The Financial Reporting Council (FRC) has called on Institute of Chartered Accountants of Nigeria (ICAN) to brace up to the relevant reviews and requirements as embedded in the FRC Act, 2011.

The Executive Secretary of the FRC, Mr Jim Obazee, who gave this charge during a courtesy visit to the council in Lagos, on Friday, by ICAN, stated that some cardinal provisions in the Act called for closer collaboration between both bodies, adding that there were several opportunities and responsibilities for ICAN members.

According to Obazee, the FRC is currently reviewing the financial statements of listed and significant public interest, set to carry out quality control of professional accounting firms and has commenced registration of professionals, stressing that ICAN membership had a huge role to play in these efforts, especially as Nigeria is required to participate in the standard setting process of the International Accounting Standards Board (IASD) in both drafting and post implementation stages.

 He noted that the council was currently seeking support of the United Kingdom FRC, for Nigeria to be approved as meeting the requirements of the European Statutory Audit Directive which currently has only Mauritius and South Africa as African members, stating that the implication of non-inclusion was that accounting firms from such countries would be required to register with accounting bodies of the EU and be subjected to their regulatory oversight functions.

“With the enactment of the FRC Act 2011, Nigerian auditors should be approved as third country auditors. We have been told to begin a process that will lead to Nigeria being invited to join the International Forum of Independent Audit Regulators (IFIAR), a body that will make the case for Nigeria,” he said.

Obazee further added that governments and public sector entities of the developed part of the world, which were once using cash-basis of accounting, were now rapidly moving towards accrual-based accounting system, urging ICAN members to prepare for the changes since the revenue of many government departments comes primarily from parliamentary appropriations rather than from sales as public accounting is different from private sector accounting.

He further disclosed that the Act had several opportunities for ICAN members beside the normal statutory audit such as management assessment of internal controls, including information systems controls with independent attestation; code of ethics for financial officers and certification of financial statement by chief executive officer and chief financial officer; real time disclosures on material changes, among others.

Earlier, ICAN President, Mr. Doyin Owolabi, said the visit was to enhance relationship between both bodies, saying the body would always align with positive steps to move the accounting profession forward.

He stated that though ICAN was mindful of the statutory role of the FRC, it however needed clarifications on some grey areas in the FRC Act 2011.

“We need you to shed more light on some grey areas relating to members in practice registration with the Council, registration fee and others,” he stated.

The high point of the visit was the registration of the ICAN President as a member of the FRC.