RSM’s Correspondent Firm, Stransact (Chartered Accountants), Canvasses for Ethical Audit Practice in Nigeria

 Stransact (Chartered Accountants), the correspondent firm in Nigeria for the 6th largest international accounting firm -RSM, has called for adherence to global standards and ethical practices in the conduct of audits in Nigeria.

Auditors are professional accountants authorized to review and verify the accuracy of financial records and ensure that organizations comply with relevant laws and regulatory frameworks. Globally, strong ethics and credibility are crucial to the efficient conduct of audits since auditors are expected to be independent, reliable, honest, and carry out their duties without prejudice.

“Auditing is a reputation-based business. Without a credible reputation, an auditor cannot function efficiently. This is why an auditor signs financial statements with his name and not his firm”, said Eben Joels, General Partner at Stransact.

“The level of respect and trust you have in financial statements is directly proportional to the credibility of the auditor. Therefore, auditors should dispatch their jobs bearing in mind that their responsibility is not to make the client look good but to be accountable primarily to the client’s stakeholders that is- shareholders, investors, regulators, and employees,” he added.

According to Bola Mogaji, Partner, Audit Services, “credibility is a watchword that should not only be maintained but must be perceived and seen in all the engagements of professional accountants. The absence of this important virtue has led to the continuous series of recent accounting scandals and audit failures that have undermined the credibility of auditing and auditors.”

Victor Athe, Partner, Tax Services, mentioned some of the factors that impact the credibility of an auditor, including objectivity, independence, integrity, professionalism, level of qualification, and trust.

“It must be noted that, if the ratio of the fee from a particular client to the total revenue of the auditing firm is too high, the firm’s independence will be questioned,” Mr. Athe added.

According to Yomi Salawu, the Partner, People & Regulatory Services, “an auditor should not only profess to be independent but must also be seen as independent.”

“Anyone who lacks integrity is not expected to be seen around auditing. ICAN (Institute of Chartered Accountants of Nigeria) was deliberate in the choice of its motto- ‘accuracy and integrity’. “Apart from accuracy, the auditor’s integrity is crucial,” said Mr. Salawu.