KARACHI, Aug 18: The World Bank delegation head Ismaillia B. Cessesy has said that the World Bank was in the process of formulating Cannons of Accounting and Auditing Standards.

Talking to the members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he said he was here to have private sector's proposals on the standardisation of prevailing system of accounting and auditing in Pakistan particularly in the private sector-based companies.

He said that the adoption of International Standards on Accounting and Auditing in Pakistan would help strengthen Pakistan's financial structure and reduce the risk of financial marketing crisis, improve competency in the marketplace through enhanced transparency and thus attract foreign investment in the country.

Earlier, President FPCCI, Riaz Ahmed Tata said accounting and auditing methods in Pakistan are compatible with the international standards and many of the public and private sectors institutes have adopted modern accounting and auditing methodologies, says a press release.

He said some of the public and private enterprises particularly financial and non-financial institutes were maintaining their accounts in line with international standards for auditing.

He said that the auditing and accounting techniques have significantly improved during the last decade but pointed out that due to undocumented economy the accounting and auditing standards in small and medium industries were poor and had been badly neglected in agriculture sector.

He said that the high cost of doing business including multiplicity of taxes made business community reluctant in maintaining proper and regular accounts. He urged the WB representative to keep in view the concerns of private sectors while formulating their proposals and devising Cannons of Accounting and Auditing Standards.