ISLAMABAD, June 27: The Securities and Exchange Commission of Pakistan (SECP) has penalised two chartered accountant firms, Arman & Co and Sajjad Safri & Co for negligence in the performance of their duties as auditors of listed companies, according to an official spokesman.

Their case has also been referred to the Institute of Chartered Accountants of Pakistan (ICAP) for taking suitable disciplinary action against them under the Chartered Accountants Ordinance, 1961 especially because this is not the first time that they have been found violating the relevant law.

Arman & Co, as auditor of a listed company for the financial year ended June 30, 2002, in its audit report failed to fulfil the disclosure requirements as laid down in the Companies Ordinance, 1984 and the International Accounting Standards (IAS) while preparing and circulating their client’s accounts.

Thus the chartered accountant neglected to draw attention of the members towards these instances of non-compliance and contravention. The SECP, therefore, imposed a fine of Rs 2000 on Mr Asrar ul Majeed Khan for negligence in performance of his duties.

Through another order, the SEC imposed a fine of Rs 4,000 on Sajjad Safri & CO, Chartered Accountant, under section 260 of the Companies Ordinance and Rule 35 of the Companies (General Provisions and Forms) Rules, 1985.

The action against the CA concerned has been taken because the audit report signed by Sajjad Saifuddin Safri was not on the prescribed Form 35-A. Moreover, he failed to draw attention of the members towards the deficiencies in disclosures required by the Ordinance and IAS in his Audit Report circulated to the members. Mr Safri had also been penalised earlier on similar professional misconduct in relation to audit of another listed company. The ICAP has also found Sajjad Saifuddin Safri guilty of negligence and misconduct in another case, the SECP added.