Accountancy & Auditing Syllabus for CSS Exam

Accountancy and Auditing Syllabus

Group-I, Optional Subjects CSS Syllabus (Two Papers with 100 marks each)

The accountancy and auditing syllabus for CSS Exam comes from group-I of optional subjects. Each subject consists of 200 Marks, and they are divided into two papers. So, if you count your optional subjects, you will count two papers.

Accountancy and Auditing Syllabus for CSS Exam includes an FPSC syllabus from basic to the advanced. You can do Accountancy and auditing CSS preparation that includes the hierarchy of Financial Accounting, types of accounting, Cost and Managerial Accounting, Auditing, Business Taxation, and Business Studies that will assist you in preparing well for Competitive Examination through Books, Past Papers, and other related material. 


Accountancy and Auditing Syllabus for CSS Exam- Paper-I 

Paper-I: (MARKS-100) 

MCQs: 20 Marks

Subjective: 80 Marks

Time : 3 hours

  1.  Financial Accounting (50 Marks)
  2.  Cost and Managerial Accounting (50 Marks)

Let’s see one-by-one

A. Financial Accounting (50 Marks)

I. Fundamental Accounting Principles Concepts 

  • Assumptions and Conventions
    • Nature and Scope of Accounting
    • Accrual/Matching Concept
    • Consistency of Presentation and Comparability
    • True and Fair View
    • Neutrality
    • Materiality
    • Prudence 
    • Completeness
    • Understandability and Usefulness
    • Going Concern, and Substance over Form

II. Accounting Cycle/Process and Financial Statements

  • Transactions and/or Events
  • General Journal
  • General Ledger
  • Trial Balance (Unadjusted)
  • Adjusting Entries and Adjusted Trial Balance
  • Worksheet
  • Financial Statements including Income Statement 
  • Statement of Financial Position (Balance Sheet)
  • Statement of Cash Flows and Statement of Changes in Equity in accordance with the Financial Reporting Framework as specified by the International Accounting Standard Board (IASB) through IFRS’s/IAS’s, and by the Securities and Exchange Commission of Pakistan through Companies Ordinance 1984, and Closing and Reversing Entries.

III. Attributes, and Significance of Accounting Information

  • Attributes of Accounting Information
  • Information/Reporting Requirements of various Users/Stakeholders of Financial Statements including:
    • External (Investors/Shareholders, Creditors, Suppliers, Lenders, Financiers, and Government Agencies
    • Internal (Board of Directors, Partners, Managers, Employees, etc.) 
    • Stakeholders

IV. Accounting for common Legal Forms of a Business 

  • Accounting Principles and Financial Statements of Sole-proprietorship
  • Partnerships
  • Joint Stock Companies including Banking Companies
  • Excluding Advanced Topics like:
    • Amalgamation
    • Capital Reduction
    • Consolidation 

V. Accounting for Associations Not-for-profit, and for Public Sector

  • Accounting Principles 
  • Financial Statements of Associations Not-for-profit
  • Public Sector Entities according to the Standardized Financial Reporting Framework given by the International Public Sector Accounting Standards (IPSAS) Board and Practices being followed in the country.

VI. Accounting for Non-current Tangible Assets

  • Fundamental Concepts
  • Principles concerning Non-current Assets
    • Cost
    • Depreciable Amount
    • Depreciation
    • Fair Value
    • Property
    • Plant and Equipment
    • Residual Value and Useful Life
  • Depreciation Methods and their Application (as specified by the International Accounting Standards Board)
    •  Straight-line Method
    • Reducing Balance Method
    • The number of Units Produced and basic know-how of other Methods/Techniques being commonly used by the Industry.

VII. Fundamental and Technical Analysis of various Forms of Organizations

  • Financial Statements’ Analysis
  • Horizontal (Measuring Change)
  • Vertical (Ratio) Analysis
    • Liquidity Ratios
    • Activity Ratios
    • Debt Ratios
    • Profitability Ratios
    • Market Ratios
    • Technical and Industry Analysis

B. Cost and Managerial Accounting (50 Marks)

VIII. Fundamental Cost Accounting Principles and Concepts

  • Nature and Scope of Cost and Managerial Accounting
    • Cost Concepts
    • Elements and Classification
    • Underlying Differences among
      • Financial
      • Cost
      • Management Accounting 

IX. Accounting for Material, Labor, and Factory Overheads (FOH)

  • Recognition and Valuation Principles for Material Inventory
  • Methods to control Material Inventory
    • Calculation/Measurement
    • Accounting for Payroll for all forms of Labor
    • Time Rate
    • Piece Rate Systems
    • Commonly used Group Incentive Schemes
    • Factory Overhead Costs and FOH Rate
    • Departmentalization of FOH Costs their Allocation, Apportionment, and Reapportionment
    • Primary and Secondary Distributions
    • Methods for Secondary Distribution including 
      • Both Repeated Apportionment/Distribution
      • Algebraic Method

1-Costing for Specific Jobs, and Process Costing

  • Nature of a Specific Job
  • Job-order Costing
    • Process Flow
    • Process Costing by the use of Cost of Production Report (CPR)

2-Management Accounting for Planning, Decision-making, and Control

  • Budgeting and its Use
    • Meaning 
    • Nature of a Budget
    • Major Forms of a Budget including
      • Production and Sales Budget
      • Cash Budget
      • Flexible Budgets
      • Zero-based Budget
      • Master Budget
    • Break-even Analysis
      • Difference between Marginal and Absorption Costing Techniques
      • Concept of Relevant Cost
      • Application of Contribution Margin
      • Use of Contribution Margin
      • Concepts for Planning and Decision-making under Break-even Analysis
    • Variance Analysis 
      • Meaning
      • Use of Standards and Variances
      • Major Classification of Variances including
      • Material
      • Labor
      • FOH Variances and their Computation


Accountancy and Auditing Syllabus for CSS Exam- Paper-II 

MARKS: 100

Auditing (40 Marks) 

I. Fundamental Auditing Principles and Concepts

  • Audit and Auditing
  • True and Fair View
  • Audit Assertions
  • Reasonable Assurance
  • Documentation and Audit Evidence
  • Audit Program
  • Audit Risks
  • Computer Information Systems (EDP Systems)
  • Computer-assisted Audit Techniques (CAAT)
  • Inspection
  • Fraud
  • Going Concerned
  • Audit Materiality
  • Misstatement
  • Governance and Premise
  • Tests of Control and Substantive Procedures

II. Audit Considerations, Dimensions, and Conduct

  • Internal Control System
  • Internal Audit
  • Internal VS External Audit
  • Responsibility for Financial Statements
  • Audit Planning
  • Scope of an Audit
  • Objectives of an Audit
  • Inherent Limitations of an Audit
  • Risk Assessment and Management
  • Corporate Governance
  • Classification of Audit
  • Qualities of an Auditor
  • Auditing in Computer Information Systems (EDP Systems) 
  • Computer-assisted Audit Techniques
  • General Auditing Principles
  • Techniques that are commonly applied to various Types of Undertakings including:
    • Merchandising
    • Manufacturing
    • Banking
    • Insurance
    • Investment Entities
  •  Audit Performance and Audit Completion

III. Role and Responsibilities of an Auditor

  • Auditor’s professional and legal Rights
  • Responsibilities & Duties
  • Liabilities
    • Auditor’s Opinion and Report
    • Classification (Types) as specified under the Companies Ordinance 1984 as per in the handbook of IFAC.

Business Taxation (30 Marks)

IV. Tax Structure, and Fundamental Concepts vis-à-vis Income Tax in Pakistan

  • Tax Structure in Pakistan
  • Fundamental Definitions
  • Terminologies defined under Section 2 of the Income Tax Ordinance 2001

V. Income Tax and Sales Tax Principles, and their Application 

  • Selected Provisions from Income Tax
  • Income for Tax Purposes (Section 4, 9 & 10)
  • Heads of Income (Section 11)
  • Tax Payable on Taxable Income (First Schedule to the Ordinance)
  • Salary Income and Taxation (Sections 12 to 14) 
  • Income from Property (Sections 15 & 16)
  • Income from Business(Sections 18 to 20)
  • Capital Gains (Sections 37 to38)
  • Income from other sources(Section 39, 40, 101(6), 111)
  • Tax Credits (Sections 61 to 65)
  • Taxation of Individuals
  • AOPs and Companies (Sections 86, 92, 94)
  • Due Date for Payment of Tax (Section 137)
  • Deduction of Tax at Source/With-holding Tax (Sections 147, 149, 153, 155) and related Income Tax Rules 2002
  • Selected Definitions and Provisions from Sales Tax
  • Scope of Tax (Section 3)
  • Exempt supply [Section 2(11)], Goods [Section 2(12)]
  • Input Tax [2(14)], Registered person [Section 2(25)]
  • Supply [Section 2(33)]
  • Tax [Section 2(34)]
  • Retail Price and Retailer [Section 2(27)& 2(28)]
  • Taxable Activity [Section 2(35)]
  • Taxable Supply [Section 2(41)]
  • Tax Fraction [Section 2(36)]
  • Tax Period [Section 2(43)]
  • Time of Supply [Section 2(44)]
  • Determination of Tax Liability [Section 7]

Business Studies, and Finance (30 Marks)

VI. Business Studies

  • Nature and Scope of a Business Entity
  • Contemporary Challenges posed to a Business
    • Common Legal Forms of a Business Entity
    • Sole proprietorship
    • Partnership
    • Joint Stock Company
    • Features
    • Formation and Management
    • Business Combinations and their Scope
    • Business Cycle and its Implications
    • Role of Information Technology in Business

VII. Finance

  • Meaning
  • Nature and Scope of Finance
  • Financial Management
    • Common Modes of Business Finance 
      • Short
      • Medium
      • Long-term Financing
    • Nature and Scope of Financial Markets and Institutions
  •  Features and Classification of Financial Markets
    • Financial Management Techniques for Decision making
    • Time Value of
      • Money
      • Cost of Capital
      • Capital Budgeting Techniques

Moreover, you can get help with the Accountancy and Auditing CSS Past Papers

Accountancy and Auditing CSS paper-I 2019

Accountancy and Auditing CSS paper-II 2019

CSS Accountancy and Auditing paper-I 2018

CSS Accountancy and Auditing paper-II 2018

How to make CSS Accountancy and auditing notes?

Well, most of the books are available online. You need to go for a compact and smart study. Use online resources to have definitions and theories and the rest is your numerical comprehension. The maximum practice, the maximum you get confidence.

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In the end, ECTI is hoping that you have gone through the Accountancy and Auditing Syllabus for the CSS, and you will be able enough in Accountancy and auditing CSS preparation.

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