ICAP CFAP study materials
ICAP CFAP study resources

ICAP CFAP case studies

ICAP CFAP · Put your knowledge to work in context.

CFAP - the Certified Finance and Accounting Professional stage - is the advanced level of the Chartered Accountancy qualification offered by the Institute of Chartered Accountants of Pakistan (ICAP). ICAP describes itself as the statutory regulator of the accountancy profession, established by the Government of Pakistan to regulate and advance the profession in the public interest. The ICAP CFAP case studies are 6 cases and about 4,310 words.

1

Revenue Cut-off Under a Channel-Stuffing Pressure

You are the financial controller of Ravi Foods Ltd, a listed snack manufacturer with a 31 March year-end. On 27 March, the sales director informs you that a distributor has agreed to take an extra Rs 40 million of stock, but only if Ravi Foods grants extended credit of 180 days and a right to return any unsold stock within 90 days.

793 words, about 4 min
2

WACC and Investment Appraisal Under Currency Risk

Kestrel Engineering plc is evaluating a Rs 600 million expansion into a new export market. The project has a five-year life and is expected to generate annual free cash flows of Rs 150 million in nominal terms.

708 words, about 4 min
3

Tax Planning for a Cross-Border Service Fee

Meridian Consulting Ltd, a UK-resident company, provides management services to its wholly owned subsidiary in Country X. In the year to 31 March, Meridian charged the subsidiary £2 million for services.

746 words, about 4 min
4

Post-Acquisition Integration and Cultural Resistance

Horizon Group acquired a 70% stake in a family-owned logistics firm, Speedline, for Rs 1.2 billion. Speedline's founder, Mr.

669 words, about 3 min
5

Auditor Independence When a Client Offers a Consulting Engagement

You are the engagement partner on the audit of Talon Industries, a listed company with a 31 December year-end. The audit fee is Rs 8 million.

728 words, about 4 min
6

Whistleblowing and Board Response to a Fraud Allegation

An anonymous letter is sent to the chair of the audit committee of Delta Holdings, a listed company. It alleges that the regional sales director has been inflating revenue by recognising sales to a related party, 'Nova Trading', which is owned by his brother-in-law.

666 words, about 3 min