Best Accounting & Auditing Lawyers in Jikoyi

About Accounting & Auditing Law in Jikoyi, Nigeria

Accounting and auditing in Jikoyi operate under Nigeria wide rules because Jikoyi is part of the Federal Capital Territory. Businesses and not for profits must keep proper books, prepare financial statements, pay and file taxes, and in some cases undergo statutory audits. The core legal pillars include the Companies and Allied Matters Act 2020, the Financial Reporting Council of Nigeria Act, Nigerian Financial Reporting Standards which are based on IFRS, and the Nigerian Standards on Auditing. Sector specific rules apply to banks, insurers, and pension operators. Federal tax administration is handled mainly by the Federal Inland Revenue Service, while personal income tax and certain local taxes in the FCT are handled by the FCT Internal Revenue Service.

Only qualified professionals can sign audit reports in Nigeria. Audit partners and firms must be registered with the Financial Reporting Council of Nigeria and be members of professional bodies such as the Institute of Chartered Accountants of Nigeria or the Association of National Accountants of Nigeria. Public interest entities such as listed companies, banks, and insurers have stricter reporting, audit, and governance requirements than micro and small businesses.

Why You May Need a Lawyer

You may need a lawyer when forming a company and setting up accounting and governance structures so you comply with the Companies and Allied Matters Act from day one. Legal advice is useful when determining whether your business qualifies for audit exemption, drafting an auditor engagement letter, or changing an auditor. A lawyer can help manage tax risk during a Federal Inland Revenue Service or FCT Internal Revenue Service audit, respond to information requests, negotiate settlements, and pursue objections and appeals.

Lawyers assist when shareholders or directors dispute financial statements, dividends, or suspected misstatements. In regulated sectors such as banking, insurance, pensions, and capital markets, counsel helps you navigate additional rules on auditor independence, audit committee oversight, and auditor rotation. If fraud, money laundering, or asset misappropriation is suspected, lawyers coordinate internal investigations, evidence preservation, whistleblowing protections, reporting to regulators, and recovery actions. During mergers, acquisitions, or investments, lawyers work with accountants to structure deals, perform financial and tax due diligence, and draft warranties and indemnities that align with audit findings.

Local Laws Overview

Companies and Allied Matters Act 2020. This law governs bookkeeping, preparation and approval of financial statements, appointment and removal of auditors, directors duties, and annual general meetings. It introduced audit exemption for small companies and for companies that have not carried on business since incorporation for the relevant financial year. Public companies must maintain an audit committee that includes shareholders and non executive directors. The Act sets the framework for auditor independence, access to company records, and the contents of audit reports.

Financial Reporting Council of Nigeria Act and the Nigerian Code of Corporate Governance 2018. These set reporting frameworks and governance expectations. Professionals who sign financial statements and audit reports must register with the Financial Reporting Council and use their FRC registration numbers. Public interest entities are expected to follow stricter governance, internal control, and disclosure practices, including audit partner rotation and robust audit committee oversight.

Accounting standards. Nigeria applies International Financial Reporting Standards. Listed companies and public interest entities use full IFRS. Small and medium sized entities may apply IFRS for SMEs. Public sector entities generally use IPSAS. Auditors apply Nigerian Standards on Auditing which are based on the International Standards on Auditing.

Tax laws and audits. Federal taxes such as companies income tax, value added tax, withholding tax, and capital gains tax are administered by the Federal Inland Revenue Service. FIRS conducts desk reviews and field audits that examine invoices, bank statements, fixed asset registers, payroll, and contracts. Personal income tax on employment and unincorporated businesses in the FCT is administered by the FCT Internal Revenue Service. Transfer pricing rules require contemporaneous documentation for related party transactions. Late filing and late payment attract penalties and interest.

Anti money laundering. The Money Laundering Prevention and Prohibition Act and oversight by the Special Control Unit Against Money Laundering apply to designated non financial businesses and professions, including accounting firms. Businesses must perform customer due diligence, keep records, and file reports of suspicious transactions to the Nigerian Financial Intelligence Unit through the prescribed channels.

Sector specific rules. Banks, insurers, pension fund administrators, and capital market operators must follow circulars and codes issued by their regulators such as the Central Bank of Nigeria, National Insurance Commission, National Pension Commission, and the Securities and Exchange Commission. These rules often include stricter auditor independence, audit firm rotation, and disclosure obligations.

Data protection. Auditors and companies that process personal data must comply with the Nigeria Data Protection framework, including lawful basis for processing, privacy notices, and security safeguards.

Frequently Asked Questions

Do small companies in Jikoyi need audited financial statements

Under the Companies and Allied Matters Act 2020, a small company and a company that has not carried on business since incorporation may be exempt from appointing auditors for that financial year if it meets the statutory criteria. Even when exempt, the company must still keep proper books and prepare financial statements that comply with the relevant accounting standards. Regulated entities and companies seeking loans or investment often need audited accounts regardless of the exemption.

How do we appoint or change an external auditor

Directors propose the auditor and the members approve the appointment, usually at the annual general meeting. The engagement should set scope, fees, timelines, and independence confirmations. To remove or replace an auditor, the company must follow statutory notice procedures and allow the outgoing auditor to make written representations. A lawyer can ensure the process complies with the Companies and Allied Matters Act and that filings at the Corporate Affairs Commission are updated.

What accounting standards apply to my business

Listed and other public interest entities use full IFRS. Many small and medium sized entities may use IFRS for SMEs if eligible. Public sector entities generally apply IPSAS. The choice should be documented in your accounting policies and applied consistently.

What should I expect during a tax audit by FIRS

FIRS typically issues a notice outlining the years under review and requests documents such as financial statements, ledgers, bank statements, contracts, sales and purchase invoices, payroll records, and fixed asset registers. Fieldwork may occur at your premises. After review, FIRS issues a report or assessment. You can accept and pay, reconcile differences, or file an objection within the statutory timeline. Legal and tax advisers help manage responses, preserve privilege, and pursue appeals if needed.

How long must I keep accounting records

Tax laws require you to keep books, records, and supporting documents for at least six years after the end of the accounting period to which they relate or for longer if a dispute is ongoing. Good practice is to maintain secure, retrievable electronic and physical records for all material transactions.

Are audit firms and audit partners required to register with the Financial Reporting Council

Yes. Individuals who sign audit reports and the firms they represent must be registered with the Financial Reporting Council of Nigeria. The auditor includes an FRC registration number on the audit report. Failure to register or to display the number can trigger sanctions.

What is an audit committee and do I need one

Public companies are required to have an audit committee that oversees financial reporting, internal controls, and the external audit. Its membership includes shareholders and non executive directors as prescribed by law. Private companies are not generally required to constitute an audit committee, but many adopt similar oversight structures as a governance best practice.

How are related party transactions treated in Nigeria

Related party transactions must be disclosed in the financial statements under IFRS and must be conducted at arm length. For tax purposes, Nigerian transfer pricing regulations require contemporaneous documentation supporting pricing for controlled transactions. Failure to maintain documentation can lead to adjustments, penalties, and interest.

What are the deadlines and penalties for VAT and companies income tax filings

VAT returns are due monthly, typically on or before the 21st day of the month following the transaction month. Companies income tax returns are due not later than six months after the accounting year end or 18 months after incorporation, whichever is earlier for the first return. Finance Act changes increased late filing penalties, for example N50,000 for the first month of default and N25,000 for each subsequent month for VAT and companies income tax, in addition to interest. Always confirm current rates before filing.

Can auditors or accountants report suspected fraud or money laundering

Auditors report to the company members and may communicate significant irregularities to regulators in specific circumstances permitted by law. Under anti money laundering rules, designated professionals and businesses must file suspicious transaction reports with the Nigerian Financial Intelligence Unit through the required channels. Lawyers can help you balance confidentiality, privilege, and mandatory reporting duties.

Additional Resources

Federal Inland Revenue Service. For federal tax registration, filing, and audits.

FCT Internal Revenue Service. For personal income tax, PAYE, and other FCT administered taxes in Jikoyi.

Corporate Affairs Commission. For company incorporation, annual returns, and statutory filings.

Financial Reporting Council of Nigeria. For registration of professionals, monitoring of financial reporting, and governance guidance.

Institute of Chartered Accountants of Nigeria and Association of National Accountants of Nigeria. For practitioner regulation and professional standards.

Securities and Exchange Commission, Central Bank of Nigeria, National Insurance Commission, and National Pension Commission. For sector specific audit and reporting requirements.

Special Control Unit Against Money Laundering and Nigerian Financial Intelligence Unit. For AML compliance guidance and reporting.

Next Steps

Define your objective. Clarify whether you need help with statutory compliance, preparing for an audit, responding to a tax inquiry, investigating a financial issue, or supporting a transaction.

Gather documents. Collect incorporation documents, prior financial statements, trial balances, bank statements, tax filings, contracts, payroll records, and any correspondence from regulators.

Consult qualified professionals. Engage a lawyer experienced in accounting and auditing matters in Abuja and, where appropriate, an ICAN or ANAN qualified accountant or auditor. Ask about scope, timelines, fees, and confidentiality before you begin.

Map your compliance calendar. Note deadlines for VAT, withholding tax, companies income tax, annual returns at the Corporate Affairs Commission, and any sector specific filings. Assign responsibility for each deadline.

Strengthen controls. Implement or update accounting policies, segregation of duties, document retention, and approval workflows. Consider internal audit or an independent review to identify gaps early.

Document decisions. Keep board and management minutes, auditor engagement letters, and legal advice on file. Proper documentation helps demonstrate compliance and reduces risk during reviews or disputes.

If you receive a regulatory notice. Do not ignore it. Check the response deadline, seek legal advice immediately, acknowledge receipt if appropriate, and respond with accurate, complete information.