09-10-2003, 08:48 PM
<img src=icon_smile_big.gif border=0 align=middle> <img src=icon_smile_big.gif border=0 align=middle> <img src=icon_smile_big.gif border=0 align=middle> <img src=icon_smile_big.gif border=0 align=middle> Hey Pervez, you are not SECP, so SECP and Chartered Accountant are supposed to be in the Akhara <img src=icon_smile_big.gif border=0 align=middle>, you may be considered as Refereee <img src=icon_smile.gif border=0 align=middle>
So back to the discussion, yes I agree that I donât have much knowledge on this topic, thatâs why I asked to correct me if am not,
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote> The example is scope limitation which the auditor does not consider matterial in expressing an opinion on fairness of F/S
This you can find on page 343 of Auditing Practice Manual of ICAP.
Example Auditor is prohibited from physical count of inventories at the year end date, this will be a qualified report where no law is broken. And the auditor will use "Except for" qualification.
Then you made a very childish remark and i quote
"lets take an example, if auditors qualify his report that "proper books of accounts have not been maintained by the company""
You must be seriously jocking!!! A qualified report with these words should belong to accountants' museum (if there is such a thing)
This part cannot be in an audit report which is qualified, but in an audit report which is expressing an adverse opinion.<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote>
I appreciate your criticism, â that is not qualification rather scope limitation or simply disclaimer,â I agree with you, but what I m surprised about this that I didnât mean to the situations where auditor have to put a qualification, disclaimer, matter of emphasis or whatever, I just distinguished the Audit Report into two, i.e. Qualified Audit Report, and Clean Audit Report, and the auditorâs responsibility thereon, and SECPâs role in both the above cases,
But u took the topic towards the Chapter 6 of Audit Practices Manual, (that is just explaining that which matter is inserted in audit report in different situations),
I m not debating on that what does the auditor do, if he faces the non cooperation from the management regarding stock take etc. etc. etc. the reason might being that I was unable to explain my point of view or u were unable to understand the same,
Please read my post at least two times please understand what I m trying to say, and I m sure that there will be no audit report which u referred as museum item, but I m surprised that I have just took the example just to distinguish the Clean report from a Qualified or unclean report. I can give the examples of qualified report in which SECP was supposed to take the action, I personally wrote to SECP regarding such qualification, and asked from SECP about its action, (being share holder of the company), brief explanation of the qualification is as follows, the auditor qualified the report, regarding the non availability of the shares held as investment, further no alternative evidence provided to them, Those shares were related to mutual fund, which the company (a brokerage house) who got its report qualified acting as âAsset Management Companyâ for that fund (as mentioned in notes to the accounts), and I hope u will be aware to the law that Asset Management Co. is required to hold at least 10% holding of the fund. I m still waiting for the response from the SECP. And I m 100% confident that this will continue with my whole life, <img src=icon_smile.gif border=0 align=middle> as SECP is not against the companies, it is just against us <img src=icon_smile.gif border=0 align=middle>. I can give the examples of qualified report in which SECP was supposed to take the action, I personally wrote to SECP regarding such qualification, and asked from SECP about its action, (being share holder of the company), brief explanation of the qualification is as follows, the auditor qualified the report, regarding the non availability of the shares held as investment, further no alternative evidence provided to them, Those shares were related to mutual fund, which the company (a brokerage house) who got its report qualified acting as âAsset Management Companyâ for that fund (as mentioned in notes to the accounts), and I hope u will be aware to the law that Asset Management Co. is required to hold at least 10% holding of the fund. I m still waiting for the response from the SECP. And I m 100% confident that this will continue with my whole life, <img src=icon_smile.gif border=0 align=middle> as SECP is not against the companies, it is just against us <img src=icon_smile.gif border=0 align=middle>if u want the name of the company that i ll email you.
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote>Please quote the section of the law?<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote> Please refer to section 195 of the Companies Ordinance, and please donât mention the exceptions in the law.
No offence intended take care, as I m always in a Student Mood, as I learn a lot due to these kind of discussions,
Regards
S M R
Edited by - smraza on Sep 10 2003 40236 PM
So back to the discussion, yes I agree that I donât have much knowledge on this topic, thatâs why I asked to correct me if am not,
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote> The example is scope limitation which the auditor does not consider matterial in expressing an opinion on fairness of F/S
This you can find on page 343 of Auditing Practice Manual of ICAP.
Example Auditor is prohibited from physical count of inventories at the year end date, this will be a qualified report where no law is broken. And the auditor will use "Except for" qualification.
Then you made a very childish remark and i quote
"lets take an example, if auditors qualify his report that "proper books of accounts have not been maintained by the company""
You must be seriously jocking!!! A qualified report with these words should belong to accountants' museum (if there is such a thing)
This part cannot be in an audit report which is qualified, but in an audit report which is expressing an adverse opinion.<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote>
I appreciate your criticism, â that is not qualification rather scope limitation or simply disclaimer,â I agree with you, but what I m surprised about this that I didnât mean to the situations where auditor have to put a qualification, disclaimer, matter of emphasis or whatever, I just distinguished the Audit Report into two, i.e. Qualified Audit Report, and Clean Audit Report, and the auditorâs responsibility thereon, and SECPâs role in both the above cases,
But u took the topic towards the Chapter 6 of Audit Practices Manual, (that is just explaining that which matter is inserted in audit report in different situations),
I m not debating on that what does the auditor do, if he faces the non cooperation from the management regarding stock take etc. etc. etc. the reason might being that I was unable to explain my point of view or u were unable to understand the same,
Please read my post at least two times please understand what I m trying to say, and I m sure that there will be no audit report which u referred as museum item, but I m surprised that I have just took the example just to distinguish the Clean report from a Qualified or unclean report. I can give the examples of qualified report in which SECP was supposed to take the action, I personally wrote to SECP regarding such qualification, and asked from SECP about its action, (being share holder of the company), brief explanation of the qualification is as follows, the auditor qualified the report, regarding the non availability of the shares held as investment, further no alternative evidence provided to them, Those shares were related to mutual fund, which the company (a brokerage house) who got its report qualified acting as âAsset Management Companyâ for that fund (as mentioned in notes to the accounts), and I hope u will be aware to the law that Asset Management Co. is required to hold at least 10% holding of the fund. I m still waiting for the response from the SECP. And I m 100% confident that this will continue with my whole life, <img src=icon_smile.gif border=0 align=middle> as SECP is not against the companies, it is just against us <img src=icon_smile.gif border=0 align=middle>. I can give the examples of qualified report in which SECP was supposed to take the action, I personally wrote to SECP regarding such qualification, and asked from SECP about its action, (being share holder of the company), brief explanation of the qualification is as follows, the auditor qualified the report, regarding the non availability of the shares held as investment, further no alternative evidence provided to them, Those shares were related to mutual fund, which the company (a brokerage house) who got its report qualified acting as âAsset Management Companyâ for that fund (as mentioned in notes to the accounts), and I hope u will be aware to the law that Asset Management Co. is required to hold at least 10% holding of the fund. I m still waiting for the response from the SECP. And I m 100% confident that this will continue with my whole life, <img src=icon_smile.gif border=0 align=middle> as SECP is not against the companies, it is just against us <img src=icon_smile.gif border=0 align=middle>if u want the name of the company that i ll email you.
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote>Please quote the section of the law?<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote> Please refer to section 195 of the Companies Ordinance, and please donât mention the exceptions in the law.
No offence intended take care, as I m always in a Student Mood, as I learn a lot due to these kind of discussions,
Regards
S M R
Edited by - smraza on Sep 10 2003 40236 PM
