The Financial Reporting Council of Nigeria has raised concerns over the alarming rate of audit failures, including fraud and corporate collapses, which come at a high cost to investors and stockbrokers.The Financial Reporting Council of Nigeria has raised concerns over the alarming rate of audit failures, including fraud and corporate collapses, which come at a high cost to investors and stockbrokers.
He explained that the audit failures have exposed investors to the risk of bankruptcy, as some obtained investment and margin loans from banks, which they were subsequently unable to repay. The cases, he said, have exposed severe shortcomings in the auditing process, often motivated by greed and a failure to adhere to professional standards, which FRCN seeks to uphold.
He argued that this approach is essential for restoring confidence in audits and preventing the devastating financial losses, corporate collapses, and ruined lives often associated with audit failures. He advocated for proactive regulation as a critical tool for preventing audit failures before they occur, rather than merely responding to them after the fact.
Olowo further urged a focus on reforming both the regulatory framework and the individuals within the profession to ensure that audits truly serve their purpose in protecting the market and society.Before flagging, please keep in mind that Disqus does not moderate communities. Your username will be shown to the moderator, so you should only flag this comment for one of the reasons listed above.
The Nigerian Maritime Administration and Safety Agency has committed to strengthening its diplomatic relationships with key shipping nations to bolster the employment prospects of Nigerian-certified seafarers.