Home » ICAN Syllabus » The Professsional level of the ICAN (Institute of Chartered Accountants of Nigeria) is the third and final level in the ICAN-ACA professional examination. The professional level examinations are taken by individuals who aspire to become chartered accountants and have successfully completed the foundation and skills level.
The Professional level syllabus aims to equip accounting professionals with the knowledge required to make professional judgments and evaluations based on more complex business situations. It links the diverse competencies acquired at the Foundation and Skills levels, and there are five courses at this level. Graduates of Accounting are not exempted from taking professional-level examinations.
The chartered accountancy qualification – the ACA, of the Institute of Chartered Accountants of Nigeria (ICAN), with its integrated components, is one of the most advanced professional accountancy qualifications globally. The requirements for ICAN – ACA qualification are set out in this syllabus in the form of learning outcomes and competencies.
The Professional level consists of five subjects including Corporate Reporting, Advanced Audit and Assurance, Strategic Financial Management, Advanced Taxation, and Case Study. This professional level takes candidates to the point where they have to make professional judgments and evaluations based on more complex business situations by linking competencies acquired at the Foundation and Skills levels.
Case Study, at this level, develops students’ ability to discuss, analyse and evaluate different business scenarios with a view to proffering solutions which are articulated in the form of business reports.
Welcome to the first subject in the last stage of your journey towards becoming a Chartered Accountant. The Corporate Reporting course is an extension of Financial Reporting covered in the Skills level syllabus.
This course syllabus aims to provide you with a deepened understanding of the principles of financial reporting and its application to more complex situations. It reflects the latest developments, regulations, and standards in Corporate reporting.
The ICAN professional level under which Corporate Reporting falls is focused on helping professional accountants make better and more informed judgments. Studying for this examination using the ICAN syllabus ensures you cover every topic and helps you achieve excellent result. It also guarantees your success in the forthcoming ICAN-ACA professional examination.
This syllabus extends candidates’ coverage of generally accepted accounting principles (GAAP), deepens their understanding of financial reporting and their ability to apply principles and practices to more complex situations.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Professional Level | |||
| Level | Professional | ||
| Course name | C1-Corporate Reporting | ||
| Abbreviation | CR | ||
| A.Ethical issues in and regulatory framework of corporate reporting. | |||
| Topic | Breakdown | Marking guide | |
| 1 | Ethical issues in corporate reporting | (a) Discuss professional accountants’ code of ethics as it relates to corporate reporting. (b) Discuss and evaluate the ethical considerations that may arise in corporate reporting, including ethical dilemmas. (c) Assess, recommend and justify actions to be taken where ethical issues arise in given corporate reporting scenarios. | 10% |
| 2 | Regulatory framework of corporate reporting | (a) Discuss the need for convergence in international regulatory frameworks of financial reporting standards. (b) Evaluate the desirability, feasibility and implications of global financial reporting convergence using International Financial Reporting Standards (IFRS). (c) Differentiate between rules-based and principles-based accounting standards; (d) Assess the applicable regulations as sources of Nigerian GAAP; (e) Discuss the merits and demerits of international convergence of financial reporting standards; Evaluate, assess and apply ethical issues and regulatory frameworks to corporate reporting Evaluate and apply accounting standards to preparing reports on corporate performance and position Prepare and present financial statements of complex group Critically examine current issues in and beyond financial reporting Analyse, interpret and evaluate financial and non-financial information and disclosures (f) Evaluate disclosures of corporate governance and chairman’s report as they relate to a company’s annual report; and (g) Discuss the roles of Financial Reporting Council of Nigeria (FRCN) in financial reporting regulations and enforcement including IFRS compliance. | |
| B. Reporting of entity’s performance to stakeholders | 20% | ||
| 1 | Performance reporting | (a) Evaluate how different bases of measurement and recognition of assets and liabilities affect reported financial performance. (b) Apply accounting standards relating to performance reporting such as IFRS 15; IFRS 8; IFRS 5; IAS 33; and IAS 34 to the preparation of financial statements. (c) Formulate and evaluate entity’s accounting policies (including group entities) in accordance with the provisions of IAS 8. (d) Prepare entity’s financial statements in accordance with legal requirements and applicable financial reporting standards. | |
| 2 | Non- financial assets | (a) Assess the effects of different recognition and measurement methods and timing of recognition of non-financial assets on reported financial position. (b) Discuss and appraise accounting treatments of non-current assets, such as: Property, Plant and Equipment – IAS 16; Intangible Assets – IAS 38; Investment Properties – IAS 40; Leases – IFRS 16; Non-current Assets Held for Sale – IFRS 5; Inventories -IAS 2; Agriculture – IAS 41; Accounting for Government Grants and Disclosure of Government – IAS 20; and Borrowing Costs – IAS 23. | |
| 3 | Non-financial liabilities | (a) Evaluate how different methods and timing of recognition and measurement of non-financial liabilities affect reported financial position. (b) Appraise accounting treatments of non-financial liabilities, such as: Employees’ Benefits – IAS 19; Share-based Payment –IFRS 2; Income Tax – IAS 12; Provisions, Contingent Liabilities and Contingent Assets – IAS 37; and Leases – IFRS 16. (c) Appraise the effect of related parties’ transactions and disclosures on reported performance in line with relevant accounting standards. | |
| 4 | Financial assets and liabilities | (a) Determine and assess how different bases for recognition, measurement and classification of financial assets and financial liabilities impact on reported performance and position. (b) Appraise the accounting treatment of financial instruments (IFRS 7 and IFRS 9); borrowing costs (IAS 23); and government grant (IAS 20) including impairment and hedge accounting under IFRS 9 for financial assets and liabilities. | |
| 5 | Segment reporting | (a) Determine and assess the nature and extent of reportable segments (IFRS 8). (b) Discuss the nature of segment information to be disclosed and its overall impact on reported performance of the reporting entity. | |
| 6 | Accounting treatments of insolvency and business recovery | (a) Discuss insolvency and circumstances under which a company may be insolvent. (b) Discuss the consequences of receivership and liquidation of corporate entities. (c) Advise on implications of insolvency for corporate governance and going concern threats. (d) Differentiate between: i. A receiver and receiver manager; ii. Secured and unsecured creditors; iii. Receiver and liquidator; iv. Statement of financial position and statement of affairs; v. Bankruptcy and liquidation; and vi. Floating charge and fixed charge. | |
| C. Group financial statements | 30% | ||
| 1 | Introduction to consolidating complex group structure | (a) Identify and discuss complex group relationships including the criteria used to identify a subsidiary and an associate. (b) Identify and discuss the circumstances in which a group is required to prepare group financial statements and when an exemption can be granted. (c) Identify and discuss the criteria used to determine how different types of investment are recognised and measured. (d) Discuss and apply the treatment given to a subsidiary acquired exclusively with a view to its subsequent disposal. (e) Discuss why directors may not wish to consolidate a subsidiary and when this will be permitted. (f) Outline and apply the key definitions and accounting methods relating to interests in associates and joint arrangements. | |
| 2 | Preparation of group financial statements of a complex group | (a) Apply the provisions of relevant standards in determining the cost of acquisition in business combination under different scenarios. (b) Determine and apply appropriate procedures to be used in preparing group financial statements. (c) Determine, apply and disclose from financial information or other data in a given scenario, the amounts to be included in group financial statements in respect of acquisitions achieved one time or in stages involving subsidiaries, associates and joint ventures. (d) Calculate, determine and disclose, from financial information or other data in a given scenario, the amounts to be included in group financial statements in respect of full or partial disposals involving subsidiaries, associates and joint ventures. (e) Discuss and appraise how foreign currency transactions of a single entity or group entities are measured and accounted for in the financial statements. (f) Discuss and appraise how the financial statements of overseas entities are translated and consolidated. (g) Calculate, determine and disclose, from financial information or other data in a given scenario, the amounts to be included in group financial statements relating to part of a group which activities have been discontinued, or have been acquired or disposed of in the period. (h) Prepare group financial statements where necessary in (c) to (g) above | |
| D. Current developments in and beyond financial reporting | 20% | ||
| 1 | Global convergence of financial reporting and Nigerian Generally Accepted Accounting Principles (NGAAP) | (a) Determine, discuss and apply the accounting treatment of issues arising from the first-time transition to international accounting standards, such as IFRS from NGAAP. (b) Discuss accounting issues relating to applicable Nigerian accounting standards after IFRS adoption. | |
| 2 | New international accounting standards and exposure drafts | (a) Discuss and apply newly issued international financial reporting standards that are effective 6 months from examination date. (b) Discuss and apply newly issued exposure drafts. (c) Discuss any current issue in relation to the conceptual framework for financial reporting. | |
| 3 | Social, environmental and ethical reporting | (a) Discuss the need for social, environmental and ethical reporting and why companies may engage in these types of reporting. (b) Appraise the impact of social, environmental and ethical factors on corporate performance measurement. | |
| 4 | Sustainability and integrated reporting | (a) Discuss the progress from social and environmental accounting to sustainability reporting. (b) Discuss the principles and content elements of Global Reporting Initiative (GRI) and United States (US) Sustainability Accounting Standards Board (SASB) frameworks for sustainability reporting. (c) Evaluate the impact of sustainability reporting on corporate performance measures. (d) Discuss the principles and contents of International Integrated Reporting Council (IIRC) Integrated Reporting (IR) framework. (e) Discuss the need for and advantages of integrated reporting. (f) Discuss the progress towards global adoption of integrated reporting. | |
| E. Analysis of financial and other reports to appraise entity’s financial performance and position | 20% | ||
| 1 | Suitability of accounting policies and reported numbers | (a) Assess the suitability of an entity’s accounting policies to meet their reporting requirements. (b) Assess accounting treatments adopted in financial statements and assess their validity, suitability and acceptability. (c) Appraise the nature and validity of information disclosed in annual reports, including integrated reporting and other voluntary disclosures. (d) Appraise the nature and validity of items included in published financial statements | |
| 2 | Analyses, interpretation and appraisal of financial and other reports | (a) Evaluate relevant indicators of financial and non-financial performance. (b) Analyse and evaluate the performance, including stock market performance, liquidity, efficiency and solvency of an entity using different techniques of analysis, such as: horizontal; vertical; ratios; trends; and common size. (c) Adjust reported earnings of an entity to make it comparable over time, with similar entities and industry average. (d) Assess the potential complex economic environment in which an entity operates, and its strategies based on financial and operational information contained within the annual report (such as Chairman and CEO/CFO business and performance reports, management commentary, corporate governance disclosures, financial summaries and highlights). (e) Make inferences from the analyses of information taking into account the limitations of the information, the analytical methods used and the business environment in which the entity operates. (f). Discuss and evaluate earnings management and creative accounting and assess their impact on the usefulness of ratios. | |
| 3 | Limitations of financial analyses | (a) Appraise the limitations of financial analyses. (b) Appraise the significance of inconsistencies and omissions in reported information in evaluating performance. | |
| Applicable Accounting Standards | |||
| Preface to IFRS The Conceptual Framework for Financial Reporting IAS 1 – Presentation of Financial Statements IAS 2 – Inventories IAS 7 – Statement of Cash Flows IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors IAS 10 – Events after the Reporting Period IAS 12 – Income Taxes IAS 16 – Property, Plant and Equipment IAS 19 – Employee Benefits IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance IAS 21 – The Effects of Changes in Foreign Exchange Rates IAS 23 – Borrowing Costs IAS 24 – Related Party Disclosures IAS 26 – Accounting and Reporting by Retirement Benefit Plans IAS 27 – Separate Financial Statements IAS 28 – Investments in Associates and Joint ventures IAS 29 – Financial Reporting in Hyperinflationary Economies IAS 33 – Earnings per Share IAS 34 – Interim Financial Reporting IAS 36 – Impairment of Assets IAS 37 – Provisions, Contingent Liabilities and Contingent Assets IAS 38 – Intangible Assets IAS 40 – Investment Property IAS 41 – Agriculture IFRS 1 – First-Time Adoption of IFRS IFRS 2 – Share-based Payment IFRS 3 – Business Combinations IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations IFRS 6 – Exploration for and Evaluation of Mineral Resources IFRS 7 – Financial Instruments: Disclosures IFRS 8 – Operating Segments IFRS 9 – Financial Instruments IFRS 10 – Consolidated Financial Statements IFRS 11 – Joint Arrangements IFRS 12 – Disclosure of Interest in other entities IFRS 13 – Fair Value Measurement IFRS 14 – Regulatory Deferral Accounts IFRS 15 – Revenue from Contract with Customers IFRS 16 – Leases IFRS 17 – Insurance IFRS for SMEs NGAAP-SAS 32- Statement for Not-for-profit New standards may be examined six months after date of issue. Applicable laws may be examined six months after date of amendment or enactment. | |||
Advanced Audit and Assurance(AAA) is an extension of Audit and Assurance studied in the skills level. It provides a better understanding of the critical aspects of managing audit and assurance engagements which is essential for you as an aspiring chartered accountant.
The AAA examinations are carefully curated using the updated ICAN syllabus, so studying this syllabus will ensure that you are adequately prepared for the examinations.
Studying for this examination using the updated ICAN AAA syllabus prepares you for the ICAN-ACA professional examination, and helps enhance your professional knowledge and skills in the business world. This will help you excel as an expert auditor in your field.
The candidate is expected to understand the critical aspects of managing audit and assurance engagements: acceptance; planning; concluding; and reporting.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Professional Level | |||
| Level | Professional | ||
| Course name | C2 -Advanced Audit and Assurance | ||
| Abbreviation | AAA | ||
| A. Laws and regulations on audit and assurance engagements | |||
| Topic | Breakdown | Marking guide | |
| 1 | Laws, regulations and ethical issues | 1. Advise on technical, professional and ethical issues that may arise during assurance engagements in the public and private sectors including evaluation and communication with any party to the engagement. 2. Identify and make judgements on when it may be appropriate to refer a matter to a senior colleague or for third party advice or consultation. 3. Identify and explain the nature and purposes of laws, regulations, standards and codes in the context of assurance engagements. 4. Evaluate, explain and communicate the process and issues involved in standards setting process at national and international levels. 5. Evaluate and communicate the interactions between national laws and regulations and the requirements of an assurance engagement. 6. Evaluate and communicate the differences between various jurisdictions and how they deal with audit issues including national and international Apply laws and regulatory frameworks to audit and assurance Consider professional and ethical issues in audit and assurance Plan audit and assurance Evaluate risk and institute quality control measures Advise on selected assurance services Prepare reporting to appropriate clients approaches such as the US Sarbanes-Oxley and related requirements for audit. 7. Evaluate and explain how audits may fail to meet users’ expectations. 8. Evaluate and explain the extent of legal liabilities including criminal and civil law liabilities and professional negligence and how they can be mitigated. | 20% |
| B. Accepting professional engagements and managing assignments | 15% | ||
| 1 | Accepting engagements | (a) Analyse and evaluate the issues that may arise during the process of obtaining audit work. (b) Identify and explain the legal, professional and ethical issues that may arise during the acceptance of assurance or audit assignments. (c) Analyse and evaluate the potential issues that determine the nature, scope and extent of an assurance or audit engagement. (d) Discuss how engagement terms can be agreed and recorded by an auditor including those agreed with a client and those imposed by laws or regulations. | |
| 2 | Practice management | (a) Evaluate and apply appropriate procedures and policies for management of an assurance or audit engagement. (b) Evaluate and apply appropriate quality control measures that may be used by a firm during the course of an assurance or audit engagement. (c) Identify and evaluate the extent to which assurance and audit functions within an entity can be used or relied upon. (d) Evaluate and apply appropriate monitoring and review procedures to effectively manage an audit or assurance engagement. (e) Identify and explain the purposes of external monitoring of audit and assurance assignments and how this might ensure engagement or firm’s quality. (f) Identify and evaluate the considerations by an auditor of risk issues identified prior to accepting an engagement. | |
| C. Planning and undertaking audit work | 40% | ||
| 1 | Overall audit strategy | (a) Analyse, evaluate and explain the key areas of a business that are important to understand in developing an effective strategy or plan based on a business scenario. (ISA 300 – Planning an audit of financial statements) (b) Analyse and evaluate the relevant techniques needed for an effective understanding of the audit work. (c) Analyse and evaluate the situations when third party expertise may be required (ISA 620 – Using the Work of an Auditor’s Expert) (d) Evaluate and advise on elements of audit risks, including inherent and control (risk of material misstatement), sampling and nonsampling (detection risk) and their relationships with audit planning procedures (ISA 315 – Identifying and Assessing the Risk of Material Misstatement through Understanding the Entity and its Environment). (e) Identify and evaluate the components of risk for any assurance engagement. (f) Evaluate and explain how business process effectiveness may affect an audit assignment. (g) Identify and evaluate the risks arising from accounting manipulation, error, fraud or other irregularities in a business scenario. (h) Identify and evaluate the risks arising from business and financial issues in a business scenario. (i) Evaluate and apply judgements and measures of materiality in carrying out an audit or assurance engagement (ISA 320 – Materiality in Planning and Performing an Audit). (j) Evaluate and apply analytical procedures that may be used to plan an audit or assurance engagement. (k) Analyse and evaluate how risk and materiality judgements affect the planning of an assurance or audit engagement, including the nature, timing and extent of work. (l) Develop an audit plan, justifying judgements made on an audit or assurance engagement based on a business scenario, including considerations relating to: Materiality decisions; Internal control assessments including information technology (IT) ; Reliance on internal audit, specialists and the work of other auditors; Use of client’s generated data, information and reports; Tests of control, substantive and analytical procedures; and Visits to locations, branches and departments. (m) Describe the appropriate procedures for assurance engagements in respect of corporate social responsibility and sustainability reports. (n) Describe the differences between assurance engagements and audit engagements for profit and not-for-profit entities, including those in the public sector. (o) Explain local and international frameworks for auditing and assurance work in private and public sectors. | |
| 2 | Assessment of risks, internal controls, internal financial controls | (a) Identify and assess reporting and compliance risks in the context of an assurance or audit engagement in the public or private sector based on a given business scenario. (b) Give an advice based on the assessment above. (c) Analyse the role of information technology control framework in internal control. | |
| 3 | Evaluation of accounting treatments | Evaluate and draw conclusions on the appropriateness of stated accounting treatments in the context of a given scenario for public or private sector based on national and international standards on auditing and international financial reporting standards (IFRS). IAS1 – Presentation of Financial Statements IAS 2 – Inventories IAS 7 – Statement of Cash Flows IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors IAS 10 -Events after the Reporting Period IAS 12 -Income Taxes IAS 16 -Property, Plant and Equipment IAS 19 -Employee Benefits IAS 20-Accounting for Government Grants and Disclosure of Government Assistance IAS 21 -The Effects of Changes in Foreign Exchange Rates IAS 23 -Borrowing Costs IAS 24 -Related Party Disclosures IAS 26 -Accounting and Reporting by Retirement Benefit Plans IAS 27 -Separate Financial Statements IAS 28 -Investments in Associates and Joint ventures IAS 29 -Financial Reporting in Hyperinflationary Economies IAS 32 -Financial Instruments: Presentation IAS 33 -Earnings per Share IAS 34 -Interim Financial Reporting IAS 36 -Impairment of Assets IAS 37 -Provisions, Contingent Liabilities and Contingent Assets IAS 38 -Intangible Assets IAS 40 -Investment Property IAS 41 -Agriculture IFRS 1 -First-Time Adoption of IFRS IFRS 2 -Share-based Payment IFRS 3 -Business Combinations IFRS 5 -Non-current Assets Held for Sale and Discontinued Operations IFRS 6 -Exploration for and Evaluation of Mineral Resources IFRS 7 -Financial Instruments: Disclosures IFRS 8 -Operating Segments IFRS 9 -Financial Instruments IFRS 10 -Consolidated Financial Statements IFRS 11 -Joint Arrangements IFRS 12 -Disclosure of Interest in other entities IFRS 13 -Fair Value Measurement IFRS 14 -Regulatory Deferral Accounts IFRS 15 -Revenue from Contract with customers IFRS 16 -Leases IFRS 17 -Insurance | |
| 4 | Specialised audits and investigations | (a) Understanding special features of certain types of audit and investigation (i.) Forensic investigation and reporting Describe the major applications of forensic auditing e.g. fraud, negligence, insurance claims and analyse the role of a forensic auditor as an expert witness. Distinguish among forensic accounting, forensic investigation and forensic audit. Identify the various government agencies associated with forensic auditing. Apply the fundamental ethical principles to forensic auditor’s engagement. Describe the procedures to be adopted in forensic audit. Select investigative procedures and evaluate the evidence appropriate to determine the amount of loss in specific circumstances. (ii) Banks, insurance companies, primary mortgage institutions, other financial institutions, farmers, professionals, hospitals, hotels and pension fund administrators (PFAs) Identify the relevant legal frameworks that affect these institutions. Evaluate the critical audit areas in respect of each of these institutions. Develop audit plans and procedures for each of the identified institutions. Recognise various provisions of the Central Bank of Nigeria (CBN) Act that affect each of the financial institutions. Advise on the application of control measures on the activities of each of the institutions. (iii) Not-for-profit organisations – charities, non-governmental organisations (NGOs). Identify and explain various types and objectives of not-for-profit organisations. Explain how the audit of a not-for-profit organisation differs from the audit of a profit oriented organisation. Assess the audit risks associated with not-for-profit organisations. Develop plans and procedures for the audit of not-for-profit organisations. Suggest various control measures that can be applied by a not-forprofit organisation in its operations. Determine the form and contents of audit report for a not-for-profit organisation. (b) Joint audits (i) Explain the term joint audit. (ii) Develop a plan for a joint audit. (iii) Identify circumstances under which a joint audit occurs. (iv) Describe the factors to consider in sharing audit work in joint audits. (v) Advise management on the merits and demerits of joint audits. (vi) Advise on matters to consider by firms engaging in joint audits. (c) Investigations (i) Identify and discuss various circumstances under which an investigation may be conducted. (ii) Differentiate between investigation and statutory audit. (iii) Analyse and evaluate various stages involved in conducting investigations. (iv) Write an appropriate report on each investigation. (v) Discuss the nature and methods of investigation relating to liquidation and bankruptcy. (d) Due diligence reviews for mergers, acquisitions and business combinations (i) Differentiate between due diligence and external audit. (ii) Describe the procedures involved in carrying out due diligence. (iii) Write a report on the outcome of a due diligence assignment. (e) Discuss the duties and responsibilities of a reporting accountant in raising capital. | |
| 5 | Application of information technology in auditing | (a) Explain the impact of IT in an auditing environment. (b) Analyse the benefits of IT control frameworks in internal controls (example COBIT Framework). | |
| D. Drawing conclusions and reporting | 25% | ||
| 1 | Drawing conclusions | (a) Analyse, evaluate and propose how issues identified during the course of an assignment may be raised and dealt with in communication with management, directors and those charged with governance, including actions taken when issues cannot be agreed. (b) Identify, explain and apply procedures that may be used and considerations relating to the identification of subsequent events that may require adjustments or disclosures. (c) Identify, explain and apply procedures that may be used and considerations relating to the identification of risk issues that require disclosures. (d) Evaluate and apply quantitative and qualitative judgements based on the results of tests and evidence obtained. | |
| 2 | Audit report | (a) Discuss the concept of key audit matters (KAM) and justify the basis for reporting same. (b) Explain the responsibilities of an auditor with respect to KAM. (c) Explain the audit documentation requirements of ISA 701 with respect to KAM. (d) Identify the additional national requirements beyond those of ISA 701 for entities that should be within the scope of ISA 701 per the requirements of the Financial Reporting Council of Nigeria. (e) Appraise the form and contents of the audit report under ISA 700 (revised), given a specific situation. (f) Explain the responsibilities of auditors in respect of other information in line with the requirements of ISA 710. (g) Explain circumstances under which emphasis of matters or other matters paragraph may be appropriate to an audit report. (h) Draft extracts of suitable audit, assurance and management reports based on a given scenario in accordance with Nigerian laws and international standards on auditing. (i) Evaluate and apply suitable judgments on when it may be appropriate to refer to a specialist in giving an opinion or preparing a report. (j) Evaluate and apply suitable judgments on when it may be appropriate to withhold an opinion, withdraw an opinion or take other such appropriate actions on an audit or assurance engagement. (k) Identify and explain the issues that may be relevant and the nature of report that may be given relating to risk management, internal controls and governance. | |
| E. Applicable Standards | |||
| 1 | International standards on auditing (ISA) | 200 – Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing 210 – Agreeing the Terms of Audit Engagements 220 – Quality Control for an Audit of Financial Statements 230 – Audit Documentation 240 – The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements 250 – A Consideration of Laws and Regulations in an Audit of Financial Statements 260 – Communication with Those Charged with Governance 265 – Communicating Deficiencies in Internal Control to Those Charged with Governance and Management 300 – Planning an Audit of Financial Statements 315 – Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment 320 – Materiality in Planning and Performing an Audit 330 – The Auditor’s Procedures in Response to Assessed Risks Contents 402 – Audit Considerations Relating to an Entity Using a Service Organisation 450 – Evaluations of Misstatements Identified during the Audit 500 – Audit Evidence 501 – Audit Evidence – Specific Considerations for Selected Items 505 – External Confirmations. 510 – Initial Audit Engagements – Opening Balances 520 – Analytical Procedures 530 – Audit Sampling 540- Auditing Accounting Estimates, Including Fair Value Accounting Estimates and Related Disclosures 550 – Related Parties 560 – Subsequent Events 570 – Revised Going Concern 580 – Written Representations 600 – Special Considerations – Audits of Group Financial Statements (including the Work of Component Auditors) 610 – Using the Work of Internal Auditors 620 – Using the Work of an Auditor’s Expert 700 – Revised Forming an Opinion and Reporting on Financial Statements 701 – Communicating Key Audit Matters in the Independent Auditor’s Reports 705 – Modifications to the Opinion in the Independent Auditor’s Report 706 – Revised emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report 710 – Revised Comparative Information – Corresponding Figures and Comparative Financial Statements 720- Revised The Auditor’s Responsibility Relating to Other Information in Documents Containing Audited Financial Statements 800- Special Considerations – Audits of Financial Statements prepared in Accordance with Special Purpose Frameworks 805- Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or items of a Financial Statement 810 – Engagements to Report on Summary Financial Statements | |
| 2 | International Auditing Practice Statements (IAPSs) | 1000 – Inter-bank Confirmation Procedures 1004- The Relationship Between Banking Supervisors and Banks’ External Auditors 1006 – Audits of the Financial Statements of Banks 1010 -The Consideration of Environmental Matters in the Audit of Financial Statements 1012 – Auditing Derivative Financial Instruments 1013 – Electronic Commerce- Effect on the Audit of Financial Statements | |
| 3 | International Standards on Review Engagements (ISREs) | 2400 – Engagements to Review Financial Statements 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity | |
| 4 | International Standards on Assurance Engagements (ISAEs) | 3000 – Assurance Engagements Other than Audits or Reviews of Historical Financial Information 3400 – The Examination of Prospective Financial Information 3402 – Assurance Reports on Controls at a Service Organisation | |
| 5 | International Standards on Related Services (ISRSs) | 4400- Engagements to Perform Agreed-upon Procedures Regarding Financial Information 4410 -Engagements to Compile Financial Statements | |
| 6 | IFAC Statements | ISQC1- Quality Control for Firms that Perform Audits and Reviews Financial Statements, and Other Assurance and Related Services IFAC – IESBA Code of Ethics for Professional Accountants | |
| 7 | Other relevant laws and pronouncements including: | (a) Insurance Act; (b) BOFIA, including prudential guidelines and other circulars issued by CBN from time to time; (c) Money (Prohibition) Laundering Act 2011; (d) Corporate Governance Codes; (e) ICAN Professional Code of Ethics and Guide for Members; (f) International Financial Reporting Standards (IFRS) and Nigerian Standards on Auditing (NSAs); and (g) Companies and Allied Matters Act (CAMA) 1990 (as amended). | |
Are you aiming for excellence in your ICAN Strategic Financial Management exams or you simply want to broaden your knowledge in a quest for career advancement? Then you need to study intensively to achieve that.
The updated ICAN syllabus on Strategic Financial Management offers you an opportunity to advance your career and gain expertise in strategic financial management. It covers topics on risk management, investment alternatives, and the value of business equipping you with the tools and strategies needed to excel in the dynamic business world.
Studying intensively using the updated ICAN syllabus allows you access to the topics you would meet in the exams, and this will ensure your success in the forthcoming ICAN-ACA professional examinations.
Strategic Financial Management supports management in making informed decisions. Candidates are expected to apply relevant knowledge, and skills and exercise professional judgement in recommending appropriate options for financing a business, recognising and managing financial risks, dividend decisions and investments.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Professional Level | |||
| Level | Professional | ||
| Course name | C3 -Strategic Financial Management | ||
| Abbreviation | SFM | ||
| A. Financial environment, role of financial manager and money market Institutions | |||
| Topic | Breakdown | Marking guide | |
| 1 | Financial environment and role of financial manager | a. Evaluate financial objectives within the strategic planning process of an organisation. b. Identify key stakeholders of organisations and advise on their interests. c. Evaluate the impact of macroeconomic environment and the role of international financial institutions in strategic financial management. d. Evaluate and apply the concept of corporate social responsibility and its relationship with the objective of maximising shareholders’ wealth. e. Assess and advise on agency theory and its relevance to financial management. f. Report on the professional, regulatory and legal frameworks relevant to financial management, including stock exchange requirements, antimoney laundering regulations and directors’ responsibilities. g. Evaluate and communicate the key activities undertaken by treasury managers. h. Analyse and evaluate centralised and decentralised treasury management and the arguments for and against each. i. Identify and assess the impact of emerging issues in strategic financial management. j. Discuss ethical issues in strategic financial management. | 15% |
| 2 | The nature and roles of financial markets and institutions | (a) Identify the nature and roles of money and capital markets, both nationally and internationally. (b) Explain the roles of financial intermediaries. (c) Explain the functions of stock market and corporate bond market. | |
| 3 | The nature and roles of money markets | (a) Describe the roles of money markets in providing i) short-term liquidity to private and public sectors, and ii) short-term trade finance. (b) Explain the functions of banks and other financial institutions in the operations of money markets. (c) Explain the characteristics and roles of the following principal money market instruments: i) interest-bearing instruments; ii) discount instruments; and iii) derivative products. (d) Compare and contrast capital and money market operations. | |
| B. Business analysis | 30% | ||
| 1 | Evaluate and assess the value of businesses and give advice on the value of shares and business, in a given scenario, using: (a) Dividend yield based valuation techniques; (b) Price earnings ratio based valuation techniques; (c) Discounted cash flow based valuation techniques and free cash flow models; (d) Asset-based measures of value; (e) Option-based techniques; (f) Value-based management; (g) Shareholder value analysis; (h) Short and long term growth rates and terminal values; (i) Economic profit methods; (j) Cash flow return on investment; (k) Total shareholder return; (l) Economic value added (EVA) and market value added (MVA); and (m) Efficient Market Hypothesis (EMH) and practical considerations in the valuation of shares | ||
| 2 | International Valuation Standards | Carry out financial valuation in accordance with guidelines provided by International Valuation Standards (IVS) Council: a. IVS 200: Business and business interest; b. IVS 210: Intangible assets; c. IVS 410: Development property; and d. IVS 500: Financial instruments. | |
| 3 | Bond valuation and analysis | a. Evaluate and advise on the worth of a bond using value of bond or yield to maturity. b. Assess an organisation’s yield volatility using simple Macaulay duration and modified duration methods. c. Assess and apply terms interest rate (yield curves). d. Assess the benefits and limitations of duration including the impact of convexity. (Note: calculation of convexity not required) | |
| 4 | Forecast and evaluate long term financial performance and position of a business, using: | a. Statement of profit or loss; b. Statement of financial position; and c. Statement of cash flows. | |
| 5 | Investment appraisal | (a) Discounted cash flow techniques (i) Evaluate potential value added to an organisation arising from a specified capital investment project, using the net present value (NPV) model covering: Inflation and specific price variation; Taxation; Single period and multi-period capital rationing, including linear programming formulation and interpretation of final tableau; Probability and sensitivity analyses; Decision tree, simulation, certainty equivalent; Value of perfect and imperfect information; Project duration as a measure of risk; and Risk adjusted discount rates. (ii) Establish the potential economic return (using internal rate of return (IRR) and modified internal rate of return). (iii) Assess the relative merits of NPV and IRR. (b) Specific investment decisions (i) Evaluate leasing and borrowing to buy. (ii) Evaluate asset replacement decisions using equivalent annual cost and equivalent annual benefits. (c) Impact of financing on investment decisions Assess the worth of projects using adjusted net present value (ANPV). (d) International investment decisions (i) Assess factors affecting foreign investment decisions and associated risks. (ii) Apply interest rate parity and purchasing power parity to assess appropriate discount rate for foreign projects. (iii) Evaluate NPV of foreign projects. (e) Real options in investment appraisal (i) Identify possible embedded real options within a project. (ii) Advise on the value of options to delay, expand, abandon and redeploy, using the Black-Scholes option pricing model. | |
| C. Financing decisions | 25% | ||
| 1 | Sources of finance | (a) Assess the range of long-term sources of finance available to businesses, including equity, debt and venture capital. (b) Evaluate and discuss methods of raising equity finance, including: (i) Rights issue; (ii) Placement; (iii) Public offer; (iv) Stock exchange listing; and (v) Financial market dealers quotations over the counter (FMDQOTC). (c) Methods of raising short and long term Islamic finance including major differences between Islamic finance and the other forms of business finance (i) Evaluate the concept of riba (interest) and how returns are made by Islamic financial securities. (ii) Evaluate Islamic financial instruments available to businesses, including: Murabaha (trade credit); Ijara (lease finance); Mudaraba (equity finance); Sukuk (debt finance); and Musharaka (venture capital). (Note: calculations are not required) d. Assess and advise on appropriate dividend policy. | |
| 2 | Estimating cost of capital | Evaluate and apply: (a) Cost of equity, using dividend growth model and capital asset pricing model (CAPM); (b) Cost of fixed interest capital; (c) Weighted average cost of capital (WACC); (d) Project specific cost of capital; and (e) Business and financial risk, asset and equity beta. | |
| 3 | Capital structure theories | (a) Assess the traditional view of capital structure and its assumptions. (b) Evaluate and apply Modigliani and Miller models 1 & 2 on capital structure. (c) Discuss the limitations of Modigliani and Miller models 1 & 2 on capital structure. (d) Discuss and evaluate pecking order theory. | |
| 4 | Finance for small and medium-sized entities (SMEs) | Discuss the various sources and problems of access to finance for SMEs including: (a) Business angel; (b) Government assistance; (c) Supply chain financing; and (d) Crowd funding. | |
| 5 | Portfolio theory and asset pricing models | (a) Portfolio theory Assess and apply: (i) Risk and return relationship in investments; (ii) Risk (standard deviation) of 2-asset portfolio; and (iii) Risk reduction through diversification. (b) Capital asset pricing model (CAPM) i) Discuss: Systematic and unsystematic risks; Capital market line (CML) and the security market line (SML); and Alpha value and its use. (ii) Calculate Beta factor and explain its uses. (c) Evaluate return on assets using multi factor model (MFM). | |
| D. Mergers and acquisitions, organic growth and corporate restructuring | 15% | ||
| 1 | Acquisition and merger | Assess and advise on: (a) The arguments for and against the use of acquisitions and mergers as a method of corporate expansion; (b) The criteria for choosing an appropriate target for acquisition; (c) The reasons for high failure rate of acquisitions; (d) The use of the reverse takeover as a method of acquisition; (e) Defensive strategies in hostile takeover bids; (f) Valuation of an organisation in the context of a potential takeover; (g) Due diligence during a merger/acquisition; and (h) Management buy-out (MBO), management buy-in and buy-in management buy-out (BIMBO). | |
| 2 | Organic growth | Evaluate and discuss organic growth. | |
| 3 | Corporate reconstruction and re-organisation | (a) Corporate failure Assess and advise on: (i) Causes and symptoms of corporate failure; and (ii)Corporate failure using Altman Z-score model. (b) Financial reconstruction (i) Assess the suitability of financial reconstruction as a survival strategy. (ii) Assess market reaction to reconstruction schemes. (c) Business re-organisation (i) Advise on strategies for unbundling parts of a quoted company. (ii) Evaluate the likely financial and other benefits of unbundling (iii) Advise on de-merger, equity carve out, equity carve in, spin off, asset stripping and liquidation. (iv) Discuss the arguments for and against a quoted company going private. | |
| E. Management of financial risks | 15% | ||
| 1 | (a) Assess and advise on: (i) Different types of foreign currency risk; (ii) The causes of exchange rate fluctuations (balance of payments, purchasing power parity theory and interest rate parity theory); (iii) The causes of interest rate fluctuations (structure of interest rates and yield curves, expectations theory, liquidity preference theory, market segmentation, spot and forward interest rates); (iv) The traditional and basic methods of foreign currency risk management, (currency of invoice, netting and matching, leading and lagging, forward exchange contracts, money market hedging, asset and liability management); (v) The appropriate derivative instruments for hedging foreign currency risks, (forward contracts, futures contracts, currency options and currency swaps); (vi) The appropriate derivative instruments for hedging interest rate risk, (forward interest rate agreement, interest rate futures, interest rate options and interest rate swaps) (b) Assess and apply financial options in capitalisation: (i) Value of call and put options using Black-Scholes option pricing model and the Binomial option pricing model; and (ii) Option sensitivities (delta, gamma, rho, theta and vega). | ||
Whether you are an aspiring chartered accountant preparing for your ICAN-ACA professional exams, a tax professional seeking to hone your skills, or both, this ICAN Advanced Taxation(AT) course is for you.
The ICAN Advanced Taxation course covers topics on the regulations and practices in taxation and affords you an in depth understanding of their application to resolve tax and ethical issues.
Studying for the ICAN AT course using the updated ICAN syllabus is your sure bet to passing your forthcoming ICAN exams and becoming a certified tax professional.
Candidates are expected to apply technical knowledge, professional skills and exercise professional judgement to resolve tax and ethical issues that may arise in given taxation scenarios and to advise on tax planning and mitigation strategies for individuals and businesses.
On successful completion of this paper, candidates should be able to:
| Syllabus for ICAN Professional Level | |||
| Level | Professional | ||
| Course name | C4 -Advanced Taxation | ||
| Abbreviation | AT | ||
| A Taxation of Business and Investment Income | |||
| Topic | Breakdown | Marking guide | |
| 1 | Companies Income Tax | (a) Legal framework, bases period and total profits (i) Explain the legal framework for the imposition of taxes on business and investment income (ii) Advise on income tax liability of companies based on: Apply advanced tax laws and principles to resolve real life tax scenarios Design and evaluate appropriate ethical safeguards to mitigate threats in a workplace. Evaluate and apply the provisions relating to capital gains tax Apply the concept of tax planning and tax mitigation Understand tax dispute resolution mechanism Compute petroleum profits tax Liaise with tax officials, clients and other professionals in a suitable way • Total profit; • Minimum tax; • Dividend distribution; and • Revenue/turnover. (iii) Explain the taxation of the following investment income from Nigerian and non-Nigerian companies: • Dividend • Interest • Royalty • Rent | 40% |
| 2 | Oil and Gas Taxation | a. Discuss the general overview of the oil and gas industry in Nigeria. b. Discuss the roles of regulatory agencies in the oil and gas industry such as the Nigerian National Petroleum Corporation (NNPC), National Petroleum Investment Management Services (NAPIMS), Department of Petroleum Services (DPR) and Federal Inland Revenue Service (FIRS). c. Consider the effects of the provisions of The Petroleum Industry Governance (PIG) Bill. d. Discuss the fiscal/operating arrangement/regimes in the upstream sector, with emphasis on: i. Joint Venture; ii. Production sharing contract; iii. Risk service arrangement; iv. Oil and gas free trade zones; and v. Marginal field operators. e. Advise on what constitutes accounting period for tax purposes. f. Ascertain the sources of income accruing to petroleum companies. g. Evaluate and advise management on adjusted profit, assessable profit, chargeable profit, and tax liabilities. h. Advise on allowable and disallowable expenses and other deductions. i. Discuss the treatment of losses in the computation of petroleum profits tax liabilities. j. Identify and describe qualifying capital expenditure for capital allowance purposes and compute capital allowances claimable by petroleum companies. k. Advise on petroleum profits tax (PPT) under Joint Ventures (JV), production sharing contracts (PSC), marginal field operators, etc. l. Discuss tax payable based on the incentives available to companies under production sharing agreements with the Federal Government of Nigeria. m. Describe the tax regime applicable to sole risk and marginal field operators. n. Advise on the offences and penalties applicable to petroleum companies. o. Discuss the requirements for registration and filing of returns for petroleum companies. | |
| 3 | Mining taxation | (a) Advise on the scope and administration of the Nigerian Minerals and Mining Act, 2007 (as amended), in respect of: (i) Mining incentives; (ii) Minerals titles; (iii) Possession and purchase of minerals; (iv) Environmental considerations and rights of host communities; (v) Offences and penalties; (vi) Allowable and disallowable expenses; (vii) Rates of capital allowances; (viii) Computation of capital allowances; (ix) Total profits; and (x) Treatment of losses. (b) Advise on the scope and administration of the Nigeria Extractive Industries Transparency Initiative (NEITI) Act No 17, 2007. | |
| B International Taxation | 20% | ||
| 1 | Non resident taxation | (a) Explain the various forms of tax presence of a non-resident company doing business in Nigeria (b) Evaluate the tax implications of non-resident companies doing business in Nigeria. | |
| 2 | Taxation of the digital economy | (a) Explain the concept of digital economy (b) Evaluate the key challenges of taxing digital goods and services (c) Discuss the existing and proposed legal/administrative framework for taxing digital transactions | |
| 3 | Tax Treaties. | (a) Define and explain the following: i. Unilateral relief ii. Double taxation agreements iii. Multilateral treaties (b) Advise on the application of tax rules and reliefs available as follows: (i) Reliefs under the Commonwealth tax relief (ii) Impact of double tax treaty; (iii) Resolution of conflicts between double taxation agreements (DTAs) and Nigerian tax laws; and (iv) Nigerian double tax agreements (DTAs). • Permanent Establishment • Taxation of business profits and incomes from movable and immovable properties. • Taxation of investment incomes. • Dispute resolution mechanisms. | |
| 4 | Transfer pricing | (a) Introduction to transfer pricing (i) Advise on transfer pricing (TP) by reference to the guidelines of Organisation for Economic Cooperation and Development (OECD), United Nations (UN) and Pacific Association of Tax Administrators (PATA). (ii) Justify the application of transfer pricing regulations by multinationals and developing countries. (b) Nigerian transfer pricing regulations Evaluate and apply the provisions of the Nigerian Income Tax (Transfer Pricing Regulations) 2012, in respect of: (i) Objectives and scope of transfer pricing regulations; (ii) Commencement date; (iii) Connected taxable persons; (iv) Transfer pricing methods such as traditional transaction methods and transactional profit methods or any other method; (v) Advance pricing agreements (APA); (vi) Functional analysis in transfer pricing; (vii) The basic comparability factors in the process of transfer pricing benchmarking; and (viii) The basic documentation requirements for transfer pricing benchmarking. | |
| 5 | Actions against Base Erosion and Profit Shifting (BEPS) | (i) Explain the 13 BEPS Action Plans of the OECD (ii) Advise on the provisions and application of the Income Tax (Country By Country Reporting) Regulations 2018 issued by the Federal Inland Revenue Service | |
| 6 | Regional integration and trade blocs | (i) Discuss the formation and fiscal policy objectives of the Economic Community of West African States (ECOWAS) (ii) Explain the application of ECOWAS Common External Tariffs (iii) Discuss other regional trading blocs in Africa and comparison to the European Union (EU) and North American Free Trade Agreement (NAFTA) | |
| 7 | Current issues and emerging trends | (a) Explain the following: i. Tax Inspectors Without Borders ii. Cooperative Compliance iii. Common Reporting Standards iv. Foreign Account Tax Compliance Act | |
| C Tax Management & Planning | 25% | ||
| 1 | Mergers and acquisition | (a) Advise on the bases periods for assessment relating to Mergers and acquisitions (b) Discuss the tax implications of mergers and acquisition | |
| 2 | Tax incentives | (a) Explain the tax implications of Pioneer Legislation [Industrial Development (Income Tax Relief) Act] and Pioneer Status Incentive regulations released by Nigerian Investment Promotion Commission (NIPC) in 2014 and 2017, on the: (i) Various pioneer industries and products on the pioneer list; (ii) Procedure for applying and obtaining pioneer status and how pioneer certificate can be amended; (iii) Provisions relating to retrospective operations and the date of production certification; (iv) Conditions relating to qualifying capital expenditure for pioneer industries; (v) Circumstances for the cancellation of pioneer certificates; (vi) Tax relief period and the conditions for extension of pioneer period; (vii) Tax incentives available to pioneer industries; (viii) Application of the commencement and cessation provisions to pre- and post-pioneer period, together with the treatment of losses and capital allowances of pioneer period; and (ix) Various restrictions applicable t o pioneer industries. (b) Explain the tax implications of operations in the Free Trade Zones (c) Appraise the tax incentives for manufacturing, Agricultural and exports business | |
| 3 | Tax practice management | (a) Explain the legal requirements for a professional accountant in practice (b) Describe the process involved in client and engagement acceptance (c) Advise on the risks and benefits of running a professional tax practice (d) Discuss the role of technology in running a contemporary tax practice | |
| 4 | Tax Planning, avoidance and evasion | (a) Advise management on tax planning activities and strategies. (b) Differentiate between tax avoidance and evasion. (c) Evaluate the tax implications of the following: (i) Thin capitalisation; (ii) Tax havens; (iii) Non-tax factors; and | |
| 5 | Tax audit and tax investigation | (a) Differentiate between tax audit and tax investigation. (b) Identify and advise on the different types of tax audit. (c) Advise on the powers of tax authority to request for an audit. (d) Advise management on tax audit procedures, covering: (i) Pre-audit; (ii) Field audit; and (iii) Post-audit including various reports and correspondence. (e) Discuss the main causes of tax investigation and state the procedures involved. (f) Discuss the provisions backing the power to distrain for non-payment. (g) Advise on ethical issues – implications of confidentiality, conflict of interest and disclosure of information in tax practice. (h) Advise on interpretation of tax laws using decided cases. (i) Advise on the nature of communication with clients, tax authorities and other stakeholders. | |
| 6 | Dispute resolution | (a) Discuss the elements of a valid objection and appeal, covering: (i) Time limit for objection and appeal; (ii) Content of a notice of objection and appeal; (iii) Amendment of assessment and refusal to amend; and (iv) Appeal procedures and process: Tax Appeal Tribunal, Federal High Court, etc. (c) Draft a report on the procedure for the presentation of cases before a Tax Appeal Tribunal. | |
| 7 | Ethical and professionalism in tax management | (a) Apply the five fundamental principles and guidance in International Ethics Standards Board for Accountants (IESBA) codes to recommend and justify appropriate legal actions where ethical dilemmas arise. (b) Advise on legal and ethical issues arising from tax work undertaken and explain the significance of these issues in the preparation of returns and in reporting. (c) Design and evaluate appropriate ethical safeguards to mitigate threats that could arise when professionals deal with employers, clients, government agencies and other stakeholders. (d) Explain the practical process to follow in addressing a tax violation under the NOCLAR framework as a: (i) professional accountant in tax practice; and (i) Tax professional in business. | |
| 8 | Tax accounting and reporting | (a) Discuss the treatment of income tax items in annual reports prepared in line with International Financial Reporting Standards (b) Advise on potential risks of wrong or misleading tax disclosures. | |
| D Tax Administration and Fiscal Policy | 15% | ||
| 1 | Tax Administration | (a) Explain the Nigerian tax administration system with focus on: (i) Constitutional provisions regarding fiscal federalism (ii) Structure and taxing rights of different levels of government (iii) Role of the three arms of government (iv) Functions of the various tax administration bodies (v) Challenges of multiplicity of taxes and possible solutions | |
| 2 | Domestic Tax Policy | (a) Discuss key principles and cannons of tax policy formulation (b) Advise on the key provisions and application of the 2017 National Tax Policy in Nigeria (c) Explain the interaction of fiscal policy, monetary policy and trade policy | |
| 3 | International tax policy | (a) Evaluate the roles being played by inter-governmental and supranational organizations that shape tax policy. (b) Discuss the effectiveness of global cooperation and assistance on tax matters (c) Evaluate the use of neutralities in international tax policy. | |
To ensure that candidates can provide advice in respect of complex business issues in the form of a written report. The objective of Case Study is to assess candidates’ understanding of complex business issues and their ability to analyse financial and nonfinancial data, exercise professional and ethical judgements, draw conclusions and make recommendations.
To ensure that candidates can provide advice in respect of complex business issues in the form of a written report. The objective of Case Study is to assess candidates’ understanding of complex business issues and their ability to analyse financial and nonfinancial data, exercise professional and ethical judgements, draw conclusions and make recommendations.
The competencies that will be assessed under the Case Study paper include:
1. The core technical knowledge, skills and practical application acquired at the Foundation and Skills levels;
2. The technical, analytical, evaluative and integration skills from the Professional level; and
3. The advisory, judgmental and communication skills acquired through practical work experience.
| Syllabus for ICAN Professional Level | |||
| Level | Professional | ||
| Course name | C5 – Case Study | ||
| Abbreviation | CS | ||
| Detailed Syllabus | |||
| Topic | Breakdown | Marking guide | |
| 1 | Introduction | The case study assesses the capability of a candidate who has covered all other ICAN examination papers to understand issues in a relatively unstructured scenario enabling the production of a professional report based on the use of financial and business knowledge and skills acquired in earlier examination subjects. It requires the use of underpinning tools that support both financial and business analyses. | |
| 2 | Scenario | It will consist of a single scenario, comprising pre-seen and unseen. Candidates will receive the pre-seen electronically two (2) weeks before the examination date while the unseen will be given to them on the day of the examination. The scenario is a complete and highly realistic scenario based on a private, public or charitable sector entity or entities in a current business environment that is stated and explained. | |
| 3 | Scenario continued | The Scenario is followed by two requirements The candidate will be required to write a report based on a given business scenario from a brief. This will include: 1. Executive summary, introduction, main body, conclusion and recommendation; and 2. Appendices. The assessment will be evidence based on the content of the script submitted by the candidate in an examination that lasts for four (4) hours. The first purpose is to test the capability of the candidate to show evidence of his understanding of specified issues in the scenario in an answer that is a written report but that may include the presentation of some financial or non-financial information. The other purpose is to assess the capability of the candidate to produce a professional report dealing with two specific requirements based on a combination of financial and business analyses of the information in the scenario. The report produced may include appendices to show evidence of analyses undertaken. | |
| 4 | Scenario requirements | The scenario requirements may involve the following: 1. Informed business judgement; 2. Managerial judgement; 3. Professional scepticism; 4. Professional ethics; 5. Business ethics; 6. Risk assessment; 7. Due diligence; 8. Corporate social responsibility; 9. Governance; 10. Social issues; 11. Efficiency, economy and effectiveness; 12. Managing shareholders’ and other stakeholders’ interest; 13. Globalisation issues; and 14. Business sustainability issues. | |
| 5 | Analytical tools | The following strategic management tools will be tested: 1. Strategic tools which include PESTEL, SWOT, Porter’s five forces, Benchmarking, Porter’s value chain analysis, Porter’s generic strategies, Porter’s diamond, Boston consulting group model (BCG), Ansoff’s matrix, gap analysis, business capacity analysis, resource audit, Boston and business process model; 2. Performance management tools such as Critical success factors (CSF), key performance indicators (KPIs), balanced scorecard, value for money, economic value added (EVA); 3. Tools to analyse a basic set of financial statements consisting of statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows and supporting notes such as trend analysis, ratio analysis and common size analysis; 4. Tools that can be used with management information such as budgets and forecasts; 5. Tools that can be used for management short term decisions such as marginal costing and contribution analysis; 6. Financial engineering assessment tools; 7. Business valuation tools; 8. Analyses and evaluation of key types of business risks and assessment of their implications within a given scenario; 9. Appraisal and evaluation of financial reconstruction proposals in a given scenario; and 10. Advise on investment proposals appropriate to the objectives of a given business organisation. | |
| 6 | Ethical consideration | Ethical issues are component of Case Study. They will be assessed in a contextual and broad way using case study examination. Ethics will not be more than 15% of the content. However, candidates will not be asked about ethics directly, they will have to recognise and include ethical matters and concerns in their output as part of the case study. They include professional issues and how businesses are conducted – sustainability, social and environmental impact. Ethics may be seen in the context of regulations, regulatory oversight, professional duties, public interest and reputation. | |
| 7 | Assessment procedure | The Case Study requirements are relatively open and there is no single solution or model. However, candidate’s report will be assessed based on the content and in-depth analysis of the scenario. The assessment will be based on the following factors: 1. Use of data and information provided in the case scenario and appendices appropriately; 2. Use of professional tools and knowledge – those acquired in the other subjects of the examination; 3. Use of analytical skills; 4. Identification of issues and options; 5. Application of professional scepticism and ethical judgement; 6. Evaluation of issues and options; 7. Arriving at appropriate conclusions; and 8. Proposing appropriate recommendations. The candidate’s overall report will be assessed based on the following factors: 1. Inclusion of appropriate appendices; 2. Good structure; and 3. Appropriate style and language | |
| Exemption Guidelines | ||
| SN | Academic Qualification | Exemptions |
| A | PhD (Accounting) with M.Sc. (Accounting) and B.Sc.(Accounting) | All subjects in Foundation and Skills levels |
| B | M.Sc. (Accounting) obtained from ICAN accredited institutions in addition to B.Sc. in Accounting. | All subjects in Foundation level B1.Financial Reporting B2. Audit and Assurance |
| C | M.Sc. (Accounting) obtained from ICAN accredited institutions but without B.Sc. in Accounting. | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
| D | M.Sc. (Accounting) obtained from non-accredited institutions in addition to B.Sc. in any accounting related discipline. | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| E | B.Sc/HND (Accounting) obtained under the Mutual Co-operation Agreement with Tertiary Institutions (MCATI) | All subjects in Foundation and Skills Levels |
| F | ATSWA ( from year 2010) | All subjects in Foundation Level B2. Audit and Assurance |
| G | ATS II (pre-2010) | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
| H | B.Sc./HND (Accounting) obtained from ICAN accredited Institutions in Nigeria. | All subjects in Foundation Level B2. Audit and Assurance |
| I | B.Sc./HND (Accounting) obtained from recognised institutions in Nigeria but not accredited by ICAN. | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| J | B.Sc./HND (Accounting)/ Masters in Accounting & Finance (MAF) obtained from foreign recognised institutions. | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
| K | B.Sc. Economics | A2. Business, Management and Finance |
| L | B.Sc. Actuarial Science | A2. Business, Management and Finance A5. Business Law |
| M | B.Sc./HND Insurance | A2. Business, Management and Finance A5. Business Law |
| N | B.Sc./HND/B.A Business Admin/Management/Public Administration | A2. Business, Management and Finance A5. Business Law |
| O | B.Sc./HND Banking and Finance | A2. Business, Management and Finance A5. Business Law |
| P | B.Sc./HND Marketing | A2. Business, Management and Finance A5. Business Law |
| Q | MBA/MBF in addition to B.Sc./HND in non- accounting discipline | A2. Business, Management and Finance A5. Business Law |
| R | B.Sc. (Ed.) Accounting or B.Ed. Business Education (Accounting option) | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| S | B.Ed. Education Management (Accounting Option) | A2. Business, Management and Finance A5. Business Law |
| T | B.Ed. Business Education | A2. Business, Management and Finance |
| U | B.Sc./B.A Commerce | A2. Business, Management and Finance A5. Business Law |
| V | B.Sc./HND Cooperative and Rural Development | A2. Business, Management and Finance A5. Business Law |
| W | LL.B/LL.M/LL.D | A5. Business Law |
| Professional qualifications | ||
| SN | Qualifications | Exemptions |
| A | Associate Chartered Institute of Bankers of Nigeria (ACIBN) | All subjects in Foundation level except Taxation |
| B | Associate Institute of Financial Services, UK (Formerly Chartered Institute of Bankers, London) | A2. Business, Management and Finance A3. Financial Accounting |
| C | Associate Chartered Institute of Stockbrokers of Nigeria (ACIS) | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| D | Associate Institute of Chartered Secretaries and Administrators (AICSA) | A2. Business, Management and Finance A3. Financial Accounting A5. Business Law |
| E | Associate Chartered Institute of Insurance of Nigeria (ACIIN) | A2. Business, Management and Finance A5. Business Law |
| F | Associate Chartered Institute of Taxation of Nigeria (ACITN) | All subjects in Foundation level except Management Information |
| G | Certified National Accountant of Nigeria (CNA) | All subjects in Foundation and Skills levels |
| H | Federal Treasury Academy with effect from 1987 (Formerly Federal Treasury Training School) (EMA) | All subjects in Foundation Level B2. Audit and Assurance |
| I | ICAEW | All subjects at all levels |
| J* | CIPFA, UK | All levels except the following subjects in each of the levels: A5. Business Law C4. Advanced Taxation |
| K* | CIMA, UK | All levels except the following subjects in each of the level: A5. Business Law B5. Public Sector Accounting & Finance C2. Advanced Audit and Assurance C4. Advanced Taxation |
| L* | ACCA, UK CPA, USA ICAS, UK ICAI, UK | All levels except the following subjects in each of the levels: A5. Business Law B5. Public Sector Accounting & Finance C4. Advanced Taxation |
| M | AIA (Final) with effect from 1994 AAT (UK) | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information B2. Audit and Assurance |
| N | AIA (Pre-1994) | A2. Business, Management and Finance A3. Financial Accounting A4. Management Information |
Exam registration fee for the professional level of ICAN depends on the number of courses you want to register for. Writing 5 courses at this level will cost you N93,870. See fee breakdown here.
There are five courses in the professional level of ICAN. They are; Corporate Reporting, Advanced Audit and Assurance, Strategic Financial Management , Advanced Taxation, and Case Study.
Candidates must register online for the examinations. Visit the institute’s website for guidelines on students’ registration.
The Professional level examinations can be completed in one diet sitting. Candidates writing the examinations may register for any number of papers at a level and shall be credited with each paper passed.
ICAN examination is done twice a year, usually in May and November. However, registration for the exam starts 3 months before the exam dates.
The pass mark for each paper of the ICAN examination is 50%.
You can choose “self-study” or attend tutorials. It is advised that you study for the exams using the updated ICAN syllabus which available at syllabus.ng.
Yes, Graduates with international certifications, and some post graduate qualification from ICAN-accredited institutions or obtained under the Mutual Co-operation Agreement with Tertiary Institutions (MCATI) are exempted from all or some courses in the professional level. Please check academic and professional exemption sections for more information
