Following the issuance of Rule 12: Audit Transparency Report by the Financial Reporting Council of Nigeria (FRC) requiring audit firms that audit or provide other assurance to publish annually a transparency report on the legal structure, ownership, governance structure, internal quality control system, quality assurance, independence practices etc, this report was put together. FRC aims, through supervision and oversight, to monitor and ensure quality audit practice are maintained by audit firms.
Auditors play a crucial role in maintaining trust and integrity in business by offering opinions on financial statements. The Financial Reporting Council (FRC) aims to ensure consistently high audit quality, instilling confidence in users of financial statements regarding the accuracy of company accounts and statements. The FRC's objective aligns with the broader goal of fostering transparency and reliability in financial reporting. This commitment to audit quality is fundamental for stakeholders, as it enhances the credibility of financial information and contributes to a more robust financial ecosystem.
While there is some shared responsibility throughout the ecosystem for the quality of audits, we expect firms to achieve high-quality audits, regardless of any identified risk in relation to management, those charged with governance or the entity’s financial reporting systems and controls. Auditors are expected to ensure that the audit conducted is in line with professional ethics and that quality audits are performed, and reliable financial statements are available for all stakeholders to access.
While there is some shared responsibility for quality of audits, the primary expectation is for firms to deliver high-quality audits, irrespective of identified risks related to management, those charged with governance, or the entity's financial reporting systems and controls. Firms should maintain a commitment to excellence in their audit processes, ensuring thoroughness and accuracy. This approach enhances accountability and contributes to the overall reliability of financial reporting.
