Shareholders under the aegis of Ibadan Zone Shareholders Association, IZSA, have called for a review of tenure of members of audit committee of quoted companies to a period of three years.

They also said that there is need for the Securities and Exchange Commission, SEC, to review the cost of registering proxies and stamp duty cost.

The association’s chairman, Chief Sola Abodunrin, made the call while presenting a paper ‘Election  into Audit Committee: Nigerian Experience’ at a one-day seminar put together by the association to upgrade the knowledge of its members on the roles and responsibilities of audit committee members.

He stated that the tenure elongation from one year period initially allowed would stabilise the committee and make for continuity in the performance of their duty.

Abodunrin, however, regretted the fact that those seeking election into audit committee are not financially literate to successfully perform the role, saying that qualification for election into audit committee in Nigeria is based on nothing other than nomination within 21days of annual general meetings and voting.

According to him, “There is need therefore to formulate conditions precedent as qualification for whoever is seeking election as audit committee member. Companies must not be partisan on who is elected as audit committee member and all necessary facilities must be provided to back up the audit committee.”

Also speaking at the event, Mr. Soji Arimoro, a chartered accountant with Baker Tilly Nigeria Ltd, said that there is need for companies to invest on training of audit members to empower them with necessary skills to carry out the duty effectively.

He insisted that it takes commitment, high sense of responsibility and high level of integrity for members to succeed in their duty of assisting the board of companies in financial control and reporting, internal control, corporate governance, as well as ethics and whistle blowing.

In his own submission, Mr. David Aneni, an accountant, also from Baker Tilly explained that audit committee members play a critical role of serving as checks and balances on a company’s financial reporting system, while stressing that members should be skillful and dedicated to the job.

He recommended that Board of Directors and audit committee members should be pro-active, informed, investigative, accountable, independent, committed and knowledgeable to ensure financial credibility and transparency.

He enumerated the attributes to audit committee members to include: financial knowledge and independence, high level of integrity, possession of courage to challenge answers that do not appear right or appropriate, knowledge of the company’s risk and controls and ability to offer new perceptive and constructive suggestions.