Institute of Chartered Accountants of Nigeria

In line with the Financial Reporting Council of Nigeria Act 2011 (as amended), the Financial Reporting Council of Nigeria (FRC) is legally responsible for the establishment of a quality assurance (QA) review system in Nigeria. In parallel, the Institute of Chartered Accountants of Nigeria (ICAN) shares responsibility for quality assurance reviews of its members in accordance with the Institute of Chartered Accountants of Nigeria Act 1965 (ICAN Act).

ICAN has been conducting practice reviews of its member firms since 2009 and maintains an established QA review system that it reports is aligned with the requirements of Statement of Membership Obligations 1 (SMO 1). The Institute continues to conduct reviews of member firms engaged in audit and assurance services and follows up on the implementation of remedial action plans and recommendations arising from practice review findings.

Recent evidence from ICAN’s website confirms that the Institute has continued to strengthen its quality management and practice review framework. ICAN’s 2025 professional syllabus, study texts, and executive training programs explicitly incorporate International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2), including dedicated learning and training modules for firms and practitioners.

ICAN also continues to provide continuing professional development courses, seminars, technical publications, and implementation support to members on quality management standards and audit quality. Recent Institute publications and conference communiqués further confirm an ongoing focus on strengthening practice review frameworks, engagement quality benchmarks, and quality management systems in line with international standards.

Given the well-established and ongoing nature of ICAN’s QA review processes, its continued enhancement of quality management guidance and training, and its sustained support for members in implementing international quality management standards, the Institute is assessed as Sustain in relation to SMO 1.

Current Status: Sustain

Initial and continuing professional development (IPD and CPD) of professional accountants in Nigeria is determined by the two professional accountancy organizations (PAOs) in the country, the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN), as well as the National Universities Commission (NUC) and the National Board for Technical Education (NBTE). The NUC and NBTE determine the curricula of universities and polytechnic institutions, while the PAOs accredit education providers to help ensure alignment with the International Education Standards (IES).

The Institute of Chartered Accountants of Nigeria Act 1965 (ICAN Act) grants ICAN authority to determine the IPD and CPD requirements for the designations of Chartered Accountant (CA) and Associate Accounting Technician (AAT). These requirements include completion of a professional accountancy education program, successful completion of qualifying examinations, and fulfillment of practical experience requirements.

ICAN has implemented a revised syllabus based on a learning outcomes approach that aligns with the IES requirements for initial professional development. The Institute also conducts accreditation reviews of education providers on a periodic basis, generally every four years, to ensure programs remain current and aligned with international standards and evolving professional requirements.

A significant recent development is that, effective 1 January 2024, ICAN increased its Mandatory Professional Development (MPD) requirement from 90 credit hours to 120 credit hours over three consecutive years, fully aligning its CPD requirements with IES 7. The Institute now requires members to obtain 40 credit hours annually, combining structured and unstructured learning activities. This change was explicitly introduced to align with international best practice and IFAC requirements.

ICAN continues to support members through annual MPD calendars, structured in-person and online learning opportunities, executive training programs, and technical updates. The Institute also actively circulates exposure drafts and pronouncements issued by the International Accounting Education Standards Board (IAESB) and supports member engagement in the standard-setting process.

Given the well-established and continuously updated education and professional development framework, including recent full alignment of CPD requirements with IES 7, ICAN is assessed as Sustain in relation to SMO 2.

Current Status: Sustain

In accordance with the Financial Reporting Council of Nigeria Act 2011 (as amended), the Financial Reporting Council of Nigeria (FRC) is responsible for developing or adopting and keeping up to date auditing standards issued by the International Auditing and Assurance Standards Board (IAASB) for application in Nigeria.

The FRC, the Institute of Chartered Accountants of Nigeria (ICAN), and the Association of National Accountants of Nigeria (ANAN) all indicate that International Standards on Auditing (ISAs) and related pronouncements issued by the IAASB are adopted as issued for application in the jurisdiction. Recent evidence further confirms that the FRC continues to update the national framework in line with new IAASB pronouncements, including the July 2025 adoption and implementation of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

ICAN continues to actively support implementation of auditing standards among its members. The Institute includes ISA and related technical topics in its mandatory continuing professional development (CPD) programming and regularly organizes technical seminars, webinars, and workshops on audit and assurance matters. Recent examples include Audit Faculty Board webinar training programmes and mandatory CPD sessions for the audit practice sector, demonstrating ongoing professional support and awareness raising on emerging audit standards and practice issues.

ICAN has also incorporated current auditing standards and related pronouncements into its professional education syllabus and maintains technical support mechanisms for members, including responses to technical queries and guidance on implementation issues.

The Institute further contributes to the international standard-setting process by reviewing and providing comments on IAASB exposure drafts and other pronouncements, including through consultation with subject matter experts and members when required.

Given the established and continuously maintained framework for supporting the adoption, implementation, and updating of auditing standards, ICAN is assessed as Sustain in relation to SMO 3.

Current Status: Sustain

The Financial Reporting Council of Nigeria Act 2011 (as amended) establishes the Financial Reporting Council of Nigeria (FRC) as the ethical standard setter for registered professional accountants in Nigeria, including auditors and other professionals providing services to public interest entities (PIEs). The Act provides that the FRC is responsible for developing and liaising with relevant professional bodies, including the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN), regarding ethical standards.

In accordance with the Institute of Chartered Accountants of Nigeria Act 1965 (ICAN Act), ICAN establishes ethical requirements for its members and has maintained a robust framework for ethical guidance and professional conduct. Since May 2018, ICAN has directly adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA), including the provisions on Responding to Non-Compliance with Laws and Regulations (NOCLAR).

ICAN has undertaken sustained awareness raising and implementation support initiatives for members on ethical requirements, including NOCLAR and updates to the IESBA Code. The Institute continues to make its Professional Code of Conduct and Guide for Members publicly available and supports members through technical guidance, training, and professional publications.

A significant recent development is that ICAN’s 2025 professional syllabus embeds ethics across all fifteen subjects, in addition to dedicated modules covering management, governance, risk, and ethics. The syllabus explicitly states that newly qualified members are expected to demonstrate professional ethical values and informed judgment in addressing complex professional issues.

ICAN’s mandatory continuing professional development programming also continues to include training on ethical requirements and emerging developments in professional conduct, including recent NOCLAR-related leadership and governance training materials published in 2025.

The Institute also continues to participate in the international standard-setting process by responding to IESBA exposure drafts and pronouncements.

Given the well-established and continuously updated framework for ethical standards, member awareness, and integration of ethics into both professional education and continuing professional development, ICAN is assessed as Sustain in relation to SMO 4.

Current Status: Sustain

Public sector accounting standards in Nigeria are developed or adopted by the Financial Reporting Council of Nigeria (FRC) in accordance with the Financial Reporting Council of Nigeria Act 2011 (as amended) and are required to be aligned with the International Public Sector Accounting Standards (IPSAS) issued by the International Public Sector Accounting Standards Board (IPSASB).

The FRC developed and implemented a phased national roadmap for the adoption of accrual-basis IPSAS across all levels of government, with full implementation becoming effective from 1 January 2016. Nigeria’s public sector entities at the federal, state, and local government levels now apply accrual-basis IPSAS, and the first IPSAS-compliant government financial statements were issued following the completion of the transition roadmap. (frcnigeria.gov.ng)

Although the Institute of Chartered Accountants of Nigeria (ICAN) is not the statutory standard setter in this area, the Institute continues to actively support both the adoption and implementation of IPSAS in Nigeria.

A significant and ongoing initiative is ICAN’s Accountability Index (ICAN AI), a framework designed to assess, rate, and rank public finance management and public governance practices across the federal, state, and local levels of government in Nigeria. This remains a key mechanism through which ICAN promotes transparency, accountability, and stronger public financial reporting practices in line with IPSAS principles. (icanig.org)

ICAN also continues to support public sector capacity building through training and professional development initiatives, including collaboration with the Chartered Institute of Public Finance and Accountancy (CIPFA), the Office of the Accountant General of the Federation, and other stakeholders to strengthen public financial management and IPSAS implementation.

In addition, the Institute disseminates new and revised IPSAS standards, guidelines, and other pronouncements issued by the IPSASB and facilitates training for professionals at the federal and state levels.

ICAN also participates in the international standard-setting process by reviewing and commenting on IPSASB exposure drafts and other pronouncements, where appropriate.

Given the sustained and well-established nature of its support for IPSAS implementation, public sector training, and public financial accountability initiatives, ICAN is assessed as Sustain in relation to SMO 5.

Current Status: Sustain

In Nigeria, three entities are involved in the investigation and discipline (I&D) of professional accountants: the Financial Reporting Council of Nigeria (FRC), as the audit oversight authority, together with the two professional accountancy organizations in the country, the Institute of Chartered Accountants of Nigeria (ICAN) and the Association of National Accountants of Nigeria (ANAN).

The FRC is authorized to investigate and issue sanctions for professional accountants and audit firms involved in the financial reporting of public interest entities (PIEs) for non-compliance with applicable standards and professional misconduct. In parallel, ICAN conducts investigative and disciplinary procedures for its members under the Institute of Chartered Accountants of Nigeria Act 1965 (ICAN Act).

ICAN has established a well-defined investigative and disciplinary framework comprising the Accountants’ Investigating Panel (AIP) and the Accountants’ Disciplinary Tribunal (ADT). Complaints may be initiated by members of the public or other stakeholders and are first reviewed by the AIP, which may then refer cases to the ADT for formal disciplinary proceedings.

The Institute has established timelines, case tracking mechanisms, and performance indicators for the timely disposal of disciplinary cases. ICAN also continues to provide annual training to members of the AIP, ADT, and its legal team on their responsibilities, procedures, and due process requirements.

ICAN has also strengthened awareness of its I&D mechanisms through seminars on professional ethics and misconduct, informational materials distributed to members, and the publication of an annual compendium of decided disciplinary tribunal matters.

In addition to member discipline, ICAN maintains dedicated disciplinary mechanisms for students and accounting technicians, including the Students Investigating Committee and the Association of Accounting Technicians (AAT) Investigating Committee, covering examination malpractice and unethical conduct.

The Institute has undertaken self-assessments of its I&D procedures against the requirements of Statement of Membership Obligations 6 (SMO 6) and continues to review and enhance its framework as part of its ongoing commitment to continuous improvement.

Given the well-established and operational nature of its investigative and disciplinary processes, together with ongoing monitoring and enhancement activities, ICAN is assessed as Sustain in relation to SMO 6.

Current Status: Sustain

All companies in Nigeria are required to prepare annual financial statements in accordance with standards issued by the Financial Reporting Council of Nigeria (FRC) as established by the Financial Reporting Council of Nigeria Act 2011 (as amended). Under the Act, accounting standards adopted by the FRC must be aligned with those issued by the International Accounting Standards Board (IASB). Accordingly, the FRC has adopted International Financial Reporting Standards (IFRS Accounting Standards) and IFRS for Small and Medium-sized Entities (IFRS for SMEs) for application in the jurisdiction.

The Institute of Chartered Accountants of Nigeria (ICAN) continues to actively support the FRC’s standard-setting and implementation processes.

A significant and ongoing mechanism for implementation support is ICAN’s Financial Reporting Faculty (FRF), which continues to run IFRS certification programmes, diploma programmes, faculty workshops, and specialized technical seminars for members and finance professionals. Recent public information confirms that the FRF remains active in delivering structured IFRS learning and implementation support. (icanig.org)

ICAN also raises awareness of new and revised IFRS standards through regular workshops, seminars, technical sessions, and professional updates for members. The Institute continues to disseminate pronouncements and consultation papers issued by the IASB and the FRC.

To support implementation, ICAN incorporates IFRS and IFRS for SMEs into its mandatory continuing professional development (CPD) programming and has embedded current IFRS requirements into its professional education syllabus, including its updated 2025 syllabus and study materials. (icanig.org)

The Institute further supports members by issuing technical guidance through bulletins, faculty publications, and responses to member inquiries via its Technical Helpdesk.

ICAN also participates in both the national and international standard-setting processes by reviewing and commenting on exposure drafts and other pronouncements issued by the IASB and the FRC, where appropriate.

Given the well-established and continuously maintained framework for supporting IFRS implementation and updates, ICAN is assessed as Sustain in relation to SMO 7.

Current Status: Sustain