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ICAM Accounting Technician Diploma (Malawi)

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Key Facts: ICAM CA(M) Exam

50% / 55%

Malawi / ICAEW-Module Pass Marks

ICAM Student Regulations

15 Papers

Total Papers Across 3 Levels

ICAM CA(M) Syllabus

MK 81k–450k

Exam Fee per Paper by Level

ICAM 2026 Rate Card

450 Days

Approved Practical Experience Required

ICAM CA(M) Syllabus

June & Dec

Examination Diets

ICAM Academic Calendar

PAAA 2013

Statutory Authority

Laws of Malawi (Act No. 5 of 2013)

Free 100-question practice test for the ICAM Chartered Accountant Malawi (CA(M)) qualification. Covers Knowledge, Professional, and Advanced level syllabi.

Sample ICAM CA(M) Practice Questions

Try these sample questions to review concepts for the ICAM CA(M) exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A CA(M) trainee is told that decision-useful financial information must both be capable of affecting users' decisions and depict the underlying economic phenomena completely, neutrally, and without error. Which two Conceptual Framework characteristics are being described?
A.Relevance and Faithful Representation
B.Comparability and Understandability
C.Verifiability and Timeliness
D.Prudence and Substance Over Form
Explanation: The Conceptual Framework explicitly designates Relevance (capable of making a difference in user decisions) and Faithful Representation (complete, neutral, and free from error) as the two fundamental qualitative characteristics. Comparability, verifiability, timeliness, and understandability are enhancing characteristics.
2Under IFRS 15 (Revenue from Contracts with Customers), what is the core 5-step model criterion for identifying when an entity should recognize revenue?
A.Immediately upon signing a legally binding multi-year sales contract
B.When (or as) the entity satisfies a performance obligation by transferring a promised good or service to a customer
C.When the customer remits full advance cash payment into the company's bank account
D.At the financial year-end regardless of whether delivery has occurred
Explanation: Step 5 of the IFRS 15 framework requires revenue recognition when (or as) the performance obligation is satisfied by transferring control of the promised asset (good or service) to the customer.
3Under IFRS 16 (Leases), how must a lessee initially account for virtually all commercial leases on its Statement of Financial Position, subject to short-term and low-value recognition exemptions?
A.Record the full contractual commitment as an off-balance-sheet contingent liability
B.Charge all lease payments directly to operating expenses on a straight-line basis
C.Recognize a Right-of-Use (ROU) asset and a corresponding lease liability
D.Classify the arrangement as an operating lease and disclose payments in notes only
Explanation: IFRS 16 eliminated the operating/finance lease distinction for lessees. Lessees must recognize a Right-of-Use (ROU) asset representing the right to use the underlying asset and a lease liability representing the obligation to make lease payments.
4Under IAS 37 (Provisions, Contingent Liabilities and Contingent Assets), what three criteria must be met before a provision can be recognized in the financial statements?
A.A legal obligation, remote economic outflow, and written agreement from creditors
B.A possible obligation resulting from future events, certain cash outflow, and board approval
C.A future operating commitment, probable cash receipt, and approval from the external auditor
D.A present obligation resulting from a past event, probable outflow of economic resources, and a reliable estimate can be made
Explanation: IAS 37 paragraph 14 requires: (1) an entity has a present obligation (legal or constructive) as a result of a past event; (2) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (3) a reliable estimate can be made of the amount.
5Under IFRS 3 and IAS 36, how must goodwill acquired in a business combination be subsequently accounted for?
A.Tested for impairment annually (or more frequently if indicators exist) and never amortized
B.Amortized on a straight-line basis over a statutory maximum period of 10 years
C.Revalued annually to fair value with gains credited to other comprehensive income
D.Written off directly to retained earnings in the year of acquisition
Explanation: IFRS 3 prohibits amortizing goodwill acquired in a business combination. IAS 36 requires the relevant cash-generating unit or group of units to be tested for impairment annually and whenever impairment indicators exist.
6At year-end, a wholesaler has inventory costing MK 30,000,000. Its estimated selling price is MK 31,000,000, with MK 1,000,000 of completion costs and MK 1,500,000 of selling costs. At what amount should the inventory be measured under IAS 2?
A.MK 30,000,000
B.MK 28,500,000
C.MK 31,000,000
D.MK 29,500,000
Explanation: Net realizable value is MK 31,000,000 - MK 1,000,000 - MK 1,500,000 = MK 28,500,000. IAS 2 measures inventory at the lower of cost (MK 30,000,000) and net realizable value, so the carrying amount is MK 28,500,000.
7On 1 January 2025, Parent Co acquired 80% of the 1,000,000 ordinary shares of Sub Co for MK 320,000,000 cash. At that date, Sub Co's identifiable net assets had a fair value of MK 350,000,000. Parent Co elected to measure non-controlling interest (NCI) at proportionate share of net assets. What is the goodwill arising on acquisition?
A.MK 70,000,000
B.MK 20,000,000
C.MK 40,000,000
D.MK 50,000,000
Explanation: Consideration transferred = MK 320,000,000. Non-controlling interest at proportionate share = 20% of MK 350,000,000 = MK 70,000,000. Total value = MK 320,000,000 + MK 70,000,000 = MK 390,000,000. Less fair value of net identifiable assets = MK 350,000,000. Goodwill = MK 390,000,000 - MK 350,000,000 = MK 40,000,000. (Alternatively: Consideration MK 320M - 80% of MK 350M [MK 280M] = MK 40,000,000).
8At 31 December 2025, an entity has plant with a carrying amount of MK 24,000,000 and a tax base of MK 16,000,000. The enacted corporate tax rate in Malawi is 30%. The entity had an opening deferred tax liability of MK 1,800,000. Assuming no other temporary differences, what is the deferred tax expense recognized in profit or loss for 2025 under IAS 12?
A.MK 1,800,000
B.MK 2,400,000
C.MK 800,000
D.MK 600,000
Explanation: Taxable temporary difference = Carrying amount (MK 24,000,000) - Tax base (MK 16,000,000) = MK 8,000,000. Closing deferred tax liability = MK 8,000,000 x 30% = MK 2,400,000. Opening deferred tax liability = MK 1,800,000. Deferred tax expense in profit or loss = Closing liability (MK 2,400,000) - Opening liability (MK 1,800,000) = MK 600,000.
9On 1 January 2024, Blantyre Breweries issued MK 100,000,000 6% convertible debentures at par. Interest is payable annually in arrears. The debentures are redeemable on 31 December 2026 at par or convertible into ordinary shares. The market interest rate for similar debt without conversion rights is 9% per annum. Present value factors at 9% are: Year 1 = 0.917; Year 2 = 0.842; Year 3 = 0.772. Under IAS 32, what is the value assigned to the equity conversion option at initial recognition?
A.MK 7,614,000
B.MK 92,386,000
C.MK 15,186,000
D.MK 6,000,000
Explanation: Annual interest = 6% x MK 100,000,000 = MK 6,000,000. PV of interest = MK 6M x (0.917 + 0.842 + 0.772) = MK 6M x 2.531 = MK 15,186,000. PV of principal repayment = MK 100M x 0.772 = MK 77,200,000. Total liability component = MK 15,186,000 + MK 77,200,000 = MK 92,386,000. Value of equity conversion option = Total proceeds (MK 100,000,000) - Liability component (MK 92,386,000) = MK 7,614,000.
10A parent company sold inventory costing MK 40,000,000 to its 80%-owned subsidiary for MK 50,000,000 during the year. At the reporting date, 30% of these goods remained unsold in the subsidiary's warehouse. How is the unrealized intra-group profit eliminated in the consolidated financial statements?
A.Debit Consolidated Inventory MK 3,000,000; Credit Consolidated Revenue MK 3,000,000
B.Debit Consolidated Cost of Sales MK 3,000,000; Credit Consolidated Inventory MK 3,000,000
C.Debit Consolidated Cost of Sales MK 10,000,000; Credit Consolidated Inventory MK 10,000,000
D.Debit Non-Controlling Interest MK 600,000; Credit Consolidated Inventory MK 600,000
Explanation: Total profit on transfer = MK 50,000,000 - MK 40,000,000 = MK 10,000,000. Unsold portion = 30% of MK 10,000,000 = MK 3,000,000. Since the parent made the sale (downstream), the entire unrealized profit belongs to the parent and is eliminated by debiting Cost of Sales (reducing group profit) by MK 3,000,000 and crediting Group Inventory (reducing asset to cost) by MK 3,000,000.

About the ICAM CA(M) Exam

The Chartered Accountant Malawi CA(M) qualification is administered by the Institute of Chartered Accountants in Malawi (ICAM) through Knowledge, Professional, and Advanced levels. It covers financial reporting, audit, financial management, strategy, Malawian tax, and public sector accounting. Admission also requires 450 days of approved practical experience and applicable professional registration. OpenExamPrep provides independent English-language MCQ practice for topics across the published syllabus; it is not an official ICAM resource or format simulation.

Exam sponsor: Institute of Chartered Accountants in Malawi (ICAM). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

3 levels: Knowledge Level (Accounting Framework, Management Information, Legal Framework, Assurance, Principles of Taxation, Business & Finance, Financial & Management Accountancy Skills & Competence); Professional Level (Financial Management, Financial Accounting & Reporting, Audit & Assurance, Tax Compliance, Public Sector Accounting, Business Strategy & Technology); Advanced Level (Corporate Reporting, Strategic Business Management). The 2026 timetable also shows Next Generation CBE modules during transition. This bank is an independent English-language MCQ study adaptation.

Time Limit

Varies by paper; 2026 Professional Level CBEs are 2.5–3 hours and Advanced Level CBEs are 3.5 hours

Passing Score

50% for Malawi-developed modules; 55% for ICAEW-derived modules

Exam / Certification Fees

MK 81,000 (Level 1), MK 263,000 (Level 2), MK 450,000 (Level 3) per paper; plus MK 82,800 annual subscription

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

20% (20 questions)

Financial Accounting & Corporate Reporting

IFRS application, complex group consolidations, financial instruments, revenue recognition, and financial statement disclosures.

16% (16 questions)

Audit & Assurance

ISAs, risk assessment, materiality, internal control systems, substantive procedures, professional scepticism, and audit reporting.

16% (16 questions)

Tax Compliance & Planning in Malawi

Malawi Taxation Act, corporate tax computations, PAYE, VAT mechanisms, withholding taxes, transfer pricing, and MRA administration.

16% (16 questions)

Financial Management & Management Information

NPV, IRR, WACC, capital structure, business valuation, working capital optimization, and financial risk management.

12% (12 questions)

Business Strategy & Technology

Strategic frameworks, corporate governance, digital tools, IT risk management, and strategic performance evaluation.

10% (10 questions)

Public Sector Accounting

IPSAS standards, Malawi Public Finance Management Act, government budgeting, and public expenditure accountability.

10% (10 questions)

Legal Framework & Professional Ethics

Companies Act 2013, PAAA 2013, corporate insolvency, director duties, and IFAC/ICAM ethical principles.

Preparing for the ICAM CA(M) Exam

What You Need to Know

  • Passing score: 50% for Malawi-developed modules; 55% for ICAEW-derived modules
  • Assessment: 3 levels: Knowledge Level (Accounting Framework, Management Information, Legal Framework, Assurance, Principles of Taxation, Business & Finance, Financial & Management Accountancy Skills & Competence); Professional Level (Financial Management, Financial Accounting & Reporting, Audit & Assurance, Tax Compliance, Public Sector Accounting, Business Strategy & Technology); Advanced Level (Corporate Reporting, Strategic Business Management). The 2026 timetable also shows Next Generation CBE modules during transition. This bank is an independent English-language MCQ study adaptation.
  • Time limit: Varies by paper; 2026 Professional Level CBEs are 2.5–3 hours and Advanced Level CBEs are 3.5 hours
  • Exam / certification fees: MK 81,000 (Level 1), MK 263,000 (Level 2), MK 450,000 (Level 3) per paper; plus MK 82,800 annual subscription Official sources

Using Our Practice Resources

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

ICAM CA(M): Suggested Study Strategy

1Master IFRS reporting standards in depth, especially IFRS 15 (Revenue), IFRS 16 (Leases), and IFRS 9 (Financial Instruments), including consolidation entries.
2Ensure a thorough working knowledge of the Malawi Taxation Act and current Malawi Revenue Authority (MRA) practice, including withholding tax rates and VAT mechanics.
3Understand Public Sector Accounting under IPSAS and the Malawi Public Finance Management Act, which constitutes a mandatory paper at the Professional Level.
4Practice multi-step financial management calculations including NPV with taxation, sensitivity analysis, WACC, and Black-Scholes or dividend growth valuations.
5For Audit & Assurance, frame responses around ISA audit procedures (substantive testing, analytical review, control testing) and ethical safeguards.

Frequently Asked Questions

What is the structure of the ICAM CA(M) qualification?

The published CA(M) structure consists of 15 papers across three levels: Knowledge Level (7), Professional Level (6), and Advanced Level (2). The 2026 timetable also identifies traditional and Next Generation modules during transition. Candidates must complete the applicable examinations and 450 days of approved practical experience.

What is the passing score for ICAM CA(M) papers?

The published syllabus states a 50% pass mark for Malawi-developed modules and 55% for modules derived from ICAEW.

How much are the examination fees for ICAM CA(M) in 2026?

According to the ICAM 2026 Rate Card, examination fees are MK 81,000 per paper for Level 1 (Knowledge Level), MK 263,000 per paper for Level 2 (Professional Level), and MK 450,000 per paper for Level 3 (Advanced Level). The annual student subscription fee is MK 82,800.

What are the entry routes to the ICAM CA(M) qualification?

Published entry routes include A levels, non-accounting and accounting degrees, the ICAM/PAEC Foundation Certificate, the ICAM/PAEC Technician Diploma, and recognized international or foreign accountancy qualifications. The exemptions awarded depend on the route and ICAM's assessment.

Does the CA(M) qualify graduates to practice as auditors in Malawi?

CA(M) completion does not by itself authorize public audit practice. A graduate must also satisfy the practical-experience and registration requirements and separately meet the Malawi Accountants Board's requirements for any practicing or audit license sought.