Accounting is the systematic process of recording, analysing, interpreting and communicating financial information for decision making.
If you have been searching for the difference between The Association of Accounting Technicians (AAT) and Associate Chartered Accountant (ACA), search no further. This is a comprehensive analysis on the differences between an AAT holder and an ACA.
RIGHT TO BE APPOINTED AS AUDITOR
An AATWA member cannot be appointed an auditor of a company by virtue of Company and Allied Matter Acts (CAMA) 2004 [Amendment]. The recognized bodies are Institute Of Chartered Accountants Of Nigeria (ICAN) & Association Of National Accountants Of Nigeria (ANAN). AATs can only work as audit technicians conducting & performing the audit procedures. But he cannot sign off the audit report.
RIGHT TO SIGN OFF TAX RETURNS & PRACTICE TAX PLANNING WORK
In Uk, taxation is not a particularly restricted service. A taxpayer is solely liable for misstatements on the returns. AAT holders in UK can and do practice taxation in all is ramifications. But the case is different here in Nigeria. Taxation is restricted to ICAN, Nigerian Bar Association (NBA) & Chartered Institute Of Taxation of Nigeria (CITN) members by law. Technically only CITN controls the practice of tax in Nigeria, but a recent Memorandum of understanding (MOU) provides that holders of ACA and LL.B (Barrister) can get the certification on application without taking the Professional exams. CITN is the Chartered Institute of Taxation of Nigeria and it issues the ACTI certificate. AATs can serve as tax technicians, doing the computations & drafting the returns but not signing off.
RIGHT TO PRACTICE BANKRUPTCY
Only lawyers & ACAs, for the most part, can practice Insolvency. AATWA members cannot practice this field.
RIGHT TO OPEN AN ACCOUNTING PRACTICE
Again, The Association of Accountancy Bodies in West Africa (ABWA) & ICAN don’t issue practice license to AAT holders. This means that an AAT cannot legally establish a firm. In summary, an AAT lacks many of the the specs of full fledged accountants. But they are suitable assistants to the qualified ones.
Outside the restricted services & power listed above, an AAT holders can practice other areas of ACCOUNTING in all ramifications. But his work would ideally be supervised by an ACA.