WBPSC Audit and Accounts Service Exam 2016 Syllabus
Detailed Syllabus of Optional Papers
i) Statistics : Meaning and Scope of Statistics – Statistics as applied in the field of Business and Economics, Compilation, Classification and Tabulation of Data.
Frequency distribution and Graphs – Diagrammatic representation including different types of Charts, Bar Diagram, PieDiagram, Histogram, Pictograms.
Measures of Central Tendency – Compilation of Arithmetic Mean, Median, Mode. Comparison of Mean, Median, Mode. Other Measures of Central Tendency.
Measures of Dispersion – Meaning of Dispersion Range. Mean Deviation and Standard Deviation, Quartile Deviation. Moments and Measures of Skewness and Kurtosis.
The normal curve – standard form – properties of the normal curve.
Linear Regression and Correlation – Regression – Coefficient of Correlation – relation between coefficients of Regression and Correlation.
Time Series, Moving average, trend and fluctuation – analysis of time series – elimination of seasonal fluctuation by moving averages. The least square method-fitting of straight lines. Business forecasting.
Index Number and their uses – Problems in the construction of Index Numbers – Cost of living Index Number – Indian examples – Fisher’s ideal index – time reversal test.
The main sources of official Statistics – their character and meaning – shortcomings of official statistics.
ii. Banking :
a. Banking Theory : General Structure and Methods of Commercial Banking – the Management of Banking Resources – Loans and advances – Investments – Acceptances – Cash Reserves – Market rate of discount – Recent tendencies of Commercial Banks – Trends towards mixed banking – Theories of assets management – Real Bills Doctrine – Its applicability in modern conditions – Shift ability and anticipated Income Theories – Term lending – Indian Banking – Structure of their assets and liabilities – The Banking Companies Act, 1949 – Role of Indian Commercial Banks in economical development.
Central Banks – objectives and Functions – Discount Rate Policy – Open market operations – Variable Reserve Ratio – Selective Credit Control – Credit Control Measures of the Reserve Bank of India.
|WBPSC Audit and Accounts Service Exam 2016|
b. Banking Practice : Relation between the Banker and the Customer – Deposit Account – Current Account – Accounts of Minor, Infants, Joint Accounts – Bankrupts – Partnership – Trading and Non-Trading Companies – The Cheques and Bills of Exchange Daily Balance – The General Ledger – Deposit Receipt – Purchase and sale of Stocks and Shares – Foreign Exchange Business.
c. Banking Law : Banker and the Customer – Banker’s entries in the Pass Book – Paying Banker and the Collecting Banker – Sufficient reasons for refusing payment – Risks and duties of paying Bankers and their Statutory Protection – Statutory Protection of Collecting Banker – The Negotiable Instruments Acts – Advances against securities – Advances against guarantee – Guarantee and Indemnity – The form of a Bank’s Guarantee – The Banker and the Guarantor – Advances against collateral securities – Hypothecation and mortgage – Advances against goods and documents of title to goods – Bills of loading – Dock and Warehourse Warrants – Letter of Hypothecation – Advances against land and building.
d. Currency and Foreign Exchange : Money in a modern Economy – value of money – Measurement of changes in the value of money – Effect of changes in the Value of money – Theory of Inflation and Deflation – Control of Inflation and Deflation.
Monetary standards – I.M.F. – Foreign Exchange Theory – Exchange Control.
iii. Economics : Economics – Subject matter and scope. Theory of Consumer Demand. Theory of the firm under different market forms.
Factor Pricing – Wages, Interest, rent and Profits.
Monetary Systems – Commercial Banking and Central Banking.
Monetary Theory – Income, Employment and output – Value of money – Inflation and Deflation.
Monetary Policy – International Trade and Foreign Exchange – Balance of Payments – Exchange Rate Determination – Exchange Control.
Government Finance – Taxation – Public Expenditure – Fiscal Policy, Economic Planning.
iv. Advanced Accountancy : Funds flow analysis – Purchase of Partnership firm by limited company – Merger or absorption of companies – Reduction or reconstruction of capital – Valuation of goodwill – Valuation of shares – Holding Company accounts and consolidated balance sheet – Branch Accounts, including foreign branches – Double accounts for Public Utility Undertakings – Loss of profits insurance – Government accounts – Ratio analysis from published accounts – Presentation of published accounts and Schedule VI of Companies Acts – Alternative ways of presenting published accounts.
v. Advanced Commercial Geography : Bridging space and time in economics – Location of economic activities and trade as observed of each other in relation to space – factor movements and commodity movements as alternatives – trade as bridging time – similarly and non distinguishability between trade and production. The concept of region in economics. Economic theory of location – Factors promoting location of production and trade – Geographical and natural factors – Historical factors – Economic factors. Measurement of location and localization – coefficient of localization and spatial concentration – Measures by alternative indicators. Advantages and disadvantages of localization.
Economic theory of interregional and international trade – its limited applicability – absolute and relative advantages – comparative costs – Measurement of comparative cost – balancing cost and advantages with cost of trade and transport – trade as transcending location – storage and transport as essential elements of trade – commodity movements as substitute for factor movements. Economic significance and the real social cost of trade. Possible nature of malfunctioning of location and trade as elements of economic organization – the need for control. Popular misconceptions about trade.
vi. Business Organisation and methods : Taylor’s Scientific Management – Fayol’s general management – principles – More recent schools of Management thought e.g., Behavioural Science, Quantitative Methods, etc. – Management as decision making.
Organisation Structure : Authority – responsibility relationships – Communication channels – functional organization – Decentralised structures and arguments for and against them – legal forms of business in India and their distinguishing characteristics, e.g., firms, Hindu Undivided family, Company – Private and Public, Government Companies.
Management Process : Delegation – Objectives and Policies – Participative management practices – Long-range planning – Training and development of human resources – Appraisal of performance – Control and Co-ordination – “Management by objectives” and other total approaches to management.
Basic ideas about production management, marketing management, purchase management, financial management – Public Sector Management in India.
vii. Commercial and Industrial Law : Understanding the Structure of Commercial Law – Fundamentals of the law of contract and the Indian Contract Act – Special cases of contract – Negotiable instruments, bailment and associated areas. The problems of fictitious legal personality – The limited liability company as a special case – The social problems created by the operations of such fictitious persons – The salient points of the Indian Companies Act. The Monopolies and Restrictive Trade Practices Act. The necessity of protecting weaker parties in a contract and of protecting social interests as basis of industrial law – The salient points of the Indian Factories Act and associated legislations. Labour laws – divided into laws relating to wages and industrial disputes. The principal points covered by the Indian Trade Unions Act and Industrial Disputes Act – Payment of Wages and Minimum Wages Acts. Welfare, wealth and safety measures in important labour laws.
viii. Auditing : The general idea of auditing – The limited special significance in corporate legislation – Statutory audit – The conventional procedure of statutory audit – Necessary extent of checking and verification – Extent of physical verification where necessary – Audit report – Auditors duties and responsibilities – Associated Provisions of the Indian Companies Act. The special case of and provisions for cost audit.
Auditing and Accountancy – The general meaning of the term auditing – Authorisation audit, propriety audit and achievement audit – plan fulfillment as audit. Auditing in the non-corporate sector. The structure, nature and special features of Government audit. The office of the Auditor – General and Comptroller in the Indian Constitution – Indian Audit and Accounts Service – Performance of the Government audit system – Government Audit and the Parliament, Audit of different types of Government organizations.
Auditing and the unorganized Sector – Where auditing legally necessary – Auditing and taxation – Social significance of auditing – Nationalization of auditing.
ix. Costing : Cost classification : a) Prime costs and overheads, (b) Direct or variable or marginal costs and fixed costs – imputed, opportunity and sunk cost concepts – Perpetual inventory system for materials – Booking of labour time. Full cost methods or Absorption costing : Job costing, Process costing and contract costing – Allocation and apportionment of overhead costs through various bases.
Costing for Decision making : Marginal costs – Contribution – Limiting factor – Break-even analysis – Profit-volume ratio – differential costing – Decisions like “make or by”, accept or reject an offer, shut down or keep running a department or branch, etc.
Costing for Control : Standard costing – Budgetary control – Their comparison – Responsibility accounting or reporting – Variance analysis of materials, labour and overheads.
x. Taxation Laws and Practice : Direct Taxes : Income Tax procedures for assessing taxable income of individuals and partnership firms – Various heads of chargeable income – Various relief – Cases.
Company taxation – Various adjustments to published profit figures for assessment purposes – various kind of tax incentives for new fixed investments, new companies, etc.-cases.
Indirect Taxes – Sales tax laws and procedures – Inter-State sales tax problems.
Excise duties on purchases and sales.