ISLAMABAD: The corporate sector regulator has revised reporting requirements for auditors operating under its jurisdiction and six different formats have been clearly identified for the auditors of various sectors.
The Securities and Exchange Commission of Pakistan (SECP) has issued Auditors (Reporting Obligations) Regulations 2018, which will be applicable for reporting periods after June 30.
The regulations including revised auditor’s report on consolidated financial statements, auditor’s review report on second quarterly financial statements/statements of compliance with corporate governance regulations.
The new regulation has stated that auditor of a company other than a banking company shall make out a report to the members of the company on its financial statements under the new format as required under section 249 of the SECP Act.
While the auditors of banking company will have to make a report to its members on the financial statements under a different format also specified in the SECP Act, and the auditors of insurance companies will follow the format under the Insurance Ordinance 2000.
The SECP said that the auditor of a holding company meeting criteria shall make out a report on the consolidated financial statements as required.
The auditor of a listed company shall make out a limited scope review report to the members on the second quarterly financial statements, SECP said.
The regulations also say that the auditor of a company will make out review report, where applicable, to the members on the statement of compliance with corporate governance regulations on the formats.
These includes formats for listed companies for review report on statement of compliance with the Listed Companies (Code of Corporate Governance) Regulations 2017.
In case of a public sector company, the review report on statement of compliance with Public Sector Companies (Corporate Governance) Rules 2013 will be on the format issued under Public Sector Companies (Corporate Governance Compliance) Guidelines 2018.
Published in Dawn, May 2nd, 2018