ICAN Leads Nepal’s ROSC A&A Assessment with World Bank and ADB
ICAN Leads Nepal's ROSC
21st December 2025, Kathmandu
The Institute of Chartered Accountants of Nepal (ICAN) has achieved recognition as the principal national counterpart for the ‘Report on the Observance of Standards and Codes (ROSC) Accounting and Auditing (A&A) Assessment’ in Nepal.
ICAN Leads Nepal’s ROSC
This landmark evaluation is taking place through a collaboration between the World Bank Group and the Asian Development Bank (ADB), following a request from the Government of Nepal. The core initiative is the ICAN ROSC A&A Assessment.
This assessment is based on world-class standards. Its key objective is to evaluate Nepal’s current accounting and auditing landscape. It will identify existing gaps, pinpoint challenges, and recommend necessary reforms. Ultimately, these steps aim to bolster transparency, accountability, and investor confidence within the nation’s financial systems.
Nepal is currently focused on strengthening its financial governance. The nation is actively working to attract sustainable private sector investment. It also seeks to broaden access to financial resources for businesses of all sizes. This ROSC A&A initiative, therefore, comes at a very opportune time.
The assessment will comprehensively review several critical areas. These include the applicable accounting and auditing standards, the regulatory and institutional frameworks, and professional education and training systems. It will also examine compliance, enforcement mechanisms, and actual market practices.
Aligning Practices with Global Standards
The findings and subsequent recommendations will align with international best practices. This will significantly assist Nepal. It will strengthen its institutional capacity and further enhance its financial reporting systems.
Nepal’s previous ROSC A&A assessment was completed in 2015. Since then, Nepal has shown substantial progress in aligning its practices with international standards. Several key reforms have been successfully implemented.
Key improvements have notably enhanced Nepal’s financial reporting structure:
IFRS Alignment: Full convergence with the International Financial Reporting Standards (IFRS). This was achieved through the implementation of the Nepal Financial Reporting Standards (NFRS). This applies to listed companies, banks, insurance companies, and state-owned enterprises.
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Adoption of ISA: The International Standards on Auditing (ISA) have been adopted. This was done through the issuance of the Nepal Auditing Standards (NAS).
Quality Control: Audit quality has been enhanced. This was secured by implementing the Nepal Standard on Quality Control (NSQC 1). A peer review mechanism was also introduced.
Professional Development: Professional education and Continuous Professional Development (CPD) have been strengthened. This aligns with International Education Standards (IES) and IFAC obligations.
These reforms have measurably increased the transparency, accountability, and reliability of Nepal’s financial reporting.
ROSC Assessment: A Strategic Step Forward
The ROSC A&A Assessment will evaluate the current level of adherence to international standards. It will highlight the progress Nepal has made. Crucially, it will provide strategic recommendations. These are intended to further strengthen market trust and support sustained economic growth.
ICAN’s President, Mr. Neel Bahadur Saru Magar, affirmed the importance of the initiative. “This assessment is a milestone for Nepal’s financial sector,” he stated.
“It acknowledges a decade of reforms. It also positions Nepal as a credible and trustworthy destination for global investment. ICAN is fully committed to promoting excellence in accounting and auditing practices in line with international standards.”
ICAN has reaffirmed its dedication to this national priority. The body calls upon all stakeholders to actively collaborate for a successful assessment. This includes regulatory bodies, professional organizations, academia, and the private sector.
The collective effort will ultimately strengthen Nepal’s financial governance framework. The success of the ICAN ROSC A&A Assessment is crucial for the nation’s economic future.
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