FRC: Audit regulation will attract patient capital, safe space for investors

The Financial Reporting Council (FRC) says the 2020 audit regulation, when completed, will attract patient capital into the country from the global market.

Daniel Asapokhai (pictured), FRC CEO, was speaking at a webinar titled ‘Strategic Assessment of Financial Reporting Council’s Draft Audit Regulation’, organised by Crown Height Consulting.

Asapokhai was represented by Iheanyi Anyahara, head of FRC directorate of accounting standards, public sector.

“Great civilizations are built with huge capital which in turn requires the certainty that the discipline and integrity of responsible accounting delivers,” he said.

“Responsible audit regulation will strengthen the market to attract more patient capital from the global market.

“Generally, strong independent public oversight helps to create and maintain trust in the work of auditors by providing safeguards for companies and investors.”

Asapokhai explained that the FRC has been taking steps to improve the public oversight system for audit.

In addition, he said the council has improved its registration processes.

“Today you get your registration numbers within 48 hours of registration,” Asapokhai said.

He said the audit regulation working group (ARWG) is made up of relevant stakeholders including representatives from the big four audit firms, medium-size audit firms, small practitioners, Institute of Chartered Accountants of Nigeria (ICAN); and Association of National Accountants of Nigeria (ANAN), the Office of the Auditor-General of the Federation to mention a few.

Together with the Companies and Allied Matters Act, Asapokhai said the audit regulation will promote trade and investments in the country.

The audit regulation will be applicable to all statutory auditors, other assurance providers and audit committees excluding the Office of the Auditor-General of the Federation, which is a constitutional body.

He urged members of the public to make contributions to the draft audit regulation document. The comment period closes on September 25, 2020.