The Financial Reporting Council of Nigeria (FRC) says the Legislation on the 2020 Audit Regulation and Companies and Allied Matters Act (CAMA) are intended to promote trade and investments in Nigeria.
CAMA 2020, was recently amended by the National Assembly, an amendment that has caused widespread controversies, especially among Non Governmental Organizations and religious bodies, with many expressing fears that the Federal Government enacted CAMA 2020 to pave the way for it to take over the administration of their organizations.
In a Webinar, titled ‘A Strategic Assessment of Financial Reporting Council’s Draft Audit Regulation’ Executive Secretary, FRC, Daniel Asapokhai, said, the application of the 2020 audit regulation is expected to be a source of concern to many at this auspicious time with the controversy being generated with CAMA 2020 but noted that the two pieces of legislation are intended to promote trade and investments in Nigeria.
Asapokhai, who spoke through his Deputy Director, Head, Directorate of Accounting Standards, Public Sector, at FRC, Dr Iheanyi Anyahara, applauded President Muhammadu Buhari for the review.
He said audit regulation is applicable in the Federal Republic of Nigeria and regulates all statutory Auditors, other assurance providers and audit committees.
Asapokhai explained that Audit Regulation 2020 aims 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.
“To ensure that all activities of Registered Auditors and other professionals in the financial reporting process are regulated with a view to sustaining best ethical practices capable of promoting quality audit services”.
“To 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, while ensuring that Recognized Supervisory Bodies (RSBs) comply with these regulations through a well-defined delegated arrangement; and also prescribe penalties for non-compliance with these Regulations.”
Asapokhai noted that the draft audit regulation document has since been exposed for comments by the Council and the comment period will remain open until September 25, 2020.
He said “I therefore urge you to utilize this opportunity to contribute to this strategic document so that your voice can be heard”. Upon receipt of comments, the Council will further harmonize and update the document in line with comments received before it is finally issued.