The Senate has advanced a bill for the amendment of the Institute of Chartered Accountants of Nigeria (ICAN) Act, which seeks to increase the number of council members.
Sponsored by Senator Solomon Adeola representing Ogun West Senatorial District, the bill passed its second reading on Wednesday.
In his presentation, Senator Adeola highlighted the evolution of corporate governance in the accounting profession and the changing needs of chartered accountants, necessitating amendments to certain provisions of the ICAN Act.
Specifically, he proposed amendments to Sections 2, 3, and 6, as well as the insertion of new Sections 24 to 26.
One significant amendment is the proposal to increase the membership of the ICAN Council from its current structure of 25 members to 36 members.
This adjustment is deemed necessary due to the substantial growth in ICAN’s membership, which now stands at over 53,000.
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Moreover, the proposed amendments aim to align accounting practices in Nigeria with global standards and practices observed in other jurisdictions.
This includes provisions related to the collaboration between ICAN and other professional bodies and regulatory authorities, both domestically and internationally.
Additionally, the bill seeks to enhance ICAN’s capacity in areas of regulation, compliance, and enforcement.
Amendments to various sections of the Act are proposed to strengthen the institute’s regulatory powers and ensure professional integrity within the accounting profession.
Senator Adeola also emphasized the need for stricter sanctions for accounting malpractices, pointing out that the existing penalties under the Act are inadequate deterrents for offenses that could result in significant financial losses.
Overall, the amendments aim to modernize the legislative framework governing the accounting profession in Nigeria, expand ICAN’s structure, and enhance its regulatory capabilities to uphold professional standards and integrity.
