OFFICE OF COMPTROTLER AND AUOITOR GENERAT OF INDIA

10 BAHADUR SHAH ZAFAR MARG

NEW DETHI - 110124

No. 81o/14-Exam/Revised syllabus/2010

Dated 27 August 2019

Examination Wing
Circular No. f7 of 2OL9

To

Heads of Department of IA&AD offices

(As per e-mail list)

Subject: Revised Syllabus of Revenue Audit Examination and continuous Professional

Development Examinations

Sir/Madam,

The competent authority has approved the revised syllobus of the following
depa rtmental exa minations:

(i) Revenue Audit Examination

{ii) continuous Professional Development Examinations (cPD l, cPD ll & cPD llll

The revised syllabus (copy enclosed) is being uploaded on CAG's website and can be
viewed/down loaded from the website. No hardcopy will be sent.

2. The revised syllabus of Revenue Audit Examination shall be implemented from the
Main Examination 2019, which is likely to be held in the month of November.

3. The revised syllabus of Continuous Professional Development Examinations (CPD l, CPD

1l & CPD lll) shall be implemented from the Main Examination 2020.

4. 6oods and Services Tax (GST) has been introduced in the revised syllabus of Revenue
Audit Examination. Therefore, necessary training in GST needs to be imparted to the candidates.
lnstructions in this regard will be issued shortly.

5. Receipt of this circu la r may please be acknowledged by email to e2!a [Lsect io n @ c a g. go v. i n

I"L L
Yours fa ithfu llv.

(Mar{ish Kumar}
Director General (Examination)
 Revised Syllabus of
Continuous Professional Development Examinations

Stage I Examination

C-1 Financial Management

Duration: 2 hours Maximum Marks: 100

1. Analysis of Financial Statements:

Analysis and Interpretation of Financial Statements, Techniques and

limitations of Financial Analysis, Ratio Analysis, Funds Flow Analysis and Cash
Flow Analysis.

2. Concepts of Value and Return:

Time preference 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 Strategic Investment Decisions, Capital Rationing, Factors
Affecting Capital Investment Decisions.

4. Financial Planning and Capital Structu re:

Estimating Capital Requirements, Fixed Capital, Working Capital,

Capitalization, Patterns of Capital Structure.

5. Sources of Finance:

Fi nancial Markets, Security Financing, Debentures, Loan Financing, Bridge

Finance, Loan Syndication, Book-Building, New Financial Institutions, Venture
Capital Institutions, Mutual Funds, Factoring Institutions, New Fi nancial
Instruments: Commercial Papers, Securitization of Debt, Global Depository
Receipts (GDR), Derivatives: Options, Forward, Future and SWAP, Lease
Financing: Concept of Leasing, Types of Lease Agreements, Difference
Between Hire Purchase and Lease Financing.
 6. International Financial Management:

Foreign Exchange Market, Exchange Risk Management, Mode of Payment

in International Trade; Open Account, Bank Transfer, Letter of Credit,
Consi gn ment Sale.

7. Public Procurement:

Principles and Methods of Public Procurement, Transparency and

Professionalism in Public procurement, Penalties & debarment etc. Indian
Contract Act, 1872, The Arbitration & Conciliation Act, 1996.

Suggested Reading:

The suggested reading is as follows:

1. Taxman's Fi nancial Management by Sh. Ravi M. Kishore

2. Indian Financial S y s t e m by Sh. H R Machiraju, published by Vikas Publishing

House Pvt. Ltd. New Delhi-8.

3. The Indian Contract Act 1872 as amended up to 31 December 2017

4. The Arbitration & Conciliation Act, 1996 as amended up to 31 December 2017

C-2 Accounting and Auditing Principles & Standards

Duration: 2 hours Maximum Marks: 100

Provisions of -

1. CAG’s Auditing Standards 2017

2. International Auditing Standards issued by the IFAC

3. Indian Accounting Standards (IND ASs) notified by the Ministry of Corporate Affairs

4. Indian Government Accounting Standards (IGASs) issued by Government

Accounting Standards Advisory Board (GASAB)

5. International Public Sector Accounting Standards (IPSAS) issued by International

Public Sector Accounting Standards Board (IPSASB)

6. Guidelines on Data Analytics issued by CAG

Suggested Reading:

The suggested reading is as follows:

Standards and Guidelines issued by the authorities concerned, as indicated above.

 Stage II Examination

C-3 Public Finance

Duration: 2 hours Maximum Marks: 100

Sl. No. Syllabus and Topics

1. Public Financial Management

Meaning and Importance of Public Finance , The Principle of Maximum Social
Advantage , Role of Public Finance under different Economic Systems, Concept
and Principles of Federal Finance, Latest Finance Commission-
recommendations and implementation (as available on 1st April of the previous
year). Analytical study of Union Budget and Fiscal Responsibility and Budget
Management Act, 2003

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, The Theory of Tax Structure Development, Changes in Tax Structure
under the Impact of Economic Development, 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.

5. Public Debt
Classification of Public Debt. Purposes of Public Debt. Methods of Debt
Redemption. Effects of Public Debt on Production, Distribution, Consumption
and Level of Income and Employment

6.. Economic Development and Planning

Concepts of National Income & Product, Central Banking Principles, Functions
of Central Banks, Monetary Policy Vs Fiscal Policy, Balance of Payments ,
Determinants of economic growth , Government Measures to Promote
Economic Development, Regulatory Bodies established by laws, Provision of
Economic and Social Overheads , Provision of Financial Facilities , Institutional
Changes, Direct Participation, Indirect Measures, Forms of Planning: Planning
by inducement and planning by Direction, Centralized planning vs.
Decentralized Planning Pre-requisites of a Successful Planning
Suggested Reading:

The suggested reading is as follows:

(i) Public Finance in Theory & Practice by Dr. S. K. Singh, published by

S. Chand & Company, New Delhi

(ii) Part II to VIII of Modern Economic Theory by Dr. K. K. Dewett and

Sh. M. H. Navalur published by Shyam Lal Charitable Trust, New Delhi (sole
distributor S. Chand & Company Ltd., New Delhi)

(iii) Union Budget (latest available)

(iv) Fiscal Responsibility and Budget Management Act, 2003 and FRBM Rules
2004, as amended up to 1st April of the previous Financial Year

(v) Recommendations of latest Finance Commission (as available on the 1st April
of the previous Financial Year)
C-4 General Principles of Economics

Duration: 2 hours Maximum Marks: 100

Sl. No. Syllabus and Topics

Economics
1. Basic Concepts

2. Demand and Supply

3. Consumer Theory

4. Production and Costs

5. Types of Markets

6. Definitions and characteristics of different types of markets

International Trade
7. Basics – classical and neo-classical trade theories

8. Instruments of Trade Policy

9. International Financial System

Suggested Reading:

The suggested reading is as follows:

(i) Economics by Paul Samuelson and William Nordhaus (Indian Edition)

(ii) Modern Economic Theory by K.K. Dewett & M.H. Navalur

 Stage III Examination

C5- General Studies & Current Economic Developments

Duration: 2 hours Maximum Marks: 100

This paper seeks to test the candidate's awareness of current national issues and
topics of socio- economic relevance in current 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
the benefits of development issues relating to good governance and
accountability to the 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 energy flows: the role and functions of IMF, World Bank, W.T.O., WIPO,
etc., which influence India's economic interaction with other countries and
international institutions.

5. Current developments in the field of science and technology, information

technology, space, nanotechnology, biotechnology and related issues
regarding intellectual property rights.

6. Sustainable Development Goals and their implementation in India

Suggested Reading:

The suggested reading/sources are as follows:

http://www.niti.gov.in/content/overview-sustainable-development-goals#
National e-Governance Programme (NeGP)
http://meity.gov.in/divisions/national-e-governance-plan
Digital India
http://digitalindia.gov.in/
C6 Information Systems Audit

Duration: 2 hours Maximum Marks: 100

PART I: INTRODUCTION
1 Overview of Information Systems Auditing
2 Conducting an Information Systems and Audit
PART II: THE MANAGEMENT CONTROL FRAMEWORK
3 Top management Controls
4 Systems Development Management Controls
5 Programming Management Controls
6 Data Resource Management Controls
7 Security Management Controls
8 Operations Management Controls
9 Quality Assurance Management Controls
PART III: THE APPLICATION CONTROL FRAMEWORK
10 Boundary Controls
11 Input Controls
12 Communication Controls
13 Processing Controls
14 Database Controls
15 Output Controls
PART IV: EVIDENCE COLLECTION
16 Audit Software
17 Code Review, Test Data and Code Comparison
18 Concurrent Auditing Techniques
19 Interviews, Questionnaires and Control Flowcharts
20 Performance Measurement Tools
PART V: EVIDENCE EVALUATION
21 Evaluating Asset Safeguarding and Data Integrity
22 Evaluating System Effectiveness
23 Evaluating System Efficiency
PART VI: INFORMATION SYSTEMS AUDIT MANAGEMENT
24 Managing the Information Systems Audit Function
Suggested Reading:
The suggested reading/sources are as follows:
Information Systems Control and Audit by Ron Weber (published by Pearson)