In Nigeria’s evolving business landscape, trust and transparency are not optional they are legal obligations. At the center of this framework is the statutory audit: an independent examination of a company’s financial statements to ensure they present a true and fair view of its financial position.

 The Legal Foundation

Statutory audits in Nigeria are primarily governed by:
• Companies and Allied Matters Act 2020 (CAMA 2020)
• Financial Reporting Council of Nigeria Act 2011 (as amended)
• Investments and Securities Act 2007

Under CAMA 2020, all companies must be audited annually, except small companies that meet specific revenue, asset, and employee thresholds for two consecutive years.

 Who Must Be Audited?

 Public companies – always

 Regulated entities (banking, insurance, pensions, etc.)

 Companies exceeding small-company thresholds

Even where exemptions apply, banks, investors, and regulators often still require audited accounts.

 The Audit Process (Simplified)
1. Appointment of a qualified, independent auditor (ICAN/FRC compliant)
2. Review of financial records and internal controls
3. Issuance of an audit opinion (Clean, Qualified, Adverse, or Disclaimer)
4. Filing audited accounts with the CAC

 Why Compliance Matters

Failure to comply can lead to:
• Fines and regulatory sanctions
• Inability to file annual returns
• Loss of investor and lender confidence

 Beyond Compliance: The Real Value

A statutory audit:
• Enhances credibility
• Strengthens internal controls
• Improves decision-making
• Facilitates access to capital
• Deters fraud and mismanagement

Bottom Line:
A statutory audit is not just a legal requirement — it’s a strategic business tool and a pillar of corporate governance.

Engage a reputable, FRC-licensed audit firm early and maintain organized financial records throughout the year.