Financial Reporting Council Pledges to Fix Issues with Audit Regulations

Financial Reporting Council Pledges to Fix Issues with Audit Regulations

Following spotted issues in Nigerian newly approved audit regulation 2020, the Financial Reporting Council of Nigeria (FRCN) has pledged to fix grey areas as the council urges strict compliance.

Dr. Iheanyi Anyahara, Acting Executive Secretary, FRCN made the pledge at a stakeholders’ interactive webinar organised by the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN).

The webinar themed: “Audit Regulations 2020: Addressing Stakeholders’ Concerns on the Mandatory Registration of Audit Committee Members with FRCN and Sanctions” was attended by industries observers and audit practioners.

The new Audit Regulation 2020 seeks to provide a comprehensive legal framework necessary for effective implementation of auditing standards practices in Nigeria.

Anyahara however urge strict compliance by companies on the provisions of the regulations, saying, the FRCN was not out to sanction companies but to ensure credible financial reporting to attract investments.

FRC Chief revealed plans by the council to commence quality control by 2022 in line with the transition programme, said audit regulation is an enabler for re- establishing the much-needed trust in financial report.

“There is, therefore, the need for clarion call for strict compliance with the Regulation by all concerned. This will engender the need for re- evaluation of remuneration, structure, board level experience, risk management, training, and sustainability among others.

“With the pandemic, the council has provided increased transparency for investors and shareholders whose demand are very high.

“Howbeit, assurance by independent qualified professionals to enhance the credibility of corporate financial reporting would need to be pursued vigorously by all affected professionals,” he said.

Speaking further, FRC acting Chief Executive pledged the council’s commitment to ensuring transparency, responsibility, accountability, fairness without fear or favor of anyone.

He added that the council would provide a window to address the issue of qualifications for members of the audit committee.

“We seek for collaboration with all stakeholders for seamless implementation of the Regulation. We shall commence quality control review in 2022 in line with the transition Programme.

“We plan to commence training on the implementation of the audit committee by next quarter for audit firms, audit committee members, shareholders, board members, internal auditors and assurance practitioners.

“Our engagement so far are: big four audit firms, shareholders’ association, small and medium practices among others and we are open to work together to build capacity,” he affirmed.

Read Also: SEC to Engage Stakeholders on Fintech Roadmap Implementation

Financial Reporting Council Pledges to Fix Issues with Audit Regulations