THE
CHARTERED ACCOUNTANTS BILL, 2009
Memorandum
The purpose
of the Bill is to recast the Institute of Chartered Accountants Act, 1963 (Act
170) to make it reflect the changes that have taken place in the accountancy
profession and international accountancy practice since that Act was enacted
some forty-six years ago. Within this period a lot has happened in the area of
accountancy practice which requires changes to the Act. To effect these changes
by amendments, would require as many as sixteen substantive amendments of the
Act. This will change the character of the Act and make the use of the Act
difficult because the contents of the Act will be in two separate documents
with reference being made from one document to the other. To avoid this
situation, the Act has to be recast to make it more reader friendly and to
conform to contemporary accountancy practice. It is for this reason that this
Bill has been proposed for enactment. The Bill is divided into five subject
headings namely “Establishment and Management of the Institute”; “Public
practice of accountancy and register of accountants”; “Financial provisions”,
“Miscellaneous provisions” and “Repeals, transitional provisions and
commencement”. Under the heading of “Establishment and Management of the Institute,
clause 1 provides for the establishment of the Institute as a body corporate
with all the powers and rights of a body corporate including perpetual
succession and a common seal, the right to sue and be sued in the corporate
name and the right to hold movable and immovable property and to enter into
contract or other transaction. Clause 2 provides for the custody and use of the
common seal of the Institute. The objects of the Institute are provided for in
clause 3 and they include promoting the sound development of the accountancy
profession and accountancy practice so as to ensure the integrity of financial
management in the country. In clause 4, the functions of the Institute are
listed. These include the regulation of the practice of accountancy in the
country, certifying persons, who can practice as auditors; prescribing and
approving courses of study for the accountancy profession; conducting and
providing for the conduct of qualifying examinations for membership of the
Institute; and keeping; maintaining and publishing of a register of chartered
accountants and practicing accounting firms. Clause 5 provides for meetings of
the Institute which are to be held in accordance with the First Schedule to the
Act. Qualification for membership of the Institute is provided for in clause 6.
A person qualifies to be a member of the Institute if among other requirements;
the person is at least eighteen years old; of good character 2 and has passed
the qualifying examinations of the Institute and completed practical training
of a description and for a period specified by the Institute. The categories
and designations for members of the Institute are provided for in clause 7 and
clause 8 provides for restrictions on the use of titles conferred under the
Act. Clause 9 provides for the governing body of the Institute and its
composition. The governing body of the Institute is a Council of eleven
members. Provision is made for the tenure of members of the Council other than
the President and Vice-Presidents in clause 10 whilst clause 11 provides for
the tenure of the President and Vice-Presidents of the Council. Provisions
relating to meetings of the Council are to be found in clause 12 and in the
Second Schedule. A member of the Council who has an interest in a matter before
the Council is required to disclose the nature of the interest in writing and
not to participate in the discussion and decision on the matter, clause 13. The
Council is empowered to establish committees in clause 14. This clause also
provides for a disciplinary committee to be established. Clause 15 makes
provision for the payment of allowances to members of the Council and
committees of the Council, whilst clause 16 specifies the conditions under
which the allowances are to be paid. The Institute is required in clause 17 to
have its headquarters in Accra or some other location determined by the
Council. The Institute may also have regional and district offices as the
Council may determine. The position, required qualification and function of the
Chief Executive are provided for in clause 18. Provision is made for the
appointment of a secretary for the Council in clause 19 and the appointment of
other staff for the Institute is to be found in clause 20. Under the heading
“Public practice of accountancy and register of accountants”, clause 21
provides for the qualification required for public practice of accountancy. A
person is qualified to engage in the public practice of accountancy if that
person is a member of the Institute and is registered by the Institute to
engage in public practice of accountancy. The meaning of public practice of
accountancy is given in clause 22 and this clause provides for professional
misconduct as well. Clause 23 imposes restrictions on public practice of
accountancy. In clause 24 the Institute is required to publish a code of
professional conduct and ethics for members. Clause 25 imposes an obligation on
the Council to establish an accountancy review committee to among others
monitor compliance with accounting and auditing standards by members and review
the standard of practice of registered firms and members. The Institute is
required in clause 26 to keep and maintain a register of members and practicing
firms and publish the list of members and firms annually in the Gazette and at
least two newspapers with wide circulation in the country. 3 Clause 27 under
the heading “Financial provisions” requires the Council to establish and
maintain an Accountancy Fund into which moneys received for and on behalf of
the Institute are to be paid. The sources of money for the Fund are listed in
clause 28 whilst clause 29 provides for how the moneys from the Fund are to be
used. Payment of fees and levies by members of the Institute is provided for in
clause 30. In clause 31 the Institute is required to open bank accounts in a
reputable commercial bank and to maintain proper books of account and
accounting records. Provision is made for the election of the auditor of the
Institute in clause 32. Statutory audit of the annual accounts of the Institute,
audited financial statements, the auditor’s report and the annual report of the
Institute are all provided for in clause 31. Under the heading “Miscellaneous
Provisions”, clause 34 provides for the conditions under which a member’s name
would be struck off the register. Inquiry by the disciplinary committee is a
condition precedent to a name being struck off the register and this together
with the composition and procedure to be adopted by the committee are provided
for in clause 35 and the Fifth Schedule. The sanctions which can be recommended
by the disciplinary committee and the implementation of the sanctions are in
clauses 36 and 37 respectively while provision is made for appeal against
decisions of the disciplinary committee in clause. Clause 39 creates a general
offence in relation to contravention of the Act and clause 40 provides for
Regulations which are to be made under the Act as well as rules to be made and
procedures to be established under the Act. Interpretation, Repeals, and transitional
provisions are in clauses 41, 42 and 43.
HON. ALEX TETTEY-ENYO, M.P.
MINISTER RESPONSIBLE FOR EDUCATION
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