ACA SKILLS DEVELOPMENT GRID

PROFESSIONAL LEVEL
AUDIT AND ASSURANCE

ICAEW 2014

ACA OVERVIEW
The ICAEW chartered accountancy qualification, the ACA, is one of the most advanced learning
and professional development programmes available. Its integrated components provide an indepth understanding across accountancy, finance and business. Combined, they help build the
technical knowledge, professional skills and practical experience needed to become an ICAEW
Chartered Accountant.
Each component is designed to complement each other, which means that students can put theory
into practice and can understand and apply what they learn to their day-to-day work. The
components are:

Professional development
ICAEW Chartered Accountants are known for their professionalism and expertise. Professional
development prepares students to successfully handle a variety of different situations that they
encounter throughout their career.
The ACA qualification improves students ability and performance in seven key areas:
adding value
communication
consideration
decision making
problem solving
team working
technical competence.

Ethics and professional scepticism

Ethics is more than just knowing the rules around confidentiality, integrity, objectivity and
independence. Its about identifying ethical dilemmas, understanding the implications and behaving
appropriately. We integrate ethics throughout the ACA qualification to develop students ethical
capabilities so they will always know how to make the right decisions and justify them.

3-5 years practical work experience

Practical work experience is done as part of a training agreement with one of our 2,850 authorised
training employers around the world. Students need to complete 450 days, which normally takes
between three and five years. The knowledge, skills and experience they gain as part of their
training agreement are invaluable, giving them the opportunity to put what theyre learning into
practice.

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15 accountancy, finance and business modules

Each of the ACA modules is directly relevant to the work that students do on a day-to-day basis.
They will gain in-depth knowledge across a broad range of topics in accountancy, finance and
business.
There are 15 modules over three levels. These can be taken in any order with the exception of the
Case Study which has to be attempted last. Students must pass every exam (or receive credit)
there are no options. This ensures that once qualified, all ICAEW Chartered Accountants have a
consistent level of knowledge, skills and experience.

Certificate Level
There are six modules that will introduce the fundamentals of accountancy, finance and business.
They each have a 1.5 hour computer-based assessment which can be sat at any time. Students
may be eligible for credit for some modules if they have studied accounting, finance, law or
business at degree level or through another professional qualification.

Professional Level
The next six modules build on the fundamentals and test students understanding and ability to use
technical knowledge in real-life scenarios. Each module has a 2.53 hour exam, which are
available to sit four times per year. These modules are flexible and can be taken in any order. The
Business Planning: Taxation and Business Strategy modules in particular help students to
progress to the Advanced Level.

Advanced Level
The Corporate Reporting and Strategic Business Management modules test students
understanding and strategic decision making at a senior level. They present real-life scenarios,
with increased complexity and implications from the Professional Level modules.
The Case Study tests all the knowledge, skills and experience gained so far. It presents a complex
business issue which challenges students ability to problem solve, identify the ethical implications
and provide an effective solution.
The Advanced Level exams are fully open book, so they replicate a real-life scenario where all the
resources are readily accessible.

ICAEW 2014

Skills development grid

This document presents the skills assessed alongside technical knowledge for the Audit and
Assurance module. The skills should be read in conjunction with the module syllabus and learning
outcomes and the relevant technical knowledge grid.
The link between work experience and the examinations will be made explicit through the
professional development framework and the skills development grids. Students should use the
professional development framework and skills development grids to ensure success in exam
performance and success in their workplace performance.
For each skills area, there is a description of the specific skills that are assessed, and how these
skills are assessed.

ICAEW 2014

SKILLS PROGRESSION THROUGH THE ACA QUALIFICATION

Advanced Level
Assessed skills

Certificate Level

Professional Level

Corporate Reporting and

Strategic Business
Management

Case Study

Assimilating and using information

Understanding the subject
matter and identifying issues

Specific issues

Simple scenarios

Complex scenarios

Unstructured complex business

scenarios

Accessing, evaluating and

managing information

Information/data as provided

Single information source

provided

Multiple information sources

provided

Multiple information sources

including own research

Structured application of
integrated and non-integrated
knowledge and experience

Unstructured application of
integrated knowledge and
experience

Using technical knowledge and Highly structured application of Structured application of nonprofessional experience
non-integrated knowledge
integrated knowledge
Structuring problems and solutions
Using analytical tools

Specified tools

Specified tools

Tools inferred by nature of

problem

Unspecified tools

Analysing and evaluating

problems

Highly specified tasks

Specified non-integrated
problems

Specified integrated and nonintegrated problems

Defined output but unspecified

problems

Assessing quality of
information

Objective testing

Specified in simple scenario

Specified in complex scenario

Underlying requirement within

complex scenario

Assessing options and

priorities including ethical
issues

Options given

Options included in simple

scenario

Options included in complex

scenario

Balanced judgement of
priorities and risks in
unstructured scenario

Possible alternative provided

Alternative(s) provided

Alternatives identified using

professional experience

Specified conclusions and

recommendations in complex
scenarios

Conclusions and
recommendations supported by
own evidence

Applying judgement

Considering other perspectives Not assessed

Conclusions, recommendations and communication
Drawing conclusions and
making recommendations

Not assessed

Specified conclusions and

recommendations in simple
scenarios

Presenting data and written

work

Prescribed exam format

Exam requirements, including Short written professional

some professional presentation presentations

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Professional report with

appendices and executive
summary
5

AUDIT AND ASSURANCE

Assimilating and using information
Assessed skills

Reading and understanding subject matter.

Accessing, evaluating and managing information provided in a few defined sources.
Framing questions that clarify information or identify gaps in knowledge.
Operating to a brief in structured situations.
Explaining the nature of ethics and its significance in the business environment.
Understanding the public interest and social responsibility.
Understanding the importance of contributing to the profession.
Appreciating the ethos and culture of the accountancy profession.
Understanding the role of the professional accountant within the public interest, practice and
business contexts and the regulatory structure of the profession.
Understanding the importance of ethical behaviour to a professional and the reasons for the
adoption of ethical codes by professions acting in the public interest.
Understanding the pressures on professional ethical behaviour, including the interaction
between professional ethics and the law and other value systems.

How skills are assessed

Questions will contain both structured and unstructured detail that candidates have to understand
Requirements will include demonstrating an understanding of:
the regulatory, professional and ethical issues relevant to accepting, carrying out and
managing assurance engagements; and
how quality assurance processes mitigate risks.

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Structuring problems and solutions

Assessed skills

Understanding data and information given: identifying and understanding issues arising in
straightforward scenarios.
Using the data and information given: understanding requirements, analysing data and
information to support the requirement.
Drawing upon technical and professional knowledge learnt to analyse issues.
Understanding the workings of, and controls within, an organisational framework.
Applying knowledge from different technical areas: analysing problems that combine
technical skills in a single disciplinary environment.
Using new concepts: evaluating new ideas and concepts.
Appreciating the ethical dimensions of situations, problems and proposals.
Identifying and selecting appropriate courses of action using an ethical framework.
Financial data analysis: performing the required calculations; explaining or stating the issues.
Financial statement analysis: performing the required analytical process, explaining or
stating the issues.
Identifying and explaining the consequence of unethical behaviour.
Identifying and using relevant up to date content of International and ICAEW Code of Ethics
and FRC Ethical Standards.
Recognising ethical issues arising from situations likely to be encountered by chartered
accountants; identifying possible courses of action to resolve them.

How skills are assessed

Requirements will include planning assurance engagements in accordance with the terms of
engagement and appropriate standards, taking account of:
managing audit and other assurance engagements;
reliance on controls;
reliance on the work of internal audit or other experts;
reliance on the work of another auditor;
extent of tests of control and of substantive procedures, including analytical procedures
use of analytical procedures to identify the risk of misstatement; and
number, timing, staffing and location of assurance visits.

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Applying judgement
Assessed skills

Applying discrimination: identifying the relevant/reasonable in data and evidence;

recognising varying quality in data or evidence.
Relating parts and wholes: discerning particular issues as part of wholes.
Demonstrating an understanding of different perspectives (eg social, political, economic):
analysing and interpreting problems and situations from a given stance.
Change management (appreciating the impacts/effects of change): considering and
evaluating the effects of a given future scenario.
Assessing/applying materiality: understanding the concept of materiality.
Applying a sceptical and critical approach in a given straightforward situation.
Appreciating when more expert help is required in a given straightforward situation.
Exercising ethical judgement in a given straightforward situation.
Developing arguments, having first appreciated the perspective of all other parties.
Conducting critiques: critically reviewing a statement, argument or position.

How skills are assessed

Candidates will be required to identify significant business or audit risks from a given scenario,
explain their impact on the financial statements, and finally recommend audit procedures to
mitigate the risk of a material error. Requirements will test the ability of candidates to filter
those issues which are more relevant than others in a given scenario.
Candidates' ability to distinguish the quality of data or evidence will be tested in two potential
ways. (i) Candidates will need to distinguish between data generated from within an
organisation and that generated by a third party, the latter being less susceptible to
management bias; and (ii) candidates will need to appreciate the effect on the quality of
evidence that bias caused by specific factors can have e.g. where profits are used to
determine a bonus payment to be made to the companys management.
Question requirements will include the need to identify the impact of specific economic and
political factors on a set of financial statements e.g. in the context of dealing with customers or
suppliers from overseas that (i) political instability may cause problems which prevent the
customer or supplier from trading, ultimately leading to going concern issues for the audited
entity; and (ii) economic factors may cause exchange rate fluctuations leading to the risk of
misstated balances in the financial statements.
Candidates will be expected to evaluate the effect of uncertain future events when describing
the procedures to be performed in carrying out an examination of a companys financial
forecasts.
Question requirements will include the need to assess the materiality of a particular matter
(e.g. an unadjusted error) in the context of a set of financial statements. This assessment
should then inform the candidates judgement as to whether or not to modify the opinion given
in a statutory audit report.
Candidates are required to exercise ethical judgement in a variety of different scenarios,
including:
judging the potential independence risks involved in accepting or continuing an audit
engagement, and the procedures to mitigate those risks; and
consideration of the required steps upon the discovery of fraud/money laundering.
Candidates are expected to display the ability to present a structured argument to a client e.g.
in situations where management is questioning the extent of audit work performed
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Conclusions, recommendations and communication

Assessed skills

Using technical knowledge to support reasoning and conclusions.

Decision making: using relevant quantitative approaches in decision analysis.
Identifying the best explanation, solution or steps against defined criteria in a given
straightforward situation.
Formulating opinions, reservations, advice, recommendations, plans, solutions, options
and risks including business implications in a given straightforward situation.
Preparing, describing, outlining the advice, report, notes required in a given
straightforward situation.
Presenting a basic or routine memorandum or briefing note in writing in a clear and
concise style.

How skills are assessed

Requirements will include:
advising on the regulatory, professional and ethical issues in carrying out an assurance
engagement;
concluding and reporting on assurance engagements, including determining whether to
a modified report with or without a modified opinion/conclusion; and
identifying weaknesses in financial information systems, their potential consequences
and recommendations for improvement.

ICAEW 2014