Kunoch Hotels Audit Proposal

PROPOSAL FOR APPOINTMENT
AS EXTERNAL AUDITORS
TO
Kunoch Hotels Limited
SUBMITTED BY:
BBC PROFESSIONALS
[CHARTERED ACCOUNTANTS]
Proposal for Appointment as External Auditors to Kunoch Hotels Limited By BBC PROFESSIONALS
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KUNOCH HOTELS LIMITED

PROPOSAL
FOR APPOINTMENT AS EXTERNAL AUDITORS
CONTENTS
PAGE
1.0 Brief introduction of our firm
2.0 Our Offices and Contact Information
13
3.0 Similar and Other assignments
14
4.0 Our understanding of the assignment
17
5.0 Brief Methodology proposed for

performing the audit assignment
19
6.0 Proposed Team members and

CVs of Key professional staf
26
7.0 Documents attached
36
Certificate of Registration with Corporate Affairs Commission (CAC)

Evidence of Registration with Professional Practice and Eligibility to Practice
Copy of Tax Clearance Certificates
Copy of VAT Certificate and evidence of remittance to FIRS
Evidence of pensions/Social Security Contribution in accordance with the Pension Act,
2004
Registration with Financial Reporting Council of Nigeria
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1.0 BRIEF INTRODUCTION OF OUR FIRM

1.1 ESTABLISHMENT
BBC PROFESSIONALS (Formerly Balogun Badejo & Co) was established on 1 April, 1969
and it is one of the largest indigenous practicing accounting firms in Nigeria offering to
clients; professional auditing, accounting, tax, insolvency, consultancy, financial
and management advisory services, amongst others. On 1 April, 2009, we marked
40 years of the existence of our firm in Nigeria for which we are grateful to God.
The firm had continued to render excellent accounting services to her numerous clients and
the nation at large for over 44 years. During these years of existence, the firm has had the
privilege of having two Partners as Past Presidents of The Institute of Chartered
Accountants of Nigeria (ICAN). These are Sir John A Balogun, KSC and Chief Adeboye
O Badejo in 1980/81 and 1999/2000 respectively.
We also make bold to say that one of our own, Mr. Chidi Ajaegbu is the current Golden
Jubilee President of the Institute, a rare privilege that we cherish and which adds credence
to our corporate existence.
1.2 CHANGE OF NAME

In order to reposition the firm for better services to her prospective and numerous customers
and further improve our brand name, the firm changed her name in October 2012 (though
the certificate was received in 2013) from Balogun Badejo & Co to BBC PROFESSIONALS. As
a result of the change, note that some of the documents that were included in this proposal
had the old name.
1.3 INTERNATIONAL AFFILIATION

We are affiliated with PrimeGlobal which is a global network of accounting and
consulting firms with offices in over eighty six (86) countries located in all the continents
of the world. The essence of all these is that we have expertise both locally and
internationally to meet the demands of our profession.
Our international office in MIAMI, FLORIDA (USA) together with any of PrimeGlobal
offices in the world are available to join us in carrying out any exercise should their services
be required.
The World Headquarters of PrimeGlobal is located at:
9200 South Dadeland Boulevard
Suite 510 Miami
Florida 33156
USA
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1.4 MISSION
Our mission is to excel in our special areas of proficiency: accounting, auditing,
taxation, management advisory services, insolvency, etc and place at the disposal of
our clients the highly technical skills peculiar to the very professional accountant.
1.5 TEAM SPIRIT

In line with our mission, we work as a team to bring about the needed solutions and high
quality delivery to our numerous clients. We believe in Team Spirit and that we have
exhibited in all our previous assignments and shall equally bring to bear in future projects.
In BBC, we believe that no one knows it all. Consequently, we brainstorm to proffer solutions
when the need arises.
BBC Partners at a Brainstorming session
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1.6 COMMITMENT
Our firm is committed to:
excellent quality and timely delivery of our service.
conscientious maintenance and improvement of our place in the profession.
contribution to the development of our community and profession in manpower
development, technical expertise, meaningful and stable employment in a healthy
environment whilst simultaneously discharging our social responsibilities.
dissemination of technical information towards regular communication to our
staff, clients and the public.
1.7 REGISTRATION WITH RELEVANT AUTHORITIES

Our firm is registered with the following authorities amongst others:
The Institute of Chartered Accountants of Nigeria (ICAN)
Public Practice Section of ICAN (PPS)
Corporate Affairs Commission (CAC)
Securities & Exchange Commission (SEC)
Office of the Auditor-General of the Federation (AGF)
Office of the Accountant-General of the Federation (AGF)
Some Offices of the Auditor-General of the States
Chartered Institute of Taxation of Nigeria (CITN)
Bureau of Public Enterprises (BPE)
PrimeGlobal global network of accounting and consulting firms
Financial Reporting Council Of Nigeria (FRCN) - Partners
1.8 AVAILABILITY OF APPROPRIATE SKILLS

We have adequate manpower that can handle any assignment in the following categories:
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1.9 KEY DRIVERS OF OUR PRACTICE

PARTNERS OF BBC PROFESSIONALS (Chartered Accountants)
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22
33
44
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1.
J O Obogwu
Managing Partner
2.
E U Itodo
3.
A M Adetuyi
Partner
4.
G C Egwuenu (Mrs.)
Partner
Deputy Managing Partner
1.9 KEY DRIVERS OF OUR PRACTICE (contd)

BBC PROFESSIONALS (Chartered Accountants) (Formerly Balogun Badejo &
Co) is well known for Efficiency, Integrity and Professionalism when it comes to the
practice and dealing with our clients. We take pride in the competence and experience of the
partners who drive the firm. We present a brief profile of our Partners.
(1)
JAMES O. OBOGWU
Chairman/Managing Partner
He attended St Pauls Grammar School, Ebu and University of Benin, Benin City, where he
bagged a Master in Business Administration (MBA). Employed as a Trainee and rose
through the ranks to become a Partner on 1 April 2005. JOO became the firms Managing
Partner on 1 April, 2013.
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Mr. Obogwu is a Fellow of both the Institute of Chartered Accountants of Nigeria (ICAN)
and the Chartered Institute of Taxation of Nigeria (CITN).
JOO as he is fondly called was the firms Deputy Managing Partner up to 31 March, 2013. He
is the Editor-In-Chief of our in-house journal, TICK Magazine.
He is currently:
-
A Practice Monitoring Reviewer of the Institute of Chartered Accountants of Nigeria

(ICAN)
IFRS Paper Presenter.
A member of Practice Monitoring Committee of the Chartered Institute of Taxation of
Nigeria (CITN)
A member of Taxation Standard Board of the Chartered Institute of Taxation of Nigeria
(CITN)
Chairman of the Editorial Committee of the Taxation Standard Board of the Chartered
Institute of Taxation of Nigeria (CITN).

(2)
EVERESTUS U. ITODO
Everest, as he is popularly called by friends hails from Amalla in Udenu LGA of Enugu state
of Nigeria. He attended Ifruoka Primary School AmallaUdenu LGA in Enugu State,
Government Day Secondary School Kakuri, Kaduna and St. Theresas College, Nsukka.
He obtained B.Sc. in Applied Accounting from Oxford Brookes University, UK and Master of
Science in Management (M.Sc. Management) from University of Lagos, Akoka, Nigeria.
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EUI is an Associate member of the Institute of Chartered Accountants of Nigeria (ICAN), the
Association of Chartered Certified Accountants (ACCA), UK and Chartered Institute of
Taxation of Nigeria (CITN).
Before joining the firm in January 2006, he had worked with MuAllahyidi & Co, (Chartered
Accountants), Supertex Limited, and Union Adhesive & Chemical Company Limited, all in
Kaduna. He rose to the position of Audit Manager in the firm on 1 April, 2008, was admitted
a Partner on the 40th Anniversary of the firm on 1 April, 2009 and became the firms Deputy
Managing Partner on 1 April, 2013.
He is currently:
The Finance Partner of the Firm;
Chairman of the Firms Technical, Research and Training Committee; and
A Practice Monitoring Reviewer of the Institute of Chartered Accountants of Nigeria

(ICAN).

(3)
AYODELE M. ADETUYI
Partner
Mr. Adetuyi attended Egan High School Ojo, Lagos and Olabisi Onabanjo University, Ago
Iwoye, Ogun State. AMA obtained Master in Business Administration (MBA, Finance) from
University of Lagos, Akoka, Nigeria.
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He is a member of The Institute of Chartered Accountants of Nigeria (ICAN) and The

Chartered Institute of Taxation of Nigeria (CITN).
Before joining BBc in 2006, he had worked with A A Consultants; Royal Value International
Limited and Oladeji Olagunju & Co (Chartered Accountants), where he rose to the position of
an Audit Manager.
Mr. Adetuyi also has the passion of impacting knowledge, and currently serves as Director of
Studies at Foresight Professional Institute, Lagos, an ICAN Study Centre. He is a member of
Ikoyi Club.
AMA who was admitted a Partner on 1 October, 2010 is currently the Tax Partner, IFRS
Paper Presenter and Chairman of the firms International Financial Reporting Standard
(IFRS) implementation Team.

(4)
GLORIA C. EGWUENU (Mrs)

Partner
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Mrs. Egwuenu attended Ibru College Agbarha Otor, Delta State and Edo State University,
Ekpoma, Edo State, where she studied Accountancy. Also, she studied at University of Lagos,
Akoka where she obtained Master of Science in Management (M.Sc. Management).
Mrs. Egwuenu who is a member of the Institute of Chartered Accountants of Nigeria (ICAN)
is an IFRS Paper Presenter and the Vice Chairman of the firms IFRS implementation team.
She had worked with Omega Bank Plc (now Enterprise Bank Limited), Shonubi Abah & CO
(Chartered Accountants) and Bytex Nigeria Limited before joining Balogun Badejo & Co.
GCE as she is popularly called became a partner in the firm on 1 April, 2011 and she is
currently the Administrative Partner.
1.10 PARTNERS AND SENIOR TECHNICAL STAFF

1.10.1
Partners: {full time - 4}
NAME
QUALIFICATIONS
EXPERIENCE
1. J O Obogwu
MBA, FCA, FCTI
28 years
2. E U Itodo
B.Sc., M.Sc. ACCA, ACA, ACTI
21 years
3. A M Adetuyi
B.Sc., MBA, FCA, ACTI
17 years
4. G C Egwuenu (Mrs)
B.Sc., M.Sc., ACA
17 years
1.10.2 Senior Technical staff:

5. S A Ademosu
ACA
20 years
6. I O Showa
ACA
11 years
7. O O Agbeje
HND, ACA
13 years
8. M O Akinola
MBA, HND, ACA
13 years
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9. J T Abiodun
B.Sc., ACA
8 years
10. C I Onah
HND, ACA
12 years
11. O M Odiase (Miss)
B.Sc., ACA
6 years
12. C M Udeagbala (Miss) B.Sc., ACA
5 years
13. V O Opajobi (Miss)
B.Ed., ACS
14 years
14. O F Moyegun
B. Agric, PDCA
14 years
15. K O Fashina (Mrs.)
LL.M, LL.B, BL, ACS
7 years
(Legal Expert)
1.11 QUALIFYING SENIORS AND TRAINEES

At varying degrees of qualification and experience over 40 in number.
2.0 OUR OFFICES AND CONTACT INFORMATION

2.1 OFFICES IN NIGERIA
Our firm has offices in the following locations in Nigeria:
Abuja
Ibadan
Akure
Kaduna
Benin City
LAGOS
- Headquarters
2.2 OUR CONTACT OFFICES AND OFFICERS

Headquarters - Lagos
24, Ilupeju By-Pass, Ilupeju
G P O Box 3260, Lagos
Tel: +234 (01) 898 1859, 794 5733
Website: www.bbccharter.com
Email: bbccharter@yahoo.com and bbc@bbccharter.com
Headquarters contact officers:
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Name
Designation
GSM
Email
08023139061
obogwu@bbccharter.com
joobogwu@yahoo.com
Deputy Managing Partner 08036165079
euitodo@bbccharter.com
euitodo@yahoo.com
J O Obogwu Managing Partner

E U Itodo
Abuja office
Suit 24 Dee Awwal Plaza
2nd Floor, Plot 2044, Michael Okpara Street
P O Box 8601
Wuse, Zone 5, Abuja
Abuja office contact officers:
Name
Designation
GSM
Email
C I Onah
Senior
08063166927
chris.ibe65@yahoo.com
3.0 SIMILAR AND OTHER ASSIGNMENTS

We have relevant cognate experience and a strong record of value-added service to our
esteemed clients which we have been doing for over four (4) decades of our existence.
3.1 SIMILAR ASSIGNMENTS

Some of the clients in the Insurance Industry that we have serviced in areas of Audit &
Assurance and other assignments are listed below:
Capic Hexagon Limited Protea Hotels Limited, Emotan
Fountain Hotels Limited
Astoria Hotel
Honeywell Flour Mills Plc
Equity Assurance plc
Allport Cargo Services Limited
United Nations Development Programme (UNDP)
World Bank Projects
Nigeria Social Insurance Trust Fund (NSITF)
Obafemi Awolowo University (OAU)
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Grange Education Limited (Grange Schools)
IPWA Plc
Universal Steels Limited
C A Consultants Limited
Federal Inland Revenue Service (FIRS)
Joint Tax Board
Nigeria Institution of Estate Surveyors and Valuers (NIESV)
Electronic Payplus Limited
E-Purse Limited
Man-Mountain & Company Limited
Thomas Wyatt Plc
Bowen Microfinance Limited
National Action on Control of Aids (NACA)
National Malaria Eradication Programme (NMEP)
3.2 INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS)

Though the IFRS took off effectively in Nigeria from 2012 financial year in line with the
Roadmap approved by the Federal Government of Nigeria, we have acquired skills and
exposures prior to the effective date knowing full well that our clientele base cuts across
virtually every sector of the economy. The joint assignments with our Global Partners on
IFRS assignments added value to BBC Professionals, coupled with Foreign Trainings
attended by our staff and Partners.
We have been privileged to render various services in IFRS viz: Public Trainings; Financial
Statements Reviews; Conversions and full Implementations amongst others. Some of the
clients serviced by our Firm on IFRS related assignments are:
Equity Assurance Plc

IPWA Plc
Man Mountain & Company Limited
Obafemi Awolowo University (OAU), Ile Ife
Greenwich Trust Limited
Academy Press Buz Forms Ltd
Bells University, Otta
Thomas Wyatt Nigeria Plc
Grange Schools
Coates Brothers Limited
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Eldorado Construction Co. Limited
Some BBC Partners in a group photograph with our Foreign Partner after an
IFRS Training organized by the Firm in Collaboration with LDP (South
Africa) a member of PrimeGlobal at Lagos Airport Hotel, Ikeja - Lagos
3.3 OTHER ASSIGNMENTS

Some Other assignments carried out by the firm in recent past are
listed below:
AUDIT AND ASSURANCE SERVICES
Thomas Wyatt (Nigeria) Plc
IPWA Plc
Pipelines & Products Marketing Company Limited

(PPMC)
INTERNATIONAL
STANDARD (IFRS)
FINANCIAL
REPORTING
IPWA Plc
NEM Insurance Plc
Bowen Micro Finance Bank
Academy Press Buz Forms Ltd
Grange Schools
Bells University, Otta
Thomas Wyatt Nigeria Plc
West African Examinations Council (WAEC)
Grange Schools
Coates Brothers Limited
Mission Securities Limited
Eldorado Construction Co. Limited
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Caleb University, Imota
Honeywell Superfine Foods Limited
Calyx Trust Limited
Resort Securities & Trust Ltd
Lagos State University (LASU)
AIICO Insurance Plc
Institute of Chartered Secretaries & Adm. of Nigeria
Afolabi Dimehin & Sons Limited
(ICSAN)
Tax Appeal Tribunal
Nfi Insurance Plc
Jonnic Communications (WA) Limited
Nigerian Institution of Estate Surveyors and Valuers
NITEL/MTEL
(NIESV)
Falcon Petroleum Limited
Spectrum Books Limited
Credite Bank Nigeria Limited (Closing Activities)
Several Public Training Courses and general Advisory.
RECEIVERSHIP, LIQUIDATIONS AND

DUE DILIGENCE
Kainji Textiles Limited
Allport Cargo (W.A) Limited
Mercantile Press Limited
Coates Brothers (WA) Limited
Oluyori Bottling Ind. {Nigeria} Limited
Metal Furniture Nigeria Limited
Penguin Dairies Limited
Metec (W.A.) Nigeria Limited
Max & Kelly Nigeria Limited
Nigerian Foundries Limited
Unit Six Agric Industry Limited
Metro-Urban Homes Limited
Federal Radio Corporation of Nigeria {FRCN}
Jeromelaiho & Associates Limited
National Broadcasting Commission {NBC}
News Agency of Nigeria {NAN}
Nigerian Television Authority {NTA}
Prime Publications Limited
The Daily Times of Nigeria Plc - NSE Quoted
Life Press Limited
TAXATION SERVICES
Pipelines & Products Marketing Company Limited (PPMC)
NEM Insurance Plc
Bowen Micro Finance Bank
OAS Helicopters

Allport Cargo (W.A) Limited
Coates Brothers (WA) Limited
Metal Furniture Nigeria Limited
Metec (W.A.) Nigeria Limited
Nigerian Foundries Limited
Enertek Bendix Limited
Several others
4.0 OUR UNDERSTANDING OF THE ASSIGNMENT

4.1 Introduction
As part of its drive to provide proper accountability to its directors, Kunoch Hotels Limited called for
the audit of its Statement of Affairs.
4.2 Brief History of Kunoch Hotels Limited

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Kunoch Hotels Limited is a subsidiary to Kunoch Limited a company incorporated on 8

August, 1991.
From inception, Kunoch has adopted environment policy and high level of social
responsibility. This has manifested in promoting and investing in environmentally friendly
ventures, incubating valuable ventures in education, hospitality industry, financial industry,
information communication technology (ICT) and a range of charitable activities.
Kunoch Hotels Limited is affiliated to the following companies:
-
Kunoch Constructions Limited
Kunoch Trading Limited, and
Kunoch Motors Limited
4.3 Need for audit of financial statements

The need for stewardship, accountability, compliance with the statutory provisions and good
corporate governance of any organization has made the audit of its financial statements very
necessary. Hence the statutory audit has become a credible process by which professional
accountants look at what has transpired in an organization within a specified period and issue
an audit opinion as to the true and fair view of the entitys financial statements.
There is also the need for the audit exercises to be conducted timely within an agreed period
and/or at regular intervals or else, it will not be useful in serving the intended purpose. In
doing this, the confidence of the stakeholders in the programmes and projects will be greatly
enhanced.
In line with the above, our firm BBC PROFESSIONALS [Chartered Accountants] hereby
forward its application to be considered for appointment as external auditors to Kunoch
Hotels Limited. Having been in existence for over forty five (45) years in rendering similar
services to numerous clients, we want to be part of Kunochs Project of Transformation,
Transparency and Accountability.
4.4 Our duties as external auditors to Kunoch Hotels Limited

Our duties shall include but not limited to:
Critical review of internal control processes and procedures with a view to ascertaining
the existence, adequacy and compliance of the system in the Organization;
Carrying out the audit of Kunochs Book of Accounts and expressing our opinion as to
the true and fairness of the financial statements;
Issuing our reports at the end of the audit exercise which shall include the audited
financial statements and management control report (Management Letter);
Bringing to the knowledge of the Management all observed weaknesses in the internal
control systems and operations generally; and making recommendations for
improvements.
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Following up all previous recommendations in order to ensure that the issues raised
are implemented accordingly and rendering assistance where necessary.
5.0
BRIEF METHODOLOGY PROPOSED FOR

PERFORMING THE AUDIT SSIGNMENT
5.1 Summary of stages:

In summary, our job when appointed as external auditor by Kunoch Hotels
Limited is as illustrated below:
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5.2 Preliminaries:
Upon our appointment as External Auditors, we shall carry out the following:
Forward our Letter of Acceptance signifying our acceptance of the appointment
Issue Letter of Engagement which shall spell out the terms of engagement
Hold meeting with the members of the Board or Top officials (if necessary)
Hold meetings with the Management Team to discuss issues concerning the audit
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Issue our Audit Planning Memorandum

Consequently, we shall obtain necessary background information and documentation for the
purpose of the audit.
Such background information and documentation shall include but not limited to:
1. Certificate of Incorporation and Memorandum and Article of Association
2. Kunoch Hotels Limiteds Profile which will contain amongst others: History,
Establishment, Head Office, Other Offices, Board, officials, Top Management staff, etc
3. List of Bankers, Name of Account, Account Numbers and addresses of where the
accounts are maintained
4. Trial balance since the inception of the project (for audit purpose)
5. Management accounts
6. Systems process flow chart
7. Cash books (for all banks, cash and petty cash)
8. Bank reconciliation statements files for all the banks, cash and petty cash
9. Bank statements since the inception of the project
10. Authorization limit for cheques, purchases, contracts etc
11. Specimen signatures of Authorizing officers and signatories to the banks.
12. Schedule of Fixed assets (including additions, on-going projects, re-classifications,
revaluations & disposals)
13. Debtors/creditors schedules and their addresses
14. Age-analysis of debtors and creditors including details of bad debt provisions (if any)
15. Other financial and income statement schedules
16. Summary of income received (classified into types, locations, Sources etc)
17. List of accredited suppliers and nature of supplies (both foreign and local)
18. Stock taking report (including stock sheets, valuation of closing stocks & exception report)
19. Internal auditors reports
20.Boards review of processes for risks, internal control and compliance
21. Governance information and Boards strategic focus/plans
22. Organizational chart
23. List of management staff and their designation
24. List of staff
5.2 Preliminaries (Contd):

25. Staff payroll
26. Staff loans and advances register/ledger
27. List of related third parties and nature of relationship.
28.Transactions carried out with related parties.
29. Major contracts and contractual agreements
30.Schedule of contingent liabilities
31. Details of litigations and impact on Kunoch Hotels Limited
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32. Annual budgets (including capital expenditure budget)

33. Payment vouchers (samples required)
34. Journal vouchers (samples required)
35. Receipts & Invoices (samples required)
The above are expected to be obtained before or during the commencement of the
assignment after which such information will be discussed with the personnel to be
engaged in the assignment in order to:
acquaint professional staff with the background information;
brief the personnel on the core functions;
be well informed on the strategy to be adopted to ensure that the audit

objectives and timetable are borne in mind while carrying out the audit assignment;
design appropriate audit Programme;
brief the team members as to the requirements, timing and explanation of

work programme; and
ensure that the audit is carried out efficiently and effectively in accordance
with all relevant local, regional and international standards on auditing.
5.3
Work Plan and methodology
General procedures
We shall carry out pre-audit meeting/visits in order to clearly understand the
organizational structure in place, the relationship with other agencies, implementing
agencies, other Foreign and Local Establishments. This will enable us to know the
structure in place and plan our staff strength and mix for the audit field work.
The preliminary discussions will enable us to design appropriate audit programme
which will be used by the Project Team(s). In effect, Audit Programme and other
procedures designed for the assignment would be shared amongst the
team members as worksheet to be guided by the Engagement Partner with
a view to ascertaining:
the existence of internal control systems;
adequacy and reliability of internal control system;
whether Kunoch Hotels Limited has internal audit in place, their effectiveness and
extent of reliance to be placed on its work;
the main source of revenue or funds;
other sources of income available;
expenditures made and expenses pattern at the Head and branch offices;
recording, presentation and disclosure of transactions in the financial statements;
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that incomes and expenditure have been treated accordingly and also with a view to
identifying:
i)
adequacy of accounting and internal control system;
ii)
whether all incomes recorded were properly treated in the financial
statements;
iii)
adequate monitoring of expenditure and their validity;
iv)
that expenditure are eligible and duly authorized; and
v)
any ineligible expenditure and in-adequacies in record keeping for inclusion
in our management control report.
We shall carryout third party confirmation as part of our audit evidence which shall
support our audit opinion. Using the addresses collected from Kunoch Hotels Limited,
we shall:
write the Legal Advisers with a view to obtaining first hand information on
litigations involving Kunoch Hotels Limited or any of the Partners. This will assist
us in knowing the extent of exposure to other parties and also enable us to indicate
same in the contingent liabilities as note to the audited financial statements;
send circularization letters to all Bankers to confirm the account balances as at the
end of the year or period as the case may be;

circularize the Debtors at the year/period end in order to obtain evidences to
5.4
corroborate the records and this will form part of our audit evidences;
also circularize Creditors for the same purpose of obtaining audit evidences to
support our opinion.
PROCESS OVERVIEW AND QUALITY ASSURANCE

Process overview and quality assurance obtainable in BBC is better experienced than
explained. Our process starts by planning the audit assignment. The plan sets out clearly
what Audit objectives we intend to achieve and at what time frame.
In summary, the process is displayed in Risk and Quality Assurance Flow
Chart stated below:
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4. POST ASSIGNMENT
-Reports & recommendations to Mgt.
-Discussion of issues raised during the
assignment
-Identification of key officers that has
responsibility for mitigating risks
-Follow up of issues raised and progress
made to improve the Mgt Processes
3. HOME OFFICE
-Work done by staff passed to the
Supervisor for review
-Manager and Engagement Partner shall
review the Files and Reports
-Files and Reports shall be passed to the
quality control department for final
review
1. PRE-COMMENCEMENT
- Briefings from the Supervising Partner
- Completion of Ethics and
Independence documentations
- Review of Business environment that
Client operates
-Assessment of likely Market and
business risks
2. FIELD WORK
-Review of Client Systems, Processes
and Procedures
-Review of Business and market risks
-Evaluation of the impact of Transactions
with related parties and others
-Review of Going-concern assumptions
made by Mgt
Although the Supervising Partner will be in-charge of the audit, we have a quality
assurance department headed by a Senior Partner, where all plans and jobs go through to
ensure completeness, accuracy and compliance with the relevant local and international
standards, laws and regulations.
In effect, our reports and other deliverables shall pass through the department before we
issue the draft reports to the Client.
5.5
Final reports
Having carried out the audit field work and various stages of review, we shall issue the
draft financial statements and management control report alongside with outstanding
issues (if any). The management control report shall contain details of our review, issues
observed, consequences of lapses and recommendations.
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We shall hold further meetings with the top management, finance committee (if
applicable) and Organization members to discuss the draft financial statements and
management control report.
After necessary consideration and approvals of the financial reports by all concerned, we
shall issue the final audited financial statements and management control report to the
Organization.
5.6
Conclusion
We recognize that all methodologies to be adopted in carrying out the audit may not have
been spelt out fully in this Proposal while other approaches and methodology will be
contingent on-the-job and situations that may arise during the work.
The above is therefore the summary of what we intend to do if appointed by Kunoch
Hotels Limited to audit its Statement of Affairs.
6.0
PROPOSED TEAM MEMBERS AND CVS OF KEY PROFESSIONAL STAFF
6.1 TEAM COMPOSITION AND TASK ASSIGNMENTS

Our understanding of the project is that the audit will be for the Statement of
Afairs of Kunoch Hotels Limited. The Structure for management which shows
the designation of proposed project personnel in the firm and intended position
during the project execution is as shown below:
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The Proposed Team was chosen considering the Client, Nature of Job, envisaged
Timing, Deliverables expected and most importantly, the experience, exposure
and calibre of Personnel.
We are confident that the Staf mix will be adequate for the project and if there is
need to deploy additional personnel, we shall act accordingly.
6.2 CURRICULUM VITAE OF SOME KEY PROFESSIONAL STAFF

Concurrent Reviewer/Partner
Proposed Position:
Name of Firm:
BBC Professionals
James Ofoma OBOGWU
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Name of Staff:
Accountancy/Auditing/Taxation
Profession:
13 July, 1968
Date of Birth:
Experience:
28 Years
Nationality:
Nigerian
Membership of Professional Societies:

1.
Institute of Chartered Accountants of Nigeria - ICAN
2.
Chartered Institute of Taxation of Nigeria - CITN
Education:
School
Date
Qualification
St Pauls Grammar School, Ebu
1982 1987
WASC/GCE OLevel
University of Benin, Benin City
1999 2001
MBA (Business Admin.)
Employment Record:
Company
Period
Position
BBC Professionals
2013 to Date
Managing Partner
BBC Professionals
2005 to 2012
Partner
Balogun Badejo & Co
2001 to 2004
Audit Manager
Balogun Badejo & Co
1997 to 2001
Audit Senior
Balogun Badejo & Co
1986 to 1997
Audit Trainee
Key Qualifications including experience in previous years:

CLIENT
NATURE OF
ASSIGNMENT
PERIOD
ACTIVITY
PERFORMED
Audit
2012
Quality reviewer
NEM Insurance Plc
Audit
2008
Quality Reviewer
Page 27
Confidence Insurance Plc
Audit
2007
Supervising Partner
Audit
2010 to date
UNDP NEX Programmes
Audit
2002
Team Leader
UNDP Supported Programmes
Audit
2005
Ideal Flour Mills Limited
2000 to 2006
2000 to 2007
World Bank Assisted Projects

BRD Loan 2988 UNI (MSADPII-ARMTI)
2001
World Bank Assisted Project

IDA Credit 2517 UNI
2002
South-South Healthcare Delivery

Programme
2002
UNDP NEX Programmes
2002
UNDP NEX Programme
2002
Languages (Written and Spoken):

Igbo
Excellent
English
Excellent

Engagement Partner
Proposed Position:
Name of Firm:
BBC Professionals
Everestus Uche ITODO
Name of Staff:
Page 28
Accountancy/Auditing
Profession:
15 December, 1973
Date of Birth:
Experience:
21 Years
Nationality:
Nigerian
Education:
School
Date
Qualification
University of Lagos, Akoka

Oxford Brookes University, Oxford, UK
Skolak Resources Information Tech. Centre
St. Theresas College, Nsukka
Ifrouka Primary School, Amalla
2011
2009
1999
1992
1986
M.Sc. (Management)
B.Sc. Applied Accounting
Cert. Data Processing
Senior Sec. School Cert.
First School Leaving Cert.
Professional qualifications:
Institute of Chartered Accountants of Nigeria
ACA
Chartered Institute of Taxation of Nigeria
ACTI
Association of Chartered Certified Accountants, UK
ACCA
Employment Record:
Company
Period
Position
BBC Professionals
2013 to Date
BBC Professionals
2009 to 2012
Partner
Balogun Badejo & Co
2006 to 2009
Manager, Supervisor,
Audit Senior
Muallahyidi & Co, Kaduna
2003 to 2006
Acting Audit Manager
Supertex Limited, Kaduna
1995 to 2003
Shift Section Controller
Union Adhesive and Chem. Co Ltd.
1993 to 1995
Administrative Clerk

CLIENT
NATURE OF
ASSIGNMENT
PERIOD
ACTIVITY
PERFORMED
Audit
2012
Engagement Reviewer
NEM Insurance Plc
Audit
2011
Supervising Partner
Page 29
NFI Insurance Plc
Audit
2008
Team Leader
NACA Government of Nigeria
Audit
2012
Engagement Partner
Pipelines & Products Marketing

Limited (PPMC)
Audit
2011
2008
Team Coordinator
2005
Team Leader
BRD Loan 2988 UNI (MSADPII-ARMTI)
2004
South-South Healthcare Delivery

Programme
2007
Federal Housing Authority Audit
2004
Audit of financial
Statements
2007 NEX/NGO Audit - UNFPA

Assisted Projects
Audit
Ideal Flour Mills Limited
2006 to 2009
2008 to 2010
Sellmetals Limited
2007 to 2009

English & Igbo
Excellent
Hausa
Fair

Proposed Position:
Name of Firm:
Name of Staff:
Audit Manager
BBC Professionals
Olaniyi O AGBEJE
Page 30
Date of Birth:
Experience:
12 January, 1971
13 Years
Nationality:
Nigerian
Education:
School
Ondo State Polytechnic, Owo
Date
2001
Qualification
HND Accountancy
Comprehensive High School, Ayedun Ekiti
1993
Senior Sec. School Cert.
Army Children Primary School, Kakuri, Kaduna 1987
First School Leaving Cert.
Professional qualification:
Institute of Chartered Accountants of Nigeria (ICAN)
ACA
Employment Record:
Company
Period
Position
BBC Professionals
2013 to date
Audit Manager
BBC Professionals
2011 to 2013
Assist. Audit Manager
Balogun Badejo & Co
2010 to 2011
Audit Supervisor
Temidayo, Adebayo & Co
2001 to 2009
Supervisor, Senior

CLIENT
NATURE OF
ASSIGNMENT
Audit
PERIOD
ACTIVITY
PERFORMED
2012
Supervisor
Nem Insurance Plc
Audit
2011
Team member
NFI Insurance Plc
Audit
2008
Team member
Page 31
Coates Brothers (W.A) Ltd
Audit
2012
Team Leader
Pipelines & Products Marketing

Limited (PPMC)
Audit
2011
Team Member
2008
Zonal Leader
2007 NEX/NGO Audit - UNFPA

Assisted Projects
Audit
2007
Team Leader
Audit
2012
Team Leader
Ekiti State Bond
Audit
2013
Team Leader
Audit
2010 to 2012
Team Leader
Sellmetals Limited
Audit
2011 to 2013
Team Leader

English
Excellent
Yoruba
Excellent

Team Leader
Proposed Position:
BBC Professionals
Name of Firm:
Page 32
M O Akinola
Name of Staf:
22 November, 1972
Date of Birth:
Experience:
13 Years
Education:
Name of Institution(s)
Obtained
The Polytechnic, Ibadan
1997
The Polytechnic, Ibadan
Nationality:
Nigerian
Degree(s) Obtained
Date
H.N.D. Accountancy
ICAN/ATS (AAT)
1993
Membership in Professional Associations:

(1) Institute of Chartered Accountants of Nigeria (ICAN)
Employment Record
Employer
Date
BBC Professional
2013 to date
A & G Insurance Co. Ltd
Position
Audit senior
2008 2012
Chrisland Educational Org.
Accountant
2005 to 2006
Asst.
Accountant
Trustworld Insurance Limited 2002 - 2006
Femi Johnson & Co.
Account & Finance
2000 2002
Account
Supervisor
English & Yoruba -
Excellent in both

CLIENT
NATURE OF
ASSIGNMENT
PERIOD
ACTIVITY
PERFORMED
Page 33
UNDP NIM/NGO 2012
Audit
2012
Team member
NACA Government of Nigeria
Audit
2012
Team Leader
Nigerian Institute of Architects
Audit
2012
Team Leader
Nigerian Institution of Estate

Surveyors & Valuers
Audit
2012
Team member
Nigeria Social Ins. Trust Fund
Audit
2011
Team member

English & Igbo
Excellent in both
Yoruba
Fair

Team Member
Proposed Position:
BBC Professionals
Page 34
Name of Firm:
C M Udeagbala
Name of Staf:
11 November, 1982
Date of Birth:
Experience:
5 Years
Education:
Name of Institution(s)
Obtained
University of Nigeria, Nsukka
Nationality:
Nigerian
Degree(s) Obtained
Date
B.Sc. Accounting
2007
Membership in Professional Associations:

(1) Institute of Chartered Accountants of Nigeria (ICAN)
Employment Record
Employer
Date
BBC Professional
2012 to date
Balogun Badejo & Co

Trainee
Atuyi Prudency Ltd
Position
Audit senior
2009 2012
Graduate
2008 2009
Graduate
Trainee
English & Ibo
- Excellent in both
7.0 DOCUMENTS ATTACHED

The following documents are attached to this Proposal:
Page 35
Certificate of Registration with Corporate Affairs

Commission (CAC)
Evidence of Registration with Professional Practice and
Eligibility to Practice
Copy of Tax Clearance Certificates
Copy of VAT Certificate and evidence of remittance to FIRS
Evidence of pensions/Social Security Contribution in
accordance with the Pension Act, 2004
Registration with Financial Reporting Council of Nigeria
Page 36
Certificate of Registration
with Corporate Affairs
Commission (CAC)
Page 37
Page 38
Evidence of Registration with

Professional Practice and
Eligibility to Practice
Page 39
Page 40
Page 41
Page 42
Page 43
Page 44
Page 45
Copy of Tax Clearance

Certificates
Page 46
Page 47
Page 48
Page 49
Copy of VAT Certificate and

evidence of remittance to
FIRS
Page 50
Page 51
Page 52
Evidence of Pensions/Social
Security Contribution in
accordance with the Pension
Act, 2004
Page 53
Page 54
Page 55
Page 56
Page 57
Registration with Financial

Reporting Council of Nigeria
Page 58
Page 59
Page 60
Page 61
Page 62

Kunoch Hotels Audit Proposal

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PROPOSAL FOR APPOINTMENT

Kunoch Hotels Limited

KUNOCH HOTELS LIMITED

1.0 Brief introduction of our firm

2.0 Our Offices and Contact Information

3.0 Similar and Other assignments

4.0 Our understanding of the assignment

5.0 Brief Methodology proposed for

6.0 Proposed Team members and

7.0 Documents attached

Certificate of Registration with Corporate Affairs Commission (CAC)

1.0 BRIEF INTRODUCTION OF OUR FIRM

1.2 CHANGE OF NAME

1.3 INTERNATIONAL AFFILIATION

1.5 TEAM SPIRIT

BBC Partners at a Brainstorming session

1.7 REGISTRATION WITH RELEVANT AUTHORITIES

The Institute of Chartered Accountants of Nigeria (ICAN)

Public Practice Section of ICAN (PPS)

Corporate Affairs Commission (CAC)

Securities & Exchange Commission (SEC)

Office of the Auditor-General of the Federation (AGF)

Office of the Accountant-General of the Federation (AGF)

Some Offices of the Auditor-General of the States

Chartered Institute of Taxation of Nigeria (CITN)

Bureau of Public Enterprises (BPE)

PrimeGlobal global network of accounting and consulting firms

Financial Reporting Council Of Nigeria (FRCN) - Partners

1.8 AVAILABILITY OF APPROPRIATE SKILLS

1.9 KEY DRIVERS OF OUR PRACTICE

Deputy Managing Partner

1.9 KEY DRIVERS OF OUR PRACTICE (contd)

A Practice Monitoring Reviewer of the Institute of Chartered Accountants of Nigeria

1.9 KEY DRIVERS OF OUR PRACTICE (contd)

A Practice Monitoring Reviewer of the Institute of Chartered Accountants of Nigeria

1.9 KEY DRIVERS OF OUR PRACTICE (contd)

He is a member of The Institute of Chartered Accountants of Nigeria (ICAN) and The

1.9 KEY DRIVERS OF OUR PRACTICE (contd)

GLORIA C. EGWUENU (Mrs)

1.10 PARTNERS AND SENIOR TECHNICAL STAFF

Partners: {full time - 4}

MBA, FCA, FCTI

B.Sc., M.Sc. ACCA, ACA, ACTI

B.Sc., MBA, FCA, ACTI

B.Sc., M.Sc., ACA

1.10.2 Senior Technical staff:

MBA, HND, ACA

11. O M Odiase (Miss)

12. C M Udeagbala (Miss) B.Sc., ACA

13. V O Opajobi (Miss)

15. K O Fashina (Mrs.)

LL.M, LL.B, BL, ACS

1.11 QUALIFYING SENIORS AND TRAINEES

2.0 OUR OFFICES AND CONTACT INFORMATION

2.2 OUR CONTACT OFFICES AND OFFICERS

Deputy Managing Partner 08036165079

J O Obogwu Managing Partner

3.0 SIMILAR AND OTHER ASSIGNMENTS

3.1 SIMILAR ASSIGNMENTS

Capic Hexagon Limited Protea Hotels Limited, Emotan

Fountain Hotels Limited

Honeywell Flour Mills Plc

Equity Assurance plc

Allport Cargo Services Limited