aao promotion exam newsyllabus it

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NEW SYLLABUS FOR AAO (B-16) EXAMS

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PREAMBLE

The syllabus of Accountants Promotion Examination (APE) of Pakistan

Military Accounts Department (PMAD) has been reviewed to make it in line with

the latest syllabus of Pakistan Audit Department (PAD). The aim is to have a

standardized pattern of curriculum to meet the inter-departmental professional

commitments, while retaining focus on peculiar requirements of Defence Services.

The revised syllabus includes latest techniques of Government accounting

and auditing covering specialized areas of Government rules/regulations. Besides,

Information Technology has also been incorporated in the curriculum to cope with

the modern challenges of office automation and computerization, aimed at

providing efficient professional services to the clients.

Rawalpindi Muhammad Izhar-ul-Haq April, 2003 Military Accountant General

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INDEX

S.No Particulars Page No.

TERMS AND CONDITIONS III TO VII

1 Eligibility III

2 Submission of Candidature III

3 Examination Fee III

4 Examination III

5 Paper Setting V

6 Pass Marks VI

7 Exemption VI

8 Results VI

9 For Old Candidates VII

PART-I

1 Business Communication & Behavioral Studies 01

2 Financial Accounting 03

3 Legal frame work of Public Sector Accounts & Economics (Theory)

05

4 Business Mathematics and Statistics (Theory) 07

5 Pay, Pension & TA (Theory) 09

6 Pay Pension & TA (Practical) 11

PART-II

1 Cost Accounting. 14

2 Auditing / Government Auditing. 16

3 Store and Works (MES) Theory 20

4 Store and Works (MES) Practical 22

5 Information Technology (Theory) 24

6 Govt. Accounting (Theory) 25

7 Govt. Accounting (Practical) 26

8 Exemption Scheme (Annex-A) 27

9 Admission form (Annex-B) 28

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TERMS AND CONDITIONS

1. ELIGIBILITY

Admission to the examination will be opened to both graduates and non-graduates

permanent and temporary Senior Auditors/Junior Auditors of the Military Accounts Department.

To be eligible for appearing at the examination an individual must have put in at least three years

service (including continuous temporary service) in the Military Accounts Department. However

graduate Auditors will be allowed to appear in the examination on completion of one year service

in the department

Senior Auditors and Junior Auditors are eligible to take part-II of AAO Promotion

Examination (New syllabus) after passing the part-I examination. There is no limit of number of

chances in the new syllabus.

2. SUBMISSION OF CANDIDATURE

The Controllers will submit to the M.A.G. on the dates prescribed by him a statement in the

prescribed form (Annex-B) of the candidates who are recommended to appear at the next

examination.

3. EXAMINATION FEE

Each candidate seeking admission to the examination will pay an examination fee of Rs.

100/-. The candidates will not be allowed to withdraw their names from the examination nor will

their fee be refunded once their candidature has been accepted by the MAG.

4. EXAMINATION

In each of the subjects mentioned in the syllabus, the theoretical papers will be answered

without books while the practical papers will be conducted with the help of books.

Objective and written test components will be administered separately one after the other in

the same session. Similarly, examination of a paper divided into sections will be

administered separately in the same session.

The examination will be held in two parts. Part I and Part-II will consist of the following

papers: -

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PART I

Paper – I

Business Communication and Behavioral Studies.

Paper – 2

Financial Accounting.

Paper – 3

Legal Frame Works of Public Sector Accounts and Economics (Theory).

Section A Legal Frame Works of Public Sector Accounting.

Section – B Economics.

Paper –4

Business Mathematics and Statistics (Theory).

Section –A Business Mathematics.

Section – B Business Statistics.

Paper –5

Pay, Pension & TA (Theory).

Paper – 6

Pay Pension & TA (Practical).

PART –II

Paper – 1

Cost Accounting.

Paper - 2

Auditing / Government Auditing.

Section A Auditing.

Section –B Government Auditing.

Paper –3

Store and Works (MES) Theory.

Section –A Store Accounting.

Section –B Works (MES) Accounts.

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Paper – 4

Store and Works (MES) Practical.

Section –A Store Accounting.

Section –B Works (MES) Accounts.

Paper –5

Information Technology (Theory).

Paper –6

Government Accounting (Theory).

SECTION –1 General Concepts, Procedure and Practices.

SECTION –2 General Rules & Procedures – (Defence Accounts)

PAPER –7

Government Accounting (Practical with Books).

SECTION –1 General Concepts, Procedure and Practices.

SECTION –2 General Rules & Procedures – (Defence Accounts)

Note:- Time allowed to attempt each paper will be three hours.

5. PAPER SETTING

In setting a paper, the examiner will give the following weightage to objective and written

test components for the testing of knowledge and application thereof. These grids are independent

of marks allocated in specifications grids given in the syllabus of each subject. The grids are given

for guidance purpose only and minor deviations in the setting of a question paper may be expected.

Components Marks

MCQs/SFQs 25

WT 75

Total 100

MCQs = Multiple Choice Questions

SFQs = Short Form Questions

WT = Descriptive and Computational Questions

6. PASS MARKS

Pass/aggregate marks for each part of are as follows: -

a) Pass marks in each paper 40%

b) Aggregate marks for each part of exam 45%

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7. EXEMPTIONS

Candidates securing at least 60% marks in any paper will be given exemption in that paper.

Any candidate failing in any part of the AAO Promotion Examination (New Syllabus) or (Old

Syllabus) but securing at least 60% marks in any paper will be exempted from appearing in that

paper in future examinations provided that where there are theoretical and practical papers in a

subject, the candidate who passes both papers by securing at least 40% marks in each paper and is

able to secure 60% or more marks on the aggregate will be eligible for exemption in the relevant

subject(s). The examination will be qualifying and not competitive.

Exemption for various subjects / papers of AAO Promotion Examination (new syllabus)

shall also be admissible as shown in Annexure-A.

8. RESULTS

The results of AAO Promotion Examination (New Syllabus) or (Old Syllabus) once

declared by the M.A.G. are absolute and final. Representations for re-evaluation or re-examination

etc. of answer books should, therefore, not be forwarded to the M.A.G. The complete result of the

examination will be communicated by the M.A.G. to the office of all controllers for information of

all concerned.

The result of the failures in the examination showing the marks gained in each subject and

the total marks will be notified by the Military Accountant General for information of all

concerned.

9. FOR OLD CANDIDATES

The old Syllabus of APE will be discontinued after allowing Candidates three chances in

the following manners.

(i) A Senior Auditor/Junior Auditor who had appeared in the APE (Old Syllabus) in the past

shall be allowed three chances to pass the APE-I irrespective of the fact whether or not he

had obtained any exemption in any paper.

(ii) If any candidate of the above mentioned category passes the APE part-I examination

within three chances, he shall be allowed another three chances to pass the APE Part-II.

(iii) Candidates who have already passed the APE Part-I shall be allowed three chances to pass

the APE Part-II.

(iv) Exemptions obtained in Parts-I & II of APE shall remain valid in the AAO Promotion

Examination (New Syllabus) as shown in Annexure.

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(v) The candidates who passed APE Part-I and could not pass part-II in old syllabus in given

chances shall be exempted in new syllabus.

Note:- Categories of candidates falling under clause i & iii can appear only in first three

examinations after introduction of new syllabus and those falling under clause-ii can appear in

first three examinations after passing part-I.

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NEW SYLLABUS FOR ASSISTANT ACCOUNTS OFFICERS

PROMOTION EXAMINATION FOR P.M.A.D.

PAPER- 1

BBUUSSIINNEESSSS CCOOMMMMUUNNIICCAATTIIOONN AANNDD BBEEHHAAVVIIOORRAALL SSTTUUDDIIEESS

MARKS-100.

AIMS: The aims of the syllabus are:-

a) To test the candidate's knowledge of Business English with particular emphasis on the

evaluation of capabilities to express lucidly and in grammatically correct English in an

imaginative and well-reasoned manner.

b) To test the candidate's ability to carry out Public Sector correspondence effectively, design

formats of reports, writing of reports and design various forms used for information and data

collection.

c) To test the candidate's ability for interacting with people, including participating in meetings,

interviews and communication.

d) To acquaint candidates with elements of organizational behavior, motivation, decision making

and problem solving skills.

e) To give the candidates exposure to principles of management and office procedures.

SPECIFICATION GRID

Sr.

#

SYLLABUS CONTENTS AREA

WEIGHTAGE

MARKS

1. Principles of applied grammar 20

2. Public sector correspondent Report, Writing,

Précis Writing

40

3. Inter-personal skills and

behavioral sciences '

20

4. Organization and Methods 20

Total 100

CONTENTS

1. PRINCIPLES OF APPLIED GRAMMAR

An understanding of the principles of applied grammar including parts of speech and tenses;

dialogues and idioms commonly used in social and business context synthesis of sentences précis

writing; paraphrasing; and composition including essay writing.

2. Public sector correspondence: Kinds of letters, drafting official correspondence, i.e, letters,

office memoranda, U.O. Note, D.O. Letters, telegrams, half-margin etc., basic qualities of letters

and other communications, accuracy and coherence, style to readers taste.

PART-1

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3. Précis Writing: Précis of correspondence, notes and passages etc. Objects of précis-

writing, essential of good précis; form and style, omission of details, Drafting official

correspondence.

4. Report Writing: Principles and practice

5. a) Inter-personal skills

Importance of communication, process of communication barriers in communication.

b) Behavioral sciences The challenges faced by the management; motivation theory; types of motives; goal

setting; leadership theory; dealing with job stress; and decision making.

6. ORGANIZATION & METHODS

Management principles, organization techniques, office management.

Introduction to systems and procedures, flow charting, work distribution, job description,

record management.

BBOOOOKK RREECCOOMMMMEENNDDEEDD

FUNCTIONAL ENGLISH

Name of the Book Author

Management English Course Book K: E. Rowland’s

Business Communication Today Courtland L.Bovee, John V. Thill

Functional English Blundell, Higgins, middle miss

Management (Hodges)

Notes prepared and supplied by (HRM) Wing.

INTER-PERSONAL SKILLS

Name of the Book Author The Interpersonal Communication Book, 44

th Joseph A. Devito

Interplay: The Process of Interpersonal Ronald B. Adier Lawrence

Communication (3rd

Edition) B. Rosenfeld

Interpersonal Communication (6th

Edt.) Prof William Heney

BEHAVIORAL SCIENCES

Name of the Book Author Organizational Behavior (3

rd Edition) Fred Lufthansa

Management & Organizational Behavior Laurie J. Mul

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PAPER—2

FFIINNAANNCCIIAALL AACCCCOOUUNNTTIINNGG

Marks 100.

AIM

To test the candidate's ability to understand accounting theory and practices; and prepare and

analyze the financial statements of limited companies.

SPECIFICATION GRID

Syllabus Contents Area Weightage

1 Accounting theory 10

2 Financial accounting practices 30

3 Accounts of Limited Companies 20

4 International Accounting Standards 10

5 Receipts and Payment Accounts 10

6 Objective and Interpretation of Financial

Statements

20

Total 100

CONTENTS

1. Accounting Theory

Fundamental accounting concepts; definition and scope of financial accounting; use of

accounting terms; conceptual framework of accounting; users of financial statements asset

valuation alternatives; historical cost, replacement cost, net realizable value and economic value,

revenue recognition; capital or revenue treatment; the good-will concept; International Accounting

Standards - 1, 2, 16 and 18.

2. Financial Accounting Practice

Principles of double entry book keeping; method of keeping and presenting accounts books

of prime entry (cash book, petty cash book, sales journals, purchase journals, purchases and sales

return journals etc); principal and subsidiary ledgers; trial balance; trading account and balance

sheet; manufacturing and profit and loss accounts; control accounts and reconciliation; issue,

discounting and dishonoring of bills of exchange; transactions through banks, rectification of

errors, bank reconciliation statements; capital expenditure; revenue expenditure and deferred

revenue expenditure; fixed assets and method of calculating depreciation; provisions;

appropriation and transfers to reserves; types of reserves account receivables, bad debt expense

and provision for doubtful debts; valuations of stock; LIFO, FIFO, average cost and moving

average cost.

3. Receipt and payment accounts etc,

Receipt and payment and income and expenditure accounts; and preparation of accounts

from incomplete records.

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4. Accounts of limited companies

Accounting of limited companies in line with statutory provisions and international

accounting standards (excluding liquidation, reconstruction, amalgamation and consolidation) and

simple cash flow statements.

5. International Accounting Standards

Knowledge and application of prescribed IASs (IASs prescribed as follows: 1, 2, 5, 8, 9,

10, 11, 13, 16, 17, 18 and 23).

6. Objectives and interpretation of financial statements User groups including shareholders, managers, employees, government, creditors, analyst

and advisors and the public and their information needs. Characteristics of useful information and

the problems associated with its production, significant accounting ratios and their relationship.

RREECCOOMMMMEENNDDEEDD BBOOOOKKSS

FINANCIAL ACCOUNTING


Book-keeping and Accounting Spicer and Pegler

Business Accounting Frank Wood

Advanced Accounts M.C. Shukla and T.S. Grewal

Accounting Meigs, and Meigs

Principles of Accounting M.A. Ghani

Fundamentals of Accounting Nisawonger and Fees

Accountancy William Pickles

Advanced Accounting R.L. Gupta

*******************************************

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PAPER –3

LLEEGGAALL FFRRAAMMEE WWOORRKKSS OOFF PPUUBBLLIICC SSEECCTTOORR AACCCCOOUUNNTT AANNDD EECCOONNOOMMIICCSS

((TTHHEEOORRYY))

Marks.—100.

(IN TWO SEPARATE SESSIONS)

SECTION (A) MARKS - 50

LEGAL FRAME WORKS OF PUBLIC SECTOR ACCOUNTING

AIM: To acquaint candidates with some selected laws in Pakistan and to develop amongst them

an understanding of their application,

SPECIFICATION GRID

Sr.

# SYLLABUS CONTENTS AREA WEIGHTAGE

1 Introduction to legal system 15

2 Contract Act 15

3 Company Act 10

4 Taxation 10

Total 50

CONTENTS

1. Statutory provisions and the legal system in Pakistan covering Audit & Accounts.

2. Principles relating to and application of laws of contract (including contract of indemnity and

guarantee, bailment and agency).

3. Taxation, Company's Law & Negotiable Instruments Act



Students Ed. Of Polleck & Mulla's Indian Contract Act F. D. Mulla

All Bara Acts-Contract Act, 1872, Sales of Goods Govt. of Pakistan

Constitution of Pakistan, 1973

Pakistan (Audit & Accounts) Order, 1973

The Income Tax Ordinance, 1979 Govt. of Pakistan

The Income Tax Ordinance 1979 Notes, Circulars, etc S. A. Salam

Practical Taxation Ikram-ul-Haq

Guide Income Tax Law Raza Naqvi

Income Tax Law with practical Problems Khawaja Amjad Saeed

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SECTION (B) MARKS - 50

ECONOMICS

AIM:

The object of the course is to equip the candidates with the main economic concepts and

their use and relevance in economic analysis in the context of Pakistan's economy and as an

introduction to the economic environment of accountancy as well as methods of analysis relevant

to the study of financial decisions.

SPECIFICATION GRID

Sr.# SYLLABUS CONTENTS AREA WEIGHTAGE

1 Principles of economics 25

2. Economics of Pakistan 25

Total 50

CONTENTS 1. Basic concepts; economic system; demand and supply; indifference curve analysis;

consumer preference; conditions of equilibrium of a firm, price mechanism; theory of production

and factors of pricing; difference between competitive and monopolistic conditions; laws of return,

income determination analysis; distribution of national income and productivity theory, general

equilibrium, inflation; and government fiscal and monetary policies.

2. The main features of Pakistan's economy; fiscal and monetary policy of the Government

of Pakistan; nature of money and banking; international trade and balance of payments with

special reference to Pakistan; economic growth and role of Government therein; main features of

current development plan of Pakistan and trade policy; main features of the economic system of

Islam and distribution of income and wealth in Islam.


Name of the Book Author Economics K. K. Dewett

Economics: International Studies Edit Paul A. Samuelson

Introductory Economics, Fourth Edition G.F. Stanlak

Economic: 2nd

Edition David Begg

Introduction to Economics A. Caimcross

A Text Book of Economics Theory Stonier and Hague

Behnam's Economics S.W.Faish

Annual Economics Survey Ministry of Finance

Eighth Five-year Plan (1993-98) Planning Commission

Trade, Finance and Development Russel and Mohammad

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PAPER- 4

BBUUSSIINNEESSSS MMAATTHHEEMMAATTIICCSS AANNDD SSTTAATTIISSTTIICCSS ((TTHHEEOORRYY))

Marks.—100.

SECTION (A). Marks. 50

BUSINESS MATHEMATICS

AIM

The course is designed to provide an understanding of elementary knowledge of topics of

mathematics as applied in the decision making of a business. Skill and ability for simple

application is needed.

SPECIFICATION GRID


1. Section – 1 25

2. Section – 2 25

Total 50

CONTENTS 1. Using mathematics in business; fundamentals of mathematics; numbers, integers decimals

and fractions; sets and notations, revision of elementary algebra including binomial theorem and

partial fractions; mappings; calculus; idea of limits derivative of algebraic, exponential and

logarithmic expressions; snip; difference product and quotient rules of differentiation; chain rule

and composite functions second order derivation with maxima, minima and point of inflection with

application in business; marginal analysis; and binary numbers.

2. Factorizations; Sequence and series; arithmetic and geometric progression; simple

simultaneous and quadratic equations and graphs; indices and logarithms; ratio and proportions

percentages simple and compound interest; annuities; and discounting and present values.


Name of the Book Author Business Mathematics L. W. T Stafford

Business mathematics Steen C. Lawlor

Mathematics for Business

& Economics M. M. Mirza

Applied mathematics for Business,

Economics and Social Sciences Frank. S. Budnick

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SECTION (B) MARKS. 50

BUSINESS STATISTICS

AIM: To provide an understanding of elementary knowledge of statistical techniques in so far as

these are relevant to the operation and decision making of a business. Skill and ability for simple

application is needed.

SPECIFICATION GRID


1. Section – 1 25

2. Section – 2 25

3. Total 50

CONTENTS

1. Aim and methods of statistics; collection, presentation (including diagrams and graphs)

tabulation and checking data; use of statistics in presentation of reports; measures of central

tendency and dispersion with advantages and disadvantages of various methods; Skew ness and

kurtosis; correlation and regression; index numbers; shifting of base year and simple and weighted

aggregative price indices.

2. Time series; counting techniques; permutations and combinations, probability; laws of

probability; theoretical distributions, random sampling, sampling, distribution of means;

knowledge of stratified, systematic and cluster sampling; statistical inference, estimation and test

of significance (only z and t-tests are required).


BUSINESS STATISTICS

Name of the Book Author Statistics Sher Mohammad Chaudhry

Wheldon's Business Statistics

& Statistical Methods Thirkettle

Theory and Problems of Statistics Murray R. Spiegal

Statistics, Theory and Practice M. K. Ghosh and S. C. Choudhry

Statistics AR. llersic

Statistical Quality Control E. L. Grant

Modem Business Statistics Freund and Williams

Business Statistics Richard and Lacave

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PAPER. 5

PPAAYY,, PPEENNSSIIOONN &&TTAA ((TTHHEEOORRYY))

Marks.- 100

AIM:

To acquaint candidates with the application of Service & Financial Rules of Government of

Pakistan pertaining to Defence audit branch,

SPECIFICATION GRID


1 Pay & Allowances 55

2 Pension Rules 20

3 TA Rules 25

Total 100

CONTENTS

PAY PENSION AND T.A, RULES

Pay and allowances of commissioned officers, nursing services, civilians, JCO's, warrant

officers and petty officers, other ranks, reservists re-employed, religious and casual personnel,

personnel becoming casualties, leave, emoluments.

Initial allowance, recurring allowances, occasional allowances, fees to examiners, advances

(admissibility), recovery and stoppages) allowances admissible to units, formations and officers.

Pay, leave and pension rules (applicable to PMAD).

Pay accounting rules and procedure, passage rules and regulations, T.A. rules and procedure.

Leave rules, pension rules and procedure


Pay and Allowances Regulations (Vol. I and II)

Financial Regulations, Parts I and II (portions relating to pay, leave allowances and pensions)

Pension Regulations Part I, II and III

CSR (Pay, Leave and Pension rules as applicable in PMAD)

Pay Accounting in Fields Service - General Instructions

Passage Regulations, Supplementary Rules (in FR & SR)

Accounts Manual (War), Regulations for PAF, Regulations for PN

Regulations for the Army in Pakistan (Rules)

Regulations for the Army in Pakistan (Instructions), Military Leave Rules

Military Accounts Department Manuals and procedure Code so far as they relate to audit and

account, procedure pertaining to Pay and Pensions.

Relevant Current Orders i.e., AIs (P), PAOs, PNIs, Pak Fos, AFIs, APOs.

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Note-1:- The question in the pay and pensions papers will be set from the three branches of the

subject in the following proportion:-

i) Pay 55%

(a) Military Officer 20%

(b) Other Ranks 20%

(c) Civilians 15%

ii) Pensions 20%

iii) TA 25%

Note-2:-

In both the theoretical and practical papers, six alternative questions on Pay and

Financial Regulations (Naval), six on Regulations peculiar to Factory Accounts and six on Pay and

Allowances Regulation for the Air Force will be set for the candidates of the Controllers of Naval,

Factory and Air Force Accounts respectively, in lieu of any six questions set for the candidates

serving in other than Naval, Factory and Air Fore Controller’s Offices.

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PAPER— 6

PPAAYY,, PPEENNSSIIOONN &&TTAA ((PPRRAACCTTIICCAALL))

Marks – 100

AIM:

To acquaint candidates with the application of Service & Financial Rules of Government of

Pakistan pertaining to Defence audit branch,

SPECIFICATION GRID


1 Pay & Allowances 55

2 Pension Rules 20

3 T.A. Rules. 25

Total 100

CONTENTS

Pay Pension and T.A, Rules

Pay and allowances of commissioned officers, nursing services, civilians, JCO's, warrant officers

and petty officers, other ranks, reservists re-employed, religious and casual personnel, personnel

becoming casualties, leave, emoluments.

Initial allowance, recurring, allowances, occasional allowances, fees to examiners, advances

(admissibility), recovery and stoppages) allowances admissible to units, formations and officers.

Pay, leave and pension rules (applicable to PMAD).

Pay accounting rules and procedure, passage rules and regulations, T.A. rules and procedure.

Leave rules, pension rules and procedure


Pay and Allowances Regulations (Vol. I and II)

Financial Regulations, Parts I and II (portions relating to pay, leave allowances and pensions)

Pension Regulations Part I, II and III

CSR (Pay, Leave and Pension rules as applicable in PMAD)

Pay Accounting in Fields Service - General Instructions

Passage Regulations, Supplementary Rules (in FR & SR)

Accounts Manual (War), Regulations for PAF, Regulations for PN

Regulations for the Army in Pakistan (Rules)

Regulations for the Army in Pakistan (Instructions)

Military Leave Rules

Military Accounts Department Manuals and procedure Code so far as they relate to audit and

account, procedure pertaining to Pay and Pensions.

Relevant Current Orders i.e., AIs (P), PAOs, PNIs, Pak Fos, AFIs, APOs.

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Note-1:- The question in the pay and pensions papers will be set from the three branches of the

subject in the following proportion:-

i) Pay 55%

(a) Military Officer 20%

(b) Other Ranks 20%

(c) Civilians 15%

ii) Pensions 20%

iii) TA 25%

Note-2:-

In both the theoretical and practical papers, six alternative questions on Pay and

Financial Regulations (Naval), six on Regulations peculiar to Factor Accounts and six on Pay and

Allowances Regulation for the Air Force will be set for the candidates of the Controllers of Naval,

Factory and Air Force Accounts respectively, in lieu of any six questions set for the candidates

serving in other than Naval, Factor and Air Fore Controller’s Offices.

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PAPER-1

CCOOSSTT AACCCCOOUUNNTTIINNGG

Marks -100

AIM: This course is designed to acquaint students with a comprehensive knowledge of

established practice of cost accumulation methods and learn the application of this knowledge to

the basic planning, control and decision making. The course covers job orders process costing and

standard cost system. It is programmed to equip candidates with fundamentals of accounting for

material, labour and manufacturing expenses; and understanding of the importance of the role of

cost accounting in planning and controlling the wide range of organizational and manufacturing

cost.

SPECIFICATION GRID


1 Cost concepts and costing methods

40 2 Accounting for materials

3 Accounting for labour

4 Accounting for overhead

5 Types of costing systems 30

6 Cost behavior

7 Methods of cost estimation

30 8 Costing for planning and control

9 Cost for decision making

Total 100

CONTENTS

1. Cost concepts and costing methods

Cost concepts, principles, methods and techniques; definitions of and distinction between

financial accounting, cost accounting and management accounting, elements of cost in relation to

manufacturing and service business; cost classification; cost flow, accounting cycle and chart of

accounts; and factory ledger.

2. Accounting for material :-

Purchasing, receiving, issuing, recording and pricing of material; inventory system and

documentation; and reconciliation and adjustment of inventory differences.

3. Accounting for labour

Wage incentive plans, system and documentation

4. Accounting for overhead Cost allocation and absorption, including allocation of service department costs

manufacturing expense-applied; manufacturing expenses-actual; and manufacturing expenses-

departmentalized. Over and under applied overheads; Variance Analysis

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5. Types of costing systems Job order, process and contract systems; and treatment of joint products

and by-products.

6. Cost behavior Fixed and variable costs; direct and indirect costs, and break even analysis

and charts.

7. Cost estimation Using high-low method and linear regression analysis.

8. Costing for planning and control Introduction to budgets (including cash and flexible budgets); the preparation of revenue and cash

budgets; concept of standard costing; and basic variance analysis (i.e. rate, efficiency, volume, mix

and yield variances).

9. Cost and decisions making Relevant costs; make or buy decisions; decisions with limiting factors excluding linear

programming; marginal vs absorption costing; a stock and profit and loss effect.


COST ACCOUNTING

Name of the Book Author Cost Accounting Charles I. Horngren

Cost Accounting Matz,Curry,Frand& khan

Cost Accounting W. W. Bigg

Cost Accounting Blocker & Weltmer

Cost Accounting & Costing Methods H. J. Wheldon

Terminology of Cost Accounting. . C. M. A, London

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PAPER—2

Marks. 100.

AAUUDDIITTIINNGG//GGOOVVEERRNNMMEENNTT AAUUDDIITTIINNGG

SECTION. A: Marks – 50.

AUDITING

AIM: As a first course in auditing, this course is intended to enable candidates to comprehend basic

principles and procedures involved in auditing. A familiarity of auditing techniques such as routine

checking, vouching and verification is necessary to inspire confidence in the approach of work.

Knowledge of auditing standards, INTOSAI & ICAP Codes of Ethics and related statutory

provisions is also expected of candidates.

SPECIFICATION GRID


1 Principles and objectives of auditing

10 2 Legal and professional

considerations

3 Professional ethics

4 Quality control

10 5 Planning and audit

6 Documentation of audit work

7 Accounting systems and internal

controls 20

8 Audit evidence

9 Audit techniques and procedures

10 Completion stages of an audit 10

11 The reporting function

Total 50

CONTENTS

1. PRINCIPLES AND OBJECTIVES OF AUDITING Accounting and auditing concepts; audit objectives, types of audits; true and fair view, materiality,

and going concern.

2. LEGAL AND PROFESSIONAL CONSIDERATIONS Companies ordinance, 1984; legal status of an auditor; appointment, resignation and removal; and

duties, rights and remuneration. Professional responsibilities, excluding reporting responsibility for

fraud or Irregularity.

3. PROFESSIONAL ETHICS Professional independence; confidentiality; bye-laws and directives issued by ICAP (relating to

misconduct), INTOSAI Code of Ethics.

4. QUALITY CONTROL Principles and purposes of quality control.

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5. PLANNING AND AUDIT Factors behind planning; audit plans; simple audit programmes; and impact of internal audit on

planning.

6. RECORDING OF AUDIT WORK Documentation of work done; evidence of review, conclusions drawn and action taken; and types

of working papers.

7. ACCOUNTING SYSTEM AND INTERNAL CONTROLS Reasons for having complete and accurate systems controls; definition and classifications of

control; limitations on effectiveness of internal control; ascertaining and recording systems and

controls; evaluation of systems and impact on audit work; timing and scoping of tests of controls;

reliance on internal audit; and small business and internal controls.

8. AUDIT EVIDENCE Objectives (ascertaining existence, ownership, valuation, completeness (cuts-off); nature and

sources of audit evidence, and sufficiency, relevance and reliability and audit evidence.

9. AUDIT TECHNIQUES AND PROCEDURES Inspection, observation including inventory verification, enquiry (including third parties

confirmations) and computation; sampling techniques; compliance.

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SECTION. B.

GOVERNMENT AUDITING

Marks - 50.

AIM: To acquaint candidates with the concept and philosophy of Govt. Auditing, modern trends in Govt.

Auditing and their application in the accountability mechanism.

SPECIFICATION GRID


1. Concept, Rules & Procedure 20

2. Modern trends and practices. 30

Total 50

CONTENTS

GENERAL PRINCIPLES OF GOVERNMENT AUDIT Definitions, Public sector auditing. Objectives of external and internal audit in the public sector.

Concept of external audit, Statutory requirements, Audit mandate in Pakistan, Concepts and

principles of public sector auditing. Regulatory and propriety audit, Audit arrangements in the

public sector, Relationship between external and internal audit, reliance of external audit on the

results of internal audit, Raising and pursuance of audit observations, Audit findings and audit

evidence, Audit reports, uses of audit reports. Public accountability cycle and the role of Public

Accounts Committee, Qualities of a good auditor.

MODERN TRENDS IN AUDITING Auditing Standards,'INTOSAI Auditing Standards: Basic postulates, General standards, Field

standards. Reporting standards. Concepts and scope of certification audit in the public sector,

Evaluation of internal controls, Materiality and confidence. Audit risk model, Sampling

techniques. Compliance testing, Substantive testing.

PERFORMANCE AUDIT/ PERFORMANCE EVALUATION, Concepts, methodology, application, developments. Use of Performance indicators in various

sectors.

EDP AUDITING Computer security, Audit approach, systems audit in a computer environment. Organizational

controls.


Name of the Book Author Practical Auditing Spicer and Pegler

Principles of Auditing F. R. De Paula

Principles & Procedures

of Auditing Khawaja Amjad Saeed

Statement of Auditing Standards Mill Champ

Fundamentals of Auditing R. K. Mautz

Manual of Auditing (Students Edition) V. C. Cooper

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Auditing Today Emile Wolf

Government Auditing Malik Faiz Ahmed

The External Audit Anderson R. J

A Beginner's Introduction to Auditing Muhammad Akram

Auditing Integrated Concepts

and Procedures by Taylor and Glezen

INTOSAI Auditing Standard

Elements of Certification Audit by Muhammad Akram Khan

Elements of Performance Audit by Muhammad Akram Khan

Constitution of the Islamic Republic of Pakistan

Auditing Principles and Procedures by Kh. Amjad Saeed

Audit Code

Strengthening the Public Service

Accountability A Conceptual Framework Samuel Paul

NAO Audit Manual for Certification Audit

Audit Procedure Handbook.

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PAPER- 3

Marks. 50.

SSTTOORREE AANNDD WWOORRKKSS ((MMEESS))

SECTION-1 (Theory)

STORE ACCOUNTING

Marks-25.

AIM: To acquaint candidates with Accounting of Specialized Branches relating to Defence audit branch

and Defence Accounts branches.

SPECIFICATION GRID


1 Store Accounting 25

CONTENTS

STORE ACCOUNTING.

Accounting in supply and store depots/unit and formations, Trading accounts of manufacturing

establishments, Local and central stores purchase and issues, Bills and vouchers. Evaluation and

accounts of stores. Losses and disposal of unserviceable stores. Store verification. Accounting in

ordnance, ammunition, engineering and medical stores depots and military farms.

RREECCOOMMMMEENNDDEEDD BBOOOOKKSS..

Military Accounts Code.

Store Accounting Instructions.

Financial Regulations Vols I & II (Chapters relating to Store).

LAOs Hand Book Pt-I & II.

LAOs Hand Book (Air Forces).

A.R (R) Vol-I (Sections pertaining to Stores only).

Military Audit Code.

Factory Accounting Rules.

Accounting Manual (War).

Military Accounts Department Manual & Procedure Code so far as they relate to detailed audit and

account procedure pertaining to stores.

The relevant current orders issued in A.Is (P) PAOs. P.N.Is Pak, F.Os, A.F.Is and A.F.Os and

Government orders etc;

Note:- In both the theoretical and practical papers alternative questions for 15 marks on stores

accounting procedure peculiar to each on Naval Accounts, PAF and on Factory Accounting will be

set for candidates of the Officers of the Controllers of Naval, Air Force and Factory Accounts

respectively in lieu of any question of 15 marks set for the candidates serving in other than Naval,

Air Force and Factory Accounts Offices.

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SECTION-2

WWOORRKKSS ((MMEESS)) AACCCCOOUUNNTTSS

Marks. 25.



SPECIFICATION GRID

Sr.# SYLLABUS

CONTENTS AREA

WEIGHTA

GE

1 Accounts in MES 25

CONTENTS

ACCOUNTING IN MILITARY ENGINEERING SERVICES Duties of the officers. Sanctions, Tenders and Contract, Financial and construction accounts, Bills

and vouchers. Cash account. Revenues, Stores, Workshop, Completion reports. Contractor's

ledger.

RECOMMENDED BOOKS

M.E.S Regulations.

M.E.S Local Audit Manual.

A.R. Quarters and Rents.

F.R. Parts I & II (so far as portions relating to Financial powers and Stores, (MES) are concerned).

Military Account Code.

M.E.S Unit Accountant’s Manual.

Military Accounts Department Manuals and Procedure Code so far as they relate to detailed audit

and account procedure pertaining to works.

The relevant current orders issued in A.Is (P) PAOs R.P.N.Is Pak:F.O.s, AF. Is and A.F.Os and

Government orders etc

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PAPER- 4 Marks: 50.

SSTTOORREESS AANNDD WWOORRKKSS ((MMEESS))

(Practical) with Books

SECTION-1

STORE ACCOUNTING

Marks-25.



SPECIFICATION GRID


1 Store Accounting 25

CONTENTS

STORE ACCOUNTING Accounting in supply and store depots/unit and formations, Trading accounts of

manufacturing establishments, Local and central stores purchase and issues, Bills and vouchers.

Evaluation and accounts of stores. Losses and disposal of unserviceable stores. Store verification.

Accounting in ordnance, ammunition, engineering and medical stores depots and military farms.


Military Accounts Code.

Store Accounting Instructions.

Financial Regulations Vols I & II (Chapters relating to Store).

LAOs Hand Book Pt-I & II.

LAOs Hand Book (Air Forces).

A.R. (R) Vol-I (Sections pertaining to Stores only).

Military Audit Code.

Factory Accounting Rules.

Accounting Manual (War).

Military Accounts Department Manual & Procedure Code so far as they relate to detailed audit and

account procedure pertaining to stores.

The relevant current orders issued in A.Is (P) PAOs. P.N.Is Pak, F.Os, A.F.Is and A.F.Os and

Government orders etc;

Note:- In both the theoretical and practical papers alternative questions for 15 marks on stores

accounting procedure peculiar to each on Naval Accounts PAF and on Factory Accounting will be

set for candidates of the Officers of the Controllers of Naval, Air Force and Factory Accounts

respectively in lieu of any question of 15 marks set for the candidates serving in other than Naval,

Air Force and Factory Accounts Offices.

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SECTION-2

WWOORRKKSS ((MMEESS)) AACCCCOOUUNNTTSS

Marks. 25.

AIM:

To acquaint candidates with Accounting of Specialized Branches relating to Defence audit branch


SPECIFICATION GRID


1 Accounts in MES 25

CONTENTS

ACCOUNTING IN MILITARY ENGINEERING SERVICES Duties of the officers. Sanctions, Tenders and Contract, Financial and construction accounts, Bills

and vouchers. Cash account. Revenues, Stores, Workshop, Completion reports. Contractor's

ledger.

RECOMMENDED BOOKS

M.E.S Regulations.

M.E.S Local Audit Manual.

A.R. Quarters and Rents.

F.R. Parts I & II (so far as portions relating to Financial powers and Stores, (MES) are concerned).

Military Account Code.

M.E.S Unit Accountant’s Manual.

Military Accounts Department Manuals and Procedure Code so far as they relate to detailed audit

and account procedure pertaining to works.

The relevant current orders issued in A.Is (P) PAOs R.P.N.Is Pak:F.O.s, AF. Is and A.F.Os and

Government orders etc

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PAPER –5

Marks.100.

IINNFFOORRMMAATTIIOONN TTEECCHHNNOOLLOOGGYY (Theory)

AIM:

To familiarize candidates with elements of important and relevant concepts and systems;

management information systems (MIS) and elements of electronic data processing (EDP) with the

knowledge and application of software and system commonly used by accountants.

SPECIFICATION GRID


1 MIS 50

2 E.D.P 50

Total 100

CONTENTS:

MIS

General systems theory, hierarchy of a system and concepts; modular and distributed business

information system; coding; the information systems as a management tool; structures system

analysis, planning; designing, implementation; evaluation and control of information system; and

needs, analysis and types of MIS in operation.

EDP Developments in electronic data processing; data hierarchy, computer based information

systems; computer hardware and accessories; computer software; evolution of system software;

types of programming languages; with particular reference to business and commercial

applications; software development stages; number system; trends in computer applications with

particular reference to accounting and MIS; data base management system; and basic knowledge

of software like MS-DOS, WINDOW, spreadsheets and word processing.


Name of the Book Author Computer in Business Studies H.Lucas

Computing J.L.Sardinas.

Computers Long and Long

Management Information Systems, Garden B. Davis

Conceptual Foundation,

Structure and Development

Computers Today Donald H. Sanders

Management Information Systems David Kreonke

System Analysis and Design Kendall & Kendall

Computer Oriented Business System Wayne S. Boutell

Management Information Systems R. L. Martino

Managing & Accounting for J.E.Cooks& B.H.Druy

Information System

********************************

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PAPER-6 Marks -100

GGOOVVEERRNNMMEENNTT AACCCCOOUUNNTTIINNGG ((TTHHEEOORRYY))

AIM:

To give the candidate exposure to concepts, procedures and practices of accounting in the public

sector in general and systems of Government Accounting in various departmentalized accounts in

particular.

SPECIFICATION GRID


1 General concepts, Procedures and Practices 50

2 Systems in departmentalized accounts 50

Total 100

CONTENTS.

SECTION-1

Marks—50

GENERAL CONCEPTS, PROCEDURES AND PRACTICES An overview of the Financial Information Systems in the Public Sector; Need for Public Sector

Accounting; Application of GAAP to Public Sector Accounting; Is Public Sector Accounting an

Independent Branch of Accounting? Public Sector Accounting Cycle and the nature of accounting

records. Constitutional framework-functions and powers of Auditor-General in relation to

accounts; Initial Accounts, departmental classified abstract and summaries, detail books, journal

and ledger; Monthly and Annual Financial Statements; Policies and Principles proposed in the

New Accounting Model (NAM); Chart of Classification.

SECTION-2

Marks- 50

GENERAL RULES & PROCEDURES – ( DEFENCE ACCOUNTS)

Functions of Defence account officers, general outline of system of account, general principles and

methods of accounts, deposits, advances and loans, transfer entries, recoveries in accounts,

exhibition of losses, inter-departmental transfers, exchange accounts, compilation and

consolidation of accounts, control of expenditure and re-appropriation, miscellaneous provisions.

Procedure of drawal of money, appropriation and budget control.


Pakistan (Audit and Accounts) Order, 1973

Introduction to Audit and Accounts

(Chapters 3, 5-C, 6, 9-C, 11, 29, 37 to 39)

Military Account Code. Chapters relating to initial accounts, budget control, drawal and remittance

of moneys

Treasury Rules of Federal Govt.

General Financial Rules

Account Code Vol. I, II (Chapters II. Ill of Section 4), IV

(Chapters 7, 10, 12, 19 & 21).

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PAPER-7

Marks - 100

GGOOVVEERRNNMMEENNTT AACCCCOOUUNNTTIINNGG ((PPRRAACCTTIICCAALL)) WWIITTHH BBOOOOKKSS

AIM:

To give the candidate skill and experience in the application of concepts, procedures and practices

of accounting in the public sector in general and systems of Government Accounting in various

departmentalized accounts in particular.

SPECIFICATION GRID


1 Application of General concepts,

Procedures and Practices 50

2 Application of Systems in

departmentalized accounts 50

Total 100

CONTENTS

SECTION-1

Marks—50.

GENERAL CONCEPTS, PROCEDURES AND PRACTICES Public Sector Accounting Cycle and the nature of accounting records. Constitutional framework-

functions and powers of Auditor-General in relation to accounts; Initial Accounts, departmental

abstracts classified abstract and summaries, detail books, journal and ledger; Monthly and Annual

Financial Statements; Policies and Principles proposed in the New Accounting Model (NAM);

Chart of Classification. Nature and extent of Public Sector transactions.

SECTION-2

Marks- 50.

GENERAL RULES & PROCEDURES – ( DEFENCE ACCOUNTS)

Functions of Defence account officers, general outline of system of account, general principles and

methods of accounts, deposits, advances and loans, transfer entries, recoveries in accounts,

exhibition of losses, inter-departmental transfers, exchange accounts, compilation and

consolidation of accounts, control of expenditure and re-appropriation, miscellaneous. provisions.

Procedure of drawal of money, appropriation and budget control.


Pakistan (Audit and Accounts) Order, 1973

Introduction to Audit and Accounts

(Chapters 3, 5-C, 6, 9-C, 11, 29, 37 to 39)

Military Account Code. Chapters relating to initial accounts, budget control, drawal and remittance

of moneys

Treasury Rules of Federal Govt.

General Financial Rules

Account Code Vol. I, II

(Chapters II. Ill of Section 4), IV (Chapters 7, 10, 12, 19 & 21).

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*

Appen

Annexure

EXEMPTION SCHEME

Exemption for various subjects / papers of SAS (new syllabus) examination shall be

admissible on the following basis:-

PAPERS BASIS OF EXEMPTION

Business communication & Behavioral Studies CA-FE-I, ICMA-II, ICMA-F, SAS (Report

writing or précis & correspondance)

Financial Accounting C.A. Inter-I CA-FE-I, B.Com, M.Com, SAS

(Commercial Accounting)

Legal Framework of Public Sector Accounting LLB

Economics

M.A (Economics), CA Inter-II, CA-FE-I,

ICMA-I, ICMA-F, MBA, M.Com, B.Com,

SAS (Government Accounting) Theory and

Practical

Business Mathematics & statistics CA Inter-II, CA-FE-I,ICMA-P-II, ICMA-PE-

II, MBA

Government Accounting (Theory) SAS (Government Accounting Theory and

Practical

Government Accounting (Practical) SAS (Government Accounting- Theory and

Practical

Cost Accounting

CA Inter-I CA FE-II, ICMA-II ICMA-PE-III,

Company Law / Taxation, SAS (Cost

Accounting

Information Technology CA-FE-II, ICMA-III, ICMA-PE-II

Public Works Accounts Rules & Procedure (T

& P) / Works and Store (T & P)

SAS (Public Works Accounts Rules &

Procedure (T & P) / Works and Store Theory

and Practical.

Auditing / Government Auditing SAS (Government Auditing)

S & FR (Theory) / Pay, Pension and TA Rules

(Theory).

SAS (S & FR- Theory & Practical) / Pay,

Pension and TA Rules (Theory).

S & FR (Practical) / Pay, Pension and TA

Rules (Practical).

SAS (S & FR- Theory & Practical) / Pay,

Pension and TA Rules (Practical).

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Annexure

1. Serial No.

2. Name of the candidate with Account No. and grade.

3. Date of appointment.

4. Subjects, if any, in which secured exemption in the A.P. Examination (B-16) with roll No.

and year of examination.

5. Total service rendered as worked out on the lines indicated in rule 5.

6. Whether regular in attendance or not.

7. Character energy. Knowledge and intelligence ability to writer and express himself in

correct English.

8. General.

9. Aptitude for work of an Accountant.

10. Prospects of passing.

11. Permanent station at which posted.

12. Center at which proposed to be examined.

13. Educational qualifications.

14. Whether the examination fee of Rs.100/- has been deposited by the candidate.

15. Remarks.

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