08-01-2003, 06:21 AM
Yes you both are correct at some extent. But you both ,misunderstood, the point you raised are beyond the control of CCG and i am talking about the thing can be controlled by CCG.
I dont mean to apply the code fully for Pvt Ltd. My area of concern is finanical reporting. There are two ways, where income can be concealed or of fraudulent reporting. The first is intentionally as pointed out by Mr. SM RAZA but the second way is lack of knowlegde.
IF there is some thing is being done intentionally as it happens normally in developing countries, then govt. is doing remedies through its departments e.g. Income tax, NAB, State Bank etc by using qualified persons as much as possible. But what about those accountants that prepare accounts but there is no proper information to arrive at actual figure. Neither there is any system of accounting, IT nor procedure/ documentations. Specially when these accountants deal with costing plus financial reporting. It is very harmful for the investors. There are two types of investors here. One where these accountants are employed another is to whom this empolyer deals. Improper reporting either management or Financial may cause problem for these both investors.
As far as fraudulent reporting by qualifieds is concern, yeah most of the small C.A firms are doing these things,or concealment of income tax etc this is some thing beyond the control of CCG.
AS in UK there is certain ,limits for the Pvt companies beyoind which all laws related to Plc apply. For e.g Assets /turn over/ no of employees increases from a certain limit.
There should be check and balance to monitor the Pvt Ltd companies .
But in future in Pakistan these restrictions will be inforced because the concept of single member company adopted from UK law, CCG is also adopted from USA SEC regulations for plc.
Kh. Ehrar Hasan
I dont mean to apply the code fully for Pvt Ltd. My area of concern is finanical reporting. There are two ways, where income can be concealed or of fraudulent reporting. The first is intentionally as pointed out by Mr. SM RAZA but the second way is lack of knowlegde.
IF there is some thing is being done intentionally as it happens normally in developing countries, then govt. is doing remedies through its departments e.g. Income tax, NAB, State Bank etc by using qualified persons as much as possible. But what about those accountants that prepare accounts but there is no proper information to arrive at actual figure. Neither there is any system of accounting, IT nor procedure/ documentations. Specially when these accountants deal with costing plus financial reporting. It is very harmful for the investors. There are two types of investors here. One where these accountants are employed another is to whom this empolyer deals. Improper reporting either management or Financial may cause problem for these both investors.
As far as fraudulent reporting by qualifieds is concern, yeah most of the small C.A firms are doing these things,or concealment of income tax etc this is some thing beyond the control of CCG.
AS in UK there is certain ,limits for the Pvt companies beyoind which all laws related to Plc apply. For e.g Assets /turn over/ no of employees increases from a certain limit.
There should be check and balance to monitor the Pvt Ltd companies .
But in future in Pakistan these restrictions will be inforced because the concept of single member company adopted from UK law, CCG is also adopted from USA SEC regulations for plc.
Kh. Ehrar Hasan
