PROSPECTUS AND PROGRAMME GUIDE - IGNOU

9. Accounting services in organizations
Construction companies, Project Accounting; Service sector such as Software, ITES, Telecommunication,
Entertainment; Hospital, educational institutions; Banking , Electricity and Insurance companies.
10. Accounting and Interpretation of Financial Statements.
Objectives
Course 10
BCO-046: Commercial & Industrial Laws and Auditing
To give an exposure some of important commercial laws essential for an understanding of the legal implications
of the modern business. Introduction to cover fundamental elements of the Legal System and the system of
judicial precedent. The study to include essentials of establishing and performing simple contracts and the
remedies available in the event of a breach and an introduction to company law. To gain expert knowledge of the
Principles and Practice of auditing and assurance and their application to different practical situations.
Learning Aims
The syllabus aim to test the student’s ability to:
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Explain fundamental aspects of the organization and operation of the Legal Systems;
Identify and explain the essential elements of a simple contract, what is regarded as adequate performance
of the simple contract, and the remedies available to the innocent party in the event of a breach;
Explain the essential differences between sole trader-ships, partnerships and companies limited by shares;
Explain the way in which companies are administered, financed and managed;
Understanding the concepts of auditing, and auditing technique.
To gain knowledge on procedure of auditing in different business environment.
Skill set required
Level B: Requiring the skill levels of knowledge, comprehension, application, and analysis.
Section I: Commercial & Industrial Law (50%)
1. Laws of Contracts
Essential elements of a valid simple contract; Legal status of the various types of statements which may be made
by negotiating parties. Enforceable offers and acceptances, and the application of the rules to standard form
contracts and modern forms of communication; Meaning and importance of consideration; Principles for
establishing that the parties intend their agreement to have contractual force; How a contract is affected by a
misrepresentation; Conditions and warranties; Manner in which law controls use of exclusion clauses and unfair
terms in consumer and non-consumer transactions; Level of performance sufficient to discharge contractual
obligations; Valid reasons for non-performance by way of agreement, breach by the other party and frustration.
2. Laws relating to Sale of Goods
Formation of Contract of sale; Conditions and warranties; Transfer of ownership and delivery of goods; Unpaid
seller and his rights.
3. Industrial Laws
Factories Act; Industrial Dispute Act; Workman Compensation Act; Payment of Wages Act, Minimum Wages
Act; Provident Funds Act; Payment of Bonus Act; Payment of Gratuity Act; Consumer Protection Act etc.
4. Other Laws
A-33