ICAN CAP-II study guide
ICAN CAP-II · Work through your exam, one topic at a time.
CAP-II is the second professional level of the chartered accountancy qualification awarded by the Institute of Chartered Accountants of Nigeria (ICAN). It sits between the foundation and final professional stages and is aimed at candidates who already hold credit at the earlier level and are building toward full membership. The ICAN CAP-II study guide has 10 sections and about 2,882 words.
01Financial Accounting and Reporting: IFRS Application and Corporate Reporting
Financial Accounting and Reporting at CAP-II tests your ability to apply IFRS as adopted in Nigeria to the preparation, analysis and interpretation of corporate financial statements. Expect consolidation, revenue, leases, financial instruments, deferred tax, impairments, provisions, earnings per share and cash flows, with attention to disclosure and ethical presentation.
348 words, about 2 min02Audit and Assurance: Risk-Based ISA Engagements
Audit and Assurance tests risk-based ISA audits in Nigeria: planning, risk assessment, evidence, completion, reporting and quality management under ISQM 1 and ISQM 2. FRC oversight and ICAN ethical requirements are examinable context.
343 words, about 2 min03Taxation: Nigerian Tax Computations and Administration
Taxation at CAP-II covers the Nigerian tax system: companies income tax, personal income tax, VAT, capital gains tax, withholding tax, stamp duty and petroleum profits tax, plus administration by FIRS and state revenue authorities. CIT applies at 30% for large companies, 20% for medium companies and 0% for small companies within the statutory turnover and fixed-asset thresholds.
326 words, about 2 min04Corporate Strategy: Analysis, Choice and Implementation
Corporate Strategy tests analysis, choice and implementation: how organisations create sustainable advantage in dynamic environments. External analysis: PESTLE and Porter's five forces (rivalry, new entrants, substitutes, buyer power, supplier power).
255 words, about 1 min05Governance and Ethics: Board Accountability and Professional Conduct
Governance and Ethics examines board effectiveness, accountability, stakeholder protection and professional conduct under the Nigerian Code of Corporate Governance 2018, CAMA 2020 and the IESBA Code. The board provides entrepreneurial leadership within a framework of prudent controls; it sets strategy, oversees management and reports to shareholders.
271 words, about 1 min06Management Accounting and Decision Making: Relevant Costs and Scarce Resources
Management Accounting and Decision Making tests cost behaviour, relevant costing and performance decisions rather than historical record-keeping alone. Separate relevant costs (future, incremental, cash) from sunk costs and allocated fixed overhead.
265 words, about 1 min07Financial Management: Investment, Financing and Cost of Capital
Financial Management tests financing, investment and working-capital decisions, with valuation and risk as the connecting ideas. NPV discounts incremental after-tax cash flows at the project or company cost of capital; accept positive NPV.
274 words, about 1 min08Business Law and Regulation: Contracts, Companies and Dispute Resolution
Business Law and Regulation covers the legal framework for commercial transactions and corporate activity in Nigeria, including contract, agency, company law, insolvency, employment and sector regulation. A valid contract needs offer, acceptance, consideration, intention to create legal relations and capacity.
273 words, about 1 min09Information Technology and Data Analytics: Controls, CAATs and Evidence
Information Technology and Data Analytics tests how auditors and managers obtain assurance from systems and use data to improve evidence quality. IT general controls cover access, change management, IT operations and backup.
267 words, about 1 min10Public Sector and Not-for-Profit Accounting: IPSAS and Public Financial Management
Public Sector and Not-for-Profit Accounting applies IPSAS and public financial management rules to governments, agencies and NGOs, where accountability for public funds is central. IPSAS accrual accounting recognises assets, liabilities, revenue and expenses when the definition and recognition criteria are met, not merely when cash moves.
260 words, about 1 min