FRC advocates strict compliance with audit regulation

The Financial Reporting Council of Nigeria (FRCN) has urged au- dit companies and practitioners to ensure strict compliance with the regulation guiding the profession, noting that, the last finan- cial crisis has demonstrated that robust, transparent audit practices need to be embedded in all organisations.

Speaking at the Strategic Assessment of Financial Report- ing Council’s Draft Audit Regulation webinar at the weekend, FRCN deputy director, research and strategy, Dr Iheanyi Anyahara noted that regulation is an enabler for re-establishing the much-needed trust in audit pro- fession.

The council had opened up for comments on the draft exposure of Audit Regulation document which is to provide legal and regulatory framework for minimum practice guideline for auditors in Nigeria and to give effect to the provisions of the FRC Act.

Anyahara, noted that, “with the ongoing pandemic, this regulation, providing increased trans- parency for investors and other stakeholders, are expected to be in high demand. However, as- surance by independent qualified professionals to enhance the credibility of corporate reporting will need to be pursued with vigour by all affected stake- holders.

“Great civilisations are built with huge capital which in turn requires the certainty that the discipline and integrity of responsible accounting delivers. Responsible audit regulation will strengthen the market to attract more patient capital from the global market. It is our societal duty and privilege to do what we are doing today,” he said.

He stressed further that it will regulate and ensure that all registered auditors carry out their professional duties in a manner to earn the trust of clients and promote the image of the profession and the country, whilst ensuring that Recognised Supervisory Bodies (RSBs) comply with these regulations through a well-defined delegat- ed arrangement; prescribes penalties for non-compliance with these regulations.