ACA SKILLS DEVELOPMENT GRID

PROFESSIONAL LEVEL
TAX COMPLIANCE

ICAEW 2013

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 2013

Skills development grid

This document presents the skills assessed alongside technical knowledge for the Tax Compliance
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 2013

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

TAX COMPLIANCE
Assimilating and using information
Assessed skills
Reading and understanding subject matter.
Accessing, evaluating and managing information provided in a few defined sources.
Operating to a brief in structured situations.
How skills are assessed
Questions will contain both structured and unstructured detail in scenarios that candidates have to
read, assimilate and understand.
The information will be presented in a business context, with varying technical complexity.
Information may need to be assimilated from various sources within the question. Some issues
may need to be deduced by inference or analysis.
Candidates may be required to explain the implications of proposed transactions in any of the
following ways:
calculation of tax liabilities and reliefs available;
written description of tax treatments;
explanation of tax treatments in light of unstructured information relating to individuals,
partnerships or companies;
description of the availability and values of tax reliefs within the context of numerical questions;
explanation of alternative tax treatments; and
explanation of ethical issues within given scenarios.
All of these skills will be assessed in the context of:
Ethics and law.
Capital gains tax.
Income tax.
Inheritance tax.
National insurance contributions.
Corporation tax.
VAT and stamp taxes.

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Structuring problems and solutions

Assessed skills
Understanding data and information given: identifying and understanding issues arising in
straight forward 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.
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.
Identifying and explaining the consequence of unethical behaviour.
Identifying and using relevant up to date content of the IFAC and ICAEW Codes of Ethics.
Recognising legal and ethical issues arising from situations likely to be encountered by trainee
chartered accountants; identifying possible courses of action to resolve them.
How skills are assessed
Candidates may be required to:
calculate tax liabilities from a given scenario;
demonstrate relevant technical knowledge;
perform relevant, accurate calculations in a logically structured way;
identify different business entities and their tax status (eg, company, sole trader, partnerships),
and understand the tax implications thereof;
integrate verbal descriptions with calculations;
use calculations to illustrate an answer; and
provide relevant legal and ethical information in the context of a tax scenario.

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.
Sensitivity analysis: demonstrating an understanding of sensitivities to change; calculating a
range of outputs for given inputs.
Appreciating when more expert help is required in a given straight forward situation.
Exercising ethical judgement.
Conducting critiques: critically reviewing a statement, argument or position.
How skills are assessed
Candidates may be asked to critically evaluate the quality, completeness and integrity of
information put forward by tax payers.
Candidates may be required to assess the legality of options and the consequences of various
courses of action with regard to:
new client procedures;
HMRC errors;
money laundering; and
tax avoidance and evasion.

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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 straight
forward situation.
Formulating opinions, reservations, advice, recommendations, plans, solutions, options and
risks including business implications in a given straight forward situation.
Preparing, describing, outlining the advice, report notes required in a given straight forward
situation.
How skills are assessed
Candidates may be asked to analyse the implications of various courses of action out of a limited
set of prescribed options.
Candidates may be required to:
determine the tax implications of scenarios and proposals to provide alternative tax
implications;
take a given set of circumstances and reach a reasoned conclusion; and
justify a conclusion made using knowledge of the existing tax regime.
Illustrative examples of this would be to reach conclusions on:
possible VAT treatments eg with regard to transactions involving land and buildings;
inheritance tax implications of a proposed lifetime transfer or a transfer on death;
the impact of residency status on income tax, capital gains tax or corporation tax; or
whether an individual is trading by applying the badges of trade to reach a reasoned conclusion.
This list is not exhaustive.

ICAEW 2013