© ICAEW 2014

ACA SKILLS DEVELOPMENT GRID

ADVANCED LEVEL

CASE STUDY

© ICAEW 2014

ACA OVERVIEW

The ICAEW chartered accountancy qualification, the ACA, is one of the most advanced learning and professional development programmes available. Its integrated components provide an in-depth understanding across accountancy, finance and business. Combined, they help build the technical knowledge, professional skills and practical experience needed to become an ICAEW Chartered Accountant. Each component is designed to complement each other, which means that students can put theory into practice and can understand and apply what they learn to their day-to-day work. The components are:

Professional development

ICAEW Chartered Accountants are known for their professionalism and expertise. Professional development prepares students to successfully handle a variety of different situations that they encounter throughout their career. The ACA qualification improves students’ ability and performance in seven key areas: adding value communication consideration decision making problem solving team working technical competence.

Ethics and professional scepticism

Ethics is more than just knowing the rules around confidentiality, integrity, objectivity and independence. It’s about identifying ethical dilemmas, understanding the implications and behaving appropriately. We integrate ethics throughout the ACA qualification to develop students’ ethical capabilities – so they will always know how to make the right decisions and justify them.

3-5 years practical work experience

Practical work experience is done as part of a training agreement with one of our 2,850 authorised training employers around the world. Students need to complete 450 days, which normally takes between three and five years. The knowledge, skills and experience they gain as part of their training agreement are invaluable, giving them the opportunity to put what they’re learning into practice.

© ICAEW 2014

15 accountancy, finance and business modules

Each of the ACA modules is directly relevant to the work that students do on a day-to-day basis. They will gain in-depth knowledge across a broad range of topics in accountancy, finance and business. There are 15 modules over three levels. These can be taken in any order with the exception of the Case Study which has to be attempted last. Students must pass every exam (or receive credit) – there are no options. This ensures that once qualified, all ICAEW Chartered Accountants have a consistent level of knowledge, skills and experience.

Certificate Level

There are six modules that will introduce the fundamentals of accountancy, finance and business. They each have a 1.5 hour computer-based assessment which can be sat at any time. Students may be eligible for credit for some modules if they have studied accounting, finance, law or business at degree level or through another professional qualification.

Professional Level

The next six modules build on the fundamentals and test students’ understanding and ability to use technical knowledge in real-life scenarios. Each module has a 2.5–3 hour exam, which are available to sit four times per year. These modules are flexible and can be taken in any order. The Business Planning: Taxation and Business Strategy modules in particular help students to progress to the Advanced Level.

Advanced Level

The Corporate Reporting and Strategic Business Management modules test students’ understanding and strategic decision making at a senior level. They present real-life scenarios, with increased complexity and implications from the Professional Level modules. The Case Study tests all the knowledge, skills and experience gained so far. It presents a complex business issue which challenges students’ ability to problem solve, identify the ethical implications and provide an effective solution. The Advanced Level exams are fully open book, so they replicate a real-life scenario where all the resources are readily accessible.

© ICAEW 2014

Skills development grid

This document presents the skills assessed alongside technical knowledge for the Corporate Reporting module. The skills should be read in conjunction with the module syllabus and learning outcomes and the relevant technical knowledge grid. The link between work experience and the examinations will be made explicit through the professional development framework and the skills development grids. Students should use the professional development framework and skills development grids to ensure success in exam performance and success in their workplace performance. For each skills area, there is a description of the specific skills that are assessed, and how these

skills are assessed

© ICAEW 2014 5

SKILLS PROGRESSION THROUGH THE ACA QUALIFICATION

Assessed skills Certificate Level Professional Level

Advanced Level

Corporate Reporting and Strategic Business

Management

Case Study

Assimilating and using information

Understanding the subject matter and identifying issues

Specific issues Simple scenarios Complex scenarios Unstructured complex business scenarios

Accessing, evaluating and managing information

Information/data as provided Single information source provided

Multiple information sources provided

Multiple information sources including own research

Using technical knowledge and professional experience

Highly structured application of non-integrated knowledge

Structured application of non-integrated knowledge

Structured application of integrated and non-integrated knowledge and experience

Unstructured application of integrated knowledge and experience

Structuring problems and solutions

Using analytical tools Specified tools Specified tools Tools inferred by nature of problem

Unspecified tools

Analysing and evaluating problems

Highly specified tasks Specified non-integrated problems

Specified integrated and non-integrated problems

Defined output but unspecified problems

Applying judgement

Assessing quality of information

Objective testing Specified in simple scenario Specified in complex scenario Underlying requirement within complex scenario

Assessing options and priorities including ethical issues

Options given Options included in simple scenario

Options included in complex scenario

Balanced judgement of priorities and risks in unstructured scenario

Considering other perspectives Not assessed Possible alternative provided Alternative(s) provided Alternatives identified using professional experience

Conclusions, recommendations and communication

Drawing conclusions and making recommendations

Not assessed Specified conclusions and recommendations in simple scenarios

Specified conclusions and recommendations in complex scenarios

Conclusions and recommendations supported by own evidence

Presenting data and written work

Prescribed exam format Exam requirements, including some professional presentation

Short written professional presentations

Professional report with appendices and executive summary

© ICAEW 2014 6

CASE STUDY

Assimilating and using information

Assessed skills

Understanding the subject matter.

Accessing, evaluating and managing data and information provided in multiple sources (some pre-disclosed) and from independent research plans.

Using technical knowledge and professional experience to assess interaction of information from different sources.

Framing questions that clarify information or identify gaps in knowledge.

Understanding an organisational framework: evaluating the strengths and weaknesses of an organisation and comparing with benchmarks.

Planning, controlling and evaluating operations in a global context.

Understanding the needs of customers/clients (internal and external).

Demonstrating an understanding of the significance of ethics in the business environment, the importance of ethical behaviour and explaining the consequences of unethical behaviour.

Using relevant content of the IESBA and ICAEW Codes of Ethics.

Demonstrating an understanding of the regulatory structure of the profession, its ethos, culture, its role in corporate and social responsibility and the importance of ethics to a professional.

Demonstrating an understanding of the public interest and corporate and social responsibility.

Understanding the importance of contributing to the profession.

How skills are assessed

The Case Study will require candidates to identify and understand complex scenarios and issues within the wider business context. Candidates will be required to:

use the Advance Information, Exam Paper, knowledge of ethical codes and professional experience to define the specific issue/situation;

identify and use the key financial figures from the Advanced Information and Exam Paper;

use their own understanding of context and relevant findings from their own research;

describe the wider context in which the business operates;

identify relevant business issues showing: o understanding of a business entity o understanding of its position in the industry sector;

recognise where a business is in its life cycle;

identify any important parameters affecting an issue (eg, competitors, loss of clients); and

demonstrate an awareness of ethical and business trust issues and situations.

© ICAEW 2014 7

Structuring problems and solutions

Assessed skills

Using the information given: analysing and evaluating requirements, information, issues and business context.

Analysing, evaluating and synthesising new and complex ideas.

Displaying an enquiring and questioning mind.

Identifying faults in arguments and gaps in evidence.

Demonstrating understanding of the pressures on professional ethical behaviour, including the interaction between professional ethics, the law and other value systems in given scenarios.

Within the two categories of financial analysis, the following specific skills are assessed: Financial statement analysis:

Analysing and evaluating financial statements by selecting appropriate analytical and technical tools and applying technical knowledge and professional experience.

Linking all elements of financial statements (including disclosure notes), evaluating and making comparisons where there are complex interactions.

Evaluating financial statements in the context of other business information. Financial data analysis:

Analysing and evaluating data by selecting appropriate analytical and technical tools and applying technical knowledge and professional experience.

Demonstrating an understanding of sensitivities to change: flexing a range of inputs and evaluating potential outcomes.

Evaluating, prioritising and trading off solutions to complex problems, considering various perspectives, including those of competitors and internal audiences.

How skills are assessed

The Case Study will require candidates to solve complex business problems and develop a range of business strategies. Candidates will be required to:

identify and use key information;

demonstrate technical knowledge;

use professional experience;

use relevant strategic analytical tools (swot, pestel, porter’s 5 forces);

perform relevant analysis;

produce quality analysis showing o depth

o breadth

o logic

o reasonableness;

use knowledge of ethical codes and professional experience to perform relevant analysis; and

assess issues of business trust. Financial statement analysis:

use appropriate analytical tools on information and data provided in the advance information and exam paper to measure financial performance, identify trends and make comparisons;

perform relevant analysis on: o financial statements;

o other information;

make specific adjustments to align equivalent financial information for different factors;

assess the causes and effects of both financial and non-financial factors on the business;

assess the effect of external factors on business activities and financial results; and

© ICAEW 2014 8

integrate numbers and words. Financial data analysis:

prepare and explain relevant calculations based on financial information provided in the advance information and exam paper;

use appropriate analytical tools (eg, valuation methodologies);

perform relevant analysis on: o numerical data;

o other information;

determine specific outcomes from financial and non-financial information provided;

comment on assumptions provided;

consider and calculate possible alternative outcomes (flexing numbers, sensitivity

analysis);

integrate numbers and words.

Applying judgement

Assessed skills

Using technical knowledge, professional experience and evidence to support reasoning.

Applying discrimination: filtering information to identify key factors.

Applying a sceptical and critical approach.

Interpreting information from a range of stances and developing arguments, appreciating the perspective of other parties.

Conducting critiques: considering alternative views in testing the validity of ideas in practice.

Considering and evaluating the effects of a range of alternative future scenarios.

Seeking opportunities to add value.

Prioritising key issues.

Applying the concept of materiality to interrelated situations.

Appreciating the ethical dimensions of situations, exercising ethical judgement and explaining the consequence of unethical behaviour.

Appreciating when more expert help is required.

Identifying linkages, inconsistencies, and ambiguities. How skills are assessed

The Case Study will require candidates to apply their judgement to their findings from their analytical work. Candidates may be required to:

evaluate and build on implications of financial or strategic analysis or calculations;

identify and use key financial information;

recognise linkages;

recognise gaps or shortcomings in the information provided;

select and evaluate key points, such as strengths and weaknesses of a business proposal;

question and evaluate the adequacy of any assumptions and quality of information provided;

explain own assumptions;

discuss output, such as pros/cons;

demonstrate professional scepticism;

demonstrate objectivity/balance;

demonstrate an appreciation of more than one side/bias;

evaluate and balance options;

prioritise key points;

assess weaknesses in decisions;

reflect on the underlying analysis performed and what it means for the organisation;

use knowledge of ethical codes and professional experience;

identify risks and ethical issues within, and derived from, the scenario;

identify key ethical issues for an accountant undertaking work in accounting, finance and

© ICAEW 2014 9

assurance; and

evaluate any specific business trust points relating to the issue under review.

Conclusions, recommendations and communication

Assessed skills

Using technical knowledge, professional experience, evidence and analysis to support conclusions.

Using valid and different technical skills to formulate opinions, advice, plans, solutions, options and reservations.

Making decisions and recommendations in unstructured situations in which risks and uncertainty may exist.

Specifying the criteria for the most appropriate proposal.

Assessing the costs and benefits that may flow from a decision.

Approaching decision-making using an ethical framework and a strong business awareness. How skills are assessed

The Case Study will require candidates to draw conclusions, make recommendations and reach decisions based on their foregoing work and relevant to the organisation as described in the business scenario. Candidates may be required to:

draw conclusions that: o follow logically from the analytical work, evaluations and conclusions; o are realistic; o flow from the analytical work and evaluation previously conducted; o include the impact of any assumptions and any sensitivity analysis; o form an opinion on the validity of information sources; and o conclude on ethical issues.

offer clear, practical, and commercial advice and recommendations that:

o follow logically from the analytical work, evaluations and conclusions; o are backed up by reasoned argument; o are realistic; o help to improve the situation or mitigate any problems or uncertainties identified

within the context of the business scenario and wider context; o lie within the range of current business activity; o identify any significant positive points or areas of concern relating to any decision(s)

reached; o identify any financial implications of action (or no action); o identify additional work needed to support the decision(s); o identify the next steps that the client should take to progress or reject an issue; o identify where any specific additional advice may be required; and o resolve any identified ethical dilemmas or issues of business trust.

Integrative and multidisciplinary skills

Assessed skills

Time awareness: recognising time constraints and prioritising given tasks.

Identifying a range of solutions from analysis of complex scenarios in a multidisciplinary environment.

Relating parts and wholes: discerning interrelated issues as part of complex scenarios, employing a sense of perspective in over-viewing situations.

Identifying and anticipating problems that may flow from a decision.

Developing recommendations for a complex scenario, requiring multidisciplinary skills in a practical situation.

Preparing, describing, outlining the advice, report, notes required in a clear and concise

© ICAEW 2014 10

style.

Providing a report to a specialist or non-specialist audience. How skills are assessed

The Case Study will require candidates to generate and justify solutions for complex problems using information from multiple sources and from an independent research plan. Candidates may be required to:

provide appropriate terms of reference (purpose, scope, disclaimer);

provide a main report that:

demonstrates appropriate balance between requirements;

uses sufficient but not excessive sub-divisions;

makes appropriate but not excessive use of notes and bullets;

uses correct style and language for audience with appropriate tact;

contains appropriate appendices; o calculations easy to follow

o assumptions clearly set out

o no excessive text

o figures appropriately carried forward to main report

presents a coherent answer to each requirement that: o covers the major elements;

o makes suitable use of figures;

o presents figures that are clearly derived;

o flows logically; and

o presents a structured discussion, not just a list of facts.

provide an executive summary that:

o is consistent with the main report; and

o brings forward all the key analysis, judgement and conclusions from the main

report.