Before you can write a good report, you must handle the case pack well. The pack is large, the exhibits connect to one another and the clock is short. This topic explains what the pack contains, a six-step method for reading it, the five lines of analysis to follow and a time plan for the four hours.
In 30 seconds
The case pack is a set of exhibits, some narrative, some numerical and some both, that together give one picture of a client or employer. Read the requirements first, skim the whole pack, then re-read the requirements, take notes exhibit by exhibit, study the numbers and only then begin your analysis.
A sensible split of the four hours is one hour for reading and planning, one hour for calculations and two hours for drafting. The two requirements carry equal weight, so balance your effort across them.
What is in the case pack
The paper gives you a case scenario package made of a series of exhibits. Some are mainly narrative, such as an email or an industry overview. Others are mainly numerical, such as extracts from financial statements. The rest mix the two, such as a business plan or supplementary schedules. Legal documents and current press articles may also appear.
Together the exhibits tell you:
- who you are, who your firm or employer is and what your role is;
- who the client or business is and which sector it works in;
- financial, operational and commercial facts about the business;
- the business environment and the strategies in use; and
- other relevant parties, such as customers, suppliers and possible buyers or targets.
The exhibits come in different styles: an internal memorandum, a survey by an outside industry consultant, a letter from a public body. They form one whole picture. Expect obvious links between them and sometimes contradictions, and sort these out before you write. Numbers often appear as management accounts or as extracts from financial statements prepared under International Financial Reporting Standards (IFRS).
Recent papers also issue part of the case in advance. This pre-seen part is published on the Institute’s website and you must not bring it into the examination hall. At the start of the paper you receive the complete scenario, which adds the unseen exhibits and the requirements. The pre-seen part will not answer the requirements for you, so you still have to analyse on the day.
The Institute advises you to spend the days before the paper analysing the financials and researching the industry, and to rely on your own analysis, because the pre-seen part alone will not help you much.
A six-step method for reading the pack
- Read the requirements first. Note your role and who will receive your report.
- Read quickly through the whole pack to see its main contents and limits.
- Re-read the requirements and break each one into smaller tasks.
- Re-read the exhibits one by one and note the key facts of each on a separate sheet.
- Re-read the numerical exhibits with care. This is the first step of your financial analysis.
- Start your analytical work.
Practise this path on real client files, pilot case studies and past papers until it becomes automatic.
The five lines of analysis
Your analysis should follow a clear and consistent pathway. Ask the questions below as you read.
| Line of analysis | Questions to ask |
|---|---|
| 1. Assimilate the information | What information is given? What is my role? What sort of organisation is this? What commercial, organisational or ethical issues appear? |
| 2. Financial statements (the financial story) | Are profits solid, marginal or losses? What are the revenue streams? Is the statement of financial position strong? How is the business financed? Is it generating or absorbing cash? What are its prospects? |
| 3. Financial data (the context of one issue) | What other numbers are given, such as budgets, forecasts and prices? What assumptions sit behind them? Which dates, deadlines or tipping points matter? |
| 4. Operational and strategic analysis | Where is the business in its lifecycle? What issues do such businesses usually face? What are its strengths and weaknesses? |
| 5. Industry, business and ethical awareness | What issues does the industry face? What are the leading firms doing? What ethical issues arise? What are the opportunities, threats and competitive edge? |
The requirement and the time plan
Each paper states its requirement in a set form. You prepare a draft report as set out in an email from your partner or boss. The report answers two detailed requirements and includes financial appendices. State your assumptions clearly and attach all workings. Balance the report across the two requirements.
Recent papers also require an executive summary and warn that failing to address either requirement, or leaving out the summary, will reduce your chances of passing. Write on the answer booklet the Institute provides, because work on any other paper is not marked.
The suggested time is one hour for reading and planning, one hour for calculations and analysis, and two hours for drafting. It is only a suggestion. By the real paper you should have a method you are comfortable with. What does not change is that the two requirements carry equal weight. In minutes the plan looks like this.
| Activity | Overall | Requirement 1 | Requirement 2 | Total |
|---|---|---|---|---|
| Reading and planning | 30 | 15 | 15 | 60 |
| Calculations | 0 | 30 | 30 | 60 |
| Drafting the report | 0 | 60 | 60 | 120 |
| Total | 30 | 105 | 105 | 240 |
Good preparation lets you spot the relevant parts of the scenario quickly and choose the right tools for each requirement. Write the executive summary last, from the time you set aside for drafting.
Common mistakes
- Starting calculations before reading the whole pack.
- Skipping the requirements at the start and missing who will read the report.
- Spending most of the time on requirement 1 and rushing requirement 2.
- Leaving too little time for drafting, so the report is thin or unfinished.
- Copying exhibits into the report instead of analysing them.
- Treating the pre-seen part as the answer.
- Ignoring contradictions between exhibits.
Quick revision
- Pack: narrative, numerical and mixed exhibits that form one picture.
- Six steps: requirements, skim, re-read requirements, notes by exhibit, numbers, analysis.
- Five lines of analysis: assimilation, financial statements, financial data, strategy, industry and ethics.
- Time: 60 minutes reading, 60 calculations, 120 drafting.
- Two requirements, equal weight.
Practice questions
These are original questions in the style of the Institute of Chartered Accountants of Nigeria exam. Try each one before you open the answer.
Question 1. The first thing to do with a new case pack is to:
- Start the calculations
- Read the requirements and note your role and the reader of the report
- Write the executive summary
- Copy the financial statements into an appendix
Show the answer
B. The requirements tell you what to look for and who you are writing to.
Question 2. In the suggested plan, how many minutes go on calculations and analysis?
- 30
- 60
- 90
- 120
Show the answer
B. One hour, split as 30 minutes for each requirement.
Question 3. Which statement about the pre-seen part is correct?
- You bring your notes on it into the hall
- It answers all the requirements
- You must not bring it into the hall, and you still analyse on the day
- It replaces the unseen exhibits
Show the answer
C. You receive the complete scenario at the start, including the unseen exhibits and the requirements.
Question 4. Two exhibits give different sales figures for the same year. You should:
- Use the larger figure
- Ignore both
- Evaluate the difference, decide which is more reliable and say so in the report
- Wait for the examiner to explain
Show the answer
C. Contradictions between exhibits are expected. Sorting them out, with reasons, shows judgement and professional scepticism.
Question 5 (8 marks). Outline a method for reading a case pack and suggest how to divide the four hours.
Model answer
Show the model answer to Question 5
Reading method (5 marks). Read the requirements first and note your role and the reader. (1) Skim the whole pack to see its main content. (1) Re-read the requirements and split them into smaller tasks. (1) Re-read each exhibit and note its key facts on a separate sheet. (1) Study the numerical exhibits carefully, then start the analysis. (1)
Time plan (3 marks). Spend about one hour on reading and planning, one hour on calculations and two hours on drafting. (1.5) Divide the effort equally between the two requirements, because they carry equal weight. (1.5)
The next topic covers how to prepare for the paper and the ten habits that separate passes from fails.
Pathfinder on The four-hour Case Study paper: the case pack, a reading method and a time plan
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.
The cover of each paper suggests one hour for reading, one hour for planning and calculations and two hours for drafting. Compare it with the plan in this topic.
Revise first: The requirement and the time plan
Each paper opens with an email that gives your role and the reader of the report. Practise the six-step method on that first exhibit.
Revise first: A six-step method for reading the pack
Source: ICAN Pathfinder, Case Study. Diets covered: November 2014, May 2015, November 2015 and May 2016.
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