Professional Practices

CSI-407 3(3-0)

Course Type Theory

Compulsory
 Finance and Accounting
Intro:
Finance is a field focused on the
management, creation, and study of
money, investments, and other financial
instruments.
It involves the allocation of resources over
time, particularly in conditions of
uncertainty and risk.
Finance can be broadly categorized into
three main areas: personal finance,
corporate finance, and public finance.
 Finance and Accounting
Personal Finance
Personal finance involves managing individual or
household financial activities. Key aspects include:
Budgeting: Planning how to allocate income toward
expenses, savings, and debt repayment.
Saving: Setting aside money for future needs and
goals.
Investing: Putting money into assets like stocks,
bonds, real estate, or mutual funds to grow wealth
over time.
 Finance and Accounting
Personal Finance
 Retirement Planning: Preparing for financial
security in retirement, often through pension plans,
401(k)s, IRAs, and other retirement accounts.
 Insurance: Protecting against financial losses due to
unforeseen events through various types of insurance
(health, life, auto, etc.).
 Debt Management: Managing and paying off debts
such as credit cards, student loans, and
mortgages(‫)رہن‬.
 Finance and Accounting
Corporate Finance
Corporate finance focuses on the financial
activities of businesses and corporations. Key
aspects include:
Capital Budgeting: Evaluating and selecting
long-term investment projects.
Capital Structure: Determining the mix of
debt and equity financing.
Working Capital Management: Managing
short-term assets and liabilities to ensure a
company's operational efficiency.
 Finance and Accounting
Corporate Finance
Financial Analysis and Planning: Analyzing
financial statements, forecasting future
performance, and planning for growth.
Mergers and Acquisitions: Planning and
executing the acquisition or merger of
companies to enhance growth and competitive
advantage.
Risk Management: Identifying, assessing,
and managing financial risks to minimize their
impact on the organization.
 Finance and Accounting
Public Finance
Public finance deals with the financial
activities of governments and public
entities. Key aspects include:
Taxation: Designing and implementing
tax policies to generate revenue.
Government Spending: Allocating
government funds to various public
services and projects.
 Finance and Accounting
Public Finance
Public Debt Management: Managing
government borrowing and debt repayment.
Budgeting: Planning and controlling
government expenditure to meet public
policy objectives.
Economic Stabilization: Using fiscal policy
tools to stabilize the economy, such as
adjusting spending and taxes to influence
economic growth and control inflation.
 Finance and Accounting
Key Concepts in Finance
Time Value of Money (TVM): The
concept that money available today is
worth more than the same amount in the
future due to its potential earning
capacity.
Risk and Return: The relationship
between the risk of an investment and
its potential return, where higher returns
are typically associated with higher risks.
 Finance and Accounting
Key Concepts in Finance
Diversification: Reducing risk by spreading
investments across various assets to minimize the
impact of any single asset's poor performance.
Market Efficiency: The hypothesis that financial
markets reflect all available information, making it
difficult to consistently achieve higher returns
without taking additional risk.
Valuation: The process of determining the
present value of an asset or company based on
expected future cash flows.
 Finance and Accounting
Financial Markets and Instruments
 Stock Market: A platform for buying and selling
shares of publicly traded companies.
 Bond Market: A market for trading debt securities
issued by corporations and governments.
 Derivatives Market: A market for financial
instruments like futures, options, and swaps, which
derive their value from underlying assets.
 Foreign Exchange Market: A market for trading
currencies.
 Money Market: A market for short-term debt
instruments and securities.
 Finance and Accounting
Careers in Finance
 Financial Analyst: Analyzes financial data and
trends to assist in investment decisions.
 Investment Banker: Helps companies raise capital
and advises on mergers and acquisitions.
 Portfolio Manager: Manages investment portfolios
to achieve specific financial goals.
 Financial Planner: Provides advice on personal
financial management, including retirement planning
and investment strategies.
 Risk Manager: Identifies and mitigates financial
risks for organizations.
 Finance and Accounting
Conclusion:
Finance is essential for ensuring
efficient allocation of resources,
supporting economic growth, and
helping individuals and organizations
achieve their financial goals.
 Finance and Accounting
Accounting Intro:
Accounting is the systematic process of
recording, summarizing, and reporting
financial transactions to provide useful
information for decision-making.
It involves various principles, procedures, and
standards to ensure accuracy and consistency.
Accounting can be broadly divided into
several branches, each serving specific
purposes.
 Finance and Accounting
Branches of Accounting
Financial Accounting
◦ Purpose: To prepare financial statements that
provide an overview of the financial performance
and position of an organization.
◦ Key Outputs: Income Statement, Balance Sheet,
Cash Flow Statement, Statement of Changes in
Equity.
◦ Principles and Standards: Generally Accepted
Accounting Principles (GAAP) in the U.S. and
International Financial Reporting Standards (IFRS)
globally.
 Finance and Accounting
Branches of Accounting
Managerial Accounting
◦ Purpose: To provide internal management
with the information necessary for planning,
controlling, and decision-making.
◦ Key Outputs: Budgets, Forecasts, Variance
Analysis, Cost Reports.
◦ Focus: Internal processes, efficiency, and
performance measurement.
 Finance and Accounting
Branches of Accounting
Tax Accounting
◦ Purpose: To prepare tax returns and ensure
compliance with tax laws and regulations.
◦ Key Outputs: Tax Returns, Tax Planning
Reports, Compliance Documentation.
◦ Focus: Minimizing tax liability through legal
means and ensuring adherence to tax
codes.
 Finance and Accounting
Branches of Accounting
Auditing
◦ Purpose: To examine and verify the accuracy
of financial statements and ensure
compliance with accounting standards and
regulations.
◦ Types: Internal Auditing (conducted by
employees) and External Auditing (conducted
by independent auditors).
◦ Key Outputs: Audit Reports, Opinion Letters,
Compliance Reports.
 Finance and Accounting
Branches of Accounting
Forensic Accounting
◦ Purpose: To investigate financial fraud and
disputes, often used in legal cases.
◦ Key Outputs: Investigative Reports,
Evidence for Legal Proceedings, Expert
Testimony.
◦ Focus: Detecting and preventing fraud,
analyzing financial data for legal cases.
 Finance and Accounting
Branches of Accounting
Government Accounting
◦ Purpose: To manage and report the
financial activities of government entities.
◦ Key Outputs: Government Financial
Statements, Budget Reports, Expenditure
Reports.
◦ Standards: Governmental Accounting
Standards Board (GASB) guidelines in the
U.S.
 Finance and Accounting
Key Concepts in Accounting
 Double-Entry Accounting: A system where every transaction affects at
least two accounts, ensuring that the accounting equation (Assets =
Liabilities + Equity) always balances.
 Accrual Basis Accounting: Recording revenues and expenses when they
are incurred, regardless of when cash is exchanged, providing a more
accurate picture of financial performance.
 Revenue Recognition Principle: Recognizing revenue when it is earned
and realizable, regardless of when cash is received.
 Matching Principle: Matching expenses with the revenues they help
generate, ensuring that income statements reflect the true profitability of
the business.
 Materiality: Considering the significance of financial information in the
context of decision-making, where immaterial items may be disregarded.
 Conservatism: Recording expenses and liabilities as soon as possible, but
recognizing revenues only when they are assured, to avoid overstating
financial position.
 Finance and Accounting
Financial Statements
 Income Statement: Summarizes revenues, expenses,
and profits or losses over a specific period, showing the
company’s financial performance.
 Balance Sheet: Provides a snapshot of the company’s
financial position at a specific point in time, detailing
assets, liabilities, and equity.
 Cash Flow Statement: Reports the cash inflows and
outflows from operating, investing, and financing
activities, showing how cash is generated and used.
 Statement of Changes in Equity: Shows changes in
owners’ equity over a period, including profits retained,
dividends paid, and other equity adjustments.
 Finance and Accounting
 Careers in Accounting
 Accountant: Manages financial records, prepares financial
statements, and ensures accuracy and compliance with
standards.
 Auditor: Examines financial statements to ensure accuracy
and compliance, and may work internally or for external
auditing firms.
 Tax Advisor: Specializes in tax planning, preparation, and
compliance for individuals and businesses.
 Forensic Accountant: Investigates financial discrepancies
and fraud, often working with legal teams.
 Management Accountant: Focuses on internal financial
processes, providing information for strategic decision-
making and performance management.
 Finance and Accounting
Importance of Accounting
Accounting is crucial for:
Decision-Making: Providing accurate financial
information to help management make informed
decisions.
Compliance: Ensuring adherence to laws, regulations,
and standards.
Transparency: Offering stakeholders a clear view of
the financial health and performance of an
organization.
Financial Management: Helping organizations plan,
control, and optimize their financial resources
effectively.
 Finance and Accounting
Conclusion:
In summary, accounting is the
backbone of financial management,
offering critical insights and ensuring
the integrity and efficiency of financial
operations.
Finance and Accounting

Topic 6

Completed
 Professional Practices
Course Contents Course Contents
Completed Completed
 Computing  Intellectual Property
Profession
 Computing Ethics Rights
 The Framework of
 Philosophy of Ethics
Employee Relations
 The Structure of
Law and Changing
Organizations Management Practices
 Finance and
 Human Resource
Accounting Management and IT
 Anatomy of a Software  Health and Safety at
House Work
 Computer Contracts
Professional Practices
Course Contents Course Contents
 Software Liability  ACM Code of Ethics
 Liability and Practice and Professional
 Computer Misuse and Conduct
the Criminal Law  ACM/IEEE Software
 Regulation and Engineering Code of
Control of Personal Ethics and
Information Professional Practice
 Overview of the
 Accountability and
British Computer
Auditing
Society Code of
 Social Application of
Conduct
 IEEE Code of Ethics Ethics