The Financial Reporting Council (FRC) of Nigeria has solicited shareholders’ associations support in implementing the audit regulation designed to boost the public trust in financial reporting.
According to its acting Executive Secretary, Dr Iheanyi Anyahara, who made the appeal Monday in Lagos, the audit regulation will engender “more enduring credible corporate reporting regime that enhances capital formation, growth and preservation.”
He explained that by its establishment, the FRC has oversight powers covering ethics, Corporate Governance, Accounting standards, Auditing standards, practice review and quality assurance, Audit Reports, other professionals and all financial reporting issues.
He added: “As you are aware, one of the objectives of the Council as stipulated in Section 11 (a) of the Financial Reporting Council Act, 2011 is to “protect investors and other stakeholders’ interest” which is at the heart of shareholders’ association activities.The financial crisis has demonstrated that robust and transparent audit practices need to be embedded in all organisations.
“Obviously, Audit Regulation is an enabler for re-establishing the much-needed trust in financial reports. There is therefore, a clarion call for strict compliance with the regulation by all concerned. This will orchestrate the need for a re-evaluation of remuneration structures; board level expertise and training; risk management, sustainability.
“With the (COVID-19) pandemic, this regulation, providing increased transparency for investors and other stakeholders, is expected to be in high demand. However, assurance by independent qualified professionals to enhance the credibility of corporate reporting will need to be pursued with vigour by all affected professionals.
“Our engagement with members of shareholders associations is strategic as we decided to use today’s exercise, to personally and specially request that the associations devote considerable time to consider the Audit Regulation for a meaningful and quality contribution to effective implementation of the policy. Audit Regulation is very strategic in the quest to Nigeria joining the league of global community that have effectively set up Independent Audit Regulators. One of the critical concerns on the implementation of the audit regulations is the capacity. We are currently discussing with development partners in this regard.
“I am pleased to inform you that the Council has received positive assurances from some bodies internationally and locally to deploy resources to assist and such will be extended to your association. This is an area your associations need to partner with the Council to build the required capacity.”
