Financial accounting and reporting
Professional accounting standards
This ensures that the organisation conducts operations and fulfils its statutory and regulatory obligations according to professional accounting standards (domestic and/or international as applicable per business model).
Foundational
- Demonstrate awareness and knowledge of the professional accounting standards
- Apply those principles to accurately record financial transactions and maintain appropriate supporting documentation
F1A1
Explain the need for and the process of regulating the financial reporting information of incorporated entities.
F1B1
Explain the main elements of and key principles underpinning financial statements prepared in accordance with international financial reporting standards.
E1B1
Discuss the purpose of the finance function and its relationships with other parts of the organisation.
Intermediate
- Review the accuracy and legitimacy of recorded financial transactions and related reports
- Assist in developing and implementing new accounting and reporting pronouncements and determine the resulting impact
- Recommend appropriate accounting and reporting treatment for certain transactions
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
Advanced
- Demonstrate advanced level understanding of accounting standards
- Develop, manage and execute plans for implementation of new or updated accounting and reporting pronouncements
- Identify potential issues associated with unusual or complex transactions, review and approve the appropriate treatment
F2C1
Evaluate the financial performance, financial position and financial adaptability of an incorporated entity.
F3A1
Evaluate strategic financial and non-financial objectives of different types of entities.
Transactional Accounting and Closing Processes
This is the process of recording, adjusting and reconciling financial transactions and events according to professional accounting standards.
Foundational
- Perform all activities within the receivables process; calculate non-complex provisions using appropriate methods; identify risks of bad debts
- Perform all activities within the payables process
- Perform month end close activities and provide accurate and timely financial submissions
- Reconcile sub-ledgers to general ledger and perform other related account reconciliations; evaluate accounts for legitimacy and balance substantiation
- Understand the different components and interdependencies of the organisation’s chart of accounts
F1B2
Produce the primary financial statements of an individual entity incorporating accounting transactions and adjustments, ensuring the ethical application of relevant international financial reporting standards.
Intermediate
- Oversee the receivables process; identify ways to mitigate debt related risks; calculate the impact of debtors on financial ratios; calculate non-routine provisions
- Oversee the payables process; calculate the impact of creditors on financial ratios
- Oversee all month-end close processes and activities
- Reconcile complex accounts involving inconsistent data from non-integrated systems
- Define new general ledger accounts and ensure proper maintenance of the organisation’s chart of accounts
F2C1
Evaluate the financial performance, financial position and financial adaptability of an incorporated entity.
Advanced
- Resolve exceptional situations in the receivables process, calculate complex provisions; advise on debtor risk mitigation methods
- Manage centralised, complex accounts payable processes; advise on implications of creditor profile on the business performance as well as alternative processes related to payables
- Simplify, improve and harmonise existing and complex processes and systems for account reconciliations and month-end closing
- Define and design effective charts of accounts
- Ensure effective accounting processes and implement changes consistent with best practices
F2C1
Evaluate the financial performance, financial position and financial adaptability of an incorporated entity.
Financial Reporting and Compliance
This is the process of creating internal and external financial reports for both individual entities or groups using appropriate accounting and/or regulatory requirements.
Foundational
- Understand and describe the main elements of financial statements and reports
- Understand general compliance requirements and provide accurate and timely financial submissions
F1B1
Explain the main elements of and key principles underpinning financial statements prepared in accordance with international financial reporting standards.
F1B2
Produce the primary financial statements of an individual entity incorporating accounting transactions and adjustments, ensuring the ethical application of relevant international financial reporting standards.
Intermediate
- Prepare financial statements and reports and ensure accuracy, completeness, and compliance with reporting requirements
- Identify potential compliance issues and recommend solutions to upper management; ensure timely completion of financial reporting requirements
F1B2
Produce the primary financial statements of an individual entity incorporating accounting transactions and adjustments, ensuring the ethical application of relevant international financial reporting standards.
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
Advanced
- Ensure integrity, accuracy and completeness of financial statements; discuss the need for and nature of appropriate disclosures
- Implement efficient process changes consistent with best practices; create a corporate culture of compliance and shared accountability
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
Expert
- Advise on the ethical selection and adaption of relevant accounting policies and estimates
- Ensure full organizational compliance
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
Cost Accounting and Management
Cost Accounting
This is the process of recording costs with associated drivers in the production, analysis and use of information for decision-making in the organisation.
Foundational
- Understand and apply basic concepts of cost accounting to support entities’ operational and financial requirements
- Demonstrate knowledge to effectively identify and update product costs as necessary
P1A1
Discuss costing methods and their results.
Intermediate
- Break down key business processes, allocate costs and income on an agreed standardized basis and identify performance issues
- Apply various costing methods such as standard, marginal and absorption methods and explain corresponding advantages and disadvantages
- Interpret material, labour, variable/fixed overhead and associated variances
P1A1
Discuss costing methods and their results.
P1C2
Analyse short-term pricing and product decisions.
P1A2
Discuss the role of quality costing.
Advanced
- Implement and apply advanced costing techniques and discern whether costing techniques used by the organisation are appropriate
- Advise on role and classification of quality costing, including prevention, appraisal and internal/external failure costs
- Recommend on the creation of new and select products and services with corresponding selling price with impact on the business
P1A2
Discuss the role of quality costing.
P1A3
Explain the role of environmental costing.
Expert
- Advise on the role of sustainability and environmental cost accounting and its contribution to improved environmental, social and financial business performance
- Approve offering on new products and services and advise on alternative pricing strategies with financial consequences
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
Cost Management
This is the process of analyzing, planning and managing costs, including product pricing and supply chain analysis, to support implementation of organisational strategies.
Foundational
- Demonstrate basic understanding of techniques used to analyse and manage costs
P1A1
Discuss costing methods and their results.
Intermediate
- Apply various techniques such as target costing, value analysis, life cycle and discuss implications
- Prepare analysis and reports that enable the business management to effectively challenge costs and inform decision-making
- Participate in waste elimination efforts with the business to understand key drivers and cost reduction opportunities
P2A1
Evaluate techniques for analysing and managing costs for competitive advantage.
P2B1
Discuss decision making in responsibility centres.
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
Advanced
- Manage cost challenge processes and work closely with the business to ensure key performance indicators are measuring the right metrics
- Discuss and recommend transfer pricing systems and evaluate effect of transfer prices
- Provide leadership and coaching to team members on cost control and reporting issues
E2D2
Discuss the concepts involved in managing projects.
P3B1
Evaluate the tools and processes required for strategy implementation.
Expert
- Advise on strategic cost transformation including cutting waste while maintaining or enhancing value creation
- Lead business on strategy, design and implementation of work
P3B1
Evaluate the tools and processes required for strategy implementation.
Business Planning
Planning, Forecasting And Budgeting
This is the process of evaluating and quantifying a strategically aligned plan, for a defined period of time, which may include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows as well as non-financial metrics.
Foundational
- Contribute to business planning, budgeting and expenditure forecasting processes
- Apply basic modelling, forecasting and planning techniques to develop cost forecasts with cost drivers identified and explained
P1B1
Explain the purposes of forecasts, plans and budgets.
P1B3
Discuss budgets based on forecasts.
E1B2
Explain how the finance function supports the organisation’s strategies and operations.
Intermediate
- Lead planning processes, including setting targets, communicating assumptions, coordinating budget preparation, challenging submissions and seeking synergies upon consolidation
- Provide the business with relevant financial support to enable effective planning while applying moderate budgeting and forecasting techniques
- Provide reasoned advice on modelling, planning and forecasting with reference to cost, time and quality which might include an understanding of some aspects of the organisation strategic direction
P1B1
Explain the purposes of forecasts, plans and budgets
P1B2
Prepare forecasts of financial results.
P1B4
Discuss the principles that underlie the use of budgets for control.
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
P2C1
Evaluate information to support project appraisal.
Advanced
- Translate business strategy into financial targets and tactical plans and support execution in a controlled risk and reward-based manner
- Interpret and make effective management decisions using benchmarking, trends, and other planning and forecasting methods; develop and implement improvements to the planning processes
- Establish and ensure effective and consistent modelling, planning and forecasting processes across business unit(s) and identify and implement best practices in these processes
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
P3C3
Evaluate the purposes and process of audit in the context of internal control systems.
E3D1
Evaluate the tools and techniques of strategy implementation.
Capital Expenditure And Investment Evaluation
This is the process of assessing investments based on alignment with strategy, affordability, acceptable returns and prioritisation of options.
Foundational
- Apply investment appraisal techniques to investment appraisals
- Perform post-investment reviews
P2C1
Evaluate information to support project appraisal.
Intermediate
- Communicate and apply investment decision making criteria
P2C1
Evaluate information to support project appraisal.
Advanced
- Evaluate and appraise large and complex investments, capital expenditures and financing projects
- Review investment appraisals and provide guidance and recommendations
P2C1
Evaluate information to support project appraisal.
F3A2
Evaluate strategic financial management policy decisions.
P3E1
Evaluate the risks arising from changes in the environment for capital investment appraisal.
E3B2
Evaluate tools and techniques used in strategy formulation.
F3A2
Evaluate strategic financial management policy decisions.
Expert
- Approve investment proposals
- Anticipate future needs of the organisation including portfolio actions
P3E1
Evaluate the risks arising from changes in the environment for capital investment appraisal.
Management Reporting And Analysis
Financial Analysis
This is the process of analysing the financial statements and data to provide insights about the financial performance and position of the organisation over time and in comparison with others.
Foundational
- Use financial ratio analysis to evaluate the organisation’s performance, its financial state, the effectiveness of its use of working capital and its creditworthiness
- Apply discounted cash flow (DCF) techniques to evaluate commercial and financial decisions; determine and challenge the assumptions that drive commercial decisions
- Prepare profit and loss, economic value added and cash flow analysis to enable decision-making; evaluate changes in account balances and identify items requiring escalation
F1C1
Describe the sources of short-term finance and cash investment.
F1C2
Evaluate the working capital position of an entity.
F1C3
Analyse the short-term cash position of an entity.
P2C1
Evaluate information to support project appraisal.
Intermediate
- Apply common quantitative techniques such as discounted cash flow (DCF) and value at risk (VAR) to model the economic, fiscal and accounting impact of typical commercial activities or standard financial structures and instruments
- Provide analysis to support decision-making, including presenting economic outcomes, identifying the key value drivers, benefits, sensitivities and risks, accounting and fiscal implications
- Prepare and analyse problems using sensitivity analysis and other techniques; review variance analyses and account reconciliations, and identify significant items requiring the attention of higher-level management
P1D1
Analyse information to assess risk and its impact on short-term decisions.
P2C1
Evaluate information to support project appraisal.
P2D1
Analyse information to assess its impact on long-term decisions.
P3D1
Evaluate financial risks facing an organisation.
Advanced
- Review outputs of financial and cash flow analyses to develop views and guide management; resolve significant reporting variances or recommend corrective actions where needed
- Approve and present financial statements and analysis to executive management and provide recommendations for improvements
- Design reporting and monitoring regimes to track performance against corporate objectives
- Apply sophisticated quantitative analysis to identify the business, commercial and financial impact on the organisation of different courses of action; advise on actions or options to improve the modelled outcome
F2C1
Evaluate the financial performance, financial position and financial adaptability of an incorporated entity.
P2B1
Discuss decision making in responsibility centres.
E3D1
Evaluate the tools and techniques of strategy implementation.
P3D1
Evaluate financial risks facing an organisation.
Expert
- Interpret and translate financial statements to drive strategic and successful business decisions and growth; provide guidance to the business using best practice in cash flow analysis
- Communicate financial results to chief executive officer, board of directors and external stakeholders
- Assess cutting-edge developments in quantitative analysis and incorporate relevant developments into the organisation’s methodologies
- Set standards for business analysis to support strategic direction and comparison; develop and implement finance solutions to complex and high value commercial decisions including all aspects of non-technical risk and business delivery
P3B1
Evaluate the tools and processes required for strategy implementation.
Management Reporting
This is the process of delivering, discussing and reporting on the organisation’s operations and financial conditions (including quality and sustainability reporting, customer profitability).
Foundational
- Extract and deliver straightforward management information reports
- Prepare and provide accurate and timely financial data, where appropriate, for inclusion in the financial control process
E1B2
Explain how the finance function supports the organisation’s strategies and operations.
Intermediate
- Deliver quality management information
- Develop business unit reporting systems for management, project or performance reporting and implement processes to deliver management information according to the reporting cycle
E1C1
Demonstrate the purpose of the technology and information function and its relationships with other parts of the organisation.
E1C2
Explain how information systems support the organisation’s strategies and operations.
F2C1
Evaluate the financial performance, financial position and financial adaptability of an incorporated entity.
Advanced
- Assess, generate and implement ideas to optimise identification and delivery of management information to multi-functional teams
- Lead the development of functional reporting systems, for management, project or performance reporting
- Challenge and make fundamental changes to address root causes of management information and reporting quality/correctness issues
E3E1
Evaluate the information systems requirements for successful strategic implementation.
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
E3D1
Evaluate the tools and techniques of strategy implementation.
Performance Management
This is the process of measuring and monitoring performance to ensure organisational and personal goals are consistently met.
Foundational
- Interpret and provide basic analysis of management information and link to business unit strategy and operational performance
- Analyse business results, identify learning points and help to communicate them through the organisation
- Distinguish between internal and external factors that have an impact on performance and analyse market and competitor behaviour
P1C1
Explain concepts of cost and revenue relevant to pricing and product decisions.
P1C2
Analyse short-term pricing and product decisions.
E1B1
Discuss the purpose of the finance function and its relationships with other parts of the organisation.
E1B2
Explain how the finance function supports the organisation’s strategies and operations.
E1E2
Apply tools and techniques to formulate the organisation’s marketing strategies, including the collection, analysis and application of Big Data.
P1D1
Analyse information to assess risk and its impact on short-term decisions.
Intermediate
- Create proposals for new transactions or ways of doing business based upon a sound business understanding
- Set-up, prepare and lead appraisals that enable effective monitoring as well as improvement of business performance
- Assist line management in preparing action plans for identified areas of improvement; own and drive the use of key performance indicators and accurate, timely and forward-looking management information
E1B2
Explain how the finance function supports the organisation’s strategies and operations.
E2B1
Discuss the concepts associated with managing through people.
E2B2
Discuss the hard and soft aspects of people and organisational performance.
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
Advanced
- Own, select and use financial and non-financial key performance indicators in business appraisal; interpret trends from financial reports, extrapolate and evaluate risk in complex scenarios
- Interpret and analyse management information, in the context of the external environment and business objectives, to advise decision-makers
- Identify and manage non-technical risk arising during the delivery of products or services in the pursuit of business opportunities
- Evaluate the impact that key portfolio decisions will have on costs and other key performance indicators and integrate impacts in on-going performance management and appraisal
E2A2
Analyse the relationship between different aspects of the global business environment.
E3D1
Evaluate the tools and techniques of strategy implementation.
P2B2
discuss issues arising from the use of performance measures and budgets for control.
Variance Analysis
Foundational
- Review management reports, including identification and awareness of the key causes of business variances
P1A1
Discuss costing methods and their results.
P1B5
Analyse performance using budgets, recognising alternative approaches and sensitivity to variable factors.
E1B1
Discuss the purpose of the finance function and its relationships with other parts of the organisation.
Intermediate
- Interpret financial reports and accounts, identify and evaluate risks and opportunities, supervise while applying appropriate mitigation where necessary
- Interpret the content of management reports and identify key causes of business variances
P1A1
Discuss costing methods and their results.
Advanced
- Provide advice and guidance on the content of business performance reports and the causes of variances
- Design reporting structures and assess achievement against corporate goals and objectives
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
Benchmarking
Foundational
- Demonstrate basic understanding in distinguishing between internal and external factors that impact on performance
P1B2
Prepare forecasts of financial results.
Intermediate
- Benchmark business performance internally and externally; deliver benchmark management information to specific needs to allow decision-making that pushes performance boundaries
P2B2
Discuss issues arising from the use of performance measures and budgets for control.
P3C3
Evaluate the purposes and process of audit in the context of internal control systems.
Advanced
E2A1
Discuss developments in strategic management.
E2A2
Analyse the relationship between different aspects of the global business environment.
Corporate Finance And Treasury Management
Cash Management
This is the process of determining how to balance the organisation’s cash needs; it aims to optimise cash balances, while managing customer, supplier and investor needs to determine the optimal financing of working capital.
Foundational
- Identify funding needs, assess credit rating using standard credit models and implement standard corporate funding solutions where appropriate
- Execute standard cash management solutions
F1C1
Describe the sources of short-term finance and cash investment.
F1C2
Evaluate the working capital position of an entity.
F1C3
Analyse the short-term cash position of an entity.
Intermediate
- Negotiate, implement and provide ongoing first line support of alternative cash management solutions available in the market
- Complete corporate reporting for foreign currency cash flows; execute a forward contract
F2C1
Evaluate the financial performance, financial position and financial adaptability of an incorporated entity.
P3D2
Evaluate alternative risk management tools
Advanced
- Design, negotiate, implement and execute cash management solutions to complex or unusual business requirements
- Manage standard cash management solutions contracts; monitor corporate reporting on foreign currency cash flows
P3D1
evaluate financial risks facing an organisation.
F3A2
Evaluate strategic financial management policy decisions.
F3C2
Evaluate the value of entities.
Mergers And Acquisitions
This is the process of consolidating with and acquiring other organisations.
Foundational
- Perform limited analysis of mergers, acquisitions and divestitures prospects
- Participate in due diligence assignments
F1B3
produce the consolidated statement of financial position and consolidated statement of comprehensive income, ensuring the ethical application of relevant international financial reporting standards.
Intermediate
- Assess the attractiveness of mergers, acquisitions and divestitures versus organic growth options for the organisation
- Provide independent perspective and analysis of valuation, deal economics, deal structure, counterparty motivations and overall financial and structural aspects of mergers, acquisitions and divestitures transactions
- Manage the due diligence process, including interactions with the deal negotiating team, from scope definition to interpretation of findings
F2B2
Demonstrate the impact on the preparation of the consolidated financial statements of certain complex group scenarios.
F3C1
Evaluate opportunities for acquisition, merger and divestment.
Advanced
- Analyse and communicate the impact of mergers, acquisitions and divestitures on business strategy and portfolio management and compare to organic growth options
- Act as finance lead for major multi-disciplinary mergers, acquisitions and divestitures transactions and lead post implementation reviews of the selected business transactions
E3B1
Evaluate the process of strategy formulation.
F2B2
Demonstrate the impact on the preparation of the consolidated financial statements of certain complex group scenarios.
F3B1
Evaluate the financing requirements of an entity and recommend a strategy for meeting those requirements.
F3C1
Evaluate opportunities for acquisition, merger and divestment.
F3A2
Evaluate strategic financial management policy decisions.
F3C2
Evaluate the value of entities.
Expert
- Act as finance lead for the most significant and complex mergers, acquisitions and divestitures transactions
- Assess cutting edge developments in mergers, acquisitions and divestitures policies and processes and incorporate relevant developments into the organisation’s strategy
F3C1
Evaluate opportunities for acquisition, merger and divestment.
F3C2
Evaluate the value of entities.
F3C3
Evaluate pricing issues and post-transaction issues.
Treasury Policies And Treasury Risk Management
This is the process of implementing policies, evaluating and managing risks associated with the organisation’s investment, funding activities, collections and disbursements.
Foundational
- Review and understand basic corporate treasury policies pertaining to your business unit; able to implement standard treasury risk management solutions where appropriate
- Assess credit risk of counterparties using credit models; develop basic short and medium term cash flow forecasts and advise on appropriate action
F1C2
Evaluate the working capital position of an entity.
Intermediate
- Analyse the corporate treasury policies pertaining to areas of the business
- Evaluate common treasury exposures and financial instruments, including the financial mathematics underpinning their pricing
F2A1
Discuss types and sources of long-term finance for an incorporated entity.
F2A2
Calculate a weighted average cost of capital (WACC) for an incorporated entity.
Advanced
- Advise business units in the implementation, execution and analysis of corporate treasury policies; assess key operational treasury risks, design and implement risk-based mitigation
- Negotiate, implement and provide on-going first-line support to alternative or non-standard risk management solutions where appropriate
F3A1
Evaluate strategic financial and non-financial objectives of different types of entities.
F3B1
Evaluate the financing requirements of an entity and recommend a strategy for meeting those requirements.
F3C3
Evaluate pricing issues and post-transaction issues.
P3B1
Evaluate the tools and processes required for strategy implementation.
Expert
- Lead and provide strategic oversight on the implementation and execution of corporate treasury policies for the organisation
- Establish and lead culture of risk management by providing executive oversight in policies, practices and reporting
E3D1
Evaluate the tools and techniques of strategy implementation.
Business Valuation
This is the process of estimating the economic value of a business unit or an organisation.
Intermediate
- Able to analyse, interpret and display knowledge within a process of due diligence
F3C2
Evaluate the value of entities.
Advanced
- Display solid knowledge in analysing and interpreting valuation decisions
F3C2
Evaluate the value of entities.
Expert
- Exhibit experience and advanced analytical ability to strategically determine effectiveness and appropriateness of valuation decisions
F3C2
Evaluate the value of entities.
Corporate Funding
This is the process of acquiring or raising funds to carry out organisational goals and objectives.
Foundational
- Understand basic corporate funding arrangements
F1C1
Describe the sources of short-term finance and cash investment.
F2A1
Discuss types and sources of long-term finance for an incorporated entity.
Intermediate
- Support funding arrangements and coordinate debt ratings process
F2A1
Discuss types and sources of long-term finance for an incorporated entity.
Advanced
- Apply corporate finance and funding techniques from first principles to complex and unusual situations
- Negotiate funding arrangements including corporate credit facilities, public and private financing arrangements and minimise total cost of funds
F3A2
evaluate strategic financial management policy decisions.
F3B1
Evaluate the financing requirements of an entity and recommend a strategy for meeting those requirements.
Expert
- Oversee banking relationships and maintain external communication with rating agencies and investment banks
- Evaluate and recommend optimal capital structure; develop and challenge shareholder models and link to economic models
F3A1
Evaluate strategic financial and non-financial objectives of different types of entities.
F3A2
Evaluate strategic financial management policy decisions.
F3B1
Evaluate the financing requirements of an entity and recommend a strategy for meeting those requirements.
F3B2
Evaluate dividend policies for an incorporated entity that meet the needs and expectations of shareholders.
Risk Management And Internal Control
Risk Management Policies And Procedures
This is the process of understanding and applying organisational policies/procedures to manage and control both financial and non financial risks to which the organisation might be exposed.
Foundational
- Obtain basic understanding of the application of the organisation’s risk management policies
P1D1
Analyse information to assess risk and its impact on short-term decisions.
Intermediate
- Apply relevant risk regulations, policies and procedures to non-complex business issues
P2D1
Analyse information to assess its impact on long-term decisions.
Advanced
- Develop innovative approaches to managing significant business risks effectively and efficiently
- Lead implementation, execution and monitoring activities
- Advise on best solutions and foresee the impact of changes in regulations, policies and procedures for non-complex and increasingly complex business issues
P2D2
Discuss management’s responsibilities with regard to risk.
P3A1
Evaluate the types of risk facing an organisation and recommend appropriate responses.
P3A2
Evaluate senior management’s responsibility for the implementation of risk management strategies and internal controls.
P3A3
evaluate the ethical impact of risk.
Expert
- Drive integration and standardisation of risk management processes across the organisation
- Advise on the application of the organisation’s risk management policies, industry best practices and construct organisation guidelines
- Analyse trends in risk management and internal control, evaluate implications, define and implement organisation-wide response
P3A1
Evaluate the types of risk facing an organisation and recommend appropriate responses.
P3A3
Evaluate the ethical impact of risk.
P3C2
Evaluate risk management strategies and internal controls.
P3C3
Evaluate the purposes and process of audit in the context of internal control systems.
P3D2
Evaluate alternative risk management tools.
Risk Identification And Assessment
This is the process of detecting and evaluating risk factors that could adversely affect the implementation of the organisation’s strategy.
Foundational
- Demonstrate basic understanding of the entity’s risk components and organisational controls
P1D1
Analyse information to assess risk and its impact on short-term decisions.
Intermediate
- Participate in risk assessment and identification efforts
- Identify and assess the impact and likelihood of risks to achieving business objectives; monitor changes in risk environment
P2D1
Analyse information to assess its impact on long-term decisions.
P2D2
Discuss management’s responsibilities with regard to risk.
Advanced
P3A1
Evaluate the types of risk facing an organisation and recommend appropriate responses.
Risk Response And Reporting
This is the process of developing and implementing procedures to mitigate identified risks or exposure to risk, and disclosing risk information to both internal and external stakeholders.
Foundational
- Understand effective controls or mitigation options to manage specific risks and refer to experts where appropriate
P1D1
Analyse information to assess risk and its impact on short-term decisions.
Intermediate
- Monitor the effectiveness of actions taken to manage identified risks and intervene as appropriate
- Understand and be able to explain the purpose of risk mitigation measures
- Understand, develop and prepare risk reporting
P1D1
Analyse information to assess risk and its impact on short-term decisions.
P2D2
Discuss management’s responsibilities with regard to risk.
Advanced
- Develop and implement appropriate risk mitigation for significant and unusual risks to which the business is exposed
- Provide advice on business continuity management mechanisms, define appropriate risk responses for reasonably foreseeable emergency scenarios and events
- Design and implement risk reporting systems and communicate to executive management risk processes and results including recommendations for improvement
P3A1
Evaluate the types of risk facing an organisation and recommend appropriate responses.
P3A2
Evaluate senior management’s responsibility for the implementation of risk management strategies and internal controls.
P3B1
Evaluate the tools and processes required for strategy implementation.
Expert
- Develop innovative and strategic approaches to managing significant business risks across the organisation
- Interpret risk reporting and make effective decisions based on high-level understanding and expertise
P3B1
Evaluate the tools and processes required for strategy implementation.
P3B2
Evaluate ethical issues facing an organisation and its employees.
P3B3
Evaluate the risks associated with corporate governance.
Internal Control
This is the process of implementing a control framework to ensure the integrity of operations, financial and accounting practices.
Foundational
- Understand internal control framework and the type of risks to mitigate
- Identify, interpret and apply control guidelines and requirements on specific governance issues
- Actively promote the application of risk management and risk-based approach to internal control
- Operate financial controls, specific user access and/or data integrity controls; perform regular reviews of segregation of duties conflicts
F1A2
Discuss the need for and key principles of corporate governance regulation.
E1B1
Discuss the purpose of the finance function and its relationships with other parts of the organisation.
Intermediate
- Assist in the development and implementation of governance frameworks and fit-for-purpose financial controls
- Establish processes to monitor compliance and effectiveness of financial controls in line with the organisation’s methodology; identify, develop and implement process improvements where needed
- Implement data integrity and user access controls to mitigate risks associated with specific processes
- Assess potential impact of segregation of duties conflicts; identify and implement remediation and/or compensating controls
P2D2
Discuss management’s responsibilities with regard to risk.
P3B3
Evaluate the risks associated with corporate governance.
P3D2
Evaluate alternative risk management tools.
Advanced
- Act as a custodian and maintain the integrity and consistency of business governance and control frameworks
- Significantly improve and monitor risk-based system of financial control; develop solutions for the effectiveness of existing controls to manage the business risks
- Manage, remediate and enforce compliance procedures; define and implement end-to-end user access management processes and standards, covering role design, access provisioning, monitoring and remediation
- Drive the standardisation and integration of risk-based user access management processes by making optimal use of system controls and available IT solutions
P3B3
Evaluate the risks associated with corporate governance.
P3C1
Evaluate control systems for organizational activities and resources.
P3D1
Evaluate financial risks facing an organisation.
P3D2
Evaluate alternative risk management tools.
Expert
- Define fit-for-purpose control frameworks and ensure implementation and full compliance of control policies across the organisation
- Evaluate the implications of changes in regulations and best practices related to governance and financial controls; drive implementation of organisation-wide responses
- Create risk-based governance frameworks to handle complex and unusual business activities and issues
- Lead benchmarking or process improvement initiatives to improve controls
P3C1
Evaluate control systems for organizational activities and resources.
P3D2
Evaluate alternative risk management tools.
Internal Audit
This is the process of examining, analysing and providing an independent and objective opinion on the effectiveness of an organisation’s operations.
Foundational
- Execute audits to provide independent and objective assurance, including preparing audit draft reports and parts of the audit work program by applying corporate internal audit methodology
- Maintain manual of authorities for specific areas; manage specific assurance activities in support of management’s self-assessment; identify required resources to complete an individual audit
E1B1
Discuss the purpose of the finance function and its relationships with other parts of the organisation.
Intermediate
- Prepare the audit work program for each audit; develop efficient and effective assurance activities
- Review assurance plans and audit programs to ensure appropriate coverage
P3C3
Evaluate the purposes and process of audit in the context of internal control systems.
Advanced
- Ensure proposed audit work programs focus on the material risks for the area under audit and is compliant with all relevant internal and external standards
- Address significant, complex and non-routine problems with respect to the audit plan and advise others on how to perform audit assessments
P3C3
Evaluate the purposes and process of audit in the context of internal control systems.
Accounting Information Systems
Information Systems Environment
This is the process of creating an IT environment and understanding the interrelationships between the various components and systems, including the workflow of data through the systems.
Foundational
- Obtain working knowledge of the organisation’s information systems environment (hardware, software and networks)
E1C1
Demonstrate the purpose of the technology and information function and its relationships with other parts of the organisation.
E1C2
Explain how information systems support the organisation’s strategies and operations.
Intermediate
- Monitor the applications and effectiveness of the organisation’s information systems
E1C2
Explain how information systems support the organisation’s strategies and operations.
P2D2
Discuss management’s responsibilities with regard to risk.
Advanced
- Proactively share knowledge across the business to streamline systems
E3E2
Evaluate the opportunities for the use of IT and IS for the organisation, including Big Data.
Expert
- Develop and communicate strategic vision regarding the finance systems and supporting technology
E3E1
Evaluate the information systems requirements for successful strategic implementation.
E3E2
Evaluate the opportunities for the use of IT and IS for the organisation, including Big Data.
P3B1
Evaluate the tools and processes required for strategy implementation.
P3C1
Evaluate control systems for organizational activities and resources.
Accounting Applications
This is the process of defining and structuring the accounting systems in compliance with policies and guidelines.
Foundational
- Demonstrate understanding of the accounting systems and their functionality
E1B2
Explain how the finance function supports the organisation’s strategies and operations
Technology Developments and IT Solutions
This is the process of adopting and integrating new and improved technology solutions to support the organisational objectives.
Foundational
- Understand applicability of new and improved IT developments and solutions
- Display ability to identify potential upgrades, enhancements, new products and their effects
E1C1
Demonstrate the purpose of the technology and information function and its relationships with other parts of the organisation.
E1C2
Explain how information systems support the organisation’s strategies and operations.
Intermediate
- Monitor recent technology developments and recommend implementation where practical
- Champion productive technology solutions to meet business needs
- Participate in the functional development and specifications of new IT solutions in the accounting area
E3E2
Evaluate the opportunities for the use of IT and IS for the organisation, including Big Data.
Advanced
- Lead implementation of technology upgrades/enhancements
- Analyse external IT developments for data integrity and access control management
- Recommend new systems to automate existing processes and ways to re-engineer business process to effectively use new technology
E3E1
Evaluate the information systems requirements for successful strategic implementation.
E3E2
Evaluate the opportunities for the use of IT and IS for the organisation, including Big Data.
Expert
- Develop organisation-wide approach and best practices on the adaption of new technologies and solutions
- Lead and direct the definition and development of new IT solutions to improve the efficiency of the system of financial control
- Partner with IT to ensure that the organisation has the appropriate resources to implement new technology
E3E2
Evaluate the opportunities for the use of IT and IS for the organisation, including Big Data.
Tax Strategy, Planning and Compliance
Taxation Law
This ensures that the organisation understands and conducts operations based on statutory, regulatory and common-law rules applicable to the organisation and its line of business.
Foundational
- Demonstrate understanding of basic principles and application of business tax
F1D1
Discuss the types of taxation that typically apply to an incorporated entity and the regulatory environment for taxation.
F1D2
Explain the taxation issues that may apply to an incorporated entity that operates internationally.
Intermediate
- Understand and discuss routine tax matters such as income tax, indirect tax, corporate tax within clear guidelines
- Assess technical tax issues of reasonable complexity (in areas of specialisation)
F1D1
Discuss the types of taxation that typically apply to an incorporated entity and the regulatory environment for taxation.
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
F1D2
Explain the taxation issues that may apply to an incorporated entity that operates internationally.
F1D3
Produce computations for corporate income tax and capital tax.
Advanced
- Provide tax advice and creatively solve technical tax issues that are non-routine and/or complex
- Interpret new legislation and evaluate its implications for the organisation, and/or advise on application of existing legislation to new situations
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
F3C2
Evaluate the value of entities.
F3A2
Evaluate strategic financial management policy decisions.
P3B1
Evaluate the tools and processes required for strategy implementation.
F3C1
Evaluate opportunities for acquisition, merger and divestment.
Tax Accounting
This is the process of recording financial records for tax purposes as prescribed by taxation law.
Foundational
- Apply basic tax accounting principles to appropriately record taxes
F1D3
Produce computations for corporate income tax and capital tax.
Intermediate
- Apply corporate and international tax accounting standards to appropriately report the tax implications of the organisation’s transactions
- Identify and implement improvements to tax accounting and reporting processes within the tax department; highlight implications of latest international standards and Generally Accepted Accounting Principles (GAAP) in relation to tax accounting
F1D2
Explain the taxation issues that may apply to an incorporated entity that operates internationally.
F2B2
Demonstrate the impact on the preparation of the consolidated financial statements of certain complex group scenarios.
F1D3
Produce computations for corporate income tax and capital tax.
F2B1
Produce consolidated primary financial statements, incorporating accounting transactions and adjustments, in accordance with relevant international accounting standards, in an ethical manner.
F2B3
Discuss the need for and nature of disclosure of transactions between related parties.
F2B4
Produce the disclosures for earnings per share.
Tax Planning
This is the process of analysing the financial situation or plan of the organisation for tax perspective (including international taxation and transfer pricing).
Foundational
- Demonstrate basic understanding of taxation strategies
F1D1
Discuss the types of taxation that typically apply to an incorporated entity and the regulatory environment for taxation.
F1D2
Explain the Taxation issues that may apply to an incorporated entity that operates internationally.
Intermediate
- Provide tax support from scoping to post-transaction implementation on certain projects
F3C1
Evaluate opportunities for acquisition, merger and divestment.
F3C2
Evaluate the value of entities.
F3C3
Evaluate pricing issues and post-transaction issues.
P3B1
Evaluate the tools and processes required for strategy implementation.
Advanced
- Manage corporate tax matters innovatively and strategically; recommend and advise on solutions for complex tax projects or deals affecting more than one jurisdiction
F3C1
Evaluate opportunities for acquisition, merger and divestment.
F3C2
Evaluate the value of entities.
F3C3
evaluate pricing issues and post-transaction issues.