The changes in accounting practices and procedures

Compiled and Presented
BY
Godwin Emmanuel OYEDOKUN
(HND, BSc.Ed, MBA, MSc (Acct), MTP (SA), ACA, ACIB, AMNIM, FCTI, FCFIP, CFA, CFE, CPFA, ACCA-CertIFR)
Asst. Director (Head) – Education, Research & Technical Directorate
The Chartered Institute of Taxation Of Nigeria (CITN)
DL: +2348033737184, +2348095491026, +2348055863944
godwinoye@yahoo.com, info@ogecops.com
Being a paper presented at the Annual Seminar of
Nigerian Universities Accounting Students' Association
Osun State University Chapter, Okuku Campus, Osun State. Nigeria
On August 12, 2014
The Changes in Accounting Practices and Procedure:
An appraisal of the related Current Issues and the
expected role of Accountants

2
The Facilitator- “Nemo Dat Quod Non Habet”
Godwin Emmanuel Oyedokun, HND, BSc.Ed, MBA, MSc (Acct), MTP (SA), ACA, ACTI, ACIB, AMNIM, CNA, FCFIP, CICA, CFA,CFE, CPFA,
ABR, CertIFR
Assistant Director (Head) – Education, Research & Technical Directorate of The Chartered Institute
of Taxation of Nigeria (CITN)
Godwin is an Experience Certified Forensic Accountant, Certified Fraud Examiner, Certified Forensic
Investigator, Chartered Accountant, National Accountant, Chartered Tax Professional, Chartered Banker,
Chartered Manager, Insolvency Practitioner, and Financial Analyst of good repute. A registered Professional
in Nigeria with the Financial Reporting Council of Nigeria (FRC).
He also holds a Certificate in International Financial Reporting (CertIFR) of Association of Certified
Chartered Accountant (ACCA)
Godwin attended Osun State College of Technology Esa- Oke Osun State of Nigeria for his National
Diploma (ND) and Higher National Diploma (HND Upper Credit) in Financial Studies and Accountancy
respectively in some 16 years ago.
Also, he holds B.Sc. Ed in Accounting at University of Ado- Ekiti, (now Ekiti State University) Nigeria. He
bagged his MBA in Finance & Accounting at Olabisi Onabanjo University, Ogun State of Nigeria in
2006/2007 academic sessions and graduated with merit. He is currently awaiting his result of MSc.
Accounting of Babcock University, while is also currently an MSc Business & Applied Economics (Finance
option) student of Olabisi Onabanjo University.
He is a seasoned scholar-professional who is currently serving as an Advisory Council Member of
Association of Fraud Examiner (ACFE), Austin, USA, and Vice President of Nigeria Chapter of same
Association. He is the Membership Mobilization Director for Africa for the International Institute of Certified
Forensic Investigation Professional Inc. (IICFIP) USA.

3
The Facilitator- “Nemo Dat Quod Non Habet”
Godwin is a leader in Forensic Accounting and Fraud Investigation, he is a sought after intellectual, who has
presented over 195 technical papers in various Training/Seminars on Forensic Accounting, Fraud
Investigation, Internal Audit & Control, Risk Management, IFRS, ICT, Strategic Management, Finance &
Accounting related subjects. He is also an Examiner to The Chartered Institute of Bankers of Nigeria (CIBN)
on “Introduction to Financial Accounting (FA)” and “Information Communication Technology (ICT)”
He has been trained on Forensic Accounting, Accountancy and Fraud Investigation and other Finance &
Accounting related courses, in Ghana, Senegal, Liberia, Kenya, Cote d’Ivore, Canada- Toronto, at some
States in United State of American and in Nigeria including Lagos Business School of Pan Atlantic
University.
He was the Assistant Director (Head) – Finance & ICT of The Chartered Institute of Taxation of Nigeria
(CITN).
He is the Chief Technical Consultant to OGE & CO Professional Services Ltd. (a firm of Forensic Accounts,
Fraud Investigators, Finance and Management Consultants www.ogecops.com) and A & D Forensic
Consults Ltd. Nigeria (www.adforensicconsults.com).
Godwin was given a meritorious award by the Students’ Union Government of Osun State College of
Technology on October 5, 2013 and he was also given a special recognition and installed as one of the
Patrons of Nigeria University Accounting Students’ Association (NUASA), Obafemi Awolowo University
Chapter on March 28, 2014.
For his contributions to humanity, Godwin was honoured with a Chieftaincy title (Chief in Council) as
Otun-Mayegun of Apomu Land of Owu Kingdom, Ogun State. Nigeria on November 23, 2013.
Godwin is happily married with Children
“Nemo Dat Quod Non Habet”

Protocol & Appreciations
 I wish to appreciate the entire students of accounting
department of Osun State University and most especially the
leadership of the University’s NUASA executives ably led by
my brother, Mr. Samuel Egesi for this good initiative.
 My appreciation also goes to my Dad Professor Dayo
Akintayo the Dean FMS and Senior Colleagues, Mr. Adebayo
Aderemi Olalere, FCA, the HOD and the Ag. HOD, Mr.
Gbadebo A. Okeyooyin, also I wish to appreciate all our
lecture in this Faculty but permit me to mention but few in
no particular order, Mr. Feyi Oluwaremi, (Patron NUASA),
Mr. Fatoki Ishola, Mr. Odelabu Temitope, Mr. Oyewole J.
Olusegun, Mr. Sunday Sasona, Mr. Lawal B. Akeem, Mr.
Daramola Sunday Peter, Ms. Olojido O. Esther. Thank you
for being there for us.

This presentation will cover the following major sub topics:
General Introduction IFRS & IPSA
Forensic Accounting and related terms
Environmental Accounting & Audit
Social Accounting & Audit
International Accounting & Auditing
Petroleum Accounting
Green Washing & Taxation
Conclusion
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Contents

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“The hardest thing in the world to understand is
income tax”
Albert Einstein
“The reasonable man adapts himself to the
world; the unreasonable man persists in trying to
adapt the world to himself. Therefore, all
progress depends on the unreasonable man.”
GEORGE BERNARD SHAW
Quotes

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• The role of accountants in this modern day is changing by the day.
• I remember during my school days that we were thought Statement of Accounting Standards
SASs, also, gone are the days where ICAN was in charge of these Standards, Nigeria
Accounting Standard Board (NASB) was taken over by Government, but in year 2011,
another was the story and it is now known as Financial Reporting Council (FRC).
• Courses like Environmental Accounting, Petroleum Accounting, Forensic Accounting,
Environmental Taxation, Econometrics, IFRS, ISA, are now part of the Curriculum in the
Accounting Course.
• I remember how I was struggling with these courses during my MSc Accounting programme
at Babcock University unlike fresh graduate who were taught during their undergraduate
programme
• My dear brothers and sister, go are the days where students should be happy if their
lecturers are on able to complete their course Syllabi before the semester exams.
• The truth of the matter is that you as a graduate would be expected to know much in order to
sustain this get age which is full of knowledge demands,.
• How will you place my 6 years old boy who is already using iPad, GSM and can use both
touch screen devices and keypad mobile devices?
Introduction

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• The continuous spread of global integration and increase in demand for
international trade and investments among various countries and multinational
corporations has necessitated the need for cross-national co-operation
enhancement and international comparability.
• First it was accounting standards, now auditing standards have been identified to
play a major role in the comparability and analysis of audited financial statements
emanating from different countries around the world irrespective of barriers in
languages and culture.
• At the moment, the audit reports emanating from different jurisdictions can use the
same form of words, but there is no guarantee that the same amount or even the
same audit work has been performed.
• If auditing is standardized, then the finance director and investor will know that not
only were the words the same but they meant the same.
Introduction

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• Those who perform audits of financial statements independently in
order to be able to express an opinion on whether those financial
statements provide true and fair view and are drawn up in accordance
with the applicable financial reporting framework referred to as Public
accountants or external auditors.
• An external auditor is an audit professional who performs an audit in
accordance with specific laws or rules on financial statement of a
company, government entity, other legal entity or organization, and who
is independent of the entity being audited.
• The manner of appointment, the qualifications and the format of
reporting by an external auditor is defined by statute which varies
according to jurisdiction of different countries.
Introduction

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“The illiterate of the 21st century will not be those who cannot read or
write but those who cannot learn, unlearn and relearn.”
ALVIN TOFFLER
Quotes

13
• Permit me to ask you all this question:
• Who is an Accountant?
• Someone that studied accounting at Polytechnic or University?
• Ok, let us try it together!!!!
• An accountant is a practitioner of accounting or accountancy, which is the
measurement, disclosure or provision of assurance about financial information that helps
managers, investors, tax authorities and others make decisions about allocating
resources. (en.wikipedia.org/wiki/Accountant)
• A professional person who performs accounting functions such as audits or financial
statement analysis.
• Accountants can either be employed with an accounting firm, a large company with an
internal accounting department, or can set up an individual practice. (Investopedia.com)
• Can you now try the question below?
• What Role Does an Accountant Play in Business Operations?
Accountant

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• There has been a concerted convergence effort between the Generally Accepted
Accounting Principles (GAAP) and the International Financial Reporting Standards
(IFRS) in order to avoid conflict and confusion, promote simplicity, streamlining,
consistency and transparency, and avoid any future financial crises or meltdowns.
• Despite the research-indicated evidence of a higher accounting quality being
experienced by firms that either apply the IFRS standards or have switched to
them from the GAAP, the convergence process has not proven to be an easy task,
mostly because of the differences in approach between the two accounting bodies.
• The GAAP is a rules-based methodology, while the IFRS takes a principle-based
approach.
• The rules-based approach is comprised of a complex set of guidelines that
establishes criteria for every possible contingency and provides the rules required
for specified transactions, thus promoting uniformity.
• The principle-based methodology lays out the key objectives of good reporting in
each subject area and then provides guidance, explaining the objective, and
relates it to common examples, thus promoting transparency.
• If these methodological differences between the two approaches cannot be
resolved, they may prolong the process of compiling a true set of international
accounting standards and increase the costs required to maintain two sets of
books.
GAAP And the IFRS Standards

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• General use of the term
• In everyday usage, the term 'International Financial Reporting Standards'
(IFRSs) has both a narrow and a broad meaning.
• Narrowly, IFRSs refers to the new numbered series of pronouncements that the
IASB is issuing, as distinct from the International Accounting Standards (IASs)
series issued by its predecessor.
• More broadly, IFRSs refers to the entire body of IASB pronouncements,
including standards and interpretations approved by the IASB and IASs and
SIC interpretations approved by the predecessor International Accounting
Standards Committee.
• IFRSs as defined in Standards
• Paragraph 7 of IAS 1 Presentation of Financial Statements defines IFRSs as
comprising:
• International Financial Reporting Standards
• International Accounting Standards
• IFRIC Interpretations
• SIC Interpretations
• (The definition of IFRSs was amended after the name changes introduced by
the revised IFRS Foundation Constitution in 2010.)
International Financial Reporting Standards

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• Requirements for issuing IFRSs
• In developing IFRSs, the IASB follows its due process requirements.
• Under the IFRS Foundation Constitution, the publication of an exposure draft, or an IFRS
(including an International Accounting Standard or an Interpretation of the Interpretations
Committee) requires approval by:
• nine members of the IASB, if there are fewer than sixteen members
• ten members of the IASB, if there are sixteen members.
• Other decisions of the IASB, including the publication of a discussion paper, require a
simple majority of the members of the IASB present at a meeting that is attended by at
least 60 per cent of the members of the IASB, in person or by telecommunications.
• Compliance with IFRSs
• Paragraph 16 of IAS 1 requires:
• An entity whose financial statements comply with IFRSs shall make an explicit and
unreserved statement of such compliance in the notes. An entity shall not describe
financial statements as complying with IFRSs unless they comply with all the
requirements of IFRSs.
• When a Standard or an Interpretation specifically applies to a transaction, other event, or
condition, the accounting policy or policies applied to that item shall be determined by
applying the Standard or Interpretation and considering any relevant Implementation
Guidance issued by the IASB for the Standard or Interpretation. [IAS 8.7]
International Financial Reporting Standards

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• International Public Sector Accounting Standards (IPSAS) are a set of
accounting standards issued by the IPSAS Board for use by public sector
entities around the world in the preparation of financial statements.
• These standards are based on International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board (IASB).
• IPSAS aims to improve the quality of general purpose financial reporting by
public sector entities, leading to better informed assessments of the resource
allocation decisions made by governments, thereby increasing transparency
and accountability.
• IPSAS are accounting standards for application by national governments,
regional (e.g., state, provincial, territorial) governments, local (e.g., city, town)
governments and related governmental entities (e.g., agencies, boards and
commissions).
• IPSAS standards are widely used by intergovernmental organizations.
• IPSAS do not apply to government business enterprises.
International Public Sector Accounting Standards

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• IPSASB adapts IFRS to a public sector context when appropriate.
• In undertaking that process, the IPSASB attempts, wherever possible, to maintain the
accounting treatment and original text of the IFRS unless there is a significant public
sector issue which warrants a departure.
• The IPSASB’s goal is to serve the public interest by developing high quality accounting
standards for use by public sector entities around the world in the preparation of general
purpose financial statements.
• This will enhance the quality and transparency of public sector financial reporting and
strengthen public confidence in public sector financial management.
• In pursuit of this objective, the IPSASB supports the convergence of international and
national public sector accounting standards and the convergence of accounting and
statistical bases of financial reporting where appropriate.
• A number of countries have transformed their accounting systems to accrual accounting
based on IPSAS. Several other countries have adopted the Cash Basis IPSAS as a first
step to future full accrual accounting based on the IPSAS.

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• There are 31 standards on the accrual basis of accounting and one standard on the cash
basis of accounting (source: IPSAS Handbook published).
• When the accrual basis of accounting underlies the preparation of the financial
statements, the financial statements will include:
• the statement of financial position (IPSAS 1),
• the statement of financial performance (IPSAS 1),
• the cash flow statement (IPSAS 2),
• the statement of changes in net assets/equity (IPSAS 1),
• the notes to the financial statements, or annex (IPSAS 1).
• When the cash basis of accounting underlies the preparation of the financial statements,
the primary financial statement is the statement of cash receipts and payments.

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“The illiterate of the 21st century will not be those who cannot read or
write but those who cannot learn, unlearn and relearn.”
ALVIN TOFFLER
Quotes

Forensic Accounting
 Forensic accounting has been defined as "accounting analysis that can
uncover possible fraud that is suitable for presentation in court.
 Such analysis will form the basis for discussion, debate, and dispute
resolution."
 Forensic accounting, sometimes referred to as investigative accounting, is
a unique career field that combines accounting with information
technology.
 A Forensic Accountant uses his knowledge of accounting, law,
investigative auditing and criminology to uncover fraud, find
evidence and present such evidence in court if required to.
 According to Oyedokun (2013), Forensic Accounting is a Scientific
Accounting method of uncovering, resolving, analyzing and
presenting fraud matters in a manner that is acceptable in the
court of law
21

Why is forensic accounting so popular now?
 According to some experts, this increased interest is because of the
struggling stock market and lack of investor confidence which has
forced many organizations to take a long, hard look at their financial
statements.
 A sluggish economy with its attendant problems might also be an
incentive to commit fraudulent acts, thus requiring the services of an
expert.
 The increase in white collar crime and the difficulties faced by law
enforcement agencies in uncovering fraud have also contributed to the
growth of the profession.
 Many accounting firms believe that the market is sufficiently large to
support an independent unit devoted strictly to forensic accounting.
 Whatever the reasoning may be, more and more forensic accountants
are being called upon to use their investigative skills to seek out
irregularities in their companies’ financial statements
22

Who needs Forensic Accountants?
 Forensic Accountants work in most major accounting
firms and are needed for investigating mergers and
acquisitions, and in tax investigations, economic crime
investigations, all kinds of civil litigation support,
specialized audits, and even in terrorist investigations.
 Forensic Accountants work throughout the business
world, in public accounting, corporations, and in all
branches of government (from the EFCC, ICPC, SSS,
FBI and CIA to the offices of the local authorities).
 Forensic Accounting firms are everywhere., even
Nigeria Police need these new bread of Accountants
24

 A forensic accountant uses sophisticated computer programs
to analyze financial data and find evidence that would be
legally valid during a court proceeding.
 A forensic accountant is a specialized accountant who
performs investigative accounting as well as litigation
support.
 Those in the forensic accounting field generally use both
accounting and investigating skills to interpret financial
evidence and are often called upon to analyze and present
this evidence to others in a clear manner.
 For example, they may be called upon as expert witnesses in a
court of law or to provide documented proof of financial
misdeeds.
 A forensic accountant can become involved in a wide variety
of investigations among many different industries.25
Forensic Accountants

 Forensic accountants are often asked to review financial records for
mergers and acquisitions.
 They may also serve as advisers to a corporation’s audit committee or work
to resolve shareholder disputes within a company.
 Objective verification is the primary goal of forensic accounting.
 For this reason, many forensic accounting professionals are asked to
testify in court cases as expert witnesses for either the prosecution or the
defense.
 Forensic accountants can work in both civil and criminal court cases.
 In a civil case, a forensic accounting professional may be asked to calculate
economic damages that occurred as the result of a breach of contract or
provide insight into a case based on a claim of professional negligence.
 In a criminal case, a forensic accountant may be asked to present evidence
of insurance fraud, identity theft, money laundering, terrorist financing,
embezzlement, price fixing, stock market manipulation, or other related
offences.
26
Forensic Accountants cont’

 To be successful as a forensic accounting professional, you must be detail
oriented, persistent, ambitious, and highly organized.
 Forensic accounting also requires a great deal of creativity, since you must
often explain complex financial concepts to an audience that lacks basic
accounting knowledge.
 Several well-known case investigations around the world have involved
forensic accounting.
 The famous American gangster, Al Capone, was arrested and successfully
prosecuted in 1931 because a forensic accountant was able to unearth his tax
crimes.
 In another example, it took 14 years for accountants to investigate the
billion-dollar embezzlement case of European publisher Robert Maxwell
before finally solving the financial puzzle in 1991.
 Additionally, after the September 11 terrorist attack on the United States in
2001, forensic accountants were hired by the CIA and the FBI to track
terrorist movement worldwide.
 These accountants are often able to follow a criminal's money trail which
can help lead to a subsequent arrest.
27
Forensic Accountants cont’

Forensic Accountants and the Vexed Problem of
Corporate World
 According to Owojori, A. A & T. O. Asaolu (2009), the following are the Role of
Forensic Accounting in Solving the Vexed Problem of Corporate World:
1. Giving preliminary advice as an initial appraisal of the pleading and evidence
available at the start of proceedings.
2. Identifying the key documents which should be made available as evidence. This
is important when the forensic accountant is acting for the defense and lawyers
are preparing lists of documents to tender in court.
3. Preparing a detailed balanced report on quantum of evidence, written in a
language readily understood by a non-accountant and dealing with all issue,
irrespective of whether o not they are favourable to the client.
4. Reviewing expert accounting reports submitted by the other party which may
have impact on the quantum of evidence and advising lawyers on these reports.
5. Briefing legal counsels on the financial and accounting aspects of the case during
pre-trial preparation.
6. The other plane of the forensic accountant can initiate measure for introduction
of environment accounting to highlight the damage done to the environment by
the possible recoupment of such damages or replenishment of lost properties
through environmental management continually.
28

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Several organizations support and promote the practice of forensic
accounting.
These include:
•The Institute of Chartered Accountants of Nigeria (ICAN),
•The Association of Certified Fraud Examiners (ACFE),
•The American College of Forensic Examiners International (ACFEI),
•Institute of Certified Forensic Accountants (ICFA)
•Institute of Certified Forensic Investigators International (IICFIP)
•The Association of Certified Fraud Specialists (ACFS) and
•The American Institute of Certified Public Accountants (AICPA).
•Other resources include the Forensic Accounting Society of North America,
the National Association of Certified Valuation Analysts and National
Litigation Support Services Association.
•Many of these organizations offer credentials to those who meet their
rigorous standards.
How to become a forensic accountant

31
Quotes
"... the reason why we are where we are now is
break in value...” - Prof. Yemi Osinbajo (SAN)

32
• Environmental accounting is a subset of accounting proper, its target being to
incorporate both economic and environmental information.
• It can be conducted at the corporate level or at the level of a national economy
through the National Accounts of Countries (among other things, the National
Accounts produce the estimates of Gross Domestic Product otherwise known as
GDP).
• Environmental accounting is a field that identifies resource use, measures and
communicates costs of a company’s or national economic impact on the
environment.
• Costs include costs to clean up or remediate contaminated sites, environmental
fines, penalties and taxes, purchase of pollution prevention technologies and
waste management costs.
• An environmental accounting system consists of environmentally differentiated
conventional accounting and ecological accounting.
• Environmentally differentiated accounting measures effects of the natural
environment on a company in monetary terms.
• Ecological accounting measures the influence a company has on the
environment, but in physical measurements.
• (Source: Wikipedia)
Environmental accounting

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• Why environmental Accounting?
• There are several advantages environmental
accounting brings to business; notably, the
complete costs, including environmental
remediation and long term environmental
consequences and externalities can be quantified
and addressed.
Environmental Accounting

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• Environmental audit is a general term that can reflect
various types of evaluations intended to identify
environmental compliance and management system
implementation gaps, along with related corrective actions.
• In this way they perform an analogous (similar) function to
financial audits.
• There are generally two different types of environmental
audits:
• i. compliance audits, and
• Ii. management systems audits.
Environmental Audit

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• Social accounting (also known as social accounting and auditing, social and
environmental accounting, corporate social reporting, corporate social responsibility
reporting, non-financial reporting or accounting) is the process of communicating the
social and environmental effects of organizations' economic actions to particular interest
groups within society and to society at large.
• Social accounting is commonly used in the context of business, or corporate social
responsibility (CSR), although any organisation, including NGOs, charities, and
government agencies may engage in social accounting.
• Social Accounting can also be used in conjunction with Community-Based Monitoring
(CBM).
• Social accounting emphasises the notion of corporate accountability.
• D. Crowther defines social accounting in this sense as "an approach to reporting a firm’s
activities which stresses the need for the identification of socially relevant behaviour, the
determination of those to whom the company is accountable for its social performance and
the development of appropriate measures and reporting techniques.“ (wikipedia.com)
Social Accounting & Audit

International Auditing
 According to Nobes C. and Parker R. (2008, p 482-483),
International aspect of Auditing refers to the
harmonization of Auditing Standards and Rules across
Countries as well as referring to the practice of Auditing,
based on one or more set of Auditing rules, of the financial
information prepared by Multi-National Corporations.
 “….the internationalization of auditing started when
Multinational enterprises began preparing consolidated
financial statements” (Nobes C. and Parker R. 2008, p 483,
para 3).
36

Factors contributing to International Auditing
The following among others are the factors contributing to
the internationalization of Auditing:
 The emergence of multinational enterprise;
 The increasing internationalization of capital market;
 The growth of international accounting firms, with
common approaches to audit methodology, training and
quality review;
 The convergence around common international
frameworks for accounting and audit
37

International Audit Process
 The followings are major 4 main stages of an audit
process:
 Acceptance and defining the terms of engagement
 Planning, including assessment of audit risk and
materiality
 Gathering audit evidence; and
 Reporting
38

 High quality financial reporting contributes to promoting private sector growth
and reducing volatility, through:
 (a) strengthening countries’ financial architecture and reducing the risk of
financial market crises, together with their associated negative economic
impacts;
 (b) contributing to foreign direct and portfolio investment;
 (c) helping to mobilize domestic savings;
 (d) facilitating the access of smaller-scale corporate borrowers to credit from
the formal financial sector by lowering the barrier of high information and
borrowing costs;
 (e) allowing investors to evaluate corporate prospects and make informed
investment and voting decisions, resulting in a lower cost of capital and a
better allocation of resources; and
 (f) facilitating integration into global financial and capital markets.
 Financial reporting is also a building block of a market-based monitoring of
companies, which allows shareholders and the public at large to assess
management performance, thus influencing its behavior.
 (Rick S. HAYES, Arnold SCHILDER, Roger Dassen & Philip Wallage, 2013)


 International Auditing is the heart of International Accountancy
Practices.
 The necessity to go global in International Financial Reporting calls for
the globalization of Audit and Auditing Practices.
 High quality financial reporting will be aided with International
Standards on Auditing.
 The general adoption of International Accounting Standards
(IAS)/International Financial Reporting Standards (IFRS) enhances
shareholding and the public’s ability to assess the extent to which
public companies are creating or eroding value.
 High quality financial reporting will contributes to improving the
assessment and collection of taxes on corporate profits.
 Countries currently have fundamentally different approaches to the
relationship between accounting and taxation.
 The greater the level of dependency, the greater the importance of
high-quality financial statements for the assessment and collection of
taxes on corporate profits.

International Auditing and Assurance Standards Board (IAASB)
 The International Auditing and Assurance Standards Board
(IAASB) functions as an independent standard setting
body under the auspices of the International Federation of
Accountants (IFAC).
 The IAASB works to establish high quality auditing,
assurance, quality control and related services standards
and to improve the uniformity of practice by professional
accountants throughout the world, thereby strengthening
public confidence in the global auditing profession and
serving the public interest.
 Until 2002, the IAASB was known as the International
Auditing Practices Committee (IAPC).

42
Quotes
"... Value are essential ingredient in National
development..." Dr Ezekwesili (Madam Due Process)

43
Auditors can be classified into the
following categories:
External auditor/
Statutory auditors
Internal auditors
Consultant
auditors
Quality auditors
What about
Forensic auditors?
Auditors

Wednesday, February 18,
2015
44
• Internal Auditing is an independent, objective assurance and consulting activity
designed to add value and improve an organization's operations.
• It helps an organization accomplish its objectives by bringing a systematic,
disciplined approach to evaluate and improve the effectiveness of risk
management, control, and governance processes.
• Managers are responsible for designing control processes that provide
reasonable assurance for the following business objectives:
•Effective and efficient operations
•Compliance with laws and regulations
•Reliable financial reporting
• Internal auditors evaluate how well the control processes designed by managers’
function, and therefore the extent to which managers can have reasonable
assurance business objectives will be realized.
• Because of their expertise and thorough knowledge of operations, internal
auditors often fulfill a consulting role to top management.
Internal Auditing

46
• Internal Auditing is an independent appraisal function established
within an organization to examine and evaluate its activities as a
service to the organization.
• The objective of internal auditing is to assist members of the
organization in the effective discharge of their
responsibilities. To this end, internal auditing furnishes them
with analyses, appraisals, recommendations, counsel, and
information concerning the activities reviewed.
• The audit objective includes promoting effective control at
reasonable cost. The members of the organization assisted by
internal auditing include those in management and the board of
directors.
Objective of Internal Auditing

Wednesday, February 18,
2015
47
• If internal auditors are only the second line of defense against the
occurrence of fraud in an organization, what is the first line of defense?
• The answer is clear:
• Management is preeminently responsible for fraud deterrence in two
respects.
• First , through the example it sets– the tone at the top- management is
first to deter and defend against corporate wrongdoing of all kinds.
• Second, Management is responsible for the system of internal controls
Internal Audit: The Second Line of Defense

48
• Green Washing: this is refers to the techniques by which companies engages in antics and practises that
do not reflect best practises in the environment they find themselves.
• When companies tries to convince people that they are doing something which is good for the
environment by being involved in small, environmentally friendly initiatives, especially as a way of hiding
their involvement in activities which are damaging to the environment.
• CSR/CS: Corporate Social Responsibility has become subsumed by Corporate Sustainability issues
which is a broader term in describing the issues the firm is confronted in today’s world.
• By Corporate sustainability, we mean a business approach that creates long-term consumer and
employee value by creating a "green" strategy aimed toward the natural environment and taking into
consideration every dimension of how a business operates in the social, cultural, and economic
environment.
• It also formulates strategies to build a company that fosters longevity through transparency and proper
employee development.
• In other words, it involves processes set up to ensure the adoption of a set of ethical codes that serve as
beacons in ensuring that the environment is well catered for and business operation adequately
addresses the concerns of other stakeholders other than the Investors/ owners of the business.
Green Washing, CSR & Taxation

49
• Tax: a tax is a charge imposed through the instrumentality of
the state with a view to establishing and funding same for the
common good and benefit of all therefrom.
• Further explained, it is “a compulsory contribution to the
support of government levied on persons, property, income,
commodities, transaction and so on”.
• It can also be described “as money to be paid by people or
businesses to a government for public purposes.”
• “It is a payment in return for which no direct and specific quid
pro quo or benefit is rendered to the payer”.
• In all of these definitions, certain features underline and
further elucidates the nature of a tax.

50
• These features include:
• A Charge/payment
• Benefit(s) to be derived is not directly ascribable to payer
• It is paid to/received by government
• It is mandatory
• It is a creation through the legal instrumentality of law
• In dispensing with its Corporate responsibility, the firm sees itself as giving
back to the community they have taken so much from and have also
impacted positively and/ or otherwise during operations.
• It is the act of “demonstrating values of honesty, responsibility and
equality as well as show an ongoing concern for and contribution to the
well-being of the communities in which they operate.
• In other words, organisations should be “good corporate citizens””.

51
• A lot of persons and organisations have gotten it wrong when they enter the economic and
accounting argument that they do not owe the government through the tax man a penny
more than they have already paid.
• Indeed, the law allows the firm to arrange its affairs, within provisions allowable under the
law, to pay over to government just what is due same, however the same firm sometimes
finds itself walking the thin line between tax avoidance as mentioned here and tax evasion
which, simply put, amounts to breaking the law.
• It therefore comes as little surprise to find a discourse such as this relating one misleading
aspects of operations a company could find itself with another capable of landing the firm in
hot waters with the law using the veil of Corporate Sustainability.
• Tax evasion as this paper has stated is the process of arranging the affairs of the firm in
such a manner as to conceal and ultimately fail to pay over taxes due to government.
• “It is an act in contravention of the law whereby a person who derives a taxable income
either pays no tax or pay less tax than he would otherwise be bound to pay.
• Tax evasion includes the failure to make a return of taxable income or the failure to disclose
in a return the true amount of income derived.”
Tax Criminality & Green Washing

52
•Environmental taxes are compulsory,
unrequited payment to general government
levied on tax bases deemed to be of particular
environmental relevance e.g.
•i. energy products,
•Ii. motor vehicles,
•Ii. waste, emissions, natural resources.
Environmental Taxes

53
• The sovereign debt crisis has illustrated the dire consequences of insufficient
transparency and accountability of governments and poor public finance management
and reporting.
• Governments are not risk-free and the failure of fiscal management in the public sector
has an economic impact that will far exceed the impact of losses incurred by corporate
failures.
• This jeopardizes both the interests of the public as well as investors.
• Today, many key decision-makers, politicians, and public finance management
leaders are taking the key steps toward meaningful reform, including the adoption and
implementation of accrual accounting and International Public Sector Accounting
Standards (IPSASs).
• There has been a concerted convergence effort between the Generally Accepted
Accounting Principles (GAAP) and the International Financial Reporting Standards
(IFRS) in order to avoid conflict and confusion, promote simplicity, streamlining,
consistency and transparency, and avoid any future financial crises or meltdowns.
Despite the research-indicated evidence of a higher accounting quality being
experienced by firms that either apply the IFRS standards or have switched to them from
the GAAP, the convergence process has not proven to be an easy task, mostly because
of the differences in approach between the two accounting bodies.
Conclusion

54
Recently, the number of reported fraudulent cases, especially in
government agencies and banks has continued to grow with low rate in the
number of successful prosecution.
According to information gathered from law enforcement and prosecuting
agencies, the low rate of successful prosecution and conviction of fraudulent
cases is partly attributed to lack of necessary skills and knowledge on the part of
some fraud investigators and prosecutors in providing suitable evidence to
support prosecution.
This is where Forensic Accountants and Fraud Examiners come in.
Forensic accountants are currently in great demand, with the public need
for honesty, fairness and transparency in reporting increasing
exponentially.
These Forensic Accountants and Fraud Examiners uses accounting, finance, law
and investigative skills to identify, interpret, communicate and prevent fraud.
As more and more companies look for Forensic Accountants & Fraud
Examiners, and professional organizations offer certifications in the area, it
is becoming evident that forensic accounting would emerge as one of the
hottest jobs in Nigeria within the next few years.
Conclusion

The changes in accounting practices and procedures

56
• Albrecht W. S (2006), Fraud Examination, Thomson South-Western Publishing, 2006.
• Association of Certified Fraud Examiners’ Manual, (2012)
• Association of Certified Fraud Examiners, www.acfe.com
• America institute of CPAs :
http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2008/CPA/June/R
ole.jsp
• Crubley, Heiger and Smith (2003),Forensic and Investigative Accounting, CC Publishing
• Enyi, E. P. (2012). Ethical conduct for forensic accountants. Being a lecture delivered at the Institute of
Chartered Accountants of Nigeria (ICAN) forensic accounting certification programme
• Hopwood, Leiner and Young (2009); Forensic Accounting, McGraw-Hill International.
• New Frontiers: Training Certified Fraud Examiners within the Accounting Program; Journal of College of
Teaching & Learning – September, 2007.
• Owojori, A.A & T. O. Asaolu (2009) European Journal of Scientific Research ISSN 1450-216X Vol.29 No.2
(2009), pp.183-187 http://www.eurojournals.com/ejsr.htm
• Owolabi ‘Doyin, (2013). Annual Report. Being 48th ICAN President speech delivered on 31st Dec. 2013 on
the Institute of Chartered Accountants of Nigeria’s forensic accounting certification programme
• Oyedokun, G.E (2012). Audit, investigation and forensic accounting: Similarities and differences. Being a
lecture delivered at the Institute of Chartered Accountants of Nigeria’s forensic accounting certification
programme
• Oyedokun, G.E (2012). Emergence of Forensic Accounting and the Role in Nigeria Economy. Being a
lecture delivered at the Annual NUASA Week 2012 of Nigerian Universities Accounting Students'
Association Obafemi Awolowo University Ile-Ife, Osun State.
• Oyedokun, G.E (2012). Emergence of Forensic Accounting and the Place of Chartered Accountants .
Being a lecture delivered at the Monthly General Meeting of all Members of the ICAN Lagos Mainland
District & Society
References

57
• Oyedokun, G.E (2012). Emergence of Forensic Accounting and the Place of Chartered Accountants . Being a lecture
delivered at the Monthly General Meeting of all Members of the ICAN Lagos Mainland District & Society. Being a lecture
delivered at the Monthly General Meeting of all Members of the ICAN Lagos Mainland District & Society
• Oyedokun, G.E (2012). Emergence of Forensic Accounting in Nigeria: The Role of Certified Fraud Examiners. Being a
paper presented at the Continue Professional Development Training of Association of Certified Fraud Examiners (ACFE-
Nigerian Chapter)
• Oyedokun, G.E (2013). Taking your Professional Practice beyond Statutory Auditing: Fraud & Forensic Accounting
Perspective, Being a paper presented at the Entrepreneurship Development Training Programme of ICAN Professional
Forum at Lagos Airport Hotel, Lagos
• http://blog.rpc.co.uk/tax-law/criminal-guidance/note-9-the-role-of-the-forensic-accountant
• http://www.dolmanbateman.com.au/1323/the-role-of-forensic-accountants/
• Litigation Support - Accounting for Damages, A Framework for Litigation
• Mark Warshavsky (2013) The Forensic Accountant’s Role in Litigation http://www.accountingtoday.com/news/Forensic-
Accountant-Role-Litigation-66287-1.html donloaded on May 21, 2013
• Nobes C. and Parker R. (2008) ‘Comparative International Accounting’: (10th ed). Prentice Hall, FT
• Support by Ronald T. Smith and Cynthia R.C. Sefton published by Carswell (ISBN 0-459-55789-0) available at 1-800-387-
5164.
• Zysman, A., (2004). Forensic accounting demystified. World investigators network standard practice for investigative and
forensic accounting engagement? Canadian Institute of Chartered Accountants.
http://www.investopedia.com/articles/investing/030713/gaap-and-ifrs-standards-convergence-efforts.asp#ixzz2Mt3gqYeN
http://en.wikipedia.org/wiki/Environmental_accounting
http://en.wikipedia.org/wiki/Environmental_audit
http://en.wikipedia.org/wiki/Social_accounting
References

58
Brass, 2004, The Centre for Business Relationships, Accountability Sustainability and Society (BRASS), “History
of Corporate Social Responsibility and Sustainability”, URL:
http://www.brass.cf.ac.uk/uploads/History L3.p
Wikipedia, 2014 http://en.wikipedia.org/wiki/Corporate_sustainability
http://marketing.about.com
Kent M. S. et al (2007); The Debate over Corporate Social Responsibility as an International
Strategy.
Contributions to Economics”, Physica Verlag, 2008, pp. 28-29
Laufer, Williams S. Corporate Bodies and Guilty Minds: The Failure of Corporate Criminal
Liability, University
of Chicago Press
Paetzold, Kolja, Corporate Social Responsibility (CSR): An International Marketing Approach.:
Diplomacia
Verlag
Shorter Oxford English Dictionary Vol. 11, p. 2136
The Oxford Advanced Learners Dictionary (Fourth Edition)
Dalton (1964:61)
May, Steven K. Debate over Corporate Social Responsibility; Oxford University Press,
Incorporated
Asprey Committee (1975), The Report of Taxation Review Committee, Australia
Altria Code of Conduct for Compliance and Integrity, p. 5. Available at:
http://www.altria.com/download/pdf/responsibility_Altria_Code _of_Conduct.pdf
References

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