Level 2 is where your ICAG qualification becomes real. The Knowledge Level gave you the foundations — Financial Accounting, Business Law, Management Accounting basics. The Application Level takes all of that and puts it to work. You will prepare financial statements under IFRS, plan and execute audits, manage working capital, compute tax liabilities, and analyse public sector finances. The six papers at this level are the core technical engine of the ICAG qualification, and every one of them requires you to apply your knowledge in realistic, complex scenarios — not just recall it.

MSL Business School delivers all six Level 2 papers online — live, structured, and exam-focused. With 40+ national ICAG awards and Ghana's most consistent record of producing top-performing graduates, MSL is the tuition provider that serious ICAG candidates choose.

✓ 6 papers at the Application Level

✓ Assessment: Written examinations (scenario-based questions)

✓ Pass mark: 50% in each paper

✓ Progression: Must pass or credit at least 5 out of the 6 papers before moving to Level 3 (Professional Level)

✓ Entry requirement: At least 3 of the 4 Level 1 papers must be passed or credited before starting Level 2

✓ Exam sittings: March, July and November each year

✓ Delivery: 100% online — live sessions via Google Meet, recordings available

✓ MSL track record: 40+ National Awards — Ghana's most consistent award-winning ICAG tuition provider

Level 2 consists of six papers. Unlike Level 1's MCQ format, these are written examinations with scenario-based questions that require you to apply your technical knowledge to realistic business situations. The examiner is looking for analysis, calculation accuracy, and professional judgement — not just knowledge recall.

The papers for Level 2 are as follows:

1. Financial Reporting (Paper 2.1)

2. Management Accounting (Paper 2.2)

3. Audit and Assurance (Paper 2.3)

4. Financial Management (Paper 2.4)

5. Public Sector Accounting and Finance (Paper 2.5)

6. Principles of Taxation (Paper 2.6)

Builds on: Paper 1.1 Financial Accounting

This is one of the most technically demanding papers at Level 2 and the direct progression from Financial Accounting. You will prepare financial statements for single entities and groups under IFRS, apply a wide range of accounting standards to complex transactions, account for business combinations and consolidated statements, and analyse financial statements for stakeholders. The IASB Conceptual Framework, sustainability reporting, and current developments in corporate reporting are all examinable.

Exam format: Written examination. Five syllabus areas.

Key topics covered:

1. Regulatory, legal and ethical frameworks — IASB, IFRS Interpretations Committee, IESBA Code, Ghana Corporate Governance Code, sustainability and climate-related disclosures (15%)

2. Application of accounting standards — Inventories, PPE, Intangibles, Impairment, Leases, Revenue (IFRS 15), Financial Instruments, Provisions, Investment Property, Tax, Agriculture, EPS, Related Parties, Cash Flows, Foreign Exchange, Borrowing Costs, Government Grants (25%)

3. Single entity financial statements — Statement of P&L and OCI, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, disclosure notes (20%)

4. Business combinations and consolidated financial statements — subsidiaries, associates, joint ventures, goodwill, non-controlling interests, intra-group adjustments, equity accounting (20%)

5. Analysis and interpretation of financial statements — ratio analysis, limitations of financial reporting, value added statements, stakeholder reporting (20%)

Builds on: Paper 1.4 Introduction to Cost and Management Accounting

Management Accounting at Level 2 goes well beyond the costing and budgeting basics of Level 1. You will apply contemporary costing models including Activity Based Costing and throughput accounting, use variance analysis to support management decisions, evaluate performance management systems for both commercial and public sector organisations, and apply short-term decision-making techniques. Transfer pricing, the Balanced Scorecard, and divisional performance appraisal are all examinable.

Exam format: Written examination. Six syllabus areas.

Key topics covered:

1. Contemporary approaches to management accounting — ABC, throughput accounting, TQM, benchmarking, value chain analysis, JIT, environmental cost management, sustainable cost management, technology in management accounting (15%)

2. Budgets and budgetary control — budget profiling, behavioural aspects, comprehensive functional and cash budgets, public sector budgets (15%)

3. Variance analysis — fixed overhead variances, sales margin variances, mix and yield variances, operating statements, productivity and capacity ratios (15%)

4. Short-term decision making — CVP analysis, contribution, margin of safety, limiting factor analysis, pricing decisions, make-or-buy, special orders, outsourcing (20%)

5. Performance management systems — KPIs, Balanced Scorecard, divisional performance (ROI, Residual Income), transfer pricing, behavioural considerations (20%)

6. Management accounting in the public sector — cost-benefit analysis, cost-effectiveness analysis, externalities, public sector KPIs, project management (15%)

Builds on: New topic at Level 2 (no Level 1 prerequisite)

Audit and Assurance is a new subject at Level 2 — there is no direct Level 1 prerequisite. You will learn the complete audit process from engagement acceptance through to reporting, applying International Standards on Auditing (ISAs). The paper covers both private sector and public sector auditing in Ghana, including the role of the Auditor-General and compliance audits. Ethics and professional scepticism are examined throughout. This paper is also a direct prerequisite for Advanced Audit and Assurance at Level 3.

Exam format: Written examination. Nine syllabus areas.

Key topics covered:

1. Nature of audit and assurance — definitions, objectives, corporate governance, compliance and performance audits, the expectation gap (10%)

2. Regulatory, professional and ethical issues — Companies Act 2019, ISAs, ethical principles, threats and safeguards, professional scepticism (15%)

3. Accepting and managing engagements — legal and ethical considerations, risk assessment, terms of engagement (10%)

4. Planning audit engagements — understanding the business, audit risk (inherent, control, detection), materiality, analytical procedures, fraud and error (15%)

5. Audit evidence — assertions, methods of gathering evidence, tests of control, substantive procedures, sampling, data analytics and AI in audit (15%)

6. Audit review — subsequent events, going concern, written representations, completion analytical procedures (10%)

7. Concluding and reporting — audit opinion, modifications to opinion, communicating with those charged with governance, management letters (10%)

8. Internal audit — scope, corporate governance role, differences from external audit, risk-based internal audit (5%)

9. Auditing in the public sector — Ghana public sector audit structure, Auditor-General, compliance audit, PEFA framework (10%)

Builds on: Paper 1.4 Introduction to Cost and Management Accounting

Financial Management develops your ability to make high-stakes financial decisions for organisations. You will evaluate investment projects using NPV, IRR, and payback, advise on capital structure and the cost of capital, manage foreign exchange and interest rate risk using hedging instruments, optimise working capital, and value businesses for mergers and acquisitions. The paper also covers treasury management, Islamic financing principles, and the impact of technology on financial decision-making.

Exam format: Written examination. Eight syllabus areas.

Key topics covered:

1. Financial management environment — role of financial management, agency problem, corporate governance, regulatory environment (Bank of Ghana, SEC, NPRA, NIC), ethical implications (5%)

2. Financing decisions — sources of finance, cost of equity and debt, WACC, capital structure (MM theory vs traditional view), gearing, CAPM, dividend policy, Islamic financing, public sector financing and PPPs (15%)

3. Investment appraisal — NPV, IRR, payback, discounted payback, ARR, inflation and taxation adjustments, capital rationing, lease vs buy, asset replacement, risk analysis (expected values, sensitivity), time value of money (20%)

4. Treasury and financial risk management — treasury function, categories of financial risk, hedging techniques (forward contracts, money market hedge, futures, options, swaps), international payment methods (15%)

5. Working capital management — cash conversion cycle, inventory management (EOQ, JIT), receivables and credit policy, payables management, cash management models (Baumol, Miller-Orr) (15%)

6. Business valuation, mergers and acquisitions — asset-based, earnings-based and market-based valuation models, types of mergers, defensive techniques, financing M&A, computing costs and gains (15%)

7. Public sector financial management — PEFA framework, public procurement rules and procedures, Public Procurement Authority (10%)

8. Developing technologies in finance — AI and machine learning in financial decision-making, digital currencies, unfair digital practices, social and ethical implications (5%)

Builds on: New topic at Level 2 — advisable to attempt Paper 2.1 first

This paper equips you with the technical knowledge to work in Ghana's public sector. You will apply International Public Sector Accounting Standards (IPSAS) to financial transactions, prepare financial statements for central government entities, local government bodies (MMDAs), and non-commercial SOEs, and evaluate public sector financial performance. The paper also covers Ghana's Public Financial Management cycle, the GIFMIS platform, governance structures, and the ethical framework governing public sector accounting.

Exam format: Written examination. Six syllabus areas.

Key topics covered:

1. Overview of Ghana's PFM cycle — planning, budgeting, budget execution, accounting and reporting, audit and parliamentary oversight, PEFA assessment (20%)

2. Regulatory and conceptual framework — IPSASB, IPSAS conceptual framework, Public Financial Management Act 2016, Audit Service Act, Public Procurement Act, Internal Audit Agency Act, Local Governance Act, ethical bodies (EOCO, OSP, FAC, FIC) (10%)

3. Application of IPSAS to transactions — Inventories, PPE, Intangibles, Leases, Provisions, Financial Instruments, Revenue (exchange and non-exchange), Employee Benefits, Social Benefits, Service Concessions, Impairment, Agriculture, Cash Flow Statements (20%)

4. Preparation of public sector financial statements — central government (MDAs), local government (MMDAs), non-commercial SOEs, consolidated public sector financial statements, budget disclosures (IPSAS 24) (20%)

5. Evaluation of public sector financial position and performance — ratio analysis for public sector, efficiency, liquidity, solvency, common size statements, budget analysis (20%)

6. Governance in the public sector — regulatory roles (Ministry of Finance, CAGD, Internal Audit Agency, SIGA, Bank of Ghana), seven principles of public life, social responsibility and sustainability (10%)

Builds on: New topic at Level 2 (no Level 1 prerequisite)

Principles of Taxation introduces Ghana's complete tax system and the Ghana Revenue Authority's administration framework. You will compute income tax liabilities for individuals and partners, calculate corporate tax, apply capital gains tax, VAT, customs duties, and withholding tax rules. The paper also covers the impact of technology on tax administration and ethics in tax practice. This paper is the direct prerequisite for Advanced Taxation at Level 3.

Exam format: Written examination. Nine syllabus areas.

Key topics covered:

1. Ghana tax system and fiscal policy — purpose and classification of taxes, GRA governance, progressive/proportional/regressive structures, monetary and fiscal policy, national debt (10%)

2. Tax administration — assessments, tax returns, time limits, TIN, tax clearance certificates, compliance checks, dispute resolution, penalties and offences (10%)

3. Income tax liabilities — taxation of individuals and partners in partnerships, employment income, business income, investment income, deductions and reliefs (15%)

4. Corporate tax liabilities — taxation of companies and trusts, corporate deductions, capital allowances, losses, thin capitalisation (15%)

5. Taxation of capital gains — gains arising from realisation of assets and liabilities by companies and individuals (10%)

6. Value added tax, customs and excise — VAT on supplies by taxable persons, customs duties, excise duties (15%)

7. Withholding tax administration — withholding obligations, rates, remittance procedures (10%)

8. Information technology in taxation — how technology has influenced tax administration in Ghana (10%)

9. Ethics in tax practice — ethical principles for tax practitioners, tax avoidance vs tax evasion, money laundering, conflicts of interest (5%)

Level 2 examinations are written, scenario-based papers. Unlike Level 1's MCQ format, you will be presented with a realistic business scenario and required to prepare financial statements, calculate tax liabilities, plan an audit, evaluate investment decisions, or analyse performance — and then explain and justify your work.

What this means for how you need to prepare:

1. You must be able to apply knowledge, not just recall it — the examiner will give you data and expect you to process it correctly

2. Presentation matters — answers must be structured clearly, with workings shown

3. Ethics and professional scepticism are examined in every paper — not as a separate question but woven into scenarios

4. Pass mark is 50% per paper — at least 5 out of the 6 papers must be passed or credited before you can sit Level 3

5. Exam sittings are March, July and November each year

Level 1 tested whether you know the concepts. Level 2 tests whether you can use them.

In Financial Reporting, you are not just identifying what depreciation is — you are preparing a full set of IFRS-compliant financial statements including consolidation adjustments.

In Audit, you are not just defining materiality — you are planning an engagement, identifying risks, and drafting an audit report.

In Financial Management, you are not just explaining NPV — you are evaluating a capital project under inflation, taxation, and capital rationing constraints.

MSL's Level 2 teaching is built around this application focus. Every session involves working through exam-standard questions, not just covering theory.

MSL Business School delivers all six Level 2 papers online. Our approach at Level 2 is deliberately more intensive than Level 1 — the papers are harder, the scenarios are more complex, and the margin between passing and failing is thinner.

Live Online Classes — Google Meet

Every paper is taught live by ICAG-qualified lecturers with deep subject expertise. At Level 2, we focus heavily on exam-standard question practice — not just covering the syllabus but demonstrating how to tackle the specific types of scenarios ICAG uses in each paper. Sessions are recorded and available through the MSL app.

All Level 2 students have full access to the MSL app, which includes:

1. AI-powered study tools — ask any question about any Level 2 topic and get a detailed explanation instantly

2. Paper-specific question banks — practice questions organised by paper and syllabus area

3. Progress tracking — monitor your performance across all six papers and identify weak areas

4. Class recordings — every live session is archived and searchable

5. Exam countdown and study plan notifications

Each Level 2 paper has its own exam technique requirements. MSL teaches these explicitly:

1. Financial Reporting — how to structure consolidation workings, how to present IFRS disclosure notes, how to approach ratio analysis questions etc.

2. Management Accounting — how to set up variance analysis operating statements, how to structure limiting factor decisions, how to evaluate performance management scenarios etc.

3. Audit and Assurance — how to identify and explain audit risks from a scenario, how to draft appropriate audit procedures, how to structure an audit report etc.

4. Financial Management — how to set up NPV calculations with tax and inflation, how to structure hedging advice, how to present M&A analysis etc.

5. Public Sector Accounting — how to apply IPSAS in practice, how to prepare public sector financial statements, how to evaluate PFM performance etc.

6. Principles of Taxation — how to compute individual and corporate tax step by step, how to approach VAT and withholding tax questions etc.

You are ready for Level 2 if:

1. You have passed or been credited for at least 3 of the 4 Level 1 papers

2. You hold qualifications that exempt you from all Level 1 papers (HND, accounting degree, ATSWA, Diploma in Accounting, Level 300 university student etc)

3. You hold a Master's Degree in Accounting with an accounting first degree — you may be exempt from most or all Level 2 papers (except Public Sector Accounting and Finance)

Some qualifications grant exemptions from specific Level 2 papers:

• HND (Accountancy Option) — exempt from Paper 2.3 Audit and Assurance

• ATSWA — exempt from Papers 2.3 Audit and Assurance and 2.6 Principles of Taxation

• Accounting degree (Level 300, BCom, BSc Admin Accounting) — exempt from Papers 2.3 and 2.6

• Master's Degree (Accounting option) + accounting first degree — exempt from all Level 2 papers except Paper 2.5 Public Sector Accounting and Finance

Not sure which papers you need to sit? Contact MSL — we will review your qualifications and map out your exact path through Level 2.

✓  Application-focused teaching — every session includes exam-standard question practice

✓  Paper-specific exam technique — you know exactly how to approach each paper

✓  ICAG-qualified lecturers with subject-matter depth across all six papers

✓  AI study tools for on-demand support between sessions

✓  Full mock exams with individual feedback before every sitting

✓  40+ National ICAG Awards — Ghana's most consistent award-winning tuition provider

MSL Business School has produced more ICAG national award winners than any other tuition provider in Ghana. In 2024 alone, our students won all three Overall Best Graduating Student awards across ICAG's exam sittings — a first for any provider. Our Level 2 pass rates consistently outperform the national ICAG average across all six papers.

The difference is in how we teach. MSL lecturers are ICAG-qualified professionals (who are prizewinners themselves) who have sat these exams themselves and understand exactly what the examiner is looking for. We do not cover the syllabus and leave you to figure out the rest — we teach you how to pass and outperform every other candidate.

The shift from MCQs at Level 1 to written, scenario-based exams at Level 2 requires a different approach. Here is what separates students who pass from those who do not:

1. Read the Requirement First

Every Level 2 exam question has a specific requirement — 'prepare the consolidated statement of financial position', 'calculate the tax liability', 'identify and explain five audit risks'. Read this before you read the scenario. It tells you exactly what to look for in the data provided.

2. Show All Workings

ICAG markers award marks for workings as well as for correct final answers. A wrong final answer with correct method will still earn you marks. A correct final answer with no workings shown earns you nothing if the marker cannot verify your method. Always show your working in a structured, labelled format.

3. Allocate Time by Marks

In a written exam, time allocation is critical. Work out your time per mark at the start of the exam and stick to it. Students who spend too long on one question and run out of time on later questions fail papers they should have passed.

4. Attempt Every Question

Even if you are unsure, always attempt every part of every question. A partial answer earns partial marks. A blank earns nothing. Even defining a term correctly, or identifying the correct accounting standard without completing the calculation, can be enough to make the difference between a pass and a fail.

5. Apply the Scenario — Do Not Just Describe Theory

The most common reason Level 2 students fail is writing about concepts in general terms rather than applying them to the specific scenario in the question. If a question asks you to 'identify audit risks for XYZ Company', you must reference the specific facts of XYZ Company — not write a general description of what audit risk is.

6. Ethics Is Not a Separate Topic

At Level 2, ethics appears inside scenario questions — a director asking you to manipulate reported profits, a tax client asking you to conceal income, an audit engagement where your independence is compromised. MSL teaches you to recognise these situations and respond with the correct professional and ethical analysis.

MSL Business School is enrolling now for the next ICAG Level 2 sitting.

📞  Call or WhatsApp us: 053 050 4026

🌐  Apply online: mslbusinessschool.com/icag

Our team will confirm which papers you need to sit, advise on any exemptions, and get you enrolled in the right programme for your next sitting.

1. Do I have to sit all six papers at once?

No. You can sit papers individually and pass them one at a time. There is no requirement to sit all six in a single sitting. Most students sit two or three papers per sitting, completing Level 2 over two to three sittings. MSL's study plans are tailored to however many papers you are sitting.

2. Is there a recommended order for Level 2 papers?

ICAG recommends attempting Paper 2.1 Financial Reporting before Paper 2.5 Public Sector Accounting and Finance, as 2.5 builds on financial reporting knowledge. Beyond that, there is no mandatory sequence — but MSL will advise you on the most effective order based on your background and the number of papers you are sitting per sitting.

3. How much harder is Level 2 than Level 1?

Significantly harder. Level 1 tested knowledge recall through MCQs. Level 2 tests your ability to apply that knowledge in complex, realistic scenarios under time pressure. Students who passed Level 1 comfortably sometimes struggle at Level 2 if they do not adapt their study approach. MSL's Level 2 programme is designed specifically for this step change.

4. Can I start Level 3 before finishing all Level 2 papers?

At least five out of the six Level 2 papers must be passed or credited before you can sit any Level 3 examination.

5. Paper 2.3 and 2.6 — do I need these if I have an accounting degree?

If you hold a Bachelor's Degree in Accounting from an ICAG-accredited institution, or if you are a Level 300 student in an accounting programme at an MOU institution, you are normally exempt from Papers 2.3 and 2.6. Contact MSL to confirm your exemption status before enrolling.

Ghana's #1 ICAG Tuition Provider | ICAG Approved Partner in Learning | 100% Online

Also studying Level 1 or Level 3? Visit our dedicated pages for Level 1 Knowledge Level and Level 3 Professional Level tuition.