Mr Kehinde ‘Sesan Adebayo, FCA is a chartered accountant of the prestigious Institute of Chartered Accountants of Nigeria – ICAN; an astute professional of note with almost two decades’ experience without a break. He talked on different professional details in this exclusive interview with matterMATTERS247.
The Term Accounting and Accountancy
Universities use the term accounting as seems to be conscious of the fact that it is a continuous process while Polytechnics use accountancy. Hence, one may need to do a post graduate diploma in accounting or some relevant courses before proceeding for Master as an HND holder.
Accounting as related to financial analysis
There are always groups of data that you can produce several reports from. As a financial analyst, you must be able to sort, categorise and analyse into various reports – weekly financial report; weekly expenditure report; weekly imprest report; weekly income report; etc. All these put together will be worked on by an analyst to come about some required inferences which are usable for financial development of a company.
Accounting Professional/Regulatory bodies in Nigeria and the International World
In the context of Nigeria, there are two major regulatory bodies – Institute of Chartered Accountants of Nigeria (ICAN) which was Chartered in 1965 and Association of National Accountants of Nigeria (ANAN) which was founded on the 1st of January, 1979 and chartered August,1993. ANAN, like the name suggested, is an association, so it includes people already working in companies, industries, government parastatals, etc while ICAN is more of a professional institution which members could be independent of any organisation and at the same time could come from different establishments. ICAN is all-including regulatory body of accountants. They both regulate the institution of Accounting in Nigeria on different grounds.
In recent time, the international Financial Institution mandated ICAN to mentor ANAN in Nigeria, thus any attestation needed by ANAN cannot be acknowledged or approved internationally without going through some accreditations from ICAN; so ICAN has since then taken up the responsibility of mentoring them. Had ICAN refused legally, they might still have been given a free hand of operation to have their way internationally independent of ICAN mentorship or accreditation. When you are qualified as an ICAN chartered accountant in Nigeria, you can practise on your own as a professional private auditing firm but such has not been established in case of ANAN members. Moreover, presently in Nigeria, the signing of financial statements is a statutory responsibility of ICAN members; ANAN people have not started signing such statements. It is required of every limited liability company to prepare its financial account annually which an external auditor must certify and such external auditor must be a registered chartered accounting firm from ICAN. It is until this account is certified by an external auditor before it is tenable officially in any institution such as Nigerian Stock Exchange and for the purpose of any government requisition, especially for taxation.
Having given reasons for the co-existence of both ICAN and ANAN as accounting professional bodies in Nigeria; it will suffice to say that such is obtainable globally and more peculiarity of ICAN in this regard is its affiliation with the Associates of Certified Chartered Accountants of the UK (ACCA). ACCA was the one chartering Nigerian accountants before 1965 when ICAN was chartered. Presently when you are chartered by ACCA, you just get inducted into ICAN in Nigeria with your membership number.
However such person will need to take some courses of ICAN before induction, reasons being that there are some disparities between Nigeria’s system and the UK’s or/and diversities of the countries’ constitutions. So, the induction is not automatic as it was in those days before ICAN was chartered. The public sector system in Nigeria is different from the UK’s; legal system or business law in Nigeria is different from that of the UK. So, courses are taken in these three major areas before any ACCA chartered is qualified to be inducted as ICAN member. Though some are working with ACCA without being inducted, and so they are not members of ICAN.
Professional qualifying examinations and Prerequisites
The mandatory prerequisites to commence ICAN examinations at professional level are University’s degrees or the Higher National Diplomas of recognised Polytechnics or other institutions of the same status or equivalent qualifications. Anyone with any of these certificates is qualified to start at Skill level (the olden days’ professional 2) before proceeding to professional level which is the final at successful completion of the skill level. In the good wisdom of the management, ICAN has broken down the process because of some unprivileged students who for one reason or the other could not go to university or any conventional institution but brilliant and are passionately interested in accounting. This set of people can start at ATS level (Accounting Technician Scheme) which is run by Association of Accountancy Bodies in West Africa (ABWA). With your 5 o’level credits which must include English and Mathematics at maximum of two sittings, you can register as a student member and therewith start your ATS courses. ATS is of three stages with four courses per stage and successful completion of the three stages qualifies one to be at par with a graduate; but instead of starting at skill level, the person starts from intermediate level and on to skill level from where he proceeds to the final level which is the professional level and by that becomes a respected chartered accountant yet without a university degree or others. Other advantage at the disposal of ATS graduates is that they can use their final certificate to gain direct entry admission into universities at part 2 or even part 3 in some universities. Even some who are already chartered can be offered with direct entry admission into 300 level by some universities if they so desire to fill the gap of university education in their career.
This may interest those who want to start from scratch, I mean from ATS stages, they have greater advantage over those graduates who start from the professional stuff because they must have acquired enough knowledge in the process which definitely must have broadened their professional horizons than those who are just coming in with university degree at skill level. In progression of accounting professional career, Associate Chartered Accountant (ACA) is qualified to become a Fellow Chartered Accountant (FCA) after 10 years of consistent practice in accounting firms. Moreover, some other entry qualifications are also approved by ICAN and ATSWA; some of these qualifications or certificates are: The final examination of the Institute of Chartered Secretaries and Administrators; The final examination of the former Corporation of Secretaries; The final examination of the Association of International Accountants; The final examination of the Chartered Institute of Bankers of Nigeria; The final examination of the Chartered Institute of Stockbrokers; The final examination of the Chartered Institute of Taxation of Nigeria; The final examination of the Association of Accounting Technicians, U.K.; The final examination of the Association of National Accountants of Nigeria (ANAN); and Executive Management Accountancy (Federal Treasury Training
School, Stage III).
Career/Business Prospects in accounting fields
No single organisation can do without an accountant. For instance, when somebody finishes from secondary school with good result in principles of Account, a firm can employ him/her as an account clerk and from there climbing the professional ladder at his/her pace. Even by mere registering as an ICAN student, one has an edge above others. Every normal corporate company has structured Accounting department – I mean, they practise accounting to the act, according to the standard of International Accounting Standard (IAS), certified accounting standard (CAS, Nigeria) and International Financial Standard (IFS).
Overview works of Accountant
Anything that has to do with figure, especially as related to money, accountant is there. Accountant can operate privately as a consultant – tax, accounting, estate agent, import and export consulting services and lots more. An accountant can work with any private organisation or government parastatals as head of store department; cost and management Account department; Financial Accountant; Receivable Manager; Payable Manager; Head of Audit; Internal Auditor, etc.
Auditors and Accountants
ICAN qualifies the two, once you are chartered by ICAN, you are chartered or qualified to practise as a professional accountant and auditor. There are two main categories of auditors – internal and external auditors; the former works with organisation while the latter works independently as consultants to firms.
Roles of Accountants in relieving a nation of recession
Recession doesn’t happen in a day, it must have started long ago before its fully-fledged manifestation as it is now. It can be encountered by individuals and as a nation. It starts when you no longer cherish accountability, proper accounting system, equity and the likes; but you embrace corruption, inequality and so on. An accountant sees recession like 5 years ahead before a politician sees it. ICAN as a professional body has gattered some data in the past on which some recommendations were made to the government of Nigeria as regards solutions to the present recession but it all depends on the government to apply or jettison. Another cause of recession is total dependence on importation of raw materials for production. Nigeria is mono-economic country- petroleum, which is inimical to her economy.
Agricultural Motivation
One of the good and sure means to end recession is the re-activation of the Agricultural sector of the nation; hence agricultural motivation is exigent. Government should encourage youths to practise real agriculture, let there be network on farms, good road, radio and television access; let them watch European league at their farms, give them social amenities and the likes.
Entrepreneurship and Entrepreneurs
Earning Salary may not help or pay off but as an entrepreneur, you have good time for yourself to generate enough innovative ideas and you can earn money to your taste at your pace. I must say that entrepreneurs need mentoring, what to produce and how to produce it must be found out. Though fear of the unknown keeps people back but it is the best way to go, and more so, that is why it is called a venture.
Starting an accounting firm
First of all become a chartered accountant, that is the primary prerequisite. Then apply to the institute of Chartered Accountants of Nigeria, ICAN for practising licence to own a practising firm or to become an auditing firm. Pay for the licence and renew biennially, i.e. every two years.