Consolidating your knowledge about consolidated accounts

Part one, section 3 (Books of Account) shall provide these details as follows: Section 3: BOOKS OF ACCOUNT 1.

(1) Every bank shall cause to be kept proper books of account with respect to all the transactions of the bank.

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(3) Any person being a director of any bank who fails to take all reasonable steps to secure compliance with any of the provisions of this section in respect of any accounts is guilty of an offence and liable on conviction to a fine of any account is guilty of an offence and liable on conviction to a fine of 10,000 or to imprisonment for 5 years or to both such fine and imprisonment. (1) Every bank shall appoint annually a person approved by the Bank, in this section referred to as “the approved auditor” whose duties shall be to make to the shareholders a report upon the annual balance sheet and profit and loss account of the bank and every such report shall contain statement as to the matters and such other information as may be prescribed, from time to time, by the Bank.The regulatory authorities, on their part, would further streamline the regulatory framework and strengthen the supervisory capacity to ensure a sound and efficient system.STATEMENT OF PROBLEMS The focal point is centred on providing the framework as stipulated by the Bank and Other Financial Institution Act (BOFIA) on the legal and regulatory requirements for the banking industry.(2) For the purpose of this section, the approved auditor shall be an auditor who is- (a) a member of one of the professional bodies recognised in Nigeria; (b) Approved by the Bank; (c) Residents in Nigeria; and (d) Carrying on in Nigeria professional practice as accountant and auditor.(3) Any person – (a) Having any interest in a bank otherwise than as a depositor; or (b) Who is a director, officer or agent of a bank; or (c) Which is a firm in which a director of a bank has any interest as partner or director; or (d) Who is indebted to a bank, shall not be eligible for appointment as the approved auditor for any bank.

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