It is so good to note that the Securities and Exchange Commission of Pakistan (SECP) has started imposing fine on professional auditors for signing off accounts that did not conform to the prescribed standards. The SECP is, however, shying away from imposing fine on directors for the same default. This long awaited, much desired action is, therefore, reduced to a partisan attitude.

It is well known that the accounts are prepared and published by directors. They are under legal burden to ensure that the accounts conform to the prescribed standards and present a “true and fair view”. Sparing the directors from fine therefore is, to say the least, most unreasonable. It is like imposing fine on SHO of police station for wrongdoing in his jurisdiction and concurrently releasing the guilty party without due punishment.

A regulator’s essential quality is even-handedness, not to skin some and spare others. The present SECP’s stance negates it.

The SECP’s approach is in line with the Jewish proverb that says, “If you can’t go over, you must go under.” So, better fall flat, face down, and spare the directors as, possessing the resources as they do, may rush to courts of law.

The SECP is urged kindly to enlighten the public with the reasons for imposing fines on auditors alone and sparing directors from fine for the same count.

Syed Aftab Haider

Karachi