ICAN: Purpose, functions, powers, history, and more

The Institute of Chartered Accountants of Nigeria (ICAN) is a professional body responsible for regulating the practice of accountancy in Nigeria. This article explores the purpose, functions, history, powers, and other important information about the institute, including its role in shaping the accounting profession in the country. Whether you’re an aspiring accountant or simply interested in learning more about the profession, this article provides a comprehensive overview of ICAN and its impact.

What is ICAN and its role in Nigeria?

The Institute of Chartered Accountants of Nigeria (ICAN) is a professional accounting body that was established in 1965, with the primary aim of regulating the practice of accountancy in Nigeria. ICAN is a member of the International Federation of Accountants (IFAC) and has been responsible for shaping the accounting profession in Nigeria over the years.

ICAN is mandated to promote and regulate the accountancy profession in Nigeria by establishing standards of professional competence, conduct and ethics for its members. The institute is also responsible for conducting professional examinations for students who want to become chartered accountants, and for ensuring that its members continue to uphold the highest standards of professionalism and ethical conduct throughout their careers.

ICAN has played a significant role in the growth and development of the accounting profession in Nigeria and has been instrumental in ensuring that the profession is held in high regard both locally and internationally. The institute has also been at the forefront of promoting transparency and accountability in the public and private sectors and has worked tirelessly to ensure that its members are equipped with the necessary skills and knowledge to succeed in a rapidly changing business environment.

History of ICAN

The Institute of Chartered Accountants of Nigeria (ICAN) has a rich and diverse history, dating back to the pre-independence era in Nigeria. The institute was initially established in 1965 under the Companies Ordinance, which was then the law governing the registration of professional bodies in Nigeria.

Since its inception, ICAN has grown significantly, both in terms of membership and influence. Today, the institute has over 50,000 members, including students, associates and fellows, who work in various sectors of the Nigerian economy.

Over the years, ICAN has also evolved to meet the changing needs of the accounting profession in Nigeria. The institute has introduced new courses and programs, such as the Accounting Technicians Scheme (ATS), which was introduced in 1989 to provide an alternative route for individuals who are interested in pursuing a career in accountancy but may not have the academic qualifications to enrol for the professional examinations.

ICAN has also played a significant role in shaping the accounting profession in Africa and beyond. The institute has been actively involved in the affairs of international accounting bodies such as the International Federation of Accountants (IFAC) and the Association of Accountancy Bodies in West Africa (ABWA) and has worked to promote global best practices in the profession.

Functions and powers of ICAN

The Institute of Chartered Accountants of Nigeria (ICAN) has various functions and powers that are aimed at regulating the accountancy profession in Nigeria. One of the institute’s primary functions is to establish standards of professional competence, conduct and ethics for its members. These standards are designed to ensure that ICAN members uphold the highest levels of professionalism, integrity and ethical conduct in the practice of their profession.

ICAN is also responsible for conducting professional examinations for students who wish to become chartered accountants. The institute’s examinations are designed to test the knowledge and skills of candidates in various areas of accountancy, including financial accounting, management accounting, auditing, and taxation.

In addition, ICAN has the power to regulate the practice of accountancy in Nigeria and to discipline its members who violate its rules and regulations. The institute has established a code of ethics that sets out the standards of conduct that its members are expected to adhere to, and any member who violates this code of ethics is liable to face disciplinary action.

ICAN also has the power to monitor the performance of its members and to ensure that they are keeping up with the latest developments in the profession. The institute offers various training programs, seminars, and workshops to help its members enhance their skills and knowledge and to ensure that they remain relevant in a rapidly changing business environment.

ICAN’s Impact on the accounting profession in Nigeria

The Institute of Chartered Accountants of Nigeria (ICAN) has had a significant impact on the growth and development of the accounting profession in Nigeria. The institute has been instrumental in promoting professionalism, ethical conduct, and accountability in the industry, and has worked tirelessly to ensure that the profession is held in high regard both locally and internationally.

ICAN’s contribution to the growth and development of the accounting profession in Nigeria can be seen in various areas, including education, training, and research. The institute has introduced various programs and initiatives to help students and professionals in the industry improve their skills and knowledge, including the Accounting Technicians Scheme (ATS) and the Mandatory Continuing Professional Education (MCPE) program.

ICAN has also played a significant role in promoting transparency and accountability in the public and private sectors. The institute has worked closely with the government and other stakeholders to develop and implement sound financial policies and practices and has been at the forefront of efforts to combat financial fraud and corruption.

Her efforts to promote global best practices in the accounting profession have helped to enhance the reputation of Nigerian accountants and firms internationally. The institute’s members are recognized as highly skilled professionals who adhere to the highest standards of professionalism and ethical conduct.

Conclusion 

The Institute of Chartered Accountants of Nigeria (ICAN) has established various committees and bodies to carry out its functions and to ensure the effective regulation of the accounting profession in Nigeria.

These committees and bodies include the Professional Standards and Ethics Committee, the Investigation and Disciplinary Committee, and the Education and Training Committee, among others.

Frequently Asked Questions (FAQs)

Which body sets the standard of practice acceptable in ICAN?

The Professional Standards and Ethics Committee is responsible for setting standards of professional competence, conduct, and ethics for ICAN members. The committee also reviews and updates these standards periodically to ensure that they remain relevant and effective.

Which body is responsible for dealing with reports of unprofessional conduct in ICAN?

The Investigation and Disciplinary Committee is responsible for investigating allegations of professional misconduct against ICAN members and taking disciplinary action against members who are found to have violated the institute’s rules and regulations.

Don't miss a thing. Follow us on Telegram. If you love videos then also Subscribe to our YouTube Channel. We are on Twitter as MakeMoneyDotNG.

Richard Okoroafor

Richard Okoroafor

Richard is a brilliant legal content writer who doubles as a finance lawyer. He brings his wealth of legal knowledge in corporate commercial transactions to bear, offering the best value that exceeds expectations.

Articles: 421