SPECIALIZED TRAINING PROGRAM

(47th STP Onwards)

Proposed Revised Syllabus
(FPOE-2020-21)
 SPECIALIZED TRAINING PROGRAMME
47th STP Onwards
SYLLABUS
FINAL PASSING OUT EXAMINATION
INDEX

With/
Sr.
Subject / Paper Marks Time Without
No
Book
Public Financial Management &
Without
1 Quantitative Techniques 150 3.5 Hours
Book
Without
2 Financial Accounting 100 3 Hours
Book
Without
3 Cost and Management Accounting 100 3 Hours
Book
4 Service and Financial Rules 100 3 Hours With Book

5 Government Accounting I – NAM 75 3 Hours With Book

Without
6 Government Auditing – FAM 100 3 Hours
Books
7 Government Accounting II 75 3Hours With Book

Without
8 Information Systems Audit 100 3 Hours
Book

Office Communication Skills Without

9 100 3 Hours
(Correspondence and Drafting) Book

Without
10 Business Law and Taxation 100 3 Hours
Book

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Paper 1 (150 MARKS)
Public Financial Management & Quantitative Techniques
Total Credit Hours: 100 (Without Books)

INTRODUCTION
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.
It will 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
role of planning institutions will be discussed and the preparation of such
planning documents as PC-1, PC-II etc shall be covered.

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 probability 50%
and non-probability)
4 Quantitative Techniques
5 Capital Investment Appraisal
6 The cost of capital
(SECTION-B) Public Sector Financial Management
1 Introduction to public Finance
2 Types of Public Revenue
3 Public Expenditure 30%
4 Public Budget
5 Public Debt
6 PMF ACT 2019
(SECTION-C ) Public Policy and Planning
1 Fiscal Policy and Monetary policy
2 Policy Planning and Role of Development Institution 20 %
3 All PC Proformas e.g, PC I, PC II, etc.

Total 150
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The weights assigned against each section are meant for the paper setter.
The examination paper will consist of nine questions divided into three sections
A, B & C.
Each question in Section A & B will carry 20 marks and in Section C 15 marks.
Probationary officers will attempt 8 questions in total which shall be attempted in
the following order.
I- Three questions out of four from Section A
II- Three questions out of four from Section B
III- Two question out of three from Section C

SUGGESTED READING LIST:

1. Strategic Financial Management (ICMA- F-3) 503
2. Compilation of PAAA on Public Financial Management
3. Business Mathematics by CIMA
4. Public Finance by HL Bhatia (28th Edition)
5. PMF ACT 2019
6. Planning Commission Proformas alongwith notes
• Economic Survey of Pakistan
• Budget documents (MTBF) 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)
Sr. No. Quantitative 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 and analyzing data

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 • Graphs and diagrams, bar charts, time series Graphs (not Z
charts), scatter diagrams, histograms and gives. Summary
measures for both grouped and ungrouped data.
• Co-efficient of variation
• Index numbers.
4 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
5 Capital Investment Appraisal
• Introduction
• Steps in Project Appraisal
• Methods of Project Appraisal
• Accounting Rate of Return Method
• The Payback Period
• The Time Value of Money
• Discounted Cash Flow
• Internal Rate of Return
• Public Sector Capital Budgeting Decisions
6 The Cost of Capital
• 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
1 Introduction to Public Finance
• Meaning and scope of Public Finance
• Traditional Principles of Public Finance
• Public Goods V/s Private Goods
• Externalities
• Concept of Mixed Economy.
2 Types of Public Revenue
• Revenue Receipts
• Capital Receipts
• Difference between tax revenue and non-tax revenue
• Kinds of tax
• Base of tax
• Buoyancy and Elasticity of a tax
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 • Principles of taxation
• Characteristics of a good tax system
3 Public Expenditure
• Meaning and Nature of Public Expenditure
• Wagner’s Law of Increasing State Activities
• Wiseman Peacock Hypothesis
• Kind of Public Expenditure
• Public Expenditure and Distribution.
• Effects of Public Expenditure
• Public Expenditure and Economy Stabilization
• Public expenditure and Economic Growth.
4 Public Budget Introduction
• Kinds of Budget
• Performance Budget
• Program Budget
• Zero Base Budget
• Balanced Budget
• Medium Term Budgetary Framework (MTBF)
• Pros & Cons of Budget.
5 Public Debt
• Internal Debt
• External Debt
• Burden of Debt
• Internal and External Factors
• Responsible for Public Debt
6 PFM Act 2019
(Section C)
Public Policy and Planning
1 Fiscal Policy and Monetary Policy
• Role of Finance Division
• Role of State Bank of Pakistan
2 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
3 Preparation of PC I – IV

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Paper 2 (100 MARKS)
Financial Accounting
Total Credit Hours: 60 (Without Books)

INTRODUCTION
The course is designed to provide 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 WEIGHTAGE
(Without Books)
SECTION-A
1 Accounting: Information for decision making
20%
2 Accounting Cycle and its Treatment 60%

3 Basic Analysis of Financial Statements 20%

Total 100%

• The weights 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

II- Three questions from Section B.
(One compulsory question on the preparation of Statements and two
out of three questions)
III- One questions out of two from Section C

SUGGESTED READING LIST:

1. Accounting by MEIGS & MEIGS 13th Edition

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 DETAILED SYLLABUS CONTENTS:
Sr.
FINANCIAL ACCOUNTING (Without Books)
No.
1 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
2 Accounting Cycle
i- The Accounting Equation and Effects of Financial Transactions on the
Equation
ii- The ledger
iii- The use of accounts
iv- Debit and Credit entries
v- The Journal
vi- Posting the Journal entries to Ledger & extracting Balance
vii- Types of Accounts
Assets
Liabilities
Revenue
Expense
Owners’ Equity
viii- 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
3 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)

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Paper 3 (100 MARKS)
Cost & Management Accounting
Total Credit Hours: 60 (Without Books)

INTRODUCTION:

This course is designed to acquaint students with knowledge of, established

practices of cost accumulation methods and the application of this knowledge to
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
3. Material Costs
40%
4. Labour Costs
5. Overhead Cost
6. Marginal and Absorption Costing (Only Theoratical)
SECTION-B
7. Types of Costing System
8. Cost Behavior
9. Standard Costing (Only Theoratical) 20%
10. Basic Variances Analysis (Only Theoratical)
SECTION-C
11 Budgeting: Profit, Sales, and Expenses
12 Budgeting: Expenditure & Cash
Budgeting: The Flexible Budget; Cost Behavior 20%
13 Analysis.
SECTION-D
14 Cost-volume-profit (CVP) analysis
20%
15 Relevant costing and decision-making
Total 100%

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 • The weightages given above are for the paper setter.
• The examination paper will consist of eight questions divided in three
sections A, B, C &D. Section A will have 3 questions and Section B, C
and D will consist of 2 questions each.
• Probationary officers will attempt five questions in total which shall be
attempted in the following order:

I. Two questions out of three from Section A

II. One questions out of two from Section B
III. 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
Explain the difference between strategic, tactical and operational
planning
Explain the limitations of management information in providing
guidance for managerial decision-making
2 Cost classification
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
centres
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 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
Calculate the value of closing inventory and material issues using
LIFO, FIFO and average methods.
Identify, explain and calculate the costs of ordering and holding
inventory (including buffer inventory)
Calculate and interpret optimal reorder quantities

4 Labour Costs
Wage incentive plans; system and documentation
Calculate direct and indirect costs of labour Prepare 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

5 Overhead & Absorption Costing

Absorption of factory overhead using Labour hours and Machine
hours.(to be restricted to labour and machine hours only)
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

6 Marginal & Absorption Costing (Only Theoratical)

• 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

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7
Job order costing, process costing and contract systems costing; and
treatment of joint products and by-products.

8 Cost Behavior
Fixed and variable costs; direct and indirect costs; cost volume profit
analysis and break even analysis,
Describe and illustrate, graphically, different types of cost behavior
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.

9 Standard Costing (Only Theoratical)

Operation of Standard costing system
Establishing cost standards
Types of cost standards

10 Basic Variances Analysis (Only Theoratical)

Material Variances (Total, Price and Usage Variances)
Labour Variances (Total, Wage Rate and Efficiency Variances)
Variable Overhead (Expenditure Variance and efficiency Variance

11 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.

13 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, Breakeven arithmetic and profit targets,
Breakeven charts, contribution charts and
profit/volume charts, Limitations of CVP analysis
Relevant costing and decision-making
15 Relevant costs; make or buy decisions; decisions with limiting factors.
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PAPER - 4: (100 MARKS)
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 as 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
1. Civil Servants Act 1973
2. Pay and Allowances
3. Travelling Allowance Rules
4. Leave Rules - 1980
5. Pension
6. General Provident Fund Rules 25%

7. The Government Servants (Conduct) Rules1964

8. Government Servants (Efficiency & Discipline) Rules,

1973
9. BF and Group Insurance Schemes

(Section-B) FINANCIAL RULES

1 Financial Control and Budgeting

2 House Building and Conveyance Advances 25%

3 Purchase and Acquisition of Stores

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 4 Public Procurement Regulatory Authority Ordinance,
2002 & PPRA Rules with Amendments
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

1. 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 50%

Calculation of interest on GP Fund Accounts / Closing

5. Balance Statement
6. LPC
7. TA bill on tour, transfer and retirement
Calculation of taxes ( Income Tax, GST etc.) 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.
• All question carry equal marks (20 Marks)
• Probationary officers will attempt 5 questions in total which shall be attempted in
the following order:
I. One compulsory question of Short Notes from A & B sections.
II. One question out of two from Section A
III. One question out of two from Section B
IV Two question out of three from Section C
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 SUGGESTED READING LIST
1. General Financial Rules
2. Fundamental Rules and Supplementary Rules;
3. Civil Servants Act, 1973;
4. Appointment, promotion, Seniority and transfer rules;
5. Leave Rules -1980;
6. Compilation of Pension Rules and Orders;
7. Federal Treasury Rules
8. Government Servants(Efficiency and Discipline) Rules, 1973;
9. Compilation of Service & Financial Rules –up to date amendments;
10.Public Procurement Regulatory Authority Ordinance, 2002 and PPRA Rules
with amendments.
11. DDO Hand Book.
12. System of Financial Control and Budgeting
13. Government Servant Conduct (E&D) Rules-1964

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 under FRS 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

4 Leave
Statutory Provisions regarding leave
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 Leave Account under Revised Leave Rules, 1980.Calculation 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

7 Government Servants Efficiency & Discipline Rules 1973

Government Servants Efficiency & Discipline Rules, 1973.
Procedure of Departmental proceedings against Government Servants,
Suspension, Reinstatement, Punishments etc.

8 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

1 Financial Control and Budgeting

Responsibilities of principal accounting officers.
Financial Advisory and Finance and Accounts Officers.
Budget Preparation and Implementation.
Development schemes and Development Plans.
Development and Non Development Expenditure.
Delegation of Financial Powers

2 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.

3 Purchase and Acquisition of stores

4 Public Procurement Regulatory Authority Ordinance, 2002 & PPRA Rules
with Amendments

5 Cash Book

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6 Receipt and withdrawal from Public Accounts

6 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
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

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PAPER- 5: (75 MARKS)
GOVERNMENT ACCOUNTING I (NAM)
Total Credit Hours: 60 (With Books)

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. Provide knowledge in Transactions between Government Entities,
Procurement and Asset Management, Public Account Transactions and Insurance
along-with General Accounting in NAM, Use of Assignment and Personal ledger
accounts. It creates awareness pertaining to Salaries and wages, Pension and
General Provident Fund in NAM.

SYLLABUS WEIGHTAGE

NEW ACCOUNTING MODEL (With Books)

SECTION-A
1 Introduction and Overview of NAM concepts
2 Financial Reporting Procedures
3 Budgetary Controls
4 Expenditure
5 Receipts
6 Bank Reconciliation
7 Transaction between Government Entities
8 Public account Transactions
100%
9 Project Accounting
10 Assignment Accounts and personal ledger accounts
11 Loss and Recoveries of Public Money/ Insurance
12 Self-Accounting Entities
13 Liabilities and Asset Management
14 General Accounting
15 IPSAS Cash Basis (without computations)

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 • The weightings given above are for the paper setter.
• The examination paper will consist of seven questions. All carrying equal
marks 15.
• Probationary Officers will attempt five questions in total.

SUGGESTED READING LIST:

1. NAM
2. Accounting Policies and Procedures Manual by DAGP
3. Manual of Accounting Principles by DAGP
4. New Chart of Accounts by DAGP
5. IPSAS Cash Basis (without Computation)

DETAILED SYLLABUS CONTENTS:

Sr.# SECTION-A
1 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)
2 Financial Reporting Procedures
Introduction to CGA ordinance
General Policies
Year-end accounting policies
Detailed Procedure
3 Budgetary Controls
Introduction
General Procedures
Detailed Procedures
Specific Budgetary Procedures
4 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
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 Overseas Payments
Grants-in-aid, Contributions etc.
Assignment Account and Personal Ledger Account
Maintenance of Permanent Accounting Records
5 Receipts
Introduction
General Policies
Accounting Policies
Accounting for receipts
Detail of Procedures
Treatment of specific classes of receipt
6 Bank Reconciliations
Introduction
Overview
General Policies
Daily procedures
Monthly Procedure
7 Transactions between Government Entities
Introduction
General Policies
Accounting Policies
Accounting for transactions between Government entities
Detailed Procedures
8 Public Account Transactions
Introduction
General Policy
Accounting Policy
Detailed Procedures
Reconciliation of Public Account Transactions
Reporting of Public Account
9 Project Accounting
Introduction
General Policies
Accounting Policies
Accounting for Project Expenditure
10 Assignment Accounts & Personal Ledger Accounts
Introduction
Policies
Detailed Policies
Appendix Account Transactions
11 Loss and Recoveries of Public Money/ Insurance
Introduction
General Policies
Accounting for Losses and Recoveries
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 Claims against the Government
12 Self-Accounting Entities
Introduction
General Policies
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 Disposals
General Policy
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 APPM
17 MAP

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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 and the International 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 responsibilities of Office of
the Auditor-General of Pakistan.
SYLLABUS Weightage
Government Auditing- FAM (Without Books)
(Section-A)
1 Organization and purpose of the Manual
2 Role of the Auditor-General
3 DAGP Audit Standards
4 DAGP’S Annual Planning Process
5 The Audit Cycle
6 Planning the Audit
7 Activity and resource planning for individual audits
80%
8 Conducting the audit
9 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 and develop audit observation(s) out of it.

Total 100%
Page 22 of 45
 • 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
II- One compulsory question from Section B. It will 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. An Explanatory Guideline to Financial Audit Manual by Aamir Fayaz
3. Compilation on Practical Audit
DETAILED SYLLABUS CONTENTS:
SECTION-A
Financial Audit 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
2 Role of the Auditor-General
Parliamentary Control and Public Accountability
Introduction to Auditing
Legislative Basis
Vision, Mission and Values
Constitution’s Relevant Articles: 168-171 as amended
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 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
3 DAGP Audit Standards
INTOSAI’S Professional Standards
The International Standards of Supreme Audit Institutions (ISSAIs)
Fundamental Auditing Principles
Level-4-Auditing Guidelines (ISSAIs 1000-4999)
4 DAGP’S Annual Planning Process
DAGP Strategic Audit Objectives
DAGP Audit Scope
DAGP Strategic Audit Plans
Emerging areas of auditing
The annual planning process
Integration of audit work
Approval process for the budget of centrally led Audits
5 The Audit Cycle
Introduction
General planning
Activity and Resource Planning
Roles and responsibilities
6 Planning the Audit
Introduction
Step 1-Establish audit objectives and scope
Step 2-Understand the entity business
Step 3-Assess materiality, planned precision, and audit risk

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 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 8-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
7 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
8 Conducting the Audit
Introduction
Compliance Testing
Substantive Testing Evidence
Matters to deal with during field work
Cause and Effect Analysis
Developing conclusions and Recommendations
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 Keeping entity official informed
Documenting the work performed
Custody and maintenance of working paper files
Quality assurance during field work
9 Evaluating Audit Results
Evaluating Financial Audit Results
Known errors, most likely errors, further possible errors and
maximum possible error
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
11 The Reporting Process
Introduction
Focus on the Reporting Process
Clearing Observations, Conclusions and Recommendations
Obtaining Management Responses
Management representation letter
Audit completion checklist

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 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 phase
Quality assurance during the reporting phase
Quality assurance during the follow up phase
Other quality assurance procedures
(Section B) Practical Audit Work
Case study based on a data bank would be given and probationary officer will
conduct practical audit and develop audit observation(s) out of it.

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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 – II
SECTION A
1 Pakistan Military Accounts Department 25%
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 weighting 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 as following;
I- Five question by selecting atleast one question out of two from
all Sections A, B, C and D.
Suggested Readings List:
1. Military Accounts Code 2008
2. Pakistan Railways Accounts Code Vol -I & II
3. PT&T Initial Account Code
4. PLI Manual
5. CPWA Code
6. CPWD Code
7. Scheme of Departmentalization of Pak PWD
8. Treasury Rules Vol-I

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DETAILED SYLLABUS CONTENTS:
Government Accounting – II (With Books)
(Section – A) Pakistan Military Accounts
1. Classification of Accounts
2. Finance and revenue Accounts
3. Accounts between different Accounts Circles
4. Appropriation Accounts
5. Pro forma Accounts
6. Cash Assignments
7. Disbursement
(Section –B) Pakistan Railways Accounts
1. Working of the traffic accounts branch
2. Budgeting Process
3. Main functions of Railways Accounts Department
4. Principal subsidiary books of account
5. Organization of workshops and procedure for accounting expenditure
(Section – C) Pakistan Post Accounts
1. Core Activities; Mail, Parcel, Money Orders, etc.
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
1. Organizational structure of PWD and duties of PWD Officers
2. Definitions
3. Main features of the system of Public Works Department
4. Three fold duties of Divisional Accountants
5. Modes of obtaining cash from Treasuries and manner of payments
6. Initial Accounts of PWD
7. Stock/Store Accounts of PWD - Transfer entry
8. Non-Government Works

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PAPER –8 (100 MARKS)
Information Systems Audit
Total Credit Hours: 60 (Without Books)
INTRODUCTION

The course is designed to provide students with a basic understanding of

Information Systems and process 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%
SECTION B
3 Corporate Governance 15%
4 Information system acquisition, Development and 15%
Implementation
SECTION C
5 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 of 100 MCQs.
• The number of MCQs will be according to the percentage given above.

Suggested Readings:
1- CISA Review Manual 11th Edition
2- CISA Paper Bank
3- All in One CISA

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DETAILED SYLLABUS CONTENTS:
Sr.
INFORMATION SYSTEM AUDITING (Without Books)
No.
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

• Types of Audits
• Audit Methodology
• Risk-based Auditing
• Audit Risk and Materiality
• IS Audit risk assessment techniques
• Audit Programs

• Compliance versus substantive testing

• Evidence
• Interviewing and observing personnel in 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
• Audit documentation
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 • Closing findings
• Case studies
• Answers to the case studies

SECTION-B

3 Corporate 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
IT 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 analysis
• Development of plans
• Other issues in plan development
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 • component of a plan
• Plan testing
Auditing business continuity
• Review
• Evaluation of test result
• Evaluation off site storage
• Interviewing
• Security at off site facility
• Reviewing processing contract
• Reviewing insurance coverage
• Case Studies

4 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
• E-Finance
• Payment systems
• E-Fund transfer
• ATM
• voice response
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 • 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
• Project management
• Feasisiblity study
• Requirement Definition
• Software acquisition
• Detail design
• Testing
• Implementation
• Post implementation
• Change procedure
Case studies

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 SECTION-C

Informatino System Operation Maintenance and Service

5 Management
• IT service management
• Incident and problem mangement
• Support
• Change management
• Releasse 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
6

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Information security management
• 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
• Inernet threats and security
• Encryption
IPS and IDS and Firewalls
Auditing information security management framework
• Auditing Logical Access
• Techniques for testing security
• Investigation techniques
Auditing network infrastucture security
• Auditing remote access
Environmental exposeures and control
• Exposures and Issues
• Controls
• Auditing environment controls
Physical access exposures and controls
• Physical access issues exposure
• Physical access control
• Auditing physical access
Social Media
Cloud computing

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PAPER 9: (100 MARKS)
OFFICE COMMUNICATION SKILLS
Total Credit Hours: 60 (With 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
2 Drafting UO/DO, and Notifications/OM/Corrigendum 60 %
3 Draft Noting and Summaries
4 Draft Minutes of Meetings
5 Audit Report Writing

Total
100%

• The weights assigned against each section are meant for the paper setter.
• The examination paper will consist of 7 questions. Section A will consist of
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
II- Three question out of 4 questions from Section B including one
compulsory question of preparing summary/ note of given
correspondence.
Suggested Reading List:
1- Secretariat Instructions 1973
2- Rules of Business 1973
3- Compilation on Official Correspondence
Page 37 of 45
DETAILED SYLLABUS CONTENTS:
Sr.
Office Communication Skills (With Books)
No.
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
b) References to the Prime Minister
c) Cabinet Procedure
Cases to be brought before Cabinet
Method of disposal by Cabinet
Manner of submission of Cabinet Cases
P Procedure regarding circulation of Cabinet cases
Procedure regarding Inter Provincial conference
Procedure regarding National Economic Council
SECTION-B
1 Professional writing
• OM and corrigendum
• UO/DO
• Summaries
• Notifications
• Noting/Drafting, ETC
• Communiqué
• Press Note
• Drafting of formal Minutes of the meeting
• Writing of Enquiry report

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PAPER- 10: (100 MARKS)
BUSINESS LAWS AND TAXATION
Total Credit Hours: 60 (Without Books)

INTRODUCTION
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 the Companies
Ordinance, 1984 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 basic knowledge of the
candidates to 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), Sales Tax Act 1990 and its rules (relevant to coverage
of syllabus).

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 SYLLABUS WEIGHTAGE

BUSINESS LAWS & TAXATION

Business Laws
SECTION-A
1. Contract Laws
2. Indemnity
35%
3. Agency
4. Negotiable Instruments
5. Sale of Goods
6. Partnership.
SECTION-B
1. Preliminaries of Company Law
Role of SECP as an industry regulator and Incorporation of
2. companies and matters incident thereto
3. Commencement of business by Public Company 35%
4. Meeting and Proceedings
Directors, Company Secretary, CFO, Chief Executive and
5. Managing Agents
6. Role of company Auditors
SECTION-C
1. Taxation
Income Tax Ordinance, 2001
Heads of Income, Computation of Income, Determination of
Tax Liability and Payment of Taxes
Types of Person and Their Taxation 30%
Procedures and Administration
2. Sales Tax Act 1990 (Basic concepts)
3. Provincial sales Tax (Services), Act

Total 100%

Extension Lecture/ Seminar will be conducted on Human Rights and Gender.

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 • The weights assigned against each section are meant for the paper setter.
• The examination paper will consist of seven questions divided into three
sections A, B, & C and one compulsory question of definitions from all
sections.
• All sections will have two questions and one MCQ from all sections.
• Probationary officers will attempt Five Questions in total which shall be
attempted in the following order;

I. One Compulsory Question out of all Sections

II. One question out of two from Section A
III. One question out of two from Section B
IV. One question out of two from Section C
All question carry equal marks.

SUGGESTED READING LIST:

1. Practical Approach to Company Ordinance 1984

2. Business/ Mercantile Law
3. Compendium/ Compilation of Taxes

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Sr.# SECTION-A

DETAILED CONTENTS

BUSINESS LAW
Introduction to Legal System
• Sources of law; process of legislation and the legal system in Pakistan
1 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.
2 Indemnity
• Contract of Indemnity; Contract of Guarantee; Rights of Surety;
Discharge of Surety.
3 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
4 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
5 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
6 Partnership.
• Law of Partnership. Registration of Firms
• Relations of Partners. Rights and Duties of Partners Dissolution of Firm

SECTION-B
7 Preliminaries of Company Law
• Definitions
• Subsidiary and associated companies
• Application of Companies Ordinance to non-trading companies and its
non-applicability to certain corporations etc.

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 • Ordinance to override memorandum and articles etc.
• Application of the Companies Ordinance, 1984 To companies governed
by special enactment(section 503)
• Section 12, Sub-section (1) & (2) and Section 13
8 Role of SECP as an industry regulator and Incorporation of companies and
matters incident thereto
• Obligation to register certain associations, partnerships etc. 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
9 Commencement of business by Public Company
10 Meeting and Proceedings
11 Directors, Company Secretary, CFO, Chief Executive and Managing
Agents
12 Role of company Auditors
SECTION-C
TAXATION
13 Income Tax Ordinance, 2001
• Basic Concepts of Taxation
- Preliminary
- Charge of Tax
- (I-III) Common Rules

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 - Administration
- General
• Heads of Income, Computation of Income, Determination of Tax
Liability and Payment of Taxes
- (I-X) Tax on Taxable Income
- Minimum Tax
- (V) (I_IV) Advance tax and Deduction of Tax at Source
• Types of Person and Their Taxation
- (II)(I –III) 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
14 Provincial sales Tax (Services), Act
- Definition, Scope and payment of tax, Registration, Book keeping and
invoicing, Returns
15 Extension Lecture/ Seminar on Human Rights andGender

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Page 45 of 45