What is the ICAN Professional C5 Case Study exam?

Paper C5 Case Study is the capstone examination for becoming a Chartered Accountant in Nigeria through ICAN. It tests multidisciplinary integration of accounting, finance, governance, strategy, and professional ethics.

What is the official exam format and pass mark?

The official exam is a 4-hour written scenario-based report using pre-seen and unseen case information. The pass mark is 50%. Our 100-question online bank provides an MCQ study adaptation to test underlying concepts.

How much does the ICAN Professional exam cost in Nigeria?

ICAN Professional Level paper fees are ₦40,740 for a single paper (with scaled pricing for multiple papers per sitting, up to ₦93,870 for 5 papers), per the official ICAN fee schedule. Check your student account on icanportal.org for current diet rates.

When are ICAN exams held?

ICAN professional examinations are held twice a year, typically in May and November.

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Sample ICAN Professional Case Study Practice Questions

Try these sample questions to test your ICAN Professional Case Study exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A Nigerian manufacturing conglomerate signed a ₦500 million contract to supply and install industrial machinery over a 12-month period. Under IFRS 15 (Revenue from Contracts with Customers), when should revenue from the installation service be recognized if the installation performance obligation is satisfied over time?

A.Progressively over time as performance obligations are satisfied using an input or output method

B.100% upfront on the contract signing date when cash deposit is received

C.Only upon final completion of the entire 12-month contract period

D.At the discrete point in time when the final inspection certificate is issued by the customer

Explanation: Under IFRS 15, revenue for a performance obligation satisfied over time is recognized progressively as performance obligations are fulfilled using an appropriate input or output method measuring progress. Recognizing revenue upfront or solely at contract end violates IFRS 15 core revenue timing principles.

2Zuma Plc generated Operating Profit (EBIT) of ₦45,000,000 for the financial year. The company's total capital employed (Total Assets less Current Liabilities) is ₦180,000,000. What is Zuma Plc's Return on Capital Employed (ROCE)?

A.25.0%

B.20.0%

C.15.0%

D.30.0%

Explanation: ROCE is calculated as Operating Profit (EBIT) divided by Capital Employed: ₦45,000,000 / ₦180,000,000 = 0.25 or 25.0%. This reflects the operational return generated per Naira of long-term capital employed.

3A financial analyst is conducting a 3-step DuPont Analysis for Danfo Holdings. The company reports a Net Profit Margin of 12%, an Asset Turnover of 1.5, and an Equity Multiplier of 2.0. What is Danfo Holdings' Return on Equity (ROE)?

A.18.0%

B.36.0%

C.24.0%

D.48.0%

Explanation: Under the 3-step DuPont model, ROE = Net Profit Margin × Asset Turnover × Equity Multiplier = 12% × 1.5 × 2.0 = 36.0%. This breaks down ROE into profitability, operational efficiency, and financial leverage components.

4Kano Agro Ltd has Current Assets of ₦80,000,000 (which includes ₦30,000,000 in raw material and finished goods inventory) and Current Liabilities of ₦40,000,000. Which option correctly state the Current Ratio and Quick (Acid-Test) Ratio?

A.Current Ratio = 2.00; Quick Ratio = 1.25

B.Current Ratio = 2.00; Quick Ratio = 0.75

C.Current Ratio = 1.25; Quick Ratio = 2.00

D.Current Ratio = 1.50; Quick Ratio = 1.00

Explanation: Current Ratio = Current Assets / Current Liabilities = ₦80m / ₦40m = 2.00. Quick Ratio = (Current Assets - Inventory) / Current Liabilities = (₦80m - ₦30m) / ₦40m = ₦50m / ₦40m = 1.25.

5During a case evaluation of Sahara Power Plc, an accountant notes that Net Income grew by 35% YoY, but Operating Cash Flow (CFO) declined by 15% over the same period. The CFO-to-Net Income ratio fell below 0.6. What is the most critical audit concern indicated by this divergence?

A.High risk of aggressive accrual earnings management or uncollected revenues inflating net profit

B.Clear proof that the company is over-investing in non-current tangible fixed assets

C.Definitive evidence of fraudulent payroll expansion across regional operations

D.Indication that equity holders received unrecorded cash dividend distributions

Explanation: A growing net income accompanied by declining operating cash flow (low CFO-to-Net Income ratio) is a red flag for poor earnings quality, aggressive revenue recognition, or mounting uncollected receivables inflating reported net profit without cash backed realization.

6Eko Conglomerate operates 5 distinct divisions. According to IFRS 8 (Operating Segments), an operating segment must be reported separately if its reported revenue, profit/loss, or assets meet or exceed what percentage threshold of the entity's combined total?

A.10%

B.5%

C.15%

D.20%

Explanation: Under IFRS 8.13, an operating segment is reportable if it meets any of the 10% quantitative thresholds: absolute revenue ≥ 10% of combined revenue, absolute profit/loss ≥ 10% of combined profit/loss, or assets ≥ 10% of combined assets.

7In assessing financial statement reliability, which financial metric model is specifically designed to calculate a score predicting whether a company is manipulating its reported earnings?

A.Beneish M-Score

B.Altman Z-Score

C.Piotroski F-Score

D.Gordon Growth Model

Explanation: The Beneish M-Score is a mathematical model combining eight financial ratios to detect financial statement manipulation and earnings management. Altman Z-Score predicts bankruptcy risk, while Piotroski F-Score measures financial strength.

8Why is Return on Capital Employed (ROCE) generally considered a more reliable measure than Return on Equity (ROE) when evaluating operational efficiency across companies with different financial capital structures?

A.ROCE measures operational returns regardless of how the firm is financed by debt or equity

B.ROCE excludes operating profit and focuses exclusively on cash flow generation

C.ROE excludes debt financing completely, making it impossible to evaluate company revenue

D.ROCE automatically adjusts financial statements for general price level inflation

Explanation: ROCE evaluates pre-interest operating profit against total long-term capital employed (debt + equity). It isolates operating efficiency from capital structure choices, unlike ROE which is heavily impacted by financial leverage.

9Under IAS 36 (Impairment of Assets), an asset's recoverable amount is defined as the higher of which two values?

A.Fair Value Less Costs of Disposal (FVLCD) and Value in Use (VIU)

B.Net Realizable Value and Replacement Cost

C.Historical Carrying Amount and Salvage Value

D.Depreciated Replacement Cost and Present Value of Future Cash Outflows

Explanation: IAS 36 defines the recoverable amount as the higher of an asset's Fair Value Less Costs of Disposal (FVLCD) and its Value in Use (VIU). If carrying value exceeds recoverable amount, an impairment loss must be recognized.

10Under IFRS 16 (Leases), how does bringing operating leases onto the lessee's balance sheet as Right-of-Use (ROU) assets and lease liabilities impact key performance ratios compared to pre-IFRS 16 accounting?

A.EBITDA increases and reported debt leverage (Debt/Equity) increases

B.EBITDA decreases and operating cash flow decreases

C.EBITDA remains unchanged while operating cash flow decreases significantly

D.Debt leverage decreases because lease liabilities are classified as equity

Explanation: Under IFRS 16, operating lease expense is replaced by ROU asset depreciation and interest expense on lease liabilities. Because lease expense is moved below EBITDA, EBITDA increases. Simultaneously, recognizing lease liabilities increases financial leverage (Debt/Equity).

About the ICAN Professional Case Study Practice Questions

Verified exam format metadata for ICAN Professional Level C5 Case Study Examination is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.