ITC Entrance Exam case studies
ITC Entrance Exam · Put your knowledge to work in context.
The ITC Entrance Exam is the gateway assessment for candidates seeking entry into the Institute of Chartered Accountants of Sri Lanka's (CA Sri Lanka) chartered accountancy pathway - specifically the ITC (Information Technology and Communication) stage that sits at the start of the professional programme. It is designed for school leavers, undergraduates and career-changers who want to demonstrate the foundational business knowledge needed before progressing to the more advanced levels of the CA qualification. The ITC Entrance Exam case studies are 5 cases and about 4,026 words.
1Revenue recognition for a smart-meter installation contract
GridSense Ltd, a manufacturer, signs a contract with a municipality on 1 March 20X5 to supply 500 smart meters, install them, and provide remote monitoring for two years. The total contract price is R4,200,000, payable 30% on signing, 40% on delivery, and 30% after installation.
777 words, about 4 min2Special order with a binding machine-hour constraint
Kalahari Components (Pty) Ltd makes two components, Alpha and Beta, using the same milling machine. Monthly capacity is 10,000 machine hours.
818 words, about 4 min3Deductibility, transfer pricing, and a tax penalty
Dune Logistics (Pty) Ltd, a resident company with a 31 December year-end, reported accounting profit before tax of R8,000,000 for 20X5. The following items are included in that profit: (i) a fine of R250,000 imposed by the competition authority for anti-competitive behaviour; (ii) a donation of R600,000 to a local school for a computer laboratory, with a valid receipt from a qualifying public benefit organisation; (iii) a provision for expected warranty claims of R400,000, of which R150,000 was paid in cash during the year; (iv) interest paid of R1,260,000 on a loan from its 100% foreign parent.
777 words, about 4 min4Fraud at a manufacturing client and the auditor's response
You are the engagement partner on the audit of MetalWorks Ltd for the year ended 31 December 20X5. Materiality is R500,000.
834 words, about 4 min5Capital budgeting for a solar plant with a capital rationing limit
SunHarvest Ltd is evaluating a five-year project to install a solar rooftop system at its factory. The initial cost is R12,000,000, depreciated straight-line to zero over five years for tax purposes.
820 words, about 4 min