The Financial Reporting Council of Nigeria (FRC) has reinforced its commitment to enhancing audit oversight and eliminating audit failures in the country’s financial reporting sector.
During the Leadership Summit for Auditors and Assurance Providers in Lagos, FRC Executive Secretary Rabiu Olowo introduced the “DOSE” strategy—focusing on Digitisation, Operational Excellence, Stakeholder Engagement, and Enforcement—to raise regulatory standards and ensure strict compliance among auditors.
Olowo highlighted the importance of digitization in improving the FRC’s ability to detect risks and prevent audit deficiencies.
He pointed to past audit failures, such as those involving AfriBank Plc and Cadbury, as costly examples of what can happen when auditors fail to identify fraudulent activities.
Olowo stressed that auditors serve as the last line of defense in maintaining public trust and confidence in Nigeria’s financial systems.
In a keynote address, Auditor-General for the Federation, Shaakaa Chira, echoed Olowo’s concerns about audit failures, citing significant financial losses in Nigeria’s banking sector during the early 1990s.
Chira emphasized the need for strict adherence to FRC’s reporting framework, warning that non-compliant financial statements would be rejected.
He also updated on efforts to clear audit backlogs, with 2020 and 2021 audits completed and 2022 reports nearly finished.
The FRC’s DOSE initiative is expected to play a crucial role in restoring confidence in Nigeria’s financial reporting practices.