KARACHI, Aug 27: Effective from July this year the Institute of Chartered Accountants of Pakistan (ICAP) has introduced ‘Financial Statements Review’ which entails evaluation of audited financial statements of companies, said ICAP President Zafar Iqbal Sobani at a press conference held on Saturday.

He said that it was a step forward in ensuring that financial statements conform to the international accounting standards, company law and other statutory requirements.

The purpose of ICAP president’s press conference was to familiarize the public with the workings and achievements of ICAP. Sobani said that the institute had adopted international code of professional ethics issued by the International Federation of Accountants (IFAC) and it ensured compliance by its members. Regular reviews of the members’ work were carried out, under the aegis of Investigation Committee of the ICAP Council.

Giving details of other initiatives, he said that the institute was continually involved in the following areas: Contribution in enhancing the Corporate Governance Framework in the country; Contribution in improving fiscal and corporate laws; Developing, adopting and monitoring compliance of standards on accounting and auditing; and Providing guidance on technical matters to the members.

He claimed that ICAP was setting example in self regulation and contributing nationally by proactively participating in development of several policies, laws, rules and regulations relating to trade, taxation, corporate and financial sector. Mr Sobani said: “The government continually engages the institute and its members in consultative process on several issues of national importance”, adding that the coordination committees had been formed with SECP, State Bank of Pakistan and Central Board of Revenue and meetings were frequently held.

Highlighting the work of ‘Quality control review programme’ of the institute he said that primary objective of the programme was to establish an appropriate quality assurance framework in respect of audits of financial statements conducted by members and member firms. “Over the years we have achieved a lot in terms of conducting these reviews and now a firm after the review receives a rating designated as either ‘In accordance’ or ‘Not in accordance’ with the requirements of international standards on auditing”, said the ICAP chief.

All firms who achieve satisfactory rating were posted on ICAP’s web site, thus making them eligible for carrying out audits of companies listed on stock exchanges. Firms who fell short in attaining minimum standard to get satisfactory rating were guided by the institute to reach the requisite level.

He said that the institute had made it mandatory for all members to attend Continuing Professional Development Programme. Under this programme several seminars, workshops and conferences were held during a year for keeping members familiar with the latest developments.

The ICAP president said that it was important that new CA Ordinance took effect as soon as possible because implementation of proposed amendments therein would help the institute improve its programme significantly in coming years and make it applicable across the board.

In relation to its international standing, Mr Sobani said that ICAP was a member of IFAC, International Accounting Standards Board (IASB), Confederation of Asian & Pacific Accountants (CAPA), South Asian Federation of Accountants (SAFA) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).