Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    The Institute of Chartered Accountants of Nigeria

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Nigeria


    2. Name of member body:
      The Institute of Chartered Accountants of Nigeria

      Or please specify name:



    3. Individual responsible for preparation:
      MR. O. OLUBUNMI SOWANDE


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      10 / 1977



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      ASSOCIATION OF ACCOUNTING BODIES IN WEST AFRICA (ABWA)



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: COMPANIES AND ALLIED MATTERS ACT 1990
      b). the Enacting body: THE NATIONAL ASSEMBLY
      c). date the Act or Code came into force: 01 / 1990


    25. How can IFAC obtain a copy of the Act or Code?
      CAN BE MAILED TO IFAC


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities In Nigeria, the Companies and Allied Matters Act 1990 made it mandatory for the Boards of Directors of companies to prepare periodic financial statements which comply, in form and content, with the generally accepted accounting principles (GAAP) and standards laid down in the Statements of Accounting Standards issued from time to time by the Nigerian Accounting Standards Board (ICAN). Section 334(1) of the Act provides expressly that in the case of every company, the directors shall in respect of each year of the company, prepare financial statements for the year. Sub-section (2) defines financial statements.
      Private companies See above for listed entities
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Although no reference is made to compliance to audit standards, the ICAN Act no. 15 1965 empowers ICAN to set audit standards to be complied with by external auditors.
      Private companies See above for listed entities.
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): The Board of Directors may appoint auditors if vacancy occurs
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:
      However joint auditors can be appointed. This practice is common in Nigeria.


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      Securities and Exchange Commission Act
      Investment and Securities act
      Nigerian Stock Exchange Act

    2. the Enacting body(ies)

      The National Assembly of Nigeria

    3. the latest amendment date?

      The National Assembly is currently reviewing the Investment and Securities Act with a view to amending it.


    35. How can IFAC obtain a copy of the Legal authority?
      Can be mailed to IFAC upon request.


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:
      The Bank and Other Financial Intuitions Act 1991 requires that the Central Bank of Nigeria must approve financial statements before publication.
      The National Insurance Commission Act requires that it approves that of Insurance Corporations.


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:
      External auditors of financial institution are required to forward their management letters to the Central Bank of Nigeria. The Nigeria Deposit Insurance Corporation and the National Insurance commission must comply with audit standard issued by ICAN.


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): May appoint auditors if vacancy occurs between ACIMS or prior to 1st ACIM.
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Act No. 15 of 1965 1990 Institute of Chartered Accountants of Nigeria (ICAN)
      Other (please describe) Private companies Act No. 15 of 1965 1990 Institute of Chartered Accountants of Nigeria (ICAN)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Can be mailed.

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Institute of Chartered Accountants of Nigeria (ICAN))


    44. For Institute of Chartered Accountants of Nigeria (ICAN), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Professional body established by the parliamentary ICAN Act No. 15 (1965)

      b. Name of standards

      Auditing Standards


    45. How many voting members does the standard-setting body have?
      25


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Professional qualifications, experience, and sector representation. Most members (80%) are elected.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The government appoints five; 25 members. The others are elected.


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      39 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      1,571,756

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      135



    52. To what entity is the standard-setting body accountable?
      Self-regulating


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Draft standards are issued by the ICAN and exposed for comments for ninety days. Thereafter, comments/suggestions are collated and incorporated in the standards if found to be appropriate.

    2. accessibility of meetings (i.e., public or private)

      Accessible to all.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Support of majority of members is required before the standard can be adopted and issued.

    4. other relevant due process activities



    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice ICAN Act No. 15 of 1965 1990 Institute of Chartered Accountants of Nigeria
      Professional Accountants in Business ICAN Act No. 15 of 1965 1990 Institute of Chartered Accountants of Nigeria
      Professional Accountants in the Public Sector CAN Act No. 15 of 1965 1990 Institute of Chartered Accountants of Nigeria
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Can be mailed.

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Institute of Chartered Accountants of Nigeria)


    56. For Institute of Chartered Accountants of Nigeria, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Professional body established by the ICAN Act No. 15 of 1965

      b. Name of standards

      Rules of Professional conduct for members


    57. How many voting members does the standard-setting body have?
      25


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Professional qualification, experience, and sector of the profession (e.g. In practice vs. not in practice).


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    61. What is the term of appointment for members?
      3 Year(s)


    62. For how many years has the standard-setting body been in existence?
      39 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      1,571,756

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      e.g. 135



    64. To what entity is the standard-setting body accountable?
      Self-regulated.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)

      Committee meetings are open and accessible to interested members.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority support

    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      Six years Primary Education
      Three years Junior Secondary Education
      Three years Senior secondary Education
      Four years University Education


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      The Companies and Allied Matters Act, 1990
      The ICAN Act No. 15, 1965
      The Association of National Accountants Act,1993


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Professional examinations
      Practical experience
      Thirty months internship in an Audit firm.
      Final qualifying examination
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      The National Universities Commission and
      The National Board for Technical Education

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      The bodies work through the Committee system composed of academics/professionals. The bodies are to lay down minimum standards for all Universities/Polytechnics in the country and also accredit their degrees and other academic awards after obtaining prior approval from the President through the Minister.

    2. How many voting members does the relevant body(ies) have

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: The commission/Board consists of employees of the bodies and representatives of stockholders ____ /ICAN

    4. For how many years has the body been in existence?

      Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?
      Can be mailed

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Institute of Chartered Accountants of Nigeria


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      The Institute of Chartered Accountants of Nigeria


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      None



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Finance and Mgt. Contra Act Cap. 144, Laws of Federation 1990 1990 Federal Ministry of Finance
      Ministry/department
      Statutory authority/agency NASB Act 2003 N.A.S.B.
      Profit entity owned by government NASB Act 2003 N.A.S.B.
      State governments NASB Act 2003 N.A.S.B.
      Local governments NASB Act 2003 N.A.S.B.
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Can be mailed

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Federal Ministry of Finance)


    83. For Federal Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Government Ministry

      b. Name of standards

      Financial regulations


    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Staff of federal Ministry of finance are full time employees. The NASB members are appointed by government/ stockholders


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Professional qualification, experience and sector of the Profession.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government/other stockholders


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      22 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?
      To the Government and all stockholders in the economy.


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Publication of exposure drafts for thee months. Collation of comments.

    2. accessibility of meetings (i.e., public or private)

      Meetings are accessible to the public and interested stockholders.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority of members

    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 8B -- Standard-Setting (N.A.S.B.)


    83. For N.A.S.B., please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Part of government

      b. Name of standards

      None


    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Staff of federal Ministry of finance are full time employees. The NASB members are appointed by government/ stockholders


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Professional qualification, experience and sector of the Profession.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government/other stockholders


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      22 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?
      To the Government and all stockholders in the economy.


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Publication of exposure drafts for thee months. Collation of comments.

    2. accessibility of meetings (i.e., public or private)

      Meetings are accessible to the public and interested stockholders.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority of members

    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity NASB Act 2003 NASB
      Other (please describe) CAMA 1990
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Can be mailed.

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (NASB)


    95. For NASB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Part of Government Ministry

      b. Name of standards

      Various


    96. How many voting members does the standard-setting body have?
      15


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Members are appointed by the government/stockholders. NASB also has full time employees.


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Professional qualification, experience and sector of the Profession.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government/other stockholders


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      22 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?
      To all stockholders in the economy.


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Publication of Exposure Draft for 3 months.
      Collation of Comments.
      Issuance of standard.


    2. accessibility of meetings (i.e., public or private)

      Meeting are accessible to Members of the Public.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Majority Vote

    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Securities and Exchange Commission.
      Nigerian Stock Exchange.


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      Beyond preventing the publication of qualified financial statement and stopping trade on the floor of the market, the two bodies do not have any other legal powers to enforce compliance.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      No direct role

    2. accounting and auditing standard-setting

      No role. The NASB and ICAN issue and enforce compliance to accounting and auditing standards respectively.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      While they have technical depts. for the reviewing of financial statements issued by quoted companies, they cannot legally enforce compliance other than stoppage of trading in the shares of affected companies



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Lagos
      Isadan
      Port Har court
      Kano and Abuja



    Section 10B -- Stock Exchange
    Lagos Details


    110. For Lagos, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Internal review of financial reports. No publication of qualified financial report. No trading in shares.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Trading in shares will be suspended.

    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Isadan Details


    110. For Isadan, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Internal review of financial reports. No publication of qualified financial report. No trading in shares.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Trading in shares will be suspended.

    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Port Har court Details


    110. For Port Har court, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Internal review of financial reports. No publication of qualified financial report. No trading in shares.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Trading in shares will be suspended.

    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Kano and Abuja Details


    110. For Kano and Abuja, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Internal review of financial reports. No publication of qualified financial report. No trading in shares.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Trading in shares will be suspended.

    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?

      There is no special/formal oversight body but ICAN monitors quality of services of its members through peer review. See Quality Assurance.

    2. The number of members on the oversight body



    3. Its powers

      The committee itself can not sanction but can make recommendation to ICAN Council.

    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body

      Accountable to the council of the Institute of Chartered Accountants of Nigeria.


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The Central Bank of Nigeria and the Nigeria's Deposit Insurance Corporation.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      Performs mandatory oversight function. Reviews financial statements regularly. Must approve financial statements before publication. Can sanction banks for non-compliance.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Auditors are required to send their management letter to the regulatory authorities.

    2. accounting and auditing standard-setting

      Are members of the Nigeria Accounting Standard Board.

    3. review of financial statements prepared by listed entities

      Must review and approve financial statements of financial institutions (banks insurance) before they are published.

    4. enforcement of accounting, reporting and auditing requirements

      Can sanction banks for non-compliance to standards and infringement on Legislations.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      Federal Mortgage Bank of Nigeria (FMBN) Central Bank of Nigeria.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Central Bank of Nigeria Act No 24 of 1991 Bank and other financial institution Act 1991 Federal Mortgage Bank of Nigeria Act 1977


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      Receives management letter from auditors.

    2. accounting and auditing standard-setting

      FMBN plays no direct role beyond commenting on exposure drafts. The roles of CBN have been described above

    3. review of financial statements prepared by listed entities

      Review financial statements as in 114.

    4. enforcement of accounting, reporting and auditing requirements

      Can sanction banks for non-compliance to standards and infringement on Legislations.



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      National Insurance Commission


    119. What is the source of Legal authority of the regulatory authority(ies)?
      NAT COM Act 2003 Insurance Act 1976


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      No direct role

    2. accounting and auditing standard-setting

      No direct role

    3. review of financial statements prepared by listed listed entities

      Yes

    4. enforcement of accounting, reporting and auditing requirements

      Must approve financial statements before publication.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      Corporate Affairs Commission


    122. What is the source of Legal authority of each regulatory authority?
      Companies and Allied Matters Act 1990


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      No direct role

    2. accounting and auditing standard-setting

      No direct role but all financial statements must comply with all standard issued by the NASB.

    3. review of financial statements prepared by listed listed entities

      No direct role

    4. enforcement of accounting, reporting and auditing requirements

      It is empowered to arrange or conduct investigation into the affairs of any company where the interests of the shareholders and the public so demand.



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      The Public Practice section of ICAN sets parameters for monitoring compliance to standards, ethics and sometimes, regulations. As an audit-licensing faculty, it works through committees comprising members drawn from practising firms.



    125. Under what authority does the organization conduct the program of quality assurance review?
      The PPS was created by ICAN to enhance quality assurance services. The PPS itself cannot issue sanctions but can make recommendations to the ICAN Council.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      An adhoc technical committee of PPS comprising experienced chartered accountants in practice.

      All practicing firms of members licensed to practice by ICAN.




    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Accountant's investigating Panel created by ICAN/ANAN Acts.
      Accounts' Disciplinary Tribunal created by ICAN/ANAN Acts.



    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      15


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Professional qualifications, experience and sector. Most members are elected (80% are elected)


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Institute of Chartered Accountants of Nigeria


    134. What is the term of appointment for members?
      1 Year(s)


    135. For how many years has the body been in existence?
      39 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?
      To the stockholders.


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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