KASNEB CPA Intermediate study guide
KASNEB CPA Intermediate · Work through your exam, one topic at a time.
The KASNEB Certified Public Accountants (CPA) qualification is a Kenyan professional accountancy credential awarded by the Kenya Accountants & Secretaries National Examinations Board, a State Corporation established in 1969 under The National Treasury and Economic Planning. KASNEB describes the qualification as equipping learners with the technical knowledge, analytical skills and professional values needed to work as accountants, auditors, finance managers, tax consultants or business advisors in the public and private sectors. The KASNEB CPA Intermediate study guide has 6 sections and about 1,888 words.
01Company Law: Formation, Capital and Corporate Governance
Company law questions test whether you can apply the Companies Act framework to a fact pattern. Begin with the consequences of incorporation: separate legal personality, limited liability, perpetual succession and the company's capacity to own property and sue in its own name.
330 words, about 2 min02Financial Management: Investment Appraisal and Cost of Capital
Financial management questions reward a disciplined approach: identify the decision, choose the technique, and interpret the result. Core areas are investment appraisal (payback, discounted payback, NPV, IRR, profitability index), cost of capital (cost of equity via dividend growth or CAPM, cost of debt after tax, WACC), working capital management , and risk and return .
323 words, about 2 min03Financial Reporting and Analysis: Standards and Ratio Interpretation
Financial reporting questions test both recognition and measurement under IFRS and the ability to interpret the resulting statements. You must be comfortable with revenue recognition (performance obligations, transaction price, allocation), leases (right-of-use asset and lease liability), property, plant and equipment (cost versus revaluation, depreciation, impairment), inventory (lower of cost and net realisable value), and financial instruments (amortised cost versus fair value).
296 words, about 1 min04Auditing and Assurance: Risk, Evidence and Opinions
Audit questions follow the logical flow of the engagement: acceptance and engagement (client integrity, independence, engagement letter), planning (understanding the entity, materiality, risk assessment), evidence gathering , evaluation of misstatements , and reporting . Understand the audit risk model : audit risk = inherent risk × control risk × detection risk.
297 words, about 1 min05Management Accounting: Costing, Budgeting and Decision Making
Management accounting questions test your ability to produce and use cost information for planning, control and decisions. Master cost classification (fixed, variable, semi-variable, direct, indirect), overhead absorption (predetermined rates, over/under absorption), marginal versus absorption costing , and process costing (equivalent units, normal loss, abnormal gain).
312 words, about 2 min06Public Finance and Taxation: Principles, Incidence and Computation
This domain combines public finance theory with tax computation and administration . On the theory side, understand the functions of government (allocation, distribution, stabilisation), sources of public revenue, principles of a good tax system (equity, certainty, convenience, economy, neutrality), and the concepts of tax incidence (who bears the burden) and deadweight loss .
330 words, about 2 min