ICAEW Assurance case studies
ICAEW Assurance · Put your knowledge to work in context.
Assurance is one of the technical modules in the ICAEW Chartered Accountant qualification, the ACA, which ICAEW describes as "one of the most advanced learning and professional development programmes available" and as valued "around the world in business, practice and the public sector." The module sits within the Audit and Assurance area of ICAEW's technical resources, which the Institute presents as practical guidance arranged by theme, including ISA specific material and sector specific assurance. Candidates typically take Assurance after the earlier certificate-level modules, because the syllabus assumes comfort with double-entry bookkeeping, financial statements and basic audit concepts. The ICAEW Assurance case studies are 5 cases and about 3,407 words.
1Charity materiality and restricted fund misstatements
You are the audit senior on Hope Learning Trust, a UK charity with gross income of £12.4m, expenditure of £12.1m and net assets of £8.2m. Of the net assets, £6.5m is restricted: £7.1m of income is a government grant for after-school programmes, and the grant agreement requires unused grant to be repaid.
765 words, about 4 min2Group audit reliance on an overseas component auditor
You are the group audit manager for UK-based Meridian plc, which prepares consolidated IFRS financial statements. Its German subsidiary, Rheinwerk GmbH, contributes 45% of group revenue, 38% of group assets and is a significant component.
660 words, about 3 min3Going concern, covenant breach and post year-end forbearance
You are the audit senior on the audit of Calderside Engineering Ltd, a UK manufacturer with revenue £38m and a bank loan of £10m. The loan covenants require interest cover of at least 3.0x and net debt/EBITDA below 2.5x.
665 words, about 3 min4Revenue sampling, cut-off and support revenue recognition
You are auditing the revenue of Brightline Software Ltd, a UK company with revenue of £24m for the year ended 31 December 20X5. Revenue comprises £14m of perpetual licence sales and £10m of support and maintenance.
663 words, about 3 min5Ethical threats from non-audit services, fee dependence and a family relationship
You are the ethics partner at a mid-tier UK audit firm. The firm audits Widget Group Ltd, a private UK group with revenue £120m.
654 words, about 3 min