Once you've cleared CAP I, the jump to CAP II can feel like a different course entirely — more subjects, more depth, and a group-based passing system that changes how you should plan your study time. This breakdown covers the full subject list, marks weightage, which papers students consistently find hardest, and a practical study sequence to help you prioritize.
Quick note on naming: ICAN's revised curriculum, launched in May 2025, renames "CAP II" to "Application Level." New CAP II registrants from November 2025 onward join under this new syllabus name, while earlier-registered students continue under the CAP II track during the transition period. This guide uses "CAP II" throughout since it remains the more commonly searched term, and the subject structure described reflects the current Application Level syllabus.
Full CAP II subject list under the current ICAN syllabus
CAP II consists of seven subjects examined across six papers (two subjects are combined into a single Paper 4, split into sections 4A and 4B), divided into two groups. Group I covers Financial Accounting and Reporting, Audit and Assurance, and Applied Law. Group II covers Management (Paper 4A), Financial Management (Paper 4B), Business Strategy, and Applied Taxation. Each paper carries 100 marks, for a total of 700 marks across the level.
Marks weightage table per subject and section
Which papers students consistently find hardest, and why
Anecdotally and consistently across coaching institutes in Nepal, Financial Accounting and Reporting and Audit and Assurance tend to be the papers students find most demanding at CAP II — both require moving well beyond CAP I's introductory treatment into applied standards-based problem solving (NFRS application, consolidation, and group accounts on the reporting side; risk-based audit procedures and reporting on the assurance side), and both reward depth of practice with past papers far more than last-minute memorization. Applied Taxation is another common pressure point, largely because Nepal's tax provisions are updated frequently through annual Finance Acts, meaning stale study material is a real risk if students aren't studying from the current year's provisions. By contrast, Applied Law and Business Strategy tend to be more consistently scored well, since their content changes more slowly and rewards structured, conceptual understanding over calculation-heavy practice.
Recommended study sequence — which subjects to tackle first
A sensible sequence starts with Financial Accounting and Reporting and Applied Law early, since Financial Accounting and Reporting is both the heaviest paper and the one that benefits most from sustained practice over time, while Applied Law can be picked up and reinforced in parallel without heavy calculation practice competing for the same study hours. Audit and Assurance works well as a middle-phase subject, since it draws on accounting concepts you'll have just reinforced and benefits from being studied close to when those concepts are fresh. Financial Management and Management pair naturally together given their overlapping quantitative techniques, and Business Strategy and Applied Taxation are well suited to the final stretch — Applied Taxation especially, since studying it as close to the exam date as possible reduces the risk of relying on an outdated Finance Act provision.
ICAN-recommended reference books vs private study materials
ICAN publishes its own official Learning Materials for each paper upon registration, and these should form the backbone of your preparation since they're aligned precisely to the current syllabus and reflect the depth of coverage examiners expect. Alongside these, ICAN issues Revision Test Papers (RTPs) ahead of each exam session — these are especially valuable because they're prepared specifically to test current-year updates (particularly relevant for Applied Taxation) and mirror the style of question ICAN examiners are likely to set. Private coaching institute materials and notes can be a useful supplement for structured explanation and practice volume, but should not replace the official Learning Materials and RTPs as your primary source — students who rely solely on third-party notes sometimes miss syllabus nuances or outdated provisions that official materials would have flagged.
How CAP II builds directly into CAP III
CAP II is not a standalone hurdle — it's the direct foundation for CAP III's advanced papers. Financial Accounting and Reporting at CAP II leads directly into Advanced Financial Reporting at CAP III; Audit and Assurance leads into Advanced Audit and Assurance; Financial Management leads into Advanced Financial Management; and Applied Taxation leads into Advanced Taxation. Business Strategy and Management at CAP II also feed into CAP III's Strategic Management and Decision Making Analysis and Management Information and Control System papers, which draw heavily on the conceptual frameworks introduced earlier. Students who treat CAP II as a box to check rather than a foundation to build on often find the CAP III versions of these subjects unexpectedly difficult, since CAP III assumes CAP II concepts are already second nature.
Sample 6-month study timetable
CAP II has a minimum nine-month registration-to-exam window, but a focused six-month intensive study block — assuming foundational classes are already underway — might look like the following.
FAQs
Can you attempt all papers in one sitting? Yes — you can appear for both groups together at one sitting, and this is the most direct route if you're well prepared across all seven subjects, since passing both groups simultaneously (with 40% minimum per paper and 50% aggregate across all papers) clears the level in one exam session.
Can you attempt just one group at a time? Yes — CAP II allows candidates to appear for Group I only or Group II only, passing each independently with the same 40%-per-paper and 50%-group-aggregate criteria. This is a common strategy for students who want to spread the workload across two exam sessions rather than preparing all seven subjects at once.
What if you score well in one paper but fail the group? If you score 60% or more in a paper but fail to clear that group overall, you're entitled to an exemption in that specific paper for your next three consecutive attempts, provided you scored at least 30% in every other paper of that group and attempted all papers in the group. Students granted this exemption are not considered for merit-based ranking, but the exemption meaningfully reduces the re-attempt workload.
Disclaimer
This article reflects publicly available information on ICAN's CAP II syllabus, structure, and passing criteria as generally understood at the time of writing. Syllabus details, subject names, and passing criteria can be revised by ICAN, particularly during the ongoing transition to the new Foundation/Application/Advisory syllabus naming. Always confirm current requirements against the official syllabus and notices published on en.ican.org.np, or with your registered coaching institute.
Related reading: Already looking ahead to the final level? See our companion guide, ICAN CAP III Case Study Paper: How to Prepare and Score Well. If you're still waiting on your CAP I result, see ICAN CAP I Result 2026: Date, Marking Scheme, and Rechecking Process.
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