ICAEW Corporate Reporting 2022

Inflo data analytics supplement

Inflo data analytics software was first used in Corporate Reporting (CR) exams in July 2021. In the
2021 exams, there were 10-12 marks available for the direct use and application of Inflo in the
exams. Question 1 in both the July 2021 exam (Q72 in the ICAEW Question Bank) and the November
2021 exam (available on the ICAEW website) reflect this. The ICAEW CR examining team provided
details regarding the 2022 exams in the annual Tutor Conference in January 2022. This supplement
reflects the most up to date information available. Please read it carefully.

Question 1 of the ICAEW CR exam will require candidates to interrogate and analyse data using Inflo
data analytics software. This supplement is intended to provide you with an understanding of how
Inflo will feature in the CR exam, what the examiners expect from you and how you can best
prepare. You CANNOT learn to use the software simply by reading through the material and
guidance notes, you MUST log into the software and work through the resources provided by ICAEW
to fully familiarise yourself with the software.

How will Inflo feature in the CR exam?

Question 1 will contain 15-20 marks which directly relate to the use and application of Inflo. Please
be aware that this is a higher number of marks than in 2021.

It is important to note that neither the syllabus nor the weighting of the syllabus in the exam has
changed as a result of the changes to the CR exam from July 2021. The changes are mainly about
how information is provided to candidates both before and during the exam.

Why is ICAEW using Inflo in CR?

There are several reasons why ICAEW believes Inflo should be used in CR:

(1) to reflect the pace of technological change in 'real life'

(2) to better reflect the skills a professional accountant is expected to use in the workplace

(3) to allow candidates to demonstrate their skills by USING technology rather than explaining HOW
they would use it

(4) to develop candidates' professional skills - primarily assimilating information, applying

judgement, professional scepticism and critical thinking skills

Advance information (AI)

Candidates will receive the AI four weeks prior to the exam. The AI will have two components:

(1) A short (6-8 page) pdf containing background information about the company, company
structure and other information to set the context. It will also set out the role of the candidate in
the scenario and detail any work that has been completed by, for example, an audit junior. The AI
applies to the whole of Question 1 and therefore may be useful when answering all of the
requirements and not just those that directly require the use of Inflo.
(2) Access to an 11 month dataset in Inflo which contains financial information for the first 11
months of the year. The dataset is large and has been derived from a real company. It is important
to take time to familiarise with this information, being guided towards key areas of risk or
uncertainty by the information provided in the pdf document. It is not possible to look at every
account balance or transaction, so ensure you stay focused when analysing the information provided
in Inflo.

It is expected that you use both components of the AI (the pdf and the 11 month dataset) to
familiarise yourself with the company and identify risks / unusual transactions etc before exam day.
BPP will provide a recorded walkthrough of the AI and will create a preparation tasks document that
is based on the technical areas identified in the AI that you may wish to study in more depth in
preparation for the exam. You will work through the preparation tasks during your revision course
but will be expected to do further work in your own time. It is however important NOT to use all of
your study time familiarising with the AI. There are 15-20 marks available for directly using Inflo in
the exam, which means there are 80-85 marks from the more 'traditional' questions. You must
ensure that you balance your study time accordingly. Remember that the best way to revise is by
question practise.

Exam day

Question 1 will contain 15-20 marks which require you to directly use and apply Inflo to answer the
requirements. On exam day, you will be provided with the 12m dataset containing a full year's
financial information for the same company that you should already be familiar with from the AI. It
is possible that the exam day information contains something new or unexpected, but there will not
be anything that will invalidate your preparation. You will use the exam day information along with
what you have prepared based on the AI to address the requirements.

You should also be aware that the insights you gain from the data analysis can be used in other
aspects of Question 1. For example, if your analysis identifies manipulation by one of the directors,
this sets the tone for increased risk of management override of controls which may be relevant
when identifying audit risks and determining audit procedures.

You must keep the number of marks and therefore time available in mind. 15 marks equates to 31
minutes to analyse and interpret the dataset AND write your response to the requirement. There is
a vast amount of information available in the dataset and you need to be disciplined enough to stick
to the maximum time. You will have already determined the key areas of risk or importance based
on the AI and should use this to focus on the key areas within the dataset. Don't spend too long on
the data analytics requirement at the expense of other requirements.

There are few important points to note:

(1) You will not answer the requirement directly within Inflo. You will use the information within
Inflo to identify issues which you will then explain/discuss etc in your exam answer.
(2) You are unlikely to find the answer to requirements in Inflo - Inflo is an information source and
the data within Inflo will allow you to exercise professional scepticism and judgement to allow you
to raise important issues or ask better questions of management.
(3) You CANNOT copy and paste any data from Inflo into your exam answer. You must instead
communicate your findings clearly to the marker.

How can you prepare?

Regardless of whether you are attending courses in centre or are studying via the online classroom,
there is very little reference to Inflo during the taught phase of the course. Don't panic. This is
intentional. The taught phase of the course is focused on ensuring you have the correct technical
knowledge to answer questions relating to the CR syllabus. The use of Inflo in the exam does not
change this. You will begin to do more work around Inflo in the gap between the end of the taught
phase and the start of revision and then continue this into the revision phase. The following
resources are available to help:

(1) ICAEW resources

Link to ICAEW resources - https://www.icaew.com/for-current-aca-students/changes-to-our-

qualifications/exams/corporate-reporting-das-resources

Guidance notes - detailed step-by-step guidance to help a newcomer navigate the key areas of the
software and User guide - a walk though guide that covers the key features of the software. The
practice AI is included within this guide. The user guide is effectively a shortened version of the
guidance notes. A candidate with previous experience of Inflo may be able to go straight to the user
guide.

Practice data sets - there is an 11 month practice data set to replicate the data that will be released
along with the AI and a 12 month data set to replicate the data that will be made available on the
date of the exam. These datasets will be used in ICAEW Mock Exam 1 and Mock Exam 2 which you
will attempt during the revision phase of the course.

AI and AL walkthrough - an example of the AI will be included alongside the practice data set.
ICAEW have created a document to walk you through the AI. The walkthrough document is useful in
explaining how the examiners will signpost areas in the AI that might feature in the final exam.

Six practice questions -

• two exam standard questions. Practice questions 5 and 6 have AI and are therefore good
preparation for the final exam. You will work through these these after the end of the
taught phase of the course. ICAEW have produced a debrief recording of question 5.
• two practice questions that sit slightly below exam standard but are a useful preparation
tool
• two questions that come from Professional level Audit and Assurance which cover the core
techniques and will help to familiarise you with the software

Mock exams - Mock Exam 1 and 2 (achievement ladder steps 7 and 8) will both be based on the
practice data set. A different AI will be provided for each.

(2) BPP resources

BPP will provide additional resources in the form of:

• A recorded walkthrough of the ICAEW practice questions

• A recorded walkthrough of AI for ICAEW Mock Exam 1 and Mock Exam 2 and a preparation
tasks document which will suggest how you should prepare for each mock. This ensures the
preparation for your mock exams is consistent with your preparation for the final exam.
• A debrief of Mock Exam 1 and 2 which will include content relating to data analytics. The
debrief will be available on the Hub.
• A recorded walkthrough of the AI for the real exam and a preparation tasks document which
suggests how you should prepare for the real exam.
• For those attending taught courses, there will be sessions during the revision phase which
are dedicated to preparation for the mocks and the real exam.