The Institute of Chartered Accountants of Pakistan

CA

Signature Qualification that Empowers to Lead

Effective Autumn 2014

Chartered Accountants Avenue, Clifton, Karachi-75600 (Pakistan) UAN: 111-000-422 PABX: 99251636-39 Fax: 99251626 Email: info@icap.org.pk

Effective Autumn 2014

Contents
Vision and Mission Pakistans Premier Accountancy Body - ICAP The Qualification Process Full Time Studies Scheme Trainee Scheme 2 3 5 7 8

Progression 9 Exemptions for High Achievers Exemptions for Professionals of Other Accountancy Bodies Study Options Practical Training 10 11 12 13

Examinations 14 Transition for Existing Students 15

The Institute of Chartered Accountants of Pakistan

Our Vision

The profession of Chartered Accountants in Pakistan should be the benchmark of professional excellence upholding the principles of integrity, transparency and accountability.

Our Mission

Our mission is to achieve excellence in professional competence, add value to business and economy, safeguard public interest, ensure ethical practices and good corporate governance while recognizing the needs of globalization.

Effective Autumn 2014

Pakistans Premier Accountancy Body

The Institute of Chartered Accountants of Pakistan

Pakistan is blessed with many stupendous gifts of Nature. Located in the heart of the South Asian sub-continent, cosseted by the mighty mountain ranges of the Himalayas, the Karakoram and the Hindukush forming the northern highlands of Khyber Pakhtunkhawah Province and the spectacular and fascinating Northern Area of Pakistan. Pakistan is blessed with a blend of landscape varying from plains to deserts, forests, hills and plateaus to the golden beaches along the Makran coastal areas with the Arabian Ocean kissing the feet of the Southern Port city, Karachi. Apart from the scenic wonders granted to Pakistan, the real beauty lies in its people. The people of Pakistan, whenever given a chance, demonstrate their unmatched ability to do wonders within very limited resources. In 1961, Pakistan, a newly born country, established the Institute of Chartered Accountants of Pakistan through a Presidential Ordinance to regulate and monitor the accounting profession across the country. Since its inception, the Institute has strictly adhered to the policy of recognizing merit and remained committed to safeguarding public interest and ensuring ethical practices. Institutes commitment to quality has made Chartered Accountancy in Pakistan synonymous with professional excellence, integrity, transparency and accountability.

Whatis Chartered Accountancy

Chartered Accountancy is a rewarding career in various fields of business and finance, including financial reporting, audit, taxation, financial and general management. Chartered Accountants are largely engaged in public practice and private sector. They are also extremely successful entrepreneurs. To become a Chartered Accountant, one needs to be motivated, possess analytical skills, numerical ability and intense cognizance of the world of business and finance. More specifically, it requires study of accountancy, auditing, taxation, corporate laws, corporate finance, economics, management and information systems.

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Credentials of CA Qualifications
Chartered Accountants are recognized as the only professionals to be appointed as Auditor of limited companies with large capital base. (Companies Ordinance, 1984) The Chartered Accountancy is one of the required qualifications to be eligible to be appointed as Chief Financial Officer, Head of Internal Audit and Company Secretary. (Code of Corporate Governance applicable on listed companies) About 25% of the chartered accountants are working in more than 40 countries globally at respectable management positions.

International Recognition
ICAEW Under the MoU signed between ICAP and ICAEW, ICAP members get exemption from the Professional Stage exams and mandatory training of ICAEW. ICAP members are required to complete the Advanced Stage exams and the Ethics module for admission to membership of ICAEW. CICA ICAP members with 12 year experience, through Evaluation of Experience (EvE) program, are eligible to become members of the Canadian Institute of Chartered Accountantswithout appearing in any further examinations. ICAP members meeting the general membership criteria are also eligible for membership subject to: a. Having a university degree granted by a recognized university; b. Passing the final examination (the CA Professions Uniform Evaluation UFE); and c. Meeting the practical experience requirements (term, depth, breadth and progression)of the Canadian CA profession. Practical experience obtained pre- and post-qualification as a member of the ICAP is included.

The Institute of Chartered Accountants of Pakistan

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The Qualification Process

A snapshot of different streams to qualify as Chartered Accountant:
4 Year Degree Holders (from Specified Degree Awarding Institutes) 4 Year Degree Holders (from non specified institutes) HSC/A Level

Assessment of Fundamental Competencies (AFC) (4 Papers)

Assessment of Fundamental Competencies (AFC) (4 Papers) Exempted

Assessment of Fundamental Competencies (AFC) (4 Papers) Exemptions available subject to certain conditions

Commencement of Training

Commencement of Training

Certificate in Accounting and Finance (CAF) (9 Papers)

Certificate in Accounting and Finance (CAF) (9 Papers) Exemptions available from all papers subject to certain conditions

Certificate in Accounting and Finance (CAF) (9 Papers) Exemptions available from 4 non-core papers subject to certain conditions

Commencement of Training

Certified Finance and Accounting Professional (CFAP) (6 Papers)

Certified Finance and Accounting Professional (CFAP) (6 Papers)

Certified Finance and Accounting Professional (CFAP) (6 Papers)

Multi subject Assessments (MSA) (2 Papers)

CHARTERED ACCOUNTANT

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Package of Standalone Qualifications

The education program comprises of the following stages: Entrance Test: Assessment of Fundamental Competencies (AFC) Certificate in Accounting and Finance (CAF) Certified Finance and Accounting Professional (CFAP) Multi subject Assessments (MSA) CAF and CFAP are standalone qualifications and candidates after passing these stages may use these descriptions with their names.

Schemes of Entry
The Institute provides entry to students from diverse disciplines i.e. Commerce, Science or Arts and from various educational levels such as Higher Secondary School Certificate/ A Levels, Graduation and Post-Graduation. There are two schemes of entry: Full Time Studies Scheme Trainee Scheme

The Institute of Chartered Accountants of Pakistan

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Full Time Studies Scheme

This scheme caters to the students who want to join the profession after completing their 12 year education, namely, Higher School Certificate, A Level and other equivalent qualifications. However, there is no bar for graduates to choose this stream.

Pre-requisites
Candidates who have Higher Secondary School Certificate with minimum 50% marks, A Levels with minimum two passes, or equivalent qualification and graduates with minimum 45% marks.

Entrance Test
Before entering into the professional exams candidates pass or obtain exemption from entrance test; Assessment of Fundamental Competencies (AFC). A candidate may be provisionally registered for AFC exams as fulltime student if result of prerequisite qualification is awaited.

Education Prior to Training

The candidates pass or obtain exemption from the papers of Certificate in Accounting and Finance (CAF) prior to training.

Training and Education

On successful completion of CAF, it is mandatory for the student to join an authorized training organization of the Institute for a prescribed period. Training includes specific learning hours for each field of specialization through practical experience. These standard working hours are mentioned in detail in the Training Regulations and Guidelines of the Institute. To become a chartered accountant, the candidates are required to qualify the following stages: Certified Finance and Accounting Professional (CFAP) Multi subject Assessments (MSA) Financial Reporting Professional Competence; and Audit professional competence.

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Trainee Scheme
This scheme is designed for university graduates who want to pursue CA qualification.

Entry
Candidates who possess graduation and post-graduation qualification with minimum 45% marks may directly register as a trainee after passing or obtaining exemption from entrance test; Assessment of Fundamental Competencies (AFC). These candidates also have an option to commence training before passing AFC, but their training will be terminated if they do not pass AFC within one and a half year of training or within the maximum available attempts whichever comes earlier.

Training and Education

Training includes specific learning hours for each field of specialization through practical experience. These standard working hours are mentioned in detail in the Training Regulations and Guidelines of the Institute. During training the candidate qualifies the following stages: Certificate in Accounting and Finance (CAF) Certified Finance and Accounting Professional (CFAP) Multi subject Assessments (MSA) Financial Reporting Professional Competence; and Audit professional competence.

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Progression
The progression of a candidate of Chartered Accountancy takes place in the following manner:

Education and Written Assessments

Multi-subject Assessments (MSA) Forming a firm opinion, advisory and decision making Financial Reporting Professional Competence MSA - 1 Audit professional competence MSA - 2

Achievement at Work Place

Leadership Role as a Chartered Accountant

Certified Finance and Accounting Professional (CFAP) Application and analysis

Advanced Accounting and Financial Reporting CFAP - 1 Corporate Laws Business Management and strategy CFAP - 3 Business Finance Decisions CFAP - 4 Advanced Taxation Audit, Assurance and Related Services CFAP - 6

CFAP - 2

CFAP - 5

Operational Role as Certified Finance and Accounting Professional

Certificate in Accounting and Finance (CAF) Knowledge and comprehension

Introduction Introduction to to Accounting Economics and Finance CAF - 1 CAF - 2 Business Business Financial Principles of Financial Cost and Audit and Law Management Accounting Taxation Accounting Management Assurance & and and Accounting Behavioural Reporting - I Reporting - II Studies CAF - 3 CAF - 4 CAF - 5 CAF - 6 CAF - 7 CAF - 8 CAF - 9

Support Role duly Certified in Accounting and Finance

Assessment of Fundamental Competencies (AFC)

Functional English Business Communication AFC - 2 Quantitative Methods AFC - 3 Introduction to Information Technology AFC - 4

AFC - 1

ENTRY Graduates/HSC/A Level

Foundation for a career as Chartered Accountant

The scheme of professional development integrates practical experience with the education and assessments and ensures that competencies developed through education are fully aligned with the hierarchy of roles that a candidate of Chartered Accountancy generally performs during the practical training in a Training Organization.

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Exemptions for High Achievers

Exemptions from examinations are available for bright and intelligent minds. The application for exemption is approved by the Directorate of Examinations after scrutiny on the basis of pre-defined criteria. The exemptions on the basis of academic qualification are available to the following categories: Four year degree from Specified Degree Awarding Institute (SDAI) Four year degree from universities other than SDAI Two year degree from universities other than SDAI Higher Secondary School Certificate A Levels

A summary of exemptions is as follows:

Stages 4 year Graduates from SDAI AFC
Exemption from all papers of AFC Without any other condition

Available exemption and conditions applicable 4 year Graduates from non-SDAI

Exemption from all papers of AFC Minimum 65% marks in aggregate 80% marks or equivalent grades in relevant subject Syllabus matches at least 70% with the prescribed syllabus of relevant subject

2 year Graduates from non-SDAI

Exemption from all papers of AFC Minimum 60% marks in aggregate 75% marks or equivalent grades in relevant subject Syllabus matches at least 70% with the prescribed syllabus of relevant subject

HSSC

A-levels

Exemption from all papers of AFC Minimum 70% marks in aggregate 75% marks or equivalent grades in relevant subject Syllabus matches at least 70% with the prescribed syllabus of relevant subject

Exemption from all papers of AFC Minimum two B grades B grade in relevant subject Syllabus matches at least 70% with the prescribed syllabus of relevant subject

CAF

Exemption from all subjects of CAF Minimum 75% marks or equivalent grades in relevant subjects Syllabus matches at least 70% with that of the prescribed syllabus of relevant subjects

Exemption from CAF-1 to 4 Minimum 65% marks in aggregate 80% marks or equivalent grades in relevant subject Syllabus matches at least 70% with the prescribed syllabus of relevant subject.

Note: SDAIs are degree awarding institutes recognized by the Institute on the basis of a pre-defined criteria and evaluation by the Institute. The degree courses of SDAIs are designed in close coordination with the Institute.

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Exemptions for Professionals of Other Accountancy Bodies

The Institute recognizes the quality and relevance of course contents and level of professional development that members of other accountancy bodies achieve during their career path. Accordingly, it offers the exemptions from various examinations to the members and affiliates of the following accountancy bodies: a. b. c. d. Association of Chartered Certified Accountants (ACCA) of UK Chartered Institute of Management Accountants (CIMA) of UK Institute of Cost and Management Accountants of Pakistan (ICMAP) Pakistan Institute of Public Finance Accountants (PIPFA)

A Summary of exemptions is as follows:

Stages and papers ACCA
Y Y

CIMA
Y Y

ICMAP Y Y Y Y

PIPFA
Y Y Y Y

Assessment of Fundamental Competencies

AFC-1 AFC-2 AFC-3 AFC-4 Functional English Business Communication Quantitative Techniques Introduction to Information Technology

Certificate in Accounting and Finance (CAF)

CAF-1 CAF-2 CAF-3 CAF-4 CAF-5 CAF-6 CAF-7 CAF-8 CAF-9 Introduction to Accounting Introduction to Economics and Finance Business Law Business Management & Behavioral Studies Financial Accounting and Reporting I Principles of Taxation Financial Accounting and Reporting II Cost and Management Accounting Audit and Assurance Y Y* Y Y Y* Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

* the exemption from CAF-6 Principles of Taxation shall be granted to candidates who have passed F6 Taxation - Pakistan variant and exemption from CAF-9 Audit and Assurance shall be granted to candidates who have passed P7 Advanced Auditing.

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Study Options
A candidate of Chartered Accountancy may opt to either study independently or attend classes in a Registered Accounting Education Tutors (RAETs).

Self-Study
The Institute does not recommend this mode of study, as the challenging professional examinations need guidance and mentoring of experienced teachers. However, students opting for self-study get full supports of high quality study material prepared by a renowned international developer.

Study in RAETs
RAETs are affiliated with the Institute and work in close coordination with the Institute. RAETs are ICAP-specific tuition providers and have exceptional expertise and experience in providing tuition for ICAP examination. RAETs generally offer AFC and CAF stage courses in all major cities of Pakistan. For admission, class schedules, fees and other details students directly contact the RAETs of their choosing. A latest list of RAETs is available on the website of the Institute.

Study Material
The Institute has developed exam-aligned study material and that forms the basis of exam papers. This alignment of study material with examination channelizes the energy of the candidates in the required direction. Focusing examination preparation on study material will impact student success positively. Clearly explained contents and their defined competency level aim to document clear goals and expectations and yield robust student learning without compromising the due uncertainty level required for an exam to be valid and reliable.

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Practical Training
The Institute follows the competency based professional development approach whereby candidates pursuing CA qualification are trained to perform different work roles to a defined standard. Practical training is the core component of the CA program and provides an edge over other parallel programs in Pakistan. A candidate of chartered accountancy is required to undergo mandatory practical training under the supervision of a member of the Institute. Practical training provides hands on experience of real life work situations through application of theoretical knowledge in the professional life.

Period of Training
Presently, the Institute only authorizes the practicing firms of chartered accountants to offer practical training. The period of training varies with the academic education background of a trainee. The following table provides the information about the length of training:
S. No. i. ii. iii. Qualification on the commencement of training Candidates who have passed or obtained exemption from CAF Four year Graduate/Post Graduate from universities approved by the Education and Training Committee of the Institute Graduates/post graduates other than those mentioned at (ii) above Period of Training 3.5 years 3 years 4 years

Currently, four year graduates from SDAIs are eligible for three year training mentioned in the above table.

Stipend during Training

Students are paid prescribed stipend by the Training Organizations during the period of training, which allows financial independence.

Training Organizations
An updated list is available on the website of the Institute.

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Schedule
Months February-March May-June August-September November-December

Examinations
Session Spring Summer Autumn Winter Stage AFC and CAF CFAP and MSA AFC and CAF CFAP and MSA

Examinations are held in the following sessions:

Detailed schedule is available on the website of the Institute.

Papers to attempt
Stage Eligibility Maximum number of paper permitted in one session
No limit Five papers No limit Not applicable

Minimum training period to be served

None None One and half year No additional period

AFC CAF CFAP MSA - 1

After registration After passing or obtaining exemption from AFC After passing or obtaining exemption from CAF After passing the following CFAP papers: Advanced Accounting and Financial Reporting Corporate Laws Advanced Taxation After passing the following CFAP papers: Advanced Accounting and Financial Reporting Corporate Laws Audit, Assurance and Related Services

MSA - 2

Not applicable

No additional period

Maximum number of attempts

Stage AFC CAF CFAP MSA Maximum permitted attempts Three attempt per paper Six attempt per paper Six attempt per paper Unlimited None Two more attempts after using all permitted attempts per paper for those who have maximum two papers left. Two more attempts after using all permitted attempts per paper for those who have maximum two papers left. Not applicable Additional attempts

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Transition for Existing Students

The main principle driving the transition policy is to make the transition of the existing candidates simple and smooth from old to new scheme. Maximum equivalencies are being allowed and generous transition period has been allowed to existing students to qualify under the previous structure.

Modules A to D
Existing Fulltime Students of Modules A to D Existing Trainee Students of Modules A to D

Obtain credit of passed papers against equivalent AFC and CAF papers (Before Autumn 2014 attempt)

Obtain credit of passed papers against equivalent AFC and CAF papers (Before Autumn 2014 attempt)

Pass remaining papers of AFC and CAF

Pass remaining papers of AFC and CAF

Eligible for training

Eligible for Modules E and F/CFAP and MSA exams as the case may be

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The Institute of Chartered Accountants of Pakistan

For details, visit www.icap.org.pk or contact

Head Office: Chartered Accountants Avenue, Clifton, Karachi-75600. UAN: 111-000-422 Email.education@icap.org.pk

Regional Office: 155-156, West Wood Colony, Thokar Niaz Baig, Raiwind Road, Lahore, UAN: 111-000-422 Email: lahore@icap.org.pk Multan Office: 3rd Floor, Parklane Tower, Officers' Colony, Near Eid Gaah Chowk, Khanewal Road, Multan. Tel: (061) 6510511, 6510611 Email: multan@icap.org.pk

Islamabad Office: Sector G-10/4, Mauve Area, Islamabad. UAN: 111-000-422 Email: islamabad@icap.org.pk Peshawar Office: House # 30, Old Jamrud Road, University Town, Peshawar Tel: (091)5851648 Email: peshawar@icap.org.pk

Faisalabad Office: 36-Z, Commercial Center, Near Mujahid Hospital, Madina Town, Faisalabad. Tel: (041) 8531028 Email: faisalabad@icap.org.pk

The Institute of Chartered Accountants of Pakistan

For details, visit www.icap.org.pk or contact

Head Office: Chartered Accountants Avenue, Clifton, Karachi-75600. UAN: 111-000-422 Email.education@icap.org.pk

Regional Office: 155-156, West Wood Colony, Thokar Niaz Baig, Raiwind Road, Lahore, UAN: 111-000-422 Email: lahore@icap.org.pk Multan Office: 3rd Floor, Parklane Tower, Officers' Colony, Near Eid Gaah Chowk, Khanewal Road, Multan. Tel: (061) 6510511, 6510611 Email: multan@icap.org.pk

Islamabad Office: Sector G-10/4, Mauve Area, Islamabad. UAN: 111-000-422 Email: islamabad@icap.org.pk Peshawar Office: House # 30, Old Jamrud Road, University Town, Peshawar Tel: (091)5851648 Email: peshawar@icap.org.pk

Faisalabad Office: 36-Z, Commercial Center, Near Mujahid Hospital, Madina Town, Faisalabad. Tel: (041) 8531028 Email: faisalabad@icap.org.pk