Pakistan Audit & Accounts Academy, SPECIALIZED TRAINING PROGRAM (48"STP Onwards) Syllabus (FPOE-2021-22) _SPECIALIZED TRAINING PROGRAMME 48thSTP Onwards SYLLABUS FINAL PASSING OUT EXAMINATION e INDEX Is | withy Na Subject / Paper Marks | Time Without 0 Books Public Financial Management& ; 1 | Quantitative Techniques 150 [3.5 Hours | Without Books : F : Without 2. | Financial Accounting 100 |3Hours | Be 3 | Cost and Management Accounting |100 — |3 Hours Without Books 4. | Service and Financial Rules 100 |3Hours | With : Books 5 Government Accounting NAM 75 |3Hours | With Books 6 | Government Auditing -FAM 100 |3Hours | Without Books F With [7__| Government Accounting I 75 3Hours | ith 8 | Information Systems Audit 100 |3 Hours | Without Books Office Communication Skills Without 9 | (Correspondence and Drafting) Fr 10 | Business Law and Taxation 100 |3 Hours | Without | Books Page 2 of 44Paper 1 (150 MARKS) Public Financial Management & Quantitative Techniques Total Credit Hours: 100 (Without Books) INTRODUCTION . es : Pe 2 The aim of the syllabus is to provide a basic understanding of the concepts and principles involved in corporate and public financial management, The syllabus Will provide knowledge of basic mathematics, including formulae and ratios, quantitative techniques for summarizing and analyzing data in addition to financial mathematics and project appraisal. tr wll also cover the fundamentals of public financial management, such as theory of public finance, sources of revenue, and types of expenditure, planning, budgeting, Medium Term Budgetary Framework and public debt, etc Further, the zole of planning institutions will be discussed and the preparation of such planning documents as PC-1, PC-II ete shall be covered, al SYLLABUS WEIGHTAGE Public Financial Management& Quantitative Techniques (SECTION-A) ___|_ Quantitative Techniques For Financial Analysis __| 1_| Basic Mathematics ~2_| Presentation of Data 3 | Summarizing and analyzing data(excluding probabi [4 40% and non-probability sampling) Quantitative Techniques 5 | Capital Investment Appraisal © | The cost of capital (SECTION-B)Publie Sector Financial Management T_ [Introduction to public Finance 2__[ Types of Public Revenue [_3__[ Public Expenditure 4 | Public Budget 3_| Public Debt —6-| PEM ACT 2019 and PFM Regulations 2021; ——— (SECTION-C Public Policy and Planning 1 | Fiscal Policy and Monetary polic 7 | Policy Planning and Role of Development Institution 20% 3 | All PC Proformas e.g, PC I, PC Il, ete. —{ 40% Total [100% Page 30f 44‘The weightage assigned against each section are meant for the paper setter, A's examination paper will consist of nine questions divided into three cections A.B&C. Each question in Section A & B will cary 20 marks, respectively and the question meant for Section C will carry 15 marks. Probationary officers will attempt 8 questions in total which shall be attempted in the following order. [Three questions out of four from Section A II- Three questions out of four from Section B I- Two question out of three from Section C 1. Strategic Financial Management (ICMA- F-3) $03 2.Compilation of Handouts on Public Financial Management 3. Business Mathematics by CIMA 4. Public Finance by HL Bhatia (28" Edition) S. PMF ACT 2019 6. Planning Commission's Manual 7. Planning Commission Proformae along with notes * Economic Survey of Pakistan * Budget documents (M’ TBF) ‘Teacher's Handouts as reference State Bank Annual Report (Monetary Policy) Hand Book of Planning Commission (Planning) Case Studies on Public Finance of Pakistan * Discount factor tables as reference material DETAILED SYLLABUS CONTENTS; Public Financial Management& Quantitative Techniques (Without Book) | (SECTION A) StNo, Quantita e Techniques For Financial Analysis 1 | Basic Mathematics [+ Use of Formulae + Percentages and ratios + Rounding of numbers 2 Presentation of data + Data and information + Primary and secondary data + Tabulation of data. + Frequency distributions 3__| Summarizing an + Grape and daar Baas meer Graphs taorz-—— charts), scatier diagrams, histosrane sad Soe ‘Summary measures for both grouped and ungrouped cE lata,« Co-efficient of variation «Index numbers. Financial Mathematics «Simple and compound interest Discounting to find the present value ‘Annuities and perpetuities Loans and mortgages Sinking funds and savings funds Simple investment appraisal Capital Investment Appraisal «Introduction Steps in Project Appraisal Methods of Project Appraisal ‘Accounting Rate of Return Method The Payback Period The Time Value of Mone; Discounted Cash Flow Internal Rate of Return Public Sector Capital Budgeting Decisions The Cost of Capital o|Blele Investment decisions, Financing and the Cost of Capital The Dividend Valuation Model The Capital Asset Pricing Model(CAPM) The Cost of Debt The weighted Average Cost of Capital (WAAC) (SECTION B) Public Sector Financial Management Introduction to Public Finance ‘* Meaning and scope of Public Finance ‘* Traditional Principles of Public Finance Public Goods V/s Private Goods e Externalities * Concept of Mixed Economy. | Types of Public Revenue Revenue Receipts Capital Receipts Difference between tax revenue and non-tax revenue Kinds of tax Base of tax Buoyancy and Blasticity of a tax Principles of taxation Characteristics of a good tax system Public Expenditure ‘¢ Meaning and Nature of Public Expenditure Page Sof 44Wagner's Law of Increasing State Activities Wiseman Peacock Hypothesis * Kinds of Public Expenditure ic Expenditure and Distribution. _+ Effects of Public Expenditure «Public Expenditure and Economy Stabilization ‘*_ Public expenditure and Economic Growth Public Budget Introduction * Kinds of Budget * Performance Budget + Program Budget Zero Based Budget © Balanced Budget «Medium Term Budgetary Framework (MTBF) Pros & Cons of Budget. Debt Internal Debt External Debt Burden of Debt Internal and External Factors imparting public debt management + Fiscal Responsibility Regime for Public Debt control and management PFM Act 2019 and PFM Regulations 2021 _ (Section C) Public Policy and Planning Fiscal Policy and Monetary Policy + Role of Finance Division * Role of State Bank of Pakistan. Policy Planning and Role of Development Institutions ¢ Planning Commission ( Federal level) + Planning and Development Department (Provincial level) ¢ EDO Finance& Planning (District level) «Preparation of Planning documents Preparation of PC I-IV " _ Page 6 of 44Maper2 (00 MARKS) Financial Accounting Total Credit Hours: 60 (Without Books) INTRODUCTION The course is designed to provide an in-depth understanding of fundamentals of accounting theory, methods and procedures. It systematically covers the accounting process of classification, summarization, presentation and interpretation of historical data in the light of established accounting practices. The course will introduce the complete accounting cycle and application of principles set out by International Accounting standards in the preparation of financial statements. SYLLABUS FINANCIAL ACCOUNTING acne (Without Books) SECTION-A 1] Accounting: Information for decision making 20% SECTION-B > | Accounting Cycle and its Treatment ug i SECTION-C [3 | Basie Analysis of Financial Statements Bl oe | 7 Total 100% L ‘The weightage assigned against each section are meant for the paper setter. The examination paper will consist of eight questions. + Probationary Officers will attempt five questions in total which shall be attempted in the following order; I- One question out of two from Section A Il- Three questions from Section B. (One compulsory question on the preparation of Statements and residual portion of the section would require attempting two out of three questions) + III- One questions out of two from Section C SUGGESTED READING LIST: 1. Accounting by MEIGS & MEIGS 13" Edition Page 7 of 44DETAILED SYLLABUS CONTENTS: Sr. No. a FINANCIAL ACCOUNTING (Without Books) Accounting information for decision making Types of Accounting Information Accounting Systems Determining Information Needs Cost of Producing Accounting Information Basic Functions of An Accounting System Financial Accounting Information External Users of Accounting Information Objectives of External Financial Reporting Use of Financial Statements by External Parties Management Interest in Financial Statements Accounting Cycle i- The Accounting Equation and Effects of Financial Transactions on the Equation The ledger The use of accounts Debit and Credit entries ‘The Journal vie Posting the Journal entries to Ledger & extracting Balance vii Types of Accounts Assets Liabilities Revenue Expense Owners’ Equity vili- Trial Balance ix Adjusting entries x+ Preparing Financial Statements; Profit and loss Account/ Income statement Balance Sheet Statement of Changes in Retained Earnings Bank Reconciliation Statement Statement of Cash Flows Basic Analysis and Interpretation of Financial Statements Horizontal and vertical analysis Limitations of ratio analysis Reports to the Managements (Restricted only to the interpretation of ratios) Page 8 of 44Paper 3 (100 MARKS) Cost & Management Accounting Total Credit Hours: 60 (Without Books) INTRODUCTIO! This course is designed to acquaint students with knowledge of established practices of cost accumulation methods and the application of this knowledge 10 basic planning, control and decision-making, This course shall describe fundamentals of accounting for material, labour and manufacturing expenses; an understanding of the role of cost accounting in planning and controlling organizational and manufacturing cost and their relation to management functions. SYLLABUS WEIGHTAGE [ SECTION-A. 1. [introduction to Management Accounting: 2. _ [Cost classification B. [Material Costs 0% [Labour Costs Overhead Cost Marginal and Absorption Costing (Only Theoretical) SECTION-B ce Frypes of Costing System [Cost Behavior __ . Standard Costing (Only Theoretical) 20% 10. Basic Variances Analysis (Only Theoretical) SECTION-C 11 _ Budgeting: Profit, Sales, and Expenses 12 _ Budgeting: Expenditure & Cas! |, Budgeting: The Flex ible Budget; Cost Behavior 7 20% 8 [Anat sis. SECTION-D 14 [Cost-volume-profit (CVP) analysis ae [15 _ [Relevant costing and decision-making Total 100% 4 The weightages given above are for the paper setter. ¢ The examination paper will consist of eight questions divided in four sections A, B, C & D. Section A will have 3 questions and Section B, C Page 9 of 44and D will consist of 2 questions each. + Probationary officers will attempt five questions in total which shall be | attempted in the following order: iG ‘Two questions out of three from Section A M. One questions out of two from Section B + IIL One question out of two from Section C IV. One question out of two from Section D SUGGESTED READING LIST: 1, ACCA, F2, Management Accounting, BPP Learning Media. (2010) DETAILED SYLLABUS CONTENTS: 1 _ | Introduction to Management Accounting: Describe the purpose and role of cost and management accounting within an organization. ‘Compare and contrast financial accounting with cost and management accounting. Outline the managerial processes of planning, decision making and control 7 Explain the difference between strategic, tactical and operational annin; Explain the limitations of management information in providing guidance for managerial decision-making 2 | Cost classification a Explain and illustrate production and non- production costs Describe the different elements of non-production costs- administrative, selling, distribution and finance Describe the different elements of production cost- materials, labour | and overheads Explain the importance of the distinction between production and non-production costs when valuing output and inventories Explain and illustrate with examples classifications used in the analysis of the product/service costs including by function, direct and | indirect. fixed and variable, stepped fixed and semi variable costs. Explain and illustrate the concept of cost objects, cost units and cost Distinguish between cost, profit, investment and revenue centres Describe the differing needs for information of cost, profit, investment and revenue centre managers 3__| Material Costs Procedure for materials procurement and use, Describe the different procedures and documents necessary for the ordering, receiving and issuing of materials from inventory | Materials costing methods Page 10 of 44Calculate the value of closing inventory and material issues using | LIFO, FIFO and weighted average meihods. Tdentify, explain and calculate the costs of ordering and holding inventory (including buffer inventory) Calculate and interpret optimal reorder quantities Labour Costs Wage incentive plans; system and documentation Calculate direct and indirect costs ‘of laboursPrepare the journal and ledger entries to record labour cost inputs and outputs__ Describe different remuneration methods: time-based systems, piecework systems and individual and group incentive schemes Calculate the level, and analyse the costs and causes of labour turnover Explain and calculate labour efficiency, capacity and production volume ratios Overhead & Absorption Costing ‘Absorption of factory overhead using Labour hours and Machine hours.(to be restricted to labour and machine hours onl Explain the different treatment of direct and indirect expenses Describe the procedures involved in determining production overhead absorption rates Reapportion service cost centre costs to production cost centres (including using the reciprocal method where service cost centres work for each other) Select, apply and discuss appropriate bases for absorption rates Calculate and explain the under and over absorption of overheads. Marginal & Absorption Costing (Only Theoretical) Explain the importance of, and apply, the concept of contribution Demonstrate and discuss the effect of absorption and marginal costing on inventory valuation and profit determination Calculate profit or loss under absorption and marginal costing Reconcile the profits or losses calculated under absorption and marginal costing | Types of Costing Systems Job order costing, process costing and contract systems costing; and treatment of joint products and by-products. Cost Behavior Fixed and variable costs: direct and indirect costs; cost volume profit analysis and break even analysis_ ——— Desoribe and illustrate, graphically, different types of cost behavior _| Page 11 of 44| Using high-low method, Use high/low analysis to separate the fixed and variable elements of total costs including situations involving semi variable and stepped fixed costs and changes in the variable cost per unit. Standard Costing (Only Theoretical) 10 Operation of Standard costing system Establishing cost standards Types of cost standards Basic Variances Analysis (Only Theoretical) Material Variances (Total, Price and Usage Variances) Labour Variances (Total, Wage Rate and Efficiency Variances) Variable Overhead (Expenditure Variance and efficiency Variance) ul Budgeting: Profit, Sales, and Expenses Profit Planning, Principles of Budgeting, and the complete Periodic Budget, 12 Budgeting: Expenditure & Cash Capital Expenditures Budgets, Research and Development Budget, Cash Budget, Projected Income Statement, Projected Balance sheet, Financial forecast for External Users, Zero Base Budgeting, B Budgeting: The Flexible Budget; Cost Behavior Analysis The flexible Budget, Capacity and volume, analysis of Cost Behavior, Determining the fixed and Variable elements of'a Semi variable Expense, Preparing a flexible budget, Flexible Marketing and Administrative Budgets. 14 Cost-volume-profit (CVP) analysis CVP analysis and breakeven point, The contribution to sales (C/S) ratio, The margin of safety, Break even arithmetic and profit targets, Break even charts, contribution charts and profivvolume charts, Limitations of CVP analysis 15 Relevant costing and decision-making Relevant costs; make or buy decisions; decisions with limiting factors. Page 12 of 44PAPER - 4: SERVICE & FINANCIAL RULES Total Credit Hour: 60 (WITH BOOKS) INTRODUCTION ‘This syllabus aims to ensure that the students acquire knowledge and skills in Service and Financial Rules a: (100 MARKS) s set out by the Government of Pakistan. SYLLABUS WEIGHTAGE Service and Financial Rules (With Books) (Section — A)SERVICE RULES Terms and Conditions of Civil Servants as provided in Civil Servants Act 1973 Pay and Allowances Travelling Allowance Rules Rules Pension General Provident Fund Rules 25% The Government Servants (Conduct) Rules1964 8. | Civil Servants (Efficiency & Discipline) Rules, 2020 9. | BF and Group Insurance Schemes (Section-B)FINANCIAL RULES 1 | Financial Control and Budgeting [2 | House Building and Conveyance Advances 3 | Purchase and Acquisition of Stores 25% Public Procurement Regulatory Authority Ordinance, 4 }2020 (as amended up to July 7,2020) & PRA Rules with Amendments Page 13 of 445 |Cash book and Permanent Advance 6 |General principles of receipt of money and withdrawal of | money from the Public Account 7 | At source deductions of taxes from salaries and contingent /works bills (Section-C)PRACTICAL WORK Fixation of pay of on appointment, promotion and revision of pay scales Preparation of leave account / Calculation of encashment 2._| of LPR / leave on death / invalidation 3._ | Calculation of joining time/joining time pay 4. | Calculation of Pension/gratuity on retirement / death a Calculation of interest on GP Fund Accounts/ Closing 5._| Balance Statement 6. [LPc 7._| TA bill on tour, transfer and retirement Caleulation of taxes (Income Tax, GST ete.) deducted at 8, | source in Accounts Offices) from salaries , contingent and works expenditure Total 100% The weightages given above are for the paper setter. The*examination paper will consist of eight questions; One compulsory question of short notes from Section A & B. Two questions each from Sections A & B. Three question of practical work/ Computations from Section C Alll question carry equal marks (20 Marks) Probationary officers will attempt 5 questions in total which shall be attempted in the following order: 1. One compulsory question of Short Notes from A & B sections. II, One question out of two from Section A TI. One question out of two from Section B IV Two question out of three from Section C SUGGESTED READING LIST 1. General Financial Rules 2. Fundamental Rules and Supplementary Rules; 3. Civil Servants Act, 1973; Page 14 of 444. Appointment, promotion, Seniority and transfer rules; 5. Leave Rules -1980; 6. Compilation of Pension Rules and Orders; 7. Federal Treasury Rules 8. Civil Servants(Efficiency and Discipline) Rules, 2020; 9. Compilation of Service & Financial Rules -up to date amendments; 10, Public Procurement Regulatory Authority Ordinance, 2020 and PPRA Rules with amendments. 11.DDO Hand Book; 12. Government Servant, Conduct Rules-1964 i DETAILED SYLLABUS CONTENTS: SERVICE AND FINANCIAL RULES Sr.# | (SECTION-A)SERVICE RULES 1 Terms and Conditions of Civil Servants ‘Statutory provisions regarding terms and conditions of service of Civil Servants Terms and conditions of Appointment of Public Servants and Probationers Definitions Under FR-9 2 | Structure of Pay and Allowance and other benefits Statutory Provisions regarding pay. | Fixation of pay and Basic Pay Scales | [-* Grant of annual increments. ‘Schemes of Basic scales of pay, Revised and Basic scales of pay Fixation of pay on initial appointments, promotions, adhoc appointments, current charge, additional charge and officiating appointments Fringe benefits: House Rent, Conveyance, Dearness and other Allowances. 3 | TA Rules: TA on Tour and TA on Transfer Preparation of Pay and TA Bills j4__ | Leave 7 Siatutory Provisions regarding Teave | Leave Account under Revised Leave Rules, 1980.Caleulation of leave, Preparation of Leave Accounts. Grant of leave with or without MC | Leave not due, Encashment of LPR, EOL, Other kinds of leave 5 _| Pension Classification and categorization of pensions 6 _ |Government Servants Conduct Rules1964 Page 15 of 44. ° \Civil Servants Efficiency & Disciplint Rules 2020 Procedure of Departmental proceedings against Government Servants, Suspension, Reinstatement, Punishments etc. GP Fund, Benevolent Fund and Group Insurance Allotment of number and maintenance of GPF Account. Cal. of profit on GPF Accounts. Advance from GPF, Final withdrawals Benevolent Fund Rules Group Insurance Rules (SECTION-B) FINANCIAL RULES inancial Control and Budgeting Responsibilities of principal accounting officers. Roles & Responsibilities of CF & AOs Budget Preparation and Implementation. Development schemes and Development Plans. Development and Non Development Expenditure. ‘Delegation of Financial Powers Loans and Advances General conditions governing loans and Advances House Building and House Purchase Advances. Conditions; Mode of payment. Mode of recovery. Calculation of interest ‘Advances for the purchase of Motor Car/Motor Cycle/Cycle; Mode of payment ‘Advances on Transfer/Tour; Mode of payment, Mode of recovery. Purchase and Acquisition of stores ale Public Procurement Regulatory Authority Ordinance, 2020 & PPRA Rules with Amendments Cash Book Receipt and withdrawal from Public Accounts | Tax deductions; Withholding and at source Tax deduction from salary Tax deductions from contingent and works bills (SECTION -C) PRACTICAL WORK Fixation of pay on appointment, promotion and revision of pay scales Preparation of leave account / Calculation of encashment of LPR / leave on death / invalidation Page 16 of 44Calculation of joining time/joining time pay | Calculation of Pension/gratuity on retirement / death Calculation of interest on GP Fund Accounts / Closing Balance Statement LPC TA bill on tour, transfer and retirement Calculation of taxes (Income Tax, GST. etc.) deducted at source in Accounts. Offices) from salaries , contingent and works expenditure Page 17 of a4PAPER- 5: GOVERNMENT ACCOUNTING-1 (NAM) Total Credit Houts: 60(With Books) (75 MARKS) INTRODUCTION: ‘The aim of the syllabus is to ensure that students have knowledge of important elements and concepts of Government Accounting in the light of NAM. This subject provides knowledge and skills in budgetary controls, expenditure policies and procedures and the system of receipts accounting. It imparts knowledge in Bank reconciliation, Self-Accounting entities, and Financial Reporting procedures, Loss and Recoveries of Public Money and Accounting for Liabilities in SAP environment also ensuring reporting for Transactions between Government Entities, besides application of checks and balances by government entities regarding consolidated accounts for procurement and Asset Management as well as Public Account Transactions. Use of Assignment and Personal ledger accounts are also covered within its ambit. It creates awareness pertaining to Salaries and wages, Pension and General Provident Fund under NAM. SYLLABUS EIGHTAGE : W ACCOUNTING MODEL (With Books) SECTION-A T 1 [Introduction and Overview of NAM concepts 2 _ [Financial Reporting Procedures 3 [Budgetary Controls 4 _ [Expenditure 3 _ [Receipts 6 _ [Bank Reconciliation 7__|Iransaction between Government Entities 8__ [Public account Transactions 100% 9° [Project Accounting | 10 [Assignment Accounts and personal ledger accounts TI Loss and Recoveries of Public Money/ Insurance 12 _SelfAccounting Entities 13 Liabilities and Asset Management 14 General Accounting 15 IPSAS Cash Basis (without computations) + The weightages given above are for the paper setter. + The examination paper will consist of seven questions. All carrying equal Page 18 of 44oe mi arks with each question of maximum 15 marks to score. «Probationary Officers will attempt five questions in total. SUGGESTED READING LIST: 1. NAM. 2 3, 4. 5 Accounting Policies and Procedures Manual by DAGP Manual of Accounting Principles by DAGP New Chart of Accounts by DAGP . IPSAS Cash Basis (without Computation) DETAILED SYLLABUS CONTENTS: Sr SECTION-A_ a Introduction and Overview of NAM concepts ‘Organizational structure of the Accounting system The Accounting system [_ Basic NAM definitions and abbreviations Chart of accounts and its elements (with practical exercises) nv Financial Reporting Procedures Introduction to CGA ordinance General Poli Year-end accounting policies - Detailed Procedure Budgetary Controls [__ Introduction General Procedures | Detailed Procedures Specific Budgetary Procedures Expenditure [__Introduction. General Policies ‘Accounting Policies ‘Accounting for Expenditure |__ Detailed Procedure Salaries and wages [__ Pension Payment General Provident Fund Contractor/Work Payments Loan and Advances | Overseas Payments Grants-in-aid, Contributions etc. ‘Assignment Account and Personal Ledger Account Maintenance of Permanent Accounting Records | Page 19 of 44Receipts Accounting for receipts Detail of Procedures Introduction General Policies ‘Accounting Policies Treatment of specific classes of receipt Bank Reconciliations Introduction Overview General Policies Daily procedures Monthly Procedure Transactions between Government Entities Introduction General Policies | Accounting Policies | [Accounting for transactions between Government entities Detailed Procedures Public Account Transactions Introduction General Poli ‘Accounting Polic; Detailed Procedures Reconciliation of Public Account Transactions Reporting of Public Account Project Accounting Introduction: General Policies (Accounting Policies [Accounting for Project Expenditure 10 ‘Assignment Accounts & Personal Ledger Accounts Introduction Policies Detailed Policies ‘Appendix Account Transactions ‘Loss and Recoveries of Public Money/ Insurance _| Introduction General Policies ‘Accounting for Losses and Recoveries Claims against the Government 12 Self-Accounting Entities Introduction General Policies Page 20 of 44‘Accounting Policies Accounting for Self-Accounting Entity transactions Detailed Procedures 13 Liabilities and Asset Management General Policies for Procurement Accounting for Stores _Fixed Assets Management General Policies for Disposal of Fixed Assets ‘Accounting for Proceeds from Disposal General Poli Categories of Liabilities ‘Accounting Policies ‘Accounting Procedures Reconciliation of Liability Records Reporting of Liabilities 14 General Accounting Introduction Retention of Accounting records Maintenance of Accounting Records Use of Suspense Account Control of official forms and cheque books 15 IPSAS Cash Basis (without computations) 16 ae APPM Manual of Accounting Polices Page 21 of a4PAPER - 6 GOVERNMENT AUDITING- FAM (100 Marks) Total Credit Hours: 60(WITHOUT BOOKS) INTRODUCTION: ‘The aim of the syllabus is to ensure that probationers have knowledge of important elements and concepts of Government Auditing in the light of FAM. This subject is designed to provide basic understanding of the procedures of an audit in consonance with Intemational Standards. An exposure to computer assisted audit techniques i-e ACL software will be a part of the training. The Probationers will be required to possess knowledge of the function and es of Office of the Auditor-General of Pakistan. SYLLABUS | Weightage Government Auditing- FAM (Without Books) (Section-A) 1 | Organization and purpose of the Manual Role of the Auditor-General DAGP Audit Standards 2 3 4 DAGP’S Annual Planning Process 5 | The Audit Cycle 6 7 Is 9 Planning the Audit Activity and resource planning for individual audits 80% ’ | Conducting the audit Evaluating audit results 10 [Documentation and working papers 11 | The reporting process {12 |The Audit Report 13 Audit follow up 14 | Quality Assurance (Section — B)Practical Audit Question 20% Case study based on a data bank would be given and probationary officer will conduct practical audit so as to enable them to develop audit observation(s) out of it, Total 100% Page 22 of 44«The weightage given above is for the paper setter. + The examination paper will consist of seven questions. «Probationary Officers will attempt five questions in total as following: I- Four question out of Six from Section A HI- One compulsory question will be required to be attempted from Section B. It will be based on case study model in which probationers will come across a specific situation; financial data and all related information will be provided. The Probationary Officers will have to conduct the practical audit on the given data and then develop audit observation(s). SUGGESTED READING LIST: 1. Financial Audit Manual by the DAGP (2012 Edition) 2. Quality Management Framework of DAGP DETAILED SYLLABUS CONTENTS: | SECTION-A Financial Au jit Manual (Without Books) [1 Organization and purpose of the Manual Purpose of the Audit Manual | Types of audits dealt with | ‘Audit entities dealt with Accounting Responsibility Structure of the Government of Pakistan | Stages of audit work dealt with (Organization of the manual | Links to other guidance material Standard audit working paper kit | Need for professional judgment | Updating the Audit Manual L 2 Role of the Auditor-General | Parliamentary Control and Public Accountability | Introduction to Auditing Legislative Basis i Vision, Mission and Values Constitution’s Relevant Articles: 168-171 as amended Page 23 of 44AGP Ordinance especially focusing on Sec: 7,8,12 and 14 Job of the Auditor Expectations Conditions of Employment Code of Ethics Protection of the Auditor DAGP Audit Standards _ INTOSAI Professional Standards The International Standards of Supreme Audit Institutions (ISSAIs) Fundamental Auditing Principles Level-4-Auditing Guidelines (ISSAIs 1000-4999) DAGP’S Annual Planning Process DAGP Strategic Audit Objectives -—_—_ eres DAGP Audit Scope DAGP Strategic Audit Plans Emerging areas of auditing j_—merging areas ofaudting The annual planning process Integration of audit work Approval process for the budget of centrally led Audits The Audit Cycle Introduction: General planning Activity and Resource Planning Roles and responsibilities Planning the Audit Introduction Step 1-Establish audit objectives and scope | a aed Step 2-Understand the entity business Step 3-Assess materiality, planned precision, and audit risk Page 24 of 44| Step 4-Understand the entity internal control structure Step 5-Determine components Step 6-Determine financial audit and compliance with authority objective, and error/irregularity conditions Step 7-Assess inherent risk and control risk Step &-Determine mix of tests of internal controls, analytical procedures and Substantive tests of details Reliance on other auditors Documenting the strategic planning decision Application to Government- wide Audits ‘Activity and Resource Planning for Individual Audits Introduction Formulate/update Audit Programs Updating staffing requirements and allocating resources Updating budget requirements Updating timing considerations Factors to consider when determining the optimum timing Updating information required from the entity Re-assessing the general and detailed planning Decision for individual audit Documenting the detailed planning decision Updated planning file. ‘Approval of the general and detailed planning decisions Conducting the Audit Introduction Compliance Testing ‘Substantive Testing Evidence ‘Matters to deal with during field work Cause and Effect Analysis Developing conclusions and Recommendations Page 25 of 44Keeping entity official informed Documenting the work performed Custody and maintenance of working paper files Quality assurance during field work Evaluating Audit Results Evaluating Financial Audit Results Known errors, most maximum possible error ikely errors, further possible errors and Determining the cause of errors, violations and deviations Concluding on the results of each test Concluding on the results of each component Concluding on the financial statements as a whole Dealing with unacceptable results Dealing with acceptable results Documenting the evaluation process Evaluating Regularity Audit Results Quality assurance during the evaluation phase 10 Documentation and Working Papers The Need for Documentation and Working Paper Files The Purpose of Working Paper Files The Quality of Working Paper Files Custody and Maintenance of the Working Paper Files ll The Reporting Process Introduction Focus on the Reporting Process Clearing Observations, Conclusions and Recommendations Obtaining Management Responses ee | Management representation letter Audit completion checklist Page 26 of 44Producing the Audit Report | Review of reports by others 12 The Audit Report Introduction The certification report and types of opinion | ‘Audit reports other than opinions on financial statement | Reporting style and format ‘Compliance and Performance Reports 13 | Audit Follow Up Introduction Timing of the follow up | Determining the desired level of assurance Performing the follow up Reporting the results of the follow up Performing additional follow ups 14 | Quality Assurance | Introduction | General quality assurance techniques described in this manual Quality assurance during planning phases for individual audits | Quality assurance during the field work phase for individual | audits Quality assurance during the evaluation phi Quality assurance during the reporting phase | Quality assurance during the follow up hase | Other quality assurance procedures (Section B) Practical Audit Work Heeetfudy based on a data bank would be given and probationary officer will Conduct practical audit and develop audit observation(s) out of it Page 27 of 44PAPER -7 (75 MARKS) GOVERNMENT ACCOUNTING-II Total Credit Hours: 80(With Books) INTRODUCTION The syllabus aims at giving insights into peculiarities of Government Accounting in Pakistan Military Accounts Department, Pakistan Railways Accounts Department, Pakistan Post Accounts and Works Accounts Department. SYLLABUS WEIGHTAGE Government Accounting — IT - SECTION A 1] Pakistan Military Accounts Deparment 235% SECTION B 2 | Pakistan Railways Accounts Department 25% SECTION C | 3. | Pakistan Postal Accounts - 25% [ SECTION D 4 Public Works Accounts Department 25% [ TOTAL 100% © The weightage given above is for the paper setter. © The examination paper will consist of eight questions: two questions in each in every section. © Probationary Officers will attempt 05 questions by selecting at least one question out of two from all Sections A, B, C and D. Suggested Readings List: Military Accounts Code 2008 Pakistan Railways Accounts Code Vol -I, II & III PT&T Account Code PLI Manual (Extracts) CPWA Code CPWD Code Scheme of Departmentalization of Pak PWD Treasury Rules Vol-I SN AweYNH DETAILED SYLLABUS CONTENTS: Page 28 of 441. Classification of Accounts . Finance and revenue Accounts Accounts between different Accounts Circles Pro forma Accounts . Cash Assignments 2. 3 4, Appropriation Accounts 5. 6. 7. . Disbursement (Section -B)Pakistan Railways Accounts Working of the traffic accounts branch Budgeting Process Main functions of Railways Accounts Department Principal subsidiary books of account vay ete) Organization of workshops and procedure for accounting expenditure (Section - C)Pakistan Post Accounts 1. Core Activities; Mail, Parcel, Money Orders, ete. 2. Agency Functions; National saving schemes, BISP, License fees, Pension Payments ,etc. 3. Postal Life Insurance, Insurance Functions 4. Consolidation and Reconciliation (Section -D)Public Works Accounts Organizational structure of PWD and duties of PWD Officers Definitions Main features of the system of Public Works Departm« Three fold duties of Divisional Accountants Modes of obtaining cash from Treasuries and manner of payments Initial Accounts of PWD. Stock/Store Accounts of PWD - Transfer entry Non-Government Works 2)a}o}y} ail e|- Page 29 of 44PAPER -8 Information Systems Audit Total Credit Hours: 60 (Without Books) INTRODUCTION (100 MARKS) This course is designed to provide students with a basic understanding of Information Systems with a focus to enable them to grasp the processes of auditing information systems. SYLLABUS | WEIGHTAGE "INFORMATION SYSTEMS AUDIT ] | SECTION A 1 _ | Introduction to information systems 20% 2 | The process of Auditing information systems 20% ~ SECTIONB 3. |IT Governance 15% 4 [Information system acquisition, Development and 15% Implementation SECTION C “fo 3 Information System Operation Maintenance and 15% Service Management 6 | Protection of Information Assets 15% TOTAL 100% © Weightage given above is for the paper setter. © Paper will comprise 100 MCQs. * The number of MCQs will be according to the percentage given above. Suggested Readings: 1- CISA Review Manual 26"/27" Edition 2- CISA Question Bank 11" Edition 3- Allin One CISA Page 30 of 44DETAILED SYLLABUS CONTENTS: t sr INFORMATION SYSTEM AUDITING (Without Books) SECTION-A 1 | Introduction to Information Systems Components of Information systems __ Hardware Types Software Types @ Importance of information systems |_2_| ‘the process of Auditing information systems Management of the IS Audit Function ___© Organization ‘of the IS Audit Function __ IS Audit Resource Management ~ Audit Planning Performing An IS Audit ~ Audit Objectives | sof Audits Le ABT Methodology — sed Auditing _ «Audit Risk and Materiality = IS Audit risk assessment techniques, * Audit Programs © Compliance versus substantive testing | » Evidence — interviewing and observing personnel in n performance of their duties «Sampling Using the services of other auditors and experts @ Computer Assisted Audit Techniques _ | ‘Communicating audit results | @ Audit Report structure and contents _ l [Le Audit documentation Page 31 of 44¢ Closing findin; * Case studies © Answers to the case studies SECTION-B IT Governance Governance of Enterprise IT «_ IT governing committees *_Infromation security governance Information system strategy * Strategic planning IT steering committee | Policy and procedures Policies * Procedures Risk management + Developing a risk management programme Risk management process Information technology management practices _| | _¢ Human resource management Sourcing practices | + change management LIT organizational structure and responsibilities * IT role and responsiblities © Segregation of duties with in IT _| + Segregation of duties control Auditing IT Governance Structure and Implementation Reviewing documentation * Reviewing contractual commitments | Business continuity planning _| | ¢ IT business continuity planning © disaster and other disruptive events Business continuity planning process «Business continuity policy * Planning incident management + Business impact analysi Development of plans © Other issues in plan development Page 32 of 44+ component of a plan * Plan testing : Auditing business continuity e Review Evaluation of test result Evaluation off site storage Interviewing "Security at offsite facility Reviewing processing contract Reviewing insurance coverage Case Studies jelelelelele Information Systems Acquisition, Development and Implementation * General aspect * Context environment * organizational forms © Culture © Objectives "© Roles and responsibilities Project management practices Initiation __* Project planning Execution * Controlling © Closing Business application development __ * SDLC approach ‘* Description of SDLC | Business application systems E-commerce + Electronic data interchange «Email point of sale system | ¢_E-banking ‘nance + Payment systems E-Fund transfer e ATM * voice response Page 33 of 44Accounting system Image processing Controll systems «Artificial Intelligence © Business intelligence Infrastructure development |__« Critical success factor «Hardware acquisition _ Software acquisition Software implementation Information system maintenance * Change Management * Configuration Application controls |__* Input controls «Processing procedures output control ‘Auditing Application Controls ¢ Flow of transactions [+ Risk assessments [© Observing Data integrity © Online data integrity * Test applications Online auditiing «Auditing techniques ‘Auditing System Development e Project management « Feasisiblity stud; |e Requirement Definition Software acquisition * Detail design * Testing — _ _ Implementation @ Post implementation Change procedure Case studies | Page 34 of 44 *SECTION-C Information System Operation Maintenance and Service Management IT service management + Incident and problem mangement ¢ Support ‘© Change management « Release Management Qualilty Assurance IT Asset management Information System Hardware ‘Hardware component Maintenance * Monitering * Capacity Mangement IS Architecture and Software _ © Operating systems Access control software ‘© Communication software Data mangement _Data base management IS network infrastructure «Enterprise network + Types *_ Services ‘Auditing Infrastucture and operations Disaster Recovery |__+ Recovery Point objective /Time objecive ° Recovery strategies ‘Recovery alternatives + Development of disaster Recovery * Organization and Assignment Backup and restoration «Disaster recovery testing methods ¢ Invoking disaster recovery plans * Case studies and answers Protection of Information Assets Page 35 of 4aInformation security managelnent Classification of information assets Mandatory and discretionary access controls |__© Computer crime *_ Security incident handling and response Logical Access «Exposure [+ Familirazation with enterprize _| [__« Paths of logical access Logicall access control software © Identification and authentication ‘* Authorization issues ® Storing Retrieving Transporting and Disposing of confidential information Network Infrastructure security LAN security Client server security * Wireless security threats © Inemet threats and security Encryption IPS and IDS and Firewalls ‘Auditing information security management framework. ‘Auditing Logical Access Techniques for testing securit Investigation techniques [Auditing network infrastucture security «Auditing remote access [Environmental exposeures and control | |} Exposures and Issues Controls |e Auditing environment controls | Physical access exposures and controls Physical access issues exposure Physical access control * Auditing physical access | Social Media Cloud computing Page 36 of 44PAPER 9: (100 MARKS) OFFICE COMMUNICATION SKILLS Total Credit Hours: 60 (Without Books) INTRODUCTION This syllabus aims to make the Probationary Offices proficient in drafting official correspondence within and among various government departments/organizations according to the official instructions and rules as laid out in Secretariat Instructions and Rules of Business. SYLLABUS WEIGHTAGE SECTION-A 1_[ Secretariat Instructions 1973 40% 2 | Rules of Business 1973 - SECTION-B Drafting Official Correspondence/Reports 1 | Drafting Inquiry Reports 60% 2. | Dratting UO/DO, and Notifications/OM/Corrigendum 3_[ Draft Noting and Summaries [4 _| Draft Minutes of Meetings 5 | Audit Report Writing Total 100% 3 questions and section B will consist of 4 questions. * Probationary officers will attempt five questions: I- Two question out of three from Section A ‘The weightage assigned against each section are meant for the paper setter. The examination paper will consist of 7 questions. Section A will consist of II- Three question out of 4 questions from Section B including one compulsory question of preparing summary/ note of given correspondence. Suggested Reading List: I- Secretariat Instructions 1973 2- Rules of Business 1973 3+ Compilation on Official Correspondence Page 37 of 44DETAILED SYLLABUS CONTENTS: ) x Office Communication Skills (Without Books) SECTION-A 1 _| Secretariat Instructions 1973 2__| Rules of Business 1973 (a) _| Consultation among divisions Inter-division procedure Secretaries Committee Consultation with Cabinet Division Consultation with Establishment Division Consultation with Finance Division ‘Consultation with Foreign Affairs Division Consultation with Law Division (by _| References to the Prime Minister (© | Cabinet Pr Cases to be brought before Cabinet Method of disposal by Cabinet ‘Manner of submission of Cabinet Cases Procedure regarding circulation of Cabinet cases Procedure regarding Inter Provincial conference Procedure regarding National Economic Council SECTION-B jure 1 | Professional writing ‘© OM and corrigendum * UO/DO Summaries © Notifications ~~ e Noting/Drafting, «Communiqué Press Note Drafting of formal Minutes of the meeting [ «Writing on Enquiry report Page 38 of 44@apeR- 10: (100 MARKS) BUSINESS LAWS AND TAXATLON Total Credit Hours:60 (Without Hooks) {TRODUCTION The aim of this paper is to test the understanding of significant Mercantile, Company and Taxation laws in Pakistan, This should enable the candidates to prepare themselves for a professional approach to problems connected with business and taxation laws encountered in the performance of their duties as accountants in practical life. Mercantile &Company Laws This course is to provide candidates with knowledge of provision of Companies ‘Act, 2017 and to develop amongst them an understanding of incorporation of companies, shares and management and administration. Taxation Laws (Income Tax Law & Sales Tax Act) The aim of this part of the syllabus is to develop proficiency amongst the candidates of the core areas of Income Tax and its chargeability as envisaged in the Income Tax Ordinance, 2001 (along with the Sales Tax Rules, 2002 relevant to coverage of the syllabus as well as Sales Tax Act 1990 and its rules (relevant to coverage of syllabus). Page 39 of 44SYLLABUS WEIGHTAG! BUSINESS LAWS & TAXATION ‘Business Laws SECTION-A Contract Laws [Indemnity Agency Ja lo |v Negotiable Instruments. Sale of Goods a | Partnership. 35% SECTION-B Preliminaries of Company Law IRole of SECP as an industry regulator and Incorporation of lcompanies and matters incidental there to | ‘Commencement of business by Public Company Meeting and Proceedings ale ele)» iF [Directors, Company Secretary, CFO, Chief Executive and [Managing Agents Role of company Auditors 35% SECTION-C [Taxation [Income Tax Ordinance, 2001 iHeads of Income, Computation of Income, Determination o 'Tax Liability and Payment of Taxes (Types of Person and Their Taxation Procedures and Administration 2. Sales Tax Act 1990 (Basic concepts) 3.__ Provincial sales Tax (Services), Act 30% Total 100% «The weightage assigned against each section are meant for the paper setter. «The examination paper will consist of seven questions divided into three Page 40 of 44sections A, B, &C and one compulsory question pertaining to definitions from all sections. * All sections will have two questions besides one compulsory MCQ question from all sections. * Probationary officers will attempt Five Questions in total which shall be attempted in the following order; 1 One Compulsory Question from all Sections (ie MCQs/Short questions) 0 Four questions from section A, B & C by selecting at least ‘one question from all sections All question carry equal marks. SUGGESTED READING LIST: Companies Act 2017 . Business/ Mercantile Law . Income Tax Ordinance 2002 and rules made there under 1 2. 3, 4. Sales Act 1990 and Rules made there under Page 41 of 44Sr# SECTION-A DETAILED CONTENTS BUSINESS LAW. 1 Introduction to Legal System + Sources of law; process of legislation and the legal system in Pakistan 2__| Contract Laws + Agreement, Contract, Nature and kinds of Contracts: Essentials of Contract; Offer or Proposal; Acceptance; Consideration; Flaws in Contracts; Flaw in Capacity; Flaw in Consent; Unlawful agreements; Void agreements; Voidable agreements, Novation, Restitution; Quasi-contracts; Various Discharges of contract; Doctrine of Frustration; Remedies for breach of contract. 3 | Indemnity + Contract of Indemnity; Contract of Guarantee; Rights of Surety; Discharge of Surety. 4 | Agency * Definition and general rules; Creation of agency; Classes of Agents; Delegations of Authority; Duties and rights of agents; Scope and Extent of Agent’s authority; Responsibilities of Principal to third parties; personal liability of agent to third party; termination of agency 3__| Negotiable Instruments + Promissory notes & Bills of exchange; Bank Drafts, Cheques) Distinction between cheques and Bills; Inland and Foreign Instruments; Negotiation; Acceptance; Presentment; Dishonor Discharge; Compensation 6 _ | Sale of Goods + Contract of sale; Sale and Agreement to sell; Sale and transactions distinguished; Formation of a contract of sale; Subject matter of contract of sale; The Price 7_| Partnership + Law of Partnership, Registration of Firms + Relations of Partners. Rights and Duties of Partners Dissolution of Firm Page 42 of aaSECTION-B of Company Law + Definitions + Subsidiary and associated companies > Application of Companies Ordinance to non-trading companies and its non-applicability to certain corporations ete. ~ Ordinance to override memorandum and articles ete. > Application of the Companies Act, 2017 to companies governed by special enactment r J] Role of SECP as an industry regulator and Incorporation of | companies and matters incident thereto ‘* Obligation to register certain ‘associations, partnerships ete. as companies > Form of Memorandum of Association (MoA) and Articles of Association (AoA) > General provisions with respect to registration of memorandum and articles ~ Provisions with respect to names of companies + Associations not for profit ~ Companies limited by guarantee = Conversion of private limited company to a public limited company and vice versa and other matters + Single Member Company (SMC); Conversion of(SMC) into private limited company or into a public limited company and vice versa and other matters + Consequences of carrying on business with less than the legal minimum number of members ~ Effect of incorporation and concept of separate legal entity, meaning of promoters [10 | Commencement of business by Public Company Tl | Meeting and Proceedings 12 |Directors, Company Secretary, CFO, Chief Executive and Managing Agents 13 _| Role of company Auditors Page 43 of 44Sr# SECTION-C TAXATION Income Tax Ordinance, 2001 «Basie Concepts of Taxation = Preliminary = Charge of Tax > (Il) Common Rules -__Administration ~_ General * Heads of Income, Computation of Income, Determination of Tax Liability and Payment of Taxes = (EX) Tax on Taxable Income - Minimum Tax ~_(V) (LIV) Advance tax and Deduction of Tax at Source * Types of Person and Their Taxation > _ (I) AID Individuals ¢ Procedures and Administration -_ Returns -__ Assessments = Appeals = Collection and Recovery of Tax -_Records, Information Collection and Audit - Returns * Sales Tax Act 1990 Basic concepts) -_ Definitions = Scope and Payment of Tax -_ Registration = Book keeping and Invoicing Provincial sales Tax (Services), Act ~ Definition, Scope and payment of tax, Registration, Book keeping and invoicing, Returns Page 44 of a4