SAICA questions can be categorized based on the specific Competency Framework they are designed to assess. The framework outlines the knowledge, skills, and attributes that a professional accountant should possess. These categories cover various aspects of accounting, finance, and business.
1. Financial Management
These questions test a candidate's ability to manage an entity's finances. They often involve topics like:
Capital budgeting: Evaluating investment projects using techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period.
Working capital management: Managing short-term assets and liabilities like cash, accounts receivable, and accounts payable to ensure liquidity.
Corporate finance: Understanding capital structure, cost of capital, and dividend policy.
Risk management: Identifying and mitigating financial risks.
2. Management Accounting
This category focuses on using accounting information for internal decision-making. Questions often cover:
Costing: Applying different costing methods (e.g., standard costing, activity-based costing) to products or services.
Budgeting: Preparing and analyzing various budgets (e.g., master budget, flexible budget).
Performance management: Using financial and non-financial metrics to evaluate the performance of business units or individuals.
Decision-making: Analyzing short-term decisions like make-or-buy or special orders.
3. Auditing & Assurance
These questions assess a candidate's understanding of the audit process and assurance engagements. Key areas include:
Audit planning: Assessing risk, determining materiality, and developing an audit strategy.
Substantive procedures: Designing and performing tests of details to gather evidence about account balances.
Internal controls: Evaluating the effectiveness of an entity's internal control system.
Audit reporting: Issuing different types of audit opinions (unmodified, qualified, adverse, or disclaimer) based on the audit findings.
4. Financial Reporting
This is a foundational category that tests knowledge of International Financial Reporting Standards (IFRS). Questions often involve:
Recognition and measurement: Applying IFRS principles to recognize and measure various assets, liabilities, and equity items.
Presentation and disclosure: Preparing financial statements (e.g., Statement of Financial Position, Statement of Comprehensive Income) and related notes in compliance with IFRS.
Specific standards: Applying specific IFRS standards like IFRS 15 (Revenue from Contracts with Customers) or IAS 16 (Property, Plant, and Equipment).
5. Taxation
These questions focus on the application of tax laws. They generally cover:
Income tax: Calculating taxable income and income tax for individuals and companies.
Value-Added Tax (VAT): Understanding the principles of VAT and its application to different transactions.
Capital Gains Tax (CGT): Calculating CGT on the disposal of assets.
Tax planning and ethics: Providing tax advice in an ethical manner.
6. Information Technology (IT)
This competency area has grown in importance. Questions may relate to:
IT governance and controls: Evaluating the effectiveness of IT controls and governance frameworks.
Cybersecurity: Understanding risks related to data security and protection.
Data analytics: Using data to inform business decisions and detect anomalies.
7. Pervasive Skills
These are professional and ethical skills that cut across all the technical competencies. While not a distinct category of questions, they are integrated into all assessments. These skills include:
Ethics and professionalism: Demonstrating integrity, objectivity, and professional behavior.
Communication: Presenting information clearly and effectively.
Problem-solving: Applying critical thinking to solve complex business problems.
Teamwork: Working effectively in a collaborative environment.
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