ICAP CFAP study guide
ICAP CFAP · Work through your exam, one topic at a time.
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 study guide has 5 sections and about 1,668 words.
01Financial Reporting and Assurance
Financial reporting questions test your command of the conceptual framework and the movement from trial balance to published statements. Know the qualitative characteristics (relevance, faithful representation, comparability, verifiability, timeliness, understandability), the elements (assets, liabilities, equity, income, expenses), and the recognition and measurement bases.
269 words, about 1 min02Corporate Finance and Financial Management
Corporate finance questions test the time value of money, capital budgeting, cost of capital and financing decisions. You must be fluent with present and future value, annuities and perpetuities, net present value (NPV), internal rate of return (IRR), payback and discounted payback, and the profitability index.
280 words, about 1 min03Taxation
Taxation questions test your understanding of the tax base, taxable income computation, allowable deductions, capital allowances and the difference between accounting profit and taxable profit. Know how to adjust profit before tax for non-deductible expenses, non-taxable income, and timing differences such as depreciation versus capital allowances.
284 words, about 1 min04Business Management and Strategy
Strategy questions test frameworks for analysing the environment, the organisation and its choices. Know PESTLE for the macro environment, Porter's Five Forces for industry attractiveness, SWOT for internal and external fit, and the value chain for competitive advantage.
276 words, about 1 min05Audit
Audit questions test the stages of an engagement: acceptance and continuance, planning, risk assessment, evidence gathering, evaluation and reporting. Understand audit risk as the combination of inherent risk, control risk and detection risk, and how the auditor responds by adjusting the nature, timing and extent of procedures.
559 words, about 3 min