2 months ago
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CEO, Financial Reporting Council of Nigeria, Rabiu Olowo
The Financial Reporting Council has vowed to take action against erring auditors and accountants.
The Executive Secretary/Chief Executive Officer of the Council, Dr Rabiu Olowo, said this on Tuesday while presenting a paper titled, ‘Proactive Regulation: A Catalyst For Preventing Audit Failure’ at the Premier Leadership Audit Summit held in Lagos.
Highlighting the adverse effects of audit failures on the global scene and in Nigeria, Olowo revealed that the council had taken steps to digitise its process to enable the registration and validation of professional accountants and other professionals engaged in the financial reporting process, among others, since he assumed office in October.
He said, “Impose sanctions on erring entities and their auditors where necessary, which is the last leg of our transformational agenda being E-Enforcement and Compliance. This is clear, especially with our recent pronouncements and sanctions. We promise to be firm and fair, but we shall not fail to hold erring auditors and practitioners to account.”
Earlier in the year, the FRC announced the suspension of the Engagement Partner of Nexia Agbo Abel & Co., Abel Onyeke, for an initial period of three months, effective from June 1.
In the statement announcing the suspension, it was indicated that Onyeke was found, among others, not to have exercised adequate professional scepticism and due diligence during this engagement as required by auditing standards and he did not obtain sufficient appropriate audit evidence by relevant standards.
“By this suspension, Mr Abel Onyeke is not permitted to undertake any audit function/engagement pending the time a full practice review of the firm shall be conducted,” the council stated.
Meanwhile, the FRC boss revealed that the premier summit was designed to provide a unique platform for the council to engage practitioners on policy and regulatory frameworks, the council’s practice review of firms, emerging trends and challenges, and numerous other collaborative opportunities to foster best practices and innovative solutions.
He added that it would also avail the council of the opportunity to interact with auditing stakeholders on the imperative of improving audit quality and defining the future of the industry.
The FRC is the primary statutory agency with responsibility for regulating financial reporting accounting, auditing, actuarial, valuation, and corporate governance standards in the country.
