Professional Applications 2
Strategic Financial Management
Manitoba Session
INTRODUCTION
COMMUNICATION SKILLS
PROFESSIONAL SKILLS
STUDY PLAN
GENERAL
SPECIFIC
Lecturer: Manon Anders
633-5500 ext 250 (hit # to skip message)
manders@rickis.com
INTRODUCTION
Professional SKILLS
Communication SKILLS
Effective
Communication
You need to have the professional skills (technical knowledge) so you are
providing the “meat” for the discussion. A wonderful write-up of a nonrelevant issue is of no use to the reader.
On the other hand, you need to be able to show your knowledge in a clear,
coherent manner that the reader can understand and be able to use in
his/her decision-making.
A professional response integrates a discussion of the appropriate technical
knowledge with a clearly communicated writing style.
HOW FAR YOU GO
DEPENDS ON HOW MUCH YOU KNOW
and HOW MUCH YOU SHOW
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COMMUNICATION SKILLS
It is important to apply conceptual knowledge and exercise judgement. You
will have to use your knowledge to solve practical problems. This means you
will have to know what parts of that knowledge are relevant in a given
situation. You also will need to be able to identify the problem from the facts
provided. You will have to consider alternatives, analyze them using your
core knowledge and exercise your judgement in choosing one alternative.
Finally you must support your recommendation with a logical argument
flowing from your analysis.
If you cannot communicate your abilities, the marker cannot assess them.
1. Issue identification – Identify relevant facts and problems. Don’t forget to
look for hints in the question that will lead you to identify minor/major
issues. Use facts from the case, where applicable, to support your issue
discussion and be prepared to explain the implications of the issue.
2. Consideration of alternatives – Identify what options exist for each
problem.
3. Analysis – use your basic knowledge to assess the impact or outcome of
each alternative for any given problem based on the relevant facts
provided and any assumptions you are required to make. Integrate
various subject areas, when applicable.
4. Recommendation – – Based on your analysis, you must make a suitable
recommendation by weighing the relative merits of the alternatives
Finally, you must convey your conclusion to the interested party,
supported by a logical argument based on your analysis. The
recommendation will depend on the usefulness of the possible outcome to
the user.
Many of the questions you will be facing on the PA exam will be presented in
a case format (varying length and complexities). A structured approach to
these cases will help you focus on addressing key issues and providing
appropriate, effective analysis.
Note: The WIR approach is a quick method to work your way through a series of
issues.
Describe the Weakness
Describe the Implications of the weakness
Provide a Recommendation to address the problem/weakness
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SUGGESTED APPROACH TO CASE QUESTIONS
1)
2)
3)
4)
Read the case
Plan the response
Write the response
Review the response
Read the case
Begin with the “required” paragraph so that you have the right frame of
reference as you read the case.
Then carefully read through each paragraph. * Always keep your role, the
“required”, and the user needs in mind.
Note items for future reference by highlighting or making notes in the left
column of the question paper.
When you have identified a key issue, note it in the right hand column.
(*Note: this approach does differ from the “skim first and then read through in more
detail” approach referred to in the course module notes.)
Plan the response
Use a framework to prepare a “skeleton” of your response. The framework
will help you flush out issues. You will find it easier to integrate issues in your
overall discussion. Once the framework is completed, a quick review of the
issues may identify a common theme running through many of these issues.
If so, this will provide a clear direction for your response.
(Refer to the “Framework Approach” file on the PA2 Wiki for more information on
frameworks)
The framework should consist of the following elements:

Environment. This is where you identify your role, the “required”, the
user(s) needs and any environmental factors which relate to the
“required”.

Issues. Identify issues, rank issues in order of importance (where
applicable) and then perform qualitative and quantitative analysis.
 Qualitative discussion Most issues will have more than one
alternative. Ensure you identify advantages and disadvantages for
each alternative generated so that you can better support your final
recommendation.
 Quantitative analysis This could include the use of exhibits (for
questions that have a large amount of analysis required) or could be
limited to a minor amount of analysis embodied directly in the
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narrative. Exhibits should include assumptions (if necessary) and a
conclusion. Note that the exams will have minimal quantitative
analysis but these exhibits are fair game for assignments since you will
have sufficient time to prepare them.

Recommendations. Most issues will require some form of
recommendation, particularly if alternatives are involved. A quick way
to remember this on your framework is to circle the alternative you
recommend.
Write the response
Breadth: Cover a sufficient number of issues.
Depth: Discuss each issue in sufficient depth. Major issues require more
discussion and analysis than minor issues.
User needs must be kept in mind when discussing issues.
* Use headings for issues. This provides more clarity to your report.
Keep It Simple & Short – straight to the point, simple vocabulary and
straight-forward sentences.
Don’t use “big” words and long complicated sentences. This makes it difficult
for the reader. The reader can become tired, lose interest and miss
important items. (In an exam situation, the reader is the marker. You do not
want the marker to miss any of your important points that are required to earn the
competency.)
The average sentence should be about 15 words long. The average
paragraph should be about 4 to 5 sentences long.
Review the response
Save 5 to 10 minutes at the end so you have time to do a final review of
your written responses. This should help you find spelling errors and allows
you to insert a few brief lines of additional discussion of an existing issue or
limited coverage of an issue that you missed in the framework. A
recommendation that you missed can be quickly added.
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PROFESSIONAL SKILLS
Blackboard has course refreshers, module summaries and reference websites
for the prerequisite courses which should be used to help you brush up on
the required areas.
CORE

Accounting Theory & Contemporary Issues [AT1]

Financial Accounting: Consolidations & Advanced Issues [FA4]

Corporate Finance Fundamentals [FN1]

Advanced Management Accounting [MA2]
CORE RELATED

External Auditing [AU1]

Personal and Corporate Taxation [TX1]
The course refreshers provide an overview of important topics and concepts, and
suggest additional study resources.
Also:
 CICA Handbook – Be familiar with both Part I (IFRS) and Part II (ASPE) of the
Accounting Handbook and where each is applicable.
 Ethics Handbook (ERH) and in particular, be familiar with key sections of the
CGA Code of Ethical Principles and Rules of Conduct
You will need to be able to integrate 2 or 3 of these areas in your discussion
of issues so keep this in mind when you are studying various topics.
* Read the blueprint for the PA2 exam to obtain a clear understanding of the
expectations
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STUDY PLAN
GENERAL
Recall of material studied after the first 20 minutes is much lower than
recall of material studied in the first 20 minutes. Consequently, studying
should be broken down into 20 minute periods, with a 5 to 10 minute break
between each study period.
It is recommended that you jot down what you have just learned (point form,
from memory) at the end of the study period before taking your break.
Recitation increases the likelihood of being able to recall what you have
learned.
Be realistic in setting a goal for each study period. Do not try to study too
much. As a rule of thumb, 10 pages of technical material in 20 minutes is a
good target.
Start by assessing how much you already know about a particular topic to
determine how much time you should be allocating to studying the resource
material for this topic.
As you read through the topic:

Make a note of areas you feel you need to re-read in more depth, then go
back and read these areas again.

Make notations as you read to indicate important points, disagreements,
confusion (yours...if you don’t understand the finer technical points).

Write notes in point form from memory after you have finished reading.
Review these notes to see if they properly recap what you have just read.

Take a 5 to 10 minute break.

Start on a new topic!
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STUDY PLAN
SPECIFIC
Review List - Make a list of the technical areas you need to cover.
Depending on your preferred method of study, you may want to either study
by subject area (example: accounting, auditing, tax, etc) or you may want to
select important issues and cover the issue by looking at the related subject
areas (example: operating VS capital leases and the accounting, auditing, tax
issues related to these leases). The advantage of the second approach is
that it helps you work on integration of subject areas.
Flesh out the list with key points. Review this list on a regular basis until you
feel comfortable with your knowledge. Remember, you have already attained
the technical knowledge through the courses you have taken. Now you have
to polish up the weaker points and ensure you can quickly access your
knowledge mentally.
Study Plan – Determine how much time you think you will need to brush up
on your technical knowledge and how much time you want to spend
practicing your writing skills. Take a calendar and map out chunks of
study time up to the week prior to the PA exam. Keep in mind the 20
minute studying “limit”. Ensure you incorporate some exam writing practice,
using old exams. Follow your plan!
“Study Buddy” - To ensure you can clearly communicate the technical
knowledge you are reviewing it will be helpful to write test cases and
questions, then arrange to have another student test mark your responses.
When you are writing, you have a clear idea of what you are trying to say,
but that does not mean you have succeeded in doing so for another reader.
A “study buddy” can read your response and compare it to the suggested
response. Then he/she can explain whether you have communicated your
points effectively. This is a good way to identify technical and
communication weaknesses in your writing.
Study Group – Even better if you can several students together to form a
study group!
Refer to the “PA Study Groups” file on the PA2 Wiki for helpful hints when working in
a study group.
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