Financial Advisory and Risk Management
Internal Audit at Kreston Pedabo takes on a risk-based approach; it is designed to review what a company is doing in order to identify potential threats to the organisation’s health and profitability, and to make suggestions for mitigating the risk associated with those threats in order to minimise costs and mitigate risks in the long run.
The Financial Reporting Council of Nigeria has mandated all companies in Nigeria to convert from Nigeria Generally Accepted Accounting Principles (NGAAP) to International Financial Reporting System (IFRS).
At Kreston Pedabo, we carry out a detailed conversion exercises that entail; a review of the chart of accounts and general ledger identifying areas that would be affected by the conversion to IFRS (across multiple standards); ascertain whether the EDP method is IFRS compliant and would be useful for subsequent IFRS reporting by the company; train users, re-structure the general ledger and charts of accounts; review all account balances and raise necessary journals to implement the IFRS impact on them; attend to sub-system issues relating to configuration and data capture, and agree on post implementation reviews with the client.
We provide financial management advice on operational and financing structures based on our thorough understanding of costing and management accounting systems.
The firm adopts a more robust approach in conducting Due Diligence assignments. This also includes identifying appropriate operational and financing structures, determining funding requirements, providing documented financial analysis and business plans, and facilitating financing for projects.
Our responsibility as Reporting Accountant on any public offer is to provide a limited assurance report on the forecast prepared for the purpose of complying with the Listings Requirements of the Stock Exchange and for inclusion in the prospectus to prospective or existing shareholders. We conduct this exercise in accordance with the International Standard on Assurance Engagements applicable to the Examination of Prospective Financial Information.
A model audit refers to the tasks performed when conducting due diligence on a financial model – which is an abstract representation of a financial decision-making situation or scenario (investment). Our responsibility here includes providing a Model Audit Report that provides relevant information around the validity of assumptions, and commercial rationale so as to facilitate our Client’s ability to make a sound financial Go or NO-GO decision.
Enterprise Risk Management
Organisations, particularly PIE with complex operations are expected to have a robust Enterprise Risk Management system to effectively manage their risk exposures, as well as to have strong internal controls embedded within their processes. We often find that many do not, or require review and optimisation from time-to-time. At Kreston Pedabo, we help organisations to design effective ERM systems, act as independent reviewers for external quality assessment of their Internal Audit function, or implement/review their Internal Control processes. ERM implementation is a continuous process of integrating business strategies designed to mitigate or optimise enterprise risk and ia a critical aspect to ensure business continuity.
At Kreston Pedabo, we offer business valuation services to our clients – whereby we estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive to affect a sale of a business, and the valuation of any asset depends on its future income potential. We select valuation methods subject to the circumstances surrounding the particular asset and or business to be valued.
We provide expert valuation services for companies including the valuation of financial assets, employee stock options, business and corporate net-worth, personal and family net-worth,pension and retirement benefits obligations, among others. Further to prior valuations, we would carry out valuation review and audits including evaluation of reasonableness of assumption and correctness of procedures. Our valuations are carried out in line with the International Valuation Standards, the American Actuarial Standards of Practice and the International Financial Reporting Standard relevant to the engagement.
Our reports have been used in financial statement reporting, shareholders cash out decisions and other investment and business decisions over time.
Actuarial Services (Gratuity Valuation)
Our Actuary consulting provides companies with the ability to accurately analyse past experience, and to evaluate potential losses so as to critically and effectively manage risks. At Kreston Pedabo, our scope will typically cover; an evaluation of the financial impact of current economic, legal and social trends on probable future events as highlighted by a company’s universe; Analytics that span the risk management continuum – from quantitative support to recommend appropriate covers, insurance premiums, dividends and reserves, to independent consultative statistical calculation for risk financing alternatives – allowing for appropriate premium recommendations for rates of disability, morbidity, mortality, retirement, survivorship, and other contingencies of its employees.
Corporate Governance and Board Performance
The Board Evaluation Process is designed to provide the Company, the Board and its Directors with an opportunity each year to examine how the Company and its Board are operating and to make suggestions for improvement. This evaluation process focuses on the Board, its members and the Committees’ performance. The Board evaluation is a tool used to identify areas where governance improvement is needed. At Kreston Pedabo, we critically analyse the mechanisms, processes and realties by which corporations are controlled and operated and guide companies on the best approach in line with the Nigerian Code of Corporate Governance 2018, Security and Exchange Commission Code, and the Central Bank of Nigeria Codes of Corporate Governance as applicable, whilst revising the company’s level of compliance with same.
Internal Control Over Financial Reporting (ICFR)
Kreston Pedabo’s ICFR service refers to ensuring the quality of controls specifically designed to address risks related to a Company’s financial reporting. In simple terms, a public company’s ICFR consists of the controls that are designed to provide reasonable assurance that the company’s financial statements are reliable and prepared in accordance with GAAP.
IT Audit System Intergrity Assessments
ISO 27001 is a standard for Information Security Management Systems (ISMS) that helps organisations to ensure the confidentiality, integrity, and availability of their information assets. Utilising the relevant standard, at Kreston Pedabo, we will review an organisation’s risk, compliance, security, efficiency, and internal controls, so as to highlight gaps and make recommendations for necessary safeguards within its technology environment.
Business Modelling & Financial Advisory
Kreston Pedabo’s Business modelling service identifies the products or services a Company plans to sell, its identified target market and any other anticipated expense and involves htr design of a sound business structure and financial model to achieve the Founder’s objectives. Depending on the specific objectives, financial advisory has a wide scope of application and delivery to meet client’s needs so as to guide sound business decisions.
We are equipped and experienced to carry out major organisational restructuring and turnaround exercises which would typically involve mulitple teams within the firm. Particularly, we are experienced and knowledgeable in:
- Comprehensive due diligence and corporate performance audits;
- Enterprise valuation for acquisition;
- Logistics management for start-up companies;
- Systems and process improvements, process design, process management and design of performance measurement systems;
- Human capital management issues, recruitment and selection systems, human resource management policies, job definitions and descriptions, performance appraisal and measurement, reward and remuneration pay structures and training;
- Financial evaluation of proposals, financial requirements for turnaround projects along with financial impact analysis, and;
- Operationalisation of new corproate structures and business process design for optimisation of same.