Sound analysis can still lose marks if the report reads badly or breaks the expected format. This topic covers the language rules, the page-by-page layout and the disclaimer that an external report needs.
In 30 seconds
Write accurately and objectively, in language the reader knows. Keep it brief, define every abbreviation before use and check spelling and capitals. Use the set layout: a cover page with a disclaimer, then the executive summary, the report on each requirement with its own conclusions and recommendations, and the appendices.
Language and style
Make sure of the following: subjects agree with verbs, capital letters are correct, pronouns are correct, and every abbreviation is explained before you use it. Cut any word, sentence or section that changes nothing if removed. Choose an approach that holds the reader’s interest and use language the recipient knows. Avoid spelling mistakes and too many capital letters.
Two things are essential. Accuracy means your financial, data and business analysis rests on the information in the case and your appendices. Objectivity means no emotion or personal prejudice. Base conclusions and recommendations on the facts in the case, not on what you feel it should be.
The report format
| Pages | Content |
|---|---|
| Page 1 | Cover page: to whom, the subject of the report, who prepared it (your firm for an external report, your boss or department for an internal one), the date and the disclaimer |
| Page 2 | Executive summary: general section (purpose, the two requirements, assumptions and reservations), then conclusions and recommendations for each requirement |
| Next pages | Report on requirement 1, with headings, conclusions and recommendations |
| Following pages | Report on requirement 2, with headings, conclusions and recommendations |
| Last pages | Appendices |
The disclaimer
An external report needs a disclaimer, usually on the cover page. A suitable wording is: “This report is prepared for the Board of Directors of [client] and is intended for their use. We accept no liability to third parties who may rely on its contents without due authorisation.”
Common mistakes
- No disclaimer on an external report.
- Using an abbreviation before explaining it.
- Emotional or opinionated comments instead of facts.
Quick revision
- Accuracy and objectivity.
- Brief, correct, familiar language.
- Cover, summary, requirement 1, requirement 2, appendices.
- Disclaimer for external reports.
Practice questions
These are original questions in the style of the Institute of Chartered Accountants of Nigeria exam.
Question 1. Where is the disclaimer usually placed?
- The cover page
- The last appendix
- The executive summary
- Nowhere
Show the answer
A. It goes on the cover page of an external report.
Question 2. Objectivity means:
- Giving your own opinion
- Basing conclusions on facts in the case, without prejudice
- Avoiding conclusions
- Copying the client
Show the answer
B. Leave out emotion and personal views.
Question 3 (4 marks). State the two musts of a Case Study report and the contents of its cover page.
Model answer
Show the model answer to Question 3
The musts are accuracy and objectivity. (2) The cover page names the reader, the subject, who prepared the report and the date, and carries the disclaimer. (2)
The next topic covers financial statements analysis: its types and techniques.
Pathfinder on Language, style and the disclaimer in a Case Study report
These are the ICAN Pathfinder questions that test this topic. ICAN owns the questions and the suggested solutions, so we point you to them and do not copy them. Open your Pathfinder, attempt each question under exam conditions, then check your answer against the notes above.
Each key rewards a relevant disclaimer for an external report, language suited to the board, tactful comments and acceptable spelling. Check your report against those four points.
Revise first: Language and style
The report names the missing disclaimer as a pitfall. Compare your cover page with the disclaimer in this topic.
Revise first: The disclaimer
Source: ICAN Pathfinder, Case Study. Diets covered: November 2014, May 2015, November 2015 and May 2016.
Spotted a mistake? Tell us and we will check it.
