ISLAMABAD, Dec 22: The Securities and Exchange Commission of Pakistan (SECP) has directed all listed companies and their subsidiaries to comply with the “International Standard on Auditing 720” and other information in the documents containing audited financial statements.
Through a circular (No 23) dated December 14, the SECP has directed all listed companies and their subsidiaries to provide other information contained in their annual report to their external auditors, as such term was defined in the International Standard on Auditing 720, stated an official announcement issued here on Thursday.
Besides, the listed companies must provide sufficient time to external auditors to review and comment upon any material inconsistencies found in such other information where it may contradict the information contained in the audited financial statements.
The direction would enhance credibility of the financial statements enabling the users of the financial statements to obtain more reliable and authentic information and to make investment decisions more prudently.
