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NEW SYLLABUS FOR AAO (B-16) EXAMS

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.

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Rawalpindi April, 2003

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Muhammad Izhar-ul-Haq Military Accountant General

NEW SYLLABUS FOR AAO (B-16) EXAMS

INDEX

S.No 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9

Particulars TERMS AND CONDITIONS Eligibility Submission of Candidature Examination Fee Examination Paper Setting Pass Marks Exemption Results For Old Candidates PART-I Business Communication & Behavioral Studies Financial Accounting Legal frame work of Public Sector Accounts & Economics (Theory) Business Mathematics and Statistics (Theory) Pay, Pension & TA (Theory) Pay Pension & TA (Practical) PART-II Cost Accounting. Auditing / Government Auditing. Store and Works (MES) Theory Store and Works (MES) Practical Information Technology (Theory) Govt. Accounting (Theory) Govt. Accounting (Practical) Exemption Scheme (Annex-A) Admission form (Annex-B)

Page No. III TO VII III III III III V VI VI VI VII 01 03 05 07 09 11 14 16 20 22 24 25 26 27 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.

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

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NEW SYLLABUS FOR AAO (B-16) EXAMS

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 Section B Business Mathematics. Business Statistics.

PART II Paper 1 Cost Accounting. Paper - 2 Auditing / Government Auditing. Section A Section B Auditing. Government Auditing.

Paper 3 Store and Works (MES) Theory. Section A Store Accounting. Section B Works (MES) Accounts.

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Paper 6 Pay Pension & TA (Practical).

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Paper 5 Pay, Pension & TA (Theory).

NEW SYLLABUS FOR AAO (B-16) EXAMS

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 SECTION 2 General Concepts, Procedure and Practices. General Rules & Procedures (Defence Accounts)

PAPER 7 Government Accounting (Practical with Books). SECTION 1 SECTION 2 General Concepts, Procedure and Practices.

Note:- Time allowed to attempt each paper will be three hours. 5. PAPER SETTING

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 MCQs/SFQs WT Total MCQs = SFQs = WT = 6. Marks 25 75 100

Multiple Choice Questions Short Form Questions Descriptive and Computational Questions

PASS MARKS Pass/aggregate marks for each part of are as follows: a) b) Pass marks in each paper Aggregate marks for each part of exam 40% 45%

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

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General Rules & Procedures (Defence Accounts)

NEW SYLLABUS FOR AAO (B-16) EXAMS

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

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

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

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all concerned.

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

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

NEW SYLLABUS FOR AAO (B-16) EXAMS

(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 AAO (B-16) EXAMS

NEW SYLLABUS FOR ASSISTANT ACCOUNTS OFFICERS PROMOTION EXAMINATION FOR P.M.A.D. PART-1 PAPER- 1 BUSINESS COMMUNICATION AND BEHAVIORAL STUDIES 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.

Sr. # 1. 2. 3. 4.

SYLLABUS CONTENTS AREA WEIGHTAGE Principles of applied grammar Public sector correspondent Report, Writing, Prcis Writing Inter-personal skills and behavioral sciences ' Organization and Methods Total

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SPECIFICATION GRID

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MARKS 20 40 20 20 100

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 prcis 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.

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NEW SYLLABUS FOR AAO (B-16) EXAMS

3. Prcis Writing: Prcis of correspondence, notes and passages etc. Objects of prciswriting, essential of good prcis; form and style, omission of details, Drafting official correspondence. 4. 5. Report Writing: Principles and practice 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. ORGANIZATION & METHODS Management principles, organization techniques, office management. Introduction to systems and procedures, flow charting, work distribution, job description, record management. BOOK RECOMMENDED

6.

INTER-PERSONAL SKILLS

Name of the Book Author The Interpersonal Communication Book, 44th Joseph A. Devito Interplay: The Process of Interpersonal Ronald B. Adier Lawrence Communication (3rd Edition) B. Rosenfeld th Interpersonal Communication (6 Edt.) Prof William Heney BEHAVIORAL SCIENCES Name of the Book Author rd Organizational Behavior (3 Edition) Fred Lufthansa Management & Organizational Behavior Laurie J. Mul

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

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Name of the Book Author Management English Course Book K: E. Rowlands Business Communication Today Courtland L.Bovee, John V. Thill Functional English Blundell, Higgins, middle miss Management (Hodges) Notes prepared and supplied by (HRM) Wing.

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FUNCTIONAL ENGLISH

NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER2 FINANCIAL ACCOUNTING 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 Accounting theory 10 Financial accounting practices 30 Accounts of Limited Companies 20 International Accounting Standards 10 Receipts and Payment Accounts 10 Objective and Interpretation of Financial 20 Statements 100 Total

1 2 3 4 5 6

CONTENTS 1. Accounting Theory

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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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.

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NEW SYLLABUS FOR AAO (B-16) EXAMS

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.

RECOMMENDED BOOKS FINANCIAL ACCOUNTING Name of the Book Author 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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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER 3 LEGAL FRAME WORKS OF PUBLIC SECTOR ACCOUNT AND ECONOMICS (THEORY) 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. # 1 2 3 4 CONTENTS SYLLABUS CONTENTS AREA Introduction to legal system Contract Act Company Act Taxation WEIGHTAGE 15 15 10 10 50

3. Taxation, Company's Law & Negotiable Instruments Act RECOMMENDED BOOKS Name of the Book Students Ed. Of Polleck & Mulla's Indian Contract Act All Bara Acts-Contract Act, 1872, Sales of Goods Constitution of Pakistan, 1973 Pakistan (Audit & Accounts) Order, 1973 The Income Tax Ordinance, 1979 The Income Tax Ordinance 1979 Notes, Circulars, etc Practical Taxation Guide Income Tax Law Income Tax Law with practical Problems Author F. D. Mulla Govt. of Pakistan

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2. Principles relating to and application of laws of contract (including contract of indemnity and guarantee, bailment and agency).

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

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Total

Govt. of Pakistan S. A. Salam Ikram-ul-Haq Raza Naqvi Khawaja Amjad Saeed

NEW SYLLABUS FOR AAO (B-16) EXAMS

SECTION (B) ECONOMICS AIM:

MARKS - 50

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.# 1 2. SYLLABUS CONTENTS AREA Principles of economics Economics of Pakistan WEIGHTAGE 25 25 Total 50

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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RECOMMENDED BOOKS

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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.

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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.

NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER- 4 BUSINESS MATHEMATICS AND STATISTICS (THEORY) Marks.100. SECTION (A). 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 Sr.# SYLLABUS CONTENTS AREA WEIGHTAGE 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. RECOMMENDED BOOKS Name of the Book Business Mathematics Business mathematics Mathematics for Business & Economics Applied mathematics for Business, Economics and Social Sciences Marks. 50

Author L. W. T Stafford Steen C. Lawlor M. M. Mirza Frank. S. Budnick

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NEW SYLLABUS FOR AAO (B-16) EXAMS

SECTION (B) BUSINESS STATISTICS AIM:

MARKS. 50

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 Sr.# 1. 2. 3. 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). SYLLABUS CONTENTS AREA WEIGHTAGE Section 1 25 Section 2 25 Total 50

RECOMMENDED BOOKS 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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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER. 5 PAY, PENSION &TA (THEORY) Marks.- 100 AIM: To acquaint candidates with the application of Service & Financial Rules of Government of Pakistan pertaining to Defence audit branch, SPECIFICATION GRID Sr.# 1 2 3 SYLLABUS CONTENTS AREA WEIGHTAGE Pay & Allowances 55 Pension Rules 20 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.

Leave rules, pension rules and procedure RECOMMENDED BOOKS

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

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

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NEW SYLLABUS FOR AAO (B-16) EXAMS

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 (a) Military Officer (b) Other Ranks (c) Civilians ii) iii) 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 Controllers Offices. ************************************ Pensions TA 55% 20% 20% 15% 20% 25%

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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER 6 PAY, PENSION &TA (PRACTICAL) Marks 100 AIM: To acquaint candidates with the application of Service & Financial Rules of Government of Pakistan pertaining to Defence audit branch, SPECIFICATION GRID Sr.# 1 2 3 SYLLABUS CONTENTS AREA WEIGHTAGE Pay & Allowances 55 Pension Rules 20 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.

Leave rules, pension rules and procedure RECOMMENDED BOOKS

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

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

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NEW SYLLABUS FOR AAO (B-16) EXAMS

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) iii) Pensions TA 20% 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 Controllers Offices. *******************************

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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER-1 COST ACCOUNTING 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 Sr.# 1 2 3 4 5 6 7 8 9 SYLLABUS CONTENTS AREA Cost concepts and costing methods Accounting for materials Accounting for labour Accounting for overhead Types of costing systems Cost behavior Methods of cost estimation Costing for planning and control Cost for decision making Total WEIGHTAGE 40

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30 30 100

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 expensesdepartmentalized. Over and under applied overheads; Variance Analysis
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NEW SYLLABUS FOR AAO (B-16) EXAMS

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. RECOMMENDED BOOKS

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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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COST ACCOUNTING

PAPER2 Marks. 100. AUDITING/GOVERNMENT AUDITING SECTION. A: AUDITING Marks 50.

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 Sr.# SYLLABUS CONTENTS AREA WEIGHTAGE Principles and objectives of auditing 1 Legal and professional 10 2 considerations Professional ethics 3 Quality control 4 Planning and audit 10 5 Documentation of audit work 6 Accounting systems and internal 7 controls 20 Audit evidence 8 Audit techniques and procedures 9 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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NEW SYLLABUS FOR AAO (B-16) EXAMS

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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NEW SYLLABUS FOR AAO (B-16) EXAMS

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 Sr.# 1. 2. SYLLABUS CONTENTS AREA WEIGHTAGE Concept, Rules & Procedure 20 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.

RECOMMENDED BOOKS Name of the Book Practical Auditing Principles of Auditing Principles & Procedures of Auditing Author Spicer and Pegler F. R. De Paula 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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NEW SYLLABUS FOR AAO (B-16) EXAMS

Auditing Today Government Auditing The External Audit A Beginner's Introduction to Auditing Auditing Integrated Concepts and Procedures by INTOSAI Auditing Standard Elements of Certification Audit by Elements of Performance Audit by Constitution of the Islamic Republic of Pakistan Auditing Principles and Procedures by Audit Code Strengthening the Public Service Accountability A Conceptual Framework NAO Audit Manual for Certification Audit Audit Procedure Handbook.

Emile Wolf Malik Faiz Ahmed Anderson R. J Muhammad Akram Taylor and Glezen Muhammad Akram Khan Muhammad Akram Khan Kh. Amjad Saeed

Samuel Paul

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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER- 3
Marks. 50. STORE AND WORKS (MES) 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 Sr.# SYLLABUS CONTENTS AREA Store Accounting 1

WEIGHTAGE 25

RECOMMENDED BOOKS.

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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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.

NEW SYLLABUS FOR AAO (B-16) EXAMS

SECTION-2 WORKS (MES) ACCOUNTS Marks. 25. AIM: To acquaint candidates with Accounting of Specialized Branches relating to Defence audit branch and Defence Accounts branches. SPECIFICATION GRID Sr.# 1 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 Accountants 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 ************************* SYLLABUS CONTENTS AREA Accounts in MES WEIGHTA GE 25

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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER- 4
Marks: 50.

STORES AND WORKS (MES) (Practical) with Books SECTION-1 STORE ACCOUNTING Marks-25. AIM: To acquaint candidates with Accounting of Specialized Branches relating to Defence audit branch and Defence Accounts branches. SPECIFICATION GRID Sr.# SYLLABUS CONTENTS AREA Store Accounting 1 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. RECOMMENDED BOOKS 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.

WEIGHTAGE 25

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NEW SYLLABUS FOR AAO (B-16) EXAMS

SECTION-2 WORKS (MES) ACCOUNTS Marks. 25. AIM: To acquaint candidates with Accounting of Specialized Branches relating to Defence audit branch and Defence Accounts branches. SPECIFICATION GRID Sr.# SYLLABUS CONTENTS AREA Accounts in MES 1 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 Accountants 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

WEIGHTAGE 25

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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER 5
Marks.100. INFORMATION TECHNOLOGY (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 Sr.# 1 2 SYLLABUS CONTENTS AREA MIS E.D.P WEIGHTAGE 50 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. RECOMMENDED BOOKS Name of the Book Computer in Business Studies Computing Computers Management Information Systems, Conceptual Foundation, Structure and Development Computers Today Management Information Systems System Analysis and Design Computer Oriented Business System Management Information Systems Managing & Accounting for Information System Author H.Lucas J.L.Sardinas. Long and Long Garden B. Davis

Donald H. Sanders David Kreonke Kendall & Kendall Wayne S. Boutell R. L. Martino J.E.Cooks& B.H.Druy

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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER-6

Marks -100

GOVERNMENT ACCOUNTING (THEORY)

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 Sr.# SYLLABUS CONTENTS AREA WEIGHTAGE General concepts, Procedures and Practices 50 1 Systems in departmentalized accounts 50 2 Total 100 CONTENTS. SECTION-1 Marks50 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.

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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. RECOMMENDED BOOKS 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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NEW SYLLABUS FOR AAO (B-16) EXAMS

PAPER-7
Marks - 100

GOVERNMENT ACCOUNTING (PRACTICAL) WITH BOOKS 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 Sr.# SYLLABUS CONTENTS AREA WEIGHTAGE Application of General concepts, 50 1 Procedures and Practices Application of Systems in 50 2 departmentalized accounts Total 100 CONTENTS SECTION-1 GENERAL CONCEPTS, PROCEDURES AND PRACTICES Public Sector Accounting Cycle and the nature of accounting records. Constitutional frameworkfunctions 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. RECOMMENDED BOOKS 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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Marks50.

NEW SYLLABUS FOR AAO (B-16) EXAMS

* Appen Annexure EXEMPTION SCHEME Exemption for various subjects / papers of SAS (new syllabus) examination shall be admissible on the following basis:PAPERS Business communication & Behavioral Studies Financial Accounting Legal Framework of Public Sector Accounting Economics BASIS OF EXEMPTION CA-FE-I, ICMA-II, ICMA-F, SAS (Report writing or prcis & correspondance) C.A. Inter-I CA-FE-I, B.Com, M.Com, SAS (Commercial Accounting) LLB M.A (Economics), CA Inter-II, CA-FE-I, ICMA-I, ICMA-F, MBA, M.Com, B.Com, SAS (Government Accounting) Theory and Practical CA Inter-II, CA-FE-I,ICMA-P-II, ICMA-PEII, MBA SAS (Government Accounting Theory and Practical SAS (Government Accounting- Theory and Practical CA Inter-I CA FE-II, ICMA-II ICMA-PE-III, Company Law / Taxation, SAS (Cost Accounting CA-FE-II, ICMA-III, ICMA-PE-II SAS (Public Works Accounts Rules & Procedure (T & P) / Works and Store Theory and Practical. SAS (Government Auditing) SAS (S & FR- Theory & Practical) / Pay, Pension and TA Rules (Theory). SAS (S & FR- Theory & Practical) / Pay, Pension and TA Rules (Practical).

Business Mathematics & statistics Government Accounting (Theory) Government Accounting (Practical) Cost Accounting Information Technology Public Works Accounts Rules & Procedure (T & P) / Works and Store (T & P) Auditing / Government Auditing S & FR (Theory) / Pay, Pension and TA Rules (Theory). S & FR (Practical) / Pay, Pension and TA Rules (Practical).

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NEW SYLLABUS FOR AAO (B-16) EXAMS

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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