Chartered Accountant is an independent body and is completely approved by the Act to govern the practice of accounting in Nepal. The Nepal Chartered Accountants Act of 1997 established ICAN to enhance the social recognition and confidence of the general public in the accounting profession by raising public awareness of the value of the accounting profession, as well as the economic and social responsibilities of accountants, and to contribute to the country’s economic growth, control policy for list of CA firms in Nepal
Mission statement from ICAN
“ICAN to be recognized as a respected professional accounting body, providing leadership on standards, education,self-regulation in Nepal”, and also control the policy for CA college in Nepal.
In March 2018, ICAN launched its first chapter abroad in Australia.
Objectives of ICAN
- To play the role of the regulatory body to allow members to be within the boundaries of the code of ethics defined to make the accounting profession transparent.
- To provide accounting professionals with quality professional education in compliance with international standards and practice, in order to make the accounting profession respectable and effective.
- To develop, protect, and foster the accounting profession by making members and practicing accountants recognize the accountability of the accounting and accounting profession’s value.
- To help the process of economic growth by raising investors’ and the general public’s interest in the stock market by setting the level of disclosure in financial reporting practices.
- To assist the government with positive recommendations for the formulation and revision of finance, trade, accounting, tax, etc. legislation.
Eligibility for Membership
- For Registered Auditor (RA) Members:
Those who obtained a license prior to Asadh 32 2059 (16 July 2002) from the Office of the Auditor General (OAG) under the Auditor Act 2031 (1974) and who registered with the Institute before 2059 Paush 30 (14 January 2003) were granted the Institute’s Registered Auditor Membership.
With action from Shrawan 1, 2059 (July 17, 2002), the Auditors’ Act, 2031 (1974) was repealed and the Nepal Chartered Accountants (with amendment) Act, 1997 does not provide for further issue of RA Membership.
There are three types of Registered Auditor Members, namely: ‘B’, ‘C’ and ‘D’, and they are permitted to carry out an audit of the specified numbers.
- For a Chartered Member Accountant:
- The following are the requirements for authorizing membership to a Chartered Accountant:
- 2.1. All who have passed the Institute of Chartered Accountants of Nepal (ICAN) Chartered Accountancy Course:
- Passing Final Level Test.
- Completed three years of articles.
2.2. For those who have passed the Indian Institute of Chartered Accountants (ICAI) Chartered Accountancy Course:
- The applicant must havepassed education at the final level.
- Practical training must have been completed as prescribed by ICAI.
- The applicant must have a certificate of membership and a Certificate of Practice issued by ICAI.
A candidate who meets the above requirements is advised to register for membership and pass the ICAN Chartered Accountant Membership Test. For the study, there are three papers on Commercial Rules, Direct Taxes, and Indirect Taxes.
Membership Registration Disqualifications:
The following person is not considered eligible to be enrolled as a member of the Institute:
* One who has not reached twenty-one years of age.
*One who has become bankrupt being unable to pay creditors’ debts.
* One convicted of a criminal offense involving moral turpitude by the court.
* One who is of Unsound Mind and stands so adjudged by a Competent Court
The applicant is eligible for the COP Credential after having received the Membership Certificate. The applicant must apply for a properly completed Form No. along with the certificate of membership and the Institute’s relevant fee. COP will be issued to applicants after a thorough revision of the application and approved to carry out an accounting career in Nepal. According to the Institute of Chartered Accountants Act, 1997 and the legislation of the Institute of Chartered Accountants Act, practicing an accounting career without a legitimate COP is regarded as legal aggression and punishable.
For Fellow Chartered Accountant (FCA) Membership
A chartered accountant member with a Certificate of Practice with five years’ experience can apply for FCA membership and paying applicable fees.
Constitution of the Council of the Institute
Section 7 of the Nepal Chartered Accountants Act 1997 has provided for the constitution of the Council of the Institute following:-
*The Council of the Institute shall be responsible for the management of the Institute’s affairs and for discharging the duties delegated to it according to this Act.
*The Council shall be composed of the persons referred to below, namely:
* Ten individuals elected by the Institute’s chartered accountant members from among the Institute’s chartered accountant members
* Four individuals are chosen by the Institute’s Registered Auditor Members from among the Institute’s Registered Auditor Members
* Three candidates from the Government of Nepal.