Institute of Chartered Accountants in Malawi

Under the Public Accountants and Auditors Act of 2012, the Malawi Accountants Board (MAB) is responsible for conducting quality assurance (QA) reviews of audits of financial statements, while the Institute of Chartered Accountants in Malawi (ICAM) supports implementation and follow-up actions within its mandate.

The QA review system became operational in 2016 and continues to function effectively. Between 2019 and June 2021, MAB conducted 59 QA reviews of audit firms and practitioners. Findings from QA reviews are shared with ICAM to inform continuing professional development (CPD) programming and, where necessary, disciplinary action.

ICAM has established an Assurance Governance Committee to facilitate feedback from practitioners and coordinate responses to quality-related issues. The institute uses QA findings to design targeted training and guidance to address identified deficiencies and strengthen audit quality across the profession.

Through its ongoing collaboration with MAB, linkage between QA and the investigative and disciplinary system, and structured use of review findings to improve professional competence, ICAM maintains well-established processes to support the effective operation of the QA system.

Current Status: Sustain

Under the Public Accountants and Auditors Act of 2012, ICAM is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants, subject to oversight by the Malawi Accountants Board.

ICAM has developed and maintains the CA(M) professional qualification and CPD framework. The institute has conducted curriculum reviews and updates, including revisions in 2020 and 2021, to strengthen alignment with the International Education Standards (IES). Practical work experience requirements and competency frameworks continue to be refined to reflect revised IES requirements.

ICAM applies an input-based CPD approach and monitors compliance with annual CPD requirements for practicing and non-practicing members. The institute also benchmarks its qualification and education framework against international standards and engages with regional and international partners to support continuous improvement.

While ICAM has made measurable progress in enhancing its education framework, continued refinement and formal benchmarking against the most recent IES requirements are needed to demonstrate comprehensive alignment across all components of the qualification pathway.

Current Status: Review & Improve

International Standards on Auditing (ISA) are required under the Companies Act of 2013 and are applied without modification in Malawi. While the Malawi Accountants Board has oversight responsibility for audit regulation, ICAM supports the effective implementation of ISA within the scope of its mandate.

ICAM communicates updates to auditing standards to its members and incorporates ISA developments into continuing professional development programs and technical guidance. The institute also participates in regional standard-setting forums, including those organized by the Pan African Federation of Accountants, to remain informed of emerging developments.

Through ongoing professional education, technical engagement, and collaboration with regulatory authorities, ICAM maintains established processes to support consistent application of ISA across the profession.

Current Status: Sustain

ICAM is responsible for establishing and monitoring compliance with ethical requirements for professional accountants under the Public Accountants and Auditors Act of 2012. The institute adopts the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued and incorporates updates into its regulatory framework.

ICAM promotes awareness and implementation of ethical requirements through continuing professional development programs, technical guidance, and professional communications. Ethics topics, including independence and non-compliance with laws and regulations, are addressed in training sessions and member outreach activities.

Breaches of ethical requirements are addressed through ICAM’s investigative and disciplinary system, with an appeals mechanism to the Malawi Accountants Board. Through these established processes, ICAM maintains structured oversight and ongoing reinforcement of ethical standards within the profession.

Current Status: Sustain

Public sector accounting standards in Malawi are established by the government under the Public Finance Management Act. The Government currently applies cash-basis International Public Sector Accounting Standards (IPSAS). ICAM does not have regulatory authority over public sector financial reporting but supports developments within the scope of its mandate.

ICAM promotes awareness of IPSAS and public sector financial management reforms through professional events, technical sessions, and stakeholder engagement. The institute has participated in discussions and initiatives aimed at strengthening public financial reporting and provides technical input where appropriate.

While ICAM continues to advocate for enhanced public sector reporting practices, full transition to accrual-basis IPSAS has not been completed. ICAM is executing activities within its remit to support awareness and reform efforts.

Current Status: Review & Improve

ICAM operates an investigative and disciplinary (I&D) system under the Public Accountants and Auditors Act of 2012, covering all professional accountants in the jurisdiction. The system comprises an Ethics and Investigations Committee responsible for receiving and investigating complaints and a separate Disciplinary Committee responsible for adjudicating cases. The Disciplinary Committee includes non-accountant representation to strengthen independence. Decisions may be appealed to the Malawi Accountants Board.

Between 2018 and 2021, ICAM concluded 26 disciplinary cases. During the same period, three cases were appealed to the Malawi Accountants Board, demonstrating the operational effectiveness of the appeals mechanism.

ICAM has also established cooperation arrangements with relevant enforcement authorities. In 2020, memoranda of understanding were signed with the Anti-Corruption Bureau and the Financial Intelligence Authority to facilitate collaboration in matters involving potential professional misconduct and financial crimes.

Through its structured I&D framework, active case management, independent oversight mechanisms, and coordination with external authorities, ICAM maintains well-established processes to support effective enforcement of professional standards.

Current Status: Sustain

International Financial Reporting Standards (IFRS) and IFRS for Small- and Medium-sized Entities (SMEs) are required under the Companies Act of 2013 for applicable entities in Malawi. ICAM supports the effective implementation of financial reporting standards within the scope of its mandate.

ICAM communicates updates to IFRS and IFRS for SMEs to its members and incorporates new and revised standards into its continuing professional development programs and technical guidance. The institute promotes consistent application of financial reporting standards through professional training, outreach activities, and engagement with regulators.

Through ongoing professional education, technical support, and coordination with the Malawi Accountants Board, ICAM maintains established processes to support implementation of IFRS across the profession.

Current Status: Sustain