ICAN, WB, ADB join for Nepal audit assessment

By A Staff Reporter,Kathmandu, Dec. 22: The Institute of Chartered Accountants of Nepal (ICAN) has been recognised as a key national counterpart in the Report on the Observance of Standards and Codes (ROSC) – Accounting and Auditing (A&A) Assessment for Nepal. 

The assessment is being undertaken by the World Bank Group (WBG) and the Asian Development Bank (ADB), in collaboration with ICAN, at the request of the government of Nepal.

This globally benchmarked assessment aims to evaluate Nepal’s accounting and auditing environment, identify existing gaps and challenges, and recommend reforms to strengthen transparency, accountability, and investor confidence.

The initiative comes at a critical time as Nepal seeks to enhance financial governance, attract sustainable private investment, and expand access to finance for businesses of all sizes, according to a press statement of ICAN.

The ROSC A&A assessment will review applicable accounting and auditing standards, regulatory and institutional frameworks, professional education and training systems, compliance and enforcement mechanisms, and actual practices. 

Its findings and recommendations, aligned with good international practices, will support Nepal in further strengthening its institutional capacity and financial reporting ecosystem.

The previous ROSC A&A assessment for Nepal was conducted in 2015. 

Since then, Nepal has made significant progress in aligning with international best practices. 

Key reforms include full convergence with International Financial Reporting Standards (IFRS) through the implementation of Nepal Financial Reporting Standards (NFRS) across listed companies, banks, insurance entities, and state-owned enterprises; adoption of International Standards on Auditing (ISA) through the issuance of Nepal Standards on Auditing (NSA); implementation of Nepal Standards on Quality Control (NSQC 1) and peer review mechanisms to enhance audit quality; and strengthening of professional education and continuing professional development aligned with International Education Standards (IES) and IFAC obligations.

These reforms have significantly enhanced transparency, accountability, and credibility in Nepal’s financial reporting framework, it said. 

The upcoming ROSC A&A assessment will assess compliance with international standards, highlight Nepal’s progress, and provide strategic recommendations to further strengthen market confidence and support sustainable economic growth.

“This assessment is a milestone for Nepal’s financial sector. It validates a decade of reform and positions Nepal as a credible and trusted destination for global investment. ICAN remains fully committed to promoting excellence in accounting and auditing practices in line with international standards,” said Nil Bahadur Saru Magar, President, ICAN.

ICAN reaffirms its commitment to this national priority and calls upon all stakeholders—including regulators, professional bodies, academia, and the private sector—to actively collaborate for a successful assessment and to further strengthen Nepal’s financial governance framework.