By Babajide Komolafe

Shareholders have called for the amendment of the Companies and Allied Act (CAMA) law to allow remuneration for audit committee members.

“The Act says that the audit committee members are not to be rewarded. This is a dysfunctional piece of law because it puts the audit committee members at the mercy of business managers who offer to bear the cost of audit committee members as a favour for which they are expect to be rewarded by the committee members’ indifference to the managers’ failings and misstatements.

An oversight role can only be frustrated by such a pressure.” said Chief Timothy Adesiyan, President, Nigerian Shareholders Solidarity Association (NSSA) and Sir Sunny Nwosu, President, Independent Shareholders Association of Nigeria.

In a statement presented as co-chairmen at the annual Audit Committee Roundtable, organized by the Audit Committee Institute (ACI), they averred that there is need to strengthen and empower audit committee so that they can effectively play their statutory roles.

Speaking on the theme of the Roundtable, which was “and Detecting Financial Reporting Fraud”, they said that, “Deterring and detecting financial reporting fraud is a shared governance responsibility. The Audit Committee strongly shares in this responsibility.

Overseeing the financial reporting process is a great responsibility with variable challenges. To meet these challenges, audit committees need to informed, bold and active, with the right skill sets available in and to the committee.

This Audit Committee Roundtable is expected to illuminate the scope of emerging expectations of audit committee responsibilities for deterring and detecting financial reporting fraud, and to make input into governance reforms in the country.