CPD - Continuous Professional Development Syllabus 2018

 Syllabus for Continuous Professional Development tests shall be as under

CPD I Test:

C-1 Financial Management, Duration 2 hours, Maximum Marks: 100

C-2 Auditing Principles and Standards, Duration 2 hours, Maximum Marks: 100

CPD II Test:

C-3 Public Finance, Duration 2 hours, Maximum Marks: 100

C-4 Auditing- Methods and Techniques, Duration 2 hours, Maximum Marks: 100

CPD III Test:

C-5 General Studies & Current Economic Developments, Duration 2 hours, Maximum Marks: 100 C-6 Applied Public Auditing, Duration 2 hours, Maximum Marks: 100

Detailed Syllabus

Stage I Examination

C I – Financial Management

Duration 2 hours,                                                                                   Maximum Marks: 100

1. Analysis of Financial Statements:

Analysis and Interpretation of Financial Statements, Techniques and limitations of FinancialAnalysis, Ratio Analysis, Funds Flow Analysis and Cash Flow Analysis.

2. Concepts of Value and Return:

Time preferences for money, present value, future value, value of annuity, Rate of Return.

3. Investment Decisions:

Concepts of Capital Budgeting, Capital Budgeting Appraisal Methods, Tactical Versus StrategicInvestment Decisions, Capital Rationing, Factors Affecting Capital Investment Decisions.

4. Financial Planning and Capital Structure:

Estimating Capital Requirements, Fixed Capital, Working Capital, Capitalization, Patterns ofCapital Structure

5. Sources of Finance:

Financial Markets, Security Financing, Debentures, Loan Financing, Bridge Finance, LoanSyndication, Book-Building, New Financial Institutions, Venture Capital Institutions, MutualFunds, Factoring Institutions, New Financial Instruments: Commercial Papers, Securitization ofDebt, Global Depository Receipts (GDR), Derivatives: Options, Forward,

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Future and SWAP,Lease Financing: Concept of Leasing, Types of Lease Agreements, Difference Between HirePurchase and Lease Financing.

6. International Financial Management:

Foreign Exchange Market, Exchange Risk Management, Mode of Payment in InternationalTrade; Open Account, Bank Transfer, Letter of Credit, Consignment Sale.

7. Public Procurement:

Principles and Methods of Public Procurement, Transparency and Professionalism in Publicprocurement, Penalties & debarment etc. Provisions relating to Procurement of goods andservices, Outsourcing of services, Contract management and Inventory management asembodied in the General Financial Rules, Indian Contract Act, 1872, The Arbitration &Conciliation Act, 1996.

Suggested Readings:

1.  Taxman’s Financial Management by Sh. Ravi M Kishore

2.  Indian Financial System by Sh. H R Machiraju, published by Vikas Publishing House Pvt. Ltd. New Delhi - 8.

3.  Public Procurement Bill, 2012.

4.  General Financial Rules (Chapter 6,7,8)

5.  Indian Contract Act, 1872.

6.  The Arbitration & Conciliation Act, 1996.

C 2 – Auditing Principles and Standards Duration 2 hours,

Maximum Marks: 100

Financial and Compliance Audit, Methods and Procedure of auditing including auditing inInformation Technology (IT) Environment, Regulations issued on Audit and Accounts issued bythe CAG of India. MSO (Audit) including Financial Attest Audit Manual, Auditing Standardsissued by the CAG of India, International Auditing Standards issued by the IFAC. AuditingStandards issued by the INTOSAI

Suggested Reading:-

1.  Auditing Standards issued by the CAG of India

2.  International Auditing Standards issued by IFAC

3.  Auditing Standards issued by the INTOSAI

4.  MSO (Audit) including financial attest audit manual

5.  Regulations on Audit and Accounts.

Stage II Examination

C 3 – PUBLIC FINANCE

Duration 2 hours, Maximum Marks: 100 1. Public Financial Management

Meaning and Importance of Public Finance, The Principle of Maximum Social Advantage,

Roleof Public Finance under different Economic Systems, Concept and Principles of

FederalFinance, Analytical study of Union Budget, Government Accounting Standards issued

by the

GASAB.

2. Public Expenditure

Principles of Public Expenditure, Revenue and Capital Expenditure, Development and Non-Development Expenditure, Effects of Public Expenditure

3. Public revenue

Sources of Revenue, Taxes, Canons of Taxation, Characteristic of Good Tax System, TheTheory of Tax Structure Development, Changes in Tax Structure under the Impact ofEconomic Development, Incidence of taxation Money Burden and Real Burden. FactorsDetermining Incidence, Relative Merits and Demerits of Direct and Indirect Taxes.

4. Problem of equity

Cost of Service Principle, Benefit or ‘Quid Pro Quo’ Theory. ‘Ability to Pay’ Theory,Proportional vs. Progressive Taxation. Taxable Capacity.

5. Public debt

Classification of Public Debt. Purposes of Public Debt. Methods of Debt Redemption.Voluntary or Forced Loans. Effects of Public Debt on Production, Distribution, Consumptionand Level of Income and Employment.

6. Economic development and Planning

Concepts of National Income & Product, Central Banking Principles, Functions of CentralBanks, Monetary Policy Vs. Fiscal Policy, Balance of Payments, Determinants of economicgrowth, Government Measures to Promote Economic Development, Regulatory Bodiesestablished by laws, Provision of Economic and Social Overheads, Provision of FinancialFacilities, Institutional Changes, Direct Participation, Indirect Measures, Forms of Planning:Planning by inducement and planning by Direction, Centralized planning vs. DecentralizedPlanning Pre-requisites of a Successful Planning.

Suggested Readings:

1.     Public Finance in Theory & Practice by Dr. S K Singh, published by S Chand & Company,New Delhi

2.     Modern Economic Theory by Dr. K KDewett and Sh. M H Navalur published by ShyamLal Charitable Trust, New Delhi (sole distributor S Chand & Company Ltd, New Delhi)

3.     Union Budget

4.     Government Accounting Standards issued by the GASAB

5.     Fiscal Responsibility and Budget Management Act, 2003

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C 4 – Auditing – Methods and techniques Duration 2 hours,

Maximum Marks: 100

1.   Performance Auditing including Public Private Partnership (PPP) audit, Formulatingaudit plans including risk analysis. Use of quantitative techniques and analytical procedure inaudit, Framing audit objectives and issue analysis, Setting audit criteria, audit of Internalcontrols including forensic audit, Audit evidence and documentation, Quality assurance inauditing including audit quality management framework and Assurance through Peer Review,Reporting and following audit findings/observations.

2.      Practice Guide Series and supplementary guidelines issued by the CAG of India.International Auditing Standards and International Auditing Practice Statements issued by theIFAC, Auditing standard issued by the INTOSAI.

Suggested Reading:-

1.  Auditing Standards & Performance Auditing Guidelines issued by the CAG of India

2.  Public Audit Guidelines issued by the CAG of India.

3.  Internal Control Evaluation Manual issued by the CAG of India.

4.  Practice Guide Series and supplementary guidelines issued by the CAG of India.

5.  International auditing standards and practice statements issued by IFAC

6.  Auditing Standards and guidelines issued by INTOSAI

7.  CAG’s standing order on role of audit in relation to cases of fraud & corruption

8.  Audit Quality Management Framework and Quality Assurance through Peer Review

Stage III Examination

C 5 – General Studies & Current Economic Developments Duration 2 hours,

Maximum Marks: 100

Candidate’s awareness of current national issues and topics of socio- economic relevance inCurrent environment such as the following:

1.     The Indian economy and issues relating to planning, mobilization of resources,growth, development and employment.

2.     Issues arising from the social and economic exclusion of large sections from thebenefits of development issues relating to good governance and accountability tothe citizens.

3.     Environmental issues, ecological preservation, conservation of natural resources.

4.     Issues relating to India’s Economic Interaction with the World such as foreign trade,foreign Investment: economic and diplomacy issues relating to oil, gas and energyflows: the role and functions of IMF, World Bank, WTO, WIPO etc which influenceIndia’s economic interaction with other countries and international institutions.

5.     Current developments in the field of science and technology, informationtechnology, space, nanotechnology, biotechnology and related issues regardingintellectual property rights.

C 6 – APPLIED PUBLIC AUDITING Duration 2 hours,

Maximum Marks: 100

Candidate’ proficiency in application of best practices in Public Auditing, reporting of auditobservations and assessing the impact of audit findings will be tested on the basis of generallyaccepted auditing and assurance standards such as – Auditing Standards, Guidelines and Bestpractices series issued by the C&AG of India,

International Auditing standards, practice statements and Assurance Standards issued by the IFAC.

Auditing standards and best practices guidelines issued by the INTOSAI.

Note:-Wherever there is reference to the rules and regulations, the 'cut off date' forchanges/amendments would be as on 1st April of the previous year.