Penalties Slapped on face of 13 Pakistani Auditors
In order to safeguard the investors’ interests, the Enforcement Department of the SECP took various regulatory and punitive actions during March and April.
According to the press release issued by SECP, it was informed that severe penalties were imposed on the statutory auditors of 13 unlisted companies for failing to act in conformity with the statutory requirements. The audit reports issued did not bring out material facts about the affairs of companies.
Although SECP did not disclose the names of guilty audit firms.
Besides imposing fines, the auditors were advised to discharge their responsibilities with due professionalism, giving an independent and objective opinion on financial statements of the companies. The details of action taken against the auditors were also shared with Institute of Chartered Accountants of Pakistan.
In a related development, the SECP also gave new business to audit firms and directed all the non-listed companies, designated as Economically Significant Companies under the 1984 Companies Ordinance to appoint a chartered accountant firm as external auditor holding a satisfactory rating under the Quality Control Review Program of the ICAP, w.e.f. the financial year beginning on or after July 1, 2012.