How to prepare Accounts & Auditing for UPSC EPFO & APFC

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The Accounts and Auditing section of the UPSC EPFO EO/AO and APFC exams is crucial for your selection. The EO/AO exam focuses on General Accounting Principles. The APFC exam includes both Accounting and Auditing, and it is more challenging. In this guide, Prateek Sir will discuss the syllabus, key areas to focus on, preparation steps, and important tips to help you do well in this section.

UPSC EPFO EO/AO & APFC Exam Pattern

Before starting preparation, it’s important to understand the exam pattern and weightage for the Accounts & Auditing section.

Exam	Subject Focus	Accounting	Auditing	Difficulty Level	Expected No. of Questions
EO/AO	General Accounting Principles	Included	Not Included	Easy to Moderate	10–15
APFC	Accounting + Auditing	Included	Included	Moderate to Difficult	10–18

Accounting Syllabus for EO/AO & APFC

Prateek Sir advises candidates to prepare the Accounting subject thoroughly for both EO/AO and APFC, as the syllabus remains the same but the difficulty level varies. Based on PYQ analysis, the important topics are:

Basics of Accounting
- Introduction, objectives, and branches of accounting.
- Capital & revenue: income and expenditure.
- Accounting process and its flow.
Accounting Principles & Conventions
- Concepts like accrual, going concern, consistency, prudence, etc.
Recording of Transactions
- Business transactions, source documents, accounting equation.
- Subsidiary books, rules of debit & credit (modern & traditional).
- Trial balance – preparation, adjustments, error detection.
- Bills of exchange – basic concepts.
Accounting Standards
- Overview of accounting standards.
- AS 2: Inventory
- AS 9: Revenue Recognition
- AS 10: Property, Plant & Equipment (including depreciation)
- IND AS applicability basics.
Share Capital & Investments
- Accounting for share capital transactions.
- Inventory valuation methods – FIFO, LIFO, Weighted Average.
Final Accounts & Financial Statements
- Trading, P&L, Balance Sheet preparation.
- Ratio Analysis – exam-oriented level.
- Cash Flow Statement basics.

Download UPSC EPFO EO/AO & APFC PYQ Accounts & Auditing Ebook PDF

EO/AO & APFC Preparation Priority Order

Following a specific preparation order for EO/AO and APFC is important. It helps candidates study systematically and stay organized, to fully cover the syllabus before time.

Priority	Subject	Why Important?	Weightage in Exam
1	Accounting	Core subject for both EO/AO & APFC; scoring if prepared well.	High
2	Labour Laws & Social Security	Directly related to EPFO work profile; many factual & conceptual questions.	High
3	General Mental Ability & Quantitative Aptitude	Helps secure marks quickly with practice; often moderate difficulty.	Moderate
4	General English	Grammar, comprehension & vocabulary-based; scoring with regular practice.	Moderate
5	General Science & Current Affairs	Useful for factual recall; helps in covering static + dynamic parts.	Moderate
6	Industrial Relations & Labour Welfare	More important for APFC; conceptual + factual.	Low to Moderate
7	Auditing (Only APFC)	Added portion for APFC; fewer but tricky questions.	Low

APFC Auditing Syllabus

Auditing is an important part of the APFC syllabus. It tests a candidate’s understanding of audit principles, processes, and standards. A solid understanding of these topics helps in scoring well in this section.

Topic	Details
Fundamentals of Auditing	Meaning, objectives, and importance of auditing in organizations.
Auditing vs Investigation	Key differences, purposes, and applications in various scenarios.
Audit Planning & Strategy	Steps in audit programs, building strategies, and preparing audit plans.
Risk & Control	Risk assessment techniques, understanding internal control systems, and their importance.
Audit Procedures	Vouching, verification, and the complete company audit process.
Role & Types of Auditor	Functions and types like external, internal, and statutory auditors.
Standards on Auditing (SA)	Overview of auditing standards with focus on SA 200 (Overall Objectives), SA 240 (Fraud), and other relevant SAs.

Download UPSC EPFO EO/AO & APFC PYQs for General Studies PDF

Sources for Preparation for EO/AO & APFC

Choosing the right study material is essential for effective preparation. Since EO/AO and APFC have similar syllabus in many subjects, practicing tests can help cover the syllabus comprehensively. Hence, candidates must focus on trusted material only for preparation. Prateek sir has recommended few sources here for the subjects:

Subject	Recommended Sources
Accounting & Auditing	Books: T.S. Grewal’s Introduction to Accountancy, M. L. Sharma’s Auditing Principles and Practices Additional: ICAI Study Material (for basics), Notes from commerce graduates
Labour Laws & Social Security	Labour Laws by P.L. Malik Ministry of Labour & Employment official website for latest updates
Industrial Relations & Labour Welfare	Industrial Relations and Labour Laws by S.C. Srivastava EPFO official publications
General Mental Ability & Quantitative Aptitude	Quantitative Aptitude by R.S. Aggarwal Previous Year Papers for speed practice
General English	Objective General English by S.P. Bakshi Daily reading of The Hindu or Indian Express editorial section
Current Affairs & General Science	Monthly Current Affairs PDFs (Vision IAS, GK Today) NCERT Science (Class 6–10) for basics

Additional Tips for Using These Sources Effectively

Prioritize PYQ Analysis – Understand question patterns and focus on high-weightage areas.
Make Short Notes – Especially for accounting formulas, laws, and definitions.
Practice Mock Tests – To improve time management and accuracy.
Revise Regularly – Keep revisiting core subjects to retain concepts.

FAQs Answered by Prateek Sir

Q1) Is the accounting syllabus the same for EO/AO and APFC?

Ans: Yes, the accounting syllabus is the same for both EO/AO and APFC. However, the level of difficulty varies EO/AO questions are generally easier, while APFC questions can be more analytical.

Q2) Which topics should I focus on first in Accounting?

Ans: Based on PYQ analysis, start with basics like Journal Entries, Ledger, Trial Balance, and Final Accounts. Then move to topics like Partnership Accounts, Company Accounts, and Cash Flow Statements, as these are frequently asked.

Q3) Do I need to study Auditing for EO/AO as well?

Ans: No, Auditing is specifically a part of the APFC syllabus. EO/AO candidates can skip it and focus on other high-weightage areas.

Q4) How should I prioritize subjects for preparation?

Ans: Follow a systematic order:
Accounting (for both EO/AO & APFC)
Labour Laws & Social Security
Industrial Relations & Labour Welfare
General Mental Ability & Quant
English & Current Affairs

Q5) What is the best way to prepare for Labour Laws?

Ans: Use P.L. Malik’s Labour Laws book for conceptual clarity and regularly check the Ministry of Labour & Employment website for the latest amendments and notifications.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.