IFRS: Auditors to be liable for accounts falsification

IFRS: Auditors to be liable for accounts falsification

Chuks Udo Okonta

The National Insurance Commission (NAICOM) would henceforth hold auditors of underwriters and brokers liable for approving falsified financial accounts, Inspen has learnt.  

Deputy Commissioner Finance and Administration NAICOM, George Onekhena, who disclosed this in Lagos, said auditors, would be held liable for their opinion in the financial books of insurance operators in the International Financial Reporting Standard (IFRS) dispensation, adding that any auditor that approved a falsified account would be reported to the Financial Reporting Council (FRC).

He urged auditors to always clarify grey areas with their clients before approving their accounts. He told the auditors to esteem integrity, noting that it is better not to have a job, than having one that would tarnish their image.

He urged the auditors to report to NAICOM any challenge they observe in executing their responsibility, adding that the commission is just a phone call away.

He said: “We are going to hold auditors responsible for their opinion in the financial accounts of companies. We would profile auditors with issues on their practice and report them to the Financial Reporting Council (FRC). Auditors should note that their responsibilities have increased in the current dispensation.

“We do not want to make a mess of the International Financial Reporting Standard (IFRS) by next year that is why we are investing in training and capacity building of operators and auditors.”

Onekhena urged auditors to take the issue of auditing with all the seriousness it deserves, adding that once an auditor has a problem with the Financial Reporting Council (FRC) its license would be suspended.