Understanding the FRC’s Audit Regulations 2020:

Transcript:Understanding the FRC’s Audit Regulations 2020::
Understanding the FRC’s Audit Regulations 2020: Presented by Ambassador Shuaibu Adamu Ahmed Executive Secretary/CEO: Financial Reporting Council of Nigeria Agile Auditing: The Future of Internal Audit Outline Learning Outcomes Introduction Functions and Powers of FRC Overview of the Audit Regulations 2020 Internal Audit function Prospect and Challenges Conclusion Learning Outcomes At the end of the session, participants should be able to: Understand the legal framework that empowers the Council to issue and enforce audit regulations. Have an overview of the Provisions of the Audit Regulations 2020. Understand the Internal Audit Function under the Audit Regulations 2020. Understand Challenges and Prospect associated with Audit Regulations. Introduction “The financial reporting supply chain refers to the people and processes involved in the preparation, approval, audit, analysis and use of financial reports. All the links in the chain need to be of high quality and closely connected to supply high quality financial reporting” IFAC 2009 4 Financial Reporting Supply Chain There are two major categories of Financial Reporting Supply Chain People; and Processes People can further be classified into two major groups: Internal BOD AC CEO, CFO, IA, IC Preparers External Auditors Actuaries Valuers Regulators(NAICOM, CBN, SEC, NSE, FRC, etc) Relevant Professional Bodies (ANAN, CITN, ICAN, etc) Other Stakeholders ( users, analysts, etc) Introduction Our focus on audit quality is at the heart of the audit regulation. The Council’s goal is to improve the quality of statutory audits in Nigeria by establishing and enforcing applicable rules and regulations that will: 1. Improve the independence of statutory audit firms and auditors from the entity being audited; 2. Enhance the informational value to investors of audit reporting; 3. Enhance the quality of audit work. 4. Promote a more dynamic and competitive audit market in Nigeria; 6 Objectives & Scope of FRC Act Protect Investors and other stakeholders’ interests Provide guidance on issues relating to financial reporting and corporate governance Ensure good corporate governance practices in the public and private sectors of the economy Ensure accuracy and reliability of financial reports and corporate disclosures, pursuant to the various laws and regulation currently in existence Harmonise activities of relevant professional and regulatory bodies relating to corporate governance and financial reporting Scope of the Financial Reporting Standards: Accounting ] Auditing ] Actuarial ] Standards Valuation ] Public Interest Entity: Government, government organisations, quoted and unquoted companies and all organisations are required to file returns with regulatory authorities. S.77 Filing