CIMA E1 study plan
CIMA E1 · Give each week a clear focus.
8 weeks · About 7 hours per week
E1 (Operational level subject)
Map the E1 syllabus into a one-page checklist of every examinable area, marking each as strong, shaky, or unknown
Define the role of the finance function in a modern organisation and distinguish it from the accounting and audit functions
Explain how the finance function supports strategy, performance management and decision making in a commercial and a public-sector context
Identify the main stakeholders of the finance function and describe the information each group needs
Your checkpoint
A completed one-page syllabus checklist with a personal confidence rating for every area and a ranked list of the five weakest areas
E1 (Operational level subject)
Describe the structure of the finance function and compare centralised, decentralised and shared-service models
Explain the role of the management accountant as a business partner and the skills this requires
Outline the main regulatory and ethical frameworks a finance professional works within, including the purpose of a code of ethics
Distinguish financial accounting, management accounting, treasury and internal audit in terms of purpose and output
Your checkpoint
A one-page comparison table of finance function structures with at least three advantages and three disadvantages for each model
E1 (Operational level subject)
Explain the purpose and key elements of corporate governance, including the roles of the board, audit committee and external auditor
Describe the main principles of internal control and give examples of control failures and their consequences
Distinguish risk identification, assessment and management, and describe common risk responses
Explain how governance and risk management differ between listed companies, private companies and public-sector bodies
Your checkpoint
A written answer plan for a 20-mark governance or internal control question, with definitions, four applied points and a conclusion
E1 (Operational level subject)
Explain the purpose and structure of the main financial statements and the relationships between them
Interpret a simple set of ratios covering profitability, liquidity, efficiency and gearing, and explain what each signals
Describe the regulatory framework for financial reporting and the role of accounting standards
Explain the difference between cash and profit and why both matter to a business
Your checkpoint
A ratio analysis of a set of figures you construct yourself, with a short interpretation of what each ratio reveals and one limitation of ratio analysis
E1 (Operational level subject)
Explain the purpose and process of budgeting and the behavioural issues budgets can create
Distinguish fixed, variable, direct and indirect costs and calculate contribution
Apply cost-volume-profit analysis to calculate break-even point and margin of safety
Explain the limitations of traditional costing and the purpose of activity-based costing
Your checkpoint
A worked break-even and margin-of-safety calculation for a scenario you write, with three sentences on how the result would inform a pricing decision
E1 (Operational level subject)
Explain the purpose of investment appraisal and calculate payback, accounting rate of return and discounted cash flow measures
Describe the strengths and weaknesses of each investment appraisal method and when each is appropriate
Explain the role of the finance function in supporting long-term investment decisions and post-implementation review
Describe the main sources of short-term and long-term finance and the factors influencing the choice
Your checkpoint
A one-page appraisal of a single investment project using at least three methods, ending with a recommendation and the reasons for it
E1 (Operational level subject)
Explain the purpose of performance measurement and the characteristics of a good performance measure
Describe the balanced scorecard and the dimensions it covers, and apply it to a named organisation type
Explain how the finance function supports control in a divisionalised business, including transfer pricing issues
Identify the behavioural consequences of poorly designed performance measures and how to mitigate them
Your checkpoint
A balanced scorecard for a named type of organisation with two measures per perspective and a note on one unintended behavioural risk
E1 (Operational level subject)
Consolidate the weakest three areas identified in week 1 and confirm they are now secure
Practise timed exam technique on multi-part questions, allocating time in proportion to marks
Apply the command verbs explain, describe, discuss and evaluate correctly in written answers
Review your own answers against the mark allocation and identify recurring lost marks
Your checkpoint
Two full timed practice answers written under exam conditions, self-marked against the mark allocation with a short list of the recurring errors to fix
Milestones
Week 2: You can explain, without notes, what the finance function does and how its structure affects the service it provides
Week 4: You can produce a structured answer plan for a governance or internal control question in under ten minutes
Week 6: You can calculate and interpret break-even and a discounted cash flow measure correctly from fresh figures
Week 8: You can complete a multi-part question within the time allowed and score at least half the available marks on your own marking