A partner at Deloitte, Bolanle Onawumi, has urged greater adherence to international accounting standards and local regulations by public and private entities in the preparation of their financial statements.

While cautioning against misconceptions about audits, she stated that government and private organisations engage independent external auditors to inspire confidence in their earnings reports.

Onawumi submitted: “The need for companies’ financial statements to be audited by an independent external auditor has been a cornerstone of confidence in the world’s financial systems. This is because an audit helps assure users of the financial statements whether or not the financial statements as presented are free from material misstatements and reflects a ‘true and fair’ view of an entity’s financial performance, financial position and cash flows.”

She spoke as a lead facilitator at the fourth Audit Reporting Workshop of FrontFoot Media Initiative in Lagos.

While underlining the significance of auditing, the partner clarified some misconceptions about an audit.

Her words: “The purpose of an audit is to enhance the degree of confidence of intended users in the financial statements. This is achieved by the expression of an opinion by the auditor on whether the financial statements are prepared, in all material respects, by an applicable financial reporting framework.”

She identified three core misconceptions.
According to her, auditors are not detectives, anti-fraud experts or a clearing-house.

Onawumi continued: “The auditor is not primarily responsible for detecting and preventing fraud; this is the responsibility of the management of the company, although the auditor may detect fraud in the process of performing its audit procedures. Auditors are not expected to be preparers of the financial statements as presumed by many.”

Director and Partner, Emeka Izeze, said the audit reporting training: ‘X-Raying State Government Audit Reports’ is a flagship capacity development programme of FrontFoot Media Initiative.

He explained: “It is a targeted training of journalists which we are undertaking under the auspices of the Wole Soyinka Centre for Investigative Journalism and sponsorship of the MacArthur Foundation.”

Participants learn how and where to locate the relevant reports, interpret the material, and write engaging news stories and features that will enlighten, stimulate and empower the electorate, and discourage impunity.”

The workshop had held in Benin, Awka, Abuja and Lagos.