THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA ACT

SECTION 1 – provides for the establishment of the institute of Chartered Accountants 0f  Nigeria and charged it with the duty to:

1.     Determine what standards of knowledge and skill are to be attained by the persons seeking to become members of the accountancy profession and raising those standards from time to time.

2.     Secure the establishment and maintenance of registers of Fellows, Associates and registered accountants and publish same from time to time.

3.     Entitles a registered person to use such letters after his name as authorized by the council and receive a certificate as the council to hold office for one-year term.

SECTION 2- Creates the positions of president and vice president, who shall be chairman and vice chairman of the institute and be elected by the council to hold office for one-year term.

The president shall be chairman at meeting of the institute.

The vice president shall act in his stead in the event of death, incapability or inability

SECTION 3 – Provides for a governing body charged with the administration and general management of the institute, consisting of twenty-five persons (now reviewed to thirty persons):

1.     Six persons nominated by the minister of whom each shall be a chartered accountant.

2.     Twenty-four persons elected by the institute of whom thirteen shall be members in practice.

3.     The council is empowered to make regulations, with the approval of the minister for increasing or reducing the membership of the council.

SECTION 4 – Gives the council power to establish, maintain and control a fund into which all monies received by the council shall be paid including monies held by the association of accountants

In Nigeria incorporated under the companies and allied matters Acts (hereinafter referred to as “the association) on its ceasing to exist.

SECTION 5 – Establishes guides for the transfer to the institute of certain property held by the Association upon ceasing to exist.

THE REGISTER

SECTION 6 – Confers the council with a duty to appoint a registrar and such other persons, as it may from time to time think necessary. It also defines the roles of the registrar in maintaining a register, contents and management of the register.

SECTION 7- Relates to the provisions for printing, publishing, and putting on sale of the register as well as keeping the register available at reasonable times for inspection by the public.

REGISTRATION

SECTION 8- Stipulates conditions for enrollment of chartered accountants subject to Section 12 and rule made under section 6 as follows:

1.     Passing qualifying examination, completion of prescribed practical training or holding a qualification granted outside Nigeria and accepted by the institute as satisfying the council of sufficient practical experience, if the council so desires.

2.     Not less than five years experience as an inspector / Auditor of company affairs under the provisions of the companies Act.

3.     Satisfying the council of good character, attainment of the age of twenty-one  and having no conviction record.

4.     Provisional registration Is possible at the council’s discretion and may be converted to full registration without consent of the council signified in writing,

5.     Particulars of accepted qualifications shall be published intended in the federal Gazette from time to time.

SECTION 9- Stipulates conditions and powers of the council to approve or withdraw approvals of institutions or courses of training at an approved institution intended for persons seeking to become or are already accountants.

SECTION 10- Charges members of council to keep themselves informed of the nature of institution given at approved institution for approved courses of training and the examination for which qualifications are granted. It also:

1.     Vests the council with power to appoint persons to visit approved institution, or to attend such examinations.

2.     Stipulates the duty of a visitor to report the sufficiency of institution, examination and other matters relating to the institutions or examination on which the council may request him to report.

3.     Bars the visitor from interfering with the giving of any instruction or holding of any examination.

PROFESSIONAL DISCIPLINE

SECTION 11- Provides for the establishment of the Accountants’ Disciplinary Tribunal (hereinafter referred to as the “Tribunal” to be charged with considering and determining cases referred to it by the panel established by the provisions of the section, and any other case of which the Tribunal has cognizance.

The panel is to conduct preliminary investigation into any case where it is alleged that members have misbehaved in their capacity as accountants.

SECTION 12- Lay down penalties for professionals misconduct or infamous in any professional respect. Penalties include reprimanding or ordering the Registrar to strike off names of guilty members from the register. The Section also defines the processes and limits for carrying out this act. It outlaws the re-registration of persons whose names have been removed from the Register except in pursuance of a direction by the Tribunal.

MISCELLANEOUS AND GENERAL

SECTION 13- PROVIDES FOR NON-MEMBER OF THE Association who would have been qualified to apply for and obtain membership, but for the Act, to apply for membership of the institute.

SECTION 14- Stipulates conditions under which a person shall be deemed to practice as an accountant.

SECTION 15- Gives the council power to make rules and publish same in the Federal Gazette regarding the following:

1.     Training with Chartered accountants of suitable persons in accountancy methods and practice.

2.     Supervision and regulation of the engagement, training of such persons.

3.     Provision of articles.

4.     Prescription of amount and due date for annual subscription.

5.     Form of license to practice to be issued.

6.     Restriction of the right to practice in default of payment

7.     Restriction of the right to practice if the qualification granted outside Nigeria does not entitle the holder to practice as an accountant.

8.     Prescribing the period of practical training before qualification for enrollment or license to practice.

SECTION 16- Empowers the institute to provide and maintain a library for the advancement of knowledge of accountancy, and such other books as deemed necessary for the purpose as well as encourage research into accountancy methods and allied subjects.

SECTION 17- Prescribes processes for rules and regulations subject to confirmation by the institute at its Annual General Meeting or any special meeting of the institute convened for the purpose.                 SECTION 18- Describes what constitutes an offense and prescribes the extent of liability for offenders.

SECTION 19- Gives the interpretation to key words and phrases in the Act.

SECTION 20- Presents the title of the Act as the institute of Chartered Accountants of Nigeria Act.

FIRST SCHEDULE

SUPPLEMENTARY PROVISIONS RELATING TO THE COUNCIL

This schedule provides guideline and procedures for the following:

1.     Qualification and tenure of office of members

2.     Power and proceedings of the council

3.     Meeting of the institute and the council