By Abiodun Jimoh
The Financial Reporting Council of Nigeria (FRC) has warned auditors and financial reporting professionals that the growing use of Artificial Intelligence (AI) must not undermine auditor independence, professional judgement and public trust.
The Executive Secretary and Chief Executive Officer of the FRC Nigeria, Dr. Rabiu Olowo, gave the warning on Thursday at the 2026 Annual Audit and Assurance Leadership Summit held at the Lagos Marriott Hotel, Ikeja.
The summit, themed “Redefining Audit Integrity in the Age of Artificial Intelligence: Auditor Independence, Financial Reporting Responsibility, and the Future of Assurance,” brought together regulators, auditors, accountants and other stakeholders to examine the implications of AI for the profession.
Olowo said AI was already transforming how financial information is generated, processed, analysed and reported, creating opportunities for auditors to analyse larger volumes of data, improve fraud-risk assessment and move beyond traditional sampling.
However, he said technological advancement must not come at the expense of professional scepticism and independence.
He questioned how auditors could ensure that AI-generated outputs were properly challenged and validated, while also addressing risks associated with algorithmic bias, data manipulation and cybersecurity.
Olowo also raised concerns over practices that blur the boundaries between financial statement preparation and independent auditing.
He said auditors who become directly or indirectly involved in preparing financial statements they subsequently audit could face significant self-review threats.
“When such boundaries become blurred, objectivity can be compromised and professional scepticism can be weakened,” he said.
Representing the Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, at the summit, the Permanent Secretary of the ministry, Dr. Chris Osa Isokpunwu, said credible financial reporting was critical to attracting investment, deepening capital markets and supporting Nigeria’s economic growth. Official ministry records identify Isokpunwu as the Permanent Secretary of the Federal Ministry of Industry, Trade and Investment.
Isokpunwu said AI offered significant opportunities to improve audit efficiency, identify anomalies and strengthen risk assessment, but cautioned against placing unquestioning confidence in technology.
“AI should enhance, but it should not replace, professional judgement, scepticism, accountability and human oversight.”
He called for stronger governance frameworks, effective human oversight and continuous professional development in areas including AI, data analytics, cybersecurity and information technology controls.
Delivering the lead paper, Emmanuel Akeni, Head of Systems Audit and Security Compliance at Credit Direct Finance Company Limited, warned that AI would transform rather than eliminate auditing.
He said automated errors could be replicated across millions of transactions before detection and urged organisations to strengthen technology controls and cybersecurity.
Akeni said: “AI will not replace auditors, but all those who understand AI may well replace those who don’t use it.”
He added that as routine audit tasks become automated, professional judgement and scepticism would become even more important.
“Technology gives us information. Judgement is what turns that information into assurance,” Akeni said
