GUIDELINES TO THE APPOINTMENT OF AUDITORS TO AUDIT GOVT. PARASTATALS, AGENCY ETC

Office of the Auditor General for the Federation

Guidelines on the Appointment of Auditors to Audit the Accounts of Federal Government Parastatals, Agencies and Commissions

In line with the provision of section 85(3)(a) of the constitution of the Federal Republic of Nigeria, 1999, and the relevant sectors of the enabling acts of the various parastatals, Statutory corporations, commissions and agencies, the following guidelines must be followed In the appointment of Auditors to audit the account of Federal Government Parastatals, Agencies and Commissions.

A) Registration
The audit firm to be appointed must have been registered or renewed its registration with the Office of the Auditor-General of the Federation in the year for which appointment or renewal of appointment is being sought, as evidenced by the list of accredited firms issued by the Office of the Auditor-General for the Federation .

B) Tenure of the Auditor
The tenure of the Appointed Auditor should be one year in the first instance, renewable annual subject to satisfactory performance for 3 years and on no account should annual renewal extend the total tenure of the appointed firm or firms beyond 5 years. This is to ensure that the independence of the auditor is not placed in jeopardy.

C) Fees
Quotations based on the scale on the scale of fees issued by the Institute of Chartered Accountant if Nigeria (ICAN) should be obtained from at least three audit firms from the list of accredited firms issued by the office of the Auditor-General for the Federation in determining the fee to be paid as part of the final selection process. The fee so agreed upon or re-negotiated should together with the comparative figure, be forwarded to this Office for clearance.

D) Personel Not qualified to be appointed as auditor
The following persons cannot be appointed as auditors of Federal Government Parastatals, Agencies and commissions
(i) An Officer or servant of the Parastatal, Agency or commission
(ii)A person who is a partner of or in the employment of an officer or servant of the parastatals, Agency or commission
(iii) A person who is an auditor of a company where a principal officer or servant of the parastatal is a director
(iv) A person having personal relationship with an officer or servant of the Parastatal, Agency or Commission. Personal relationship for this purpose include mutual business interests, close friendship and relationship by blood or marriage
(v) A person who is a contractor to the Parastatal, Agency or Commission or a relation or nominee of a contractor t the Parastatal, Agency or commission