Accountancy: A Disciplined Profession Presented by Professor Ahmed M. Kumshe, FCA

Accountancy is a disciplined profession, as highlighted by Professor Ahmed M. Kumshe, FCA, during the 68th Induction Ceremony at the ICAN Centre in Lagos. The discourse covers the background to ethics, the International Ethics Standard Board, fundamental principles of ethics, threats to these principles, and professional disciplines. ICAN, established in 1965, sets standards for aspiring accountants in Nigeria and aims to produce world-class Chartered Accountants while regulating ethical standards. Its historical development underscores its pivotal role in shaping accounting practices in Nigeria.

• Accountancy
• Disciplined Profession
• Ethics
• ICAN
• Professional Development

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1. ACCOUNTANCY: A DISCIPLINED PROFESSION PRESENTED BY: Professor Ahmed M. Kumshe, FCA Registrar/Chief Executive at the 68THINDUCTION CEREMONY ICAN CENTRE, AMUWO ODOFIN, LAGOS Monday, November 08, 2021

2. OUTLINES ICAN IN BRIEF BACKGROUND TO ETHICS THE INTERNATIONAL ETHICS STANDARD BOARD & THE FUNDAMENTAL PRINCIPLES OF ETHICS CONCEPTUAL FRAMEWORK OF ETHIC THREATS TO THE FUNDAMENTAL PRINCIPLES PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE & IN BUSINESS PROFESSIONAL DISCIPLINE IN ICAN ANNUAL GENERAL MEETING ICAN DISTRICT SOCIETIES ICAN FACULTIES MANDATORY CONTINUING PROFESSIONAL DEVELOPMENT, MCPD ICAN CONTACT CENTRES MEMBERS PROFILE CONCLUSION 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 2

3. ICAN IN BRIEF Established byAct of Parliament Number 15 of 1965; Founding member of International Federation of Accountants (IFAC), Pan African Federation of Accountants (PAFA), the Association of Accountancy Bodies in West (ABWA) and CharteredAccountants Worldwide (CAW); ICAN has reciprocity arrangements (opportunity of ICAN Members to belong to other PAOs) with Institute of Chartered Accountants of England and Wales (ICAEW), Chartered Institute of Management Accountants (CIMA) and Chartered Institute of Public Finance andAccountancy (CIPFA); ICAN is empowered to set standards of the knowledge and skills to be attained by persons seeking to become members of the accountancy profession in Nigeria; With 53,947 Professional Members (55,191 by tomorrow), and over 230,000 students; Vision: To be a leading global professional body; and Mission: To produce world-class Chartered Accountants, regulate and continually enhance their ethical standards and technical competence in the public interest. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 3

4. ICAN IN BRIEF Historical Development of the Institute Its forerunner, the Association of Accountants in Nigeria, incorporated in 1960 was an umbrella body for all Nigerian Accountants who qualified abroad before Independence in 1960. The Association had the pioneering statutory rights to set standards and regulate the practice of accounting in Nigeria and still has these rights today. The Institute spearheaded the formation of the Nigerian Accounting Standards Board (NASB) a body responsible for standard setting which later metamorphosised into the Financial Reporting Council (FRC) of Nigeria. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 4

5. ICAN IN BRIEF International Affiliations International Federation of Accountants, IFAC Chartered Accountants Worldwide, CAW Pan African Federation of Accountants, PAFA Association of Accountancy Bodies West Africa, ABWA Mentoring: ONECCA Cameroon ONECCA Niger Liberian Institute of Certified Public Accountants (LICPA) The Gambian Institute of Chartered Accountants (GICA) Reciprocity and Co-Memberships ICAEW CIMA CIPFA Reciprocity Discussions: AICPA CPA, Canada; Ghana Institute MI, Malaysia SAICA 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 5

6. ICAN IN BRIEF - Structure The structure of the Institute is as follows: Governing Council - the highest policy making body of the Institute; Executive Coordinating Committee (ECC); Standing Committees; Registrar/Chief Executive; and Secretariat. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 6

7. ICAN IN BRIEF The Governing Council The Governing Council is charged with the policy direction and general management of the Institute. The Council gives policy direction through its oversight functions and holds its meetings at least once a month. The ICAN Council comprises thirty (30) members of the Institute. Twenty-four (24) are elected by Members while six (6) are nominated from the six geo-political zones of the country to ensure that the Council represents the main sectors and interests of the whole membership. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 7

8. ICAN IN BRIEF Executive Coordinating Committee The ECC is made up of Members of the Presidency the President; the Vice-President, the First Deputy Vice-President; the Second Deputy Vice-President; and the Immediate Past President. The Council meets once a month. Where issues arise before the time designated for the Council to meet, the ECC may meet and make decision on behalf of the Council. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 8

9. ICAN IN BRIEF Standing Committees The Council Publications & Image Committee Accountants Disciplinary Tribunal Corporate Finance Management Faculty Finance And General Purposes Committee Professional Practice Committee Accountants Investigating - Panel One to Six Corporate Reporting Faculty Mutual Cooperation Agreement with Tertiary Institutions Implementation and Monitoring Committee District Societies Committee Information Technology Committee Building/Projects Committee Entrepreneurship & Employment Generation Committee Electoral Matters Committee Inter-Governmental Relations Committee ATSWA Examinations Committee Technical, Committee Research And Public Policy AATWA Executive Committee Faculties Management Committee Syllabus Review Committee Audit, Investigation & Forensic Accounting Faculty Membership Affairs Committee Students Special Project Committee Small And Medium Practice Committee Professional Development Strategy, Tracking Committee Advocacy, and Performance LOC - African Congress of Accountants Committee Members Committee Taxation & Fiscal Policy Faculty Insolvency Faculty & Corporate Re Engineering Professional Examinations Committee Students Investigating Committee Young Accountants Networking Committee Information Faculty Technology And Consulting Students Affairs Committee AAT Investigating Committee Accountability Index Steering Committee Annual Accountants Conference Committee Public Finance Management Faculty 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 9

10. ICAN IN BRIEF Registrar/Chief Executive Registrar - Establishes and maintains the registers of Fellows,Associates and RegisteredAccountants. Chief Executive Officer - assist the Council in day-to- day administration/management of the Institute. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 10

11. ICAN IN BRIEF Secretariat oAdministrative organ of the Institute oThe (Technical and Corporate), 9 directorates and 17 Departments including the Registrar s Office. Secretariat is structured into 2 Divisions 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 11

12. ICAN IN BRIEF Secretariat 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 12

13. ICAN IN BRIEF Membership Members admitted to the Institute shall be enrolled as Chartered Accountants in the category of oFellows o Five years Rule - been in continuous practice on their own account as accountants or in partnership with other accountants; o Ten years rule - whether in practice as accountants or not oAssociates if they satisfy the Governing Council that they have: i. passed examinations prescribed or accepted by the Institute; and ii. are otherwise fit persons to be enrolled in the register. oRegisteredAccountant o Applicant must be a member of a PAO outside Nigeria recognised by IFAC; o Application must possess three (3) years post qualification experience; o Applicant must be in good standing with the foreign PAO 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 13

14. CONCEPTUAL FRAMEWORK OF ETHICS A conceptual framework approach is adopted for ethics in the accounting profession. This is because the circumstances in which the professional accountants operate may give rise to specific threats to compliance with the fundamental principles. It is impossible to define every possible situation that creates such threats and specify the appropriate mitigating action. The nature of engagements and work assignments may differ, and consequently different threats may exist, requiring the application of different safeguards. A conceptual framework that requires a professional accountant to identify, evaluate and address threats to compliance with the fundamental principles, rather than merely comply with a set of rules which may be arbitrary, is in the public interest. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 14

15. IESBA AND THE CODE The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that develops internationally appropriate Code of Ethics for Professional Accountants. The objective of IESBA is to serve the public interest by setting high quality ethics standards for ProfessionalAccountants. The Code of Ethics for ProfessionalAccountants Three (3) parts: PartA Fundamental Principles of ethics Part B ProfessionalAccountants in Public Practice Part C ProfessionalAccountants in Business 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 15

16. THE FUNDAMENTAL PRINCIPLES OF ETHICS A Professional Accountant is required to comply with the following fundamental principles: Integrity straightforward and honest in all professional and business relationships; Objectivity not allow bias, conflict of interest or undue influence of others to override professional or business judgements; Professional Competence and Due Care continuing duty to maintain professional knowledge and skill at level required to ensure stakeholders receive competent services based on current development in practice, legislation, and techniques; Confidentiality respect the confidentiality of information acquired as a result of professional and business relation & should not disclose such information without proper and specific authority Professional Behaviour comply with relevant laws and regulations and avoid any action that discredits the profession. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 16

17. THREATS TO THE FUNDAMENTAL PRINCIPLE Compliance with the fundamental principles may potentially be threatened by a broad range of circumstances. Many fall into the following categories: Self-interest threat; Self-review threat; Advocacy threat; Familiarity threat; and Intimidation threat. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 17

18. PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE Professional accountants should be alert to circumstances and relationships that would be incompatible with the fundamental principles of ethics. He/she shall not knowingly engage in any business, occupation, or activity that impairs or might impair integrity, objectivity or the good reputation of the profession Professional Appointment: client acceptance; engagement acceptance; and changes in professional appointment Conflict of interest; Second opinion Fees and other types of remuneration Marketing and Professional services Gifts and hospitality Custody of client assets Objectivity Independence 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 18

19. PROFESSIONAL ACCOUNTANTS IN BUSINESS APAin business shall not knowingly engage in any business, occupation or activity that impairs integrity, objectivity or the good reputation of the profession and as a result would be incompatible with the fundamental principles of the ethical code: Conflict of interest; Preparation and reporting of general-purpose financial statements of an employing organisation; Acting with sufficient expertise Financial interests, compensation, and incentives linked to financial reporting and decision making; Inducements: receiving offers; making offers 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 19

20. PROFESSIONAL DISCIPLINE Rules of professional conduct ICAN rules of Professional Conduct for Members Breach in regulations is subject to sanctions; Investigating panel Disciplinary tribunal 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 20

21. ICAN ANNUAL GENERAL MEETING General assembly of the Institute held once a year; In exceptional circumstances, extra-ordinary general meetings are held; The AGM receives and considers the annual reports and accounts of the Institute prepared by the Council; Major decisions taken at this meeting: appointment of auditors, election of Council Members, special resolutions, etc; ICAN Elections usually held to elect Members desirous of serving in the Institute s Council. The RCE who is the Secretary to the Council is not elected but appointed/employed by the Council; Election into the Council is done through the Electronic Voting System since the 2011 Presidential year; Contestants are not expected to campaign or solicit votes, except through the Candidate s profile displayed on the Institute s website; A Committee, called the Scrutineers, headed by a Past President, usually open and close portal, receive all votes under confidential cover and release the results at theAGM Succession procedure 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 21

22. ICAN DISTRICT SOCIETIES To reach the Institute s numerous Members Sixty-nine (69) Districts and eight (8) chapters Situated in most State capitals and principal cities in Nigeria, Cameroun, Canada, Malaysia, the United Kingdom and the United States; Avails Members the opportunity for professional and social activities, provide information about the Institute s activities to Members who are not often in touch with the Institute s Secretariat; To assist potential accountants in their quest for membership of the Institute Project the image of the Institute in their immediate locality; Serve as liaison offices in their localities Each Member must belong to at least one District Society and serve the Institute at the District level. It is only those who distinguish themselves at this level that can rise on the ladder of the Institute. 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 22

23. ICAN FACULTIES Centres of excellence, designed to equip members with current developments in their specialist areas and disciplines; Each CharteredAccountant must belong to at least one or at most three: S/N Faculty 1. Audit, Investigation and Forensic Accounting 2. Corporate Finance Management 3. Corporate Reporting 4. Information Technology and. Consultancy 5. Insolvency and Corporate Re-engineering 6. Public Finance Management 7. Taxation and Fiscal Policy 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 23

24. MANDATORY CONTINUING PROFESSIONAL DEVELOPMENT, MCPD Objective is to ensure Members are able to maintain the fundamental principle of Professional Competence and Due Care; Post-qualification knowledge update; Members expected to have accumulated minimum of ninety (90) Credit Points over a period of three (3) years; In-house (for organisations) - physical and virtual options 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 24

25. ICAN CONTACT CENTRES Members and students enquiries can be channelled via the following: Help Centre: Tel (01-7100311, 07050180122,,01-6309354) WhatsApp: 07040327465 E-mail: contactcentre@ican.org.ng 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 25

26. MEMBERS PROFILE There is a Members portal on the Institute s website; The Institute reaches Members through information provided. Members whose information are inaccurate or incomplete may not be reachable; Database is currently being regularised to improve communication, serve Members and provide. enriched benefits; www.icanportal.org/members is the link. To review and update information on Members profile 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 26

27. CONCLUSION Familiarise yourself with the Institute and grow through the MCPD and Faculties Abide by the code of ethics and the Institute s Motto Integrity and Accuracy Add value to your immediate society and nation This professional body does all in the public interest 8 November 2021 ACCOUNTANCY: A DISCIPLINED PROFESSION 27

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