Namibia

The Companies Act 2004 governs the corporate financial reporting, accounting, and auditing requirements in Namibia. The Act prescribes the preparation of financial statements for all companies in accordance with the Statements of General Accepted Accounting Practice (GAAP) accepted and applied by the Institute of Chartered Accountants of Namibia (ICAN). In accordance with the Act, ICAN determines what constitutes General Accepted Accounting Practice in Namibia.

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. In February 2010, ICAN adopted IFRS for SMEs for Close Corporations and all other entities. Companies that are not required to apply full IFRS may use IFRS for SMEs.

According to the Companies Act 2004, all companies must have their accounts audited, except for interim financial statements, by auditors who are Chartered Accountants of ICAN and registered with the Public Accountants’ and Auditors’ Board (PAAB). Neither the Companies Act 2004 nor the Public Accountants’ and Auditors’ Act 1951 prescribe auditing standards to be applied in Namibia. The PAAB is legally responsible for adopting auditing standards but due to a lack of resources did not become operational until 2012. As such, in practice, the auditing standards issued by ICAN have been applied. In 2005, ICAN decided to adopt all ISA and pronouncements as issued by the IAASB. All IAASB pronouncements are adopted without modification, including effective dates. In 2014, the PAAB officially delegated the responsibility of issuing guidance and standards related to audit and assurance services to ICAN, providing the adopted standards with legal backing.

Professional accountants in Namibia may be subject to the regulation of Institute of Chartered Accountants of Namibia (ICAN) and/or the Namibia Institute of Professional Accountants (NIPA) depending on the type of services they offer. Registered auditors are further subject to the oversight of the Public Accountants’ and Auditors’ Board (PAAB).

Chartered Accountants and Registered Auditors

The PAAB was established by the Public Accountants’ and Auditors’ Act 1951 as amended in 1994 and has the legal responsibility for monitoring and maintaining the quality of the services provided by registered auditors. Under the Act, the PAAB’s functions are to: (i) regulate the registration and minimum requirements of public accountants and auditors through the accreditation of professional bodies; (ii) prescribe an appropriate framework for the education and training of properly qualified public accountants and auditors as well as their ongoing competence through monitoring continuous professional development; (iii) prescribe accounting and auditing standards which are internationally comparable; (iv) investigate and discipline (I&D) any registered auditor for improper conduct; (v) establish ethical requirements for auditors; (vi) maintain separate registers for trainee accountants, public accountants, and auditors; (vii) establish and implement a quality assurance review (QA) system for registered auditors; and (viii) take any actions which it may deem necessary to maintain and enhance the integrity and standards of professional qualifications of accountants and auditors.

Individuals 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 by being 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. As part of the ADP, individuals are required to complete practical experience requirements that consist of a minimum of 18 months in an audit and assurance environment and 1,500 productive hours in audit and assurance and submit a portfolio of evidence upon completing the ADP demonstrating competencies in the area of audit and assurance.

ICAN was formally constituted on October 20, 1990, by members of the South African Institute of Chartered Accountants who were residing in Namibia and were members of the Southwest African Chapter of the Cape Society of Chartered Accountants, originally formed in 1955. The objectives and responsibilities of ICAN are to: (i) promote the common interest of persons carrying on the accountancy profession throughout Namibia; (ii) adopt and promulgate accounting and auditing standards in the jurisdiction; (iii) implement initial professional development requirements of the PAAB; (iv) conduct all professional examinations; (v) maintain and publish a register of all members; (vi) establish continuing professional development and ethical requirements for its members; (vii) establish an investigative and disciplinary system for its members; and (viii) support the PAAB in the implementation of the quality assurance (QA) review system for registered auditors.

Since 2014, ICAN and the PAAB have established a partnership in which the PAAB is responsible for implementing QA reviews and determining practical experience requirements while ICAN is responsible for conducting examinations and setting auditing standards.

ICAN relies on its partnership with South African Institute of Chartered Accountants (SAICA) to execute education and training responsibilities. ICAN uses SAICA’s education and training requirements as a model for the CA(Nam) qualification. Candidates for CA(Nam) must have a university degree, a Certificate in Theory of Accounting (CTA) (a one-year post graduate course focused on accounting, auditing, tax, and financial management from a university accredited by the National Council of Higher Education), complete practical experience requirements with a PAAB-accredited training office, and pass ICAN’s qualifying examinations, which are SAICA’s qualifying examinations (the Initial Test of Competence (ITC) and the Assessment of Professional Competence (APC)). Beginning in 2019, the APC will be localized to reflect Namibian legislation.

SAICA assists with the accreditation of Namibian tertiary education institutions and marks and assesses the examinations on behalf of ICAN. The PAAB also adopted SAICA’s Training Regulations as the Namibian Training Regulations, stipulating that trainee accountants must obtain and present evidence of their competency in four core subject areas, Namibian income tax, and VAT. Registered training offices must comply with SAICA’s guidelines for accreditation of training offices and office inspection visits.

Additionally, given ICAN’s partnership and Mutual Recognition Agreement (MRA) with SAICA, it will also permit members in good standing of other professional bodies that have MRAs with SAICA to apply for ICAN membership.

Professional Accountants

Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join NIPA and be subject to the institute’s rules and regulations. NIPA, previously the Namibian Region of the South African Institute of Professional Accountants (SAIPA), was formally established in June 2007. Its constitution enables it to regulate the accounting profession in Namibia. NIPA’s responsibilities are to: (i) advance the accountancy profession and contribute to the development of the profession to provide high-quality services in the public interest; (ii) uphold and enforce a high standard of efficiency and professional conduct by all members; (iii) institute and implement investigative and disciplinary processes with penalties that include suspension of, or expulsion from, membership; (iv) provide continuous professional development (CPD) for members and ensure compliance with CPD requirements; (v) promote the application of internationally accepted accounting practice and standards; (vi) establish and accredit training programs or centers and as well as trainers in accountancy and to regulate such training schemes and centers.

NIPA offers the following designations to those who meet the initial professional development requirements established by the institute: Practicing Member (NIPA PM); Accredited Bookkeepers; (NIPA AB); and Trainee Members. NIPA PMs must hold a bachelor’s degree in Accounting, complete at least four years of practical experience with an 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 Council.

The Namibian Public Accountants and Auditors Board (PAAB) was established by the Public Accountants’ and Auditors’ Act 1951 as an independent audit oversight entity. It has the legal responsibility for monitoring and maintaining the quality of the services provided by Registered Accountants and Auditors (RAA). To practice publicly and offer audit and attest services as a RA, individuals must hold the designation of Chartered Accountants (CA(Nam) by being a member of the Institute of Chartered Accountants of Namibia (ICAN) and subsequently, pass PAAB’s additional requirements.

The responsibilities of the PAAB are to: (i) regulate the registration and minimum requirements of both CAs and RAAs through the accreditation of professional bodies; (ii) prescribe an appropriate framework for the education and training of properly qualified CAs and RAAs as well as their ongoing competence through monitoring Continuous Professional Development; (iii) prescribe accounting, auditing, and ethics standards which are internationally comparable; (iv) investigate alleged improper conduct by RAAs and issue disciplinary measures; (v) carry out quality assurance reviews of RAAs; and (vi) take steps it considers necessary to protect the public in their dealings with RAAs.

The PAAB is not a member of the International Forum of Independent Audit Regulators.

Institute of Chartered Accountants of Namibia (ICAN)

ICAN was formally constituted on October 20, 1990, by members of the South African Institute of Chartered Accountants who were residing in Namibia and were members of the Southwest African Chapter of the Cape Society of Chartered Accountants, originally formed in 1955. Membership of the institute is comprised of Chartered Accountants (CA(Nam). Any person who wishes to use the CA(Nam) designation must be a member of ICAN and if they wish to offer attest services to the public, must register with the Public Accountants’ and Auditors’ Board (PAAB). The objectives and responsibilities of ICAN are to: (i) promote the common interest of persons carrying on the accountancy profession throughout Namibia; (ii) adopt and promulgate accounting and auditing standards in the jurisdiction; (iii) implement initial professional development requirements of the PAAB; (iv) conduct all professional examinations; (v) maintain and publish a register of all members; (vi) establish continuing professional development and ethical requirements for its members; (vii) establish an investigative and disciplinary system for its members; and (viii) support the PAAB in the implementation of the quality assurance (QA) review system for registered auditors.

In addition to being a member of IFAC, ICAN is a founding member of the Pan African Federation of Accountants (PAFA).

Namibia Institute of Professional Accountants (NIPA)

NIPA, previously the Namibian Region of the South African Institute of Professional Accountants (SAIPA), was formally established in June 2007 and it is a member of PAFA. Its constitution enables it to regulate the accounting profession in Namibia. Individuals who perform non-attest functions, such as accounting, tax, and business consulting, may voluntarily join NIPA as a Practicing Member (NIPA PM); Accredited Bookkeepers; (NIPA AB); or Trainee Members and be subject to the institute’s rules and regulations.

NIPA’s responsibilities are to: (i) advance the accountancy profession and contribute to the development of the profession to provide high-quality services in the public interest; (ii) uphold and enforce a high standard of efficiency and professional conduct by all members; (iii) institute and implement investigative and disciplinary processes with penalties that include suspension of, or expulsion from, membership; (iv) provide continuous professional development (CPD) for members and ensure compliance with CPD requirements; (v) promote the application of internationally accepted accounting practice and standards; (vi) establish and accredit training programs or centers and as well as trainers in accountancy and to regulate such training schemes and centers.

NIPA is also a member of PAFA.

The Parliament of Namibia is expected to adopt a revised Accountants’ and Auditors’ Regulatory Authority of Namibia (AARA) bill. The objective of the AARA bill is to provide for accreditation of professional bodies to ensure that all registered persons belong to an accredited professional body. The bill will also provide for the registration of auditors, professional accountants, accounting technicians and firms and to require them to obtain certificates to practice before commencing public practice. The adoption of the bill will ensure the regulation of the audit and accounting professions to promote the protection of the public interest and the interests of entities.

The revised AARA bill will provide existence for the current Public Accountants and Auditor Board and continue as the Accountant and Auditor Regulatory Authority and provide for accreditation of professional bodies, including NIPA. The Bill defines the type of services rendered by the accounting profession as accounting services, taxation services, company statutory services, internal audit, advisory services, and forensic services.

NIPA and ICAN are expected to be accredited by the AARA as a PAO in the country by complying with the following minimum with the requirements prescribed by the Board for the education, training, and professional development, and the achievement of professional competence by its members.

In accordance with the Public Accountants’ and Auditors’ Act 1951, the Public Accountants’, and Auditors’ Board (PAAB) is legally responsible for establishing and implementing a quality assurance (QA) review system. However, the PAAB did not become operational until 2012. From 2010 to 2013, the Institute of Chartered Accountants of Namibia (ICAN) contracted Protect-a-Partner (Pty) Ltd (a South African enterprise specialising in QA Reviews) to carry out firm and engagements reviews under the supervision of ICAN’s Quality Assurance Committee (QAC).

Beginning in 2014, the PAAB re-assumed legal responsibility for conducting QA reviews as the legal regulator of the audit profession. ICAN provided the PAAB with ICAN’s methodology, all records of all ICAN QA reviews completed (firm and partner) and the planning for scheduled reviews. In 2015, the PAAB contracted Protect-a-Partner (Pty) Ltd to provide review services to the Board and established its own QA Committee.

ICAN reports that the PAAB-coordinated QA reviews commenced in February 2016.

ISQM 1 and 2 has been adopted. The QA methodology is being updated to comply with the latest standards. ICAN reports that the PAAB uses ICAN’s QA methodology and accordingly, the PAAB’s QA review system is aligned with SMO 1 best practices. NIPA is in the process of negotiating the training and the provision of an online hub for its members. NIPA indicates that they will collaborate with ICAN before adoption and implementation is considered.

Current Status: Adopted

The Public Accountants’ and Auditors’ Act 1951 stipulates that the Public Accountants’ and Auditors’ Board (PAAB) is legally responsible for establishing initial professional development (IPD) requirements for chartered accountants and registered auditors. In 2014, the PAAB assumed responsibility for determining practical experience requirements for chartered accountants while the Institute of Chartered Accountants of Namibia (ICAN) would conduct the qualifying examinations. Both PAAB and ICAN use the South African Institute of Chartered Accountants (SAICA) as a model for its IPD and continuing professional development (CPD) requirements.

ICAN’s education requirements and qualifying examinations, which are detailed in the

ICAN established a Training and Education Committee to oversee and monitor compliance with training regulations and membership requirements and established CPD requirements for its members which it indicates are in line with the revised IES.

In addition, 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.

NIPA’s IPD requirements include holding a bachelor’s in accounting, at least four years of practical experience, and a demonstration of candidates’ ability to apply their academic and practical knowledge to an evaluation panel appointed by Council. It has also set CPD requirements at 120 hours every three years. NIPA states that for its IPD it uses the South African Institute of Professional Accountants (SAIPA) educational manual, accreditation framework, materials, logbook, and examinations, which all aligns with the latest IES requirements.

For the IPD and Professional Evaluation assessments, NIPA has outsourced its education manuals, accreditation materials, logbook and assessments to a qualified group of lecturers from Namibian and South African universities to ensure that all materials align with the latest IES requirements.

Current Status: Adopted

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. From 2007 to 2012 no Board was appointed and from 2012 onwards, the appointed Board has been constrained by a lack of technical resources.

As such, in practice, the auditing standards adopted by the Institute of Chartered Accountants of Namibia (ICAN) have been applied. In 2005, ICAN decided to adopt all ISA and pronouncements as issued by the IAASB. All IAASB pronouncements are adopted without modification, including effective dates.

In 2014, the PAAB officially delegated the responsibility of issuing guidance and standards related to audit and assurance services to ICAN, providing legal backing to the adopted standards.

Current Status: Adopted

The Public Accountants’ and Auditors’ Act 1951 stipulates that the Public Accountants’ and Auditors’ Board (PAAB) is responsible for establishing ethical requirements for registered auditors. The PAAB has adopted the 2021 International Code of Ethics.

The Institute of Chartered Accountants of Namibia (ICAN) is authorized to adopt ethical requirements for its members. ICAN has adopted the latest Code of Ethics and confirmed that its Council’s policy decision that all pronouncements issued by the IESBA are adopted as and when issued.

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.

Current Status: Partially Adopted

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 ccertain 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.

Current Status: Not Adopted

Under the Public Accountants’ and Auditors’ Act 1951, the Public Accountants’ and Auditors’ Board (PAAB) is authorized to investigate and discipline (I&D) any registered auditor for improper conduct. The Institute of Chartered Accountants of Namibia (ICAN) reports that as of July 2012, the PAAB has established and operationalized an I&D system for registered auditors. It is unclear if the I&D system is in line with revised SMO 6 requirements; however, ICAN reports that the PAAB is in the process of reviewing its I&D system.

Additionally, ICAN has established I&D procedures for its members and reports its I&D system is operational and functioning; however, ICAN notes that with the establishment of the PAAB’s I&D system, complaints have been more frequently filed with the PAAB.

ICAN states that it revised its I&D procedures in 2012 to address the revised SMO 6 requirements and in 2015, moved its I&D procedures from the Constitution to the By-Laws to permit the Council to amend the procedures as necessary. ICAN has noted that an area requiring improvement is the composition of the Investigation and Disciplinary Committees as they are only comprised of members of the institute. It reports that the Council is reviewing this area.

Lastly, 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 related administrative processes, liaison with relevant external agencies, and regular review of the procedures. NIPA has indicated that it plans to make recommendations for improvement by July 2023.

Current Status: Partially Adopted

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. In February 2010, ICAN adopted IFRS for SMEs for Close Corporations. Companies that are not required to apply full IFRS may use IFRS for SMEs.

Current Status: Adopted

Relevant Organizations

• Namibia Institute of Professional Accountants (NIPA)
• Institute of Chartered Accountants of Namibia (ICAN)
• Namibia Financial Institutions Supervisory Authority (NAMIFSA)
• Public Accountants and Auditors’ Board (PAAB)

Relevant Legislation

• Banking Institutions Act 1998
• Companies Act 2004
• Namibia Financial Institutions Supervisory Authority Act 2001
• NIPA’s By-Laws
• NIPA’s Constitution
• NIPA’s Rules of Professional Conduct
• Public Accountants and Auditors Act 1951

Relevant Publications

• Brandt, Edgar, “New Public Accountants and Auditors Bill to strengthen PAAB,” in New Era Reporter, 20 Aug 2019.
• Deloitte & Touche, IASPlus website, Financial Reporting Framework in Namibia, n.d.
• ICAN, SMO Action Plan, March 2022.
• IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Namibia, 23 June 2017.
• “More accountants can help propel Namibia to new heights,” in New Era Reporter, 8 Aug 2017.
• NIPA, SMO Action Plan, TBD 2023.
• “Opinion: Public Accountants’ and Auditors’ Board: Inspiring confidence in Namibia’s audit profession,” in New Era Live, 28 Nov 2019.