FRC Moves to Stop Another Financial ‘Tsunami’, to Scrutinize Work Done By Audit Firms Q1 2015

In an apparent bid to forestall the experience of 2009, when a ‘tsunami’ shook the banks to their foundation because of huge non-performing loans on banks’ books, the Financial Reporting Council (FRC) has concluded plans to pay attention to the quality of works done by audit firms for quoted and non-quoted companies.
There are already reports that banks exposure to the power sectors is almost crippling some of the banks, even as the pressure from falling oil prices is testing how resolute the banking industry is.
Jim Obaze, Chief Executive of FRC said the council will in the first quarter of next year, begins audit quality of banks.
Obazee, who spoke at the weekend during a three-day media retreat in Lagos, said the time had come to hold auditors more accountable for their works. He said the Council would pay more attention to the quality of work done by audit firms and their executives for quoted and non-quoted companies, particularly those considered as being of national importance.
Speaking on the theme: ‘Financial reporting regulation: Issues and challenges,’ Obazee said auditing standards are high-profile issues in the light of recent events globally, and national surprises.

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