IFRS: Insurers shop for competent auditors

Commissioner for Insurance Fola Daniel

Chuks Udo Okonta

Some Insurance companies have launched the search for competent external auditors that would prepare their accounts in line with the International Financial Reporting Standard (IFRS) and forestall the embarrassment suffered in getting approval for their 2012 accounts.

Inspen’s investigations revealed that most firms have notified their auditors about the change and have initiated moves to engage auditors that are capable of putting their books together on time, as required by law.

A report obtained from one of the firms stated that the board had notified the external auditor that their services would no longer be required beyond December last year.
The firm’s board noted that the decision was taken to enable the company have a smooth and full transition to IFRS.

The National Insurance Commission (NAICOM), as a follow up to the implementation of the IFRS, had threatened to blacklist any audit firm that endorses fraudulent reports for insurance companies.

The commission said blacklisted firms would not be allowed to work for any other insurance company in the country and would also be formally reported to their umbrella body, the Institute of Chartered Accountants of Nigeria (ICAN) and the Financial Reporting Council (FRC).

Director Supervision NAICOM, Nicholas Opara, who disclosed this at a forum, said the regulator feels auditors should not stamp their seal on an account that the figures are questionable, adding that the commission has since reported some of such auditors to their ICAN and the FRC.

“In other jurisdictions, once an Auditor puts its stamp on an account, that account is accepted as credible. We shall begin to ask auditors questions on why the accounts submitted to NAICOM were not correct.

“We have reported some of the auditors to ICAN and Financial Reporting Council (FRC) that they are not helping us. If the Chief Financial Officer of a company is not doing a job well, why should the auditor not correct that? We are beginning to report those auditors who have failed to live up to expectations,” he added.