ICAB SYLLABUS - 2023

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 ICAB Syllabus (2023)
Certificate Level
Assurance – 100 Marks

Module Aim

To ensure that candidates understand the assurance process and fundamental

principles of ethics and are able to contribute to the assessment of internal
controls and gathering of evidence on an assurance engagement.

On completion of this module, candidates will be able to:

Outline the purpose of assurance

 LO1: explain the concept of assurance, why assurance is required and the
reasons for assurance engagements being carried out by appropriately qualified
professionals;

Describe internal controls

 LO2: explain the nature of internal controls and why they are important;

 LO3: document an organization’s internal controls and identify weaknesses in

internal control systems;

 LO4: select sufficient and appropriate methods of obtaining assurance evidence

and recognise when conclusions can be drawn from evidence obtained or where
issues need to be referred to a senior colleague; and

Explain the role of professional ethics

 LO5: understand the importance of regulation of the profession and ethical

behaviour to a professional and identify issues relating to integrity, objectivity,
professional competence and due care, confidentiality, professional behaviour
and independence.

Method of assessment

The Assurance module is assessed by a 2.0 hours exam.

ETHICS AND PROFESSIONAL SCEPTICISM

The importance of ethics both as a knowledge area and as a behaviour to be

demonstrated is reflected in the syllabus area below ‘Professional ethics’. The learning
outcomes cover a range of threats and dilemmas to be identified as well as safeguards
and solutions to be resolved.

Professional scepticism is included in the requirement for the syllabus area ‘The

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concept, process and need for assurance’ where students are also required to
recognise the need for the exercise of professional judgement.

Specification grid

This grid shows the relative weightings of subjects within this module and should
guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting

(indicative %)
1 The concept, process and need for assurance 20
2 Internal controls 25
3 Gathering evidence on an assurance 35
engagement
4 Professional ethics 20

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Outline the purpose of assurance: LO1

a. The concept, process and need for assurance:

Candidates will be able to explain the concept of assurance, why assurance

is required and the reasons for assurance engagements being carried out by
appropriately qualified professionals.

In the assessment, candidates may be required to:

a. define the concept of assurance and compare the purposes and characteristics
of reasonable and limited levels of assurance obtained from different assurance
engagements;

b. state why users desire assurance reports and provide examples of the benefits
gained from them such as to assure the quality of an entity’s published corporate
responsibility or sustainability report;

c. compare the functions and responsibilities of the different parties involved in an

assurance engagement;

d. identify the issues which can lead to gaps between the outcomes delivered by
the assurance engagement and the expectations of users of the assurance
reports, and

e. identify the steps involved in obtaining, accepting and agreeing the terms of an
assurance engagement;

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 f. identify the process of planning an assurance engagement, including risk
assessment and the implications of climate change for an entity’s financial
statements;

g. define materiality and identify its role in the assurance engagement;

h. identify how the assurance provider reports to the engaging party;

i. recognise the need to plan and perform assurance engagements with an attitude
of professional skepticism and the exercise of professional judgement and;

j. recognise the characteristics of fraud and distinguish between fraud and error;
define the concept of reasonable assurance; and. define the assurance process,
including:

• obtaining the engagement

• continuous risk assessment

• engagement acceptance

• the scope of the engagement

• planning the engagement

• performing the engagement

• obtaining evidence

• evaluation of results of assurance work

• concluding and reporting on the engagement

• reporting to the engaging party

• keeping records of the work performed

• recognise the need to plan and perform

Describe internal controls: LO2, 3 Internal controls

Candidates will be able to explain the nature of internal controls and why
they are important, document an organization’s internal controls and
identify weaknesses in internal control systems.

In the assessment, candidates may be required to:

a. state the reasons for organizations having effective systems of control;

b. identify the fundamental principles of effective control systems and the risk of
over-dependence on IT;

c. identify the main business processes of an entity and data flows between areas
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 of the business that need effective control systems;

d. identify the components of internal control in both manual and IT environments,

including:

• the overall control environment

• preventative and detective controls

• internal audit

e. define and classify different types of internal control, with particular emphasis
upon those which impact upon the quality of financial information;

f. show how specified internal controls mitigate risk and state their limitations;

g. identify internal controls for an organization in a given scenario;

h. identify internal control weaknesses in a given scenario; and

i. identify, for a specified organization, the sources of information which will

enable a sufficient record to be made of accounting or other systems and
internal controls.

Gather assurance evidence: L04

3. Gathering evidence on an assurance engagement

Candidates will be able to select sufficient and appropriate methods of

obtaining assurance evidence and recognise when conclusions can be
drawn from evidence obtained or where issues need to be referred to a
senior colleague.

In the assessment, candidates may be required to:

a. state the reasons for preparing and keeping documentation relating to an

assurance engagement;

b. identify the different methods of obtaining evidence, including remote auditing

techniques, from the use of tests of control, substantive procedures, including
analytical procedures and data analytics software;

c. recognise the strengths and weaknesses of the different methods of obtaining

evidence;

d. identify the situations within which the different methods of obtaining evidence
should and should not be used;

e. compare the reliability of different types of assurance evidence;

f. select appropriate methods of obtaining evidence from tests of control and

from substantive procedures for a given business scenario;

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 g. recognise when the quantity and quality of evidence gathered from various tests
and procedures is of a sufficient and appropriate level to draw reasonable
conclusions on which to base a report;

h. identify the circumstances in which written confirmation of representations from

management should be sought and the reliability of such confirmation as a form
of assurance evidence; and

i. recognise issues arising whilst gathering assurance evidence that should be

referred to a senior colleague.

Explain the role of professional ethics: LO5

1. Professional ethics

Candidates will be able to understand the importance of ethical behaviour to a

professional and identify issues relating to integrity, objectivity, professional
competence and due care, confidentiality, professional behaviour and independence.

In the assessment, candidates may be required to:

a. state the role of ethical codes and their importance to the profession and identify
the key features of the system of professional ethics adopted by IESBA and
ICAB

b. recognise the differences between a rules based ethical code and one based
upon a set of principles;

c. recognise how the principles of professional behaviour protect the public and
fellow professionals;

d. identify the fundamental principles underlying the IFAC and the ICAB code of
ethics;

e. recognise the importance of integrity and objectivity to professional accountants,

identifying situations that may impair or threaten integrity, objectivity and
independence;

f. suggest courses of action to resolve ethical conflicts relating to integrity,

objectivity and independence;

g. respond appropriately to the request of an employer to undertake work outside

the confines of an individual’s expertise or experience;

h. recognise the importance of confidentiality and identify the sources of risks

of accidental disclosure of information;

i. identify steps to prevent the accidental disclosure of information;

j. identify situations in which confidential information may be disclosed;

k. define independence and recognize why those undertaking an assurance

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 engagement are required to be independent of their clients;

l. identify the following threats to the fundamental ethical principles and the
independence of assurance providers:
• self-interest threat
• self-review threat
• management threat
• advocacy threat
• familiarity threat
• intimidation threat;

m. identify safeguards to eliminate or reduce threats to the fundamental ethical

principles and the independence of assurance providers; and

n. suggest how a conflict of loyalty between the duty a professional accountant has
to their employer and the duty to their profession could be resolved.

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 ICAB Syllabus (2023)
Certificate Level
Accounting 100 Marks

Module aim

To ensure that candidates have a sound understanding of the techniques of

double entry accounting and can apply its principles in recording transactions,
adjusting financial records and preparing non- complex financial statements.

On completion of this module, candidates will be able to demonstrate the following

learning objectives (LO): Maintaining financial records

 LO1: apply double entry accounting techniques for the maintenance of

accounting records; Adjust accounting records

 LO2: identify and correct omissions and errors in accounting records and
financial statements; Prepare financial statements

 LO3: specify the components of financial statements; and

 LO4: prepare and present non-complex accounts for sole traders, partnerships
and limited companies.

Method of assessment

The Accounting module is assessed by a 2.0 hours exam

Ethics is an overarching requirement for the professional accountant and students will
be expected to recognise that the exercise of judgement is required in applying
fundamental accounting concepts. Students will learn about the IESBA Code of Ethics
for Professional Accountants – fundamental principles and professional misconducts
as prescribed by ICAB bye-laws and consider the merits of a principles- based code.
Specific questions on this area are included within the ‘Maintaining financial records’
weighting in the specification grid.

Specification grid

This grid shows the relative weightings of subjects within this module and should guide
the relative study time spent on each. Over time the marks available in the assessment
will equate to the weightings below, while slight variations may occur in individual
assessments to enable suitable rigorous questions to be set.

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Syllabus area Weighting
(indicative %)
1 Maintaining financial records 25-30
2 Adjustments to accounting records and financial 20-25
statements
3 Preparing financial statements 40-45
4. Public Financial Management 5-10

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Maintain financial records: LO1

1. Maintain financial records

Candidates will be proficient in the use of double entry accounting techniques

and the maintenance of accounting records.

In the assessment, candidates may be required to:

a. specify why an entity maintains financial records and prepares financial

statements;

b. specify the ethical considerations for preparers of financial statements;

c. identify the sources of information for the preparation of accounting records

and financial statements;

d. record and account for transactions and events resulting in income,

expenses, assets, liabilities and equity in accordance with the appropriate
basis of accounting and the laws, regulations and accounting standards
applicable to the financial statements;

e. record and account for changes in the ownership structure and ownership
interests in an entity; and

f. prepare a trial balance from accounting records and identify the uses of the
trial balance.

Adjust accounting records: LO2

2. Adjustments to accounting records and financial statements

Candidates will be able to identify and correct omissions and errors in

accounting records and financial statements.

In the assessment, candidates may be required to:

a. identify omissions and errors in accounting records and financial statements
and demonstrate how the required adjustments will affect profits and/or losses;
b. correct omissions and errors in accounting records and financial statements
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 using control account reconciliations and suspense accounts;
c. prepare an extended trial balance; and
d. prepare journals for nominal ledger entry and to correct errors in draft financial
statements.

Preparing financial statements: LO3, 4

3. Preparing financial statements

Candidates will be able to specify the components of financial statements,

and prepare and present non-complex accounts for sole traders,
partnerships and limited companies.

In the assessment, candidates may be required to:

a. identify the main components of a set of financial statements and specify their
purpose and interrelationship;

b. specify the key aspects of the accrual basis of accounting, cash accounting and
break-up basis of accounting; and

c. prepare and present a statement of financial position, statement of profit or loss,

statement of changes in equity and statement of cash flows (or extracts
therefrom) from the accounting records and trial balance in a format which
satisfies the information requirements of the entity.

4. Public Financial Management: Please see separate syllabus below for this
topic:

PSFRA-CL.docx

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 ICAB Syllabus (2023)
Certificate Level

Business, Technology and Finance – 100 Marks

Module aim

To provide students with an understanding of how businesses operate and

how accounting and finance functions help businesses in achieving their
objectives.

On completion of this module, students will be able to:

Explain business objectives and functions

• LO1: identify the general objectives of businesses and the functions and tasks
that businesses perform in order to meet their objectives;

Describe organizational structures

• LO2: specify the nature, characteristics, advantages and disadvantages of

different forms of business and organizational structure;

Explain the role of finance

• LO3: identify the purpose of financial information produced by finance functions,

specify how finance functions support business operations, including the
measurement of risk, and identify sources and methods of financing for
businesses;

• LO4: identify sources and methods of financing for businesses and individuals;
Describe the role of the accounting profession

• LO5: specify the role of the accountancy profession and why the work of the
profession is important; Describe and identify the role of governance

• L06: identify the role that governance plays in the management of a business
and specify how a business can promote corporate governance, sustainability,
corporate responsibility and an ethical culture; and

Explain the business economic environment

• LO7: specify the impact on a business of the economic environment in which it

operates.

• specify the impact on a business of the external environment in which it

operates; and

• specify key issues in relation to data and its collection, visualisation and
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 analysis, and identify key features, benefits and risks of different technologies.

Method of assessment

The Business and Finance module is assessed by a 2.0 hours exam.

ETHICS AND PROFESSIONAL SCEPTICISM

Ethical thinking will be required across all areas of the syllabus. A specific
weighting is given in the syllabus area ‘Key issues for the accountancy profession
and business’ which includes ethics and business ethics, in the table below. The
policies and procedures necessary to promote an ethical culture will be
emphasised. Students will be expected to apply professional scepticism.

Additionally, under the syllabus area ‘The external environment of business’,

students must demonstrate an awareness of the needs of different stakeholders,
and in the ‘Technology and data analysis’ area they must be able to identify types
of data bias, their causes and effects.

Specification grid

This grid shows the relative weightings of subjects within this module and should
guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting (indicative %)

1 Business objectives and functions 10
2 Business and organizational structures 10
3 The role of finance and the finance function 25
4 Key issues for the accountancy profession and 20
business
5. The external environment of business 15
6. Technology and data analysis 20

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Explain business objective and functions: LO1

1. Business objectives and functions

Candidates will be able to identify the general objectives of businesses and

the functions and tasks that businesses perform in order to meet their
objectives.

In the assessment, candidates may be required to:

a. state the general objectives of businesses;

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 b. state the general objectives of strategic management and specify the strategic
management process and interrelationship between a business’s vision, mission
and strategic objectives;

c. identify the various functional areas within businesses and show how the
functions assist the achievement of business objectives;

d. identify the nature and functions of organizational management, human

resources management and operations management and show how these are
influenced by human behaviour;

e. identify the relationship between a business’s overall strategy and its functional
strategies;

f. identify the nature and purpose of strategic plans, business plans and
operational plans;

g. specify how a strategic plan is converted into fully-integrated business and

operational plans;

h. identify the main components of the risk management process and show how
they operate; and

i. identify the key issues in relation to risk and crisis management.

1. Business and organizational structures

Candidates will be able to specify the nature, characteristics, advantages and

disadvantages of different forms of business and organizational structure.

In the assessment, candidates may be required to:

a. identify the differences between businesses carried out by sole traders,

partnerships, limited liability partnerships, alliances and groups, and show the
advantages and disadvantages of each of these structures;

b. identify the differences between unincorporated businesses and companies,

and show the advantages and disadvantages of incorporation; and

c. identify different organizational structures and specify their advantages and

disadvantages.

Explain the role of finance: LO3, 4

3. The role of finance

Candidates will be able to identify the purpose of financial information produced by

businesses, specify how accounting and finance functions support business
operations, and identify sources and methods of finance for business and
individuals.
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In the assessment, candidates may be required to:

a. specify the extent to which financial information:

• supports businesses in pursuit of their objectives, including business

partnering

• provides for accountability of management to shareholders and other

stakeholders;

• reflects business performance;

• is useful to users in making economic decisions;

• meets the information needs of national, social and economic contexts

(e.g. national statistical information);

b. specify how accounting and finance functions support businesses in pursuit of

their objectives;

c. identify the main considerations in establishing and maintaining accounting

and financial reporting functions and financial control processes;

d. identify, in the context of accounting and other systems, the issues surrounding:

• information processing;

• information security;

• information management;

e. specify why the management of a business require information about

performance measurement including non-routine areas such as in supporting
an entity’s sustainability management;

f. specify types of risk and techniques for measuring risk, including: measures of
central tendency (mean, mode, median, range); measures of spread (range,
standard deviation, variance, co-efficient of variation); the normal distribution;
skewness

g. identify the accountant’s role in preparing and presenting information for the
management of a business;

h. specify the relationship between a business and its bankers and other providers
of financial products;

i. identify the characteristics, terms and conditions and role of alternative short,
medium and long-term sources of finance available to different businesses;

j. identify the processes by which businesses raise equity, capital and other long
–term finance;

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 k. identify appropriate methods of financing exports, including:

• bills of exchange

• letters of credit

• export credit insurance;

l. specify the general objectives of personal financial management; and

m. identify the principles of personal financial management and the personal

financial management process.

Describe the role of the accounting profession: L05

4. The role of the accountancy profession

Candidates will be able to specify the role of the accountancy profession and why
the work of the profession is important.

In the assessment, candidates may be required to:

a. identify the importance of the accountancy profession to the public interest and
to the effectiveness of capital markets, and the links between the public
interest, technical competence and professional responsibility, including the
attributes of professional scepticism, professional judgement and the public
trust;

b. specify the key features of the regulatory framework within which professional
accountants work including the basics of how anti-money laundering
requirements affect them;

c. state the reasons why governance is needed and identify the role that
governance plays in the management of a business;

d. identify the key stakeholders and their governance needs for a particular
business;

e. identify and show the distinction between the roles and responsibilities of those
charged with corporate governance and those charged with management,
including the basics of the Bangladesh corporate governance code;

f. specify how differences in legal systems and in national and business cultures
affect corporate governance;

g. identify the roles and responsibilities within a business of the executive board,
any supervisory board, the audit committee and others charged with corporate
governance, the internal audit function and those responsible for the external
audit relationship;

h. specify the nature of ethics, business ethics, sustainability and corporate

responsibility; and
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 specify the policies and procedures a business should implement in order
to promote good corporate governance, sustainable practices, corporate
responsibility and an ethical culture within its operations.

Describe and identify the role of governance: LO6

Governance, sustainability, corporate responsibility and ethics

Candidates will be able to identify the role that governance plays in the
management of a business and specify how a business can promote corporate
governance, sustainability, corporate responsibility and an ethical culture.

In the assessment, candidates may be required to:

a. state the reasons why governance is needed and identify the role that
governance plays in the management of a business;

b. identify the key stakeholders and their governance needs for a particular
business;

c. identify and show the distinction between the roles and responsibilities of those
charged with corporate governance and those charged with management,
including the basics of the Bangladesh corporate governance code;

d. specify how differences in legal systems and in national and business cultures
affect corporate governance;

e. identify the roles and responsibilities of the members of the executive board,
any supervisory board, the audit committee and others charged with corporate
governance, internal audit and external audit;

f. identify the roles and responsibilities of those responsible within a business for
internal audit and for the external audit relationship;

g. specify the nature of ethics, business ethics, professional ethics, sustainability

and corporate responsibility; and

h. specify the policies and procedures a business should implement in order to

promote an ethical culture.

Explain the business economic environment: LO7

1. External environments
Candidates will be able to specify the impact on a business of the environment
in which it operates including the potential effects of sustainability issues.
In the assessment, candidates may be required to:
a. specify the signaling, rewarding and allocating effects of the price mechanism
on business (including the concept of price elasticity);
b. specify the potential types of failure of the market mechanism and their effects
on business;
c. identify the key macroeconomic factors that affect businesses;
d. specify the principal effects of regulation upon businesses;
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 e. show how the needs of different stakeholders in a business (e.g., shareholders,
the local community, employees, suppliers, customers) impact upon it; and
f. specify the effects of international legislation on businesses.

Understand Technology and data analysis: L08

Candidates will be able to specify key issues in relation to data and its collection,
visualisation and analysis, and identify key features, benefits and risks of different
technologies.

In the assessment, students may be required to:

a. specify the purpose of data, the different types and sources of data, the
importance of data comparability and the role of professional scepticism in
relation to data collection, analysis and visualisation;

b. specify principles in relation to the collection and analysis of data, including

populations, surveys, presentation of simple frequency distributions, basic
sampling and data ethics;

c. identify types of error in data and types of data bias, including their causes and
effects;

d. identify issues in relation to the use of spreadsheets and the visualisation and
interpretation of data in graphs, charts etc;

e. identify the characteristics of big data;

f. specify uses of data science and data analytics by organisations;

g. specify different types of cyber risk and attack and the steps organisations can
take to improve cyber security;

h. specify the features and uses of cloud accounting, the internet of things, digital
assets, blockchain, distributed ledger technology and fintech; and

i. identify the effect of technology developments, including those relating to

artificial intelligence, machine learning and robotic process automation, on the
accountancy profession.

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 ICAB Syllabus (2023)
Certificate Level

Management Information – 100 Marks

Module aim

To enable candidates to prepare essential financial information for the

management of a business.

On completion of this module, candidates will be able to:

Costing and pricing

• LO1: identify the costs associated with the production of products and
provision of services and use them to determine prices;

Budgeting and forecasting

• LO2: select appropriate budgeting approaches and methods and prepare

budgets;

Performance management
• LO3: identify key features of effective performance management systems;
• LO4: select appropriate performance measures;
• LO5: calculate differences between actual performance and standards or
budgets;

Management decision making

• LO6: identify and calculate relevant data for use in management decision
making; and

• LO7: identify and explain ethical aspects to decision making.

Method of assessment

The Management Information module is assessed by a 2.0 hours exam.

ETHICS AND PROFESSIONAL SCEPTICISM

Ethics is fundamental to the sound provision of management information upon

which basis sustainable business decisions can be made. This will form a
backdrop to an overall culture of business trust as well as business efficiency. It is
treated as ingrained across the syllabus with a weighting of marks being given
within the ‘Costing and Pricing’ syllabus area. Students will be expected to apply
professional scepticism.
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 Specification grid

This grid shows the relative weightings of subjects within this module and should
guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting

(indicative %)

1 Costing and pricing; 5 Ethics 25

2 Budgeting and forecasting 25

3 Performance management and management 25

information operations

4 Management decision making 25

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Costing and pricing: LO1

1. Costing and pricing

Candidates will be able to establish the costs associated with the production
of products and provision of services and use them to determine prices.

In the assessment, candidates may be required to:

a. recognise the use of cost information for different purposes;

b. classify costs as fixed, variable, direct or indirect;

c. calculate unit costs and profits/losses from information provided, using:

• marginal costing;

• absorption costing and reconcile the differences between the costs and
profits/ losses obtained;

d. select the most appropriate method of costing for a given product or service;

e. calculate the sales price for a given product or service using cost based pricing;
and

f. calculate transfer prices for specified sales to internal customers which take
account of appropriate costs.

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 Budgeting and forecasting: LO2

a. Budgeting and forecasting

Candidates will be able to select appropriate budgeting approaches and

methods and prepare budgets.

In the assessment, candidates may be required to:

b. apply forecasting techniques to assist management in performance

measurement and planning;

c. recognise how forecasting techniques (including high/low, linear regression and

time series analysis) help management in budgeting and forecasting and
perform calculations using these techniques;

d. prepare budgets, or extracts therefrom, from information in supplied;

e. select the most appropriate of the following budgeting approaches and

methods, taking into account their advantages and disadvantages for planning,
control and motivation;

• bottom-up and top-down approaches to generating and managing budgets;

• activity-based, responsibility-based and product-based budget structures;

• zero-based and incremental budgeting;

f. prepare and/or comment upon a cash budget for a business which highlights
the quantity and timing of cash surpluses and deficits;

g. calculate the cash cycle for a business and recognise its significance;

h. identify the constituent elements of working capital and treasury and specify
the methods by which each element can be managed to optimise working
capital and cash flows; and

i. recognise how a business manages surpluses and deficits predicted in cash

budgets.

Performance management: LO3-5

a. Performance management

Candidates will be able to identify key features of effective performance

management systems, select appropriate performance measures and
calculate differences between actual performance and standards or budgets.

In the assessment, candidates may be required to:

b. identify the reasons for and key features of effective performance management
systems;

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c. select appropriate financial and non-financial performance measures which
effectively encourage the business as a whole to meet its objectives;

d. identify the role of controls in ensuring effective performance management;

e. identify issues relating to the collection of data (data bias) and interpretation of
data (professional scepticism) for performance management;

f. identify the features of cloud accounting and its associated risks and benefits;
and

g. identify the features of shared service centres and their relative merits for the
provision of management information.

h. identify how performance measures and compliance measures are integrated

into the general systems of control in businesses; and

i. calculate differences between actual performance and standards or budgets in

terms of price and volume effects and identify possible reasons for those
differences.

Management decision making: LO6, 7

4. Management decision making

Candidates will be able to identify and calculate relevant data for use in
management decision making.

In the assessment, candidates may be required to:

a. calculate the break-even point, contribution and margin of safety for a given
product or service;
b. allocate scarce resource to those products or services with the highest
contribution per limiting factor;
c. calculate the net present value, internal rate of return, payback period or
accounting rate of return for a given project;
d. identify the advantages and disadvantages of the investment appraisal
techniques; and
e. identify and explain ethical issues relating to the preparation, presentation
and interpretation of financial information for the management of a business.
1. Ethics
In the assessment, students may be required to:
a. identify and explain ethical issues relating to the preparation,
presentation and interpretation of financial information for the
management of a business.

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 ICAB Syllabus (2023)
Certificate Level

Principles of Taxation- 100 Marks

MODULE AIM

To enable students to understand the basic principles of taxation and to calculate income tax
under different heads, assessment of individuals and businesses and indirect taxes like Value
Added Tax (VAT), Turnover Tax (TT), Supplementary Duty (SD), Customs Duty (CD) and
Excise Duty (ED) in straightforward scenarios.

On completion of this module, students will be able to:

• Explain the general objectives of taxation, ethical and professional issues and
describe the basic system of administration relating to taxation (covering both direct
and indirect taxes) in Bangladesh.

• Explain how taxation in Bangladesh is applied to the income, expenditure, assets,

liabilities or transactions of business entities and individuals.

• Outline the basic characteristics and operations of VAT, and customs duty in
Bangladesh.

• Determine how indirect taxes move along the supply chain from origin to end
consumers

METHOD OF ASSESSMENT

Principles of Taxation module is assessed by a 3-hour Multiple Choice Question (MCQ). The
questions cover the areas of the syllabus in accordance with the weightage set out in the
specification grid.

Students will be assessed based on latest tax legislation, rules, regulations, etc.

SPECIFICATION GRID

This grid shows the relative weightings of subjects within this module and should guide the
relative study time spent on each. The marks available in the assessment will equate to the
weighting ranges below.

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Syllabus area Weighting Range*

A. Income Tax

A1. General principles of taxation, administration, and basic principles 10-15

of ethics in taxation
A2. Computation of income tax:
(a) Income tax of individuals 15-20
(b) Income tax of business or profession 20-25
B. Value Added Tax 30-35

C. Customs 15-20

*Total marks in the examination will be 100.

Following learning outcomes should be read with in conjunction with the relevant sections of
the technical knowledge grids.

A. Income Tax

A1. General principles of taxation and administration and basic principles of ethics in
taxation

Students will be able to explain general principles of taxation, structure of tax administration
and basic principles of ethics in taxation.

In the examination, students may be assessed through straight forward scenario in

following areas:

a) Basic concepts of taxation

Objective of taxation; Management of the economy; Social justice, and environmental

concerns; Different types of tax structure, Tax incidence, impact, shifting, Liability to tax;
National board of revenue (NBR) and its functions; Sources of tax law and practice;
Legislation; Case Law; NBR Publications.

b) Introduction of income tax

The concept of income; Tax and income tax; History of income tax; Tax rates of Individual,
firm, Association Of Persons (AOP), Hindu Undivided Family (HUF), and artificial judicial
person; Tax rates of companies; Tax rates of dividend; Tax rate for non-resident foreigner;
Capital gain tax rate, Tax rate on winnings from lotteries; Total income; Capital or revenue;
Residential status; Tax liability on income; Basic issues related to TIN, assessment, and
administration; Other introductory and basic areas of income tax; Changes in Finance Act;
Changes through SROs and other notifications.

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c) Administration and tribunal

Various income tax authorities; Appointment of income tax authorities; Subordination and
control of income tax authorities; Jurisdiction of income tax authorities; Exercise of jurisdiction
by successor; Officers to follow instruction of the board; Guidance to Deputy Commissioner
of Taxes (DCT); Exercise of assessment functions.

Establishment of Appellate Tribunal; Exercise of power of the Tribunal by Division Benches;

Decision of Bench; Exercise of Power by one member; Taxes Appellate Tribunal’s
procedures; Organization and structure.
d) Return, statement, and furnishing certain information

Assessment of income tax; Form of submission of return; Signature and verification of return;
Tax day; Delay interest for filing return after tax day; Documents to be submitted along with
the return of income; Return of withholding tax; Obligation to furnish annual information return;
Concurrent jurisdiction; Notice; Filing of revised return; Production of accounts and
documents; Statement of assets, liabilities, and expenditure and life style statement;
Production of other information; Requirement of furnishing certain information regarding
payment of salary, dividend, interest etc. Any other requirements of return, statement,
furnishing information under Income Tax Act 2023.

e) Assessment

Provisional assessment; Assessment on the basis of correct return; Universal self-

assessment; Minimum tax; Spot assessment; Assessment on the basis of hearing;
Assessment on the basis of report of NBR appointed chartered accountant; Best judgment
assessment; Income escaping assessment; Any other types of assessment as per income
tax act; Limitation for assessment.

f) Recovery of tax

Tax to include Penalty, Interest, etc.; Notice of demand; Penalty for default in payment of tax;
Certificate for recovery of tax; Method of recovery by Tax Recovery Officer; Power of
withdrawal of certificate and stay of proceeding; Validity of certificate for recovery; Recovery
of tax through collector of district; Recovery of tax through special magistrates; Other methods
of recovery.

g) Refunds

Requirement to issue refund voucher; Entitlement to refund; Claim of refund; Correctness of

assessment etc. not to be questioned; Refund on the basis of appeal order; Form of claim
and limitation; Interest on delayed refund; Adjustment of refund against tax.

h) Appeal and references

Appeal against order of DCT and IJCT; Tax payment before appeal; Fees for appeal; Time
limits for appeal; Appeal before the Appellate Joint Commissioner or The Commissioner
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[Appeals]; Appeal against order of TRO; Appeal to Taxes Appellate Tribunal; Reference to
Honorable high court division of the Supreme Court; Appeal to the appellate division.

i) Penalty, offences and prosecutions

Penalty for not maintaining accounts in the prescribed manner; Penalty for failure to file return,
certificate, statement, accounts of information; Penalty for using fake TIN; Penalty for failure
to pay advance tax; Penalty for non-compliance with notice; Penalty for failure to pay tax on
the basis of return; Penalty for concealment of income; Bar to impose penalty without hearing;
Previous approval of IJCT for imposing penalty; Penalty to be prejudice to other liability; any
other penalty as per income tax ordinance.

Punishment for non-compliance of certain obligations; Punishment for false statement;

Punishment for improper use of TIN; Punishment for using fake audit report; Punishment for
obstructing income tax authority; Punishment for unauthorized employment; Punishment for
concealment of income; Punishment for disposal of property to prevent attachment;
Punishment for disclosure of protected information; Sanction for prosecution; Power to
compound offenses; Trial by special judge.

j) Accounting

Methods of accounting; Change of accounting method; Requirement of a company to furnish

audited accounts.

k) Basic principles of ethics in taxation

Students will be able to identify fundamental principles given in ICAB Code of Ethics and the
guidance in relation to tax practice with regard to conflict of interests, threat and safeguard,
and ethical conflict resolution.

In the examination, students may be assessed through straight forward scenario in

following areas:

 Fundamental principles.
 Threat and safeguards framework.
 Ethical conflict resolution.
 Disclosure of information.
 Conflict of interest.
 Anti-money laundering.
 Tax evasion vs. tax avoidance.
 Commonly faced ethical dilemma in taxation practice in Bangladesh.

A2. Computation of Income tax of individuals, business and profession

Students will be able to calculate taxable income and tax payable or refund in relation to
income tax of individuals and business or profession.

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In the examination, students may be assessed through computations or problem solving in
straight forward scenario in following areas:

a) Charge of tax

Charge of income tax; Charge of additional tax; Charge of minimum tax; Scope of the total
income; Income deemed to accrue or arise in Bangladesh; income or expenditure; Special
tax treatment in respect of some investments.

b) Heads of income:

 Income from salaries

Concept of salary and perquisites; Valuation of perquisites, allowances, and benefits
to be included in income from salary; Contribution to different types of provident funds,
and other funds; Non assessable income under the head ‘salaries’.

 Income from rent

Scope of r income from rent; Computation of annual value; Impact of self-occupancy;
Allowable deductions; Non assessable income; Formalities to be followed by landlord;
Tax to be deducted at source from house rent.

 Agricultural income
Basic law of computing agricultural income; Characteristics of agricultural income;
Categories of agricultural income; Non-agricultural income; Income from agricultural
house property; Allowable deductions; Non-assessable agricultural income.

 Income from business

Scope of income from business; Allowable deduction in computing income from
business and profession; Expenses not admissible income from business and
profession; Capital and revenue expenditure; Test for determining an expenditure as
either capital or revenue nature; Balancing charge; Compensation received from
insurance company; Fractional income in certain cases; Entertainment expense;
Foreign travel allowance of employees; Free sample distribution; Perquisites;
Expenses allowed up to a certain percentage; Expenses which are capital expenditure
as per IFRSs but allowable as revenue expenses as per ITO; Minimum Tax.

 Capital gains
Determination of fair market value; Offer to buy the capital assets by the Government;
Transfer of capital assets used in the business; Tax exempted capital gains; Tax rate
in respect of capital gain; Special tax rates on capital gain from sale of shares of listed
companies; Apportionment of sale proceeds between original cost and subsequent
improvements.

 Income from financial assets

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 Scope of interest on securities; Nature and types of securities; Bond washing
transaction through sale and buy back of securities; Expenses admissible; Tax free
securities, Dividend; Interest income other than interest of securities.

 Income from other sources

Identify income from other sources; Royalties; Fees for technical services; Allowable
deductions; Inadmissible deductions.

c) Investment allowances:

Tax rebate/credit on allowable investments; Rate of rebate; Computation of allowable

investment allowances.

d) Depreciation allowances

Basics of depreciation allowances; Depreciation allowance for different heads of income;

Depreciation allowance on assets used for agricultural purpose; Depreciation allowance on
assets used in business; Types of depreciation allowances; Normal depreciation allowance;
Initial depreciation allowance; Other depreciation allowance; Written down value of assets for
depreciation purpose; Investment allowance; Disposal of assets and treatment of gain or loss;
Amortization of license fees and pre-operating expenditure; Limitation in respect of
depreciation allowance; Assignment of unabsorbed depreciation; Computation of
depreciation allowance.

e) Set off and carry forward of losses

Set off of losses; Procedure to set off; Carry forward of business losses; Set off and carry
forward of loss in speculation business; Set off and carry forward of loss under the head
‘capital gains’; Set off and carry forward of loss from agriculture; Carry forward of loss of firm
and partner; Carry forward of loss of succeeded business or profession; Carry forward of
unabsorbed depreciation; Carry forward of loss of tax holiday undertaking; Procedures of
carry forward.

f) Exemptions and Tax holiday

Types of business eligible for tax holiday; Categories of industries within the meaning of
industrial undertaking; Categories of infrastructure within the meaning of physical
infrastructure facilities;
Conditions for eligibility; Application procedure and its disposal by the NBR; Withdrawal and
cancellation of tax holiday; Period of tax holiday for industrial undertaking; Period of tax holiday
for physical infrastructure facilities; Conditions to be fulfilled after getting tax holiday;
Documents to be submitted with tax holiday application; Tax exemption of industry set up at
EPZ; Special tax exemptions/reduced rates/ concessions in respect of certain industries.

g) Payment of tax before assessment.

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Deduction or collection at source; Advance payment of tax; Person responsible for tax
deduction at source; Time limit for payment of tax deducted at source; Manner of payment of
tax deducted at source; Issuance of certificates for tax deducted at source; Rates of TDS;
TDS treated as minimum tax under section 163; Other important areas related to TDS;
Consequence of failure to deduct; Requirement to pay advance tax; Computation of advance
tax; Installments of advance tax; Estimate of advance tax; Advance payment of tax by
different types of assesse; Failure to pay installments; Levy of simple interest for failure to
pay advance tax; Credit of advance tax; Interest payable by Government on excess payment
of advance tax; Interest payable by assesse on deficiency in payment of advance tax;
Payment of tax on the basis of return.

B. Value Added Tax

Students will be able to explain Value Added Tax (VAT) system in Bangladesh, calculate VAT
payable, and identify various compliance requirements in relation to VAT.

In the examination, students may be assessed through straight forward scenario in the
following areas:

a) Concept of Value Added Tax

Basic concept of indirect taxes, Different forms of indirect taxes, Background history of
implementing different indirect taxes in Bangladesh, Indirect taxes reform history,
Regressively of indirect taxes, Role of indirect taxes in socio-economic development,
Inception and raise of VAT, Evolution of VAT; Basic features of VAT, Similarities and
dissimilarities between VAT and Income Tax; Advantages of VAT over Sales Tax and Excise
Duty; Advantages and disadvantages of VAT; VAT Chain, Variants of VAT; Tax types in
Bangladesh VAT regime (VAT, SD & TOT).

b) VAT Planning

Major components to be considered during VAT Planning, Rates, Place of imposition,

Registration Threshold, Exemptions, zero rating, VAT Administration, Cross-border
transaction, VAT Accounting, Return filing, Compliance Checklist for a taxpayer.

c) VAT Administration:

Structure of VAT administration, Location, Digital tools to find each body.

d) VAT Compliance Issues

(i) Registration:

Person, liable person for registration, determination of thresholds, time of registration, types
of registration, change in registration information, suspension of registration, cancellation of
registration, registration for seasonal business, registration for group of companies, Turnover
Tax Enlistment, Switching between VAT registration and Turnover Tax Enlistment, BIN, BIN,

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Documents and fees required for registration or turnover tax enlistment, Address changes,
Concept of Branch and Central registration, Relationship between TIN and BIN, Online
Registration, Benefits of online registration over traditional paper-based registration,
registration related penal provision, Review of related legislation.

(ii) VAT Liabilities:

Time and Stages (places) for VAT & SD Imposition, Calculation of VAT and SD at Import
Stage, Imposition of VAT & Supplementary Duty on other stages, VAT Exemptions through
Schedule, SRO, GO and SO and the scale of exemption. List of goods and service subject
to SD at different stages, truncated rates. Penal provision for wrong liability assessment,
Review of related legislation.

(iii) VAT Assessment:

• Valuation: Transaction value, Fair market price, Value for service, Value for goods,
Stages of Price Determination; Requirements of Price Declaration; Forms used for
Price Declaration at different stage; Trade Discount; VAT at production stage; VAT at
business stage including commercial importer; VAT at Service Stage; Tariff Value;
Price determination in various special case, value for commercial importer, Input-
output coefficient and its importance, Value declaration and approval process, Value
declaration dispute resolution process, 3rd party/contract manufacturing, Declared
value versus transaction value complexity in ledger adjustment, penal provision for
wrong valuation, Review of related legislation.

• Output Tax: Components, time of pay ability and payment, Determination of output
tax, Review of related legislation.

• Input Tax Credit: Input, Input tax, Condition for credit, restrictions of credit, impact
of wrong credit, partial credit, payment through banking channel, relation between
payment and credit, penal provision for wrong credit, Review of related legislation.

• Increasing Adjustment: Definition, Transactions subject to increasing adjustments,

conditions for each adjustment transaction, documentation for each adjustment
event, procedure of adjustment, penal provision related with adjustment event,
Review of related legislation.

• Decreasing Adjustment: Definition, Transactions subject to decreasing

adjustments, conditions for each adjustment transaction, documentation for each
adjustment event, procedure of adjustment, penal provision related with adjustment
event, Review of related legislation.

• Net Tax Calculation: Equation for net tax calculation, Review of related legislation.

• VAT Payment: Time, mode and place of payment, Economic codes, operational
codes for VAT Commissionerate and Custom Houses, Filling-up the treasury challan,
impact of short payment, impact of over payment, record keeping for payment
information, interest, penal provision related to payment, Review of related legislation.

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 • VAT Deduction at Source (VDS) or Withholding VAT: Definition, Rationale behind
introduction of VDS/WV in Bangladesh VAT, Withholding Entities, Transactions
subject to withhold, process of withholding, special situations, Exemption for
withholding, Issuance of Invoice for supplies subject to withholding VAT, payment of
withheld money, Issue of withholding certificate, adjustment of withheld VAT, Impact
on Account Current, presentation on return, penal provision related to withholding.
Review of related legislation.

(iv) VAT Accounting

• Basic: Principle of accounting, Basic differences between Business Accounting and

VAT Accounting, Ways of mitigating gap between business accounting and VAT
accounting, time and place of record keeping, Period for keeping records, related
penal provision, Review of related legislation.

• Invoices: VAT Invoices, Importance of VAT Invoices, Types of VAT Invoices, Use of
different types of VAT Invoice, Restriction on using several categories of invoices by
a single taxpayer, Filling up and issuing process for each VAT invoices, Transfer of
goods within the same legal entity, Transfer of goods to and from rented warehouse,
transfer of goods to and from contract manufacturer, transfer of goods from import
warehouse in different location within the same entity and rented warehouse or
contract manufacturer, Issuing Challan in own format; Use of software, Use of
Electronic Fiscal Device (EFD), Electronic Fiscal Printer (EFP), and Point of Sale
(POS) software, List of NBR enlisted software, Special provisions for invoice: Utility
services, telco services, banking services, ride sharing services, C&F service,
Insurance service, etc., penal provision related to invoice, Review of related
legislation.

• Inventory: Inventory for raw materials and finish product for manufacturer, service
renderer, commercial importers, traders. Maintaining different forms, filing process,
adjustment for input output coefficient mismatch, related penal provision, Review of
related legislation.

• Account Current: Heads/items of account current, Process of maintaining account

current, related penal provision, Review of related legislation.

• Debit Note: Situation demand for debit note, issuing process, conditions, time
limitation, adjustment in account current and return, related penal provision, Review
of related legislation.

• Credit Note: Situation demand for credit note, issuing process, conditions, time
limitation, adjustment in account current and return, related penal provision, Review
of related legislation.

• Other Books of Records: Commercial records, other books of records under law in
place, related penal provision, Review of related legislation.

• Goods Transfer: Transfer among different locations of same entity, transfer to other
entity for warehousing or contract manufacturing, related penal provision, Review of
related legislation.

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 • Warehouse Process: Warehouse as a part of same entity or other entity, valuation,
tax assessment, payment, adjustment, record keeping, related penal provision,
review of related legislation.

(v) Return Filing

Furnishing VAT or Turnover Tax Return; Time of furnishing return; Places of furnishing
return; Time extension; Documents to be submitted along with return; Procedure for revised
return; Submission of return online; Signatory of the return; Consequences of non-
submission of return.

(vi) Reporting to VAT Office:

VAT Registration and Turnover Tax Enlistment information change, VAT Invoice, Treasury
Challan, Temporary Shutdown, Permanent Shutdown, Accident, Quality deterioration of Raw
materials, disposal of wastage and non-usable finished goods, Exports, credit related
documents, return and documents requested by VAT authority. Shaw cause Notice (SCN),
Audit related documents, create a Checklist with time to comply; related penal provision,
review of related legislation.

(vii) Cooperation with VAT Administration:

Power to seek assistance from various bodies by VAT officials; cooperation and non-
cooperation, related penal provision, review of related legislation.

e) Zero rates

Process: Areas of zero-rating facility; Supply against international tender, subcontract

against international contract; Exports: Conditions, types, processes for each type,
documentation for each type; withholding by exporters; Purchases of different services by
exporters to be used for export supplies, e.g. banking services, utility services, C&F and
freight forwarding services, insurance services, etc.; VAT procedures for Bonded
Warehouses, Exporter at EPZ and SEZ, Commercial exporters; Adjustment in account
current; related penal provision, review of related legislation.

Duty Drawback: Duty drawback from DEDO; Different process: by Return, by Application,
by at actual, by flat rate; documents required for drawback for different industries; process of
application for duty drawback; method of application processing in DEDO; Common errors
done by exporters during submission of application and record keeping during export; related
penal provision, review of related legislation.

f) Refund

Definition; situation; conditions; limitation of time; application form and process and refund
issuing authority; Filling up an application form (TR-31); mode of getting money back;

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limitation in present refund process; Similarities and dissimilarities among Refund, Duty
Drawback and Input Tax Credit; related penal provision, review of related legislation.

g) Litigation:

(i) Quasi-judicial proceeding

• Basic: Definition; Basic features of quasi-judicial proceedings; Quasi-judicial
authority in VAT and Customs legislation; Powers of VAT quasi-judicial officials;
Power to search and forfeiture; Seizure list; Management of forfeited goods;
Releasing forfeited records or goods; Power to impose punishment; related penal
provision, review of related legislation.

• Types of punishment: Fine, penalty and interest, calculation of interest;

Compounding punishment; related penal provision, review of related legislation.

• Case File: Sources: Seizure report, audit report, complaint, etc.; related penal
provision, review of related legislation.

• Shaw Cause Notice (SCN): Formats, components, analysis of a SCN, preparation

of reply to the SCN; related penal provision, review of related legislation.

• Adjudication Order: Formats, components, analysis of an adjudication order,

deciding for acceptance or appeal; payment and adjustment in case of acceptance;
related penal provision, review of related legislation.

• Appeal: Appeal authority: Appeal Commissionerate, Appellate Tribunal; Deciding

appealing authority; preparing documents for appeal; payment for appeal
acceptance; appeal submission; deciding about the appointment of expert or self-
hearing; hearing; Adjudication order by appealing authority; deciding for acceptance
or apply for further appeal or review (as per the applicability); payment and
adjustment in case of acceptance; related penal provision, review of related
legislation.

• Review: Reviewing possibility to win in review; preparing documents for review;

review application submission; deciding about the appointment of lawyer; Attending
hearing; Court’s order issue, payment and adjustment in case of losing the case, re-
adjustment for paid money to appealing authority during appeal in case of wining the
case; related penal provision, review of related legislation.

(ii) Judicial Proceeding

Scope of judicial proceedings under VAT and Customs legislation.

(iii) Alternative dispute resolution (ADR)

Scope of ADR under VAT and Customs legislation.

(iv) Writ

h) Debt Recovery

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Defining debt, source of debt, tools to be used for debt recovery, procedures for each tool,
related penal provision, review of related legislation.

i) Special Provisions
• Tobacco products, stamp and banderol process with related penal provision,
review of related legislation.
• Seasonal Bricks process with related penal provision, review of related legislation.
• Tea and rubber process with related penal provision, review of related legislation.
• Natural Gas process with related penal provision, review of related legislation, etc.

j) VAT Audit
VAT Audit; Objectives of VAT audit; Administrative structure of audit; Types of audit; Criteria
for selection; Notice of audit; Audit process; Information or records which may scrutinized
during audit; review of related legislation.

k) Miscellaneous
Auction, Excise Duty; Surcharge; Any other key areas in VAT regulation and practice in
Bangladesh; Budgetary changes in VAT regulations.

C. Customs Duty, Excise Duty, Registration Fee and Stamp Duty

Students will be able to explain key areas related to Customs Duty, Excise duty, Registration
Fee and Stamp Duty and related compliance requirements.

In the examination, students may be assessed through straight forward scenario related to
key requirements in following areas:

 Customs procedures in general

 Valuation
 Classification and duty structure
 Assessment
 Examination
 Import Conditions and restrictions
 Key issues on Bonded warehouse management (License, Entitlement, Co-
efficient, UP, UD, Audit, etc.)
 Consequences of untrue statement, error and etc.
 Keeping business records.

Compliance process, and computation of Registration

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 ICAB Syllabus (2023)
Certificate Level

Business Laws - 50 Marks

SL Existing Syllabus Deletion Addition Proposed Proposed

Contents Syllabus Weighting
(indicative %)
1 Overview of Companies Act, Overview of Companies 20
1994 Act, 1994 up to section
110.
2 The Negotiable Instruments The Negotiable Instruments Act, 10
Act, 1881 1881

3 The Partnership Act,1932 The Partnership Act,1932 10

4 The Contract Act, 1872: Indemnity, Guarantee The Sale of Goods Act, 1930 The Contract Act, 1872: 10
The Contract Act and The Bailment The Contract Act up to Agency
The Agency Laws, Laws
Indemnity, Guarantee And
and The Bailment
The Sale of Goods Act, 1930

Page 34 of 99
 ICAB Syllabus (2023)
Certificate Level

Information Technology - 50 Marks

SL Existing Syllabus Contents Deletion Addition Proposed Proposed

Syllabus Weighting
(indicative %)
1 Information Systems in Building Information 15
Business Systems

2 Information Technologies Cloud Computing Information Technologies 10

Mobile Computing
Internet of Things
Data Encryption and
Encryption-related
Techniques
3 e-Business Systems Post-implementation Review Managing Information Systems 15

Problem and Incident

Management

Change, Configuration,
Release and Patch
Management

IT Service Level Management

4 Electronic Commerce Systems Electronic commerce Business Continuity Planning 10

fundamentals and Disaster Recovery

e-Commerce
applications and
issues

5 Enterprise Business Systems Customer

relationship
management (CRM)

Enterprise Resource
Planning (ERP)

Supply chain
management (SCM)

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 ICAB Syllabus (2023)
Professional Level

Audit and Assurance – 100 Marks

Module aim

To develop candidates’ understanding of the critical aspects of managing

an assurance engagement (including audit engagements): acceptance,
planning, managing, concluding and reporting.

On completion of this module, candidates will be able to:

Legal, regulatory and ethical issues

• LO1: understand and advise on the regulatory, professional and ethical issues
relevant to those carrying out an assurance engagement;

Accept and manage engagements

• LO2: understand the processes involved in accepting and managing assurance

engagements;

• LO3: explain how quality assurance processes mitigate risks; Plan assurance
engagements

 LO4: plan assurance engagements in accordance with the terms of the

engagements and appropriate standards; and

Conclude and report on assurance engagements

 LO5: conclude and report on assurance engagements in accordance with the

terms of the engagements and appropriate standards.

Method of assessment

The Audit and Assurance module is examined using traditional paper-based

exams. The paper-based exam is 3 hours long. The exam tests each of the four
syllabus areas in accordance with the weightings set out in the specification grid.

Ethics and law may be tested in any of the questions.

ETHICS AND PROFESSIONAL SCEPTICISM

Ethical thinking is fundamental to the conduct of a sound audit. A specific weighting

given to legal and other professional regulations, ethics, accepting and managing
engagements and current issues is shown in the table below. In addition to this a
separate learning outcome covers planning and performing engagements and the
potential risks involved. Students will also be required to demonstrate the crucial
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 role of professional scepticism in the judgement they apply.

Specification grid

This grid shows the relative weightings of subjects within this module and should
guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting (indicative %)

1 Legal and other professional regulations, ethical 30

and current issues

2 Planning and performing engagements 50

3 Concluding and reporting on engagements 20

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

For clarity, learning outcomes applicable to all types of assurance engagements

(including audit) are separated from those that are relevant only to audit
engagements.

Legal, regulatory and ethical issues: LO1

a. Legal and other professional regulations, ethics and current issues

Candidates will be able to understand and advise on the regulatory, professional

and ethical issues relevant to those carrying out an assurance engagement. They
will be able to understand the processes involved in accepting and managing
assurance engagements and how quality assurance processes mitigate the risks to
those conducting the engagement.

In the assessment, candidates may be required to:

All assurance engagements

a. identify and advise upon the professional and ethical issues that may arise
during an assurance engagement;

b. discuss the issues which underlie the agreement of the scope and terms of an
assurance engagement (new or continuing);

c. recognise the professional and ethical issues that may arise during an
assurance engagement, explain the relevance and importance of these issues
and evaluate the relative merits of different standpoints taken in debate;

d. identify the sources of liability (including professional negligence) arising from

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 an assurance engagement and their impact upon the conduct of the
engagement;

e. judge when to raise legal and ethical matters arising from assurance work with
senior colleagues for review and possible referral to external parties;

f. discuss the purposes and consequences of laws and other regulatory

requirements surrounding assurance work;

g. explain the standard-setting process used by national and international

(IAASB) bodies and the authority of the national and international standards;

h. explain, in non-technical language, significant current assurance issues being

dealt with by the national standard-setting body and the IAASB; and

i. explain, using appropriate examples, the main ways in which national

legislation affects assurance.

j. formulate the approach suitable for management of the assurance

engagement;

k. explain the principles and purposes of quality management of assurance

engagements;

l. demonstrate how quality management processes improve the quality of

assurance work;

m. describe how quality can be monitored and managed through procedures

external to the organisation;

n. describe the role of the national and international standards;

Audit engagements

a. explain the main ways in which national legislation and other regulations affect
the scope and nature of the audit and the appointment and removal of auditors
(including the relationship between the law and auditing standards);

b. explain the principles behind different auditing requirements in different

jurisdictions and describe how national and international bodies are working to
harmonise auditing requirements, including requirements to report on internal
controls;

c. describe the principal causes of audit failure and their effects and the gap
between outcomes delivered by audit engagements and the expectations of
users of audit reports; and

d. discuss about the methodology of forensic accounting and auditing including

accounting data, fraud detection, types of fraud, relevant rules and regulations,
etc.

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 Accepting and managing engagements: LO2, 3

3. Accepting and managing engagements:

Candidates will be able to understand the processes involved in accepting

and managing assurance engagements and how quality assurance
processes mitigate the risks to those conducting the engagement.

In the assessment, candidates may be required to:

All assurance engagements

a. identify the legal, professional and ethical considerations that an individual or

firm must consider before accepting a specified assurance engagement;

b. identify the sources of liability (including professional negligence) arising from

an assurance engagement and their impact upon the conduct of the
engagement;

c. discuss the issues which underlie the agreement of the scope and terms of an
assurance engagement (new or continuing);

d. formulate the approach suitable for management of the assurance

engagement;

e. discuss the principles and purposes of quality control of assurance

engagements;

f. demonstrate how the assurance function within an organization can be

monitored; and

g. describe how quality can be monitored and controlled through procedures

external to the organization.

Audit engagements

h. discuss the process by which an auditor obtains an audit engagement;

i. discuss the issues and risks that an individual auditor or audit firm must
consider with regard to the acceptance of an audit engagement (new or
continuing) with a client, including terms of engagement and their
documentation; and

j. identify the legal, professional and ethical considerations that an individual

auditor or audit firm must consider before accepting a specified audit
engagement.

Plan assurance engagements: LO4

1. Planning engagements

Candidates will be able to plan assurance engagements in accordance with

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 the terms of the engagements and appropriate standards.

In the assessment, candidates may be required to:

All assurance engagements

a. explain, in the context of a given scenario, why it is important to have an

understanding of the business when planning an engagement;

b. identify ways of gaining an understanding of a client’s business;

c. recognise the circumstances under which it may be necessary to bring in

expertise (including expertise in cyber security) from other parties to support
assurance processes;

d. identify the risks arising from, or affecting, a given set of business processes
(including risks associated with cyber security) and circumstances and assess
their implications for the engagement;

e. identify the risks arising from error, fraud and non-compliance with law and
other regulations and assess their implications for the engagement;

f. assess significant business risks (including risks associated with cyber

security) identified for their potential impact upon an organization, in particular
their potential impact on performance measurement;

g. identify the components of risk for a specified assurance engagement;

h. assess the impact of risk and materiality on the engagement plan, including
the nature, timing and extent of assurance procedures, for a given
organization;

i. discuss the benefits and limitations of analytical procedures at the planning

stage;

j. determine an approach appropriate for an engagement for a specified

organization which addresses:
• possible reliance on controls (including those within IT systems)
• possible reliance on the work of internal audit
• possible reliance on the work of other experts
• possible reliance on the work of another auditor
• probable extent of tests of controls and of substantive procedures,
including analytical procedures
• the nature and extent of client-generated information
• the probable number, timing, staffing and location of assurance visits the
assurance of entities’ published sustainability and corporate responsibility
repo

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 K. analyse and interpret data extracted from an organisation’s accounting records
and reflected in data analytics software to identify trends and risks of
misstatement

Audit engagements

k. identify the components of audit risk for a specified audit engagement, including
the breakdown of audit risk into inherent risk, control risk and detection risk;

l. outline the aspects of employment and social security law which are relevant to
statutory audit;

m. discuss the differences between the audit of a non-specialised profit-oriented

entity and the audit of a given specialised profit-oriented entity;

n. discuss the differences between the audit of a non-specialised profit oriented

entity and the audit of a given not-for-profit entity;

o. specify and explain the steps necessary to plan, perform, conclude and report
on the audit of the financial statements of a non-specialised profit-oriented
entity in accordance with the terms of the engagement including appropriate
auditing standards; and

p. evaluate the impact of risk and materiality in preparing the audit plan, including
the nature, timing and extent of audit procedures.

Concluding and report on assurance engagements: LO5

2. Concluding and reporting on engagements

Candidates will be able to conclude and report on assurance engagements in

accordance with the terms of the engagements and appropriate standards.

In the assessment, candidates may be required to:

All assurance engagements

a. describe the nature and timing of specific procedures designed to identify

subsequent events that may require adjustment or disclosure in relation to the
matters being reported on;

b. describe the nature and timing of specific procedures designed to identify

the appropriateness of the going concern assumption, including compliance
with relevant legal and regulatory requirements;

c. evaluate, quantitatively and qualitatively (including use of analytical

procedures), the results and conclusions obtained from assurance procedures;

d. draw conclusions on the ability to report on an assurance engagement which

are consistent with the results of the assurance work;
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e. draft suitable extracts for an assurance report (including any report to the
management issued as part of the engagement) in relation to a specified
organization on the basis of given information, including in the extracts (where
appropriate) statements of facts, their potential effects, and recommendations
for action relevant to the needs and nature of the organization being reported
upon;

f. advise on reports to be issued to those responsible for governance in

accordance with International Standards on Auditing, legislation, regulation and
codes of corporate; and

g. judge when to refer reporting matters for specialist help;

Audit engagements

h. draw conclusions on the ability to report on an audit engagement, including the

opinion for a statutory audit, which are consistent with the results of the audit
work;

i. explain the elements (both explicit and implicit) of the auditor’s report issued in
accordance with the International Standards on Auditing and statutory
requirements and recommend the nature of an audit opinion to be given in such
a report; and

j. draft suitable extracts for an audit report (including any report to the
management issued as part of the engagement) in relation to a specified
organization on the basis of given information, including in the extracts (where
appropriate) statements of facts, their potential effects, and recommendations
for action relevant to the needs and nature of the organization being reported
upon.

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 ICAB Syllabus (2023)
Professional Level

Financial Accounting and Reporting – 100 Marks

Module aim

To enable candidates to prepare complete single entity and consolidated

financial statements, and extracts from those financial statements, covering
a wide range of International Financial Reporting Standards (IFRS).

Candidates will also be required to explain accounting and reporting concepts and
ethical issues, and the application of IFRS to specified single entity or group
scenarios.

On completion of this module, students will be able to:

Accounting and reporting concepts and ethics

 LO1: Explain the characteristics, purpose and limitations of financial statements

 LO2: Explain and discuss key financial reporting concepts

 LO3: Identify and explain ethical issues

Single entity financial statements

 LO4: Prepare single entity financial statements

 LO5: Apply IFRS to specific scenarios specified single entity scenarios;

Consolidated financial statements

 LO6: Prepare consolidated financial statements

 LO7: Apply IFRS to specific scenarios

 identify the circumstances in which entities are required to present consolidated

financial statements, prepare and present them in conformity with IFRS®
Standards and explain the application of IFRS® Standards to specified group
scenarios; and

 Describe the principal differences between IFRS Standards and local regulatory
requirements and prepare simple extracts from financial statements in
accordance with local regulatory requirements, for both single entity and
consolidated financial statements.

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 Learning outcomes apply to non-specialized profit-oriented entities unless
otherwise specified.

Method of assessment

The Financial Accounting and Reporting module will be 3 hours long. The module
will include questions on:

a. Preparation of single entity financial statements (excluding statement of cash

flows) from trial balance or draft financial statements;

b. preparation of consolidated financial statements (excluding consolidated

statement of cash flows) from individual financial statements; and

explanation of the application of IFRS Standards to specified scenarios, with

supporting calculations.

Other question types could include:

a. preparation of a full consolidated statement of cash flow, or extracts therefrom,

from consolidated financial statements, or preparation of revised extracts from
a draft consolidated statement of cash flows; and

b. mixed or single topic questions requiring extracts from single entity or

consolidated financial statements (including from statement of cash flows)
and/or explanation of financial reporting treatment with supporting calculations.

Concepts, ethics & relevant local regulatory requirements will be tested in any of
the written test questions.

ETHICS AND PROFESSIONAL SCEPTICISM

Ethical thinking must be the mainstay for honest, true, fair and prudent financial
accounting and reporting. The ability to identify and explain ethical issues is
examined specifically under the syllabus area ‘Accounting and reporting concepts
and ethics’. Over and above this ethical thinking and professional skepticism will
be required to be applied in the exercise of all judgements.

Specification grid

This grid shows the relative weightings of subjects within this module and should
guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting (indicative %)

1 Accounting and reporting concepts and ethics 5-10
2 Single entity financial statements 50-60
3 Consolidated financial statements 25-30
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4. Public Sector Financial Reporting & 10-15
Accounting

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Accounting and reporting concepts and ethics: LO1-3

1. Accounting and reporting concepts and ethics

Candidates will be able to explain the contribution and inherent limitations of

financial statements, apply the International Accounting Standards Board’s
conceptual framework for financial reporting and identify and explain key ethical
issues.

In the assessment, candidates may be required to:

a. explain the standard-setting process used by international bodies and the

authority of international standards, using appropriate examples as illustration;

b. explain the objectives and inherent limitations of financial statements, giving

appropriate examples;

c. explain the qualitative characteristics of financial information and the constraints

on such information, using appropriate examples to illustrate the explanation;

d. identify the financial effects of transactions in accordance with the IAS IFRS
Foundation’s Conceptual Framework for Financial Reporting;

e. discuss the concepts of ‘fair presentation’ and ‘true and fair view’ and the
circumstances in which these concepts may override the detailed provisions of
legislation or of accounting standards;

f. explain the differences between financial statements produced using the accrual
basis and those produced using the bases of cash accounting and break-up,
performing simple calculations to illustrate the differences;

g. explain, in non-technical language, the different bases of measurement of the

elements of the financial statements and the different definitions of capital and
capital maintenance used in accrual basis financial statements, illustrating the
explanation with simple calculations and examples;

h. explain and demonstrate the concepts and principles surrounding the

consolidation of financial statements; and

i. identify and explain the ethical and professional issues for a professional
accountant undertaking work in financial accounting and reporting and identify
appropriate action.

Single entity financial statements: LO4, 5

2 Single entity financial statements

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Candidates will be able to prepare and present financial statements from
accounting data for single entities in conformity with IFRS requirements and explain
the application of IFRS to specified single entity scenarios.

In the assessment, candidates may be required to:

a. identify the laws and regulations, and accounting standards and other
requirements applicable to the statutory financial statements of an entity;

b. calculate from financial and other data the amounts to be included in an

entity’s financial statements according to the international financial reporting
framework;

c. prepare and present the financial statements, or extracts therefrom, of an entity

according to its accounting policies and appropriate international financial
reporting standards;

d. explain the application of IFRS to specified single entity scenarios;

e. define and calculate from information provided the distributable profits of an

entity; and

f. identify the circumstances in which the use of IFRS for not-for-profit entities
might be required.

g. describe the principal differences between IFRS® Standards and local

regulatory requirements and prepare simple extracts from single entity financial
statements inaccordance with the relevant regulatory requirements.

Consolidated financial statements: LO6, 7

3. Consolidated financial statements

Candidates will be able to identify the circumstances in which entities are required
to present consolidated financial statements, prepare and present them in
conformity with IFRS and explain the application of IFRS to specified group
scenarios.

In the assessment, candidates may be required to:

a. identify and describe the circumstances in which an entity is required to prepare

and present consolidated financial statements;

b. identify the laws and regulations, and accounting standards and other
requirements applicable to the legal entity and consolidated financial statements
of an entity;

c. identify from financial and other data any subsidiary, associate or joint venture
of an entity according to the international financial reporting framework;

d. calculate from financial and other data the amounts to be included in an entity’s
consolidated financial statements in respect of its new, continuing and
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 discontinued interests in subsidiaries, associates and joint ventures (excluding
partial disposals of subsidiaries and disposals of associates or joint ventures)
according to the international financial reporting framework;

e. prepare and present the consolidated financial statements, or extracts

therefrom, of an entity in accordance with its accounting policies and the
international financial reporting framework, using calculated amounts and other
information; and

f. explain the application of IFRS to specified group scenarios.

4.Public Sector Financial Reporting & Accounting: Please see separate

syllabus below for it:

PSFRA-PL.docx

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 ICAB Syllabus (2023)
Professional Level

Business Strategy and Technology – 100 Marks

Module aim

To provide candidates with an understanding of how businesses develop and

implement strategy, including any ethical implications.

On completion of this module, candidates will be able to:

Strategic analysis

 LO1: explain, analyse and evaluate the consequences of an organisation’s

current strategic direction including objectives, market position and technology
developments;

Strategic choice

 LO2: use data to evaluate the likely consequences of strategic choices and
technology developments, and recommend strategies to meet the objectives of
an organisation; and

 LO3: recommend strategies to meet the objectives of a business

Implementation and monitoring of strategy

 LO4 : recommend appropriate methods of implementing and monitor strategies

including strategies for technology and innovation, and demonstrate how data
can be used subsequently to measure and monitor strategic performance.

Method of assessment

The Business Strategy module is examined using traditional paper-based exams.

The paper-based exam is 3 hours long. The exam consists of three scenario-based
questions, covering a range of different industries and types of organization. Each
question will cover one or more syllabus areas. Ethics may be tested in any of the
questions.

Ethics must underpin sound strategic and technological development for a

business. Sustainability and the interests of all stakeholder groups are key
considerations. Related learning outcomes are interwoven through the syllabus
areas of Strategic analysis, Strategic choice and Implementation and monitoring
of strategy. Students are expected to develop their skills to ensure business trust
and professional scepticism are paramount.

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 Specification grid

This grid shows the relative weightings of subjects within this module and should
guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting (indicative %)

1 Strategic analysis 30-40

2 Strategic choice 30-40
3 Implementation and monitoring of strategy 25-35

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Strategic analysis: LO1

a. Strategic analysis

Candidates will be able to analyse and identify the consequences of a business’s

current objectives, market position and direction.

In the assessment, candidates may be required to:

b. evaluate a business’s purpose, in terms of its stated mission, objectives and

critical success factors, highlighting omissions, inconsistencies and
weaknesses, and considering the different objectives of stakeholders;

c. analyse for a given situation the external factors which may impact upon a
business’s performance and position, identifying significant issues in areas such
as:

• sustainability issues

• macroeconomic forces

• international trade, financial systems and global economic factors

• government policies

• its industry and markets, including competition

• cultural environment

• stakeholder impact

• markets for finance, labour and other resources

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 • supply chain factors;

d. analyse a business’s current markets and competitive strategy in sufficient detail

for decisions to be made, drawing conclusions consistent with the data and
results and highlighting relevant issues in terms of their likely impact on the
strategy of the business;

e. identify the significance and effect of the internal factors in a given situation
which affect or may influence a business’s ability to achieve its chosen strategy,
including its:

• current resources

• product/service portfolio

• value chain

• organizational and operational capabilities (including core competencies,

existing business processes, human resource capabilities and information
systems capabilities);

• approach to big data.

f. analyse the governance structure of a business identifying strengths and

weaknesses;

g. identify the risk attached to a business’s present position, considering all

relevant factors (including attitudes to risk, security and cyber security);

h. assess a business’s current position and performance from both a financial

perspective and a non-financial perspective, using management information
and data analysis; and

i. explain and evaluate the ethical and business trust factors to be considered in
determining the scope and nature of a business’s objectives and its strategic
analysis, having regard to the legitimate interests of all stakeholder groups.

j. explain and evaluate different types of data distributions and data trends using
appropriate statistical tools, data analysis and spreadsheets, including
consideration of cause and effect and the implications for business risk;

k. evaluate and interpret data provided, including identifying and explaining the
causes and effects of different types of data bias, and applying an appropriate
degree of professional scepticism; and

l. assimilate, structure and analyse transactions and other granular data provided,
usingspreadsheets.

Strategic choice: LO2, 3

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a. Strategic choice

Candidates will be able to evaluate the likely consequences of strategic choices

and recommend strategies to meet the objectives of a business.

In the assessment, candidates may be required to:

a. Explain and demonstrate how to capture and analyse qualitative and

quantitative data, presented in different formats, to provide relevant information
for decision making at an appropriate level within an organisation;

b. identify, describe and evaluate in a given scenario the alternative strategies

available to a business;

c. explain and demonstrate how a business can collect and analyse financial and
other data in order to provide relevant information for strategic decision making
at an appropriate level within the business;

d. identify the implications for stakeholders, including shareholder value, of choice

between strategies;

e. identify the risks attached to proposed courses of action in a given situation,

considering all relevant factors (including attitudes to risk) stating all
assumptions made and identifying strategies for managing risk;

f. show, in a given scenario, how a business chooses from competing strategies

in order to maximise the achievement of its key objectives, including those
relating to corporate responsibility and sustainability;

g. evaluate the ethical implications of a business’s strategies and operations

including those for the organization and for individuals (including the accountant
in business and others);

h. choose, for a given scenario, a strategy or combination of strategies which will

best achieve the business’s objectives, taking account of known constraints,
including stakeholder risk preferences;

i. explain and demonstrate how to position particular products and services in the
market place to maximise competitive advantage and develop a marketing
strategy by selecting, capturingand analysing relevant data;

j. explain, using information provided, how to position particular products and

services in the market place to maximise competitive advantage and develop a
marketing strategy; and

k. explain and demonstrate how a business can use management accounting

techniques to evaluate its proposed strategies, including the risk associated with
forecasts.

l. evaluate the value of information and limitations of data, having regard to data
variability, data bias and risk, and considering the ethical implications of the
selection, capture, analysis and use of data; and
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 m. organise, structure and assimilate historic and estimated data in appropriate
ways, using available statistical tools, data analysis and spreadsheets, to
support business decisions.

Implementation and monitoring of strategy: LO4, 5

3. Implementation and monitoring of strategy

Candidates will be able to recommend appropriate methods of implementing

strategies and demonstrate how management information can be used
subsequently to measure and monitor strategic performance.

In the assessment, candidates may be required to:

a. evaluate, in a given scenario, the functional strategies necessary to achieve a
business’s overall strategy;
b. evaluate how strategies for technology and innovation, including digital assets,
automation, intelligent systems, workforce flexibility and shared service centres,
can support the organisation’s achievement of its overall strategy;
c. evaluate the different types of organizational structure and recommend an
appropriate structure for a given strategy;
d. identify the steps needed for a given business to develop its corporate
governance to meet the needs of its strategic objectives and external
requirements;
e. identify and evaluate methods of further developing a specific business which
adjust existing strategies or implement new strategies to take account of
changing position and risk;
f. draft a simple business plan, or extracts therefrom, which will achieve given or
implied objectives;
g. evaluate the form and content of an entity’s business plan and prepare a
business plan, or extracts, which will achieve given or implied objectives
h. explain and demonstrate how financial and non-financial data, including budgets
and other management information, can be analysed in order to implement and
manage a business’s strategy and to monitor the performance of its projects,
divisions and other strategic units;
i. explain and demonstrate how a business can collect and analyse data, including
big data, to provide management accounting and other management
information that enables it to implement, monitor and modify a strategy and to
create or sustain competitive advantage;
j. identify in a given situation the key issues which should be addressed by the
management of a business during the planning and implementation of change;
and
k. evaluate the ethical implications of how a business chooses to implement and
modify its strategies, suggesting appropriate courses of action to resolve ethical
dilemmas that may arise.

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 ICAB Syllabus (2023)
Professional Level

Financial Management - 100 Marks

Module aim

To enable candidates to recommend relevant options for financing a

business, recognise and manage financial risks and make appropriate
investment decisions.

On completion of this module, candidates will be able to:

Financing options

 LO1: identify capital requirements of businesses;

 LO2: assess financing options and recommend relevant methods of financing;

Managing financial risk

 LO3: identify the financial risks facing a business and the principal methods of
managing those risks; and

Investment decisions and valuation

 LO4: apply appropriate investment appraisal techniques taking into account

other factors affecting investment decisions.

Method of assessment

The Financial Management module is examined using traditional paper-based

assessments. The paper-based exam is 3 hours long.

Ethics may be tested in any of the questions.

ETHICS AND PROFESSIONAL SCEPTICISM

In identifying financing options, managing financial risk and arriving at appropriate

investment decisions, underlying ethical thinking is a requirement. The implications
of financial strategy for all stakeholders must be evaluated and any ethical dilemmas
resolved. Students will also be expected to apply professional scepticism and critical
thinking when making all judgements.

Specification grid

This grid shows the relative weightings of subjects within this module and should
Page 53 of 99
 guide the relative study time spent on each. Over time the marks available in the
assessment will equate to the weightings below, while slight variations may occur
in individual assessments to enable suitably rigorous questions to be set.

Syllabus area Weighting (indicative %)

1 Financing options 35
2 Managing financial risk 30
3 Investment decisions and valuation 35

The following learning outcomes should be read in conjunction with the relevant
sections of the technical knowledge grids.

Financing options: LO1, 2

1. Financing options

Candidates will be able to identify capital requirements of businesses and assess

financing options. In the assessment, candidates may be required to:

a. explain the general objectives of financial management, understand and apply

the fundamental principles of financial economics and describe the financial
strategy process for a business;

b. explain the roles played by different stakeholders, advisors and financial

institutions in the financial strategy selected by a business and identify possible
conflicts of objectives;

c. evaluate the ethical implications of an entity’s financial strategy (including those

for the organization, individuals and other stakeholders) and suggest
appropriate courses of action to resolve any ethical dilemmas that may arise;

d. describe and analyse the impact of financial markets (including their efficiency)
and other external factors on a business’s financial strategy, using appropriate
examples to illustrate the impacts;

e. explain the implications of terms included in loan agreements in a given scenario

(eg, representations and warranties; covenants; guarantees);

f. identify the significance and effect of developing technologies on financing

decisions;

g. calculate and interpret the costs of different sources of finance (before and after
tax) and the weighted average cost of capital;

h. concepts of Islamic finance;

i. explain, in non-technical terms and using appropriate examples, the effect of

capital gearing both on investors’ perception of risk and reward and the weighted
average cost of capital;

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 j. calculate and justify an appropriate discount rate for use in an investment
appraisal taking account of both the risk of the investment and its financing;

k. compare the features of different means of making returns to lenders and

owners (including dividend policy), explain their effects on the business and its
stakeholders, and recommend appropriate options in a given scenario;

l. forecast the capital requirements for a business taking into account current and
planned activities and/or assess the suitability of different financing options to
meet those requirements, comparing the financing costs and benefits, referring
to levels of uncertainty and making reasonable assumptions which are
consistent with the situation; and

m. draft a straightforward investment and financing plan for a given business

scenario.

n. organise, structure and assimilate data in appropriate ways, using available

statistical tools,data analysis and spreadsheets, to support business decisions.

Managing financial risk: LO3

2. Managing financial risk

Candidates will be able to identify the main price and overseas trading risks facing
a business and the principal methods of managing those risks.

In the assessment, candidates may be required to:

a. identify and describe the key price risks facing a business in a given scenario;

b. explain how financial instruments (e.g., derivatives, hedging instruments) can

be used to manage price risks and describe the characteristics of those
instruments;

c. explain different methods of managing interest rate risk appropriate to a given

situation and perform non- complex calculations to determine the cost of
hedging that risk;

d. explain different methods of managing currency risks appropriate to a given

situation and perform non- complex calculations to determine the cost of
hedging that risk;

e. explain different methods of managing share price risk and perform non-
complex calculations to determine the cost of hedging that risk; and

f. explain the additional risks of trading abroad and outline the methods available
for reducing those risks.

Investment decisions and valuation: LO4

5. Investment decisions and valuation

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Candidates will be able to apply investment appraisal techniques and calculate the
value of shares and businesses.

In the assessment, candidates may be required to:

a. outline the investment decision making process and explain how investment
decisions are linked to shareholder value;

b. appraise an investment from information supplied, taking account of relevant

cash flows, inflation and tax;

c. calculate and discuss the sensitivity of an investment decision to changes in the

input factors;

d. discuss how the interpretation of results from an investment appraisal can be

influenced by an assessment of risk;

e. explain how the results of the appraisal of projects are affected by the accuracy
of the data on which they are based and strategic factors (such as real options)
which could not be included in the computational analysis;

f. identify in the business and financial environment factors that may affect
investment in a different country;

g. calculate the optimal investment plan when capital is restricted;

h. recommend and justify a course of action which is based upon the results of an
investment appraisal and consideration of relevant non-financial factors such as
sustainability and which takes account of the limitations of the techniques being
used; and

i. describe options for reconstruction (e.g., merger, takeover, spin-off, purchase

of own shares and value shares and businesses using income and asset based
approaches).

j. organise, structure and assimilate data in appropriate ways, using available

statistical tools, data analysis and spreadsheets, to support business decisions.

Page 56 of 99
 ICAB Syllabus (2023)
Professional Level
Business Planning: Taxation & Compliance – 100 Marks

MODULE AIM

To develop students’ understanding of the critical aspects of Bangladesh Taxation;

application of the knowledge gained at the Certificate Level study in the areas of tax
compliances, tax principles, management, administration, computation, collections,
payments, return preparation, filing, dispute issues and Value Added Tax (VAT) rules.

On completion of this module, students will be able to:

• recognize the ethical issues arising while performing tax work and identify the obligations
the Bangladesh system of taxation imposes on taxpayers and the implications for
taxpayers of noncompliance;
• deal with tax research, tax compliances, tax planning, and decision making in complex tax
scenario and calculate tax payable by individuals, and businesses
• deal with provisions of double taxation relief, transfer pricing and other important areas of
international taxation.
• calculate the amount of VAT and other indirect taxes payable by businesses;

METHOD OF ASSESSMENT

The Tax Planning and Compliance module is assessed by a 3-hour written exam. The
questions cover the areas of the syllabus in accordance with the weightings set out in the
specification grid. Students will be assessed through computations, advice, planning
and problem solving in case-based scenario.

Students will be assessed based on latest tax legislation, rules, regulations, etc. in a way
that exams in November-December session may cover changes up to August and exams
in May-June session may cover changes up to February of the respective year.

SPECIFICATION GRID

This grid shows the relative weightings of subjects within this module and should guide
the relative study time spent on each. The marks available in the assessment will equate
to the weighting ranges below.
Syllabus area Weighting
Range*

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 A. Income Tax

A1. Critical aspects of income tax, administrative functioning, dispute 10-15

resolution, gift tax including ethical aspects in income tax practice.
A2. Tax planning for individual, business or profession 25-30

A3. International taxation: Treaties and transfer pricing 10-15

B. Value Added Tax 30-35

C. Customs 15-20

*Total marks in examination will be 100.

Following learning outcomes should be read with in conjunction with the relevant sections
of the technical knowledge grids.

A. Income Tax

A1. Critical aspects of income tax, administrative functioning, dispute resolution, gift
tax including ethical aspects in income tax practice.

Students will be able to identify critical aspects of Bangladesh income tax system,
structure of tax administration, different aspects of tax compliance and dispute resolution
process in Bangladesh Income Tax Regulations. In the examination, students may be
assessed through problem solving in complex scenario in following areas:

a) Sources and structure of Bangladesh income tax law

Objective and importance of income tax; Role of income tax in economic development of
Bangladesh;
Bangladesh tax structure; Scope of Bangladesh income tax; Sources of tax law and
practice; Legislation; Case Law; NBR Publications; Structure of Income Tax Act, 2023;
The concept of income; Capital or revenue; Tax residence; Tax and income tax; Tax
liability on income; Different rates of tax; Changes in Finance Act; Changes through SROs
and other notifications.

b) Administration and Tribunal

Various income tax authorities; Appointment of income tax authorities; Subordination and
control of income tax authorities; Jurisdiction of income tax authorities; Exercise of
jurisdiction by successor; Officers to follow instruction of the board; Guidance to the deputy
commissioner of taxes; Exercise of assessment functions; System of Tax Zone and
Circles; Powers of income tax authorities; Establishment of Appellate Tribunal; Exercise
of power of the tribunal by Benches; Decision of Bench; Exercise of Power by one member;
Taxes Appellate Tribunal’s procedures; Organization structure of income tax authorities.

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c) Return, statement, and furnishing certain information

Return of income; Form of submission of return; Signature and verification of return; Tax
day; Delay interest for filing return after tax day; Documents to be submitted along with the
return of income; Return of withholding tax; Obligation to furnish annual information return;
Concurrent jurisdiction; Notice; Filing of revised return; Production of accounts and
documents; Statement of assets, liabilities, and expenditure and life style statement;
Production of other information; Requirement of furnishing certain information regarding
payment of salary, dividend, interest and etc. Any other requirements of return, statement,
furnishing information under income tax Act.

d) Assessment

Provisional assessment; Assessment on the basis of correct return; Universal self-

assessment; Minimum tax; Spot assessment; Assessment on the basis of hearing;
Assessment on the basis of report of the chartered accountant; Best judgment
assessment; Income escaping assessment; Any other types of assessment as per income
tax Act; Limitation for assessment.

e) Tax appeal and references

Appeal against order of DCT and IJCT; Tax payment before appeal; Fees for appeal; Time
limits for appeal; Appeal before the Appellate Joint Commissioner Or The Commissioner
[Appeals]; Appeal against order of TRO; Appeal to Tax Appellate Tribunal; Reference to
high court division of the Supreme Court; Appeal to appellate division; Certified Copy.

f) Alternative Dispute Resolution

Alternative Dispute Resolution (ADR); Eligibility for application; Application procedure for
ADR; Procedures of disposal by the ADR; Eligibility for appointment as Facilitator;
Decision of the ADR; Effect of agreement; Limitation of appeal where agreement is not
concluded; Fees to be paid to facilitator.

g) Power of tax authorities

Power to call for information; Power to inspect registers of companies; Power of survey;
Additional powers of enquiry and production of documents; Power of search and seizer;
Power to verify deduction or collection of tax; Retention of seized assets; Application of
retained assets; Power of IJCT to revise orders of DCT; Revisional power of
commissioners; Power to take evidence on oath.

h) Gift Tax

Imposition of Gift Tax, Exempted Gifts, Methods of determining value of the Gifts,
Submission of return, payment of tax, any other important provisions related to Gift Tax.

i) Ethics and law

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• The five fundamental principles and guidance given in the ICAB Code of Ethics for
Professional Accountants.
• Legal and ethical issues arising from tax work undertaken and explain the significance of
these issues.
• Fundamental principles, threat and safeguards.
• Ethical conflict resolution.
• Confidentiality and disclosure of information.
• Conflict of interest.
• Basic principles of taxation work.
• Anti-money laundering.
• Tax planning, tax avoidance, and tax evasion.

A2. Income tax of individuals, business or profession

Students will be able to deal with computations, professional advice, tax planning and
problem solving in complex case-based scenario in various areas of individual and
corporate tax including but not limited to taxation of companies having both manufacturing
and trading activities, 163 and non-163, reduced rate and full rate, export income and local
income, carry forward and losses, discontinued operations, amalgamation or merger and
acquisition, business restructuring, and etc.

In the examination, students may be assessed through problem solving, tax planning, tax
research and writing professional advice in following areas:

a) Charge of tax

Charge of income tax; Charge of surcharge; Charge of additional tax; Charge of minimum
tax; Scope of the total income; Income deemed to accrue or arise in Bangladesh; Special
tax treatment in respect of some expenditure, investments etc.

b) Heads of income:

• Income from employment

Concept of salary and perquisites; Valuation of perquisites, allowances, and benefits to be
included in income from salary; Contribution to different types of provident funds, and other
funds; Non assessable income under the head salaries.

• Income from financial assets

Scope of interest on securities; Nature of securities; Types of securities; Cum-interest vs.
ex-interest; Bond washing transaction through sale and buy back of securities; Expenses
admissible; Tax free securities.

• Income from rent

Scope of House Property; Computation of annual value; Impact of self-occupancy;
Allowable deductions; Non assessable income; Formalities to be followed by landlord; Tax
to be deducted at source from house property.

• Income from agriculture

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 Basics of agricultural income; Characteristics of agricultural income; Categories of
agricultural income; Non-agricultural income; Income from agricultural house property;
Allowable deductions; Non-assessable agricultural income.

• Income from business

Scope of income from business and profession; Allowable deduction in computing income
from business and profession; Expenses not admissible income from business and
profession; Capital and revenue expenditure; Test for determining an expenditure as either
capital or revenue nature; Balancing charge; Compensation received from insurance
company; Fractional income in certain cases; Entertainment expense; Foreign travel
allowance of employees; Free sample distribution; Perquisites; Expenses allowed up to a
certain percentage; Expenses which are capital expenditure as per IFRSs but allowable
as revenue expenses as per ITA; Minimum Tax.

• Capital gains
Determination of fair market value; Offer to buy the capital assets by the Government;
Transfer of capital assets used in the business; Tax exempted capital gains; No exemption
on certain assets if investment allowance is received; Tax rate in respect of capital gain;
Special tax rates on capital gain from sale of shares of listed companies; Apportionment
of sale proceeds between original cost and subsequent improvements.

• Income from other sources

Identify income from other sources; Royalty; Fees for technical services; Income from
letting of factory building along with machinery; Deemed income; Allowable deductions;
Inadmissible deductions.

c) Depreciation allowances

Basics of depreciation allowances; Depreciation allowance for different heads of income;

Depreciation allowance on assets used for agricultural purpose; Depreciation allowance
on assets used in business or profession; Types of depreciation allowances; Normal
depreciation allowance; Initial depreciation allowance; Other depreciation allowance;
Written down value of assets for depreciation purpose; Disposal of assets and treatment
of gain or loss; Amortization of license fees; Limitation in respect of depreciation
allowance; Assignment of unabsorbed depreciation; Computation of depreciation
allowance.

d) Set-off and carry-forward of losses

Set off of losses; Procedure to set off; Carry forward of business losses; Set off and carry
forward of loss in speculation business; Set off and carry forward of loss under the head
‘capital gains’; Set off and carry forward of loss from agriculture; Carry forward of loss of
firm and partner; Carry forward of loss of succeeded business or profession; Carry forward
of unabsorbed depreciation; Carry forward of loss of tax holiday undertaking; Procedures
of carry forward.

e) Exemptions and tax holiday

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 Tax holiday schemes; Exemption under section 44; Types of business eligible for tax
holiday; Categories of industries within the meaning of industrial undertaking; Categories
of infrastructure within the meaning of physical infrastructure facilities; Conditions for
eligibility; Application procedure and its disposal by the NBR; Withdrawal and cancellation
of tax holiday; Period of tax holiday for industrial undertaking; Period of tax holiday for
physical infrastructure facilities; Conditions to be fulfilled after getting tax holiday;
Documents to be submitted with tax holiday application; Tax exemption of industry set up
at EPZ; Special tax exemptions/reduced rates/ concessions in respect of certain
industries.

f) Payment of tax before assessment

Deduction or collection at source; Advance payment of tax; Person responsible for tax
deduction at source; Time limit for payment of tax deducted at source; Manner of payment
of tax deducted at source; Issuance of certificates for tax deducted at source; Rates of
TDS; TDS treated as minimum tax under section 82C; Other important areas related to
TDS; Consequence of failure to deduct; Requirement to pay advance tax; Computation of
advance tax; Installments of advance tax; Estimate of advance tax; Advance payment of
tax by different types of assessee; Failure to pay installments; Levy of simple interest for
failure to pay advance tax; Credit of advance tax; Interest payable by Government on
excess payment of advance tax; Interest payable by assessee on deficiency in payment
of advance tax; Payment of tax on the basis of return.

g) Income tax of individuals

Definitions; Scope of income of individual assessee; Residential Status; Non assessable

and tax credit income; Tax rate of individuals; Investment allowances; Minimum Tax;
Computation of total income and tax liability of individuals; Preparation and filing return of
income of individuals; Assessment procedures.

h) Income tax of companies

Definitions; Residential status of companies; Tax rates; Exemptions and allowances;

Computation of taxable income and tax liability of companies; Set-off and carry forward of
losses; Minimum Tax; Tax credit; Corporate Social Responsibilities; Preparation and filing
return of income; Assessment procedures.

i) Income tax of partnership firms

Assessment of partnership firms; Special provisions regarding assessment of partnership

firms; Rate of tax applicable to firm; Set-off and carry forward of firm’s losses; Computation
of partners share in the firm’s profit or loss; Liability of a firm for unrecoverable tax due
from partners.

j) Assessment of non-residents and liabilities in special cases

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 Liability of representative in certain cases; Persons to be treated as agent; Right of
representative to recover tax paid; Liability of firm for unrecoverable tax due from partners;
Liability of partners for discontinued business of a firm; Liability of directors for
unrecoverable tax of private companies; Liability of liquidator for tax of private companies
under liquidation; Liability of tax in case of shipping business of non-residents; Liability of
tax in case of air transport business of non-residents; Taxation of discontinued operation,
merger and acquisition and etc.

k) Special provisions relating to avoidance of tax

Avoidance of tax through transactions with non-residents; Avoidance of tax through

transfer of assets; Avoidance of tax by transactions in securities; Tax clearance certificates
required for persons leaving Bangladesh; Form of tax clearance and exemption
certificates.

l) Recovery of tax

Tax to include Penalty, Interest, Etc.; Notice of demand; Penalty for default in payment of
tax; Certificate for recovery of tax; Method of recovery by Tax Recovery Officer; Power of
withdrawal of certificate and stay of proceeding; Validity of certificate for recovery;
Recovery of tax through collector of district; Recovery of tax through special magistrates;
Other methods of recovery.

m) Refunds

Requirement to issue refund voucher; Entitlement to refund; Claim of refund; Correctness

of assessment, Etc., not to be questioned; Refund on the basis of appeal order; Form of
claim and limitation; Interest on delayed refund; Adjustment of refund against tax.

n) Appeal and references

Appeal against order of DCT and IJCT; Tax payment before appeal; Fees for appeal; Time
limits for appeal; Appeal before the Appellate Joint Commissioner Or The Commissioner
[Appeals]; Appeal against order of TRO; Appeal to Tax Appellate Tribunal; Reference to
high court division of the Supreme Court; Appeal to appellate division.

o) Penalty, offences and prosecutions

Penalty for not maintaining accounts in the prescribed manner; Penalty for failure to file
return, certificate, statement, accounts of information; Penalty for using fake TIN; Penalty
for failure to pay advance tax; Penalty for non-compliance with notice; Penalty for failure
to pay tax on the basis of return; Penalty for concealment of income; Bar to impose penalty
without hearing; Previous approval of IJCT for imposing penalty; Penalty to be prejudice
to other liability; any other penalty as per income tax Act.

Punishment for non-compliance of certain obligations; Punishment for false statement;

Punishment for improper use of TIN; Punishment for using fake audit report; Punishment

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 for obstructing income tax authority; Punishment for unauthorized employment;
Punishment for concealment of income; Punishment for disposal of property to prevent
attachment; Punishment for disclosure of protected information; Sanction for prosecution;
Power to compound offenses; Trial by special judge.

p) Accounting

Methods of accounting; Change of accounting method; Requirement of a company to

furnish audited accounts.

A3. International taxation: Treaties and transfer pricing

Students will be able to understand implications of key provisions in treaties and transfer
pricing regulations in Bangladesh, undertake strategic planning, identify transfer pricing
compliance requirements and deal with compliance process including identification of
international transactions, selecting most appropriate method, using transfer pricing
databases to determine arm’s length price and etc.

In the examination, students may be assessed through problem solving, strategic planning
and writing professional advice in following areas:

a) Double Taxation Relief and Treaties.

 Meaning of Double taxation.
 Agreement of avoidance of double taxation.
 Relief in respect of income arising outside Bangladesh.
 Methods of avoiding double taxation.
 Tax treaty and OECD Model Tax Convention.
 Enforceability of the treaties.
 Interpretations of the important concepts used in treaties.
 Important areas addressed in treaties between Bangladesh and other countries.
 Understanding difference in the definition of ‘Permanent Establishment’ in ITA, 2023,
traditional treaties, and OECD model tax convention.
 Attribution of profits to a Permanent Establishment.
 How is business profit of a foreign company carrying out activities in Bangladesh
through a Permanent Establishment to be taxed in Bangladesh?
 How are capital gains, dividend etc. taxed using treaties?
 Provision for obtaining certificate from NBR to avail treaty benefit.
 Other commonly used provisions of treaties.

b) Transfer Pricing
 Concept of transfer pricing.
 Overview of OECD guidelines related to transfer pricing.
 Transfer pricing regulations in Bangladesh.
 Understanding ‘International Transaction’ in ITA, 2023.
 Who are required to comply with transfer pricing regulations in Bangladesh?
 What are the compliance requirements under transfer pricing regulations in
Bangladesh?
 Arm’s length price.

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  Methods of determining arm’s length price.
 Application of different methods of determining arm’s length price.
 Selection of most appropriate method for different nature of transactions.
 Benchmarking and use of databases.
 Comparability Adjustments.
 Transfer Pricing Adjustment.
 Submission of statement of international transactions.
 Maintenance of transfer pricing documentations.
 Key contents of a transfer pricing documentation report.
 Certificate from an accountant.
 Assessment of transfer pricing cases.
 Penalties in transfer pricing regulation.
 Recent developments in transfer pricing global best practice.
 Strategic planning in different areas of international taxation.

B. Value Added Tax

Students will be able to identify various compliance requirements under Value Added
Tax (VAT) system in Bangladesh, compute VAT payable, and deal with compliance
process in relation to VAT. They will be able to design industry specific Standard
Operating Procedure (SOP) for major industries in Bangladesh. In the examination,
students may be assessed through complex scenario in following areas:

A) Concept of Value Added Tax

Similarities and dissimilarities between VAT and Income Tax; Advantages of VAT over
Sales Tax and Excise Duty; Impact of VAT on national development; Role of VAT
chain in establishing financial integrity; Tax expenditure; distortions in Bangladesh
VAT system; introduction of online VAT systems.

B) VAT Planning

Planning for the components of VAT SOP for major 5-6 industries considering rates,
place of imposition, registration, threshold, exemptions, zero rating, VAT
administration, cross-border transaction, accounting, return filing, central or branch
registration, compliance checklist and Complex areas for each industry.

C) VAT Compliance Issues

(i) Registration:

Central and branch registration; Conditions for branch registration; preparation of

registration application; Submission of application; Registration suspension and
cancellation; Transferring Commissionerate; Updating registration information,
Shifting Enlistment to Registration and vice versa; VAT Agent, VAT Consultant,
Registration and enlistment related forms; DOs & DON’Ts checklist for registration.

(ii) VAT Assessment:

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Valuation: Preparation of value Declaration for major industries; Use of Fair market
price for value determination, Valuation for services; Value declaration form
preparation for manufacturer, commercial trader and service renderer. Review
process for value declaration; Preparation a review application in case of increase
value by commissioner; Art of presenting arguments before commissioner during
personal hearing; Price determination in various special case, Costing and Valuation;
Declared value versus transaction value complexity in ledger adjustment, DOs &
DON’Ts checklist for valuation

Output Tax: Determining adjustment process for real-time price and declared value in
case of
differences; Case studies; DOs & DON’Ts checklist for output tax calculation

Input Tax Credit: Critical situations for credit: payment through banking channel, in
case of bank guarantees, bartered transaction, partial credit for different situations;
credit mechanism for real estate sector, construction sector, etc., DOs & DON’Ts
checklist for credit

Adjustments: Debit note and credit note; defining different scenarios of adjustment
and developing checklist of legal & procedural requirements for each adjustment; DOs
& DON’Ts checklist for adjustments

Net Tax Calculation & Payment: Determination of net tax using different set of business
transaction for different industries.

(iii) VAT Accounting

Invoices: Issuance of different types of invoice in different situations; Designing

invoices for different industries and technologies like POS, ECR/EFD; Use of software
and integration with NBR system;, Use of Electronic Fiscal Device (EFD), Electronic
Fiscal Printer (EFP), and Point of Sale (POS) software, List of NBR enlisted software,
Special provisions for invoice: Utility services, telco services, banking services, ride
sharing services, C&F service, Insurance service, etc., DOs & DON’Ts checklist for
invoicing system

Inventory: Case study and practical exercise on the filling up of the inventory register
(Purchase Register & and Sales Register) with different data set of different industries
from both Goods and service sectors. Maintaining different forms, filing process,
adjustment for input-output coefficient mismatch, DOs & DON’Ts checklist for
inventory management

Account Current: Ways of reducing account current balance to reasonable amount;

Migration from 1991 VAT act-based account current to new system under 2012 act-
based system; Prepaid Vs Postpaid system in VAT system; Process of maintaining
account current, DOs & DON’Ts checklist for cash flow management

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 Other books of records Debit Note: Develop SOP for use of debit note, credit note,
commercial books of records.

(iv) Return Filing

Preparation for backward excel based calculations for each component of return; Data
extraction from General Ledger for preparing return; Synchronizing existing software
with return; Relation for return with Price declaration form, Invoice, Inventory registers,
Account current and other VAT and commercial documents.

D) Zero rates
(i) Process: Develop SOP for Exports (Deemed and Direct exports) including bonded
warehouse. (ii) Duty Drawback: DOs & DON’Ts checklist for drawback; Parallel
Cash incentive and drawback.

E) Refund
Develop SOP for Refund process covering critical situations.

F) Litigation:

(i) Quasi-judicial proceeding

Case Management: Techniques of reviewing case, Seizure report and SCN and
preparing review check list; Art of writing a good reply for SCN; Presenting in Hearing;
Techniques of giving good arguments and counter logic in hearing; code of conduct
in quasi-judicial courts.

Appeal: Reviewing Adjudication order, preparing a good petition; Presenting in Hearing;

Techniques of giving good arguments and counter logic in hearing; code of conduct in
quasi-judicial courts

G) VAT Audit
Dealing audITArs;

H) Miscellaneous
Different relevant issues.

VAT on Cross-border Transactions

 Place of taxation rules

 Modes of cross-border transactions
 Electronic transactions
 Taxation in different situations and design the solutions
 Future threats of VAT

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 Skills How skills are assessed?

Assimilating and using information: Candidates may be required to identify tax

• Understand the situation and the implication of proposed transactions,
requirements calculate taxable income and tax liability in
• Identify and use facts, figures and case type scenarios, explain tax treatment
relevant information based on given unstructured information,
• Identify and priorities key issues identify alternative tax treatments, and
identify ethical issues in given scenarios.
Structuring problems and solutions Candidates may be required to identify tax
• Structure data in accordance with the implication, and compute tax liability in
requirements given scenario; demonstrate technical
• Apply technical knowledge and skills to skills, use accurate calculations to
develop evidence-based solution illustrate a solution; and decision making
in complex tax scenarios.
Applying Judgment Candidates may be required to critically evaluate
Apply professional skepticism fact, figures and tax implication in given tax
Demonstrate critical thinking scenarios, assess alternative options and consequences
of various courses of action.
Concluding, recommending and Candidates may be required to analyze
communicating given circumstances, determine tax
• Apply technical knowledge to support implications, develop solution and reach a
conclusion reasoned conclusion.
• Present analysis and recommendations in
accordance with
the requirements
• Present solution in a clear and concise
style

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 ICAB Syllabus (2023)
Professional Level

Corporate Laws & Practices – 100 Marks

SL Existing Syllabus Contents Dele Addition Proposed Syllabus Proposed

tion Weighting

(indicative
%)
1 The Companies Act 1994 and Secretarial The Companies Act 1994 and Secretarial 25
Practices Practices (from section 111 to end.)

2 Laws relating to the Securities and Exchange Laws relating to the Securities and Exchange 25
Commission Commission

3 Financial Reporting Act 2015 Financial Reporting Council Financial Reporting Act 2015 10
(Auditor & Audit Firm
Enrollment) Rules, 2022 And

Financial Reporting Council (Auditor & Audit Firm

Enrollment) Rules, 2022

4 The Bank Company Act 1991; The Bank Company Act 1991; 15

The Financial Institutions Act 1993

The Financial Institutions Act 1993 5

5 The Insurance Act 2010; The Insurance Act 2010; 10

The Bangladesh Labour Act, 2006 (Amended in

2013) and
The Bangladesh Labour Act, 2006 (Amended in
Bangladesh Labour Rules 2015 2013) and
10
Bangladesh Labour Rules 2015

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 ICAB Syllabus (2023)
Professional Level

IT Governance – Marks 100

SL Existing Syllabus Contents Dele Addition Proposed Syllabus Proposed

tion Weighting

(indicative
%)
1 Information Technology Policies and Information 15
Laws Technology Policies and
Laws
National IT Policy, 2018
2 Decision Support Systems Understanding Cloud technologies Management information systems 15
and developments in technology

3 IT Governance, Organization and Strategy IT-related Frameworks IT Governance, Organization and 20

Strategy
IT Standards, Policies and Procedures

Organizational Structure

Enterprise Risk Management

Maturity Models

IT Service Provider Acquisition and

Management

IT Performance Monitoring and Reporting

4 Information Systems Security Current state Physical Access and Environmental Controls Information Systems Security 25
of cyber law
Identity and Access Management
Other
challenges Network and End-point Security

5 Developing Business/IT Solutions Developing

Business/IT
Solutions

6 Information Systems Auditing Control Self-assessment Information Systems Auditing 25

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 ICAB Syllabus (2023)
Advanced Level

Corporate Reporting

Module aim

To enable candidates to apply technical knowledge, analytical techniques and

professional skills to resolve financial reporting issues that arise in the context of
the preparation and evaluation of corporate reports and from providing audit
services.

Students will be required to use technical knowledge and professional judgement to identify,
explain and evaluate alternatives. The commercial context and impact of recommendations
and ethical issues will also need to be considered in making such judgements.

On completion of this module, students will be able to:

 formulate, implement and evaluate corporate reporting policies for single entities
and groups of varying sizes and in a variety of industries. They will be able to
discern and formulate the appropriate financial reporting treatment for complex
transactions and complex scenarios. Students will be able to evaluate and apply
technical knowledge from individual accounting standards and apply professional
skills to integrate knowledge where several accounting standards are
simultaneously applicable and interact.
 analyse, interpret, evaluate and compare financial statements of entities both
over time andacross a range of industries.
 explain the processes involved in planning an audit, evaluate internal controls,
appraise risk including analysing quantitative and qualitative data, gather
evidence including using data analytics software to draw conclusions in
accordance with the terms of the engagement. In addition, they will be able to
perform a range of assurance engagements and related tasks.
 evaluate corporate reporting policies, estimates and disclosures in a scenario in
order to be able to assess whether they are in compliance with accounting
standards and are appropriatein the context of audit objectives.
 identify and explain ethical issues. Where ethical dilemmas arise, students will
be able to recommend and justify and determine appropriate actions and
ethical safeguards to mitigatethreats.

PRIOR KNOWLEDGE

This module assumes and develops the knowledge and skills acquired in the
Financial Accountingand Reporting module and in the Audit and Assurance module.

Background knowledge based upon the strategic elements of the Business

Planning modules, Business Strategy and Technology and Financial Management
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 modules will also be required in evaluating the business and financial risks of
reporting entities.
Regulation

The regulations relating to auditing and corporate reporting will have international
application and are therefore based upon IFRS standards and ISAs issued by the
International Accounting Standards Board. ……(…Conflicts if we insert about BB, BSEC etc
later end )…..
Method of assessment

Corporate Reporting will be examined using a paper-based assessment of 3.5

hours. Each exam will contain questions requiring integration of knowledge and
skills, including ethics. The exam will consist of three questions. Ethical issues
and problems could appear in any of the three questions.

One question will require students to use data analytics software

to assist in preparing the answer, and for that question Advance
ETHICS AND PROFESSIONAL SCEPTICISM

At the Advanced Level, students will be expected to demonstrate the higher skills of
sound, discerning business judgement and critical evaluation. The use of professional
scepticism in a complex scenario is a necessary skill for the trusted business
professional. The ethical implications of complex scenarios will be both at the
organisational level and at the personal level for individuals. Professional scepticism
and ethical judgement are paramount whether the accountant be in public practice or
in business. The importance of ethical practice is reflected in ethics being covered in
its own specific syllabus area as well as featuring in the integrated learning outcomes.
Social responsibility, sustainability and environmental matters, identifying earnings
manipulationand creative accounting are included as these areas require higher
skills of judgement and evaluation. The ethical codes referenced will be those
issued by IESBA and ICAB.

SPECIFICATION GRID

This grid shows the relative weightings of subjects within this module and should guide the
relative study time spent on each. Over time the marks available in the assessment will be
within the ranges of weightings below, but slight variations may occur in individual
examinations to enable suitably rigorous questions to be set.

SYLLABUS AREA WEIGHTING

Corporate Reporting – Compliance 45-55%
Corporate Reporting – Financial Statement Analysis
10-15%

Audit and Assurance 30-40%

Ethics 5-10%

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 The following learning outcomes should be read in conjunction with the relevant sections
of the technical knowledge grids from at the end of this document.
CORPORATE REPORTING – COMPLIANCE

Students will be able to formulate, implement and evaluate accounting and reporting policies
for single entities and groups of varying sizes and in a variety of industries. They will be able
to discern and formulate the appropriate financial reporting treatment for complex transactions
and complex scenarios. Students will be able to evaluate and apply technical knowledge from
individual accounting standards and apply professional skills to integrate knowledge where
several accounting standards are simultaneously applicable and interact.

In the assessment, students may be required to:

1. PRINCIPLES

a. explain the impact of accounting principles and bases of measurement in corporate

reporting, for example fair value measurement;

b. appraise corporate reporting regulations, and related legal requirements, with respect
to presentation, disclosure, recognition and measurement. Appraise relevant financial
reporting regulations of BSEC, FRC, BB, IDRA, RJSC etc.

c. Formulate and evaluate accounting and reporting policies for branch and liaison
entities considering BIDA and BB regulations.

d. explain and appraise accounting standards that relate to the impact of changes in
accounting policies and estimates;

a. e. explain and evaluate the impact of underlying assumptions

on financial statements; andidentify and explain current and emerging
issues in corporate reporting.

2. REPORTING PERFORMANCE

a. explain how different methods of recognising and measuring assets and liabilities
can affect reported financial performance;

b. explain and appraise accounting standards that relate to reporting performance:

in respect of presentation of financial statements; revenue; operating segments;

continuing and discontinued operations; EPS; interim reporting;

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 c. formulate and evaluate accounting and reporting policies for single entities and
groups of varying sizes and in a variety of industries; and

d. calculate and disclose, from financial and other qualitative data, the amounts to be
included in an entity’s financial statements according to legal requirements,
applicable financial reporting standards and accounting and reporting policies.

3. ASSETS AND NON-FINANCIAL LIABILITIES

a. explain how different methods of recognising and measuring assets and liabilities can
affect reported financial position, and explain the role of data analytics in financial
asset and liability valuation; and

b. explain and appraise accounting standards that relate to assets and non-financial
liabilities for example: property, plant and equipment; intangible assets, held-for-sales
assets; inventories; investment properties; provisions and contingencies.

4. FINANCING

a. determine and calculate how different methods for recognising, measuring and
classifying financial assets and financial liabilities can impact upon reported
performance and position;

b. with respect to banks and financial institutions, determine and calculate the impact of

Bangladesh Bank’s regulations concerning methods of recognizing, measuring and

classifying financial assets and financial liabilities on reported performance and
position;

c. with respect to insurance companies, determine and calculate the impact of the
regulations of Insurance Development and Regulatory Authority concerning methods
of recognizing, measuring and classifying financial assets and financial liabilities on
reported performance and position;

d. appraise and evaluate cash flow measures and disclosures in single entities and
groups;

e. evaluate the impact of accounting policies and choice in respect of financing

decisions for example hedge accounting and fair values; and

f. explain and appraise accounting standards that relate to an entity’s financing

activities which include: financial instruments; leasing; cash flows; borrowing costs;
and government grants.

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 5. EMPLOYEE REMUNERATION
a. explain how different methods of providing remuneration for employees may impact
upon reported performance and position; and

b. explain and appraise accounting standards that relate to employee remuneration

which include different forms of short-term and long-term employee compensation;
retirement benefits; and share-based payment.

c. Explain and appraise the accounting and financial reporting implications of relevant
provisions of Bangladesh Labour Act, 2006 and the Bangladesh Labour Rules, 2015
that relate to various forms of worker compensations and retirement benefits.
6. GROUPS

a. identify and show the criteria used to determine whether and how different types of
investment are recognised and measured as business combinations;

b. identify and analyse common control transactions, methods of accounting and

reporting for different types of common control transactions;

c. appraise the accounting for goodwill impairment testing and financial reporting; and

d. calculate and disclose, from financial and other data, the amounts to be included in
an entity’s consolidated financial statements in respect of its new, continuing and
discontinued interests (which include situations when acquisitions occur in stages
and in partial disposals) in subsidiaries, associates and joint ventures.

7. REPORTING TRANSACTIONS AND BALANCES IN FOREIGN CURRENCIES AND

OPERATIONS

a. determine and calculate how exchange rate variations are recognised and measured
and how they can impact on reported performance, position and cash flows of single
entities and groups; and

b. demonstrate, explain and appraise how foreign exchange transactions are measured
and how the financial statements of foreign operations are translated.

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8. TAXATION

a. explain, determine and calculate how current and deferred tax is recognised and
appraise accounting standards that relate to current tax and deferred tax.

b. Explain and appraise the current and deferred tax consequence of various
accounting standards such as IFRS 16, IFRS 15 etc. in light of the Income Tax
Ordinance, 1984.

c. Explain and calculate the disclosure regarding effective tax reconciliation in the
context of Income Tax Ordinance, 1984.
CORPORATE REPORTING – FINANCIAL STATEMENT ANALYSIS

Students will be able to analyse, interpret, evaluate, and compare financial statements of
entities both over time and across a range of industries.

In the assessment, students may be required to:

9. FINANCIAL STATEMENT ANALYSIS

a. appraise the nature and validity of financial and non-financial information included in
published financial statements including how these correlate with an understanding
of the entity;

b. appraise the nature and validity of information disclosed in annual reports, including
integrated reporting and other voluntary disclosures, including those relating to
natural capital sustainability and climate change;

c. appraise the limitations of financial analysis;

d. analyse and evaluate the performance, position, liquidity, efficiency and solvency of
an entity through the use of ratios and similar forms of analysis including using
quantitative and qualitative data;

e. interpret the potentially complex economic environment in which an entity operates

and its strategy based upon financial and operational information contained within
the annual report (for example: financial and business reviews, reports on operations
by management, corporate governance disclosures, Climate-related Financial
Disclosures, financial summaries etc.);

f. appraise the significance of inconsistencies and omissions in reported information in

evaluating performance using audit data analytics software;

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 g. compare the performance and position of different entities allowing for
inconsistencies in the recognition and measurement criteria in the financial statement
information provided;

a. evaluate the performance of an entity using accounting information in data

analytics software using appropriate data analysis tools, including
spreadsheets, to interpret and present conclusions;
b. construct adjustments to reported earnings in order to determine underlying
earnings andcompare the performance of an entity over time;

h. analyse and evaluate business risks and assess their implications for corporate
reporting;

i. analyse and evaluate financial risks (for example financing, currency and interest rate
risks) and assess their implications for corporate reporting; and

j. compare and appraise the significance of accruals basis and cash flow reporting.

k. Appraise the financial statements disclosure requirements considering the Securities

and Exchange Rules, 1987 including the relevant regulations of the Bangladesh
Securities and Exchange Commission. For example, such disclosures will include
reconciliation of cash flow, EPS, Net Operating Cash Flows Per Shares, Net Assets
Value etc.
Audit and Assurance:

Students will be able to explain the processes involved in planning an audit, evaluating
internal controls, appraising risk, gathering evidence and drawing conclusions in
accordance with the terms of the engagement. In addition, they will be able to perform a
range of assurance engagements and related tasks.

In the assessment, students may be required to:

AUDIT AND ASSURANCE

Students will be able to explain the processes involved in planning an audit, evaluating internal
controls, appraising risk including analysing quantitative and qualitative data, gathering
evidence and drawing conclusions in accordance with the terms of the engagement. In
addition, they will be able to perform a range of assurance engagements and related tasks.

In the assessment, students may be required to:

11. PROFESSIONAL PRACTICE

j. appraise and explain the role and context of auditing;

k. explain the nature and purpose of quality assurance (both at the level of the firm and
the individual audit) and assess how it can contribute to risk management; and
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 l. evaluate and explain current and emerging issues in auditing including developments
in the use of technology (e.g., Climate-related Financial disclosures, big data, data
analytics and artificial intelligence).

12. PLANNING
a. identify the components of risk and how these components may interrelate;

b. appraise the entity and the, potentially complex, economic environment within which
it operates as a means of identifying and evaluating the risk of material
misstatement;

c. identify the risks, including analysing quantitative and qualitative data, arising from,
or affecting, a potentially complex set of business processes and circumstances and
assess their implications for the engagement;

d. identify significant business risks (including those arising from cyber security and
technological advances including cloud computing, cryptocurrencies and robotic
process automations) and assess their potential impact upon the financial
statements and the audit engagement;

e. evaluate the impact of risk and materiality in preparing the audit plan, for example
the nature, timing and extent of audit procedures;

f. determine analytical procedures, where appropriate, at the planning stage using

technical knowledge of corporate reporting, data analytics software and skills of
financial statement analysis;

g. evaluate the components of audit risk for a specified scenario using data analytics
software when appropriate, including the interactions of inherent risk, control risk
and detection risk, considering their complementary and compensatory nature;

h. interrogate an organisation’s accounting records using data analytics software to

identify audit risks communicate with the audit team;

i. show professional scepticism in assessing the risk of material misstatement, having

regard to the reliability of management;

j. evaluate, where appropriate, the need for, and extent of reliance to be placed on
expertise from other parties to support audit processes including when to challenge
the extent and working practices of other parties; and

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 k. prepare, based upon planning procedures, an appropriate audit strategy and
detailed audit plan or extracts.

13. INTERNAL CONTROL SYSTEMS

i. analyse and evaluate the control environment for an entity based on an understanding of
the entity, its operations and its processes;

ii. evaluate an entity’s processes for identifying, assessing and responding to business and
operating risks as they impact on the financial statements;

1. appraise an entity’s accounting information systems and related business processes

relevant to corporate reporting and communication including virtual arrangements and
cloud computing;
2. analyse and evaluate strengths and weaknesses of preventative and detective control
mechanisms and processes, highlighting control weaknesses; including weaknesses
related to cyber security and corporate data controls;
3.
4. evaluate controls relating to information technology and e-commerce; including controls
associated with cyber security and corporate data security;

5. explain and appraise the entity’s system for monitoring and modifying internal control
systems; and

6. devise, explain and evaluate tests of controls.

14. CORPORATE GOVERNANCE

a. describe and explain the nature and consequences of corporate governance and
accountability mechanisms in controlling the operating and financial activities of
entities of differing sizes, structures and industries;

b. explain the rights and responsibilities of the board, board committees (eg, audit and
risk committees), those charged with governance and individual executive and non-
executive directors, with respect to the preparation and audit of financial statements.
Explain their responsibilities considering regulations currently prevailing in
Bangladesh.

c. describe and explain the rights and responsibilities of stakeholder groups (eg,
executive management, bondholders, government, securities exchanges,
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 employees, public interest groups, financial and other regulators, institutional and
individual shareholders) with respect to the preparation and audit of financial
statements;

d. evaluate and appraise appropriate corporate governance mechanisms;

e. explain and evaluate the nature and consequence of relevant corporate governance
codes and set out the required compliance disclosures;

f. explain the principles, practices and disclosures of corporate governance;

g. explain the respective responsibilities of those charged with governance and auditors
for corporate risk management and risk reporting;

h. explain the respective responsibilities of those charged with governance and auditors
in respect of internal control systems;

i. explain and evaluate the role and requirement for effective two-way communication
between those charged with governance and auditors; and

j. describe and explain the roles and purposes of meetings of boards and of
shareholders.
15. AUDIT EVIDENCE
a. explain and evaluate the relationship between audit risk and audit evidence;

b. determine audit objectives for each financial statement assertion;

c. determine for a particular scenario what comprises sufficient, appropriate audit

evidence;

d. design and determine audit procedures in a range of circumstances and scenarios,

for example identifying an appropriate mix of tests of controls, analytical procedures
and tests of details;

e. apply professional scepticism to the process of gathering audit evidence and

evaluating its reliability including the use of client-generated information and external
market information andaudit data analytics software;
f.

g. demonstrate how professional scepticism should be applied to the process of

gathering audit evidence and evaluating its reliability including the use of client-
generated information and external market information in data analytics;

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 h. demonstrate and explain, in the application of audit procedures, how relevant ISAs
affect audit risk and the evaluation of audit evidence;

i. evaluate, applying professional judgement, whether the quantity and quality of

evidence gathered from various audit procedures, including interpreting and
extrapolating the results of sampling, analytical procedures and data analytics, is
sufficient to draw reasonable conclusions;

j. prepare appropriate audit documentation; and

k. recognise issues arising whilst gathering assurance evidence that should be referred
to a senior colleague or other specialist.

1 Reporting and concluding

a. appraise the appropriateness of the going concern basis of accounting and
evaluate relevantgoing concern disclosures;
b. appraise and assess the significance of events after the reporting period;
c. evaluate, quantitatively and qualitatively using analytical procedures and appropriate
data analysis tools, the results and conclusions obtained from audit procedures;
d. conclude and justify the nature of the report on an audit engagement, and
formulate an opinionfor a statutory audit, which are consistent with the results of
the audit evidence gathered;
e. compose suitable extracts for reports (for example any report to the
management or those charged with governance issued as part of the
engagement); and
f. appraise ‘other information’ in the annual report and report on material
misstatements in thisinformation and material inconsistencies with the financial
statements.
a. .
17. ASSURANCE ENGAGEMENTS

a. explain the nature of a range of different assurance engagements including those

relating toenvironmental and sustainability disclosures;;

b. evaluate the evidence necessary to report at the appropriate level of assurance;

c. evaluate the evidence necessary to execute certification on remittance of dividends,

royalty, technical know-how fee, technical assistance fee, application for grant of
loans and advances (i.e. Form L) in light of the Foreign Exchange Regulations Act,
1947, the regulations of Bangladesh Investment Development Authority (BIDA) and
Bangladesh Bank;

d. evaluate risk in relation to the nature of the assurance engagement and the entity or
process for a given scenario; and

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 e. design and determine procedures necessary to attain the relevant assurance
objectives in a potentially complex scenario.

18. OTHER ENGAGEMENTS

a. evaluate the role of internal audit and design appropriate procedures to achieve the
planned objectives;

b. appraise and explain the nature and purposes of forensic audit and prepare and
plan procedures required to achieve a range of differing objectives;

c. explain the roles and responsibilities that auditors may have with respect to a variety
of different types of information and design procedures sufficient to achieve agreed
objectives; and

d. explain the nature and purposes of due diligence procedures (for example: financial,
commercial, operational, legal, tax, human resources) and plan procedures required
to achieve a range of differing financial objectives.
AUDIT AND CORPORATE REPORTING — INTEGRATED LEARNING OUTCOMES

Students will be able to evaluate corporate reporting policies, estimates and disclosures in a
scenario to be able to assess whether they are in compliance with accounting standards and
are appropriate in the context of audit objectives.

In the assessment, students may be required to:

19. INTEGRATED LEARNING OUTCOMES

a. identify and explain corporate reporting and assurance issues in respect of social
responsibility, sustainability and environmental matters for a range of stakeholders;
b. critically evaluate accounting policies choices and estimates, identifying issues of
earnings manipulation and creative accounting; and
c. critically appraise corporate reporting policies, estimates and measurements for
single entities and groups in the context of an audit.

d. Design, test and evaluate management override of controls comprising test of

journal entries, accounting estimates and significant unusual transactions.

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ETHICS

Students will be able to identify and explain ethical issues. Where ethical dilemmas arise, they
will be able to recommend, justify and determine appropriate actions and ethical safeguards
to mitigate threats. In the assessment, students may be required, in the context of corporate
reporting and auditing, to:
a. ETHICS

a. identify and explain ethical issues in reporting, assurance and business scenarios;

b. explain the relevance, importance and consequences of ethical issues (in light of ICAB
Codes and IESBA Codes);

c. evaluate the impact of ethics on a reporting entity, relating to the actions of stakeholders;

d. recommend and justify appropriate actions where ethical and professional conduct issues
arise in a given scenario; and

e. design and evaluate appropriate safeguards to mitigate threats and provide resolutions to
ethical problems.

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 ICAB Syllabus (2023)
Advanced Level

Strategic Business Management and Leadership

Module Aim

To enable students to demonstrate quantitative and qualitative skills, in order to make

realistic business recommendations in complex scenarios. Business awareness will need
to be demonstrated at strategic, operating and transactional levels.

To achieve this aim, students will be required to use technical knowledge and professional
judgement to apply appropriate models and to analyse quantitative and qualitative data from
multiple sources, including corporate reports, to evaluate alternatives and determine
appropriate solutions.

On completion of this module, in a national or global context, and for a range of different
business structures and industry scenarios, students will be able to:

• analyse and identify the external environment and internal strategic capability of
an entity; evaluate the consequences of strategic choices; recommend strategies
to achieve stakeholder objectives, recommend appropriate methods of
implementing strategies and monitoring strategic performance; manage business
risks; and advise on corporate governance.

• identify and advise upon appropriate finance requirements; evaluate financial

risks facing a business and advise upon appropriate methods of measuring and
managing those risks; provide valuations for businesses and securities; and
advise upon investment and distribution decisions.

• identify and explain ethical issues. Where ethical dilemmas arise, students will
be able to recommend and justify and determine appropriate actions and ethical
safeguards to mitigate threats.

• interpret and apply corporate reporting information in evaluating business and

financial performance; recognise and explain the corporate reporting
consequences of business and financial decisions; apply corporate reporting
information in appropriate models to determine asset, equity and entity
valuations, demonstrating an understanding of the usefulness and limitations of
accounting information in this context.

• appraise and explain the role of assurance in raising new equity and debt funding
and in the subsequent monitoring of such funding arrangements; understand,
explain and evaluate the role of assurance in selecting and implementing key
business decisions including acquisitions and strategic alliances; understand and
explain the role of assurance in financial and business risk management.

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 PRIOR KNOWLEDGE

This module assumes and develops the knowledge and skills acquired in the Financial
Accountingand Reporting module, the Business Strategy and Technology module and the
Financial Management module.

Background knowledge based upon the strategic elements of the Business Planning: Taxation
and the Audit and Assurance module will also be required in evaluating the business and
financial risksof reporting entities.
Ethics

Ethical codes will be those issued by IFAC and the ICAB. The ethical implications will be
at both the organizational level and for individuals, particularly with respect to the accountant
in business.

METHOD OF ASSESSMENT

The Strategic Business Management module will be examined using a paper-based

assessment of 3.5 hours.. Each exam will contain questions requiring integration of
knowledge and skills, including ethics. The exam will consist of two questions and Ethical
issues and problems could appear in either question.

ETHICS AND PROFESSIONAL SCEPTICISM

Ethical thinking must be at the forefront of the strategic business awareness that students will
be demonstrating. Students will be considering notions of stakeholder impact and scope

as well as appropriate safeguards within a specific learning outcome. Over and

above this, recommendations relating throughout the syllabus will only by definition
be valid if they fulfil fundamental requirements of being fair and just. This is guided
by specific focus across a range of considerations from social responsibility and
sustainability to transparency. Professional scepticism will need to be evidenced in
complex scenarios, recognising bias and gaps in evidence.
SPECIFICATION GRID

The grid below shows the relative weightings of subjects within this module and should
guide the study time spent on each. Over time the marks available in the assessment will
be within the ranges of weightings below, while slight variations may occur in individual
assessments to enable suitably rigorous questions to be set.
Syllabus area Weighting (indicative %)
Business Strategy and Management 30-40
Financial Strategy
25-35
Financial Structure and Financial Reconstruction
Financial Instruments and Financial Markets
Corporate Reporting 15-20
Assurance 10
Ethics 5-10

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BUSINESS STRATEGY AND MANAGEMENT

Students will be able to analyse and identify the external environment and internal strategic
capability of an entity; evaluate the consequences of strategic choices; recommend
strategies to achieve stakeholder objectives, recommend appropriate methods of
implementing strategies and monitoring strategic performance; measure and manage
business risks; and advise on corporate governance. Students will also be able to apply
corporate reporting and assurance principles and practices in the context of key business
decisions and events.

In the assessment, students may be required to:

1. STRATEGIC ANALYSIS
a. describe and explain the strategic objectives of an entity considering the interests of
stakeholders;
b. analyse and evaluate, for a given scenario, the external economic, market and
industry environment which may impact upon a business’s performance and position;
c. identify and evaluate the significance of the internal organisational and operational
capabilities in a given scenario which may influence an entity’s ability to achieve its
chosen strategic objectives, (including core competencies, existing business
processes, human capital and workforce flexibility);
d. analyse and evaluate an entity’s current position and performance, from both a
financial perspective and a non-financial perspective, using a variety of internal and
external information sources;
e. demonstrate how strategic analysis tools can be used in a complex scenario;
f. demonstrate how business strategy and financial strategy can interrelate in a
complex scenario;
g. evaluate and advise upon the strategic capability of an entity;
h. evaluate strategy at corporate, business unit and operational levels; and
i. analyse and evaluate current technology developments including those relating to big
data, internet of things, digital assets, automation, intelligent systems, distributed
ledger technology e.g., block-chain and cryptocurrencies.
j. explain, demonstrate and evaluate how data from multiple sources can be selected,
captured and analysed to provide management information, recognising the causes and
effects of different types of data bias, data omissions. data limitations and data trends and
applying an appropriate degree of professional scepticism;
k. explain and analyse an organisation’s current position and performance using both
financial and non-financial data, presented in different formats, applying appropriate statistical
and data analysis tools; and
l. explain and evaluate the causes and effects of different types of data distributions
and data trends using appropriate statistical and data analysis tools, including the
implications for business risk; determining and explaining sensitivity in a range of
scenarios.

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 Strategic choices:
a. assess, advise on and propose appropriate business strategies to meet stated objectives;
b. identify and evaluate business unit strategies to achieve sustainable competitive
advantage;
c. explain and demonstrate how financial and non-financial data can be analysed in order to
select an optimal business strategy, including the impact of big data on business models;
d. explain and demonstrate how strategic business models can be used in a given scenario,
to identify factors that a business can consider in choosing between competing strategies;
a. e. xplain international strategies; appraise international value chains and markets;
including the concepts of globalisation and the borderless business; and show the
impact on individual and group financial statements of changes in foreign exchange
rates; and
a. evaluate digital strategies, including the use of cloud accounting, digital assets,
automation,artificial intelligence, machine learning and robotic process automation;
b. explain and demonstrate how management information can be used to select from
proposedstrategies, taking account of limitations of data, including data bias, and
c. structure, assimilate and evaluate historic and estimated data in appropriate ways, using
appropriate statistical and data analysis tools, to support business decisions.

3. STRATEGIC IMPLEMENTATION
a. demonstrate and explain the impact of acquisitions and strategic alliances in
implementing corporate strategy and evaluate the nature and role of assurance
procedures in selecting and monitoring such strategies;
b. evaluate and explain the relationship between business strategy and
organisational structure;
c. evaluate and explain the impact of partial sell off, demerger, equity carve outs
and management/leveraged buyouts in implementing corporate strategy;
d. explain the impact of long outstanding pending taxation and other litigation
during business takeover;
i. explain and evaluate the nature and methods of change management
and advise on the implementation of change in complex scenarios;

e. demonstrate and explain the techniques that may be used in implementing a

strategy to reduce costs, for example supply chain management, business
process re-engineering and outsourcing;
f. evaluate, in a given scenario, the functional strategies necessary to achieve a
business’s overall strategy;
g. develop business plans and proposals and advise on technical issues relating
to business and organisational plans, assessing the impact on historic and
projected corporate reporting information;
h. demonstrate an understanding of, and provide advice on, data security issues,
including cyber security issues, arising from communications, shared systems
and data sharing throughout the supply chain and with strategy partners; and
i. identify and explain barriers to implementation of digital strategy and make
recommendations as to how they may be overcome.

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 4. STRATEGIC PERFORMANCE MANAGEMENT

a) advise on, and develop, appropriate performance management approaches for

businesses and business units, including the use of data analytics;

b. explain and demonstrate how a business can analyse complex, quantitative and qualitative
data from multiple sources to provide strategic management accounting information to
implement, monitor and modify a strategy at an appropriate organisational level in order to
create competitive advantage;
c. use financial and non-financial performance data from a variety of sources, including
integrated reporting disclosures, to measure multiple aspects of performance at a variety of
organisational levels;
d. advise on, and develop, appropriate remuneration and reward packages for staff and
executives linked to performance, considering agency relationship issues; and evaluate the
impact on corporate reports arising from employee remuneration, including pensions and
share-based payment; and
e. develop measures to evaluate performance in the context of social responsibility,
sustainability, environmental matters, natural capital and climate change.
f. set out and explain assurance procedures for qualitative and quantitative disclosures
relatingto social responsibility, sustainability, environmental matters and demonstrate
how effective assurance can benefit stakeholders and the public interest.

5. STRATEGIC MARKETING AND BRAND MANAGEMENT

a. assess strategic marketing issues and demonstrate the application of quantitative

and qualitative marketing techniques in complex scenarios;
b. evaluate and analyse markets and the marketing environment and develop a
marketing strategy consistent with the overall business strategy;
c. explain, using information provided, how to position particular products and services
in the market place (domestic or international) to maximise competitive advantage,
and assess thecorporate reporting impact arising from revenue and profit recognition
in accordance;
d. demonstrate, across a range of industries, how elements of the marketing mix can
be used to promote competitive advantage;
e. develop and explain marketing strategies using databases, big data and information
technology applications such as social media and other internet sources;
f. develop and explain the strategies for managing and sustaining existing brands;
g. prepare marketing strategies and show how they can be used to develop brands;
and
h. demonstrate how appraisal techniques can be used for valuing brands, patents,
R&D projects and intellectual property and evaluate relevant corporate reporting
recognition and measurement for Intangible Assets.
a. analyse and evaluate the key types of business risks using relevant quantitative and
qualitative data and assess their implications within a given scenario, for business
strategy and corporate reporting disclosures;
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 b. advise on the risks involved in business and organisational plans and show how these
risks can be managed by assurance procedures and other forms of risk mitigation
including managing the strategic, operating and financial risks arising from climate
change;

c. explain the responsibility of those charged with governance for managing risk and
assess the role of assurance in risk mitigation;

d. assess the impact of risk on a variety of stakeholders;

e. explain and assess the various steps involved in constructing a business risk
management plan, by establishing context, identifying risks and the assessment and
quantification of risk;

f. evaluate and explain the limitations of business risk management; and

g. assess and explain enterprise risk management, evaluating its framework and its
benefits; and analyse, structure and assimilate data provided to evaluate
business risks under a range of complex scenarios using appropriate statistical
and data analysis tools, recognising various types of data bias in a variety of
scenarios

h.
7. CORPORATE GOVERNANCE

a. assess the nature of governance and the explain the characteristics and principles
of good governance in a variety of scenarios;
b. assess the interests and impact of organisational stakeholders in determining
strategy and the consequences for stakeholders of strategic choices; including
responsibilities to stakeholders for environmental, social and governance (ESG)
policies;
c. evaluate the impact of governance mechanisms on a range of stakeholders;
d. assess and advise on appropriate corporate governance mechanisms, and evaluate
stakeholder management;
e. analyse and evaluate the strengths and weaknesses of corporate governance
mechanisms and processes; including governance over data;
f. explain the role of boards in determining and evaluating an entity’s policy for social
responsibility, sustainability and environmental matters and advise on corporate
reporting disclosures relating to these policies;
g. evaluate the suitability of corporate governance and organisational structures for
implementing strategy;
h. explain the role of boards in monitoring corporate performance and risk, and assess
the role of assurance procedures in this context; and
i. explain the nature, and assess the consequences, of the legal framework within
which businesses, assurance and governance systems operate (with particular
reference to company law, fraud, money laundering, civil liabilities, social security
law, employment law, contract law, tort and environmental law).
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 a. undertake appropriate quantitative and qualitative data analysis, statistical analysis,
business analysis and financial statement analysis;
b. explain financial and operational data and other management information, drawing
inferences relating to its completeness, accuracy and credibility, as a basis for a
meaningful analysis of the position, future prospects and risks for a business;
c. demonstrate how suitable financial, strategic and operational analysis techniques
can be used to analyse financial and operational data and to evaluate business
position, prospects and risks, including the analysis and benefits of ‘Big Data’,
artificial intelligence and machine learning
d. communicate an explanation (stating any reservations regarding transparency and
objectivity of data and information) of the position, prospects and risks of a business,
based on analysis of financial and operational data and information, including data
analytics and assess the extent to which limited assurance and reasonable
assurance engagements can identify and mitigate information risks in this context;
a. apply professional scepticism to data sources and data capture in interpreting
quantitative andqualitative information;
b. analyse, structure and assimilate historic and forecast data provided to evaluate
performance,position and risk using relevant statistical tools, data analysis and
spreadsheets, recognising the sensitivity of forecasts to underlying assumptions
and changes in estimates; and
c. assimilate, structure and analyse transactions and other granular data provided,
using spreadsheets.
1 INFORMATION STRATEGY
2 outline proposals and advise on outline requirements for information technology
applications to support business strategy, for example in the context of e-
commerce, e-business, virtual arrangements, artificial intelligence, digital assets
and cloud computing, including assurance issues in relation to data security;

b. use management accounting information (for example, costs, prices, budgets, transfer
prices) and management accounting tools (for example, break-even, variances, limiting
factors, expected values, ABC, balanced scorecard) to evaluate short and long-term aspects
of strategy;

a explain and appraise how management information systems can provide

relevant quantitative and qualitative data to analyse markets, industry and
performance, including the capture and analysis of big data;

b demonstrate and explain methods for determining the value of information in

the context of developing an information strategy;

c assess financial and operational data and information from management

information systems, drawing inferences relating to its completeness, accuracy
and credibility, and provide an evaluation of assurance procedures in
evaluating information risks, including those relating to cyber security;

f. demonstrate and explain how businesses capture, analyse and utilise information to
develop competitive advantage;

g. evaluate the impact of cloud computing and the borderless business on

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 the provision of strategic management information, including the use of
cryptocurrencies;
h. explain and appraise corporate strategies for ensuring security of data and
preventions ofattacks against data in the context of cyber security; and
explain the impact of regulations relating to data security (eg, GDPR) including the issues
incurred in complying with such regulation.

i. explain the impact of regulations relating to cryptocurrencies (e.g. Bangladesh Bank

Regulations) including the issues incurred in complying with such regulation.
10.
HUMAN RESOURCE MANAGEMENT
a. assess, explain and advise on the role of human resource management in
implementing strategy;
b. demonstrate and explain how human resource management can contribute to
business strategy, including flexible workforce management;
c. identify the impact of remuneration structures on organisational behaviour and
other aspects of human resource management, and show the corporate reporting
consequences; and
d. demonstrate and explain the role and impact of human resource management in
change management.

Students will be able to identify and advise upon appropriate finance requirements; evaluate
financial risks facing a business and advise upon appropriate methods of managing and
quantifying those risks; provide valuations for businesses and securities; and advise upon
investment and distribution decisions. Students will also be able to apply corporate reporting
and assurance principles and practices in the context of key financing decisions and events.

In the assessment, students may be required to:

11. FINANCE AWARENESS

a. demonstrate and explain the financing alternatives available for projects and
assets, and make informed choices as to which alternative is the most compatible
with the overall financial strategy of the entity, showing the corporate reporting
consequences relating to presentation, disclosure, recognition and measurement
of projects and their financing;
b. assess and explain current and emerging issues in finance;
c. identify social responsibility, sustainability and environmental factors for a range of
financial stakeholders, includingsustainable development goals , natural capital and
green finance, and assess assurance and corporate reporting issues relating to
such factors;
d. explain how financial crises, which have occurred in the past over a long time
period, may impact on approaches and attitudes to financial risk and may inform
corporate reporting practice; and

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 e. explain the role and impact of the finance function as a business partner

12. BUSINESS AND SECURITIES VALUATION

a. explain, advise on and demonstrate appropriate valuation methods for businesses and
equity securities using: asset-based; adjusted earnings-based; and cash-based methods
(for example SVA, EVAR, VBM, MVA and other appropriate techniques);

b. explain the key aspects of the International Valuation Standards (IVS) and its
application in Bangladesh context.

c. critically appraise the decision on sale of common shares versus the sale of assets.

d. critically appraise business and securities valuation methods in the context of specified
complex scenarios, including the consideration of natural capital;

e. explain and demonstrate appropriate valuation techniques in the context of

acquisitions and mergers; assess the contribution of due diligence procedures; and show
show the impact on corporate reports arising from acquisitions for groups in
consolidated financial statements;

f. explain and demonstrate appropriate valuation techniques in the context of

demergers and for disposal of entities and business units, and show the impact on
corporate reporting issues relating to discontinued operations; and

g. determine the value of debt and explain the techniques used.

h. analyse, structure and assimilate historic and forecast data provided to evaluate the
impact onvaluations using data analysis, relevant statistical tools and spreadsheets,
recognising the sensitivity of valuations to underlying assumptions and changes in
estimates.

13. CAPITAL STRUCTURE

a. appraise and evaluate the sources of finance and the process for raising finance;
b. advise on and develop proposals for determining the appropriate financing mix for
new businesses and projects;
c. explain and advise on issues relating to the cost of capital;
d. show and explain how dividend policy impacts upon equity value and upon
financing and investment decisions; and

e. appraise and explain how the choice of financing impacts on reported corporate
performance, and on the recognition and measurement of financial assets and
financial liabilities.
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14. FINANCIAL RECONSTRUCTION

a. show and explain how financial reconstruction takes place and explain the
consequences of such reconstructions for corporate reporting;

b. appraise and evaluate feasibility for loan restructure/reschedule in the context of

Bangladesh;

c. appraise and evaluate financial reconstruction proposals in a given scenario, and

determine the nature and role of assurance procedures in this context;

d. explain the different reasons for refinancing, and demonstrate how companies in
financial distress can be managed, having regard to insolvency law;

e. explain and appraise the workings of, and reasons for, securitisation, showing the
impact on financial statement information;

f. explain and appraise the nature and consequences of leveraged buy outs; and

g. appraise and evaluate various forms of reconstruction (for example, spin-off, MBO,
divestment, demergers, purchase of own shares, use of distributable profits),
explaining the corporate reporting impact.

a. appraise and explain the small and medium-sized enterprise financing problem;

b. appraise and evaluate the various methods of financing available to small and
medium-sized enterprises, and explain the nature and role of assurance for small
and medium-sized companies in raising such finance; and

c. assess and explain the characteristics of sources of equity for smaller companies
and the financial institutions operating in these markets (for example, venture
capital and private equity).
FINANCIAL INSTRUMENTS AND FINANCIAL MARKETS

16. EQUITY INSTRUMENTS

a. assess and explain the types of equity securities, and evaluate the implications for
disclosure, presentation, recognition and measurement in financial statements;
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 b. appraise and explain the characteristics of equity markets and the financial
institutions operating in these markets; and

c. analyse and evaluate the cost of equity, portfolio theory and the use of appropriate
asset pricing models, applying principles of financial economics.
17. FIXED INTEREST

a. explain the types of fixed interest securities and evaluate the implications for
disclosure, presentation, recognition and measurement in financial statements;

b. appraise and explain the characteristics of bond markets and the financial
institutions operating in these markets;

c. appraise and evaluate the use of bonds/ loans as a method of finance, and explain
the implications of terms included in loan agreements in a given scenario (for
example, covenants and guarantees) and the explain the procedures by which
monitoring and assurance can be provided in respect of such agreements;

d. explain and appraise bond valuation techniques and assess flat and gross
redemption yields;

e. explain and appraise yield curves, sensitivity to yield and components of the yield;

f. evaluate and explain interest rate risk; and

g. appraise and evaluate credit risk and credit spread.

a. explain the types of derivative securities and evaluate the implications for
disclosure, presentation, recognition and measurement in financial statements;

b. assess and explain the characteristics of derivative markets and the financial
institutions operating in these markets; and

c. appraise and evaluate the characteristics of forwards, futures, options, swaps,

credit derivatives.
19. FINANCIAL RISK MANAGEMENT

a. a. analyse and evaluate financial risks and their implications (for example
financing, currency and interest rate risks) and show the application of qualitative and
quantitative risk disclosures
for financial instruments and other corporate reporting disclosures relevant to risk
assessment;

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 b. appraise and advise on appropriate methods to assess, manage and quantify
financial risk in specific business scenarios;

c. explain and appraise impact of currency fluctuation on cross-border investment

as well as forecast;

d. explain and appraise financial instruments available for hedging against interest
rate and foreign exchange rate risk, for example, swaps, collars and floors;

e. demonstrate and explain the nature and operation of financial instruments

underlying the disclosure, recognition and measurement requirements in financial
statements and

b. demonstrate and explain how interest rate hedging strategies and foreign
currency risk management strategies can be formulated, both at the level of the
individual transaction and for macro hedging arrangements.
c. explain and demonstrate the causes and effects of different types of data bias and
datadistributions in evaluating financial risks, using appropriate statistical data
analysis and spreadsheets.
20. INTERNATIONAL FINANCIAL MANAGEMENT

a. a.
b. explain and appraise the various methods of financing available for foreign
investments and evaluate the implications for disclosure, presentation,
recognition and measurement of changes in foreign exchange rates in financial
statements;

b. appraise and explain global treasury organisation and international liquidity

management;

c. appraise and evaluate the factors affecting the capital structure of a multinational
company;

d. explain and appraise the advantages and risks associated with international borrowing;
e. demonstrate and explain the risks associated with international trade and the ways in which
these risks can be managed, and assess the nature and role of assurance procedures in
mitigating risk and the financial reporting consequences of currency hedging;
f. appraise and evaluate the different methods open to multinationals wishing to set up foreign
operations and the choices of finance available, identifying tax and corporate reporting
consequences;

g. appraise and evaluate the different methods open to foreign entities wishing to set up
business in Bangladesh, identifying tax, foreign exchange (dividends, royalties, technical fees,
franchise fees, expatriate employees, remittances, etc.), incorporation procedures, legal
structure and corporate reporting consequences;

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h. assess and explain the impact of exchange controls and how companies can overcome the
effects of these controls;

I appraise and evaluate the management of dividends in multinational organisations; and

j. appraise and evaluate the management of transfer prices in multinational organisations and
the implications for reported profit and tax.

21. INVESTMENT APPRAISAL

a. select and advise on investment appraisal techniques which are appropriate to

the objectives and circumstances of a given business;

b. appraise and advise on appropriate measures of return and risk for assessing
business projects using appropriate statistical tools, data analysis and
spreadsheets;

c. demonstrate and evaluate investment appraisal techniques for international

projects, identifying the impact of tax and the effects on corporate reporting;

d. explain and appraise real options and determine the impact of options to
abandon, expand, delay and redeploy;

e. appraise and evaluate the quantitative and qualitative issues surrounding

international investment appraisal;

f. evaluate the impact of externalities when making investment appraisal

decisions; and

g. identify social responsibility, sustainability and environmental consequences of

investment decisions, explaining corporate reporting issues in relation to such
policies.
22. TREASURY AND WORKING CAPITAL MANAGEMENT

a. demonstrate and explain the role and responsibilities of the treasury

management function;

b. demonstrate and explain the role of treasury management in short-term finance,

short-term investment and liquidity risk;

c. appraise and evaluate the contribution of working capital management to short

term and long term financing;

a. evaluate the risks arising from working capital management and how these may
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 be mitigated;
b. evaluate and explain working capital requirements for a range of different
organisations and circumstances;

c. demonstrate and explain the nature and role of working capital management
within financial management; and

d. appraise, evaluate and advise with respect to working capital management

techniques.
ETHICS

In the assessment, students may be required to:

a. recognise and explain ethical and professional conduct issues;

b. explain the relevance, importance and consequences of ethical issues;

c. evaluate the ethical implications of an organisation’s selection, capture, analysis and

use of data;
d. evaluate the impact of ethics on an entity, its stakeholders and the scope of its
strategies and operations considering the public interest;
e. recommend and justify appropriate actions where ethical dilemmas arise in a
given scenario; and

f.design and evaluate appropriate ethical safeguards.

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 ICAB Syllabus (2023)
Advanced Level
Case Study (No change is made)
Module aim
To ensure that candidates can provide advice in respect of complex business issues in the
form of a written report.
The objective of the Case Study is to assess candidates’ understanding of complex business
issues and the ability to analyse financial and non-financial data, exercise professional and
ethical judgement, and develop conclusions and recommendations.
Case Study format
The Case Study scenario may be based on any one of a variety of different organisational
structures or operations. Candidates will be provided with advance information on the
organisation and its business environment ahead of the exam.
This information will not give specific indication of the eventual requirements of the Case
Study. Candidates will be expected to familiarise themselves with the information provided
about the organisation and the industry in which it operates, undertaking some additional
analysis and research. Candidates may take the results of their work into the examination
room.
Assessment
The Case Study will not require the detailed computations needed for the Certificate,
Professional and Advanced Levels; but candidates will be required to undertake financial
and business analysis.
Requirements will be open in that there will be no predetermined correct answers to the
Case
Study. All areas of the syllabus may be tested over time.
Preparation and approach to the case
The Case Study is designed to reproduce a typical situation in which chartered accountants
find
themselves. This will involve using information arising from meetings and communicated in
memoranda, letters or reports from a variety of business and professional advisors and
stakeholders. The situation will generally relate to a business plan or transaction and will
require preparation for the submission of a report.
The reality of such situations is that in drafting a report you would:
 receive some materials in advance;
 carry out some work beforehand and make use of it in the report;
 include additional analysis in appendices to the report;
 develop additional lines of enquiry as you assemble the report; and
 expect to discuss and advise on relevant matters.
The limited class time available with a tutor, even when supplemented by extensive home
study, is insufficient for success in the Case Study. Candidates must bring work experience
into their preparation and development programme.
Success at the Case Study requires an integration of the technical knowledge and skills
acquired from all of the ACA modules, namely:

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 the core technical knowledge and skills and practical application acquired at the
Certificate and Professional levels;
 the technical, analytical, evaluative and integration skills from Corporate Reporting and
Strategic Business Management; and
 the advisory, judgemental and communication skills acquired through practical work
experience undertaken during the training agreement.

- The End -

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