ICAP CAF case studies
ICAP CAF · Put your knowledge to work in context.
The Certificate in Accounting and Finance (CAF) is a stage of the Institute of Chartered Accountants of Pakistan (ICAP) chartered accountancy qualification, sitting within the Institute's Education Scheme 2021 between the Pre-Requisite Competencies (PRC) stage and the Certified Finance and Accounting Professional (CFAP) stage, with the Multi-Subject Assessment (MSA) also appearing in the same scheme. CAF is aimed at students who have completed the entry requirements for the CA qualification and are building the technical foundation of the profession. The ICAP CAF case studies are 5 cases and about 4,087 words.
1Vista Chemicals: normal capacity, unabsorbed overhead and NRV
Vista Chemicals Limited produces a single industrial solvent in a plant designed for 120,000 litres a year. In the year ended 30 June 2025 it produced 90,000 litres.
679 words, about 3 min2Hamza Textiles: salary versus dividend as a profit-extraction route
Hamza Textiles (Pvt) Limited is owned equally by two shareholder-directors. Each already draws a salary of Rs 6 million a year, taxed at a 35% marginal rate in their hands.
811 words, about 4 min3Faisal Fabrics: special order when the bottleneck is machine hours
Faisal Fabrics runs three products on a single machine which is the binding constraint. Budgeted capacity is 40,000 machine hours a year, of which firm demand from existing customers uses 34,000 hours.
636 words, about 3 min4Sitara Industries: dividend out of a revaluation surplus
Sitara Industries Limited has accumulated realised profits of Rs 40 million. In 2023 its factory land was revalued, creating a revaluation surplus of Rs 120 million; the land has not been sold and prices in the area have risen since.
955 words, about 5 min5Karvan Traders: materiality, a related-party fraud and a scope limitation
The audit of Karvan Traders Limited for the year ended 30 June 2025 is at clearance stage. Overall materiality is Rs 50 million (1% of revenue of Rs 5 billion) and performance materiality is Rs 35 million.
1,006 words, about 5 min