Namibia Institute of Professional Accountants

NIPA’s membership consists of individuals who provide non-attest services and therefore, are not subject to an audit quality assurance (QA) review system. Registered auditors in the jurisdiction are subject to review by the Public Accountants’ and Auditors’ Board (PAAB). According to the Institute of Chartered Accountants of Namibia (ICAN)—the other PAO in the jurisdiction for chartered accountants that can provide attest functions—the PAAB conducts QA reviews in accordance with SMO 1 best practices.

NIPA indicates that it has developed a set of relevant quality control standards for its members in collaboration with ICAN that should be applied as a best practice. Practicing Members (NIPA PM) and Accredited Bookkeepers (NIPA AB) undergo an Practice Support Visit every five years during which members will be required to demonstrate professional competence that includes the performance of professional work, whether as a principal, employee, director or as an individual.

Twenty-seven practice visits were performed in 2021 and forty in 2022. NIPA plans to visit at least forty additional members in 2023. NIPA will assist where members are facing challenges as identified during the reviews. Reviews are linked to the investigative and disciplinary procedures.

As indicated above, NIPA members who provide non-attest services are currently not subject to Practice reviews unless they fall under membership with ICAN and if their work falls under the oversight of the PAAB. The AARA makes provision for Independent Practice Reviews to be performed by the PAO while AARA will regulate the PAO to demonstrate compliance of members.

NIPA provides training to its members on the importance and objectives of Quality Control and implementing and maintaining appropriate systems of quality control. NIPA also indicates that they will promote the Quality Assurance review processes and will host CPD events on ISQM in 2023.

IFAC encourages application of all SMO 1 components to the extent that they are relevant for NIPA’s procedures. NIPA should continue to report on educational activities around quality management standards and all other related revisions based on the newly issued ISA that are relevant for members.

Current Status: Review & Improve

Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join the Namibia Institute of Professional Accountants (NIPA) as a Practicing Member (NIPA PM); Accredited Bookkeepers; (NIPA AB); or Trainee Members and be subject to the institute’s rules and regulations, which include fulfillment of IPD and CPD. Other professionals—e.g., chartered accountants and registered auditors—must fulfill IPD and CPD requirements set by the Public Accountants’ and Auditors’ Board (PAAB) and the Institute of Chartered Accountants of Namibia (ICAN).

NIPA PMs must hold a bachelor’s degree in Accounting, complete at least four years of practical experience with a NIPA-accredited training center and subsequently demonstrate their ability to apply their academic and practical knowledge to an evaluation panel appointed by Council. NIPA ABs should have at least five years of practical experience in addition to some tertiary-level education. Candidates also need to demonstrate their ability to apply their academic and practical knowledge to an evaluation panel appointed by the Council. The institute notes that Namibian universities, such as the University of Namibia (UNAM) and Namibia University for Science and Technology (NUST), determine their own curricula for their degree programs. In July 2022, NIPA’s education committee began collaboration with two accredited universities to review the curricula as part of its endeavors to align with IES requirements. NIPA provided input to UNAM’s undergraduate curriculums that will be on offer as of 2024. In addition, UNAM has incorporated a semester to be counted as practical experience. NIPA and UNAM, together with a software supplier are considering an MOU to assist students in monitoring their practical experience. A representative from the universities sits on NIPA’s Education Committee. NIPA has committed to participate in the update of NUST’s curriculum when a review is ready. NIPA also supports the Ministry of Education and served on a panel review for 3 Post Graduate diplomas in 2022 (Management Accounting, Internal Control, and Financial Accounting).

NIPA states that for its IPD it uses the South African Institute of Professional Accountants (SAIPA) educational manual, accreditation framework, materials, practical experience logbook, and examinations, which all align with the latest IES requirements.

An electronic workbook was developed to assist with the monitoring and reporting of practical experience by trainees to Principals. Monitoring is done monthly, and feedback is given to the trainees. The logbook covers Financial Reporting, Financial Accounting, Management Accounting, Corporate Law, Ethics and Taxation. Trainees are expected to upload proof of evidence of their experience which are assessed by a monitoring officer. On completion of all the competencies in the logbook, the trainee is subject to a written assessment. The institute has set CPD requirements at 120 hours every three years and offers a mix of in-person and virtual CPD training to members throughout the year. During 2022, NIPA offered fifty hours of CPD training and as of May 2023, forty-seven hours of CPD has been allocated for 2023 for NIPA members.

NIPA has submitted an application for its recognition to be formally recognized in the jurisdiction and the application is currently under review. A further technical review is scheduled for June 2023, and it is expected that the application will undergo review by July or September 2023.

The IES Checklist and the Accountancy Education E-Tool developed by IFAC may be used to support NIPA’s conversations with regulators, education authorities, and tertiary institutions to continue the adoption of IES requirements and ensuring professionals have the competencies to serve the Namibian market.

Current Status: Review & Improve

Under the Public Accountants’ and Auditors’ Act 1951, the Public Accountants’ and Auditors’ Board (PAAB) is responsible for the adoption of auditing standards as the regulator of the auditing profession. In 2014, the PAAB officially delegated the responsibility of issuing guidance and standards related to audit and assurance services to by the Institute of Chartered Accountants of Namibia (ICAN). ICAN decided to adopt all ISA and pronouncements as issued by the IAASB. All IAASB pronouncements are adopted without modification, including effective dates.

NIPA’s membership consists of individuals who provide non-attest services and therefore, audit standard-setting and providing implementation support in this area is not NIPA’s priority. NIPA members who wish to provide audit services to the public and be a Registered Auditor with the PAAB must hold the designation of Chartered Accountant (CA(Nam) from ICAN, be a member of ICAN, and pass the PAAB’s additional requirements. This includes completing an Audit Development Program (ADP) before being able to register with the PAAB.

NIPA is a representative on and has engaged with ICAN’s Technical Committee to prepare members who wish to perform attestation services as prescribed under the amended Companies Act. NIPA in conjunction with ICAN developed a best practice guideline and working paper to be used by members when performing engagements. This document is now under review and a draft is expected to be published in July of 2023. This guideline is used together with Practice Support Visits to determine if members comply with the relevant requirements.

NIPA has included in its CPD program a three-part series on the current companies act and the possible amendments that are expected. The changes and the impact of the proposed changes will be discussed with members during Practice Support Visits. NIPA will begin to provide training and implementation support to its members on the objectives of Quality Control. NIPA also indicates that they will promote the Quality Assurance review processes and will host CPDs event on the quality management standards in 2023. NIPA indicates that they will collaborate with ICAN before any adoption and implementation activities. NIPA will continue to provide technical support via the Practice Support Group to members on the implementation of the quality assurance reviews. NIPA reports that the engagement standards and the documentations for SMPs issued by IFAC are shared among members providing non-attest functions.

Current Status: Sustain

Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join the Namibia Institute of Professional Accountants (NIPA) and be subject to the institute’s rules and regulations, which include ethical requirements. NIPA has a Code of Conduct which is issued and amended on an ongoing basis to align with the IESBA Code of Ethics; however, the Code was last reviewed in March 2020 and is aligned with the 2018 IESBA Code. NIPA’s Code of Conduct also addresses specific local issues. NIPA’s Board has not yet adopted the updated International Code of Ethics that came in effect December 2022.

NIPA states that it supports implementation of ethical requirements by providing CPD and other educational activities for its members, raising awareness on the applicable ethical requirements, and notifying members of new developments. NIPA reported plans to host several workshops in 2022 related to ethics covering professional conduct, work ethics and risks, ethical behavior, ethical leadership, and corporate bullying. NIPA participates in the international standard-setting process along with PAFA and ICAN to provide comments on exposure drafts and publishes the standards on its website for the benefit of its members.

NIPA’s Board has instructed the Subcommittee to review the latest International Code of Ethics to ensure that the NIPA Code of ethics is aligned with the latest version. This initiative is underway and is expected to be submitted for review in July 2023 with an expected approval date of September 2023.

In 2022, NIPA offered training on Professional Conduct: Ethical behavior, Ethical leadership, Ethical Professional Conduct, Work Ethics and Risks, and Corporate Bullying. In 2023, NIPA has offered a training on Professional Client relationships.

NIPA is encouraged to report when the latest Code is adopted. NIPA is recommended to continue indicating specific implementation support it has planned for members within its SMO Action Plan. This will mean continuing to hold seminars and focused training, and establishing a hotline for confidential questions, etc. Advocacy activities are also recommended to raise awareness of the profession, other stakeholders, and the general public about the importance of ethics.

Current Status: Execute

Public sector accounting standards are established by the State Finance Act of 1991 which are cash-basis. The Institute of Chartered Accountants of Namibia (ICAN) reports that certain public sector authorities have taken decisions to adopt IPSAS—e.g., the city council of Windhoek—but otherwise there is no known timeline for a jurisdictional-level adoption of IPSAS.

Previously, NIPA noted that its membership does not include any individuals working in the public sector and therefore, it is not involved in providing standard-setting or implementation support in this area. The institute was reconsidering its membership strategy to expand beyond the private sector and support the professionalization of government accounting offices.

Now, NIPA, in collaboration with educators developed an online platform to assist public sector accountants in training on IPSAS and has provided training to 69 accountants in regional offices to date. NIPA is working with the Auditor General and Accountant General’s office of the Republic of Namibia to become the African Professionalization Initiative (API) in-country learning partner. The API is a partnership between the accountancy profession, PAFA, accountants general (ESAAG), and supreme audit institutions from across Africa (AFROSAI-E). The initiative aims to provide the tools to support the professionalization of public sector accountants across the continent. The Auditor General, together with NIPA and the Accountant General, have, on behalf of the country submitted an expression of interested to join the API. The implementation of this initiative will begin pending the MoU being finalized between both parties. It is currently delayed due to a huge backlog with the Ministry of Justice.

Since August 2022, fourteen Namibian Public Sector employees participated in the piloting of the API Specialization Learning Program. The participants provide their feedback on their general experience on the learning content and the API learning platform. This is part of the API quality assurance process and allows the API to adjust and revise its Program before it is rolled out. NIPA had an interview with the Accountant General and thirty-nine Directors with good responses to support the implementation of the API program.

NIPA has in 2022 developed a twenty-week program that covers the IPSASs, including the transition to adopt IPSAS. It consists of presentations, activities, homework and solutions. Those taking it complete the program by completing an online assessment.

Considering that NIPA is looking to expand its membership to include public sector accountants and has taken steps to increase activities in this area, it is recommended to continue including any of these strategic plans within its SMO Action Plan. In addition, NIPA should continue to report on its role in terms of advocating for jurisdiction wide IPSAS adoption and engaging with public sector authorities on a roadmap for IPSAS adoption.

Current Status: Review & Improve

Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join the Namibia Institute of Professional Accountants (NIPA) and be subject to the institute’s rules and regulations, which include investigative and disciplinary procedures. NIPA reports that its procedures mostly align with the SMO 6 best practices, but improvements could be made to its investigative processes (i.e. members of the Investigation Committee being independent of the individual under investigation), administrative procedures, liaison with relevant external agencies, and regular review of the overall mechanism.

NIPA has indicated that at the end of December 2022, there was an action to review and update its policies contained in its Bylaws and Constitution to eliminate contradicting penalties and offences and include appeals procedures. NIPA also provides training to its members on its investigation and discipline procedures and consequences of non-compliance. NIPA plans to make recommendations for improvements by July 2023.

There are no laws or regulations that sets the legal foundation for an I&D system for NIPA Members, as it is a voluntary association. The Institute adopts its Rules of Professional conduct in addition to the International Code of Ethics for Professional Accountants. Where a conflict may exist between the IESBA Code and the Rules of Professional Conduct, the latter shall prevail if it does not violate the intention of the IESBA Code.

NIPA has a committee tasked with investigation of complaints and another that administers disciplinary actions. NIPA contracts attorneys on a case-by-case basis to support its I&D function. The I&D procedures formally become operational in 2018 and since then the institute has investigated five cases and sanctioned two members. The institute attributes this to the public being more aware that they can submit complaints to NIPA.

In 2019, NIPA investigated 6 cases, in comparison to 3 in 2020, 2 in 2021 and 4 in 2022. In 2023, 1 case is still outstanding.

It is expected that the AARA will enhance the role of the accredited PAOs. The AARA formulates and prescribe disciplinary rulings that will be applicable to accredited PAOs and their members. The AARA will require the accredited PAO to establish Investigation and Disciplinary Committees. The Investigation Committee must, in addition to assist and advise the Board, perform investigations of unprofessional conduct. The new legislation outlines the functions of the Disciplinary Committee and its members. NIPA has never provided training to members on I&D but will being to do so for members upon the implementation of the AARA.

I&D procedures that meet the SMO 6 benchmark are foundational to maintaining public trust and confidence in the profession. NIPA is advised to report on plans to address the gaps with the SMO 6 best practices, namely ensuring the independence of those on its Investigation Committee and indicate these plans in its SMO Action Plan.

Current Status: Execute

The Companies Act 2004 prescribes the preparation of financial statements for all companies in accordance with the Statements of General Accepted Accounting Practice (GAAP) established by the Institute of Chartered Accountants of Namibia (ICAN). Since 2005, ICAN reports that its Council has adopted all IFRS and all pronouncements as issued by the IASB, including the effective date. All listed entities on the Namibian Stock Exchange, subsidiaries of foreign holding companies, and public interest entities (PIEs) are required to apply full IFRS while all other companies may use IFRS for SMEs.

Although NIPA does not have any standard-setting authority in this area, its membership primarily contests of individuals who are providing accounting services and therefore, need implementation support. The institute provides training on the standards regularly throughout the calendar year. NIPA also notes that it participates in ICAN’s tax and technical committees.

NIPA reports that it is actively encouraging members to apply IFRS for SMEs in lieu of the local standard NAC001, which is becoming outdated. Since 2010, NIPA has provided training to its members through CPD on IFRS for SME. NIPA reports that it conducted three training sessions in 2022, which forms part of the compulsory CPD program. All applicable standards are posted on the website for the information and implementation by members. NIPA focuses on ensuring the proper implementation of the standards and provides guidance on the implementation for IFRS for SMEs to members via the Practice Support team. NIPA members have been actively receiving training since 2019 on topics related to IFRS for SMEs. Members and trainees who undertake training are provided complementary textbooks, and training is provided in group sessions utilizing case studies in the textbooks. Various trainings are held on an annual basis.

Current Status: Sustain