Institute of Chartered Accountants Ghana

With direct authority for quality assurance (QA) reviews in Ghana, ICAG developed a Quality Assurance Monitoring (QAM) system that is managed by an Audit Quality Monitoring (AQM) Department. Subsequently, ICAG signed a twinning agreement with the Institute of Chartered Accountants of England and Wales to receive support in training its QA reviewers. While this agreement ended in September 2018, ICAG indicates that it has built up the capacity of reviewers and practitioners extensively over the last two years and is seeking funding to further extend the partnership. ICAG has conducted full monitoring visits at 303firms, 387 initial assessments, and second full monitoring visits of 40 firms.

In 2022, ICAG was selected as the beneficiary of the IFAC PAO capacity building program funded by Gavi and The Global Fund. As part of the project, ICAG’s QA team will receive training on the requirements of the new quality management standards.

ICAG continues its ongoing efforts to raise awareness and educate its members about QA reviews and compliance with relevant standards. The QAM team organized workshops on the ISQM 1 and 2 and the revised ISA 220 for all practitioners. The QAM team will continue to have workshops on the new and revised standards as and when necessary to ensure that all firms understand, document, and implement the standards. ICAG assists members to improve audit quality using the results of the practice reviews for CPD programming and offers training on the QA review procedures.

ICAG is encouraged to continue to monitor and support the implementation of ISQM1 among members. Inspections of ISQM1 within firms may necessitate changes to ICAG’s QA review procedures. Implementation resources on the quality management standards are available on the IAASB website.

Current Status: Sustain

ICAG is responsible for setting the educational requirements for professional accountants in Ghana, which include completing a program of professional accountancy education, having three years of practical experience, and passing ICAG’s final examinations. ICAG works to ensure that programs are line with the latest IES requirements by continuously reviewing its curricula against new and revised IES.

With the support of the Institute of Chartered Accountants in England and Wales under the DFID-funded IFAC Capacity Building Program, in 2016 ICAG took significant steps to improve the accountancy education system in Ghana. The objective of the project was to bring Ghana’s professional accountancy education, training, and qualification in-line with the IES as demanded by an expanding economy. Components of the project included assisting ICAG to enhance its professional accountancy qualification examination system, as well as develop roadmaps to accredit educational institutions and training offices, tuition provided by the ICAG College, and the practical training and experience of newly qualified professional accountants.

Subsequently, in 2022, ICAG is a pilot participant in a project receiving funding from GAVI and Global Fund to update the existing syllabus and learning materials to meet current educational standards. PAFA is the implementing agency and ICAEW is the consultant. The capacity building program will also support the digitization of the ICAG’s professional qualification.

ICAG notes that a learning outcome approach and assessment criteria were taken into consideration and the ICAEW qualification was used as a benchmark. ICAG’s examination system has also been enhanced due to workshops and mentoring for ICAG staff on examination governance, preparation and administration (i.e., setting, moderating, and marking exams); a detailed manual on best practice in examinations processes; and a report on examination quality control procedures tailored to the national context.

Furthermore, ICAG has established a Partnership in Learning (PiL) scheme to accredit independent tuition providers that teach towards the ICAG qualifications. Tuition providers are registered with ICAG and ICAG will grade providers enabling the institute to assess, identify, and publicly recognize those providers that meet quality standards. To date, the institute as registered 59 PiLs. To improve the quality of teaching there is an accompanying program to train teachers of the tuition providers as well. The ICAG College—the tuition provider associated with ICAG—also received support to build its capacity by establishing it as a separate entity with an alternative governance regime and business plan.

Finally, through the project, ICAG has also established an Authorized Training Employers (ATE) scheme whereby ICAG can also accredit practical experience providers for candidates. Students must complete three years of practical experience. To practice auditing, qualified members must obtain a practicing license from ICAG that is to be renewed annually. Obtaining a practicing license requires four years of practical experience (of which three should be with an audit firm) and two years of post-qualification experience. The institute has been provided with a set of tools and templates that contain guidance on establishing training standards and student/member competencies, ongoing monitoring of progress, and communication to employers and students. This is intended to raise the quality of practical experience and increase the connectivity between ICAG and employers to maintain professional competencies. Under the ATE scheme, 35 employers have been registered.

The institute’s CPD requirements are 35 credits per year. The ICAG Education and Training Directorate monitors members’ compliance with CPD requirements and posts an annual CPD calendar on its website. Noncompliance with the CPD requirements result in suspension of membership.

Finally, ICAG states that it actively promotes compliance with IES to the National Council for Tertiary Education and the National Board for Technical Education which set standards for universities. Consequently, ICAG has also signed MoUs with six universities to ensure that their accountancy courses comply with IES. Subsequently, it has established a committee that is responsible for monitoring the implementation of the MoUs to ensure that universities do comply with ICAG’s expectations for IPD requirements.

ICAG has made significant progress in enhancing its fulfillment of SMO 2 and meeting the latest IES requirements. As it progresses with the implementation of new schemes to support the quality of educational programming, it should provide IFAC with updated information and developments. It is encouraged to participate where relevant in sharing its perspective and experiences in implementing national accountancy education requirements that meet the revised IES as part of IFAC’s new approach to accountancy education. The IES self- assessment checklist and the Accountancy Education E-Tool developed by IFAC may be used to conduct an assessment and to consider available implementation support materials.

Current Status: Sustain

Under the Companies Act, 2019, (Act 992), the Institute of Chartered Accountants (Ghana) (ICAG) is responsible for adopting auditing standards in Ghana. The institute has established a process to adopt ISA as the standards are issued by the IAASB and focuses its efforts on assisting its members with the implementation of the standards.

ICAG indicates that it: (i) monitors new and amended standards issued by the IAASB; (ii) collaborates with the National Council for Tertiary Education and the National Board for Technical Education to promote the inclusion of ISA in universities’ syllabi; and (iii) disseminates information on updates to the standards and international developments through printed materials, the ICAG newsletter, and journal. Recent engagement with National Accreditation Board (NAB) now Ghana Tertiary Education Commission (GTEC), has resulted in GTEC agreeing to have a member of ICAG sit on their Accreditation Committee.

ICAG organizes seminars for members on the application of ISA, ISQM, ISREs, ISAEs, and ISRSs, includes courses on ISA and other pronouncements in their syllabus and CPD programs. Implementation of the standards is monitored through ICAG’s Quality Assurance Monitoring unit.

Lastly, ICAG contributes to the standard-setting process and activities of the IAASB by reviewing and providing comments on exposure drafts.

Current Status: Sustain

ICAG, which has direct responsibility for adopting ethical requirements for its members, states that is has adopted the IESBA Code of Ethics and adopts any revisions on an ongoing basis. The 2022 International Code of Ethics is therefore applicable in the jurisdiction.

With the launch of its latest syllabi, ICAG states that it has integrated ethics into many of the subjects in its curricula and examination to ensure that candidates understand their ethical obligations as a professional accountant. All newly admitted members are required to complete an ethics training program as part of pursuing the Chartered Accountant (CA) or Practicing Accountant (PA) designation qualifications offered by ICAG. The program includes interactive case studies, scenarios and self-test questions that are designed to develop professional ethics.

Once individuals are members of ICAG, they are required to remain up to date on professional ethics topics. This is reinforced in members’ continuing professional development (CPD) returns in which they must confirm they have read the Code of Ethics. ICAG offers continuing professional development training and workshops on the Code Ethics. ICAG has also disciplined members and students who fall below ethical standards, including revoking the membership of members and students.

Lastly, ICAG contributes to the standard-setting process and activities of the IESBA by reviewing and providing comments on exposure drafts.

Current Status: Sustain

In 2014, the Ministry of Finance approved the adoption of accrual-basis IPSAS upon the recommendation of the Institute of Chartered Accountants (Ghana) (ICAG) and the Controller and Accountant General’s Department.

The challenge now lies in implementation. ICAG plays a leading role in supporting the implementation of IPSAS in collaboration with the Ministry of Finance.

As part of this collaboration, ICAG has supported the MoF in the creation of a Working Group to establish a strategic roadmap for the implementation of IPSAS. Previously, the deadline for implementation of the standards was in 2019 but this was not feasible due to resource constraints. Considering new funding from the Swiss government, ICAG reports that that the roadmap has been re-launched and new goal for complete implementation is 2023; however, the 2022 Annual Whole-of-Government Accounts was prepared on Accruals Basis of accounting in line with Regulation 208 of the PFM Regulations 2019 (L.I. 2378) and IPSAS.

ICAG will have a significant role as a training and technical advisor in this area as outlined by the work plan created with the Ministry of Finance and Controller & Accountant General:

• The development and roll out of IPSAS certification program and activities involved;
• The development and roll out of IPSAS based CPDs and training sessions;
• The provision of learning resources on IPSAS on ICAG’s website;
• The provision of quality assurance support to the team of Consultants engaged by the Controller and Accountant General (CAG) to work on IPSAS adoption and implementation;
• The provision of monitoring and evaluation support to the CAG to ensure that risks that are likely to derail successful implementation of IPSAS, independently identified by ICAG are brought to the attention of the CAG; and.
• The provision of advocacy on the benefits of IPSAS adoption and implementation to civil society organizations, donors and the general Ghanaian public and the activities involved.

Presently, ICAG indicates that it includes IPSAS in its syllabus for qualifying examinations and promotes IPSAS inclusion in the universities’ accountancy syllabi. The institute also supports its members by organizing seminars explaining the requirements and use of IPSAS, communicating any revisions to IPSAS, and providing copies of the IPSAS Handbook to members.

Starting in 2022, ICAG is a pilot participant of a capacity building project funded by Gavi and The Global Fund that supports the development of public sector syllabus and learning materials to enable training of public sector accountants.

Lastly, ICAG is active in participating in the international standard-setting process by providing comments on exposure drafts published by IPSASB.

Current Status: Sustain

The ICAG is responsible for establishing an investigation and discipline (I&D) system for its members in accordance with the Chartered Accountants Act 1963, as amended in 2020. The institute has established a Professional Standards and Ethics Committee (PSEC) to investigate any cases and created a Legal Unit to address complaints from the public. A separate disciplinary committee will be constituted if the investigation warrants disciplinary action. ICAG indicates that it continuously evaluates the independence of panel members and maintains records of cases and publishes cases when necessary. Results of proceedings are available in its member and student journals, the ICAG website, and by other regulators when appropriate.

Prior to 2020, ICAG conducted a self-assessment of its I&D system against the revised SMO 6 requirements and noted gaps that were primarily due to legal constraints. ICAG proposed revisions to the 1963 Act, which were enacted by Parliament in 2020, that enabled ICAG to better meet the SMO 6 requirements. The revisions provide legal backing to ICAG-issued sanctions and allow for the establishment of an independent disciplinary board comprising mostly non-practitioners, setting a timeframe for handling cases and producing a report; and tracking statuses of cases – which were all previously identified as areas for improvement.

The institute holds seminars to increase its members’ and the public’s awareness of the I&D mechanisms. ICAG also disseminates information in its quarterly journal, The Professional Accountant, and other publications, and provides guidance notes to members about I&D processes.

Current Status: Sustain

The Companies Act, 2019, (Act 992) governs the corporate financial reporting, accounting, and auditing requirements in Ghana. The Act outlines the preparation and publication of financial statements and provides legal backing to the standards that have been issued by the Institute of Chartered Accountants (Ghana) (ICAG), which are the IFRS and IFRS for SMEs.

To support implementation, ICAG has organized seminars and continuing professional development courses to educate members on the application of IFRS and IFRS for SMEs and distributes copies of IFRS for SMEs to its members. It also offers a post-diploma specialization course on IFRS.

Lastly, ICAG contributes to the standard-setting process and activities of the IASB by reviewing and providing comments on exposure drafts.

Current Status: Sustain