Nigeria: PwC Engages Stakeholders On New Auditors’ Report Standard
Last Updated: 17 September 2015

Lagos, 9 September, 2015: Leading professional services firm PricewaterhouseCoopers (PwC) Nigeria has called on Nigerian companies and auditors to test run the new International Auditing and Assurance Standards Board (IAASB) auditors' report model at least once before the required reporting period. The call was made at a recent breakfast meeting held by PwC for stakeholders, during which key changes to the auditors' report model and the implications of the new model for boards, managements, regulators and auditors were presented.

Welcoming the participants which included senior finance executives, audit committee members and regulators drawn from various sectors of the economy, Uyi Akpata, Country Senior Partner PwC Nigeria and Regional Senior Partner for West Africa noted that PwC has always found it necessary to engage stakeholders on matters concerning financial reporting and noted that the session will be a first in the series as the country moves towards the December 2016 implementation period. He comments:

"The new IAASB standard is long overdue and a product of many years of discussions among stakeholders on how to make the auditor's report better. The new model is exigent at this time when there is increased call even among the general citizenry for transparency, good governance and clarity in financial reports. This new model gives more insight into the auditing process and is sure to provide answers to many of the concerns raised over the years about audit reports.

At PwC we are committed to being at the forefront on issues such as this and will continue to engage stakeholders in open forums as well as through individual private discussions as we explore this new model and prepare to implement it in our audit reports."

Tola Ogundipe, Partner and Assurance Leader for PwC Nigeria set the tone for the day's session by briefly tracing the history of the new standard and highlighting some key areas the new model departs from the one currently in use. He comments:

"The new standard is the end product of a process that started in 2006 when the IAASB and the American Institute of CPAs (Certified Public Accountants) commenced a joint academic research to identify, and provide information and insights on user perceptions regarding the financial statement audit and the auditor's report among different classes of financial statement users. In January 2015, the IAASB released a set of new and revised auditor reporting standards to become effective for financial statements relevant for periods ending on or after 15 December 2016, though early application is permitted.

Essentially, the regulator's objectives which informed the review revolves around enhancing the communicative value and relevance of the auditor's report and modifying International Standards on Accounting (ISAs) to accommodate evolving national financial reporting regimes. We strongly advise as is our practice at PwC, that companies do at least one dry run with the new standards. This will enable them learn from the experience when actual reporting with it commences in December 2016."

The key changes to the audit report were presented by Cyril Azobu, Partner at PwC Nigeria. He noted that the changes that the IAASB is introducing to the auditors' reports centre around three key aims: insight, transparency and improved readability. The new standard also gives 'Going Concern' more visibility as it describes both the management's and auditors' responsibilities regarding going concern. Another feature of the new model is the emphasis it gives to 'Key Audit Matters' which must now be captured and reported by the auditor in the report. Cyril enumerated the content of the new reporting model to include; opinion, basis of opinion, and material uncertainty regarding going concern. Others are key audit matters, description of management's responsibilities and auditors' responsibilities. The presentation also featured some lessons learnt from the implementation in the UK which were mainly commendations for the new standard which is said to have made reports more interesting and informative with the Key Audit Matters section being identified as the most valuable section in the new report.

In concluding Cyril noted:

"The new auditor reporting standard will bring both opportunities and challenges. Clearly, there is a balance to be struck. The auditors' reports need to respond to the spirit of the standards, with a user focus in mind. And auditors should be brave in confronting the cultural norms of boilerplate and overwhelming caution. But forcing the pace of change might have adverse consequences – especially in litigious environments – and this could result in a retreat back to boilerplate. Patience may be needed as the auditing world grapples with how to achieve informative and appropriately focused reports."

The presentation was followed by a panel discussion. Among the panellists who were drawn from regulatory agencies in the financial sector were Mr Olutayo Philip of ICAN, The DG of the Securities and Exchange Commission represented by Mr. Sa'ad Abdulsalam , Mr George Onekhena, Deputy Commissioner Finance & Administration of the National Insurance Commission (NAICOM), Mr Wambai Umoru Director Finance & Accounts of the Corporate Affairs Commission (CAC), Mr Kolawole Balogun of the CBN, and Mr Imeh Udofia of the National Pensions Commission (PENCOM). The discussion revolved around the implications for the new reporting standard from the regulatory point of view. They all commended PwC for taking the lead to educate stakeholders on the new standards and the need for compliance by all in order for the country to reap the benefits of the new reporting standard.

The question and answer session threw up a number of issues especially around the sensitivity of disclosures made by management which the auditor is required to report, the time implications of the new process vis-à-vis regulatory requirements and the need for more capacity building opportunities to prepare stakeholders for the impending change.

The breakfast meeting which held at the Oriental Hotel Lagos was well attended with over hundred participants from various sectors. It provided a huge opportunity for stakeholders to network and share ideas on the growth and advancement of financial reporting in the country.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Press Releases from this Firm
Recent Content from this Firm
By Taiwo Oyedele
By Taiwo Oyedele, Esiri Agbeyi, Ade Ogunsanya, Babatunde Kehinde
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele, Moshood Olajide, Tolulope Omidiji, Olubukola Oyerinde
By Taiwo Oyedele
By Taiwo Oyedele
By Taiwo Oyedele, Seun Adu, Olanrewaju Alabi
Font Size:
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.