ICAN Syllabus for Skills

This is the complete examination syllabus for Institute of chartered accountants of Nigeria, ICAN Foundation Level.

Use the content tale below to jump to a particular section of the Foundation syllabus.

Ican syllabus for Skills.

ican syllabus for skills


In this element the accounting from the knowledge and skills level is taken up a level into financial accounting in the context of more complex events and transactions with a greater emphasis on compliance with regulations including local and International Accounting Standards and generally accepted accounting practices in the public and private

Students will be expected to demonstrate an understanding of and competence in financial statement analysis and basic analysis of choices in accounting treatments

Content and competences

1 Accounting and reporting concepts, frameworks and practices: 15%

(a) Explain the importance of a regulatory framework for accounting and reporting
(b) Explain the objectives and limitations of financial statements using appropriate examples or using a given scenario
(c) Explain and present the quantitative characteristics of financial statement disclosures
(d) Identify and present the financial effects of accounting for events and transactions under the IASB Conceptual
(e) Identify, present and explain the differences between financial statements prepared using accruals and cash bases
(f) Identify and explain the break up basis of accounting
(g) Identify, present and explain to professional accountants or general users the different bases of measurement or of capital and capital maintenance that may be used under accruals based accounting.
(h) Explain the meaning of true and fair or fairly presented in relation to financial reporting.

2 Preparing separate financial statements: 25%

(a) Identify and state the circumstances in which private sector entities are required to prepare and present statutory
financial statements.
(b) Identify and state the laws, regulations accounting standards and other requirements that govern the production of financial statements by such entities.
(c) Draft and compile financial statements, or extracts from them, of an entity in accordance with its chosen policies and in accordance with IFRS and local law.
(d) Assess the circumstances in which the use of IFRS for companies may not be required.

3 Financial statement analysis and evaluation: 30%

(a) Calculate basic financial ratios and assess the financial results and position of a single entity.
(b) Evaluate, judge and advise on the appropriateness of chosen accounting policies with regard to compliance with
international reporting standards.

4 Preparing consolidated financial statements of simple group (parent and one subsidiary): 30%

(a) Identify and state the circumstances in which entities are required to prepare and present statutory consolidated
financial statements.
(b) Identify and state the laws, regulations accounting standards and other requirements that govern the production of consolidated financial statements by entities.
(c) Identify from data provided a subsidiary or associate in accordance with the international financial reporting
framework and local law.
(d) Evaluate and calculate the figures to be included in consolidated financial statements in respect of an acquisition
involving one subsidiary and associate, continuing ownership but not including disposals of subsidiary and associate.
(e) Draft, compile and present the consolidated financial statements or extracts of them in accordance with selected
accounting policies and the requirements of IFRS.

Applicable Accounting Standards:

  •  Preface to IFRS
  • Conceptual Framework for Financial Reporting
  • IAS 1 Presentation of Financial Statements
  • IAS 2 Inventories
  • IAS 7 Statement of Cash Flows
  • IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
  • IAS 10 Events after the Reporting Period
  • IAS 11 Construction Contracts
  • IAS 12 Income Taxes
  • IAS 16 Property, Plant and Equipment
  • IAS 17 Leases
  • IAS 18 Revenue
  • IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
  • IAS 23 Borrowing Costs
  • IAS 24 Related Party Disclosures
  • IAS 27 Consolidated and Separate Financial Statements
  • IAS 28 Investments in Associates
  • IAS 31 Interests in Joint Ventures
  • IAS 32 Financial Instruments: Presentation
  • IAS 33 Earnings per Share
  • IAS 36 Impairment of Assets
  • IAS 37 Provisions, Contingent Liabilities and Contingent Assets
  • IAS 38 Intangible Assets
  • IAS 39 Financial Instruments: Recognition and Measurement
  • IAS 40 Investment Property
  • IFRS 3 Business Combinations
  • IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
  • IFRS 7 Financial Instruments: Disclosures
  • IFRS 8 Operating Segments


With students now possessing knowledge of accounting systems and generally accepted accounting practices auditing principles and practice builds a firm foundation in the nature and purpose of both internal and external audit including modern risk based and systems based techniques and basics of reporting internally and externally.

There is an emphasis on knowledge of International Standards of Auditing and their application to straightforward situations requiring audit judgment.

Content and Competences


Objectives, process and need for external audit and assurance:
(a) Define and explain the concepts of audit and assurance.
(b) State and explain the reasons for and the benefits gained from the different types of audit and assurance assignments including those relating to financial statements, internal controls, corporate social responsibility and sustainability reports.
(c) State and explain the parties and their roles, duties and rights in an assurance engagement including the members of the assurance team.
(d) Identify and explain using suitable comparisons the different levels of assurance that may be obtained from assignments.
(e) Identify and explain the meaning of expectation gaps in the context of audit and assurance assignments and their
implications for the profession, including fraud, going concern, internal control and risk issues.
(f) State and explain the basic steps or components of an assurance process:

  • The approach, obtaining assignments and nomination
  • Accepting an engagement
  • Appointment
  • Scope of work
  • Risk and risk assessment
  • Different approaches
  • Planning
  • Performance
  • Evidence and obtaining evidence
  • Testing and other work
  • Evaluating results
  • Concluding and considering an appropriate report
  • Reporting
  • Records and working papers

(g) State and explain the meaning of public interest and the  need for professional scepticism in carrying out assurance engagements.
(h) State and explain the meaning of materiality.
(i) State and explain the meaning of reasonable assurance.
(j) State and explain the meaning of an opinion and an assurance report.
(k) State and explain the legal framework of External Audit and Assurance

  • Difference between internal and external audit
  • The scope of internal audit
  • Public sector audit

B. Internal Control 20%

The nature and use of internal controls:
(a) State and explain the nature of internal financial controls and internal controls.
(b) State and explain the meaning of effective internal financial controls and internal controls.
(c) Identify and explain the business, reporting and compliance objectives supported by internal controls.
(d) State and explain the different types of internal control with emphasis on internal financial controls.
(e) State and explain the main components of internal control including, the control environment, risk
assessment, control activities, information and communication and monitoring activities.
(f) Identify and evaluate internal controls in a scenario stating how the controls support particular aspects of
reliable financial reporting and support the prevention and detection of fraud and error.
(g) Identify and evaluate internal control weaknesses in a given scenario explaining how these may be rectified.
(h) Identify and explain how accounting systems and related internal controls may be identified, recorded
and analysed.
(i) Identify, state and explain the limitations of internal controls.

C Gathering Evidence 30%

The nature of audit evidence and the selection of sufficient appropriate evidence
(a) State and explain why it is important to maintain and keep working papers and other documentation.
(b) State, identify and explain the different sources and quality of evidence and the methods of obtaining evidence including documenting and assessing systems and controls, tests of controls, substantive tests and analytical procedures.
(c) State and identify the differences in quality and reliability of different sources of audit evidence and the efficiency and effectiveness of different methods of obtaining evidence.
(d) Identify, state and explain appropriate procedures to gather  evidence including all of the above sources and procedures based upon a given scenario.
(e) Identify and evaluate based on a given scenario including information regarding evidence obtained whether that
evidence is sufficient to provide an appropriate basis for a given opinion or report.
(f) Identify the circumstances where written representations may
be required stating how reliable such evidence may be.
(g) Identify and evaluate the circumstances where matters need to be raised with a senior assurance team member and how this should be communicated and documented.

D Ethics 20%

Professional ethics, public interest, fundamental objectives, threats and safeguards to independence:
(a) Explain the importance of professional ethics.
(b) Explain the differences between rules based and principles based approaches to professional ethics.
(c) Identify and explain in context the meaning of public interest.
(d) Identify and explain ethical issues based on the IFAC code.
(e) Select suitable actions to deal with ethical dilemmas.
(f) Identify and explain in context the fundamental ethical principles.
(g) Identify and explain in context the ethical threats and safeguards
(h) Identify and explain in context ethical conflicts as an employee and as a practising accountant

Applicable Auditing Standards:

  1. 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing
  2. 300 Planning an Audit of Financial Statements
  3. 315 Identifying and Assessing the Risks of Material Misstatement
  4. Through Understanding the Entity and its Environment
  5. 320 Materiality in Planning and Performing an Audit
  6. 450 Evaluations of Misstatements Identified during the Audit
  7. 500 Audit Evidence
  8. 505 External Confirmations
  9. 520 Analytical Procedures
  10. 530 Audit Sampling
  11. 540 Auditing Accounting Estimates, Including Fair Value Accounting
  12. Estimates and Related Disclosures
  13. 580 Written Representations
  14. 700 The Auditor’s Report on Financial Statements.
  15. Nigerian Standards on Auditing
  16. All the approved and released standards may be examined after six months of issue
  17. Companies and Allied Matters Act, 1990 as amended

B3. TAXATION 6 units

Professional accountants need to understand tax to support both compliance and effective basic professional advice. The emphasis is on a basic knowledge and application of tax legislation relating to employees, employers, trading and operating and local business activities in straightforward situations. Students will be expected to be able to analyse the tax consequences of personal and corporate actions and activities.

Content and Competences


1. Introduction to Taxation
(a) Define, list and explain the objectives and Purposes of Taxation
(b) Enumerate and explain the types of taxes and tax system
(c) Define and explain the Basic Concepts in taxation:

  • i. Tax base, tax yield, tax rate, tax incidence
  • ii Tax burden, tax impact, tax shift, tax effect

(d) Distinguish between tax and other levies
(e) Define and explain the Principles/Canons of Taxation
(f) Distinguish, list and explain the following in relation to taxation in Nigeria

  • Types of taxes
  • Enabling Acts
  • Sources of the tax laws

2. Tax Administration in Nigeria
List, explain and contrast the Roles, functions, compositions and powers of:
i Joint Tax Board
ii State Board of Internal Revenue
iii Federal Inland Revenue Service and its management Board
iv Joint State Revenue Committee
v Local Government Revenue Committee
vi Tax Appeal Tribunal

3. Assessments and Objections, Appeal and Remittances
(a) Distinguish between the Types of Assessments:
i. Government assessment
ii. Self assessment
iii. Other forms of Assessments

(b) Identify and explain Tax Objection and Appeals procedures, covering the following:
i. Time limit for objection and appeal
ii. Contents of a notice of objection and appeal
iii. Amendment of Assessment and refusal to amend
iv. Appeals procedures and process: Tax Appeal Tribunal,
Federal High Court etc

(c) Outline the basis for Registration and Filing of Returns with the
FIRS, covering the following:
i. Time within which to register
ii. Registration requirements and process
iii. Constituents of a tax returns
iv. Due date for filing of tax returns
v. Time within which to pay tax assessed

(d) State and explain the following in respect of Tax Clearance Certificate
i. Definition and Content
ii. List the Conditions for granting a tax clearance certificate
iii. Outline the Transactions for which tax clearance certificate is required
iv. State the procedure for processing Tax Clearance Certificate

B. Personal Income 30%

1. Taxation of Employment Income
(a) Define employment; Contract of service and contract for service
(b) Distinguish between the types of employments:

  • Nigerian employment and
  • Foreign employment

(c) Distinguish between employment, vocation and profession

(d) Analyse and compute employment income

  • Cash emolument
  • Benefit in Kind
  • Taxable and tax free income
  • Valuation of benefits in kind

(e) State and explain the conditions for taxability of Employment Income
(f) List and explain Allowable and Non Allowable Deductions including case laws

(g) Compare and explain Assessment and collection of employment taxes, together with basic computation and explanation of the following:
i. Pay As You Earn (PAYE) registration
ii. Basis of assessment
iii. Computation of PAYE taxes
iv. Filing of returns: Employee and Employer
v. Offences and Penalties

2. Taxation of Trust, Settlements and Estates
(a) Define trust, settlements and estates
(b) Determine taxable Income
(c) Determine Income from the trusts, settlement or estate
(d) Identify and explain Allowable and Non allowable expenses
(e) Compute tax liability in the hands of beneficiaries and trusties
(f) Identify Relevant tax authority
(g) State and explain Offences and Penalties

2. Taxation of Investment Income
(a) Compute Rent on property, including contractor-financed projects
(b) Explain the taxation Savings
(c) State and explain the tax implications on Dividends and interests
(d) Explain the basis of Assessments and payment of taxes on investment incomes

C Business Income 30%

1. Taxation of Business Income

(a) Sole Traders
i. Explain the meaning of a trade or profession; adventure in nature of trade; badges of trade
ii. Compute Assessable Profit of a trade or profession
 Identify Taxable and Non-taxable income
 Identify and explain Allowable and Non-Allowable expenses
iii. Determine Basis period for assessment:
 Definition and Types
 Outline and apply the Rules for commencement, change of accounting date and cessation
iv. Capital Allowance Computation
 Define and outline Types of Capital Allowances
 Define and explain types of Qualifying Capital Expenditures
 State and explain Conditions for granting CA
 Identify Capital Allowance Rates and Restrictions
 Compute Balancing Adjustments on Disposal of
qualifying capital expenditures
v. Loss Relief
 Identify and explain Types of reliefs and their treatments
 Outline and explain the Treatments of losses under commencement and cessation of business

(b) Partnerships
i. Determine the taxable income of Partners
ii. Compute assessable profit of a partnership business
iii. Identify and explain Allowable and Non-allowable expenses
iv. Assess the Tax treatment under admission and resignation of a partner

(c) Limited Liability Companies
i. Identify the Types of Companies and Chargeable Profits
ii. Identify Persons liable
iii. Compute Assessable Profit
 Outline and explain Taxable and Non-taxable income
 Outline and explain Allowable and Non-Allowable expenses
iv. Evaluate the Basis period for assessment:
 Define and state Types
 State and explain the Rules for commencement, change of accounting date and cessation
v. Capital Allowance Computation
 Define and explain Types of Capital Allowances
 Define and explain types of Qualifying Capital Expenditures
 State and explain Conditions for granting CA
 Identify and apply the Capital Allowance Rates and Restrictions
 Compute Balancing Adjustments on Disposal of qualifying capital expenditures
vi. Loss Relief
 Explain Loss relief principles
 Identify and explain the Treatment of losses under commencement and cessation of business
vii. Compute Companies income tax, taking the following into consideration:
 Total profit
 Minimum tax
 Dividend distribution
 CIT rate

2. Taxation of Specialised businesses
(a) Outline and apply the tax provisions for Real estate, agriculture, etc
(b) Outline the tax provisions and compute tax on Transportation and telecommunication businesses
(c) Outline and explain circumstances and basis for Turnover taxes
(d) Identify and explain criteria to be eligible for Small Company relief
(e) State the basis for Taxation of enterprises in Free trade zones
(f) Explain and apply the Provisions of the Nigerian Information Technology Development Agency Act (NITDA) 2007.

3. Tertiary Education
(a) Outline the objectives and basis of computation of tertiary education tax as provided in the enabling act
(b) Explain the Imposition, assessment and collection of the tax
i. State the Management and administration of the
Tertiary Education Tax Fund
ii. State the Composition and functions of the Board of Trustees
iii. Explain the Allocation and Distribution of the tax
iv. State the Offences and Penalties for non-compliance


Transaction Taxes

(a) Withholding Tax
i. Define and explain the nature, objectives and administration of WHT
ii. Outline the Transactions/income subject to withholding taxes and rates
iii. State the Relevant tax authority for collection
iv. Explain the filing of WHT Returns and list the Contents and time frame
v. Outline the provisions relating to WHT Refunds, Grounds and Procedures
vi. Explain the Remittance of WHT to Tax Authorities
vii. What are the Administrative bottlenecks and problems of WHT
viii. What are the benefits of the withholding tax scheme

(b) Value Added Tax (VAT)
i. Define and explain the nature, objectives and administration of VAT
ii. Explain Taxable persons and taxable supplies of goods and services
iii. Define and explain the basic concepts relating to VAT, such as Input tax, output tax; exemption and zero
rated supplies and services, reverse VAT, basic tax point, actual tax point and standard Rate
iv. Compute VAT liability, including the treatment of closing and opening stock
v. Outline the obligation for Registration, records and accounts keeping, and valid VAT Invoice
vi. Explain the requirements for Filing of VAT Returns and Remittance of VAT liability
vii. Explain the treatment of VAT on import of goods and services and exported services
viii. State the offences and penalties
ix. Explain the provision on VAT Recovery

(c) Stamp Duties:
i. Define the nature and objectives of stamp duties
ii. Outline the Instruments Chargeable
iii. State the Relevant Tax Authority for Collection
iv. Explain the types of Stamps and the form Stamp Duties
v. Explain the time limit for stamping and implications for non-stamping
vi. Discuss the recoverability of outstanding duties
vii. Outline the stamp duties rates and the basis of computation
viii. Explain the administration, territorial limits and the methods of stamping
ix. Explain the process of Adjudication, the limits and appeals procedures.


Performance management develops and deepens student’s capability to provide information and decision support to management in operational and strategic contexts with a focus on linking costing, management accounting and quantitative methods to critical success factors and operational strategic objectives whether financial,
operational or with a social purpose. Students will be expected to be capable of analysing financial and non-financial data and information to support management decisions.

Content and Competences


1. Entity performance management
(a) Select and calculate suitable financial performance measures for a given business from given data and
information evaluating the results based on business objectives and advising upon management action.
(b) Select and calculate suitable non-financial performance measures for a given business from given data and
information evaluating the results based on business objectives and advising upon management action.
(c) Explain and assess the use of balanced scorecard methods including evaluation of performance from given data and information.
(d) Explain and evaluate the use of value for money (VFM) techniques in performance management.
(e) Select and explain stakeholder based measures of performance that may be used to evaluate social or
environmental performance of a business.

2. Divisional performance management
(a) Select and calculate suitable bases for setting transfer prices for decision-making and performance measurement based on give information for a given business evaluating the results and advising upon management action.
(b) Select and explain suitable divisional performance measures for a given business using return on investment, residual income and economic value added approaches evaluating the results and advising upon management action.

3. Planning and Control
(a) The purpose of budgetary control systems
 Alternative approaches to budgeting including incremental budgeting, zero-based budgeting, activity-based budgeting and rolling budgets
(b) Variance Analysis
(i) Calculate and present using absorption or marginal costing techniques performance management reports
that reconcile actual and budgeted results.
(ii) Apply flexed budgeting techniques to a given scenario.
(iii) Calculate using given information and advise management of the implications of and actions required based on variances including:

  • Sales, price and volume variances.
  • Materials use and price variances.
  • Variable overhead expenditure and efficiency variances.
  • Fixed overhead volume, capacity and efficiency variances.
  • Material mix and yield variances.
  • Sales mix and quantity variances.
  • Planning and operational variances


Advanced decision-making and decision support
(a) Select and calculate suitable relevant cost bases based on given data and information evaluating the results and
advising on management action.
(b) Select, calculate and present cost volume profit analyses and break even analyses based on a given business and
given data and information using both numerical and graphical techniques evaluating the results and advising on
management action including single and multiple product decisions.
(c) Select relevant limiting factors for a scarce resource or resources in a given business scenario applying a relevant
technique given business objectives including make or buy decisions.
(d) Calculate and present using simultaneous equations or graphical techniques an optimal solution to a given business problem with scarce resources advising upon management action
(e) Calculate and present numerically and graphically the optimum selling price for a product or service using given
data and information for a given business and advising upon management action.
(f) Select and advise management upon suitable pricing strategies for a given business based on a given business
scenario and given business objectives using linear programming technique.
(g) Select calculate and advise management upon suitable techniques to deal with make or buy decisions, in-house or
outsourcing decisions, contract pricing decisions and decisions on whether to undertake further processing or not.
(h) Select and explain how management can deal with uncertainty in decision-making including the use of
simulation, decision-trees, expected values and sensitivity analysis applying such techniques to a given business with
given data and information including giving advice to management.
(i) Target costing and lifecycle costing
(j) Product and segment profitability analysis
(k) Theory of constraints, throughput and backflush accounting
(l) Activity-based analysis for decision making

C Strategic Performance Management 25%

(a) Analyse and evaluate given a scenario for a given business
given its objectives, critical success factors and strategy using techniques such as c analysis, five forces analysis, the Boston Consulting Group model, value chain analysis, Ansoff’s matrix bench marking, and other suitable strategic models including information about its strengths weaknesses opportunities and threats suitable performance measures at a strategic level.
(b) Analyse and evaluate including calculations of suitable performance measures for a business given a scenario
including return on capital employed, return on investment, earnings per share, earnings before interest, tax, depreciation and amortisation, residual income, net present value and internal rate of return and assessment of mutually exclusive projects with unequal lives.
(c) Analyse and evaluate given a business scenario suitable measures of liquidity, gearing and cash flow for a business entity.


1. Performance and management systems
(a) Evaluate and advise management on suitable information technology and information systems support that may
enable them to operate effective operational and strategic performance management systems covering:
i. Sources of Information
ii. Information Technology tools for Performance management at various levels (Strategic, Tactical and
iii. Use of Internet Technologies for Performance management and Key performance Indicators
(b) Evaluate and advise management on suitable approaches that may be used to manage people issues and change
when implementing performance management systems.

2. Systems Design, Acquisition and Development Process
Explain, describe or discuss the stages of the systems acquisition and development process and understand the role of the accountant within it.

  • Systems acquisition/development life cycle phases, tasks
  • Investigation and feasibility studies
  • Requirements analysis and initial design
  • Systems design, selection, acquisition/development
  • Systems implementation
  • Systems maintenance and program changes
  • Project management, project planning, project control
  • Methods and standards


An understanding of the public sector environment, legal framework and financial authorities that support the compilation of reliable financial accounts for the public sector and evaluation of the financial performance of the Nigerian economy.

Content and Competences


1. The Constitutional and Regulatory Framework Of Public Sector
Explain the importance of the constitutional, legislative and
regulatory context of public sector accounting with specific
emphasis on:
i. The constitutional provisions on revenue, revenue allocation and public expenditure (Federal, State and Local Public sector)
ii. The provision of the finance (Control and Management Act of 1958, as amended).
iii. Financial Regulations for Federal and State Public sector, and the financial Memoranda for Local Public sector.
iv. Federal Treasury Accounting Manual
v. Fiscal Responsibility Act, 2010
vi. Public procurement Act, 2007
vii. The Generally Accepted Accounting Principles applicable to the Public sector, Local and International Sources.
viii. Nigerian Extractive Industries Transparency Initiative (NEITI)
ix. Ethical issues in Public sector Accounting
x. Structure, governance and standard setting process of IPSASB

2. Public Sector Accounting Concepts and Pronouncements
i. Accounting concepts, bases and principles relevant to public sector accounting.
ii. The concept of funds, its relationship to the entity concept
and its implications for income measurement and valuation.
iii. Professional pronouncements on public sector accounting by the United Nations, the International Committee on Public sector Financial Management, Chartered Institute of Public Finance and Accountancy (CIPFA) and international Federation of Accountants (IFAC)
iv. Standardization of Federal and State Public sector Reporting Formats in Nigeria
v. Cash and Accruals basis accounting and public sector accounting
vi. Relevant International Public Sector Accounting Standards
vii. Emerging issues in Nigeria Public Sector


Planning and Budgeting in Public Sector
(a) Planning and Budgeting
i. Describe and explain the Medium-Term Expenditure Framework
ii. Describe the objectives/Uses of Annual Budget in the Public Sector
iii. Differentiate and compile different types of Budgeting
 Line – Item Budgeting System
 Traditional/Incremental Budgeting System
 Planning Programming Budgeting System (PPBS)
 Programme Performance Budgeting System (PBS)
 Zero – Based Budgeting System (ZBB)
(b) Differentiate between Rolling Plans and Perspective Plans
i. Relationship between rolling and perspective plans with PPBS.
ii. Linkages between the perspective plan, rolling and the annual budgets Zero – Based
(c) Describe Budgeting Process and Budgetary Control
i. Stages in the Budget Cycle
ii. Procedure for Budget Execution and Achievement of Target
iii. Vote Book and Expenditure Control
iv. Revenue Control Procedures

(d) Appraise projects in the public sector using
i. Cost-benefit analysis
ii. Cost-outcome analysis
iii. Cost-effectiveness analysis
iv. Net present value and internal rate of return
v. Dimensions of project performance such as availability, efficiency, outcome, effectiveness and accessibility.


1. Public Sector Accounting and Financial Reporting
(a) Public Sector Accounting Processes
i. Compile Treasury Cash Book and Transcripts
ii. Describe Cash Management and Borrowing Guidelines
iii. Describe Types of Vouchers and their Uses
iv. Describe and Prepare Bank Reconciliation Statement
v. Prepare or/and describe using approved standard formats, the following:
 Subsidiary Accounts – Deposit, Advance, Remittance/Cash Transfers
 Loss of Public sector Fund
 Payroll Accounting and Pension fund
 Accounting for Foreign Mission

(b) Prepare Statutory Financial Statements in Federal and State Treasury:
i. Cash Flow Statement, Consolidated Revenue Fund, development fund and Statement of Assets and
ii. Prepare Statutory Financial Statements in Local Public sectors
iii. Accounting for public sector contract
 Fundamental principles for Procurement in the Public Sector
 Tendering procedures on Construction/Contract, Goods and Services.
 Approving authority and limit.
 The role of procurement Planning Committee.
 Contract Payment Procedures
 Due process

(c) Interpret Public Sector Financial Statements using relevant and appropriate techniques.

2. Accounting for Public Sector Organizations and Government Business Entity
(a) Describe the general nature of and differences among these bodies.
(b) Describe the financial provisions of enabling law for the relevant utilities, authorities, parastatals, boards, corporations, agencies and tertiary educational institutions.
(c) Compile for the relevant utilities, authorities, parastatals, boards, corporations, agencies and tertiary educational
i. Statement of Financial Position
ii. Statement of Financial Performance
iii. Statement of Changes in Net Assets/Equity
iv. Statement of Cash flow
v. Explanatory Notes

3. Public Sector Audit
(a) State and explain the legal requirements for audit in the
public sector and the role of the Accountant General and
Auditor General.
(b) Explain the processes of appointing Auditors
(c) Explain the basic steps in the process of auditing public
sector financial statements.
(d) Explain the concept of public accountability in the public
(e) State and explain the financial guidelines for the operation of
public sector
(f) Explain the financial responsibilities of public sector officers.
(g) State the nature and types of financial control in public sector.
(h) Explain the Financial Control Institutions within the public sector including their functions and procedures:
 Ministry of Finance, Office of the Accountant-General of the Federation, Budget Office, Expenditure Control
Unit/Fund Section.
(i) State and explain the roles of National and State Assemblies and Local Public sector Councils in financial management and Control.
(j) Explain the financial management and virement procedures.
(k) Evaluate and explain generally the application of International Standards of Supreme Audit Institutions (ISSAI)
standards for assurance and audit and their relationship with International Standards on Audit (ISA’s).
(l) State and explain in context the role of value for money audit.


(a) The economic environment and role of the public sector.
i. Assess and evaluate the performance of the Nigerian Economy.
ii. Describe the role of the public sector in the economy
iii. Describe the objectives of fiscal responsibilities.
(b) Main sources of revenue and capital finance.
State and explain the types of Revenue
i. Federation Accounts Revenue
ii. Federal Public Sector Independent Revenue
(c) Identify and explain the roles of Revenue collection agencies
i. Nigerian National Petroleum Corporation (NNPC)
ii. Federal Inland revenue Service (FIRS)
iii. State Board of Internal Revenue Service
iv. Department of Petroleum Resources (DPR)
v. Nigerian Customs Service (NCS)
(d) Evaluate the role of the Federation Accounts Allocation Committee
i. Composition and functions
ii. Bases of revenue allocation
(e) Identify the charges to the Consolidated Revenue Fund
(f) State and evaluate the revenue collection procedures and
(g) Identify and explain grants as source of revenue to state and
local government
(h) Assess and evaluate the expenditure and revenue framework of public finance
(i) Assess Borrowing policy and public debts
i. Funded and unfunded debts
ii. External loans: multilateral, Paris Club, London Club, promissory notes, others.
(j) Evaluate the debt management strategies
i. Loans pooling and consolidation.
ii. Loan re-scheduling
iii. Debt-equity swap
iv. Debt forgiveness
v. Principles and practice of federalism, fiscal federalism, fiscal capacity and needs in multi-level public sector
(k) Evaluate Inter-public sectoral fiscal relations, Nigeria’s experience with revenue allocation.

Applicable Accounting Standards:

accounting standard 1

accounting standard 2



All new standards and laws may be examined after six months from the date of issue.


This syllabus element takes knowledge from the first level into a contemporary business context in which excellence in management, effective risk management, sound corporate governance and good ethics support the operation of businesses, whether private or public sector entities that are better able to meet objectives, expectations and
are focused on long-term sustainable success. Students will be expected to be capable of analysing simple scenarios in terms of good and best practice and compliance in the context of knowledge and skills that they have cumulatively developed.

Content and competences


1. Analysis:
(a) Analyse a business and its strategy given its purpose, mission, vision and objectives from a shareholder and stakeholder perspective.
(b) Analyse the opportunities and threats arising from events or potential events in the environment of a business at a global, national, market, product and competitive level.
(c) Analyse the current position of a business in terms of its competitive strategy, plans and current markets drawing
conclusions and giving straightforward advice on the chosen plans.
(d) Analyse the current position of a business with a chosen strategy in the context of its environment based on an
assessment of its resources, processes, people, IT, products core capabilities and competences, giving straightforward advice.
(e) Draft an overall analysis drawing conclusions with advice based on given financial and non-financial data and
information from a variety of sources in a given scenario.

2. Choice:
(a) Analyse the appropriate choices of strategy that a company may adopt with explanation based on a given scenario.
(b) Identify from an analysis undertaken of choices of strategy, with explanation, the impact on commercial, ethical,
corporate responsibility and sustainability objectives
(c) Evaluate appropriate strategies based on a given scenario that support a business’s objectives taking into account constraints, conflicts and other issues.
(d) Draft conclusions based on market and product analyses that support a business strategy concerning the pricing,
positioning, placing and product decisions in a strategic marketing plan.

3. Implementation:
(a) Analyse the alternative appropriate functional strategies that may be appropriate to deliver a chosen strategy set out in a given scenario.
(b) Analyse the alternative appropriate organisational structures and related activities that may be appropriate to deliver a chosen strategy set out in a given scenario.
(c) Analyse a chosen business strategy in a given scenario so that an evaluation may be undertaken leading to the drafting of a simple business plan.
(d) Evaluate a given business plan from a shareholder or stakeholder perspective drawing conclusions and judgments as to whether it can meet the business’s objectives in the context of its environment.
(e) Evaluate and explain how information technology and information systems can support the effective implementation of a business strategy including issues of competitive advantage.
(f) Evaluate and explain the potential issues of change arising from a chosen or given business strategic implementation plan.


(a) Explain the meaning of risk and business risk including risks arising externally or internally and relating to achievement of
i. Strategic objectives
ii. Operational efficiency and effectiveness
iii. Reliable reporting
iv. Legal, regulatory and ethical compliance
(b) Identify and assess risks in a given scenario and their impact upon objectives.
(c) Identify and explain appropriate responses to risks identified in a given scenario.
(d) Identify and explain appropriate high level procedures to mitigate risks in a given scenario.
(e) Identify and explain appropriate mechanisms to monitor risk and risk management processes including information and communication systems.
(f) Evaluate both inherent and residual risks after mitigation and judge them in relation to shareholder and stakeholder risk appetites in a given scenario.


(a) Identify and explain the nature, significance and scope of enterprise governance and threats to effective governance.
(b) Identify and based on a given scenario assess the role and responsibilities of an effective board.
(c) Identify and based on a given scenario assess the issues of accountability of management to a board, private and
institutional shareholders.
(d) Identify and based on a given scenario evaluate the issues of transparency for an entity.
(e) Explain the importance of probity as a principle of governance assessing issues and their implications in a given scenario.
(f) Assess the extent to which a board is focusing on sustainable long-term success in a given scenario.
(g) Assess the extent to which a board in the public sector is focusing on delivery of an effective and appropriate public service and acting in the public interest.
(h) Discuss global development in enterprise and corporate governance.
(i) Identify the scope, background and concept of corporate social responsibility.
(j) Identify the scope, background and concept of sustainability in business.
(k) Explain, describe or discuss the governance and management issues regarding Information Technology in organisations

D. ETHICS: 25%

(a) Explain and illustrate using information in a given scenario the meaning of business ethics.
(b) Identify and explain in the context of a given scenario how business ethics and moral duties may be linked.
(c) Identify and explain in the context of a given scenario how business ethics and business success may be linked.
(d) Identify and assess in a given scenario issues of ethics and corporate social responsibility.
(e) Identify and assess in a given scenario issue of professional ethics and corporate governance in accordance with ICAN Code of Professional Conduct and IFAC Code of Ethics for Professional Accountants.
(f) Identify ICAN Professional Code of Conduct and Guide for members

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