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Laws On Audit in Pakistan
Laws On Audit in Pakistan
Through various provisions the Ordinance imposes strict restrictions on auditor to maintain
Objectivity, Integrity and Independence during the audit engagement.
In addition a listed company cannot seek any additional services other than audit from their auditors
except with the guidelines issues by IFAC. Auditor should refrain from engaging in any management
function of the entity.
Banking Companies are required to change their auditors at max after every five years and
companies operating under all other sectors should at least rotate their engagement partner after
five years.
In addition Listed Companies are also require to get their half yearly accounts reviews by their
statutory auditors before it public publication.
The Institute through its bye laws maintains a strict control and monitoring on its members involved
in the profession and issues guidelines to remove difficulties. ICAP also collaborate with the
Securities and Exchange Commission of Pakistan on the preparation of laws and regulations to
regulate the corporate affairs in Pakistan.
Moreover the adoption of International Standards on Auditing (ISAs) is also the responsibility of
ICAP. In addition to that ICAP also issues guidelines conduct seminars for educating its members on
new developments made by IFAC.
The central bank requires all Banking and Non-Banking Financial Institution to submit their annual
audited accounts following the close of their financial years. For the purpose the central bank also
maintains a list of approved auditors under section 35(1) of the Banking Companies Ordinance,
1962. The panel is divided under three Categories viz. A, B and C. The law has also set out the limits
under each categories for the chartered accountants firms to act as auditors of banking and non
banking finance companies based on the size of the bank in terms of its capital, asset and no. of
branches.