Skip to main content

Auditor's Enlistment Debate Resolved (ICAN vs Government Bodies)

The Institute of Chartered Accountants of Nepal has published a press release directing its members not to be registered separately as an Auditor in the Municipality, Rural Municipality or any other government agencies. ICAN has emphasized that it is a sole authority of the institute to grant a certificate of practice to its members and one should be able to use the audit license per limit set by the institute.

ICAN has also highlighted that it had similar issues in the past with Nepal Rastra Bank, Nepal Insurance Board, Ministry of Education and Department of Co-operatives where it was mutually agreed that not further enlistment is necessary once a person become member of the ICAN and it will be ICAN's responsibility to share to most up to date list with government agencies and regulatory authority to avoid any confusion.

Source of Image: Kantipur News




Recent press release from ICAN has been issued after two consecutive enlistment notices were issued by Gokarneshwor Municipality (https://www.alladnepal.com/posts/notice-information-to-auditor-audited-gokarneshwor-municipality) and Nagarjun Municipality (https://www.alladnepal.com/posts/request-for-quotation-auditor-nagarjun-municipality). 

Surprisingly, few of the registered auditors and one Chartered Accountant firm had already registered under such enlistment announcement from the Gokarneshwor Municipality. Current, press release states measures of disciplinary action against its members not complying with the directives of the ICAN so it will be interesting to see how those registered auditors and Chartered Accountant will be dealt with. 

ICAN has followed on this and have reiterated the fact that auditors get enlisted in ICAN every year with the renewal of their membership and certificate of practice. Those members/firms who have registered should automatically qualify for the audit and no need to enlist again. You can find the recent press release here:
https://www.alladnepal.com/posts/notice-auditing-the-institute-of-chartered-accountant-of-nepal


Labels:
Location: Kathmandu 44600, Nepal

Comments

Post a Comment

Most Viewed

Nepalese VAT Act: Understanding VAT Claims for Food Expenses in Business

Introduction: Determining whether a business can claim VAT against food expenses depends on the nature and purpose of the expenditure. Let's walk through a checklist to find the answer: 1) Was it a Business Expense?      If yes, proceed to question 2. Otherwise, VAT cannot be claimed. 2) Was it for Entertainment Purposes?      If yes (e.g., staff retreat, gatherings, farewells), VAT cannot be claimed. Otherwise, it may be eligible. VAT Act and Regulations: Rule 41 of VAT Regulation specifies that certain services or goods are not eligible for input tax credit under Sec 17 of the Nepalese Income Tax Act. These include: 1) Beverages (excluding mineral water, as clarified in the directive) 2) Alcohol or alcohol-based beverages like whiskey and beer 3) Petrol for vehicles 4) Entertainment expenses In the case of food expenses, it's crucial to determine whether they fall under the category of entertainment expenses. This encompasses activities that provide perso...
Post a Comment
Read more

RAPID Decision Making for Nepalese Startup and Entreprenuers

Decision making is an integral part of any business be it a startup or small or large enterprise. However, being a startup its even more crucial as it is very important for startups to make the right decision at the right time. There might be different methods of how an effective decision can be made. Today, we would like to highlight about the decision-making model developed by Bain & Company which was introduced through an article published in Harvard Business Review, back in January 2006. You can click on the link below for the full article: Who has the D? How clear decision roles enhance Organizational Performance. RAPID is an acronym for the different roles people can have or the activities they take on during the decision-making process. Each letter stands for a specific role or activity; however, people can have more than one letter assigned to them depending on the nature and context of the decision and the size of the group. So, what does each of these letters stan...
Post a Comment
Read more

Windfall Gain Tax (आकस्मिक लाभमा कर) per Nepal Income Tax Act

Nepal's Income Tax Act defines Windfall gain as a gain obtained by means of lottery, gift, prize, tips, share of earning in a game (जितौरी)  or any other gain acquired incidentally.  Let us explain by example what can potentially be Windfall Gain.  1) Let's say apple recently launched a iPhone 14 in Nepal. Part of such launch, company offered its customer who buys iPhone, an iPad for free. The market value of the iPhone is Rs. 214,000 and that of iPad is Rs. 189,000. In such case, customer who received Rs. 189,000 worth of iPad without any additional cost will be considered a prize hence, a windfall gain. 2) Recently DRS gaming won US$ 292,000 (approx. Rs 4 crore) for being runner's up in the grand finals of the PUBG Mobile Global Championship. Let's assume here that DRS gaming has not been registered as a company but simply represented by individuals. If I am not mistaken, there are 4 members in the team. So, each individual will have won Rs. 1 crore as share of earni...
Post a Comment
Read more