Banks audited financial statement to be ISA 701 compliant – CBN

Central Bank of Nigeria (CBN) has directed that auditors’ reports accompanying audited financial statements of all banks should be compliant with International Standard on Auditing (ISA) 701 – communicating Key Audit Matters in the Independent Auditor’s reports of the Financial Reporting Council of Nigeria (FRCN).
The FRCN requires independent auditors of listed and unlisted entities to comply with the requirements of ISA 701 for audit financial statements for periods ending on or after December 15, 2016 and June 30, 2017, respectively.
Consequently, the CBN said it had obtained the concurrence of the FRCN for external auditors of all banks (both listed and unlisted to comply with the requirements of the new standard for audits of financial statements).
In a circular to all banks and their external auditors, signed by Balogun K. O. for director of banking supervision, the CBN explained that the move was to create a level playing field for the implementation of ISA 701 in the Nigerian banking industry.