Chartered Accountants are increasingly using more advanced approaches to interrogate client data. Embedding these techniques within our exams ensures that we continue to reflect the current and future workplace and will also help to develop your judgement, professional scepticism and critical thinking skills.
The use of data analytics in exams is split into two sections - data analytics software and the use of spreadsheet functionality. To support you with these changes we have developed the resources below.
Spreadsheet functionality
Spreadsheet functions are part of the learning materials and skills required of students in the following exams: Financial Management, Business Strategy and Technology and Strategic Business Management. These include three broad areas of data analysis within the exam software.
-
Data assimilation and visualisation
To structure and assimilate data, a variety of spreadsheet logical functions could be used. These functions can be combined to filter, sort and restructure data provided in a pre-populated spreadsheet. This enables data to be scrutinised to identify trends and patterns that can be presented to management in a variety of formats appropriate to the purpose in context.
-
Statistical analysis
Spreadsheet statistical functions enable students to carry out statistical calculations quickly without extensive mechanical calculations, or the need to memorise statistical formulae. This gives a focus on understanding the data provided and interpreting the statistical results.
-
Financial functions
Financial functions in spreadsheets are useful in determining common measures in finance such as IRR. They save time in performing extended calculations. This will not just enable the calculations to be made in the first instance, but a variety of adjustments to the base data can be made, for example to test sensitivity and gain an understanding of the key variables impacting risk, as would be the case in data analysis in the workplace.
Within the Financial Management, Business Strategy and Technology and Strategic Business Management exams you may be examined in the following ways:
- Data will be provided in the question, and you should populate the spreadsheet based on the data in the question.
- A spreadsheet will be provided in the exam with pre-populated data for you to structure, assimilate, interpret and evaluate.
Below is a list of functions you need to be familiar with based on which exam you are sitting.
|
Functions |
Business Strategy and Technology |
Financial Management |
Strategic Business Management |
|
Data assimilation and visualisation |
|||
|
AVERAGE |
✓ |
✓ |
✓ |
|
COUNTIF |
✓ |
|
✓ |
|
COUNTIFS |
✓ |
|
✓ |
|
IF* |
✓ |
|
✓ |
| IFS | Added in 2023 | Added in 2023 | |
|
RANK |
✓ |
|
✓ |
|
SUM |
✓ |
✓ |
✓ |
|
SUMIF |
✓ |
|
✓ |
| SUMIFS | Added in 2023 | Added in 2023 | |
| TREND | Added in 2023 | Added in 2023 | |
|
Statistical analysis |
|||
|
CORRELATION |
Added in 2023
|
✓ |
✓ |
|
STD DEV |
✓ |
✓ |
✓ |
|
Financial functions |
|||
|
IRR |
|
✓ |
✓ |
|
MIRR |
|
|
✓ |
| XIRR | Added in 2023 | ||
|
NPV |
|
✓ |
✓ |
|
POWER |
|
✓ |
✓ |
|
PV |
|
✓ |
✓ |
|
RATE |
|
✓ |
✓ |
|
|
|
|
|
|
General |
|||
|
Absolute cell references (eg, $A$1 is a fixed reference to cell A1) |
|||
|
Formatting (eg, to 0 decimals, Currency £ and Percentage % ) |
|||
*Nested IF statements could be used in Business Strategy and Technology and Strategic Business Management
Spreadsheet functionality in exams
To support you with these changes we have developed a series of videos on basic spreadsheet functions to aid your understanding for the Financial Management, Business Strategy and Technology and Strategic Business Management exams.
Data analytics software
ICAEW has introduced data analytics software into ACA exams, starting with the Audit and Assurance exam and Corporate Reporting.
You will need to be familiar with how the software works and its various functions. It is therefore important that you work through the relevant explanatory guidance notes, using the practice datasets that we have created. You should then attempt the practice questions.
Further resources
Excel Community and training
Here, you will be provided with the tools you need to develop your Excel skills, along with a host of time-saving tips and tricks to help you use Excel in your studies and at your work. Join the Excel Community for free here, using discount code ITEXSTUDENT.
Access the community