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54TH INDUCTION LECTURE FOR 54TH INDUCTION LECTURE FOR 54TH INDUCTION LECTURE FOR 54TH INDUCTION LECTURE FOR NEW MEMBERSNEW MEMBERSNEW MEMBERSNEW MEMBERS
ICAN CENTREICAN CENTREICAN CENTREICAN CENTREICAN CENTREICAN CENTREICAN CENTREICAN CENTRE
PLOT 12, KOFO KASUMU STREETPLOT 12, KOFO KASUMU STREETPLOT 12, KOFO KASUMU STREETPLOT 12, KOFO KASUMU STREET
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03 NOV, 201403 NOV, 201403 NOV, 201403 NOV, 2014
INDUCTION LECTURE FOR
NEW ICAN MEMBERS
DELIVERED BY
ROTIMI A. OMOTOSO MBA, CGMA, CPA, FCIB, FCA
REGISTRAR/CHIEF EXECUTIVE
2Induction Lecture for New ICAN
Members
�WELCOME AND CONGRATULATIONS
�BEFITTING ACKNOWLEDGEMENT OF YOUR DETERMINATION
AND HARD WORK
�AN OCCASION TO REJOICE AND SAVOUR THE AROMA OF GOOD
SUCCESS.
�CONGRATULATIONS ONCE AGAIN FOR YOUR SUCCESS AND FOR
CHOOSING THE RIGHT PROFESSION.
3Induction Lecture for New ICAN
Members
� A rich tradition of diligently guiding new members
into the profession.
� Providing insight into the structure and operations of� Providing insight into the structure and operations of
the Institute.
� Providing guidance on current issues new members
will probably face as Chartered Accountants.
� Discussing the ethics of the profession.
4Induction Lecture for New ICAN
Members
� Association of Accountants in Nigeria, forerunner of the
institute: 1960 - 1965
� ICAN – Since 1965
� Pioneering statutory rights to set standards and regulate
the practice of accountancy in Nigeria
� From just 250 members in 1965 to well over 38,000
5Induction Lecture for New ICAN
Members
“AccuracyAccuracyAccuracyAccuracy andandandand IntegrityIntegrityIntegrityIntegrity” - This implies that the
profession welcomes only persons with proven
integrity and honesty into its membership.
6Induction Lecture for New ICAN
Members
� The ICAN Council - the highest policy making body.
� Standing Committees
� Officers
� Executive Coordinating Committee (ECC).
� ICAN Secretariat
7Induction Lecture for New ICAN
Members
� The Act provides that “there shall be a governing body of the Institute;
a Council charged with the administration and general management of
the Institute.” The Council shall consist of a total of thirty persons,
being fellows or associate members as follows:
◦ Six persons nominated by the Minister of Education, of whom each shall be a
chartered accountant whether in practice or not.
◦ Twenty four persons elected by the members of the Institute thirteen of whom shall be
members in practice as accountants.
� The Chairman of the Council is the President who is assisted by a
Vice-President and two Deputy Vice-Presidents.
8Induction Lecture for New ICAN
Members
� The Act also provides for the position of theRegistrar
� Administrative head of the Secretariat charged withthe responsibility of establishing and maintainingthe registers of fellows, associates and registeredaccountants.accountants.
� Registrar is also the Chief Executive Officer of theInstitute, and with his staff, assist the Council inday-to-day administration of the Institute.
9Induction Lecture for New ICAN
Members
� Administrative organ of the Institute
� Maintains the registers of fellows, associates and
registered accountants.
� The Secretariat is made up of seventeen
departments including the Registrar’s Officedepartments including the Registrar’s Office
structured into thirteen directorates.
10Induction Lecture for New ICAN
Members
� The Council functions through its Committees.
� While Council deals with general policy matters,
Committees are set up to handle specific issues which
require detailed analysis.
� Schedule 1 (7) (1) empowers Council to appoint
Committees to carry out on its behalf, such functions asCommittees to carry out on its behalf, such functions as
the Council may determine.
� Schedule 1(7)(3) provides that a “decision of the
Committee of Council shall be of no effect until it is
confirmed by Council”.
11Induction Lecture for New ICAN
Members
FINANCE & GENERAL PURPOSES
STUDENTS STUDENTS STUDENTS STUDENTS INVESTIGATIONINVESTIGATIONINVESTIGATIONINVESTIGATION
INFORMATION TECHNOLOGY
ANNUAL ACCOUNTANTS CONFERENCE
MEMBERSHIP AFFAIRS AAT INVESTIGATION AAT INVESTIGATION AAT INVESTIGATION AAT INVESTIGATION PANELPANELPANELPANEL
FACULTY BOARD ELECTRORAL MATTERS
PROFESSIONAL EXAMINATIONS
PROFESSIONAL PRACTICE PROFESSIONAL PRACTICE PROFESSIONAL PRACTICE PROFESSIONAL PRACTICE MONITORING COMMITTEEMONITORING COMMITTEEMONITORING COMMITTEEMONITORING COMMITTEE
BUILDING COMMITTEE TECHNICAL RESEARCH & PUBLIC POLICY
MEMBERS’ EDUCATION AND TRAINING
ACCOUNTANTS ACCOUNTANTS ACCOUNTANTS ACCOUNTANTS INVESTIGATION PANELINVESTIGATION PANELINVESTIGATION PANELINVESTIGATION PANEL
STUDENTS AFFAIRS STUDENTS EDUCATION & TRAINING
PUBLIC IMAGE ACCOUNTANTS ACCOUNTANTS ACCOUNTANTS ACCOUNTANTS DISCIPLINARY TRIBUNALDISCIPLINARY TRIBUNALDISCIPLINARY TRIBUNALDISCIPLINARY TRIBUNAL
AAT COMMITTEE MULTILATERAL COMMITTEE
STUDENTS SPECIAL PROJECT
STRATEGY ATSWA EXAMINATION
INTERGOVERNMENTAL RELATIONS
REPRESENTATIVES ON EXTERNAL BODIES
DISTRICT SOCIETIES
Induction Lecture for New ICAN Members 12
� A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest.
� In acting in the public interest, a professional accountant shall observe and professional accountant shall observe and comply with the Code of Ethics of the profession.
Induction Lecture for New ICAN Members 13
� The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that develops an internationally appropriate Code of Ethics for Professional Accountants (The Code).Professional Accountants (The Code).
� IFAC contributes to the development, adoption, and implementation of high-quality international ethics standards for accountants, primarily through its support of the IESBA.
Induction Lecture for New ICAN Members 14
� The Code contains three parts - Part A establishes the fundamental principles of professional ethics for professional accountants and provides the conceptual framework.framework.
� Parts B and C describe how the conceptual framework applies in certain situations. Part B applies to professional accountants in public practice. Part C applies to professional accountants in business.
Induction Lecture for New ICAN Members 15
� IntegrityIntegrityIntegrityIntegrityTo be straightforward and honest in all professional and business relationships.
� ObjectivityObjectivityObjectivityObjectivityNot to allow bias, conflict of interest or undue influence of others to override professional or business judgments.
� Professional Competence and Due CareProfessional Competence and Due CareProfessional Competence and Due CareProfessional Competence and Due CareTo maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and legislation and techniques and act diligently and in accordance with applicable technical and professional standards.
� ConfidentialityConfidentialityConfidentialityConfidentialityTo respect the confidentiality of information acquired as a result of professional and business relationships and, therefore, not disclose any such information to third parties without proper and specific authority, unless there is a legal or professional right or duty to disclose, nor use the information for the personal advantage of the professional accountant or third parties.
� Professional BehaviourProfessional BehaviourProfessional BehaviourProfessional BehaviourTo comply with relevant laws and regulations and avoid any action that discredits the profession.
Induction Lecture for New ICAN Members 16
� The circumstances in which professional accountants operate may create specific threats to compliance with fundamental principles.
� The Code establishes a conceptual framework that requires a professional accountant to identify, evaluate, and address threats to identify, evaluate, and address threats to compliance with the fundamental principles.
� The conceptual framework approach assists professional accountants in complying with the ethical requirements of this Code and meeting their responsibility to act in the public interest.
Induction Lecture for New ICAN Members 17
� Self-interest threat
� Self-review threat
�Advocacy threat�Advocacy threat
� Familiarity threat and
� Intimidation threat.
Induction Lecture for New ICAN Members 18
� Safeguards are actions or other measures that may eliminate threats or reduce them to an acceptable level, There are two types:
� Safeguards created by the profession, � Safeguards created by the profession, legislation or regulation; and
� Safeguards in the work environment.
Induction Lecture for New ICAN Members 19
� Rules of Professional Conduct for members exist
for all members and breach of any of the
regulations is subject to sanctions.
� The Institute is statutorily empowered to have an� The Institute is statutorily empowered to have anInvestigating Panel and Disciplinary Tribunal.
Induction Lecture for New ICAN Members 20
� Integrity
� Independence and Objectivity
� Confidentiality
� Conformity with Technical Standards
� Maintenance of Technical Competence – MCPE!,
MCPE!!, MCPE!!!;
� Scale of Professional Fees
21Induction Lecture for New ICAN
Members
Section 11(3) of the Institute’s Act provides for
the establishment of an Investigating Panel,
members of which shall be appointed by Council
and shall consist of two members of Council andand shall consist of two members of Council and
one Chartered Accountant who is not a member of
Council.
22Induction Lecture for New ICAN
Members
� The Act charges the Investigating Panel with the duties of:
� (a) conducting preliminary investigations into any casewhere it is alleged that a member has misbehaved in hiscapacity as an accountant or should for any other reasonbe the subject of proceedings before the Tribunal; and
� (b) deciding whether the case should be referred to theDisciplinary Tribunal.
� Therefore, whenever an allegation of professionalmisconduct is levelled against any member, the matter isreferred to the Panel for thorough investigation.
23Induction Lecture for New ICAN
Members
� Section 11(1) of the Act provides that “there shall be atribunal to be known as the Accountants’ DisciplinaryTribunal.
� The tribunal is charged with the duty of consideringand determining any case referred to it by the Paneland determining any case referred to it by the Paneland any other case which, the Tribunal hascognizance”.
� Arising from this, the Tribunal re-examines the casebefore taking any disciplinary measure against anerring member.
24Induction Lecture for New ICAN
Members
� The Tribunal consists of seven members of Council with the
President as the Chairman.
� The Tribunal has the power of a Federal High Court.
� Appeals on its decisions lie with the Court of Appeal and
thereafter to the Supreme Court.thereafter to the Supreme Court.
� The Institute’s enabling Act empowers Council to make rules
as to “acts, which constitute professional misconduct”.
� Bringing the name of the Institute or the Accountancy
Profession into disrepute.
25Induction Lecture for New ICAN
Members
� This is the general assembly of the Institute. It is
usually held once a year. In exceptional circumstances,
extra-ordinary general meeting are held.
� The AGM receives and considers the annual reports
and accounts of the Institute prepared by the Council.and accounts of the Institute prepared by the Council.
� Major decisions are usually taken here including
appointments of auditors, election of Council members,
special resolutions, etc.
26Induction Lecture for New ICAN
Members
� Why District Societies?� the opportunity for professional and social activities,� information about the Institute's activities to members
who are not often in touch with the Institute’s Secretariat,� assist potential accountants in their quest for membership
of the Instituteof the Institute
� project the image of the Institute in their immediatelocality.
The institute has district societies in most state capitals and principal cities in Nigeria, the United Kingdom, the United States of America and the Cameroun.
27Induction Lecture for New ICAN
Members
� At the Annual General Meetings, the Institute holds
elections for members desirous of serving in Council.
� The Registrar/Chief Executive who is Secretary to Council
is not elected but appointed by Council.
� Although, elections are held every year, the tenure for
elected council members is three years.elected council members is three years.
� At the expiration of his/her term, each Council member
must seek re-election.
� Election into the council is now done through the
Electronic voting system.
28Induction Lecture for New ICAN
Members
� Contestants for Council positions are not
expected to campaign or solicit for votes except
through the candidates’ profile displayed on
ICAN Website.
� An Ad-hoc Committee, called “The� An Ad-hoc Committee, called “The
Scrutineers” headed by a Past President, is
usually constituted to receive all election votes
under confidential cover.
� The results are released by the head of the
Scrutineers at the AGM
29Induction Lecture for New ICAN
Members
� ICAN Professional Examinations
� The Accounting Technicians’ Scheme
� Accredited Tertiary Institutions
� Recognised Tuition Centres� Recognised Tuition Centres
� Recognised Training Centres
� Mutual Cooperation Agreement With Tertiary
Institutions (MCTI)
30Induction Lecture for New ICAN
Members
� Faculties are centres of excellence, designed to equip
members with current developments in their specialist areas
and disciplines.
� Each member is expected to belong to at least one of the
following seven ICAN faculties but not more than three
depending on his areas of interest.depending on his areas of interest.
31Induction Lecture for New ICAN
Members
Audit, Audit, Audit, Audit, Investigations Investigations Investigations Investigations and Forensic and Forensic and Forensic and Forensic Accounting;Accounting;Accounting;Accounting;
Financial Financial Financial Financial ReportingReportingReportingReporting
Taxation and Taxation and Taxation and Taxation and Fiscal Policy Fiscal Policy Fiscal Policy Fiscal Policy ManagementManagementManagementManagement
Insolvency and Insolvency and Insolvency and Insolvency and Corporate ReCorporate ReCorporate ReCorporate Re----engineeringengineeringengineeringengineering
Public Finance Management
Information Technology and Consultancy
Corporate Finance Management
Free WeeklyFree WeeklyFree WeeklyFree Weeklyeeee----NewsletterNewsletterNewsletterNewsletter
ICAN on ICAN on ICAN on ICAN on TwitterTwitterTwitterTwitter
Members Members Members Members HandbookHandbookHandbookHandbook
Membership Membership Membership Membership Year BookYear BookYear BookYear Book
The Nigerian The Nigerian The Nigerian The Nigerian AccountantAccountantAccountantAccountant
ICAN Technical ICAN Technical ICAN Technical ICAN Technical Helpdesk/TechHelpdesk/TechHelpdesk/TechHelpdesk/Technical Bulletinsnical Bulletinsnical Bulletinsnical Bulletins
ICAN on ICAN on ICAN on ICAN on FacebookFacebookFacebookFacebook
RRRResearch esearch esearch esearch Journal of Journal of Journal of Journal of Accounting Accounting Accounting Accounting and Financeand Financeand Financeand Finance
ICANICANICANICAN Library Library Library Library FundFundFundFund
ACCOUNTING ACCOUNTING ACCOUNTING ACCOUNTING Standards and Standards and Standards and Standards and Exposure Exposure Exposure Exposure Drafts Drafts Drafts Drafts
32Induction Lecture for New ICAN
Members
Faculty Groups Faculty Groups Faculty Groups Faculty Groups on LinkedInon LinkedInon LinkedInon LinkedIn
ICAN on ICAN on ICAN on ICAN on LinkedInLinkedInLinkedInLinkedIn
Member Life Member Life Member Life Member Life InsuranceInsuranceInsuranceInsurance
ICANICANICANICANBenevolent Benevolent Benevolent Benevolent FundFundFundFund
Technology Technology Technology Technology Competence Competence Competence Competence Initiative, TCIInitiative, TCIInitiative, TCIInitiative, TCI
ICAN Libraries ICAN Libraries ICAN Libraries ICAN Libraries incl. Digital/Eincl. Digital/Eincl. Digital/Eincl. Digital/E----LibraryLibraryLibraryLibrary
Federal Federal Federal Federal Government Government Government Government Budget Budget Budget Budget SymposiumSymposiumSymposiumSymposium
ICAN ICAN ICAN ICAN CommissionCommissionCommissionCommissioned Research ed Research ed Research ed Research GrantsGrantsGrantsGrants
Endowment Endowment Endowment Endowment Initiatives in Initiatives in Initiatives in Initiatives in Tertiary Tertiary Tertiary Tertiary InstitutionsInstitutionsInstitutionsInstitutions
ICAN PhD CAN PhD CAN PhD CAN PhD Research Research Research Research GrantGrantGrantGrant
Young Members Young Members Young Members Young Members NetworkNetworkNetworkNetwork
ICAN Students’ ICAN Students’ ICAN Students’ ICAN Students’ NetworkNetworkNetworkNetwork
ICAN on Social MediaICAN on Social MediaICAN on Social MediaICAN on Social Media
Accounting ScholarsAccounting ScholarsAccounting ScholarsAccounting ScholarsLeadership WorkshopLeadership WorkshopLeadership WorkshopLeadership Workshop
Catch Them YoungCatch Them YoungCatch Them YoungCatch Them Young ICAN News ICAN News ICAN News ICAN News ––––OFFICIAL JOURNAL OFFICIAL JOURNAL OFFICIAL JOURNAL OFFICIAL JOURNAL FOR ICAN STUDENTSFOR ICAN STUDENTSFOR ICAN STUDENTSFOR ICAN STUDENTS
33Induction Lecture for New ICAN
Members
FOR ICAN STUDENTSFOR ICAN STUDENTSFOR ICAN STUDENTSFOR ICAN STUDENTS
ICAN Students ICAN Students ICAN Students ICAN Students Learning Materials Learning Materials Learning Materials Learning Materials ––––HARD &HARD &HARD &HARD & SOFT COPIESSOFT COPIESSOFT COPIESSOFT COPIES
High School High School High School High School Residency ProgramResidency ProgramResidency ProgramResidency Program
Students’ LibraryStudents’ LibraryStudents’ LibraryStudents’ Library
PATHFINDERSPATHFINDERSPATHFINDERSPATHFINDERS Students’ Special Students’ Special Students’ Special Students’ Special ProjectsProjectsProjectsProjects
� MEMBERS IN PUBLIC PRACTICE
� MEMBERS IN BUSINESS, INDUSTRY AND
GOVERNMENT (BIG)
� GUIDELINES FOR PUBLIC PRACTICE LICENSE� GUIDELINES FOR PUBLIC PRACTICE LICENSE
� SIGNING THE AUDIT REPORTS
� PRACTICE MONITORING
� FELLOWSHIP CONFERMENT
34Induction Lecture for New ICAN
Members
� Terrorism (Prevention) Bill, 2011 and the Money
Laundering (Prohibition) Bill, 2011 were signed into law
by the President. These repealed the 2004 and 2007 laws.
� The new Terrorism (Prevention) Act, 2011 establishes
measures for the prevention, prohibition and combating of
acts of terrorism and the financing of terrorism in Nigeria.acts of terrorism and the financing of terrorism in Nigeria.
� The Act also provides for the effective implementation of
the Convention on the Prevention and Combating of
Terrorism as well as the Convention on the Suppression of
the Financing of Terrorism, and prescribes penalties for the
violation of its provisions.
35Induction Lecture for New ICAN
Members
� The Money Laundering (Prohibition) Act, 2011
repeals the Money Laundering Act, 2004 and makes
comprehensive provisions to prohibit the financing
of terrorism, and the laundering of the proceeds ofof terrorism, and the laundering of the proceeds of
crime or illegal acts.
� It also expands the scope of supervisory and
regulatory authorities so as to address the challenges
faced in the implementation of the anti-money
laundering regime in Nigeria.
36Induction Lecture for New ICAN
Members
As you prepare to join the league of chartered accountants, you must resolve today to imbibe and continuously exhibit these virtues in and out of your work places.these virtues in and out of your work places.
Only by so doing can you hold out yourself as models to generations yet unborn.
37Induction Lecture for New ICAN
Members
38Induction Lecture for New ICAN
Members