Tuesday, March 10, 2020 / 05:20 PM / NSE /
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This explanatory note has been prepared to provide detailed information to the members of FCMB Group Plc (the Company), on the change of its auditors Messrs KPMG Professional Services and the appointment of Messrs Deloitte & Touche as the new Auditors of the Company.
By virtue of the provision of section 5.2.12 of the CBN Code of Corporate Governance for Banks and Discount Houses, the tenure of auditors in a given bank shall be for a maximum period of ten (10) cumulative years, after which the audit firm shall not be reappointed in the bank until after a period of another ten (10) consecutive years.
Following the expiration of the 10-year tenure of Messrs KPMG Professional Services with First City Monument Bank Limited (the Bank), the Board of the Bank approved the appointment of Messrs Deloitte & Touche as its external auditors.
With the Bank being the largest subsidiary in the FCMB Group, to ensure timely conclusion of the Group's audit, the Board of Directors of FCMB Group Plc has always adopted the strategy of appointing the same Audit firm to audit both the bank and The Group. This is to enhance easy coordination of the Group's audit process and support quick review of the consolidated financial statements to meet regulatory deadlines on audit.
The Board is of the opinion that maintaining the same audit firm as was the case when KPMG was auditing both the bank and the Group would improve efficiency and ultimately enhance the integrity of the company's financial reporting process.
The appointment of Messrs Deloitte & Touche as the new auditors of the Company will be proposed to members at the next Annual General Meeting.
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