SECP tells companies not to appoint unqualified auditors

The Securities and Exchange Commission of Pakistan (SECP) has noted instances where companies had appointed unqualified persons as their statutory auditors. In response to SECP’s proceedings on the subject, the companies invariably take the plea that such appointments were made as a result of misrepresentation by auditors.

The Institute of Chartered Accountant of Pakistan (ICAP) has also observed many cases of persons impersonating as chartered accountant and representing fake firms of chartered accountants.

In order to resolve this issue, the ICAP has offered its assistance for verification of genuineness of the auditors from resources available at the ICAP’s website(www.icap.org.pk/index.php/icap/downloads) or by contacting the ICAP secretariatat telephone number 021-99251636-39 or at membership@ICAP.org.pk

The SECP, therefore, directs all companies to use these resources to verify the particulars of chartered accountants or firms of chartered accountants before making appointment of auditor.

The SECP has further warned the companies that the appointment of any auditor without proper verification would be dealt with strictly. The SECP has also warned unqualified persons acting as auditors or impersonating as chartered accountant of civil and criminal liability under the 1984 Companies Ordinance and the 1961 Chartered Accountants Ordinance.