EY Urges Audit Committees to Look Beyond Compliance, Anticipate Emerging Threats

Oluchi Chibuzor, the Regional Managing Partner for West Africa at EY, has called upon audit committee members to move beyond mere compliance and financial reporting by anticipating emerging risks and enhancing corporate governance in an increasingly complex operating environment. Speaking at the 2026 Audit Committee Transformation Summit in Lagos, Chibuzor emphasized that audit committees must now contend with evolving regulatory expectations, geopolitical uncertainty, technological disruption, sustainability considerations, and significant changes in financial reporting.

He noted that these factors place greater demands on audit committees to strengthen accounting systems, promote transparency, safeguard audit quality, and bolster stakeholder confidence.

Chibuzor urged audit committees to look beyond traditional compliance and financial reporting matters, asking more incisive questions and providing effective oversight of critical issues such as artificial intelligence, cybersecurity, sustainability, taxation, talent management, and the implementation of IFRS 18. He also stressed the need for committees to understand how changing regulatory expectations impact boards, companies, and corporate accountability in Nigeria.

At the summit, the Registrar-General/CEO of the Corporate Affairs Commission, Hussaini Ishaq Magaji, highlighted the importance of prudent governance. He argued that a director who signs off on accounts without considering outdated policy records, undisclosed changes in control, and unfiled returns is not practicing proper governance.

Magaji stressed that directors must be diligent, ensure accurate records, timely filings, transparency in beneficial ownership disclosure, and accountability for regulatory failure's personal and corporate consequences. He emphasized that directors must be forward-looking, treating compliance as part of enterprise resilience and value creation.

Clean records, transparent ownership, active status, and disciplined governance will better position companies to attract investment, secure credit, participate in public procurement, pursue partnerships, and execute transactions.

Associate Partner and Strategy and Transactions leader at EY West Africa, Olayinka Oyetunji, focused her presentation on geopolitical and macroeconomic updates for audit committee members. She urged board and committee members to prioritize supply chain resilience in the face of various shocks witnessed in 2026. Oyetunji recommended diversifying critical suppliers, improving energy efficiency, focusing on alternative energy sources, and prioritizing investment discipline.

She also emphasized revenue diversification, expanding across products, customers, and markets, and strengthening liquidity, working capital, and funding management to build financial resilience.