The Institute of Certified Public Accounts (ICPAK) has addressed reports that it was only validating financial statements from ‘big four’ audit firms.
In a statement on 24 July 2024, the institute clarified that all audit firms licensed by the institute under category ‘C’ (Composite License) are authorized to give permitted services.
ICPAK noted that some institutions had imposed restrictions on their clients regarding validity of their financial statements based on audit firms.
“The Institute wishes to clarify and notify the public as follows: 4. That audit firms and practitioners licensed by the Institute, under Category ‘C’ (Composite License) are authorized to perform Audit and Assurance Services, Tax Services & Accounting, Controls and Consulting Services, while those licensed under Category ‘A’ License are authorized to perform only Audit and Assurance Services.”
ICPAK on dominant Audit Firms
“There are also category ‘M’ Licensees authorized to perform Accounting, Controls, and Consulting while Category “T” Licensees are to be engaged in performing Tax practices,” said ICPAK Chair, Philip Kakai.
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Further, the institute dismissed the use of ‘big four’ terminology stating that it does not exist in its regulatory framework.
Likewise, Kakai warned that any profiling to designate some audit firms as ‘the big four’ or statements from other firms as unacceptable was discriminatory and unlawful.
“There are also category ‘M’ Licensees authorized to perform Accounting, Controls, and Consulting while Category “T” Licensees are to be engaged in performing Tax practices,” Kakai’s statement read in part.
“Having provided this clarification, any other profiling that attempts to designate some audit firms as ‘the big four’, or to determine that only financial statements audited by the said big four firms are valid or acceptable is discriminatory, biased, irregular and anti-competitive. It is hence unlawful and an unacceptable attempt to usurp the mandate of the Institute,” the institute warned.
It directed that it has categorized audit firms with respect to the number of partners to demonstrate their varying capacities.
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While dismissing the claims, ICPAK stated that it does not in any way promote any category of firms as superior or above the other.
Vetted Audit Firms
“In categorizing the firms, the Institute does not in any way whatsoever, attempt to promote any firm or category of firms as being superior above the other.
“For the avoidance of doubt, all auditors and accounting firms licensed by the Institute have been thoroughly vetted, are constantly trained and are fully suitable to offer the services that they are licensed to offer under the various license categories,” the statement read.
Lastly, it clarified that names of licensed and vetted members are posted on the institutes website and are published in a newspaper of wide national circulation from time to time to avoid wrong profiling from unlicensed firms.
Established in 1978, ICPAK is a member of the Pan-African Federation of Accountants (PAFA) and the International Federation of Accountants (IFAC), the global umbrella body for the accountancy profession.
Among others, its mandate includes promoting standards of professional competence and practice amongst members of the Institute.
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