Amendment in CA Final - ISCA Syllabus - Applicable for Nov 2014 attempt .

Important Announcement

Sub: Revision of syllabus of Group – II – Paper – 6 Information Systems Control and Audit

As per the decision of the Council taken at its 324th held in March, 2013, it is notified for information of students and the public at large that the examination in the following papers effective from November 2014 examination and onwards shall be held as per the revised syllabus, as specified by the Council in terms of its authority as vested in Regulation 28E (3) and 31(iii) in respect of Intermediate (IPC)/Accounting Technician Examination and Final Examination respectively.

Final Course, 

Group-II, 

Paper-6: Information Systems Control and Audit  

(One Paper – Three Hours - 100 Marks)

Level of Knowledge: Advanced Knowledge

Objective: “To develop competencies and skill-sets in evaluation of controls and relevant evidence gathering in an IT environment using IT tools and techniques for effective and efficient performance of accounting, assurance and compliance services provided by a Chartered Accountant”.

Contents

1. Concepts of Governance and Management of Information Systems  

Governance, Risk and compliance and relationship between governance and management. Role of information technology and IS Strategy in business strategy, operations and control , business value from use of IT, business impact of IS risks different types of Information Systems Risks, IS Risk management overview, IT Compliance overview – Role and responsibilities of top management as regards IT-GRC. Role of Information Systems Assurance. Overview of Governance of Enterprise IT and COBIT 

2. Information Systems Concepts

Overview of information systems in IT environment and practical aspects of application of information systems in enterprise processes. Information as a key business asset and its relation to business objectives, business processes and relative importance of information systems from strategic and operational perspectives. Various types of business applications, overview of underlying IT technologies. 

3. Protection of Information Systems

Need for protection of Information systems, types of controls, IT general controls, logical access controls & application controls. Technologies and security management features, IS Security Policies, procedures, practices, standards and guidelines, IT controls and control objectives, Role of technology systems in

control monitoring, segregation of duties. Impact of IT controls on Internal controls over financial reporting,

cyber frauds and control failures.

4. Business Continuity Planning and Disaster recovery planning

Assessing Business Continuity Management, Business Impact Analysis and Business Continuity Plans,

Disaster recovery from perspective of going concern, Recovery Strategies 

5. Acquisition, Development and Implementation of Information Systems (SDLC)

Business process design (integrated systems, automated, and manual interfaces), Software procurement, RFP process, evaluation of IT proposals, computing ROI, Computing Cost of IT implementation and cost

benefit analysis, systematic approach to SDLC and review of SDLC controls at different stages. 

6. Auditing & Information Systems

Different types of IS audit and assurance engagements. Evaluating IT dependencies for audit planning. 

Overview of continuous auditing. Auditing Information Systems- Approach methodology, and standards for auditing information systems. IS Audit planning, performing an IS audit, rules of digital evidence, best practices and standards for IS audit. Reviewing General Controls, Application Controls, Application control reviews: Review of controls at various levels/layers such as: Parameters, user creation, granting of access rights, input, processing and output controls.

7. Information Technology Regulatory issues

Overview of Specific section of IT Act 2008 & Rules as relevant for assurance: Electronic Contracting,

digital signatures, cyber offences, etc. Need for systems audit as per various regulations such as: SEBI

Clause 49 listing requirements and internal controls, systems control & audit requirements as per RBI,

SEBI, IRDA. Concepts of Cyber forensics/Cyber Fraud investigation, Overview of Information Security

Standards ISO 27001, ISAE 3402/SA 402, ITIL

8. Emerging Technology: 
Overview of Cloud Computing, Software as a Service, Mobile Computing & BYOD, Web 2.0 & social media, Green IT and related security and audit issues



Happy learning .

Committed to your Success
Praveen Jain .

ISCA Classes - Hyderabad Branch ICAI

Please be noted that there shall be no class on Saturday ( 20th July , 2013) .
Sorry for the inconvenience caused .

See you on Sunday . Timings 6.45 am . 

CBDT Directive Regarding Grant Of TDS Credit In Mismatched Cases

Pursuant to the judgement of the Delhi High Court in Court on Its Own Motion vs. UOI 352 ITR 273, the CBDT has issued Instruction No. 5/2013 F.No.275/03/2013-IT(B), dated 8.07.2013 stating that when an assessee approaches the AO with requisite details and particulars in the form of TDS certificate as evidence against any mismatched amount, the AO will grant credit of TDS to the assessee after ascertaining whether the deductor has made payment of the TDS to the Government.

Judicial Update

Judicial update:
In one of the case, the return of the assessee was processed u/s 143(1) of I T Act 1961 and later on the AO reopened the assessment u/s 148 on three grounds. One of the allegations was that as per report in form 3CEB,the assessee had intl transactions with associted enterprises and therefore determination of arm's length price is required. The AO did not make any addition on the first two allegations but made certain additions in respect of above allegation in view of report of TPO. the question arose whether it could be a valid reason for reopening. 

The hon'ble Del HC has held that this could not be said to be any reason u/s 148 since not supported by any material. 354 ITR 549

CA Final classes @ Hyderabad

ISCA - CA final classes @ Wizard will start from August 7th,2013 .
Duration : 25 Days
Timings : 6 am to 9.15 am
Faculty : Praveen Jain.
For further details contact WIZARD - the school of CA Studies . 
Ph no : 9866365700 
http://www.wizardca.com/coursedetails.html

Plz spread the word..

This is an Inconsistent provision

Discriminative levy of service tax (ST) on Practising Chartered Accountants

This article deals with the discriminative levy of service tax (ST) on Practising Chartered Accountants (CA) vis-à-vis the Practising advocates.

India – a country which places a due emphasis on the concept of equality & which is one of the fundamental principle as laid down in the glorious preamble of our constitution, has certainly failed in adhering to its own created laws further ensuing ambiguity in the system.

Look what I’ve got you this time – “The Baffling Game of LAW”... Read on & get amazed……

SYNOPSIS- All services provided by a CA are subject to levy of ST. There are certain similar services rendered by advocates, which are not subject to any levy of ST. Levy of ST on services provided by CA has always been an intriguing matter. Take a look.

Initially all the services provided by a Practising Chartered Accountant in his professional capacity in any manner were taxable.

But, we got some consolation, whereby all services provided by CA were granted exemption except two services viz. Accounting and Auditing., the benefits were withdrawn & all services of a practicing CA were brought to the tax net again.

On the basis of strong representations, the Government exhibited some leniency, & exemption was granted to services relating to representing the client before any statutory authority in the course of proceedings initiated under any law for the time being in force, by way of issue of notice.

But the said benefit was also taken away with the introduction of negative list. So, a CA is now in the same position as he was in the beginning of the levy in 1998.

Authorized representative (AR)-

Following rules & acts allows both the CA & the Advocate to act as an AR for their clients in the legal proceedings:

• ·         Wealth Tax Act, 195
• ·         Income taxAct, 1961
• ·         Gift Tax Act, 1958 (now kept under suspension)
• ·         Central Excise (Appeals)Appeal Rules, 2001
• ·         Central Excise Act, 1944
• ·         Finance Act 1994,
• ·         Customs (Appeals) appeals Rules, 1982
• ·         Customs Act, 1962
• ·         Company Law Board Regulations, 1991
• ·         Foreign Exchange Management Act, 1999

This shows that both CAs and advocates are treated at par and as equals so far as their entitlement and qualification to act as an AR is concerned.

Renewed status from 01-07-2012

From 1-7-20121-7-12 onwards, all services are taxable except those specified in the negative list under Section 66D of the Finance Act,1994 or in the Mega exemption notification

Effect on CAs-

► Tax Audit Firm

► Chartered Accounting Firm

► Chartered Accountants

The services carried out by CAs/advocates to a client are regarded as an activity for consideration.

No exemption has been granted to CAs neither in the “Negative list” nor in the “Mega Exemption notification”.

Exemption to practicing Advocate OMG!!!

The notification No. 25/2012–ST, grants exemption in respect of services provided by an advocate or a partnership firm of advocates by way of legal services to

1. an advocate or partnership firm of advocates providing legal services;

2. any person other than a business entity; or

3. a business entity with a turnover up to R10 lakh in the preceding financial year.

There is no as such ground which has till now granted any justification with regard to this discrimination.

Full reverse charge mechanism:

Notification states that service tax liability connected with the legal services rendered by an advocate/Firm of advocates is to be discharged by the client receiving the services.

How’re you feeling now haan?  Here also CAs have been betrayed by law ruefully.

A peep into the ARTICLE 14 of our Constitution:

It states- Equality before law: “The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India.”

Equal protection means the right to equal treatment under similar circumstances.

Article 14 only prohibits unequal treatment of persons similarly situated and (discrimination in levy of tax with the same level placed CAs amounts to prohibition of law)

And my clients who are advocates proudly say!!!!!

“ Saab! Hum Service kahaan dete hai….. hum to desh seva karte hai !!!!!

Yeh kahaan ki insaafi ….

CA kare to service aur Advocate kare toh  Desh Seva!!!!  Wah bai Wah !!!!

CA IPCC - IT & SM Exam ( May 2013 ) postponed

IMPORTANT ANNOUNCEMENT CANCELLATION OF EXAMINATION OF GROUP-II, PAPER-7, INFORMATION TECHNOLOGY AND STRATEGIC  MANAGEMENT OF INTERMEDIATE (INTEGRATED PROFESSIONAL COMPETENCE)  EXAMINATION  SCHEDULED ON 15TH MAY – 2013.  It is hereby informed that due to unavoidable circumstances the examination of Group – II, Paper - 7 –  Information Technology and Strategic Management of Intermediate (Integrated Professional Competence)  Examination scheduled on 15th May-2013 stands postponed. The said examination for the candidates  will now be held on 24th May - 2013 (Friday) from 2.00 PM to 5.00 PM. The venue and timing of the said  examination will remain unchanged. Admit Card already issued would remain valid for the examination  on 24th May 2013.  http://www.icai.org/new_post.html?post_id=9556&c_id=240 (G. Somasekhar) Additional Secretary (Examinations)