Friday, July 13, 2018 4.30PM / Proshare WebTV
The Executive Director, Regulations, Nigerian Stock Exchange Tinuade Awe in a recent forum on corporate governance, shared her perspective on why financial reporting quality is important for the Nigerian financial market and economy.
According to her, financial reporting is important because people can rely on financial statements to take serious decisions.
She said People use those statements to move from point A to point B, and if the quality is poor it will lead to decisions taken from faulty information.
Tinuade Awe was of the view that Directors are responsible for driving corporate governance code in companies, guided by the provisions of the Company and Allied Matters Act (CAMA) and the Investments Securities Act.
Awe noted that Directors cannot outsource the responsibility of corporate governance and must have knowledge of financial statements and reports.
Speaking further, she said Directors must be able to allocate risk, ensure the strategize in management risk, ensure the right talent pool to execute the strategy and ensure systems are in place.
Tinuade Awe also stressed the need for Directors must understand the business of the company, even to the role of the auditors (both external and those in internal control).
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“I think it is very important that we reinforce to directors that they’re responsible for financial reporting, they are responsible for the quality of it, that responsibility can have adverse consequences for them if it’s not taken seriously and the way to deal with the responsibility is to ensure that you get appropriate management to run everything in your company. The control functions with compliance audit, internal control, the CFO’s office and also the auditors cannot be compromised” Awe said.