By Samuel Bankole
The Nigeria Securities and Exchange Commission (SEC) has granted two years extension on the implementation of its rules which required directors of quoted companies to implement relevant internal controls over financial reporting.
The rules which were published in March this year also required Auditors of such companies to review and issue statement on internal and financial report on its existence, adequacy and effectiveness or otherwise.
SEC in a notice posted on its website said it has approved “a two-year extension for the implementation of the Framework and compliance, from December 31, 2021 to December 31, 2023.”
The affected provision of the Investments and Securities Act, 2007 are Sections 60 to 63.
READ ALSO:Â Bureau de change operators seek reentry into official forex market
The link to the Framework: https://sec.gov.ng/guidance_on_the_implementation_of_sections_60-63_of_isa_2007/
SEC stated that under the personalised certification; the Chief executive officers and the chief financial officers or officers or persons performing similar functions in public companies filing periodic or annual reports would each sign a personalized certification of their compliance with the requirements of the referenced sections of the ISA, 2007.
On the duty of directors on internal control; SEC requires that; a public company shall establish a system of internal controls over its financial reporting and security of its assets and it shall be the responsibility of the board of directors to ensure the integrity of the company’s financial controls and reporting.
Also, Management’s Annual Assessment of, and Report on, the Company’s Internal Control over Financial Reporting; SEC seeks the board of directors of a public company shall report on the effectiveness of the company’s internal control system in its annual report. The annual report shall contain a statement of the management’s responsibility for establishing and maintaining adequate ICFR for the company and a statement identifying the control framework used by management to conduct the required evaluation of the effectiveness of the company’s internal control over financial reporting.
While on the duty of External Auditors to report on internal controls of public companies, SEC requires that the external auditor of a public company shall issue a statement as to the existence, adequacy and effectiveness or otherwise of the internal control system of the public company and the report shall be close to the corresponding attestation report (opinion page) issued by the company’s external auditor as a result of the normal audit, or in a portion of the document immediately preceding the company’s financial statement.
