Best Accounting & Auditing Lawyers in Jikoyi

About Accounting & Auditing Law in Jikoyi, Nigeria

Accounting and auditing in Jikoyi are governed by Nigeria-wide company law, financial reporting rules, tax legislation, and professional standards. Jikoyi is within the Federal Capital Territory, so federal laws and Federal Capital Territory tax administration apply. Accounting refers to maintaining accurate financial records and preparing financial statements. Auditing is an independent examination of those statements to provide assurance to owners, regulators, lenders, donors, and the public. In Nigeria, companies generally prepare financial statements under International Financial Reporting Standards as adopted locally, and audits are conducted using International Standards on Auditing. Oversight is shared by bodies such as the Corporate Affairs Commission, the Financial Reporting Council of Nigeria, the Federal Inland Revenue Service, and, for personal income tax in the FCT, the Federal Capital Territory Internal Revenue Service. Sector regulators like the Central Bank of Nigeria and the Securities and Exchange Commission impose additional requirements on regulated entities.

Why You May Need a Lawyer

You may need a lawyer when the stakes include regulatory exposure, disputes, or complex contracts. Common situations include negotiating and documenting the engagement terms with an auditor, handling a Federal Inland Revenue Service or Federal Capital Territory Internal Revenue Service tax audit or investigation, responding to queries from the Financial Reporting Council of Nigeria about audit quality or financial reporting, dealing with shareholder disputes about misstated accounts or alleged director misconduct, investigating and remediating fraud or internal control failures, navigating disclosures and governance for public or regulated companies, addressing data protection or money laundering compliance in finance functions, resolving disagreements over auditor independence or removal, structuring mergers, acquisitions, or restructurings that hinge on accurate financial statements, and preparing for donor or grant audits for non-profits. A lawyer can map legal obligations, coordinate with your accountants, preserve privilege during sensitive investigations, and help you avoid penalties and reputational risk.

Local Laws Overview

Companies and Allied Matters Act 2020 sets the core company law framework. Directors must keep adequate accounting records, prepare financial statements, and present them to members. Small companies and single shareholder companies are exempt from appointing auditors, subject to conditions in the Act. Public companies must have an audit committee and appoint external auditors. Special rules apply to regulated sectors, public companies, and groups.

Financial Reporting Council of Nigeria Act establishes the Financial Reporting Council of Nigeria, which approves accounting and auditing standards in Nigeria. Nigeria applies International Financial Reporting Standards for most entities and permits IFRS for SMEs where appropriate. Auditors and audit firms are subject to registration and monitoring by the Financial Reporting Council of Nigeria in addition to their professional bodies.

Auditing standards are the International Standards on Auditing as adopted in Nigeria. Independence and ethics requirements are informed by the International Code of Ethics for Professional Accountants as adopted locally. Certain regulators impose stricter rotation or independence rules for specific sectors such as banking and insurance, and many public interest entities adopt policies like five year lead partner rotation and 10 year firm rotation.

Tax laws include the Companies Income Tax Act, the Personal Income Tax Act, the Value Added Tax Act, the Federal Inland Revenue Service Establishment Act, the Stamp Duties Act, and annual Finance Acts that update tax rules. The Federal Inland Revenue Service administers federal taxes such as companies income tax, value added tax, and withholding tax. The Federal Capital Territory Internal Revenue Service administers personal income tax and pay as you earn in the FCT. Filing and payment timelines vary by tax. Companies income tax returns are generally due within six months after the accounting year end or 18 months after incorporation, whichever is later. Value added tax and withholding tax returns and remittances are commonly due monthly in the following month. Pay as you earn remittances are commonly due the following month to the Federal Capital Territory Internal Revenue Service.

Anti money laundering compliance is governed by the Money Laundering Prevention and Prohibition Act 2022 and related regulations. Businesses must implement customer due diligence, record keeping, suspicious transaction reporting where applicable, and internal controls. Accountants and auditors also have professional responsibilities related to anti money laundering compliance.

Sector specific rules may apply. The Central Bank of Nigeria sets prudential and disclosure standards for banks and other financial institutions. The Securities and Exchange Commission sets financial reporting and disclosure rules for public companies and market operators. The National Insurance Commission and the National Pension Commission impose reporting requirements on insurers and pension operators.

Data protection is governed by the Nigeria Data Protection Act 2023. Finance functions and auditors must manage personal data lawfully, implement appropriate security, and notify authorities and affected persons of qualifying data breaches.

Public sector interactions have additional layers. If your business supplies government entities in the Federal Capital Territory, public procurement and audit rules may affect your documentation and post award audits. Keep meticulous records of bids, contracts, deliveries, and payments.

At the local level around Jikoyi within the Abuja Municipal Area Council, you may need business premises permits and to comply with local levies administered by the council. Maintain proper books to support local assessments and to reconcile with federal and territorial tax filings.

Frequently Asked Questions

Does my small company need a statutory audit in Nigeria?

CAMA 2020 exempts small companies and single shareholder companies from appointing auditors if they meet the Act’s definition of small and are not part of a group and are not in a regulated sector. If you are a public company, a regulated entity, part of a group, or do not meet the small company thresholds, you must appoint auditors. Many lenders and donors require audited financial statements even when the law does not.

Who is legally allowed to sign an audit report in Nigeria?

Only a qualified auditor in public practice may sign. In practice, this means a member of a recognized professional body such as the Institute of Chartered Accountants of Nigeria or the Association of National Accountants of Nigeria who holds a current practice license and whose firm and responsible partner are registered with the Financial Reporting Council of Nigeria. The auditor’s Financial Reporting Council registration number is typically included in the audit report.

What accounting standards apply to my business?

Nigeria has adopted International Financial Reporting Standards. Public interest entities and larger companies use full IFRS. Smaller entities may apply IFRS for SMEs if permitted and appropriate. Sector regulators may impose specific presentation or disclosure formats in addition to IFRS. Your auditor or accountant can assess the right framework based on your size, sector, and financing needs.

How long must I keep accounting and tax records?

Keep accounting and tax records for at least six years. This typically includes source documents, ledgers, financial statements, tax computations, and filed returns. If there is an ongoing dispute, investigation, or suspicion of fraud, retain records longer. Electronic records should be backed up and accessible in a readable format.

What filings and taxes should a typical small business in Jikoyi expect?

Expect to file companies income tax returns if incorporated as a company, value added tax returns if you are VATable, withholding tax returns when you deduct tax at source, and pay as you earn payroll remittances for employees to the Federal Capital Territory Internal Revenue Service. Annual returns to the Corporate Affairs Commission are also required. Filing dates and applicable rates can change through Finance Acts, so confirm current deadlines before filing.

What triggers a tax audit and how should I respond?

Triggers include late or inconsistent filings, sudden changes in turnover or profit, high input VAT claims, non remittance of withholding tax, and third party information. Respond promptly and professionally. Engage your accountant and a tax lawyer early, gather all requested documents, provide explanations in writing, and keep a clear record of what was provided. If you disagree with an assessment, there are formal objection and appeal routes with strict timelines.

What is the difference between an audit, a review, and agreed upon procedures?

An audit provides reasonable assurance that financial statements are free of material misstatement and results in an audit opinion. A review provides limited assurance using inquiry and analytical procedures and results in a review conclusion. Agreed upon procedures provide factual findings on specific items with no assurance. Choose based on statutory requirements, stakeholder expectations, and cost benefit.

How do I change or remove my auditor?

Follow CAMA procedures and your company’s articles. Typically the board proposes and shareholders approve the appointment or removal at a general meeting. Give proper notice, document reasons, and ensure the outgoing auditor has the opportunity to make representations to members if they wish. Notify the Corporate Affairs Commission and relevant regulators where required and manage handover to preserve audit quality.

How are payments to or from non residents treated for tax and VAT?

Payments to non residents for services such as management, technical, or consultancy fees often attract withholding tax, and imported services may be subject to value added tax under reverse charge. Significant economic presence rules can deem certain non residents taxable in Nigeria. Double tax treaties can affect rates and reliefs. Obtain advice before contracting to avoid unexpected gross up costs.

What internal controls should small businesses prioritize to stay compliant?

Prioritize segregation of duties over cash and bank, documented approval limits, three way matching for purchases, timely bank reconciliations, numbered invoices and receipts, payroll controls with documented employment records and pay as you earn remittances, fixed asset registers, inventory counts, and a monthly close checklist. Back up data, restrict access, and train staff on tax and anti money laundering procedures.

Additional Resources

Corporate Affairs Commission. Registers companies and receives annual returns and certain corporate filings.

Financial Reporting Council of Nigeria. Sets and enforces accounting, auditing, and corporate governance frameworks and registers audit firms and partners.

Federal Inland Revenue Service. Administers companies income tax, value added tax, withholding tax, and other federal taxes. Handles audits and objections for federal taxes.

Federal Capital Territory Internal Revenue Service. Administers personal income tax and pay as you earn for the Federal Capital Territory.

Abuja Municipal Area Council Revenue Department. Handles local business premises permits and certain local levies relevant around Jikoyi.

Institute of Chartered Accountants of Nigeria and Association of National Accountants of Nigeria. Professional bodies for accountants and auditors with practice regulations and member directories.

Securities and Exchange Commission. Regulates public companies and capital market operators with additional reporting requirements.

Central Bank of Nigeria, National Insurance Commission, and National Pension Commission. Sector regulators that set reporting rules for banks, insurers, and pension operators respectively.

Nigeria Data Protection Commission. Supervises compliance with the Nigeria Data Protection Act in finance and audit processes that involve personal data.

Economic and Financial Crimes Commission and Nigerian Financial Intelligence Unit. Bodies involved in anti corruption and anti money laundering compliance and reporting.

Next Steps

Clarify your objective, such as meeting a statutory audit requirement, preparing for a tax audit, improving internal controls, or resolving a dispute. List your key timelines, stakeholders, and potential risks.

Assemble core documents. Gather incorporation documents, board resolutions, trial balance, general ledger, bank statements, tax filings and receipts, contracts, payroll records, fixed asset registers, inventory records, and prior audit or review reports.

Engage the right professionals. For legal issues, consult a lawyer experienced in accounting and auditing law within the Federal Capital Territory. Coordinate with a licensed accountant or auditor who has current Financial Reporting Council of Nigeria registration.

Define scope and terms in writing. Use an engagement letter that spells out scope, responsibilities, timelines, fees, confidentiality, independence safeguards, and dispute resolution. Ensure your board or members approve appointments where required.

Set a compliance calendar. Map monthly, quarterly, and annual filings for value added tax, withholding tax, pay as you earn, companies income tax, and Corporate Affairs Commission returns. Assign owners and due dates and build reminders.

Prepare for reviews and audits. Close your books monthly, reconcile key accounts, document judgments and estimates, and maintain audit-ready files. If a regulator notifies you of an audit, involve your lawyer immediately and track every communication.

Address findings and remediate. If issues are identified, implement corrective actions, update policies, train staff, and consider voluntary disclosures where appropriate to reduce penalties.

Revisit governance. For growing entities, consider strengthening your board oversight, establishing an audit committee where applicable, and adopting or updating a finance manual aligned with Nigerian standards and your sector’s rules.

This guide provides general information to help you get oriented. Your specific facts and sector can change the analysis, so seek tailored legal and professional advice before taking action.