 60% marks or equivalent grades in aggregate;
(ii) Minimum 60% marks or equivalent grades in relevant subject(s) from which the
person is seeking exemption; and
(iii) The syllabus contents and learning outcomes of the subject match at least 70%
with that of the prescribed syllabus and learning outcomes of the Institute or
are of more advanced level.
(iii) Graduate with 14 years of education and certain non-graduates
(a) Persons holding a degree with 14 years of education from any degree awarding
institution recognized by HEC or those holding, HSC, A Levels or other equivalent
qualification shallbeeligibletoclaimexemptionfromthefollowingpapersafterfulfilling
the criteria specified in this paragraph.*Provided that the candidates holding higher
secondary school certificate shall not be eligible for exemption from Introduction to
Accounting and Introduction to Economics and Finance after March 31, 2016:
AFC-1 Functional English AFC-4 Introduction to Information Technology
AFC-2 Business CAF-1 Introduction to Accounting
Communication CAF-2 Introduction to Economics and Finance
AFC-3 Quantitative Methods
(b) Criteria for exemption shall be as follows:
(i) For graduates with 14 years of education:
(a) Minimum 60% marks or equivalent grades in aggregate;
(b) Minimum 75% marks or equivalent grades in relevant subject(s) from
which the person is seeking exemption; and
(c) The syllabus contents and learning outcomes of the subject match at least
70% with that of the prescribed syllabus and learning outcomes of the
Institute or are of more advanced level.
(ii) For persons with HSC or other equivalent qualification:
(a) Minimum 70% marks or equivalent grades in aggregate;
(b) Minimum 75% marks or equivalent grades in relevant subject(s) from
which the person is seeking exemption; and
(c) The syllabus contents and learning outcomes of the subject match at least
70% with that of the prescribed syllabus and learning outcomes of the
Institute or are of more advanced level.
(iii) For persons with A Levels:
(a) Minimum two B Grades;
(b) Minimum B Grade in the subject(s) from which the person is seeking
exemption; and
(c) The syllabus contents and learning outcomes of the subject match at least
70% with that of the prescribed syllabus and learning outcomes of the
Institute or are of more advanced level.
(iv) Professional qualifications
(a) Persons who have passed all examinations of the following accountancy bodies shall
be eligible to claim exemption from papers of AFC and CAF specified under the name
of each professional body:
(i) Association of Chartered Certified Accountants (ACCA) of UK
AFC-1 Functional English CAF-6 Principles of Taxation
AFC-3 Quantitative Methods CAF-7 Financial Accounting and Reporting–II
CAF-1 Introduction to Accounting CAF-8 Cost and Management Accounting
CAF-5 Financial Accounting and Reporting–I CAF-9 Audit and Assurance

*256th meeting of the Council held on August 7-9, 2014.

EDUCATION & TRAINING SCHEME 2013 6

 Provided that the exemption from ‘CAF-6 Principles of Taxation’ shall be granted
to persons who have passed TX Taxation -Pakistan variant and exemption from
‘CAF-9 Audit and Assurance’ shall be granted to persons who have passed AAA
Advanced Audit and Assurance.
(ii)* Chartered Institute of Management Accountants (CIMA) of UK
AFC-1 Functional English
AFC-2 Business Communication
AFC-3 Quantitative Methods
AFC-4 Introduction to Information Technology
CAF-1 Introduction to Accounting
CAF-2 Introduction to Economics and Finance
CAF-3 Business Law
CAF-4 Business Management & Behavioural Studies
CAF-5 Financial Accounting and Reporting – I
CAF-7 Financial Accounting and Reporting – II
CAF-8 Cost and Management Accounting
(iii)** Institute of Cost and Management Accountants of Pakistan (ICMAP)
All papers of AFC and CAF stages
(iv) Pakistan Institute of Public Finance Accountants (PIPFA)
AFC-1 Functional English
AFC-2 Business Communication
AFC-3 Quantitative Methods
AFC-4 Introduction to Information Technology
CAF-1 Introduction to Accounting
CAF-2 Introduction to Economics and Finance
CAF-3 Business Law
(b) Other relevant professional bodies
Exemptions shall be granted on basis of qualification on a case to case basis by the
Council.
(3) A person shall be eligible to claim exemption on the basis of different qualifications that the person
holds.
(4) The reference to passing of examination in this scheme means attempting and passing the
examinations of relevant qualification and does not include obtaining exemption from such
examinations. ***Provided that, subject to the conditions imposed by the Council, this paragraph
shall not apply on candidates who have gained professional qualifications of ICMAP and PIPFA after
obtaining some exemptions from examinations of the said professional bodies.
6. FEES AND REFUNDS
(1) Fees
The schedule of fee shall be specified through separate directive.
(2) Refunds
Fee paid by a person shall not be refunded except in the following circumstances:
(i) Fee for registration as fulltime student shall be refunded if the person is found ineligible and
applies to the Institute on prescribed form.
(ii) Fee for registration as a trainee student shall be refunded if the person is found ineligible for
registration as trainee student and applies to the Institute on the prescribed form.
(iii) Fee for examinations shall be refunded in accordance with the provisions of bye-law 116.

*262nd meeting of the Council held on February 20, 2015.

**264th meeting of the Council held on May 8 and 9, 2015.
***259th meeting of the Council held on December 11-12, 2014.

EDUCATION & TRAINING SCHEME 2013 7

 7. EXAMINATIONS
(1) Admission to examination
Persons shall be admitted to examinations if they:
(i) have been registered either as fulltime students or trainee students;
(ii) are eligible to appear in the examination, under the progression rules specified in this
Scheme; and
(iii) have submitted examination form along with prescribed fee, within the specified dates.
(2) Scope of studies
(i) The syllabus of each subject along with indicative grid is attached as Annexure-A.
(ii) Any revision and amendment in legislation, standard, code, guideline and statement shall
not be part of syllabus before six months period elapsed from the date of publication
thereof. Provided that Finance Act or Ordinance, and notifications and circulars relating to
Finance Act or Ordinance, issued four months prior to the date of examination shall be
considered forming part of syllabus in case of CFAP.
(iii) In case of standards on accounting and auditing and code of ethics, the period of six months
shall be counted from the date of publication thereof in Pakistan, by the Institute.
(iv) Standards on accounting and auditing and code of ethics, if revised and published or notified
by the Institute, shall be considered forming part of syllabus after six months from the date
of publication or notification by the Institute even if they are applicable on a later date.
*(2A) Scope of studies (Revised)
Effective from Summer 2019, paragraph (2) of this regulation shall be replaced with the following:
(i) The syllabus of each subject along with indicative grid is attached as Annexure-A.
(ii) Any revision and amendment in legislation, standard, code, guideline and statement shall
not be part of syllabus before six months period elapsed:
(a) in case of legislation, from the date of publication thereof by the issuing authority;
(b) in case of revised or new standard, code, guideline and statement, from the date of
publication of study material by the Institute or date of application prescribed by the
issuing authority of the same, whichever is later; and
(c) in case of changes in existing standard, code, guideline and statement, from the date
of publication or notification by the Institute even if they are applicable on a later
date.
Provided that Finance Act or Ordinance, and notifications and circulars relating to Finance
Act or Ordinance, issued four months prior to the date of examination shall be considered
forming part of syllabus, in case of CFAP.

(3) Time and place of examination

(i) All examinations shall be held at such time and place as the Examination Committee may
from time to time determine.
(ii) The Director Examination shall notify such information on the website by January 1, each
year.
(iii) The Examination Committee shall have the power to change the time and place of
examinations after giving prior notice to the examinees through any or all of the mediums,
namely, website, email, short messaging service, Institute’s social networking sites and postal
service.

* 302nd meeting of the Council held on September 5-6, 2018

EDUCATION & TRAINING SCHEME 2013 8

 (4) Open book examinations
(i) Examinees shall be permitted to carry books in certain examinations as have been specified
below:
Paper Permitted book
CAF-7 Financial Accounting and Reporting – II Handbook of International Financial Reporting
Standards
CFAP-1 Advanced Accounting and Financial Handbook of International Financial Reporting
Reporting Standards
*CFAP-2 Corporate Laws  Anti-money Laundering Act, 2010
 Anti-money Laundering Regulations, 2015
 Central Depository Act, 1997
 Listed Companies (Code of Corporate
Governance) Regulations, 2019 and Public
Sector Companies (Corporate Governance)
Rules, 2013
 Companies (Further Issue of Shares),
Regulation 2018
 Companies (Investment in Associated
Companies or Associated Undertakings)
Regulations, 2017
 Companies (Postal Ballot) Regulations 2018
 Companies Act, 2017
 Companies Ordinance, 1984
 Competition Act, 2010
 Employees Contributory Fund (Investment in
Listed Securities) Regulations 2018
 Foreign Exchange Regulations Act, 1947 and
Foreign Exchange Manual of State Bank of
Pakistan
 Insurance Ordinance, 2000
 Listed Companies (Buy- Back of Shares)
Regulations, 2019
 Listed Companies (Prohibition of Insider
Trading) Guidelines
 Listed Companies (Substantial Acquisition of
voting shares and Takeovers) Regulations,
2017
 Modaraba Companies and Modaraba
(Floatation and Control) Ordinance, 1980
 Modaraba Companies and Modaraba Rules,
1981
 NBFC (Establishment and Regulation) Rules
2003
 Pakistan Stock Exchange Rule Book
 Prudential Regulations for Corporate
/Commercial Banking of SBP
 Public Offering Regulations 2017
 Securities Act 2015
 The Banking Companies Ordinance, 1962
 The Non-banking Finance Companies and
Notified Entities Regulations, 2008
Explanation : Only the Original Bare Acts,
Rules and Regulations made thereunder shall be
permitted

* 297th meeting of the Council held on May 9,2018 and 221st Meeting of Examination Committee on October 26,2018

EDUCATION & TRAINING SCHEME 2013 9

 Paper Permitted book
CFAP-4 Business Finance Decisions Any three books

* CFAP-5 Advanced Taxation  Income Tax Ordinance, 2001 and related

rules
 Sales Tax Act, 1990 and related rules
 Federal Excise Act, 2005 and related rules
 The Provincial Sales Tax Acts
 The Islamabad Capital Territory (Tax on
Services) Ordinance, 2001
Explanation : Only the Original Bare Acts and
rules made thereunder shall be permitted
CFAP-6 Audit, Assurance and Related Services Handbook of International Auditing and
Assurance Pronouncements and Code of Ethics
for Chartered Accountants
MSA-1 Financial Reporting and Assurance Any five books
Professional
MSA-2 Management Professional Competence Any five books

(ii) Only original books duly bound shall be permitted.

(iii) Examinees shall be permitted to highlight or underline the text in the permitted books.
(iv) Any decision taken by the Institute regarding permission to carry a book in the examinations
shall be final.
(5) Use of unfair means
(i) An examinee shall be considered guilty of using unfair means if the examinee’s actions are
likely to give an unfair advantage to the examinee or to any other examinee.
(ii) The unfair means may include but are not limited to:
(a) Cheating, helping or taking help from others while attempting an examination;
(b) Using electronic gadgets, other than those permitted by the Institute through
notification, while attending the examination;
(c) Mentioning name/roll number/ any other identification mark or signing on answer
script except on the specified portion which is specifically provided for this purpose;
and
(d) Writing unsolicited remarks on the answer script.
(iii) The Examination Committee shall have the power to take appropriate action in the matter,
which may include any of the following:
(a) Cancel the result of the paper in which the examinee is found guilty of using unfair
means.
(b) Cancel results of any number of papers attempted by the examinee in addition to the
paper in which the examinee is found guilty of using unfair means.
(c) Suspend admission to examination for a period deemed appropriate, but not exceeding
two years.
(d) Suspend registration for a period deemed appropriate, but not exceeding two years.

* 297th meeting of the Council held on May 9,2018 and 221st Meeting of Examination Committee on October 26,2018

EDUCATION & TRAINING SCHEME 2013 10

 (6) Examination results
(i) The passing marks shall be 50% in each subject.
(ii) Only the marks obtained by persons in paper(s) in which they fail shall be disclosed to them.
(7) Review of answer scripts
(i) An examinee who fails in an examination may apply to the Institute within 30 days from the
declaration of result, on a specified form after paying specified fee, for a review of answer
script.
(ii) The review shall involve:
(a) Checking that the marking process is free from errors and omissions.
(b) Marks were correctly counted and reflected in the results of the examinee.
(iii) The response of the review application shall be sent to the applicant within 40 days of the
receipt of application by the Institute.
(8) Special arrangements
(i) An examinee may apply to the Institute 20 days prior to the first day of the month in which
examinations are to be held, for special arrangements required due to any health or physical
condition.
(ii) The limit of 20 days prior notice may be waived or relaxed by the Institute in case of emergency
or under circumstances beyond the control of the examinee.
(iii) The Institute shall have sole discretion to accept or reject the application or accept it to the
extent deemed appropriate by the Institute.
(9) Persons not to involve in examination process
The following persons shall not involve in any process of paper setting, paper moderation,
invigilation, exam supervision, paper marking, result moderation, result compilation and meeting
of the Examination Committee where results are being discussed:
(i) Any person whose close relatives are appearing in any examination of the Institute. Close
relative shall mean parents, spouse, children, grandchildren, brother, sister, son-in-law,
daughter-in-law.
(ii) Any person who has coached a student for the purpose of institute’s examination and such
student is appearing or has appeared in such examination. Provided that imparting training
required under the bye-laws shall not be considered as coaching.
(iii) Any person who is associated with any institution involved in tuition or coaching of students
for any examinations of the Institute or who has written or published any book for the
guidance of the examinees.
(iv) Any person who has been found guilty of professional misconduct. Provided that the
debarment shall be for a period specified by the Council.
(v) Any person who has conflict of interest of any nature.
(vi) Same restriction shall also apply to the members of Examination Committee and employees
of the Institute.
8. USE OF DESIGNATION
(1) Persons who have passed the CFAP stage, have completed the training prescribed under the bye-
laws and have completed required Presentation and Communication Skill Course may use the
designation Certified Finance and Accounting Professional (CFAP).
(2) Persons who have passed CAF stage or equivalent examinations of the Institute and have completed
required Presentation and Communication Skill Course may use the designation Certified in
Accounting and Finance (CAF).
(3) Persons who have passed examinations of the Institute that are given equivalence with CAF under the
transition specified in this Scheme and have completed required Presentation and Communication
Skill Course shall be eligible for an equivalence certificate to that effect upon applying and paying
the specified fee.
(4)* Persons who have gained CAF stage qualification on the basis of exemption policy of the Institute may
also be eligible to use the designation Certified in Accounting and Finance (CAF) upon completing
of one year training in a Training Organisation and after completing required Presentation and
Communication Skill Course.
EDUCATION & TRAINING SCHEME 2013 11
9.** PROHIBITION FOR USE OF CERTAIN DESIGNATION
Any person who has completed his training, or passed CA Intermediate Examination or part of Final
Examination is prohibited from using the designation such as CA (Inter) or CA (CC) or CA (Group I, II) or
Articles (Institute of Chartered Accountants of Pakistan) or any other designation purporting to convey a
qualification of any sort on the letterhead, forms, business cards or on any other stationery or form of
communication, other than those allowed under this regulation.
10. RULES OF PROGRESSION
(1) Appearance in the Examination
(i) Examinees shall be permitted to attempt CAF if they have passed or obtained exemption from
all papers of AFC. Examinees appearing in CAF examination shall be permitted to attempt
maximum five papers in one sitting.
(ii) Examinees who have completed eighteen months of training prescribed under the bye-laws
on or before the first day of the month in which examination is to be held and have passed or
obtained exemptions from all papers of CAF shall be eligible to attempt CFAP.
(iii)* Examinees who have passed or obtained exemptions from the following papers of CFAP shall
be eligible to attempt ‘MSA-1 Financial Reporting and Assurance Professional Competence’:
(a) Advanced Accounting and Financial Reporting
(b) Audit, Assurance and Related Services
(iv)* Examinees who have passed or obtained exemptions from the following papers of CFAP shall
be eligible to attempt ‘MSA-2 Management Professional Competence’:
(a) Business Management and Strategy
(b) Business Finance Decisions
Provided that the application of progression rules shall be subject to transition policy specified in
this Scheme.
(2)* Appearance in Gateway Examinations
(i) A person who holds a four year degree from RDAI and obtains exemption from all papers
mentioned in paragraph 5(2)(ii) or a person who has passed all examinations of CIMA shall
have the option to appear in any of the following Gateway Examinations in place of the
examinations mentioned thereunder:
(a) GWE-1 Accounting reporting (60%) and Management accounting (40%)
CAF-5 Financial Accounting and Reporting – I
CAF-7 Financial Accounting and Reporting – II
CAF-8 Cost and Management Accounting
(b) GWE – 2 Audit and assurance (50%) and taxation (50%)
CAF-6 Principles of Taxation
CAF-9 Audit and Assurance
(ii) This paragraph does not restrict such candidates to appear in the full length examinations
equivalent to Gateway Examinations irrespective of opting for Gateway Examination in any
previous attempts.
(3) Maximum number of attempts
(i) Examinees appearing in AFC shall be permitted a maximum of three attempts for each paper.
*Provided that examinees who have passed two papers in three attempts shall be permitted
two additional attempts for each remaining paper.

*262nd meeting of the Council held on February 20, 2015.

**264th meeting of the Council held on May 8 and 9, 2015.
***259th meeting of the Council held on December 11-12, 2014.

EDUCATION & TRAINING SCHEME 2013 12

 (ii) Examinees appearing in CAF and CFAP shall be permitted a maximum of six attempts for each
paper. Provided that persons who have passed all papers except two papers of CAF shall be
permitted two additional attempts for each remaining paper of CAF and persons who have
passed all papers except three papers of CFAP shall have no limitation as regard the number
of attempts.

(iii)** Examinees appearing in Gateway Examinations shall be permitted a maximum of six attempts
for each Gateway Examination. An attempt for Gateway Examination shall be counted
towards its full length equivalent examinations simultaneously.
(iv) There shall be no limitation of attempts on examinees appearing in MSA.
(v) An attempt shall be counted when a person is issued the admit card and signs the attendance
sheet in the examination.

11. TRANSITION POLICY

(1) Equivalencies
(i) ***Students currently in transition who will not be able to pass their examinations under
the transition provisions by Summer 2018 will be required to pass their remaining papers as
follows:
(ii) The following shall be the subject equivalencies under the Education Scheme 2013:

Status after Summer 2018 attempt Effective from Winter 2018 attempt
they will be required to pass

Left with ITMAC paper MSA 1 – Financial Reporting and Assurance

Professional Competence

Left with Management Accounting paper MSA 2 – Management Professional Competence

Left with ITMAC and Management Two MSA

Accounting

Left with any paper(s) other than ITMAC Paper(s) he/she is left with
and Management Accounting

*256th meeting of the Council held on August 7-9, 2014.

**264th meeting of the Council held on May 8 and 9, 2015.
***285th meeting of the Council held on April 7 and 8, 2017 and 286th meeting of the Council held on May 10 and 11, 2017

EDUCATION & TRAINING SCHEME 2013 13

 Stages and subjects in Education Scheme 2013
Module Stages and subjects before Assessment for Certificate in Accounting Certified Finance and
the commencement of Fundamental and Finance Accounting Professional
Education Scheme 2013 Competencies
(AFC) (CAF) (CFAP)
Foundation
A Functional English Functional English -
A Quantitative Methods Quantitative Methods -
B Introduction to Economics & Introduction to Economics
Finance & Finance
Introduction to Financial Introduction to Accounting
B Accounting Financial Accounting and
Reporting – I
B Mercantile Law - Business Law (Mercantile
Law section only)
Intermediate
Financial Accounting and
C Financial Accounting Reporting – II
C Taxation - Principles of taxation
Business Communication & Business Management &
C Behavioural Studies Business Communication Behavioural Studies
D Company Law
Business Law
Cost and Management
D Cost Accounting Accounting
D Auditing Audit and Assurance
Introduction to Information
D Information Technology Technology -
Final
Information Technology
E Management, Audit and -
Control
Advanced Accounting & Advanced Accounting and
E Financial Reporting Financial Reporting
E Corporate Laws - Corporate Laws
Business Management and
E Business Management strategy
F Management Accounting - -
F Business Finance Decisions Business Finance Decisions
F Advanced Taxation Advanced Taxation
Audit, Assurance and
F Advanced Auditing Related Services

(2) Transition of Final Stage (Modules E and F)

(i)* The first CFAP shall be offered in Winter 2016 attempt.
(ii)* The first MSA shall be offered in Summer 2017 attempt.
(iii) The persons who join training on or after January 1, 2015 shall be required to pass CFAP
examinations and MSA to qualify as chartered accountants.
(iv) The persons who commence training before January 1, 2015 shall be eligible to appear in
Modules E and F examinations up to Summer 2016 to qualify as chartered accountants.
(v) The persons who commence training before January 1, 2015 and are unable to qualify as
chartered accountants by Summer 2016 attempt:
(a) shall be given credit in CFAP according to the equivalencies specified in this paragraph
after Summer 2016 attempt;
(b) Up to Winter 2017 attempt, shall be required to pass remaining papers of CFAP and
“Information Technology Management, Audit and Control” and “Management
Accounting” based on last applicable syllabus of Module E and F to qualify as chartered
accountants; and

EDUCATION & TRAINING SCHEME 2013 14

 (c) shall be subjected to regulation on limitation on attempts as a fresh examinee for
remaining papers of CFAP.
(vi) Those persons who commence training before January 1, 2015 and are unable to qualify as
chartered accountants by Winter 2017 attempt:
(a) shall be given credit in CFAP according to the equivalencies specified in this paragraph;
(b) shall appear in remaining papers of CFAP and MSA to qualify as chartered accountants;
and
(c) shall be allowed six further attempts, for each paper of CFAP. Provided that those
persons who pass or are exempted from any three papers of CFAP shall have unlimited
number of attempts.
(vii) Effective from Winter 2016 attempt, the persons who join training before January 1, 2015
may opt in writing to obtain credit of their passed papers according to the equivalencies
specified in this paragraph and attempt remaining papers of CFAP and MSA to qualify as
chartered accountant. They shall be subjected to regulation on limitation on attempts as a
fresh examinee for remaining papers of CFAP.
12. EDUCATION DELIVERY SYSTEM
The Education Delivery System is specified in Directive 1.02.
13. TRAINING REGULATIONS AND GUIDELINES
The Training Regulations and Guidelines are specified in Directive 1.03.
14. RELEVANT DEGREE AWARDING INSTITUTE (RDAI) AND SPECIFIED DEGREE AWARDING
INSTITUTES (SDAI)
The procedure to grant the status of Relevant Degree Awarding Institutes and Specified Degree Awarding
Institute to a university is specified in Directive 1.04.
15. REMOVAL OF DIFFICULTY
In case any difficulty of operational nature arises in implementation of these regulations, the Chairman
ETCOM and the Chairman Examination Committee, may jointly take a decision which they deem necessary
for the purpose of removing the difficulty.

*256th meeting of the Council held on August 7-9, 2014

EDUCATION & TRAINING SCHEME 2013 15

 ANNEXURE – A

SYLLABUS

Proficiency level and testing level mentioned against each content of the syllabus are explained as follows:

1. Proficiency Level

a. Level 1
This level requires understanding and awareness of the subject matter and related concepts. The
candidates will be expected to have ability to understand the nature of basic concepts.

b. Level 2
This level requires good understanding and detailed evaluation of the subject matter and related concepts,
along with the ability to apply concepts and skills in simple professional scenario. The candidates will be
expected to have ability to provide reasonable justification and logical explanation to support their
professional judgment and decision making.

c. Level 3
This level requires in-depth understanding of the subject matter and related concepts. The candidates will
be expected to have ability to critically examine and evaluate all concepts and available information to
make firm professional judgments and make decisions.

2. *Testing Level and assessment of contents of earlier stages of qualification

a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8
marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per
question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a
maximum limit of 35 marks in aggregate in an attempt.

Note: *302nd meeting of the Council held on September 5-6, 2018

EDUCATION & TRAINING SCHEME 2013 16

 AFC-1
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
*FUNCTIONAL ENGLISH

Objective
To ensure that candidates can communicate effectively in the English language.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 use a range of vocabulary correctly
2 construct sentences using correct grammar
3 demonstrate the ability of speed reading and comprehension.

Grid Weightage
Vocabulary 15-20
Practical use of Grammar 20-25
Comprehension and Speed reading (General) 10-15
Total 50

Syllabus
Contents Proficiency
Ref
Level
A Vocabulary
1 Meanings and application of vocabulary listed on: 3
a: “The Oxford 3000- Seventh Edition”, and
b: Any other list as the Institute may provide at any time before the
conduct of Examination.
B Practical use of Grammar
1 Parts of speech 3
2 Rules of sentences 3
3 Phrases and idioms 3
4 Tenses 3
5 Direct and indirect speech 3
6 Active and passive voice 3
7 Punctuation 3
C Comprehension and Speed reading (General)
1 Comprehension 3
2 Speed reading 3

Note: *Syllabus has been revised in 264th meeting of the Council held on May 8 and 9, 2015.

EDUCATION & TRAINING SCHEME 2013 17

 AFC-2
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
*BUSINESS COMMUNICATION

Objective
To ensure that candidates can communicate effectively while performing their professional responsibilities.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 comprehend concepts of business communication
2 demonstrate awareness of intra-personal and interpersonal skills
3 understand formats of basic business messages and message-writing etiquette
4 understand the utility of the internet with respect to business communication.

Grid Weightage
Concepts 10-15
Intra-personal and Interpersonal skills 20-25
Communication via the internet 10-15
Total 50

Syllabus
Contents Proficiency
Ref
Level
A Concepts
1 Introduction to business communication 3
2 Communication process 2
3 Seven C’s of effective communication 3
B Intra-personal and inter-personal skills
1 Nature of Intra-personal communication 3
2 Nature of Interpersonal communication 3
3 Critical Thinking 3
4 Non-verbal communication 3
5 Verbal communication 3
6 Visual communication 2
7 Written Communication 3
C Communication via the internet
1 Website hosting (types and services) 1
2 Types of electronic communication 2

Note: *Syllabus has been revised in 264th meeting of the Council held on May 8 and 9, 2015.

EDUCATION & TRAINING SCHEME 2013 18

 AFC-3
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
QUANTITATIVE METHODS

Objective
To develop the ability to apply quantitative methods and statistics to business problems.

Learning Outcome
On completion of this paper the candidate will be able to:
1 understand basic mathematics to build a base for financial analysis and transform business problems
into mathematical equations
2 apply financial mathematics to solve business problems
3 analyse business solutions and identify feasible, alternative optimum and unbounded solutions
using graphical methods
4 evaluate maximised profit, minimised cost and feasible manufacturing quantity by using calculus
5 analyse production planning cases and formulate solutions using matrices
6 present collected data using diagrams, charts and graphs and evaluate common measures of
dispersion and central tendencies
7 evaluate the impact of inflation and rebase numbers using indices
8 use statistical methods in analyzing historical data for decision making and estimating future
outcomes
9 explain and apply probability theory
10 explain sampling and explain and carry out tests of significance.

Grid Weightage
Mathematics
Basic mathematics 10-15
Financial mathematics 15-25
Calculus 10-15
Matrices and determinants 10-15
Statistics
Statistical methods 20-25
Methods of least square and regression 5-10
Probability and probability distribution 5-10
Sampling and decision making 5-10
Total 100

EDUCATION & TRAINING SCHEME 2013 19

 Syllabus
Contents Proficiency
Ref
Level
A Mathematics
a Basic mathematics
1 Exponential and logarithmic functions 2
2 Equation of straight line 2
3 Application of straight line in business and economics 2
4 Simultaneous equation- linear and quadratic 2
5 Coordinate system 2
6 System of linear inequalities and their graphical presentation 2
7 Factorisation of equations including factorisation by completion of 2
squares
8 Arithmetic progression 2
9 Geometric progression 2
b Financial mathematics
1 Simple interest 2
2 Compound interest 2
3 Present value 2
4 Future values 2
5 Annuities 2
6 Internal rate of return 2
7 Interpolation and perpetuities 2
c Linear programming
1 Graphical solution to linear programming problems involving redundant 2
constraints, bounded and unbounded feasible regions, no feasible
solution and alternative optimum solution
d Calculus
1 Rules for differentiation- Sum, difference, product and quotient rules of 2
differentiation
2 Marginal function, calculation of revenue, cost and profit of marginal unit 2
3 Use of second order derivatives; maxima, minima and point of inflexion 2
e Matrices and determinants
1 Fundamentals of matrices, addition, subtraction, multiplication, inverse 2
of matrices
2 Solution of simultaneous linear equations using Cramer’s Rule and Matrix 2
Inverse Method
B Statistics
a Presentation and use of data
1 Collection and tabulation of data 2

EDUCATION & TRAINING SCHEME 2013 20

 Syllabus
Contents Proficiency
Ref
Level
2 Presentation through graphs, charts and diagrams, including stem and 2
leaf display, box and whisker plot
3 Measures of central tendencies and measures of dispersions 2
b Index numbers
1 Index numbers, weighted index numbers, concept of purchasing power 2
and deflation of income
c Methods of least square and regression
1 Scatter diagram, linear relationship, simple linear regression lines by 2
method of least square
2 Simple linear correlation 2
3 Coefficient of correlation and determination 2
4 Rank correlation 2
d Probability and probability distribution
1 Counting techniques 2
2 Probability 2
3 Addition law for mutually exclusive and not mutually exclusive events. 2
4 Multiplicative laws for dependent and independent events 2
5 Binomial distribution 2
6 Poisson distribution 2
7 Hyper-geometric distribution 2
8 Normal distribution 2
e Sampling and decision making
1 Simple random sampling 2
2 Sampling distribution of mean 2
3 Standard error of mean 2
4 Sampling with and without replacement 2
5 Testing of hypothesis for population means, difference between 2
population means and population proportion and difference between
two population proportions
6 Single population variance based on test of Chi-square 2
7 Confidence interval for estimating population means, proportions and 2
variance, and differences between proportions means, proportions and
variance
8 Problems of determination of sample size for the study of population 2
mean and proportion

EDUCATION & TRAINING SCHEME 2013 21

 AFC-4
ASSESSMENT OF FUNDAMENTAL COMPETENCIES
INTRODUCTION TO INFORMATION TECHNOLOGY

Objective
To enable candidates to equip themselves with the fundamental skills and proficiency required to cope with
today’s highly challenging IT oriented business environment.

Learning Outcome
The candidates will be able to:
1 describe and classify different elements of a computer system
2 describe the basic operations in commonly used operating systems
3 demonstrate performance level knowledge in Microsoft Excel
4 demonstrate performance level knowledge in Microsoft Word
5 demonstrate performance level knowledge in Microsoft PowerPoint.

Grid Weightage
Computer hardware and types of operating system 3-6
Microsoft Excel 18-22
Microsoft Word 12-18
Microsoft PowerPoint 8-12
Total 50

Syllabus
Contents Proficiency
Ref
Level
A Computer hardware and operating systems
1 Central processing units (CPUs) – processor, hard disk, random access 1
memory, read-only memory
2 Input devices – Key board, mouse, touch pads, magnetic ink character 1
reader, optical mark reader, optical character reader, barcode reader and
electronic point of sale.
3 Output devices – monitor, printer 1
4 Operating systems – DOS, Windows, Linux 1
5 Core Windows tasks – customize desktop and start menus, work with files 1
and folders, log-on and log-off, search for information, lock the computer,
use a screen-saver password, reset a password
B Microsoft Excel
1 Construction of formulae and application of constructed and built-in 2
functions and formulae
2 Creating and modifying customized data formats 2
3 Using conditional formatting 2

EDUCATION & TRAINING SCHEME 2013 22

 Syllabus
Contents Proficiency
Ref
Level
4 Protecting cells, worksheets and workbook 2
5 Merging workbooks 2
6 Importing and exporting data to and from Excel 2
7 Creating and editing charts and templates 2
C Microsoft Word 2010
1 Creating custom style for text, tables and lists 2
2 Creating and modifying tables 2
3 Creating and modifying a table of contents 2
4 Use of Review and Reference tab commands 2
D Microsoft PowerPoint
1 Creating new presentations from templates 2
2 Inserting and editing text-based content 2
3 Inserting, and editing tables, charts, diagrams, pictures, shapes, graphs 2
and objects
4 Running and printing presentations 2

EDUCATION & TRAINING SCHEME 2013 23

 CAF-1

CERTIFICATE IN ACCOUNTING AND FINANCE

*INTRODUCTION TO ACCOUNTING

Objective

To enable candidates to equip themselves with the fundamental concepts of accounts needed as a foundation
for higher studies of accounting.

Learning Outcome
On the successful completion of this paper candidates will be able to:
understand the nature of accounting, elements of accounts, double entry rules and conceptual
1
framework for financial reporting.
2 identify financial transactions and make journal entries
3 prepare general ledger accounts and a trial balance
4 make period end adjustments prior to the completion of financial statements
have familiarity with the items shown on the face of statement of financial position and statement of
5
comprehensive income.
6 prepare partnership accounts.
understand the basic concepts given in international accounting standards on inventories and
7
Property, plant and equipment

Grid Weighting
Introduction to accounting and book keeping 20-30
Adjustments including corrections of errors 20-30
Preparation of financial statements and partnership records 20-30
Inventories and Property, plant and equipment 20-30
Total 100

Note: * Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.

EDUCATION & TRAINING SCHEME 2013 24

Syllabus Level
Contents
Ref Proficiency Testing
A Introduction to accounting and bookkeeping
1 Introduction to accounting 1 1
 Meaning of business
 Mode of business organization (meaning) - sole proprietorship;
partnership; limited company
 Financial statements- components, responsibility, presentation,
users
2 Conceptual Framework for Financial Reporting 2 1
 Fundamental accounting concepts - accrual, consistency, true and
fair view, materiality, prudence, completeness, going concern,
substance over form
 Elements of financial statements (meaning) - Assets, liabilities,
equity, income, expense
3 Accounting equation 2 1
4 Double Entry book keeping system 2 2
 Rules of debit and credit and Chart of accounts
 Books of prime entry
 Ledgers
 Trial balance
B Adjustments including corrections of errors
1 Allowance for bad debts and write off 2 1
2 Prepayments and accruals 2 1
3 Bank reconciliation and related adjustments 2 2
4 Correction of errors in record keeping 2 2
C Preparation of financial statements and partnership records
1 IAS 1: Preparation of financial statements 2 2
 Statement of financial position (items to be shown on the face)
 Statement of Comprehensive Income (items to be shown on the face)
2 Preparation of partnership account 2 2
D Inventories & Property, Plant and equipment
1 IAS 2: Inventories 2 2
2 IAS 16: Property, plant and equipment (other than disclosure and 2 2
revaluation)

*Testing Level and assessment of contents of earlier stages of qualification

a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8 marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a maximum limit of 35 marks in aggregate in an
attempt.

EDUCATION & TRAINING SCHEME 2013 25

 CAF-2
CERTIFICATE IN ACCOUNTING AND FINANCE
INTRODUCTION TO ECONOMICS AND FINANCE

Objective
To enable candidates to equip themselves with the fundamental concepts of economics and finance needed
as foundation for higher studies of finance.

Learning Outcome
The candidate will be able to:
1 understand the nature of micro-economics and its basic concepts
2 understand the nature of macro-economics and its relation with the measurement of economic
growth
3 understand how the balance of payments of a country is worked out
4 understand the nature of banking systems
5 understand the basic function of financial markets.

Grid Weightage
Concepts of economics 5-10
Microeconomics 25-35
Macroeconomics 25-35
Introduction to banking system, financial markets and international trade 25-35
Total 100

Syllabus
Contents Proficiency
Ref
Level
A Concepts of economics
1 Fundamentals of Economics 1
2 Economic systems 1
B Microeconomics
1 Demand 2
2 Supply 2
3 Equilibrium of demand and supply 2
4 Elasticity of demand and supply 2
5 Utility analysis and indifference curve 2
6 Laws of production 2
7 Cost and revenue curves 2
8 Equilibrium of firm in short and long run under perfect competition, 2
monopoly, monopolistic competition and oligopoly

EDUCATION & TRAINING SCHEME 2013 26

 Syllabus
Contents Proficiency
Ref
Level

C Macroeconomics
1 Measurement of national income including knowledge of basic concepts 2
like GDP, GNP, NNP;
2 Consumption, saving and investment functions; 2
3 Multiplier and accelerator; 2
4 Growth and recession 2
5 Unemployment and inflation 2
6 Fiscal policy 2
7 Public and private finance 2
D Introduction to banking system, financial markets and international trade
a Banking system
1 Types of banks and financial institutions 1
2 Money and its value 1
3 Monetary policy 1
b Financial instruments and market-Meaning
1 Money market 1
2 Capital markets. 1
3 Derivative market 1
c International trade
1 Balance of trade and payment 2

EDUCATION & TRAINING SCHEME 2013 27

 CAF-3

CERTIFICATE IN ACCOUNTING AND FINANCE

*BUSINESS LAW

Objective
To give students an understanding of the legal system and laws relating to Contract Act, Partnership Act,
Negotiable Instruments Act, Companies Act and Securities Act.

Learning Outcome
The candidate will be able to demonstrate:
1 basic knowledge of the legal environment
2 comprehension of laws governing contracts, partnership and negotiable instruments
3 knowledge of the legal terminologies of company law and the basics of company incorporation
4 familiarity with the provisions governing the prospectus and shares
5 knowledge of the management of companies
6 familiarity with provisions relating to investment by companies, accounts and dividend

Grid Weightage
Introduction to legal system 4-6
Mercantile law
Contract Act, 1872 20-30
Partnership Act, 1932 10-15
Negotiable Instruments Act, 1881 5-10
50
Companies Act, 2017 and Securities Act, 2015
Preliminary and incorporation 5-10
Prospectus and share capital etc. 5-10
Management, administration and disclosure of interest 15-25
Investments, accounts and dividend etc. 10-20
Total 50

Note: * Syllabus has been revised in 324th meeting of the Council held on February 29, 2020

EDUCATION & TRAINING SCHEME 2013 28

Syllabus Proficiency Testing Level
Contents
Ref Level
A Introduction to the Legal System
1 Introduction to the law and its types (Civil and Criminal law) 1 1

2 Introduction to the Process of legislation in Pakistan 1 1

B Mercantile law
a Contract Act, 1872
1 Introduction to the Law of Contract 2 1
2 Offer and acceptance 2 1
3 Capacity of Parties 2 1
4 Consideration 2 1
5 Free consent 2 1
6 Legality of object and consideration and agreements opposed to 2 1
public policy
7 Void agreement 2 1
8 Contingent contract 2 1
9 Quasi contract 2 1
10 Performance of a contract 2 1
11 Discharge of a contract 2 1
12 Remedies for breach of contract 2 1
13 Indemnity and guarantee 2 1
14 Pledge 2 1
15 Agency 2 1
b Partnership Act, 1932
1 Chapter I – Preliminary 2 1
2 Chapter II - The nature of partnership 2 1
3 Chapter III - Relations of partners to one another 2 1
4 Chapter IV - Relations of partners to third parties 2 1
c Negotiable Instruments Act, 1881
1 Notes, bills and cheques (Section 4 to 15) 1 1
2 Provisions relating to cheques (Section 122A to 131C) 2 1
C Companies Act, 2017 and Securities Act, 2015
a Preliminary and incorporation
1 Definitions (Section 2 and 118 of Companies Act, 2017) 1 1
2 Powers and functions of the Commission (Section 7 of Companies 1 1
Act, 2017)
3 Provisions with respect to names of companies/its change 2 1
(Section 10 to 13 of Companies Act, 2017)
4 Registration of memorandum and articles of association (Section 2 1
16 to 18 and 36 to 39 of Companies Act, 2017)
5 Business and objects of a company (section 26 of Companies Act, 1 1
2017)

EDUCATION & TRAINING SCHEME 2013 29

Syllabus Testing Level
Contents Proficiency Level
Ref
6 Memorandum of association (Section 27 to 35, 40 and 41 of 2 1
Companies Act, 2017)
7 Association not for profit (Section 42 and 43 of Companies 1 1
Act, 2017)
b Prospectus and share capital
1 Prospectus 1 1
(Section 87(2),(4),(5),(6),(7), 88(1-8), 90 to 93 of the Securities
Act, 2015)
(Section 57 of Companies Acts, 2017)
2 Share capital (Section 58 to 62 and 85 of Companies Act, 1 1
2017)
c Management, administration and disclosure of interest
1 Commencement of business by a public company (Section 19 1 1
and 20 of Companies Act, 2017)
2 Registered office, publication of names etc. (Section 21, 22, 2 1
24, 25 of Companies Act, 2017)
3 Meeting and proceedings (Section 131 to 147 and 149 to 152 1 1
of Companies Act, 2017)
4 Appointment and Removal of Directors and Disqualification 1 1
by the Commission (Section 153 to 165, 167,168, 170 to 171
,174 and 176 to 185 of Companies Act, 2017)
5 Chief executive (Section 186 to 191 of Companies Act, 2017) 1 1
6 Chairman (Section 192 of Companies Act, 2017) 1 1
7 Secretary (Section 194 of Companies Act, 2017) 1 1
8 Share registrar (Section 195 of Companies Act, 2017) 1 1
9 Appointment of sole purchase / sale agents (Section 196 of 1 1
Companies Act, 2017)
10 Disclosure of interest by directors; interest of other officers 1 1
etc. and interested director not to participate or vote in
proceedings of directors (Section 205 to 207 of Companies
Act, 2017)
d Investments, accounts and dividends, etc.
1 Investment in associated companies and undertakings 2 1
(Section 199 of Companies Acts, 2017)
2 Investment of companies to be held in its own name (Section 1 1
200 of Companies Acts, 2017)
3 Accounts of companies and directors’ report (Section 220, 1 1
223, 226, 227, 232 and 233 of Companies Act, 2017)
4 Quarterly financial statements of listed companies (Section 1 1
237 of Companies Act, 2017)
5 Dividends and manner and time of payment thereof (Section 1 1
240 to 243 of Companies Act, 2017)

EDUCATION & TRAINING SCHEME 2013 30

 CAF-4

CERTIFICATE IN ACCOUNTING AND FINANCE

BUSINESS MANAGEMENT AND BEHAVIORAL STUDIES

Objective
To equip candidates with the fundamentals of management and behavioral studies.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 demonstrate an understanding of the nature of management concepts and approaches
2 show familiarity with the structure of business organizations, their culture and the change process
3 demonstrate an understanding of human behavior
4 demonstrate an understanding of the concepts of motivation
5 show familiarity with the nature and kinds of leadership
5a Demonstrate an understanding with group dynamics and effective teamwork
6 show familiarity with the nature and importance of negotiation and conflict resolution
7 demonstrate a basic understanding of IT based management information systems.

Grid Weightage
Management concepts 25-35
Organizational process 20-30
Individual behavior and motivation 20-30
Leadership, negotiation and conflicts 20-30
Management information system 15-25
Total 100

Syllabus
Contents Proficiency
Ref
Level
A Management concepts
1 Meaning 2
2 Functions 2
3 Classical approach 2
4 Behavioral approach 2
5 Management science approach 2
6 External factors – Competitors, suppliers, labour, customers 2
7 General environment - Political, legal, technological, economic, social 2
B Organizational process
1 Organizational structure - principles of organization, different ways of 2
structuring organization

EDUCATION & TRAINING SCHEME 2013 31

 Syllabus
Contents Proficiency
Ref
Level
2 Organizational change - nature of change process, resistance to change 2
3 Organizational culture - concept, dysfunctional aspect of culture 2
C Individual behavior and motivation
1 Perception 2
2 Attitude 2
3 Job satisfaction and stress 2
4 Maslow need hierarchy Model 2
5 Herzberg’s two-factor Theory 2
6 McClelland’s theory of needs 2
7 Goal setting 2
8 Management by objective 2
9 Self-efficacy 2
10 Reinforcement 2
11 Equity/organizational justice 2
12 Expectancy 2
D Leadership, negotiation and conflicts
1 Type of leadership 2
2 Theories of leadership 2
3 Roles, activities, skills of leaders 2
4 Group Dynamics and teamwork - types of groups, group formation, group 2
structure, individual in groups, team work
5 Negotiation skills 2
6 Conflict resolution 2
E Management information systems
1 General system concepts of information technology 1
2 IT-based transaction processing systems 1
3 IT-based financial reporting systems 1
4 IT-based order processing and inventory control systems 1
5 IT-based personnel systems 1
6 Integrated IT systems 1

EDUCATION & TRAINING SCHEME 2013 32

 CAF-5

CERTIFICATE IN ACCOUNTING AND FINANCE

*FINANCIAL ACCOUNTING AND REPORTING I

Objective
To provide candidates with an understanding of the fundamentals of accounting theory and basic financial
accounting with particular reference to international pronouncements.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 prepare statement of changes in equity and statement of cash flows (other than consolidated
statement of cash Flow) in accordance with specified international pronouncements
2 interpret and evaluate the financial statement with the help of ratio analysis
3 prepare income and expenditure account, accounts from incomplete records and manufacturing
account
4 understand the requirements for recognition and measurement of the elements of financial
statements and concepts of capital and capital maintenance
5 account for transactions related to property, plant and equipment in accordance with international
pronouncements
6 account for transactions related to government grants and provide disclosures for the same in
accordance with international pronouncements
7 account for transactions related to impairment of assets (other than cash generating units),
investment property and financing of assets in accordance with international pronouncements
8 understand the nature of revenue and account for the same in accordance with international
pronouncements

Grid Weighting

Preparation of financial statements in accordance with IFRS and its interpretations 20-30

Preparation of income and expenditure account, accounts from incomplete records and 25-35
manufacturing account

Other areas of IFRS 40-50

Total 100

Note: *Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.

EDUCATION & TRAINING SCHEME 2013 33

 Level
Syllabus Ref Contents
Proficiency Testing
A Preparation of financial statements in accordance with IFRS
and its interpretation
1 IAS 1 Preparation of financial statements (preparation of 2 1
statement of changes in equity only)
2 IAS 7 Preparation of statement of cash flows (other than 2 2
consolidated statement of cash flow)
3 Interpretation of financial statements and ratio analysis 2 2
including limitations of financial statement and ratio analysis
B Preparation of income & expenditure account, accounts from
incomplete records and manufacturing account
1 Accounting for non-profit organization / Income and 2 2
expenditure account
2 Preparation of accounts from incomplete records 2 2
3 Maintenance of factory ledger and related accounting entries 2 2
and preparation of manufacturing account.
C Other areas of IFRS
1 The conceptual framework for financial reporting 2 1
 Recognition and measurement of the elements of financial
statements
 Concepts of capital and capital maintenance
2 IAS 16 Property, plant and equipment (revaluation and 2 2
disclosure)
3 IAS 20 Accounting for government grants and disclosure of 2 1
government assistance
4 IAS 23 Borrowing Costs 2 1
5 IAS 36 Impairment of Assets (other than cash-generating units 2 1
CGU)
6 IAS 40 Investment Property (other than lease issues) 2 1
7 IFRS 15 Revenue from Contracts with Customers 2 2

*Testing Level and assessment of contents of earlier stages of qualification

a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8 marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a maximum limit of 35 marks in aggregate in an
attempt.

EDUCATION & TRAINING SCHEME 2013 34

 CAF-6
CERTIFICATE IN ACCOUNTING AND FINANCE
PRINCIPLES OF TAXATION

Objective
To provide basic knowledge in the understanding of objectives of taxation and core areas of Income Tax
Ordinance, 2001, Income Tax Rules 2002 and Sales Tax Act 1990 and Sales Tax Rules.

Learning Outcome
The candidate will be able to:
1 understand the objective of levy of taxation, and its basic concepts
2 understand the system of taxation in Pakistan
3 understand the historical background of taxation in Pakistan
4 understand constitutional provisions of taxation in Pakistan
5 understand and explain the basic ethics of taxation
6 understand and explain provisions of Income Tax law mainly relevant to individuals and association
of persons
7 understand and explain Sales Tax law relevant to operational level tasks.

Grid Weightage
Objective, system and historical background, constitutional provisions and ethics 8-12
Income tax 60-70
Sales tax 20-30
Total 100

Syllabus
Contents Proficiency
Ref
Level
Objective, system and historical background, constitutional provisions
A
and ethics
a Basic concepts of taxation
1 Objectives 1
2 Basic concept 1
3 System of taxation in Pakistan 1
(Income Tax, Sales Tax, Federal Excise Tax, Capital Value Tax, Customs)

4 Historical background 1
b Constitutional provisions
1 Federal financial procedures 1
(Article 78 to 88 of the Constitution of Pakistan)
2 Provincial financial procedures 1
(Article 118 to 127 of the Constitution of Pakistan)
3 Distribution of revenues between Federation and the provinces (Article
160 to 165A of the Constitution of Pakistan)

4 Federal legislative lists relating to revenue generating measures (related

part of Fourth Schedule to the Constitution of Pakistan)

EDUCATION & TRAINING SCHEME 2013 35

 Syllabus
Contents Proficiency
Ref
Level
c Ethics
1 Ethics for tax legislation 2
2 Ethics for taxpayers and tax practitioners 2
3 Ethics for tax implementing authorities 2
4 Tax evasion and avoidance 2
B Income Tax
1 Chapter I – Preliminary (concepts of terms defined section 2 sub-section 1
1, 5, 5A, 6, 7, 9, 10, 11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C, 36, 37, 38,
41, 44A, 46, 47, 49, 50, 51, 52, 53, 68)
2 Chapter II – Charge of tax (excluding section 4B, 5A, 7A) 2
3 Chapter III – Tax on Taxable income (Excluding Section 29A, 30, 31, 36, 2
49, 57A, 59AA, 59B, 65C, 65D and 65E)
4 Chapter IV – (Part I, II and III) – Common rules (Excluding Sections 78 and 1
79)
5 Chapter V Part I – Central concepts 2
6 Chapter V Part II Div I and II – Individuals 2
7 Chapter V Part III and Part VA – Association of persons 2
8 Chapter VII Part II – Taxation of foreign-source income of residents 2
9 Chapter IX Minimum Tax (Section 113) 2
10 Chapter X Part I – Returns 2
11 Chapter X Part II – Assessments 1
12 Chapter X Part III – Appeals 1
13 Chapter X Part VIII – Records, Information Collection and Audit 2
(Section174 and 177)
14 The Income Tax Rules related to the above chapters of the Income Tax 1
Ordinance 2001 shall also be examined
15 First and Second Schedule attached to the Income Tax Ordinance 2001 2
C Sales Tax
a Sales Tax Act 1990
1 Chapter I – Preliminary (concepts of terms defined Section 2 sub-sections 2
3, 5AA, 9, 11, 14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33, 35, 39, 40, 41,
43, 44, 46)
2 Chapter II – Scope and payment of tax 2
3 Chapter III – Registration 2
4 Chapter IV – Book keeping and invoicing requirements 2
5 Chapter V – Returns 2
b Sales Tax Rules, 2006
1 Chapter I – Registration, Compulsory registration and De-registration 2
2 Chapter II – Filing of return 2
3 Chapter III – Credit and Debit And Destruction of Goods 2
4 Chapter IV – Apportionment of Input Tax 2

EDUCATION & TRAINING SCHEME 2013 36

 CAF-7
CERTIFICATE IN ACCOUNTING AND FINANCE
*FINANCIAL ACCOUNTING AND REPORTING II

Objective
To broaden the knowledge base of basic accounting acquired in earlier modules with emphasis on
International Financial Reporting Standards.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 prepare financial statements in accordance with the relevant law of the country and in compliance
with the reporting requirements of the international pronouncements
2 account for transactions relating to non-current assets and operating segment
3 understand the implication of contingencies; changes in accounting policies, estimates and; errors,
events occurring after reporting period and changes in foreign exchange rates
4 account for transactions relating to taxation
5 demonstrate knowledge of basic ethical issues in preparation and reporting of financial information

Grid Weighting

Preparation of financial statements in accordance with the Companies Act, 2017 and 25-35
IFRSs
Accounting for non-current assets 30-40
Ethics and other areas of IFRS 30-40
Total 100

Note: * Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.

EDUCATION & TRAINING SCHEME 2013 37

Syllabus Level
Contents
Ref Proficiency Testing
A Preparation of Financial Statements in accordance with the Companies
Act 2017 and IFRS
1 Preparation of financial statements of limited companies in line with the 2 2
requirement of the Companies Act, 2017 and International Financial
Reporting Standards (excluding liquidations, reconstructions and
mergers)
2 Preparation of consolidated financial statements (one subsidiary) 2 2
 IFRS 3 Business combinations (goodwill and cost of investment)
 IFRS 10 Consolidated financial statements (Preparation of
consolidated statements of financial position and comprehensive
income)
 IAS 28 Investment in associates and joint venture (Equity method
and test of one associate)
3 Accounting policies, changes in accounting estimates; and errors (IAS-8) 2 1
B Accounting for non-current Assets
1 IFRS 9 Classification, recognition and measurement of financial assets 1 1
and liabilities Other than derivatives -Financial Instruments
2 IFRS 16 Leases (Excluding modification, sale and lease back and 2 2
reassessment)
3 IAS 38 Intangible assets Recognition, de-recognition, measurement, 2 2
amortization and measurement after recognition of non-current assets
(including SIC 32 Intangible Assets – Web Site Costs)
4 IAS 41 Agriculture 2 1
C Ethics and other areas of IFRS

1 Ethics 2 1
 Fundamental principles (sections 100 to 115 of the Code of Ethics for
Chartered Accountants revised 2019)
 An understanding of ethics relating to preparation and reporting of
financial information (Section 220 of Code of Ethics for Chartered
Accountants revised 2019)
2 IFRS 8 Operating Segment 2 1
3 Events occurring after the reporting period (IAS-10) 2 1
4 IAS 37 Provisions, contingent liabilities and contingent assets (including 2 2
IFRIC 1 changes in existing decommissioning, restoration and similar
liabilities)
5 IAS 12 Income Taxes (other than Business combination) 2 2

6 IAS 21 The effects of changes in foreign exchange rates (foreign 2 1

exchange transactions)

*Testing Level and assessment of contents of earlier stages of qualification

a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8 marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a maximum limit of 35 marks in aggregate in an
attempt.

EDUCATION & TRAINING SCHEME 2013 38

 CAF-8
CERTIFICATE IN ACCOUNTING AND FINANCE
COST AND MANAGEMENT ACCOUNTING

Objective
To equip candidates with techniques of cost accounting to provide a knowledge base for decision making
skills.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 establish the costs associated with the production of products and provision of services
2 demonstrate an understanding of different costing system
3 prepare various types of forecasts and budgets
4 apply the concepts of costing in the decision making process
5 demonstrate a functional knowledge of financial instruments
6 apply concept of time value of money
7 understand the concepts of sustainability reporting.

Grid Weightage
Costs associated with the production 15-20
Costing system 25-35
Budget and budgetary controls 35-45
Financial instruments, Time value of money and Sustainability reporting 20-30
Total 100

Syllabus
Contents Proficiency
Ref
Level
A Costs associated with production
1 Basis of valuation - FIFO, weighted average, lower of cost and net 2
realizable value
2 Economic Order Quantity 2
3 Safety stock 2
4 Re-order level 2
5 Manufacturing expenses - actual and applied 2
6 Over or under absorbed overhead 2
7 Production and service departments 2
8 Apportionment, allocation and absorption of service departments› 2
overheads to production
9 Labour Costing 2

EDUCATION & TRAINING SCHEME 2013 39

 Syllabus
Contents Proficiency
Ref
Level
B Costing systems
1 Marginal costing 2
2 Absorption costing 2
3 Manufacturing cost accounting cycle 2
4 Job order costing 2
5 Process costing 2
6 Treatment of Joint and By-Products 2
7 Cost of services rendered 2
8 Standard costing 2
9 Variance analysis-material, labour and overhead 2
10 Target costing 2
C Budget, budgetary controls and decision making
1 Planning, forecasting and budgeting of sales, cost and profit 2
2 Opportunity cost 2
3 Relevant cost 2
4 Breakeven analysis 2
5 Make or buy decisions 2
6 Pricing for special orders 2
7 Further processing decisions 2
D Financial instruments (basic functions), Time value of money and
Sustainability reporting
1 Business Finance: Shares, debentures, bonds, futures, options, cap, 1
floor, collar, swaps, forward
2 Computation and usefulness of net present value and internal rate of 1
return
3 An introduction to sustainability reporting 1

EDUCATION & TRAINING SCHEME 2013 40

 CAF-9
CERTIFICATE IN ACCOUNTING AND FINANCE
AUDIT AND ASSURANCE

Objective
To acquire knowledge of theory, skill, techniques of auditing and to enable the students to understand
International Standards on Auditing, Assurance and Ethics.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 demonstrate knowledge of general concepts governing an audit
demonstrate working knowledge in respect of performance of simple audit procedures and
2
understand the audit report requirement under the Companies Act, 2017
understand the requirement and application guidelines relating to some of the specific areas of
3
audit procedures including external confirmation, review of subsequent event etc.
4 comprehend nature of engagements of review of interim financial statements
5 demonstrate familiarity with computer programming and IT controls relevant to financial reporting
6 respond on audit matters in the light of fundamental principles given in the Code of Ethics.

Grid Weightage
General concepts and principles of audit 15-20
Performance of audit and reporting 25-35
Specific areas 20-25
Computer programming and IT controls 10-15
Professional Ethics 10-15
Total 100

Syllabus
Contents Proficiency
Ref
Level
A General concepts and principles of audit
1 Introduction to International Federation of Accountants 1
2 Introduction to international auditing and assurance standard setting 1
body
3 Objective and general principles governing an audit (ISA 200) 2
4 Responsibility for the financial statements 2
5 Auditors responsibility to consider fraud (ISA 240) 2
6 Legal consideration relating to appointment and removal of auditors 2
(sections 246 to 253 of the Companies Act, 2017)
7 Terms of Audit engagements (ISA 210) 2
B Performance of audit and reporting
1 Planning an audit (ISA 300) 2
2 Assessment of audit risks (ISA 315 and 330) 2

EDUCATION & TRAINING SCHEME 2013 41

 Syllabus
Contents Proficiency
Ref
Level
3 Audit materiality (ISA 320) 2
4 Audit evidence (ISA 500) 2
5 Audit sampling (ISA 530) 2
6 Substantive procedures (ISA 330) 2
7 Tests of controls (ISA 330) 2
8 Analytical procedures (ISA 520) 2
9 Documentation (ISA 230) 2
10 Audit opinion and form of audit report under International Standards on 2
Auditing and under the Companies Act, 2017 and Going Concern (ISA-570
Revised)
C Specific areas
1 External confirmations (ISA 505) 2
2 Subsequent events (ISA 560) 2
3 Written representation (ISA 580) 2
4 Consideration of related parties (ISA 550) 2
5 Using the work of internal auditors and auditor’s experts (ISA 610 and ISA 2
620)
6 Engagement to review financial statements 2400 2
D Computer programming and IT controls
1 Benefits and limitations of flowcharts 1
2 Types of flowcharts 1
3 General and application controls in IT systems/environment 2
4 Preventative, detective and corrective controls 2
5 Logical access controls 2
E Professional ethics
1 Fundamental principles (sections 100 to 120 of the Code of Ethics for 2
Chartered Accountants revised 2019)
2 Client and engagement acceptance (section 320 and 330 of the Code of 2
Ethics for Chartered Accountants revised 2019)

EDUCATION & TRAINING SCHEME 2013 42

 PCSC

CERTIFICATE IN ACCOUNTING AND FINANCE

PRESENTATION AND COMMUNICATION SKILLS COURSE
50 Hours Course to be completed in any RAET or recognized institutes
Learning outcomes of the Course
S. No. Particulars Weightage
1 Intellectual
Demonstrate openness and objectivity in giving and receiving
10
feedback
2 Interpersonal and Communication
Present information in written and numeric form clearly. Depict
30
awareness of clear communication
Demonstrate listening skills and understands given instructions 10
3 Professional skepticism and professional judgment
Probe and question the relevant facts 10
4* Write Essay on topics generally known to a school leaver 15
5* Write meaningful and effective Précis 10
Write business letter on a well explained scenario
6* 15
Write short business report on a well explained scenario
Total 100

Methodology
Method Numbers Hours
*Classroom lectures on presentation, group discussion and
5 10
writing skills and practice
Formal presentations before a group:
• Attended 12 6.0
• Presented 6 3.0
• Facilitators feedback on presentations 2 6.0
Group Discussion on pre-seen and well prepared topics 4 8.0
*Essay writing on unseen topics 3 3.0
*Précis writing 4 3.0
*Write business letter on a well explained scenario 6 3.0
*Write short business report on a well explained scenario 3 3.0
*Feedback of trainer on essay, précis, letters and short business
5.0
reports written by students
50.0

Note: *Syllabus has been revised in 264th meeting of the Council held on May 8 and 9, 2015. The Institute
shall conduct a Writing Skills Test of I hour 15 minutes duration that shall carry 40 marks. Subject to a
transition under Directive 1.01, passing of the Test shall be a condition for issuance of Course Completion
Certificate.

EDUCATION & TRAINING SCHEME 2013 43

 Proficiency GWE 01
CERTIFICATE IN ACCOUNTING AND FINANCE
*GATEWAY EXAMINATIONS
ACCOUNTING & REPORTING AND COST AND MANAGEMENT ACCOUNTING

Grid Weightage

Accounting and reporting

Preparation of financial statements in accordance with the Companies Act, 2017 and 10-20
IFRSs including preparation of accounts from incomplete records

Preparation of consolidated financial statements and Accounting policies, changes in 15-25

accounting estimates; and errors
Other areas of IFRS 20-30

Cost and management accounting

Cost, costing system and cost behavior 15-25

Decision making and financial management 15-25

Total 100

Level
Contents
Proficiency Testing
Preparation of financial statements in accordance with the Companies Act, 2017
and IFRSs including preparation of accounts from incomplete records
Preparation of financial statements of limited companies in line with the 2 2
requirement of the Companies Act, 2017 and International Financial Reporting
Standards (excluding liquidations reconstructions and mergers)
Preparation of accounts from incomplete records 2 2
Preparation of consolidated financial statements and Accounting policies, changes
in accounting estimates; and errors
Preparation of consolidated financial statements (one subsidiary) 2 2
 IFRS 3 Business combinations (goodwill and cost of investment)
 IFRS 10 Consolidated financial statements (Preparation of consolidated
statements of financial position and comprehensive income)
 IAS 28 Investment in associates and joint venture (Equity method and test of
one associate)
Accounting policies, changes in accounting estimates; and errors (IAS-8) 2 2
Other areas of IFRS
IFRS 8 Operating Segment 2 1
IFRS 9 Classification, recognition and measurement of financial assets and liabilities 1 1
Other than derivatives -Financial Instruments
IFRS 16 Leases (Excluding modification, sale and lease back and reassessment) 2 2

Note: *Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.

EDUCATION & TRAINING SCHEME 2013 44

 Level
Contents
Proficiency Testing
Events occurring after the reporting period (IAS-10) 2 1
IAS 12 Income Taxes (other than Business combination) 2 2
IAS 21 The effects of changes in foreign exchange rates (foreign exchange 2 1
transactions)
IAS 37 Provisions, contingent liabilities and contingent assets (including IFRIC 1 2 2
changes in existing decommissioning, restoration and similar liabilities)
IAS 38 Intangible assets Recognition, de-recognition, measurement, amortization 2 2
and measurement after recognition of non-current assets (including SIC 32
Intangible Assets – Web Site Costs)
IAS 41 Agriculture 2 1

COST AND MANAGEMENT ACCOUNTING Proficiency

Level
Inventory, Costing system and cost behaviour 2
Economic Order Quantity 2
Safety stock 2
Re-order level 2
Manufacturing expenses -actual and applied 2
Over or under absorbed overhead 2
Costing systems
Marginal costing 2
Absorption costing 2
Job order costing 2
Process costing 2
Treatment of Joint and By-Products 2
Standard costing 2
Relevant cost
Variance analysis-material, labour and overhead 2
Decision making
Breakeven analysis 2
Make or buy decisions 2
Pricing for special orders 2
Further processing decisions 2
Utilization of spare capacity 2
Time value of money
Computation of net present value and internal rate of return 2

EDUCATION & TRAINING SCHEME 2013 45

 GWE 02
CERTIFICATE IN ACCOUNTING AND FINANCE
*GATEWAY EXAMINATIONS
AUDIT & ASSURANCE AND TAXATION
Grid Weightage
Audit and assurance
General concepts and principles of audit; Performance of audit and reporting 25
Specific areas and control systems 20
Professional ethics 5
Taxation
Income tax 35
Sales tax 15

Total 100

AUDIT AND ASSURANCE Proficiency

Level
Objective and general principal governing an audit (ISA 200) 2
Responsibility for the financial statements 2
Auditors responsibility to consider fraud (ISA 240) 1
Terms of Audit engagements (ISA 210) 2
Performance of audit and reporting
Planning an audit (ISA 300) 2
Assessment of audit risks (ISA 315) 2
Audit materiality (ISA 320) 2
Audit evidence (ISA 500) 2
Audit sampling (ISA 530) 2
Substantive procedures (ISA 330) 2
Tests of controls (ISA 330) 2
Analytical procedures (ISA 520) 2
Documentation (ISA 230) 2
Understanding of audit opinion and form of audit report under the Companies Act, 2017
2

Specific areas
External confirmations (ISA 505) 2
Subsequent events (ISA 560) 2
Written representation (ISA 580) 2
Consideration of related parties (ISA 550) 2
Using the work of component auditors, internal audits and auditor’s experts (ISA 610
2
and ISA 620)
Review of interim financial statements by the independent auditor (ISRE 2400) 2
IT Controls
Control design 1

Note: *Syllabus has been revised in 260th meeting of the Council held on January 8, 2015.

EDUCATION & TRAINING SCHEME 2013 46

Contents Proficiency
Level
General controls 2
Preventative, detective and corrective controls 2
Audit trails 2
Professional ethics
Fundamental principles (sections 100 to 120 of the Code of Ethics for Chartered
2
Accountants revised 2019)
Client and engagement acceptance (section 320 and 330 of the Code of Ethics for
2
Chartered Accountants revised 2019)
TAXATION
INCOME TAX
Chapter I – Preliminary (concepts of terms defined in section 2 sub-section 1, 5, 5A, 6, 7,
9, 10, 11A, 19, 19C, 20, 21, 22, 23, 29, 29A, 29C, 36, 37, 38, 41, 44A, 46, 47, 49, 50, 51, 1
52, 53, 68)
Chapter III – Tax on Taxable income (Excluding Section 29A, 30, 31, 36, 49, 57A, 59AA, 2
59B, 65C, 65D and 65E)
Chapter IV – (Part I, II and III) – Common rules (Excluding Sections 78 and 79) 1
Chapter V Part I – Central concepts 2
Chapter V Part II Div I and II – Individuals (Excluding Section 88A) 2
Chapter V Part III – Association of persons 2
Chapter VII Part II – Taxation of foreign-source income of residents 2
Chapter x Part I – Returns 2
Chapter x Part II – Assessments 1
Chapter x Part III – Appeals 1
Chapter x Part VIII – Records, Information Collection and Audit (Section174 and 177) 2
The Income Tax Rules related to the above chapters of the Income Tax Ordinance 2001
1
shall also be examined
First and Second Schedule attached to the Income Tax Ordinance 2001 2
Sales Tax
Sales Tax Act 1990 2
Chapter I – Preliminary (concepts of terms defined Section 2 sub-sections 3, 5AA, 9, 11,
2
14, 16, 17, 20, 21, 22A, 25, 27, 28, 29A, 33, 35, 39, 40, 41, 43, 44, 46)
Chapter II – Scope and payment of tax 2
Chapter III – Registration 2
Chapter IV – Book keeping and invoicing requirements 2
Chapter V – Returns 2
SalesTaxRules,2006
Chapter I – Registration, Compulsory registration and De-registration 2
Chapter II – Filing of return 2
Chapter III – Credit and Debit Notes 2
Chapter IV – Apportionment of Input Tax 2

EDUCATION & TRAINING SCHEME 2013 47

 PVEA

*PROFESSIONAL VALUES, ETHICS AND ATTIUDE

Learning outcomes of the Course

Learning Outcome
Learning outcomes specified in this course are fully aligned with the requirements of International Education
Standards issued by IAESB of IFAC.

S. No. Contents
1 Part I Understanding ethics and human behaviors
Explain the nature of ethics

Explain the advantages and disadvantages of rules-based and principles-based approaches to

ethics
Explain the role of ethics in relation to business and good governance

Explain the role of ethics within the profession and in relation to the concept of social
responsibility
Explain the different models of ethical decision making
2 Part II Understanding models of ethical decision making
Apply the fundamental ethical principles of integrity, objectivity, professional competence and
due care, confidentiality, and professional behavior to ethical dilemmas and determine an
appropriate resolution
Apply the relevant ethical requirements to professional behavior and compliance with
standards
Analyze the interrelationship of ethics and law, including the relationship between laws,
regulations, and the public interest
Analyze the consequences of unethical behavior to the individual, to the profession, and to
society at large
3 Part III Reflective Activities
Exercise professional judgment
Act in an ethical manner that is in the public interest

*325th meeting of the Council held on April 8, 2020.

EDUCATION & TRAINING SCHEME 2013 48

 CFAP – 1
CERTIFIED FINANCE AND ACCOUNTING PROFESSIONAL
*ADVANCED ACCOUNTING AND FINANCIAL REPORTING
Objective
To develop in-depth understanding and application abilities of the requirements of the international
pronouncements, the Companies Act, 2017, and other applicable regulatory requirements in respect of
presentation of financial statements and financial reporting.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 prepare financial statements in accordance with the international pronouncements and under the
Companies Act, 2017
2 evaluate and analyze the financial data for arriving at firm decision about the accounting treatment
and reporting of the same
3 prepare financial statements of small and medium sized entities in accordance with the Companies
Act, 2017 and applicable reporting framework
4 prepare financial statements of retirement benefit funds in accordance with the international
pronouncements
5 understand reporting requirement under the laws specific to insurance, banking companies and
mutual funds.

Grid Weightage
Group financial statements 25 – 35
Financial reporting 50 – 60
Specialized Financial Statements and Areas 10 – 20
Total 100

Syllabus Contents Level

Ref Proficiency Testing
A Group financial statements
1 Preparation of group financial statements 3 3
 IFRS 3 Business Combinations
 IFRS 10 Consolidated Financial Statements
 IFRS 11 Joint Arrangements
 IFRS 12 Disclosure of Interests in Other Entities
 IAS 27 Separate Financial Statements
 IAS 28 Investments in Associates and Joint Ventures
2 IAS 7 Preparation of statement of cash flows (only Consolidated) 3 2
3 IAS 21 The Effects of Changes in Foreign Exchange Rates (including 3 1
IFRIC 22)

Note: *Syllabus has been revised in 302nd meeting of the Council held on September 5-6, 2018.

EDUCATION & TRAINING SCHEME 2013 49

 Syllabus Contents Level
Ref Proficiency Testing
B Financial reporting
1 Financial instruments 3 2
 IFRS 7 Financial Instruments: Disclosures
 IFRS 9 Financial Instruments (including IFRIC 16 & 19)
 IAS 32 Financial Instruments: Presentation
2 Employees benefit and share based payments 3 2
 IFRS 2 Share-based Payment
 IAS 19 Employee Benefits (including IFRIC 14)
3 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations 3 1
4 IFRS 13 Fair Value Measurement 3 1
5 IFRS 15 Revenue From Contracts with Customers 3 2
6 IFRS 16 Leases 3 2
7 IAS 12 Income Taxes (including SIC 25) 3 2
8 IAS 24 Related Party Disclosures 3 1
9 IAS 33 Earnings per Share 3 2
10 IAS 34 Interim Financial Reporting (including IFRIC 10) 3 1
11 IAS 36 Impairment of Assets 3 2
12 IAS 40 Investment Property 3 1
C Specialized Financial Statements and areas
1 Small and medium sized entities 1 1
2 Banks 1 1
3 Mutual funds 1 1
4 Insurance companies 1 1
5 IAS 26 Accounting and Reporting by Retirement Benefit Plans 3 1
6 Specialized area of IFRSs
 IFRS 1 First-time Adoption of International Financial Reporting
Standards
 IFRS 4 Insurance Contracts 1 1
 IFRS 6 Exploration for and evaluation of Mineral Resources
 IFRS 14 Regulatory Deferral Accounts
IAS 29 Financial Reporting in Hyperinflationary Economies (including
IFRIC 7)
7 Overview of Islamic Accounting Standard issued by ICAP 1 1
8 Overview of IPSASs and The Conceptual Framework for General 1 1
Purpose Financial Reporting by Public Sector
 IPSAS 1 Presentation of Financial Statements
 IPSAS Financial Reporting Under the Cash Basis of Accounting
*Testing Level and assessment of contents of earlier stages of qualification

a. Technical contents assessed at earlier stages of qualification will be tested in later stages with a limit of 8 marks per topic in an attempt.
b. The contents of syllabus may classify topics at three testing levels from 1 to 3 with a maximum limit per question as 8, 20 and 25, respectively.
c. The overall marks of earlier stage topics and testing level-1 topics, as mentioned above, will have a maximum limit of 35 marks in aggregate in an
attempt.

EDUCATION & TRAINING SCHEME 2013 50

 CFAP – 2
CERTIFIED FINANCE AND ACCOUNTING PROFESSIONAL
CORPORATE LAWS

Objective
To develop in-depth knowledge, understanding and application skills of corporate laws most relevant in local
corporate environment in general and required for secretarial practices, in particular.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 identify, evaluate and analyze different situations arising in performing the professional duties
with reference to applicable corporate laws
2 perform secretarial practices
3 demonstrate working knowledge of meaning, formation and working of non-banking financial
institutes
4 demonstrate awareness of legal provisions in respect of compromise, arrangements, amalgamation
and reconstruction of companies, winding up of limited and unregistered companies
5 demonstrate awareness of laws, rules and regulations related to banking companies, insurance
companies, securities, issue of capital, listing, modaraba, competition, anti-money laundering and
foreign exchange
6 recognize ethical and professional issues and act appropriately.

*Grid Weightage
Companies Act, 2017 (Section 1 to 275) and relevant rules 30-40
Mediation, Arbitration, Arrangement ,Reconstruction, Management, Winding up and 15-25
other related matters under Companies Act, 2017and Non-Banking Finance Companies
Other laws and regulations, governance, ethics and professionalism 40-50
Total 100

Syllabus Proficiency
Contents
Ref Level
A Companies Act, 2017 (Section 1 to 275) and relevant rules

1 Companies Act, 2017 (Section 1 to 275) 3

2 Companies (Postal Ballot) Regulations, 2018 2
3 First, Second and Third Schedules of the Companies Act, 2017 3
4 Listed Companies (Buy- Back of Shares) Regulations, 2019 3

5 Employees Contributory Fund (Investment in Listed Securities) 3

Regulations, 2018
6 Companies (Investment in Associated Companies or Associated 3
Undertakings) Regulations, 2017
7 Companies (Further Issue of Shares) Regulations, 2020 3

Note: *Grid has been revised in 310th meeting of the Council held on February 15, 2019.

EDUCATION & TRAINING SCHEME 2013 51

 B Mediation, Arbitration, Arrangement, Reconstruction, Management,
Winding up and other related matters under Companies Act, 2017 and
Non-Banking Finance Companies
a Non-Banking Finance Companies
1 Companies Ordinance, 1984 (Section 282A to 282M) 3
2 NBFC (Establishment and Regulation) Rules, 2003- Rules 1 to 7 3
3 The Non-banking Finance Companies and Notified Entities Regulations, 3
2008 (Regulation 2, 3, 9, 10, 10A, 15B, 16 to 18, and 25)

b Mediation, Arbitration, Arrangement and Reconstruction

1 Companies Act, 2017 (Section 276 to 292) 3

c Winding up and other matters

1 Companies Act, 2017 2
(293 to 302, 304 to 306, 315 to 321, 323, 325, 329, 334 to 342, 344 to
351, 353, 354, 356 to 392, 406, 407, 416 to 419, 424, 426 to 429, 432 to
447, 451 to 453, 464, 466 to 468, 471 to 473)

C Other laws and regulations, governance , ethics and professionalism

a Other laws and regulations
1 Securities Act, 2015 (Section 2, 63 to 65, and 87 to 131) and Relevant 2
Rules and Regulations made thereunder

2 Rules and Regulations related to prospectus and statement in lieu of 2

prospectus

3 Pakistan Stock Exchange Rule Book (Chapter 5) 2

4 Public Offering Regulations, 2017 2
 Chapter I [excluding 2 (i), (iii), (xvi), (xvii), (xxii), (xxiv), (xxv), (xxvii),
(xxix), (xxx), (xliii), (xliv), (xlvi), (xlvii), (xlviii), (liii), (liv), (lv), (lvi), (lvii)]
 Chapter II
 Chapter III
 Chapter IV
 Chapter V
 First Schedule

5 Listed Companies (Prohibition of Insider Trading) Guidelines 2

6 Central Depository Act, 1997 (Section 1 to 19) 2
7 Foreign Exchange Regulations Act, 1947 (Section 1 to 9 and 12) and 2
Foreign Exchange Manual of State Bank of Pakistan (Chapter 19 and 20)

8 Listed Companies (Substantial Acquisition of voting shares and 2

Takeovers) Regulations, 2017
9 Modaraba Companies and Modaraba (Floatation and Control) 2
Ordinance, 1980 (section 2, 4 to 23, 33, 37, 41 and 42 ) and Related
Modaraba Rules, 1981

EDUCATION & TRAINING SCHEME 2013 52

 Syllabus Proficiency
Contents
Ref Level
10 Competition Act, 2010 (Chapter I and II) 2
11 Insurance Ordinance, 2000 (Part I, II, III, IV, V and VI) 2
12 The Banking Companies Ordinance, 1962 (Part I, II, II-A & III) 2
13 Prudential Regulations for Corporate /Commercial Banking of SBP (PART 2
– A Definitions, Regulations R-1 to R-10)
14 Anti-money Laundering Act, 2010, Anti-money Laundering Regulations, 2
2015 (Regulations 4, 5, 7 and Appendix I and II)

b Governance, ethics and professionalism

1 Ethics as organizational culture (Merit, fairness, benevolence, 3
confidentiality)

2 Fiduciary duty of directors and corporate executives 3

3 Listed Companies (Code of Corporate Governance) Regulations, 2019 3
and Public Sector Companies (Corporate Governance) Rules, 2013

4 Dealing with conflict of interest situations and whistle blowing policy 3

EDUCATION & TRAINING SCHEME 2013 53

 CFAP – 3
CERTIFIED FINANCE AND ACCOUNTING PROFESSIONAL
BUSINESS MANAGEMENT AND STRATEGY

Objective
To develop competence of formulation and implementation of business strategies.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 prepare business vision and mission statements
analyze and assess external and internal environment and resources for the purposes of formulation
2
of business strategy
3 formulate business strategies and make strategic choices
4 prepare long term business objective and plans
5 manage human resources
6 participate in making decision on entity›s social responsibility
7 participate in development and implementation of marketing strategy
8 understand Supply Chain Management.

Grid Weightage
Formulation and implementation of strategy 35-40
Strategy and Management of information technology 15-20
Human Resource Management 15-20
Marketing and supply chain management 15-20
Corporate social responsibility and business ethics 15-20
Total 100

Syllabus
Contents Proficiency
Ref
Level
A Formulation and implementation of strategy
a Formulation of strategy
1 Development of business vision and mission 3
2 Developing strategic, tactical and operational level strategies 3
b Analysis
1 Porter’s Five Forces model 3
2 PESTEL analysis 3
3 Boston consulting group matrix 3
4 Competitor analysis 3
5 Competitive strategies of cost leadership and differentiation 3
6 Resource audit 3

EDUCATION & TRAINING SCHEME 2013 54

 Syllabus
Contents Proficiency
Ref
Level
7 Outsourcing 3
8 Value chain analysis 3
9 SWOT analysis 3
10 Gap analysis 3
11 Benchmarking 3
12 Future basing - Scenario planning 3
c Risk management
1 Categories of risk and risk identification tools 3
2 Analysis and documentation of risk 3
3 Strategies for managing risk 3
d Choices
1 Establishing long term objectives 3
2 Generating, evaluating and selecting strategies 3
e Implementation of strategy
1 Establishing policies 3
2 Resource allocation 3
3 Evaluation of strategies 3
4 Strategic controls – measurement 3
5 Strategic controls – evaluation 3
6 Strategic controls - revisiting strategies 3
7 Balance Scorecard 2
8 Key Performance Indicators 2
9 Business process re-engineering 3
10 Change management process 3
11 Project management-quality, cost and time 2
B Strategy and Management of information technology
1 Role of IT in collection of information, planning and decision making 3
2 Formulation of IT strategy 2
3 IT Control framework COBIT 2
4 IT Control activities 2
5 IT Control monitoring 3
C Human Resource Management
a Recruitment
1 The purpose and forms of personnel specifications in the recruitment of 3
personnel
2 Identifying competencies and other attributes required 3
3 Benefits and costs of new or additional personnel 3

EDUCATION & TRAINING SCHEME 2013 55

 Syllabus
Contents Proficiency
Ref
Level
4 Methods of recruitment 2
b Human resource development and working environment
1 Motivating and supporting employees 3
2 Training, education and development 3
3 Staff appraisal styles and the assessment of competence models 2
4 Incentives and rewards 2
5 Purpose and procedures of health , safety and security requirements 3
6 Conflict resolutions 3
7 Organization development 2
D Marketing and supply chain management
a Marketing
1 Marketing strategies, planning and implementing (including Service 2
Oriented Business)
2 Assessing the nature and size of the market using internal records, market 2
intelligence, market research
3 Product life cycle 3
4 Product positioning and branding strategies 2
5 Market segmentation strategies 2
6 Advertising and promotion strategies 3
7 Global marketing, opportunities and threats 2
8 Franchising, licensing, joint venture and alliances 3
9 World Trade Organization 2
b Supply chain management
1 Concept and process of procurement 2
2 Vendor development and management 2
3 Inventory Management, ware housing and logistics 2
4 Production management 2
E Corporate social responsibility and business ethics
1 The concept of sustainability and corporate social responsibility 3
2 Social influences of an entity’s strategy development 2
3 Corporate Social Responsibility as a non-financial performance indicator 3
4 Ethical behaviour and professionalism 3

EDUCATION & TRAINING SCHEME 2013 56

 CFAP – 4
CERTIFIED FINANCE AND ACCOUNTING PROFESSIONAL
BUSINESS FINANCE DECISIONS

Objective
To develop competence and abilities to analyze complex financial information for strategic financial decisions.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 utilize financial analysis techniques
2 ascertain value of securities and financial instruments
3 identify, document and manage the financial risks
4 evaluate and analyze merger, demerger, acquisitions and expansions and advise thereon
5 take production decisions, ascertain price, accept, reject and negotiate special orders
6 use management and costing tools to control cost of products and services.

Grid Weightage
Investment appraisal and decision making 40-60
Valuation 15-20
Risk management 15-20
Management controls 10-20
Total 100

Syllabus
Contents Proficiency
Ref
Level
A INVESTMENT APPRAISAL AND DECISION MAKING
a Cost of capital
1 Cost of equity, cost of debt and weighted average cost of capital (WACC) 3
2 Capital Asset Pricing Model (CAPM) 3
3 Arbitrage Pricing Theory (APT) 3
4 Bond’s return analysis - yield to maturity or yield to call etc. 3
b Investment Appraisal
1 Project analysis using NPV, APV, IRR, MIRR, EIRR, Profitability Index and 3
Payback (including the effect of inflation)
2 Project analysis using ratio analysis 3
3 Application of Monte Carlo simulation to investment appraisal 3
4 Sensitivity analysis 3
5 Portfolio analysis 3

EDUCATION & TRAINING SCHEME 2013 57

 Syllabus
Contents Proficiency
Ref
Level
6 Capital rationing 3
7 International investment appraisal 3
c Decision Making
1 Make or buy decisions 3
2 Pricing for special orders 3
3 Further processing decisions 3
4 Decision with limiting factors 3
5 Introduction to mathematical programming and linear programming, 3
formulation of problems, graphical solutions, limitations of linear
programming and shadow price concept. (excluding simplex method)
6 Dividend policy, optimal capital structure and MM theory 3
7 Decision tree 3
B VALUATION
1 Equity securities 3
2 Debt securities 3
3 Appraisals on business valuation, acquisitions, mergers, demergers, spin 3
off, spin out and new project including sensitivity analysis
4 Financial and capital structuring and its effects on business valuation - 3
Modigliani and Millar theory, Millar model, Hamada equation
C RISK MANAGEMENT
1 Hedging interest rate : Futures, Options, Swaps, Swaptions and Forward 3
agreement
2 Hedging Foreign Exchange : Currency futures, Swaps, Options, Forward, 3
Swaptions and Money Market hedge
3 Commodity and security: Forward and future contracts 3
D MANAGEMENT CONTROLS
1 Variance analysis 3
2 Transfer pricing 3
3 Working capital management 3
4 Inventory management - economic order quantity and inventory level 3
decisions
5 Debtor/creditor management - policies, financing, factoring, discount 3
6 Cash management - Liquidity, cash flow forecasting, short term 3
investments
7 Forecasting and budgeting 3

EDUCATION & TRAINING SCHEME 2013 58

 CFAP – 5
CERTIFIED FINANCE AND ACCOUNTING PROFESSIONAL
ADVANCED TAXATION

Objective
To develop capability to perform duties of a professional accountant or support tax consultant.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 develop expert knowledge of Income Tax, Sales Tax and Federal Excise Duty law in Pakistan
(excluding case laws)

*Grid Weightage
Income tax laws 50-60
Sales tax laws and Federal excise laws 35-40
Professional values, ethics and attitude 5-10
Total 100

Syllabus Contents Proficiency

Ref Level
A Income tax laws
1 The Income Tax Ordinance, 2001 3
2 Notifications, Rules, General orders and Circulars issued under the 3
Income Tax Ordinance, 2001 excluding specific double taxation
agreements
B Sales tax laws and Federal excise laws
1 The Sales Tax Act, 1990 3
2 The Provincial Sales Tax 3
3 The Islamabad Capital Territory (Tax on Services) Ordinance, 2001 3
4 Notifications, Rules, General orders and Circulars issued under the Sales 3
Tax Act, 1990
5 The Federal Excise Act, 2005 (Chapters I and II only) 2
6 Notifications, Rules, General orders and Circulars issued under the 2
Federal Excise Act, 2005 relevant to Chapters I and II only
C Professional values, ethics and attitude
1 Principle of fair tax legislation and tax administration 2
2 Ethics for tax payers and tax practitioners 3
3 Tax evasion and avoidance 3

*337th meeting of the Council held on January 30, 2021.

EDUCATION & TRAINING SCHEME 2013 59

 CFAP – 6
CERTIFIED FINANCE AND ACCOUNTING PROFESSIONAL
AUDIT, ASSURANCE AND RELATED SERVICES

Objective
To develop competence which is necessary for performing audit, assurance and other related services in
accordance with the international and local pronouncements.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 comprehend professional environment
2 perform assurance services in accordance with the international and local pronouncements
3 make professional judgment at all level of assurance and non assurance services
4 conclude and formulate opinion on complex matters of assurance services
consider and demonstrate professional attitude while performing assurance and non-assurance
5
services.

Grid Weightage
Performance of audit 45-55
Audit conclusion and reporting 20-30
Other assurance engagements and related services 10-15
Professional Ethics, Quality Control and current development 10-15
Total 100

Syllabus Proficiency
Contents Level
Ref.
A Performance of audit
a Performance of audit – General
1 Overall Objectives of the Independent Auditor and the Conduct of an 3
Audit in accordance with International Standards on Auditing
2 Initial engagements and opening balances 3
3 Agreeing the terms of Audit engagement 3
4 The planning and mobilization phase 3
5 Risk assessment procedures and response to risks 3
6 Internal Controls (including Test of controls) 3
7 Audit materiality 3
8 Sampling and other means of testing 3
9 Audit evidence(including Specific considerations for Selected Items) 3
10 Substantive tests (including Analytical Procedures) 3

EDUCATION & TRAINING SCHEME 2013 60

 Syllabus
Contents Proficiency
Ref.
Level
11 Responsibility to consider fraud 3
12 Evaluation of misstatements identified during the audit 3
13 Consideration of laws and regulations 3
14 External confirmations 3
15 Related Parties 3
16 Audit documentation 3
17 Communication with the management and those charged with 3
governance (including communication of deficiencies in internal controls)
18 Subsequent events 3
19 Management representation 3
b Performance of audit – Specific
1 Going Concern 3
2 Fair value measurements and accounting estimates 3
3 Entities using service organizations 3
4 Work of expert and internal auditor 3
5 Special consideration - Audit of group financial statements (including 3
work of component auditors)
B Audit conclusions and reporting
a Audit Report
1 Unmodified audit report 3
2 Modification in audit report 3
3 Emphasis of matter and other matters in audit report 3
4 Communicating key audit matters in the independent Auditor’s Report 3
5 Reporting consideration on comparative information 3
6 Reporting consideration on other information in document containing 3
financial statements
7 Assurance Reports on Controls at a Service Organization 3
8 Audit report under the Companies Act, 2017 3
b Audit and Reporting on Specialized Areas
1 Audit of special purpose financial statements prepared in accordance 3
with special purpose framework
2 Audit of single financial statements and specific elements, accounts or 3
items
3 Engagement to report on summary financial statements 3
4 Auditing Financial Instruments 2
5 Understanding of provisions related to audit and accounts under the
2
Banking Companies Ordinance 1962

EDUCATION & TRAINING SCHEME 2013 61

 Syllabus
Contents Proficiency
Ref.
Level

6 Understanding of provisions related to audit and accounts under the

2
Insurance Companies Ordinance 2000
Other assurance engagement and related services (Including Reporting
C
on relevant services)
a Other assurance engagement
1 Review Engagements 3
2 Assurance Engagements other than audits or review of historical financial 3
information
3 Examination of prospective financial statements 3
b Related services
1 Agreed-upon procedures 3
2 Compilation engagements 3
3 Assurance engagements to Report on the compilation of Pro Forma 3
Financial Information included in Prospectus
4 Services under the provisions of corporate laws 3
5 Services under the provisions of tax laws 3
D Professional Ethics, Quality Control and current development
1 Code of Ethics (revised 2019) issued by The Institute of Chartered 3
Accountants of Pakistan
2 Quality control – ISQC 1, ISA 220, quality control framework of ICAP,
3
Quality Assurance Board of ICAP
3 Acceptance and continuance of client including legal, professional and
3
ethical consideration relating to appointment and removal of auditor
4 Current development in auditing profession
Exposure draft issued by IAASB, Draft conceptual framework and Other 2
development projects of IAASB
5 Key elements that create an environment for audit quality 3

EDUCATION & TRAINING SCHEME 2013 62

 MSA-1
MULTI SUBJECT ASSESSMENTS
*FINANCIAL REPORTING AND ASSURANCE PROFESSIONAL COMPETENCE

Objective
To develop competence that is necessary to perform the roles of reporting and assurance professional in
accordance with the international and local pronouncements.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 analyze and evaluate separate and consolidated financial statements to be prepared in accordance
with the International and local pronouncements from accounting data of common commercial
entities
2 explain and advise on the requirements underlying the preparation and presentation of financial
statements
3 examine and evaluate financial and non-financial representations of profit and non- profit entities
for the purpose of issuing audit report
4 examine and evaluate financial and non-financial representations of profit and non- profit entities
for the purpose of issuing other assurance and non-assurance report
5 recognize ethical and professional issues and act appropriately.

***Grid Weightage
Financial accounting and reporting 50-65
Audit, assurance and related services 30-40
Company law and ethics (provisions relating to accounts and audit) 05-10
Total 100

Syllabus Proficiency
Contents
Ref. Level
A Financial accounting and reporting
1 Presentation of Financial Statements (IAS-1, IAS-7 and Companies Act, 3
2017)
2 IFRS 1 First-time Adoption of International Financial Reporting Standards 2
3 IAS 27 Separate Financial Statements 3
4 IFRS 10 Consolidated Financial Statements 3
5 IAS 28 Investments in Associates 3
6 IFRS 11 Joint Arrangements 3
7 IFRS 12 Disclosure of Interest in Other Entities 3
8 IFRS 2 Share-based Payment 3
9 IFRS 13 Fair Value Measurement 3

Note: *Syllabus has been revised in 256th meeting of the Council held on August 7-9, 2014.
Note: **Grid has been revised in 300th meeting of the Council held on July 28, 2018.
Note: ***Grid has been revised in 310th meeting of the Council held on February 15, 2019.

EDUCATION & TRAINING SCHEME 2013 63

 Syllabus Proficiency
Contents
Ref. Level

10 IFRS 8 Operating Segments 3

11 IFRS 9 Financial Instruments 2
12 IFRS 3 Business Combinations 2
13 IAS 34 Interim Financial Reporting 3
14 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors 3
15 IAS 10 Events After the Reporting Date 3
16 IAS 12 Income Taxes 3
17 IAS 16 Property, Plant and Equipment 3
18 IFRS 16 Leases 3
19 IAS 40 Investment Property 3
20 IFRS 15 Revenue From Contracts with Customers 3
21 IAS 19 Employee Benefits 3
22 IAS 21 The Effects of Changes in Foreign Exchange Rates 3
23 IAS 24 Related Party Disclosures 3
24 IFRS 7 Financial Instruments: Disclosures 3
25 IAS 32 Financial Instruments: Presentation 3
26 IAS 33 Earnings per Share 3
27 IAS 36 Impairment of Assets 3
28 IAS 37 Provisions, Contingent Liabilities and Contingent Assets 3
29 IAS 38 Intangible Assets 3
30 IFRIC 10 Interim Financial Reporting and Impairment 3
31 SIC 32 Intangible Assets – Web Site Costs 3
32 Current development and updates relating to IFRS 1
B Audit, assurance and related services
1 Quality control – ISQC 1, ISA 220, quality control framework of ICAP, 3
Quality Assurance Board of ICAP
2 Legal, professional and ethical consideration relating to appointment and 3
removal of auditor
3 Audit risk 3
4 Audit planning, execution, documentation and conclusion 3
5 Consideration of laws and regulations 3
6 Acceptance and continuance of client 3
7 Subsequent events 3
8 Going Concern 3
9 Fair value measurements and accounting estimates 3

EDUCATION & TRAINING SCHEME 2013 64

 Syllabus Proficiency
Contents
Ref. Level
10 Special consideration - Audit of group financial statements (including 3
work of component auditors)
11 Work of expert and internal auditor 3
12 Identification of audit issues and advising on relevant audit procedures 3
13 Unmodified audit report 3
14 Modification in audit report 3
15 Emphasis of matter and other matters in audit report 3
16 Reporting consideration on comparative information 3
17 Reporting consideration on other information in document containing 3
financial statements
18 Audit report under the Companies Act, 2017 3
19 Current development and updates relating to audit, assurance and 1
related services
C Company law and ethics (provisions relating to accounts and audit)
1 Accounts (Section 220 To 239) 3

2 Dividends and Manner and Time of Payment Thereof (Section 240 To 3

245)
3 Audit (Section 246 To 253) 3

4 Code of Corporate Governance (Codes relating to audit and accounts) 3

5 Professional misconduct under the Chartered Accountants Ordinance 3
1961
6 Code of Ethics (revised 2019) issued by The Institute of Chartered 3
Accountants of Pakistan

EDUCATION & TRAINING SCHEME 2013 65

 MSA-2
MULTI SUBJECT ASSESSMENTS
*MANAGEMENT PROFESSIONAL COMPETENCE

Objective
To develop competence that is necessary to perform the role of management professional in accordance with
well-recognized management techniques upholding the principles of good governance and ethical standards.

Learning Outcome
On the successful completion of this paper candidates will be able to:
1 analyze, evaluate and recommend vision, mission, external and internal analysis, long term
objective, operational initiatives, measurements of outcomes and targets
2 analyze, evaluate and recommend financial strategies to complement the business’s strategy
3 evaluate taxation implications of various courses of action and provide tax planning advice
4 review, analyze and evaluate budget, forecasts and projections
5 recognize legal, governance and ethical issues and act and advise appropriately.

**Grid Weightage
Strategic management 40-50
Financial and performance management 35-45
Tax planning 05-15
Management & Administration related Corporate law and Codes of corporate 05-10
governance and ethics
Total 100

Syllabus
Contents Proficiency
Ref.
Level
A Strategic management
1 Strategic Analysis: 3
Strategic management, organizational goals and objectives, the external
business environment, internal factors and strategic capability, analyzing
strategic position and performance, levels of strategy in an organization.
2 Strategic Choice 3
Strategic choices, generating strategic options, strategic decision-making,
evaluating strategic options, international strategies.
3 Strategic Implementation: 3
Acquisitions and strategic alliances, aligning organizational structure and
strategy, managing change, cost reduction methodologies, evaluating
functional strategies, business plans.
4 Business Risk Management 3
Business risks, enterprise risk management, risk management
responsibilities, stakeholders and risk, risk assessment, risk response.

Note: *Syllabus has been revised in 256th meeting of the Council held on August 7-9, 2014.
Note: **Grid has been revised in 300th meeting of the Council held on July 28, 2018.

EDUCATION & TRAINING SCHEME 2013 66

 Syllabus
Contents Proficiency
Ref.
Level
5 Strategic Marketing And Brand Management 3
Understanding market position, developing a marketing strategy,
positioning strategies, the marketing mix, databases and e-marketing,
brand management, branding and marketing strategy, valuing brands and
intangible assets.
6 Information Strategy 3
Information technology and strategy, Information for strategic planning
and control, Management information systems, The value of information,
Evaluating management information and performance data, Using
information to develop competitive advantage
7 Human Resource Management 3
Strategic human resource management (HRM), the impact of HRM on
business strategy, appraisal and performance management, the impact of
remuneration and reward packages, HRM and change management.
B Financial and performance management
1 Strategic Performance Management 3
Performance management, information for strategic decision making,
performance measurement, rewards, behaviour and performance,
corporate social responsibility and performance
2 Business and Securities Valuation 3
Valuation methods, acquisitions and mergers, unquoted companies and
start-ups, valuation of debt.
3 Financial Instruments and Financial Markets 3
Equity instruments, equity markets, fixed interest securities, bonds and
leasing, bond markets, bond valuation and yields, credit risks, derivatives,
derivative markets.
4 Financial Structures and Reconstruction 3
Capital structure, Dividend policy, Financial reconstruction, Demergers and
disposals, Small and medium company financing.
5 Financial Risk Management 3
Financial risks, Interest rate risks, Foreign exchange rate risks, Hedge
accounting.
6 Treasury and Working Capital Management 3
Treasury management function, Global treasury management, Working
capital management.
C Tax planning
1 Income Tax for Businesses; Group Relief and Taxation; International 3
Expansion of Businesses restricted to permanent establishment (foreigners
investing into Pakistan); Choice of Business Structure, transformation and
reorganization; Sales Tax; and Taxation of Employees Remuneration
D Management & Administration related Corporate law and Codes of
corporate governance and ethics
1 Company Law relating to Management and Administration, 3
Listed Companies (Code of Corporate Governance) Regulations, 2019
and Public Sector Companies (Corporate Governance) Rules, 2013

2 Ethics 3
Ethics and ethical issues, Resolving ethical dilemmas, Ethical safeguards,
Ethics and strategy.

EDUCATION & TRAINING SCHEME 2013 67