Association of National Accountants of Nigeria
Member | Established: 1979 | Member since 2014; Associate since 2012
The ANAN Act of 1993 established the Association of National Accountants of Nigeria (ANAN). ANAN administers a Certified National Accountants Certification, which is conferred on members who successfully complete the National Accountant Certification exam administered by the Nigerian College of Accountancy, a training institute of ANAN. The majority of ANAN members are accountants who work in the public sector. ANAN collaborates with other stakeholders in the audit and financial reporting standard-setting processes and with anti-corruption agencies.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
The ANAN, which has shared responsibility for the quality assurance (QA) review system in Nigeria, began conducting QA reviews in 2011 and, as of 2015, had completed 61 reviews. As of 2015, however, the ANAN is not able to conduct the reviews as regularly as was originally planned due to staff shortages. Efforts have been made to engage more staff in January 2016 to address this challenge.
In line with its obligations, the ANAN provides training to ANAN QA review inspectors and members who participate in the peer review program, as well as implementation guidance for its members. The association raises members’ awareness of the requirements of ISQC 1 and ISA 220 by including relevant topics in its annual Mandatory Continuing Professional Development program. The ANAN publishes information on the scope and requirements of the QA review system on its website and in other publications to ensure that members are kept abreast of requirements. In addition, the association prepares and publishes a variety of implementation guidance such as the ANAN Quality Assurance Review Guidelines, Handbook on Public Practice, and Audit Guidelines for Small and Medium Scale Enterprises. The ANAN is a major stakeholder in the Financial Reporting Council, which is responsible for the implementation of the QA review system.
The ANAN is encouraged to review the requirements of SMO 1 (revised 2012) and share the results of the review with IFAC Quality and Membership staff, highlighting areas, if any, that need attention in order to align the system with the requirements of the revised SMO 1. Given the shortage of resources, which has resulted in a reduction of the frequency with which QA reviews are carried out, ANAN is also encouraged to consider ways to address its resource needs.
The ANAN, with shared responsibility for education and training of accountants at the jurisdiction level, has established requirements that seem to be overall in line with those of IESs. It also works with other stakeholders to ensure that IES requirements are incorporated into initial professional development (IPD) and continuing professional development (CPD) programs. The association reports to be actively engaged with tertiary education institutions, the National Universities Commission, and the National Board for Technical Education to promote adoption and incorporation of IESs into the IPD accountancy education programs. It also encourages education providers and its members to stay abreast of new and revised IESs. The ANAN is also strengthening its support of programs for accountancy education and research in Nigeria. The ANAN reports in its 2015 SMO Action plan that it is engaged in a number of activities to enhance its training requirements in line with IES 5, and also to strengthen the professional examination process. In addition, it has embarked on a process to introduce a mid-level accountants program. The ANAN reports that it responds to all Exposure Drafts and all pronouncements issued by the International Accounting Education Standards Board.
The ANAN is encouraged to review the requirements of the revised IESs and report to IFAC Quality and Membership staff on the extent of compliance of IPD and CPD requirements for its members with the revised IESs.
The ANAN, with shared responsibility for the adoption of auditing standards in Nigeria, participates in the standard-setting process and supports the adoption/convergence process with ISAs, which have been adopted for application in Nigeria. Prior to the establishment of the Financial Reporting Council (FRC), which is the ultimate authority for the adoption of auditing standards, the ANAN issued its own standards consistent with the pronouncements of the International Auditing and Assurance Standards Board (IAASB) for use by its members. Currently, the ANAN continues to participate in auditing standard setting and is a major stakeholder of the FRC. The association reports that it is in the process of enhancing existing mechanisms to better provide comments on Exposure Drafts and other pronouncements issued by the IAASB and the FRC. In addition, it raises awareness of Clarified ISAs and other IAASB pronouncements in the Mandatory Continuing Professional Development program and Mandatory Professional Practitioner’s Forum. The ANAN assists its members with implementation of ISAs through the creation and publication of implementation guidance, which includes the Handbook on Public Practice, and Audit Guidelines for Small and Medium Scale Enterprises. The association states that it intends to further assist the implementation of the standards by developing mechanisms to respond to members’ technical queries on ISAs.
The ANAN shares responsibility with the Financial Reporting Council (FRC) for the establishment of ethical standards for its members. It reports in its 2015 SMO Action Plan that the 2014 version of the IESBA Code has been adopted for application by ANAN members. The ANAN states that it provides members with information on new and revised pronouncements issued by the International Ethics Standards Board for Accountants (IESBA) via a variety of mechanisms and works with accountancy education providers to update the curriculum. The association indicates that it provides training on ethics in the Mandatory Continuing Professional Development program, practical guidance on dealing with threats to professional independence, and raises members’ awareness of the consequences of non-compliance with the Code of Ethics.
The ANAN is encouraged to consider collaborating with both the FRC and Institute of Chartered Accountants of Nigeria on the establishment of uniform ethical standards for professional accountants in Nigeria. In addition, the ANAN is encouraged to consider participating in the international standard-setting process by providing comments on Exposure Drafts and other pronouncements issued by IESBA.
Although the ANAN has no responsibility for the adoption or implementation of IPSASs in Nigeria, it exerts its best endeavors to support adoption and implementation of the standards. It actively supports the standard setter, the Financial Reporting Council (FRC), by participating in activities geared toward adoption and implementation. The association offers comments on Exposure Drafts and other pronouncements issued by IPSASB and the FRC, when deemed necessary. It reports in its 2015 SMO Action Plan that it continues to incorporate standard-related topics into its initial professional development) and continuing professional development curriculum, and collaborates with stakeholders to ensure that relevant topics are also included in the accountancy education programs in tertiary institutions. To support implementation, the ANAN informs members of new and revised standards, guidelines, and other pronouncements issued by the IPSASB. Also, the association reports that it issues technical guidance and responds to members’ inquiries on IPSASs. The ANAN delivers workshops, seminars, and other training events for its members, and has initiated an online IPSAS training and certification program in conjunction with CPA Ireland.
The ANAN, which shares responsibility for the investigation and discipline of its members’ compliance with ethical and professional standards, has an established investigative and disciplinary (I&D) system. The association states in its 2015 SMO Action Plan that it intends to use the revised SMO 6 requirements to execute its mandate. ANAN’s efforts to align the system with SMO 6 have included strengthening administrative processes related to record keeping and tracking of cases. It reports that it has incorporated investigation and complaints procedures into the system, and that it offers appropriate training to members and the I&D staff on international best practices.
The ANAN is encouraged to conduct an updated gap analysis of its current I&D system using the revised SMO 6 requirements as a benchmark and share with IFAC Quality and Membership staff the results and its plans to address identified gaps. The ANAN is encouraged to incorporate mechanisms to raise members’ and the public’s awareness of the I&D system.
The ANAN does not have responsibility for the adoption or implementation of pronouncements issued by the International Accounting Standards Board (IASB). It nevertheless supports the Financial Reporting Council (FRC) in its adoption of IFRSs through its representation on the Council and its participation in the activities that the FRC organizes. The association reports that it comments on Exposure Drafts issued by the IASB and raises awareness of the standards through workshops. It also supports implementation by offering training and education on IFRSs. It states that it collaborates with other accountancy education providers to ensure that initial professional development (IPD) curricula incorporate standard-related material (IFRSs and IFRSs for SMEs). The association reports in its 2015 SMO Action Plan that it also supports implementation by issuing technical guidance on IFRSs.
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