Ghana

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).

In 2007, the ICAG adopted IFRS as the accounting standards required for the preparation of financial statements of all government business enterprises, banks, insurance companies, securities brokers, pension funds, and public utilities. In 2010, the institute adopted IFRS for SMEs, with the mandatory use of those standards becoming effective beginning in 2015. In 2013, A Guide for Micro-sized Entities Applying the IFRS for SMEs was issued for micro-entities. It is a not a separate standard but includes only those requirements of IFRS for SMEs that are likely to be necessary for a typical micro-entity. Other entities are permitted to use either full IFRS or IFRS for SMEs.

The Companies Act, 2019, (Act 992) stipulates that all companies registered under the law, regardless of size or public interest level, must be audited by auditors registered with ICAG and must file audited financial statements with the Registrar of Companies. Under the Companies Act, 2019, (Act 992), ICAG is also the auditing standard setter in Ghana, and adopted ISA as issued by the IAASB.

The Bank of Ghana, the National Insurance Commission (NIC) and the Securities and Exchange Commission (SEC) stipulate additional regulations for entities under their supervision in line with the Banks and Specialised Deposits-Taking Institutions Act, 2016 (Act 918), the Insurance Act 2006 (Act 724), and the Securities Industry Act 2016, (Act 929, and the Securities and Exchange Commission (SEC) Regulations, 2003 (L.I.1728), respectively. Regulations issued by these agencies all maintain that relevant companies must apply IFRS when preparing their financial statements and be audited in accordance with ISA.

The Chartered Accountants Act (Act 170) 1963, as amended by the Institute of Chartered Accountants Act, 2020, Act 1058, (referred to as Act 1058) establishes the Institute of Chartered Accountants (Ghana) (ICAG) with a mandate to regulate the accountancy profession. Chartered Accountants (CA) and Practicing Accountants (PA) are regulated by ICAG through mandatory membership. ICAG also offers the Accounting Technician Scheme, West Africa’s program (ATSWA). As part of the Association of Accountancy Bodies in West Africa, the ATSWA qualification is regionally recognized. In Ghana, successful completion of the ATSWA program enables individuals to take on middle-level managerial jobs and can serve as an introduction to the CA Program.

ICAG’s responsibilities include: (i) setting accounting and auditing standards; (ii) maintaining and publishing a register of chartered accountants and practicing accountants; (iii) issuing and renewing licenses for qualified members to practice accountancy; (iv) setting and monitoring compliance with initial professional development and continuing professional development requirements for its members; (v) setting ethical requirements for its members; (vi) investigating and disciplining members for breach of rules and other professional standards; (vii) monitoring conduct and performance of members, including quality assurance reviews; and (viii) setting public sector accounting standards.

To receive the designation of CA, individuals must complete a program of professional accountancy education, have three years of practical experience, pass ICAG’s final examinations, and subsequently join ICAG.

The Institute’s Education and Training Committee is responsible for determining the curricula and syllabus for its professional qualifications and conducting the qualifying examinations. The National Council for Tertiary Education (NCTE) now known as Ghana Tertiary Education Commission (GTEC) and the National Board for Professional and Technician Examinations (NABPTEX) set education standards for universities, which are responsible for delivering part of the qualifying education programs leading up to taking ICAG’s examination.

To use the designation of PA and practice auditing, CAs must obtain a practicing license from ICAG, which must 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. Under the Companies Act, 2019, (Act 992), all audits must be conducted by a Practicing Accountant registered and licensed by ICAG.

In addition, in line with the Insurance Act 2006 (Act 724), the National Insurance Commission approves auditors providing services for entities under its supervision; and under the Banks and Specialised Deposits-Taking Institutions Act, 2016 (Act 918), the Bank of Ghana (BoG) requires banks to rotate audit firms every six years. The BoG may not approve auditors appointed at an annual general meeting if the auditors do not meet the relevant criteria.

There are two independent supervisory and monitoring authorities set up by the Institute of Chartered Accountants Act, 2020. Act 1058. They are the Public Accountancy Supervisory Committee (PASC) and Accountancy Practice Review Committee (APRC). Although members of these committees are appointed by the Council of the Institute, they are independent regulatory arm of the Accountancy profession in Ghana. Auditors are therefore, regulated by the Institute of Chartered Accountants (Ghana) (ICAG) in accordance with the Institute of Chartered Accountants Act, 2020, Act 1058 which mandates the committees to operate independently from the Institute. ICAG’s mandates are outlined in the Regulation section.

The Institute of Chartered Accountants (Ghana) (ICAG)

ICAG was established by the Chartered Accountants Act (Act 170) 1963, as amended by Act 1058. ICAG’s membership comprises Chartered Accountants (CA) and Practicing Accountants (PA). Membership in ICAG is mandatory to use those designations. ICAG’s responsibilities include: (i) setting accounting and auditing standards; (ii) maintaining and publishing a register of CAs and PAs; (iii) issuing and renewing licenses for qualified members to practice accountancy; (iv) setting and monitoring compliance with initial professional development and continuing professional development requirements; (v) setting ethical requirements for its members; (vi) investigating and disciplining members for breach of rules and other professional standards; (vii) monitoring conduct and performance of members, including quality assurance reviews; and (viii) setting public sector accounting standards.

In addition to being a member of IFAC, ICAG is a member of the Association of Accountancy Bodies in West Africa, and the Pan African Federation of Accountants.

• In 2015, the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants (Ghana) (ICAG) partnered to strengthen Ghana’s accountancy education, training, and qualification examination system through a Department for International Development-funded IFAC PAO capacity building project. ICAEW operates a project to assist ICAG in enhancing its professional accountancy qualification examination system, as well as develop roadmaps to enhancing accreditation of educational institutions and training offices, tuition provided by the ICAG College, and the practical training and experience of newly qualified professional accountants. The project has helped ICAG develop its reach, influence, and capacity to fully support Ghana’s continued economic development. Please see the SMO 2 note on ICAG’s profile for further information.
• In 2022, ICAG was selected as a pilot project for the implementation of the memorandum of understanding (MoU) between IFAC, Gavi, and The Global Fund. The pilot project aims to build the sustainability, relevance and credibility of ICAG by ensuring that the PAO can deliver services & trainings to its stakeholders and members. The project will support the update of the professional qualification syllabus, the development of public sector syllabus and learning materials to enable training of public sector accountants, and the training of ICAG quality assurance monitoring unit on the requirements of the new quality management standards. The project will also support the digitalization of ICAG professional qualification.

In accordance with the Chartered Accountants Act 1963, as amended by Act 1058, the Institute of Chartered Accountants (Ghana) (ICAG) is responsible for conducting quality assurance (QA) reviews of statutory audits and adoption of relevant standards. In 2008, ICAG developed a Quality Assurance Monitoring (QAM) system that is managed by its Audit Quality Monitoring (AQM) Department. Its scope includes all statutory audits. ICAG has also adopted ISQM 1, 2, and ISA 220 (revised).

The QAM system became operational in 2012 after 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 and seeking funding to further extend the partnership. ICAG has conducted full monitoring visits at 224 firms.

ICAG proposed revisions to the 1963 Act which were enacted by Parliament in 2020. These revisions allow for the establishment of an independent practice review board. ICAG’s QAM department reports to this board to ensure independence in the QA review process and maintain high-quality audit.

ICAG has conducted a self-assessment of its QA review system against the SMO 1 requirements and reports that its QA system meets these requirements.

Current Status: Adopted

The Chartered Accountants Act 1963, as amended in 2020, empowers the Institute of Chartered Accountants (Ghana) (ICAG) as the entity responsible to set initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants—i.e., individuals who hold the designation of Chartered Accountant and/or Practicing Accountant. These include completing a program of professional accountancy education, having three years of practical experience, and passing ICAG’s final examinations.

The Institute’s Education and Training Committee is responsible for determining the curricula and syllabus for its professional qualifications and conducting the qualifying examinations. The National Council for Tertiary Education and the National Board for Technical Education are responsible for setting education standards for universities that are part of the qualifying education programs leading up to taking ICAG’s examination.

ICAG works to ensure that programs are line with the latest IES requirements by continuously reviewing its curricula against new and revised IES and has signed Memorandums of Understanding (MoUs) with universities to monitor their programming. With the support of the Institute of Chartered Accountants in England and Wales under the DFID-funded IFAC Capacity Building Program, ICAG has taken significant steps to improve the accountancy education system in Ghana and meet the revised IES requirements for IPD training.

The institute has set CPD requirements at 35 hours per year.

Additionally, ICAG also offers the Accounting Technician Scheme, West Africa’s program (ATSWA). As part of the Association of Accountancy Bodies in West Africa, the ATSWA qualification is regionally recognized. In Ghana, successful completion of the ATSWA program enables individuals to take on middle-level managerial jobs and can serve as an introduction to the CA Program. Accounting Technicians do join ICAG after completing the examination and therefore are subject to the institute’s CPD obligations.

Current Status: Adopted

Under the Companies Act, 2019, (Act 992), the Institute of Chartered Accountants (Ghana) (ICAG) is responsible for adopting auditing standards in Ghana and has adopted ISA as issued by the IAASB.

ICAG’s Technical and Research Committee advises the ICAG Council on all revisions to the standards to ensure that they are adopted in accordance with their effective date.

Current Status: Adopted

The Institute of Chartered Accountants (Ghana) (ICAG) is responsible for adopting ethical requirements for all professional accountants in accordance with the Chartered Accountants Act 1963, as amended in 2020. ICAG has adopted the IESBA Code of Ethics as issued by IESBA and incorporates revisions on an ongoing basis as they become effective. The 2022 International Code of Ethics is therefore applicable in the jurisdiction.

Current Status: Adopted

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.

ICAG has supported the Ministry of Finance in the creation of a Working Group to establish a strategic roadmap for the implementation of IPSAS. The 2022 Annual Whole-of-Government Accounts was prepared on an accrual-basis in line with Regulation 208 of the PFM Regulations 2019 (L.I. 2378) and International Public Sector Accounting Standards (IPSAS).

Current Status: Adopted

The Institute of Chartered Accountants (Ghana) (ICAG) is responsible for establishing an investigation and discipline (I&D) system for all professional accountants 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. 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.

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.

Current Status: Adopted

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).

In 2007, the ICAG adopted IFRS as the accounting standards required for the preparation of financial statements of all companies whose securities trade in a public market. IFRS are also required for the financial statements of all government business enterprises, banks, insurance companies, securities brokers, pension funds, and public utilities. In January 2012, IFRS for SMEs was officially adopted effective 2015.

Current Status: Adopted

Relevant Organizations

Association of Accountancy Bodies of West Africa (ABWA)

Bank of Ghana (BoG)

Institute of Chartered Accountants (Ghana) (ICAG)

National Insurance Commission (NIC)

Relevant Legislation

Banks and Specialised Deposits-Taking Institutions Act, 2016 (Act 918)

Chartered Accountants Act 1963, as amended by Act 1058

Companies Act, 2019, (Act 992)

Ghana National Accounting Standards

Insurance Act 2006 (Act 724)

Securities Industry Act 2016

Relevant Publications

Adzroe, Grace. An Overview of PFM Reforms in Ghana, May 2015.

Audrey Grey, Ghana’s New Companies Act Passed, September 2019.

Ghana Business News, Ghana Parliament Passes Companies Bill; State Interest and Governance Accountability Law, May 8, 2019

ICAG, SMO Action Plan, 2023.

IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Ghana, June 16, 2016

IFRS Foundation, A Guide for Micro-sized Entities Applying the IFRS for SMEs (2009), June 2013

National Insurance Commission, Guidelines to Insurance Industry on External Auditors, July 2016.

Public Finance Focus, Ghana Confirms Five-Year IPSAS Implementation Programme, October 28, 2014

World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing: Ghana, 2004.

World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing: Ghana, 2014.