How to prepare Accounts and Auditing for UPSC EPFO Exam 2025?

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Published on 21 November 2025 by
How to prepare Accounts and Auditing for UPSC EPFO Exam 2025

The Accounts and Auditing portion of the UPSC EPFO EO/AO and APFC examinations plays a major role in determining a candidate’s overall score. While the EO/AO exam focuses primarily on General Accounting Principles, the APFC exam includes both Accounting and Auditing, making it comparatively more analytical. In this guide, Prateek Sarwan explains the syllabus, preparation strategy, priority areas, and essential study techniques to help aspirants score confidently in this section.

UPSC EPFO Accounting and Auditing Weightage

Before beginning preparation, aspirants must understand the difference in weightage between the EO/AO and APFC exams, especially in Accounting and Auditing. The following table gives a clear picture of what to expect in the exam.

ExamSubject FocusAccountingAuditingDifficulty LevelExpected No. of Questions
EO/AOGeneral Accounting PrinciplesIncludedNot IncludedEasy to Moderate10–15
APFCAccounting + AuditingIncludedIncludedModerate to Difficult10–18
Link
Labour Laws E-Book for UPSC EPFO 2025
Read Indian Art and Culture Notes
Read Indian Economy and Globalisation Notes
Read Indian Freedom Struggle Notes
UPSC EPFO APFC Mock Test
Attempt UPSC EPFO EO/AO Mock Test Series

Accounting Syllabus for EO/AO & APFC

The Accounting syllabus remains the same for both EO/AO and APFC, although the complexity of questions differs. Candidates should target conceptual clarity and practice numerical questions from past papers. Based on the pattern and PYQ analysis, these are the core areas to prepare.

1. Basics of Accounting

This section forms the foundation of the subject. It includes the introduction to accounting, its objectives, branches, the distinction between capital and revenue, and the overall accounting process.

  • Introduction, objectives, and branches of accounting
  • Capital and revenue items
  • Flow of the accounting cycle

Also Read: Basic Accounting Principles

2. Accounting Principles and Conventions

Aspirants must understand the principles that guide accounting practices. Concepts such as accrual, going concern, consistency, prudence, and historical cost are frequently asked. References to these concepts also appear in standards and financial statements.

Also Read: Accounting Standards

3. Recording of Transactions

A strong command over transaction recording helps in solving many questions. Understanding business documents, the accounting equation, subsidiary books, and debit–credit rules is essential.

Also Read: Recording of Transactions

4. Trial Balance & Bills of Exchange

Trial balance involves error detection, adjustments, and preparation. Bills of Exchange questions test your clarity of concepts and entries.

Also Read: Bills of Exchange

5. Accounting Standards (AS & IND AS)

Candidates must be aware of the purpose, scope, and application of standards such as AS 2, AS 9, and AS 10. This forms a scoring area.

6. Share Capital, Inventory & Investments

Important areas include share capital accounting, inventory valuation (FIFO, LIFO, Weighted Average), and treatment of investments.

7. Final Accounts & Financial Statements

A very important section for EO/AO as well as APFC. Candidates should be able to interpret and prepare Trading, P&L Accounts, and Balance Sheets.

Also study: Preparation of Final Accounts

Ratio Analysis is also tested regularly.
Learn in detail: Ratio Analysis

UPSC EPFO EO/AO & APFC Preparation Priority Order

A structured preparation order helps aspirants stay aligned with exam requirements. Below is a priority-wise subject list for the UPSC EPFO Exam.

PrioritySubjectWhy Important?Weightage
1AccountingCore subject for both posts; highly scoringHigh
2Labour Laws & Social SecurityDirectly related to EPFO job profileHigh
3General Mental Ability & AptitudeModerate level, scoring with practiceModerate
4General EnglishGrammar & comprehension-basedModerate
5General Science & Current AffairsHelps cover static + dynamic questionsModerate
6Industrial Relations & Labour WelfareEssential for APFCLow–Moderate
7Auditing (Only for APFC)Analytical, conceptualLow

APFC Auditing Syllabus

Auditing is a major differentiator for APFC candidates. It checks the understanding of audit principles, the auditor’s role, and the structure of the auditing process. Below is the coverage of this section.

Topic
Fundamentals of Auditing
Auditing vs Investigation
Audit Strategy & Planning
Risk Assessment & Internal Control
Audit Procedures
Audit of Different Types of Entities
Types of Auditors
Standards on Auditing
Company Audit

Sources for Preparation for EO/AO & APFC

The right study material ensures systematic preparation. Use only reliable sources to build clarity and confidence.

SubjectRecommended Sources
Accounting & AuditingT.S. Grewal, M.L. Sharma, ICAI basics
Labour Laws & Social SecurityP.L. Malik, Labour Ministry Website
Industrial RelationsSC Srivastava, EPFO publications
General AptitudeRS Aggarwal, PYQs
EnglishSP Bakshi, Newspaper editorials
Current Affairs & ScienceMonthly CA PDFs, NCERT Science

Additional Tips for Effective Preparation

Aspirants should follow simple but consistent habits to maximize their performance in this section.

  • Analyze Previous Year Papers to identify question patterns
  • Make short notes for formulas and important laws
  • Attempt full-length mock tests for time management
  • Revise concepts regularly to avoid last-minute confusion
TopicLink
Important Principles of AccountingClick Here
Industrial Relations Code (IRC) BillClick Here
Model of Labour ReformsClick Here
Timeline of Indian Freedom Struggle from 1908 to 1918Click Here
Timeline of Indian Freedom Struggle from 1919 to 1929Click Here
Timeline of Indian Freedom Struggle from 1929 to 1939Click Here
Timeline of Indian Freedom Struggle from 1940 to 1947Click Here
Socio-Religious Reforms in 19th-Century IndiaClick Here
Indian Dance FormsClick Here
Indian Music FormsClick Here
Temple Architecture in IndiaClick Here
Indian PaintingsClick Here
Indian languages & LiteratureClick Here
Concept of DevelopmentClick Here
Human Development & HDIClick Here
UPSC EPFO PostingClick Here
UPI Limit HikeClick Here
Triggers & barriers for globalisationClick Here
Impact of globalisationClick Here
Centre-State RelationsClick Here
Constitutional and Non-Constitutional Bodies in IndiaClick Here
Local Governments in IndiaClick Here
Regional Economic CooperationClick Here
International Economic InstitutionsClick Here
Balance of PaymentsClick Here
Payment of Wages Act, 1936Click Here
Minimum Wages Act, 1948Click Here
Trade Union Act, 1926Click Here
Factories Act, 1948Click Here
Industrial Employment (Standing Orders) Act, 1946Click Here
Industrial Disputes Act, 1947Click Here
The Child and Adolescent Labour (Prohibition and Regulation) Act, 1986Click Here
Inter-state migrant Workmen Act, 1979Click Here
Payment of Bonus Act, 1965Click Here
Employees’ State Insurance Act, 1948Click Here
Employees’ Provident Fund & Misc Provisions Act, 1952Click Here
Unorganised Workers Social Security Act, 2008Click Here
Maternity Benefit Act, 1961Click Here
National Payments Corporation of IndiaClick Here
Payment of Gratuity Act, 1972Click Here
Nature Objective and Scope of AuditingClick Here
Audit Strategy Planning ProgrammeClick Here
Risk Assessment and Internal ControlClick Here
Vouching and Verification in AuditingClick Here
Company AuditClick Here
Auditor’s AuditClick Here
Audit of different types of entitiesClick Here
Classification of auditClick Here
Recording of TransactionsClick Here
Bills of ExchangeClick Here
Accounting StandardsClick Here
Preparation of the Final AccountsClick Here
Ratio AnalysisClick Here

FAQs

Q1) Is the accounting syllabus the same for EO/AO and APFC?
A1: Yes. The syllabus is the same, but APFC questions are more analytical, while EO/AO questions remain simpler.

Q2) Which accounting topics should I study first?
A2: Begin with Journal Entries, Ledger, Trial Balance, and Final Accounts. Then move to Company Accounts and Cash Flow Statements.

Q3) Do EO/AO candidates need to study Auditing?
A3: No. Auditing is only included in the APFC syllabus.

Q4) How should I prioritize my subjects for EPFO?
A4: Follow this order: Accounting → Labour Laws → Industrial Relations → Aptitude → English → Current Affairs → Auditing (for APFC).

Q5) What is the best way to understand Labour Laws?
A5: Use P.L. Malik for theory and refer to official Labour Ministry updates for latest amendments.