case study past papers icaew

Advanced Level Case Study advance information

The Advanced Level Case Study exam includes advance information released prior to the exam sitting. This allows you time to become familiar with the information and to undertake any other appropriate research and analysis.

Select the relevant product below, depending on the exam sitting, and proceed to check out to get the product in your ICAEW Bookshelf. You will be able to access this within your exam and see any notes and highlights you’ve made, as well as using the search function.

This document is also available as a standard PDF that you can print and use in your exam sitting.

To access the pdf and for more information on the Case Study exam, please visit https://www.icaew.com/for-current-aca-students/exam-resources/advanced-level/case-study .

Available editions:

Jag's Journey

Sharing my life experiences including the Associate Chartered Accountant (ACA) qualification

ICAEW ACA Case Study – How Much Preparation Is Enough?

The ACA Case Study was an exam I had not heard much about in detail before my time came to prepare for the exam. I was always one to book annual leave to ensure I had enough time to revise for the exams, especially as I would sit three at a time . When asking my work friends how much time I would need to book off for the ACA Case Study exam they would state only a day or two . As a lot of the exam is skills based and dependant on the real exam itself, it is difficult to know whether you have done enough preparation. I therefore thought I would write this blog to hopefully help.

Note : you may also want to refer to ICAEW Case Study Made Easy , ACA Case Study Marking Key as well as ICAEW Software Testing for more help on the ACA Case Study exam.

Check out my  YouTube video  if you would prefer watching to reading!

Table of Contents

Advanced information (ai), past aca case study mock exams, planning sheets, how much preparation is actually needed, how similar are these mocks to the real exam.

The AI is provided six weeks before the ACA Case Study exam. When the AI was released, I of course took a look to see what industry the business was in. For me, it was Beal the magazine company. As expected, I then read the whole AI when I had more time and went through, very slowly, with the highlighter.

Here is a checklist I have pulled together for what information you need to ensure to pull out of the AI:

• Details of who the report will be from so you can form your disclaimer – join my journey for a draft disclaimer included on the overall timing sheet with a draft structure for the report too
• Benchmarks/targets/key performance indicators (KPIs) for Requirement 1 – this will give you quick and easy marks in the real exam if you state whether these have been met or not
• The relevant PY figures from the AI for Requirement 1 – join my journey to receive how I laid this out and set it up for my Case Study as well as a blank template for your own that you can populate and copy in your exam
• For Requirement 2 and 3 you will need to pull out assumptions and these will come from the AI. The AI should also help you with the calculations for these. For my case study, I was able to pull out at least a page of assumptions from the AI!
• Business issues and wider context that you can put into any of the exam requirements such as whether the industry is competitive
• The ethics marks you should be able to easily identify these from the articles at the end of the AI

Something to consider is whether you need to practice past ACA Case Study mock exams. Now, I studied with Kaplan who really did not focus on the real potential exam much at all to begin with. Even when the AI was out, we would still be going through past paper exams. This was very frustrating at the time but in hindsight, it was definitely beneficial .

We actually ended up going through four ACA Case Study mock exams both in class and as homework and then ran through the real AI and two mocks for this too. Given each mock exam is four hours long, this was definitely not fun. However, timing is KEY with this exam and it is very important to nail timing . If you mess up your timings, leading to an incomplete report as a result, this could result in failure . If you need help with timings, join my journey to receive my timings sheet.

I would therefore strongly recommend practicing at least a couple of ACA Case Study mock exams. Not only will it help ensure you are able to stay on top of your timings but another plus is that it does really help you to understand the mark scheme . The more you practice, the more you start to figure out where the marks/”diamonds” come from and how the mark scheme actually works. For example, knowing which figures are in bold and are needed or how conclusions and the Executive Summary needs to be written.

If you have joined my journey, you should also have been sent some blank planning sheets . These were very helpful when I was studying for the ACA Case Study so I thought I would share these. I only really went into detail on this planning sheet for Requirement 1. This requirement is quite predictable based on the AI in the sense that you should be able to grasp whether the areas of interest are revenue, gross profit and operating profit for example.

What is nice is that the AI purposely gives you three years of management accounts. The AI actually gives example analysis of the year-on-year movements too where they use a range of different numbers and movements. This should help you to prepare for Requirement 1 so you can get an idea of what kind of analysis comments , such as revenue mix, may score a “diamond”. However, a lot of this information and the marks are in the real exam so make sure to pull all of this information into your answers.

I thought it would be helpful if I showed you my Requirement 1 planning sheet for Beal so you can get the gist of how I did this:

Essentially for the Requirement 1 planning sheet I would draft it out similarly to how I have done. Include PY comparison figures so you have these to hand such as PY revenue growth or revenue mix. Also ensure to include business issues and wider context points and recommendations . If your AI mentions any benchmarks/targets/KPIs I would note to comment on whether they were met. Additionally, if there are any bank loan covenants to comment on a breach based on overdraft, note this down. A draft conclusion can also be made based on past mark schemes.

In college we did go through and do a few more planning sheets to Requirement 2 and 3 but I did not really use these given the reduction in predictability. It looks like I have more sheets stapled to the Requirement 1 sheet photographed. However, there are all actually blank (sorry to disappoint) . I pulled this together myself but it may be worth going through this with a friend or study buddy . This may speed up time and it does help with this exam if you all write the same!

It does actually sound like I did a LOT of preparation for the ACA Case Study exam. Looking back, I guess I actually did. Here is a list of points that I think you must do :

• Read the AI and pull out everything I have said above!
• Practice a couple of past mock exams to time so you can nail timings and understand the mark scheme – depending on how well you do, you may need more practice.
• Draft a table with the PY figures for Appendix 1 so you can copy this out into the exam and get started almost straight away
• Practice a mock exam based on your AI . Hopefully you are with a training provider so you have access to this or see the next section for an alternative

Anything else on top of this is just an added bonus , such as the next section of this blog. The Requirement 1 planning sheet is not a must do but it really is worthwhile if you do have the time. You could also draft some standard recommendations for Requirement 2 or 3. I have included a photo of a some I had made below for Beal.

Given the above bullet points, I think you should not need to spend more than a few days on preparing for the ACA Case Study exam outside of college. It is very skills based in terms of how you structure and write your report. Many of the marks are going to be in the real exam so through practice, you should get better at knowing how to pull this out and where to include it in your report.

ACA Simplified/Paradigm Shift Mock Exams

Many of you have probably heard of the ACA Simplified or newly named Paradigm Shift ACA Case Study mock exam pack . I did actually get these for my ACA Case Study exam, where I was given five mock exams. It definitely was not needed to pass but I do think it helped. I did not practice any of these but did read through the mark schemes, understood the calculation workings and took these into the exam with me. Given there are so many mocks, I made a quick reference guide for each mock so I could easily identify the relevant mock.

The reason I wanted the mocks is because I found for my case study Beal that the Requirement 2 and 3 calculations were quite difficult. In all honesty, even though I love Maths and know I am good at it, I did always find these tricky. These mock exams give examples of potential calculations that could come up as well as model appendices to address these. The mocks were therefore helpful in this sense.

The mocks were actually quite similar to the real exam in terms of the scenarios that came up. Such as an increase in the magazine price for one of the requirements. I was able to apply how the calculation was done in the mocks to the real exam. This is likely to be the case given the AI indicates a limited number of potential scenarios and I was given five mocks.

You do need to bear in mind that many of the marks/”diamonds” for the real exam will be based on the information given in the real exam . This of course cannot be predicted and so you cannot just copy the mock answers. The same exam will never come up so application is required and given the time pressure, you do need to know what you are doing. That being said, you can probably copy the business issues and wider context points.

If you have other Advanced Level exams to revise for, try not to get too carried away with the ACA Case Study. SBM also helps with Requirement 1 as there is an overlap with the performance analysis.

I hope this helps and good luck!

• Pingback: ICAEW Case Study Made Easy - How to Pass ACA Case Study - Jag's Journey
• Pingback: New ICAEW Exam Software Testing Experience - Exciting ACA Case Study Opportunity - Jag's Journey
• Pingback: How To Successfully Pass BST - ICAEW ACA Business Strategy and Technology - Jag's Journey
• Pingback: How Difficult/Hard REALLY are the ICAEW ACA Exams? With ACA Exam Difficulty Ranking and Proven ICAEW ACA Pass Rates - Jag's Journey
• Pingback: The Weekend Before Sitting ACA Advanced Level Exams: Last Minute Tips - Jag's Journey
• Pingback: The Best Order to Sit The ACA Exams - Jag's Journey
• Pingback: How to Make ACA Studying and Working Full-Time Easy - Jag's Journey

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Buy Me a Coffee

Automated page speed optimizations for fast site performance

FAR - Full Series

Learn how to ace the aca certificate level exams, financial accounting and reporting (far) , classroom tuition, online tuition.

Having scored 92% in the Case Study exam, and winning the ICAEW prize for the highest score in the world, Kieran now teaches students the analytical skills and exam technique required to emulate this success. Under his guidance, one of our students also went on to win the ICAEW prize for the highest score in the world (score of 90%), whilst several others have won national and regional prizes.

You can watch the course introduction and a  FREE SAMPLE CLASS   below.

OUR PRIZE-WINNING TECHNIQUE

The course begins by teaching you the methodology for tackling the exam, as well as passing on prize-winning tricks and tips. Kieran provides a detailed walk-through of how you should tackle the Case Study exam, from initial AI analysis through to typing your report on exam day. 

The  next class is an exhibit by exhibit walk-through of the July 2024 AI, clearly demonstrating how each piece of information should be used in the exam. This enables you to understand the AI in an exam focused way.

The following classes  debrief our July 2024 mock exams whe re Kieran teaches you exactly how you should have read and interpreted the exam as well as how you should have typed your answer, with reference to his prize-winning model answer. ​  The classes provide detailed advice as to how you should work through each requirement. This enables you to fully understand how to apply the prize-winning technique to your particular Case Study business and the type of points you should include in your report. 

Classes which are based on the July 2024 AI will be added to the course after the AI has been released. T he release dates for the classes can be found on the course structure document below. 

PAYMENT AND ACCESS

You can subscribe to all the classes for £395 and enjoy a viewing period of 12 months.

Please click  HERE  to purchase. Once payment has been made, you can view the full course  HERE . ​

Please note that our July 2024  PDF materials are sold separately from the video course .

​ ​ PASS GUARANTEE 

In the unlikely event that you fail your exam, we will extend your access until you pass your exam. This includes access to any additional content we upload in relation to subsequent Case Study businesses.  There will be no extra cost to you. This reflects our commitment to getting you qualified, as well as the confidence we have in Kieran's track record. 

Having failed Case Study TWICE, I had seen this course pop up on YouTube whilst I tried to figure out where I was going wrong. Took the plunge to change resource providers and honestly, there are NO words to express how grateful I am! Kieran and the team guide you with a CLEAR and CONCISE approach which really helped me focus on what I needed to improve on and what I was previously doing wrong.

From past failures of 48 & 36 previously, to now a gratifying pass of 74, I am honestly on TOP of the world!!! Don't hesitate - book before its too late, honestly you won't regret it!!!

(Case Study resit student who passed first time with us)

• Accountancy and Tax
• Accountancy and Tax - Professional Qualifications
• ICAEW Advanced

Special offer Buy online today and get your learning materials delivered for free!

ICAEW Business and Finance Advanced Level

Enabling you to become a Business and Finance Professional and preparing you for the responsibility and challenges of a senior role. We have been delivering ICAEW qualifications for over 30 years, with all courses delivered using our data driven learning methodology, BPP Momentum, with industry leading pass rates averaging over 90% across all Professional and Advanced papers.

Buy your ICAEW course online

• Online & face-to-face options
• Start times to suit your busy schedule
• Course types to fill specific knowledge gaps

View and buy courses

Got a question? Call us on +44 (0)3300 603 100

Select your ICAEW Business and Finance Advanced Level

The ICAEW Advanced level exams present real-life scenarios, with greater complexity and wider implications than the Professional Level exams.

The Case Study exam will present a complex business issue which will require problem solving, the identification of ethical implications and your ability to provide effective solutions.

There are 3 exams in total and they are fully open book, replicating a real-life scenario where reference resources will be available. Corporate Reporting and Strategic Business Management papers are 3.5 hours while the Case Study lasts four hours. Exams are computer-based and have a 50% pass mark.

Is your employer paying for your courses?

Call us on +44 (0) 3300 603 100 to get started.

What are the entry requirements and exemptions for ICAEW Advanced Level

To be able to enter this level, you need to pass the  ICAEW Certificate in Finance Accounting and Business (CFAB)  or  AAT Level 4 Professional Diploma in Accounting  or equivalent. If you hold a relevant degree or qualification, you may be able to apply for an exemption. To find out more, visit  ACA Credit for prior learning . 

Funding options

Maximise your chances of exam success with BPP Momentum

Designed to train employees in leading accountancy firms, our unique approach focuses entirely on your exam success.

Find out more

Study modes to suit your lifestyle

We have a number of flexible study modes available depending on how you like to learn.

Recommended Online Classroom Live

Interactive live online sessions at scheduled times at daytime, evening and weekend slots, utilising the premium Adobe Connect software.

Online Classroom

Pre-recorded lectures delivered by our expert tutors to study at a time, pace and location that suits you.

Face-to-face

Study in a classroom at one of our conveniently located UK study centres, providing the structure and discipline of physical teaching.

The material provided by BPP is of a high standard and volume. Teachers will guide you through a comprehensive set of notes and provide a highly detailed textbook and summary cards should you require further guidance outside the class. BPP provides an online learning environment containing the course material, practice questions and lectures allowing you to recap and test yourself at your own pace. Without this, I do not think I could pass the course!

Jack Murphy, Accountancy student, BDO

Becoming a member

98% of the best global brands rely on ICAEW Chartered Accountants.

• Visit Becoming a member
• Pay fees and subscriptions

Your membership subscription enables ICAEW to provide support to members.

Fees and subscriptions

Member rewards.

Take advantage of the range of value added or discounted member benefits.

• Member rewards – More from your membership
• Technical and ethics support
• Support throughout your career

Information and resources for every stage of your career.

Member Insights Survey

Let us know about the issues affecting you, your business and your clients.

• Complete the survey

From software start-ups to high-flying airlines and high street banks, 98% of the best global brands rely on ICAEW Chartered Accountants. A career as an ICAEW Chartered Accountant means the opportunity to work in any organisation, in any sector, whatever your ambitions.

Everything you need to know about ICAEW annual membership fees, community and faculty subscriptions, eligibility for reduced rates and details of how you can pay.

Membership administration

Welcome to the ICAEW members area: your portal to members'-only content, offers, discounts, regulations and membership information.

• Continuing Professional Development (CPD)

Continuing Professional Development (CPD) is an integral part of being a successful ICAEW Chartered Accountant.

The ICAEW Chartered Accountant qualification, the ACA, is one of the most advanced learning and professional development programmes available. It is valued around the world in business, practice and the public sector.

ACA for employers

Train the next generation of chartered accountants in your business or organisation. Discover how your organisation can attract, train and retain the best accountancy talent, how to become authorised to offer ACA training and the support and guidance on offer if you are already providing training.

Digital learning materials via BibliU

All ACA, ICAEW CFAB and Level 4 apprenticeship learning materials are now digital only. Read our guide on how to access your learning materials on the ICAEW Bookshelf using the BibliU app or through your browser.

• Find out more

Take a look at ICAEW training films

Focusing on professional scepticism, ethics and everyday business challenges, our training films are used by firms and companies around the world to support their in-house training and business development teams.

Attract and retain the next generation of accounting and finance professionals with our world-leading accountancy qualifications. Become authorised to offer ACA training and help your business stay ahead.

CPD guidance and help

Continuing Professional Development (CPD) is an integral part of being a successful ICAEW Chartered Accountant. Find support on ICAEW's CPD requirements and access resources to help your professional development.

ICAEW flagship events

ICAEW boasts an extensive portfolio of industry-leading conferences. These flagship events offer the opportunity to hear from and interact with all the key players in the industry. Find out what's coming up.

Leadership Development Programmes

ICAEW Academy’s in-depth leadership development programmes take a holistic approach to combine insightful mentoring or coaching, to exclusive events, peer learning groups and workshops. Catering for those significant transitions in your career, these leadership development programmes are instrumental to achieving your ambitions or fulfilling your succession planning goals.

Specialist Finance Qualifications & Programmes

Whatever future path you choose, ICAEW will support the development and acceleration of your career at each stage to enhance your career.

Why a career in chartered accountancy?

If you think chartered accountants spend their lives confined to their desks, then think again. They are sitting on the boards of multinational companies, testifying in court and advising governments, as well as supporting charities and businesses from every industry all over the world.

• Why chartered accountancy?

Search for qualified ACA jobs

Matching highly skilled ICAEW members with attractive organisations seeking talented accountancy and finance professionals.

Volunteering roles

Helping skilled and in-demand chartered accountants give back and strengthen not-for-profit sector with currently over 2,300 organisations posting a variety of volunteering roles with ICAEW.

• Search for volunteer roles
• Get ahead by volunteering

Advertise with ICAEW

From as little as £495, access to a pool of highly qualified and ambitious ACA qualified members with searchable CVs.

Early careers and training

Start your ACA training with ICAEW. Find out why a career in chartered accountancy could be for you and how to become a chartered accountant.

Qualified ACA careers

Find Accountancy and Finance Jobs

Voluntary roles

Find Voluntary roles

While you pursue the most interesting and rewarding opportunities at every stage of your career, we’re here to offer you support whatever stage you are or wherever you are in the world and in whichever sector you have chosen to work.

ACA students

"how to guides" for aca students.

• ACA student guide
• How to book an exam
• How to apply for credit for prior learning (CPL)

Exam resources

Here are some resources you will find useful while you study for the ACA qualification.

• Certificate Level
• Professional Level
• Advanced Level

Digital learning materials

All ACA learning materials are now digital only. Read our guide on how to access your learning materials on the ICAEW Bookshelf via the BibliU app, or through your browser.

• Read the guide

My online training file

Once you are registered as an ACA student, you'll be able to access your training file to log your progress throughout ACA training.

• Access your training file
• Student Insights

Fresh insights, innovative ideas and an inside look at the lives and careers of our ICAEW students and members.

• Read the latest articles

System status checks

Getting started.

Welcome to ICAEW! We have pulled together a selection of resources to help you get started with your ACA training, including our popular 'How To' series, which offers step-by-step guidance on everything from registering as an ACA student and applying for CPL, to using your online training file.

Credit for prior learning (CPL)

Credit for prior learning or CPL is our term for exemptions. High quality learning and assessment in other relevant qualifications is appropriately recognised by the award of CPL.

Apply for exams

What you need to know in order to apply for the ACA exams.

The ACA qualification has 15 modules over three levels. They are designed to complement the practical experience you will be gaining in the workplace. They will also enable you to gain in-depth knowledge across a broad range of topics in accountancy, finance and business. Here are some useful resources while you study.

• Exam results

You will receive your results for all Certificate Level exams, the day after you take the exam and usually five weeks after a Professional and Advanced Level exam session has taken place. Access your latest and archived exam results here.

Training agreement

Putting your theory work into practice is essential to complete your ACA training.

Student support and benefits

We are here to support you throughout your ACA journey. We have a range of resources and services on offer for you to unwrap, from exam resources, to student events and discount cards. Make sure you take advantage of the wealth of exclusive benefits available to you, all year round.

• Applying for membership

The ACA will open doors to limitless opportunities in all areas of accountancy, business and finance anywhere in the world. ICAEW Chartered Accountants work at the highest levels as finance directors, CEOs and partners of some of the world’s largest organisations.

ACA training FAQs

Do you have a question about the ACA training? Then look no further. Here, you can find answers to frequently asked questions relating to the ACA qualification and training. Find out more about each of the integrated components of the ACA, as well as more information on the syllabus, your training agreement, ICAEW’s rules and regulations and much more.

• Anti-money laundering

Guidance and resources to help members comply with their legal and professional responsibilities around AML.

Technical releases

ICAEW Technical Releases are a source of good practice guidance on technical and practice issues relevant to ICAEW Chartered Accountants and other finance professionals.

• ICAEW Technical Releases
• Thought leadership

ICAEW's Thought Leadership reports provide clarity and insight on the current and future challenges to the accountancy profession. Our charitable trusts also provide funding for academic research into accountancy.

• Academic research funding

Technical Advisory Services helpsheets

Practical, technical and ethical guidance highlighting the most important issues for members, whether in practice or in business.

• ICAEW Technical Advisory Services helpsheets

Bloomsbury – free for eligible firms

In partnership with Bloomsbury Professional, ICAEW have provided eligible firms with free access to Bloomsbury’s comprehensive online library of around 80 titles from leading tax and accounting subject matter experts.

• Bloomsbury Accounting and Tax Service

Country resources

Our resources by country provide access to intelligence on over 170 countries and territories including economic forecasts, guides to doing business and information on the tax climate in each jurisdiction.

Industries and sectors

Thought leadership, technical resources and professional guidance to support the professional development of members working in specific industries and sectors.

Audit and Assurance

The audit, assurance and internal audit area has information and guidance on technical and practical matters in relation to these three areas of practice. There are links to events, publications, technical help and audit representations.

The most up-to-date thought leadership, insights, technical resources and professional guidance to support ICAEW members working in and with industry with their professional development.

• Corporate Finance

Companies, advisers and investors making decisions about creating, developing and acquiring businesses – and the wide range of advisory careers that require this specialist professional expertise.

• Corporate governance

Corporate governance is the system by which companies are directed and controlled. Find out more about corporate governance principles, codes and reports, Board subcommittees, roles and responsibilities and shareholder relations. Corporate governance involves balancing the interests of a company’s many stakeholders, such as shareholders, employees, management, customers, suppliers, financiers and the community. Getting governance right is essential to build public trust in companies.

Corporate reporting

View a range of practical resources on UK GAAP, IFRS, UK regulation for company accounts and non-financial reporting. Plus find out more about the ICAEW Corporate Reporting Faculty.

Expert analysis on the latest national and international economic issues and trends, and interviews with prominent voices across the finance industry, alongside data on the state of the economy.

• Financial Services

View articles and resources on the financial services sector.

• Practice resources

For ICAEW's members in practice, this area brings together the most up-to-date thought leadership, technical resources and professional guidance to help you in your professional life.

Public Sector

Many ICAEW members work in or with the public sector to deliver public priorities and strong public finances. ICAEW acts in the public interest to support strong financial leadership and better financial management across the public sector – featuring transparency, accountability, governance and ethics – to ensure that public money is spent wisely and that public finances are sustainable.

Sustainability and climate change

Sustainability describes a world that does not live by eating into its capital, whether natural, economic or social. Members in practice, in business and private individuals all have a role to play if sustainability goals are to be met. The work being undertaken by ICAEW in this area is to change behaviour to drive sustainable outcomes.

The Tax area has information and guidance on technical and practical tax matters. There are links to events, the latest tax news and the Tax Faculty’s publications, including helpsheets, webinars and Tax representations.

Keep up-to-date with tech issues and developments, including artificial intelligence (AI), blockchain, big data, and cyber security.

Trust & Ethics

Guidance and resources on key issues, including economic crime, business law, better regulation and ethics. Read through ICAEW’s Code of Ethics and supporting information.

Communities

ICAEW Communities

Information, guidance and networking opportunities on industry sectors, professional specialisms and at various stages throughout your career. Free for ICAEW members and students.

• Discover a new community

ICAEW Faculties

The accountancy profession is facing change and uncertainty. The ICAEW Faculties can help by providing you with timely and relevant support.

• Choose to join any of the faculties

UK groups and societies

We have teams on the ground in: East of England, the Midlands, London and South East, Northern, South West, Yorkshire and Humberside, Wales and Scotland.

• Access your UK region
• Worldwide support and services

Support and services we offer our members in Africa, America, Canada, the Caribbean, Europe, Greater China, the Middle East, Oceania and South East Asia.

• Discover our services

ICAEW Faculties are 'centres of technical excellence', strongly committed to enhancing your professional development and helping you to meet your CPD requirements every year. They offer exclusive content, events and webinars, customised for your sector - which you should be able to easily record, when the time comes for the completion of your CPD declaration. Our offering isn't exclusive to Institute members. As a faculty member, the same resources are available to you to ensure you stay ahead of the competition.

Communities by industry / sector

Communities by life stage and workplace, communities by professional specialism, local groups and societies.

We aim to support you wherever in the world you work. Our regional offices and network of volunteers run events and provide access to local accounting updates in major finance centres around the globe.

• Ukraine crisis: central resource hub

Learn about the actions that ICAEW members are taking to ensure that their clients comply with sanctions imposed by different countries and jurisdictions, and read about the support available from ICAEW.

Insights pulls together the best opinion, analysis, interviews, videos and podcasts on the key issues affecting accountancy and business.

• See the latest insights
• Making COP count

This series looks at the role the accountancy profession can play in addressing the climate crisis and building a sustainable economy.

• Read more on COP28

Professional development and skills

With new requirements on ICAEW members for continuing professional development, we bring together resources to support you through the changes and look at the skills accountants need for the future.

• Visit the hub

When Chartered Accountants Save The World

Find out how chartered accountants are helping to tackle some of the most urgent social challenges within the UN Sustainable Development Goals, and explore how the profession could do even more.

• Read our major series

Insights specials

A listing of one-off Insights specials that focus on a particular subject, interviewing the key people, identifying developing trends and examining the underlying issues.

Top podcasts

Insights by topic.

ICAEW Regulation

• Regulatory News

View the latest regulatory updates and guidance and subscribe to our monthly newsletter, Regulatory & Conduct News.

• Regulatory Consultations

Strengthening trust in the profession

Our role as a world-leading improvement regulator is to strengthen trust and protect the public. We do this by enabling, evaluating and enforcing the highest standards in the profession. 

Regulatory applications

Find out how you can become authorised by ICAEW as a regulated firm. 

ICAEW codes and regulations

Professional conduct and complaints, statutory regulated services overseen by icaew, regulations for icaew practice members and firms, additional guidance and support, popular search results.

• Training File
• Practice Exam Software
• Ethics Cpd Course
• Routes to the ACA
• ACA students membership application
• Join as a member of another body
• How much are membership fees?
• How to pay your fees
• Receipts and invoices
• What if my circumstances have changed?
• Difficulties in making changes to your membership
• Faculty and community subscription fees
• Updating your details
• Complete annual return
• Promoting myself as an ICAEW member
• Verification of ICAEW membership
• Become a life member
• Become a fellow
• Request a new certificate
• Report the death of a member
• Membership regulations
• New members
• Career progression
• Career Breakers
• Volunteering at schools and universities
• ICAEW Member App
• Working internationally
• Self employment
• Support Members Scheme
• CPD is changing
• CPD learning resources
• Your guide to CPD
• Online CPD record
• How to become a chartered accountant
• Register as a student
• Train as a member of another body
• More about the ACA and chartered accountancy
• How ACA training works
• Become a training employer
• Access the training file
• Why choose the ACA
• Training routes
• Employer support hub
• Get in touch
• Apprenticeships with ICAEW
• A-Z of CPD courses by topic
• ICAEW Business and Finance Professional (BFP)
• ICAEW Annual Conference 2024
• Audit & Assurance Conference 2024
• Restructuring & Insolvency Conference
• Virtual CPD Conference
• Virtual Healthcare Conference 2024
• All our flagship events
• Financial Talent Executive Network (F-TEN®)
• Developing Leadership in Practice (DLiP™)
• Network of Finance Leaders (NFL)
• Women in Leadership (WiL)
• Mentoring and coaching
• Partners in Learning
• Board Director's Programme e-learning
• Corporate Finance Qualification
• Diploma in Charity Accounting
• ICAEW Certificate in Insolvency
• ICAEW Data Analytics Certificate
• Financial Modeling Institute’s Advanced Financial Modeler Accreditation
• ICAEW Sustainability Certificate for Finance Professionals
• ICAEW Finance in a Digital World Programme
• All specialist qualifications
• Team training
• Start your training
• Improve your employability
• Search employers
• Find a role
• Role alerts
• Organisations
• Practice support – 11 ways ICAEW and CABA can help you
• News and advice
• ICAEW Volunteering Hub
• Support in becoming a chartered accountant
• Vacancies at ICAEW
• ICAEW boards and committees
• Exam system status
• ICAEW systems: status update
• Changes to our qualifications
• How-to guides for ACA students
• Apply for credits - Academic qualification
• Apply for credits - Professional qualification
• Credit for prior learning (CPL)/exemptions FAQs
• Applications for Professional and Advanced Level exams
• Applications for Certificate Level exams
• Tuition providers
• Latest exam results
• Archived exam results
• Getting your results
• Marks feedback service
• Exam admin check
• Training agreement: overview
• Professional development
• Ethics and professional scepticism
• Practical work experience
• Access your online training file
• How training works in your country
• Student rewards
• TOTUM PRO Card
• Student events and volunteering
• Xero cloud accounting certifications
• Student support
• Join a community
• Wellbeing support from caba
• Student mentoring programme
• Student conduct and behaviour
• Code of ethics
• Fit and proper
• Level 4 Accounting Technician Apprenticeship
• Level 7 Accountancy Professional Apprenticeship
• AAT-ACA Fast Track FAQs
• ACA rules and regulations FAQs
• ACA syllabus FAQs
• ACA training agreement FAQs
• Audit experience and the Audit Qualification FAQs
• Independent student FAQs
• Practical work experience FAQs
• Professional development FAQs
• Six-monthly reviews FAQs
• Ethics and professional scepticism FAQs
• Greater China
• Latin America
• Middle East
• North America
• Australasia
• Russia and Eurasia
• South East Asia
• Charity Community
• Construction & Real Estate
• Energy & Natural Resources Community
• Farming & Rural Business Community
• Forensic & Expert Witness
• Global Trade Community
• Healthcare Community
• Internal Audit Community
• Manufacturing Community
• Media & Leisure
• Portfolio Careers Community
• Small and Micro Business Community
• Small Practitioners Community
• Travel, Tourism & Hospitality Community
• Valuation Community
• Audit and corporate governance reform
• Audit & Assurance Faculty
• Professional judgement
• Regulation and working in audit
• Internal audit resource centre
• ICAEW acting on audit quality
• Everything business
• Latest Business news from Insights
• Strategy, risk and innovation
• Business performance management
• Financial management
• Finance transformation
• Economy and business environment
• Leadership, personal development and HR
• Webinars and publications
• Business restructuring
• The Business Finance Guide
• Capital markets and investment
• Corporate finance careers
• Corporate Finance Faculty
• Debt advisory and growth finance
• Mergers and acquisitions
• Private equity
• Start-ups, scale-ups and venture capital
• Transaction services
• Board committees and board effectiveness
• Corporate governance codes and reports
• Corporate Governance Community
• Principles of corporate governance
• Roles, duties and responsibilities of Board members
• Stewardship and stakeholder relations
• Corporate Governance thought leadership
• Corporate reporting resources
• Small and micro entity reporting
• UK Regulation for Company Accounts
• Non-financial reporting
• Improving Corporate Reporting
• Economy home
• ICAEW Business Confidence Monitor
• ICAEW Manifesto 2024
• Energy crisis
• Levelling up: rebalancing the UK’s economy
• Resilience and Renewal: Building an economy fit for the future
• Social mobility and inclusion
• Autumn Statement 2023
• Investment management
• Inspiring confidence
• Setting up in practice
• Running your practice
• Supporting your clients
• Practice technology
• TAS helpsheets
• Support for business advisers
• Join ICAEW BAS
• Public Sector hub
• Public Sector Audit and Assurance
• Public Sector Finances
• Public Sector Financial Management
• Public Sector Financial Reporting
• Public Sector Learning & Development
• Public Sector Community
• Latest public sector articles from Insights
• Climate hub
• Sustainable Development Goals
• Accountability
• Modern slavery
• Resources collection
• Sustainability Committee
• Sustainability & Climate Change community
• Sustainability and climate change home
• Tax Faculty
• Budgets and legislation
• Business tax
• Devolved taxes
• Employment taxes
• International taxes
• Making Tax Digital
• Personal tax
• Property tax
• Stamp duty land tax
• Tax administration
• Tax compliance and investigation
• UK tax rates, allowances and reliefs
• Artificial intelligence
• Blockchain and cryptoassets
• Cyber security
• Data Analytics Community
• Digital skills
• Excel community
• Finance in a Digital World
• IT management
• Technology and the profession
• Trust & Ethics home
• Better regulation
• Business Law
• UK company law
• Data protection and privacy
• Economic crime
• Help with ethical problems
• ICAEW Code of Ethics
• ICAEW Trust and Ethics team.....
• Solicitors Community
• Forensic & Expert Witness Community
• Latest articles on business law, trust and ethics
• Audit and Assurance Faculty
• Corporate Reporting Faculty
• Financial Services Faculty
• Academia & Education Community
• Construction & Real Estate Community
• Entertainment, Sport & Media Community
• Retail Community
• Career Breakers Community
• Black Members Community
• Diversity & Inclusion Community
• Women in Finance Community
• Personal Financial Planning Community
• Restructuring & Insolvency Community
• Sustainability and Climate Change Community
• London and East
• South Wales
• Yorkshire and Humberside
• European public policy activities
• ICAEW Middle East
• Latest news
• Access to finance special
• Attractiveness of the profession
• Audit and Fraud
• Audit and technology
• Adopting non-financial reporting standards
• Cost of doing business
• Mental health and wellbeing
• Pensions and Personal Finance
• Public sector financial and non-financial reporting
• More specials ...
• The economics of biodiversity
• How chartered accountants can help to safeguard trust in society
• Video: The financial controller who stole £20,000 from her company
• It’s time for chartered accountants to save the world
• Video: The CFO who tried to trick the market
• Video: Could invoice fraud affect your business?
• Company size thresholds and CGT on residences
• Lessons in leadership from ICAEW's CEO
• So you want to be a leader?
• A busy new tax year, plus progress on the Economic Crime Act
• Does Britain have a farming problem?
• Budget 2024: does it change anything?
• Will accountants save the world? With ICAEW CEO Michael Izza
• Crunch time: VAT (or not) on poppadoms
• Where next for audit and governance reform?
• A taxing year ahead?
• What can we expect from 2024?
• More podcasts...
• Top charts of the week
• EU and international trade
• CEO and President's insights
• Diversity and Inclusion
• Sponsored content
• Insights index
• Charter and Bye-laws
• Archive of complaints, disciplinary and fitness processes, statutory regulations and ICAEW regulations
• Qualifications regulations
• Training and education regulations
• How to make a complaint
• Guidance on your duty to report misconduct
• Public hearings
• What to do if you receive a complaint against you
• Anti-money laundering supervision
• Working in the regulated area of audit
• Local public audit in England
• Probate services
• Designated Professional Body (Investment Business) licence
• Consumer credit
• Quality Assurance monitoring: view from the firms
• The ICAEW Practice Assurance scheme
• Licensed Practice scheme
• Professional Indemnity Insurance (PII)
• Clients' Money Regulations
• Taxation (PCRT) Regulations
• ICAEW training films
• Helpsheets and guidance by topic
• ICAEW's regulatory expertise and history
• Regulatory and Conduct news May 2024

Disciplinary case study: insolvency practitioner fees

Author: Professional Standards Department

Published: 13 May 2024

SHARE THIS ARTICLE

Reasonable remuneration.

Justine Carruthers, Head of Insolvency Investigations, ICAEW Conduct Department summarises the details of the case.

The case was referred for investigation by the Conduct Department following a routine quality assurance review. The issue related to the appropriateness of the level of fees charged by one IP in two similar liquidations.

Due to the nature of the businesses involved, there had been significant enquiries from a government body requesting employee information. The IP had determined that it was appropriate and necessary to deal with each of those enquiries themselves which led to significant time costs, compounded by the fact that the employee information was held by a separate third party,. The IP effectively acted as an information conduit between the third party and the government body meaning, crucially, that dealing with the enquiries personally could have no benefit to creditors.

Following investigation, and in line with the relevant prima facie test at the time, the Conduct Committee found there to be evidence that, amongst other matters, the IP’s remuneration had been unreasonable and/or excessive for the time charged in dealing with those enquiries. The Conduct Committee determined that the matter should be referred to the Tribunals Committee for sanction, with the matter ultimately being concluded by settlement.

Basis of unreasonableness

The primary factor in support of the complaint that the remuneration was unreasonable, was that the IP undertook the majority of responses to the government body themselves, which were charged to the estate at the partner’s usual hourly rate.

We contended that it was neither necessary, nor appropriate, that the IP dealt with those enquiries themselves as it did not need to be done by a senior member of staff. Accordingly, time was charged to the estates that was either not required or excessive, and would not benefit creditors.

The IP had a valid fee resolution (on a time cost basis) for each of the liquidations, and there was no concern in that regard.

Narrative recording

In both cases, the complaint was aggravated by a lack of narrative in the time records. Time was charged almost exclusively in hourly blocks, rather than in 6-minute increments, and the IP used vague and repetitive narratives. It was therefore impossible to determine exactly what work was being undertaken at any given time.

The IP accepted that fees for this area of work had been disproportionately weighted towards partner time and that some of the time costs incurred, and recovered, were unreasonable and excessive.

The IP received a severe reprimand, a financial penalty of £20,000 and was required to pay costs of £25,365. The IP also agreed to repay £100,000 of their remuneration back into the insolvent estates, which necessitated restoring the companies.

Key takeaways

An IP is required to justify the level of time costs incurred, and to evidence that time with an appropriate narrative. It is not sufficient to merely have a valid fee resolution. An IP must maintain sufficient records to demonstrate the actions taken by the IP and to allow an informed third party to reach a view on the appropriateness of those actions.

An IP is obliged to consider the overall reasonableness of their work and the impact of the costs incurred on the insolvent estate. A key part of that is the appropriateness of work undertaken by different grades of staff, and if junior staff members are not available, then senior staff should consider reducing their charge out rates accordingly for those specific tasks.

Fundamentally, while IPs should charge for time that has been properly incurred, charging the highest possible rate (ie, a partner rate) for work that could be done by lower grade staff, and then seeking to recover most of that fee from an insolvent estate, cannot be said to be acting in the best interests of the estate’s creditors.

Even when an IP has ceased to act and the company in question has been dissolved, ICAEW is still able to investigate complaints and, as demonstrated in this case, the IP could be required to repay an element of their fees. In addition, even if fees have been properly approved by creditors and there have been no external complaints, that would not prevent ICAEWvfrom investigating whether fees are reasonable.

What does the Insolvency Act say?

The introduction of the Regulatory Objectives in 2015 in section 391C(3) of the Insolvency Act require recognised professional bodies such as ICAEW to discharge their regulatory functions in a way that is compatible with the regulatory objectives. Two of these have relevance to the level of an IP’s fees; the requirement in section 391C(3)(b) to provide high quality services at a cost to the recipient which is fair and reasonable and that in (c) to promote the maximisation of the value of returns to creditors.

Common quality assurance review findings

Allison Broad, Senior Manager, ICAEW Quality Assurance Department explains what our reviewers look for regarding time cost-based fees and highlights some of the issues that would cause concern during a monitoring visit.

It won’t come as any surprise to hear that ICAEW’s Quality Assurance Department looks at IP fees during monitoring reviews. That doesn’t just mean whether fees have been properly authorised and correctly calculated, but also extends to the amount sought in an estimate and the fees that are drawn.

Quality assurance monitoring process

Where we have concerns about an IP’s fees, we will first raise that in our written queries and ask for comments and additional information. If we still have concerns, the next stage is for us to report the issue to ICAEW’s Insolvency Licensing Committee. The IP has a further opportunity to make additional comments at that stage. If the committee believes that the matter requires further review (as in the case described above) it will refer the matter to ICAEW’s Conduct Department. The Conduct team will have the opportunity to investigate the position in much more detail than we have time to do during a monitoring visit.

Some of the issues that cause us concern are set out below, and we would encourage ICAEW-licensed insolvency practitioners to take note of these and check they aren’t making any of these mistakes.

Activities that aren’t relevant to a case

We question time included in a fee estimate for areas of work that aren’t applicable to the case. For example, including time in a fee estimate for:

• trading, when the business had already ceased trading;
• agreeing creditor claims, when the IP has already said that there’s no prospect of a dividend; or
• debt collection work, where the company doesn’t have any debts.

Similarly, we would question time entries allocated to activities that don’t appear to be relevant to a case, or time entries that relate to staff who don’t appear to have been involved in the case.

As the case above highlights, narrative is important. When looking at time records, our reviewers can find it difficult to understand the work that has been undertaken if there’s limited narrative. As the case above highlights, narrative is important. When looking at time records, our reviewers can find it difficult to understand the work that has been undertaken if there’s limited narrative.

Some firms have very detailed time codes with a vast array of sub-codes beneath them, but even then some narrative is useful to clarify the work undertaken. This is particularly true if large periods of time are allocated to certain tasks and we can’t see evidence of that work. We don’t need to see war and peace – but we do need enough to understand what the time relates to. That detail can be useful for IPs as well, in terms of managing staff, and also if fees are challenged.

Level of staff

Again, as illustrated in the case above, concerns also arise where a senior member of staff (or the IP) is undertaking work seemingly more suited to someone more junior. Where that’s necessary, for example if more junior staff aren’t available, we would expect the IP to discount their charge out rate so that the rate being charged reflects the underlying task. This is also relevant to sole IPs who don’t have junior staff. In this case we expect to see the work more suited to junior staff being charged at a lower rate.

We’d also expect IPs to consider the recoverability of costs incurred where cases are being handed over from one team member to another. Is it right for the creditors to bear the cost of new members of staff reviewing the files to get up to speed with the case? We would say not.

Insolvency practitioners are in a privileged position to draw their fees from funds under their control, and it’s critical that this isn’t abused.

2023 Restructuring and Insolvency Community Compliance update webinar

Insolvency compliance update: estimating fees

Is your time recording system accurate?

Find out more about ICAEW’s disciplinary process

Add Verified CPD Activity

Introducing AddCPD, a new way to record your CPD activities!

Add this page to your cpd activity, step 1 of 3, download recorded, download not recorded.

Please download the related document if you wish to add this activity to your record

Step 2 of 3

Add activity to my record, step 3 of 3, activity added, an error has occurred please try again.

Read out this code to the operator.