07-17-2003, 12:47 AM
AOA All
Nowadays SECP is too much active against Audit Firms (Usually Small firms) by penalising them.
I would like to ask whether it takes action against companies or not ? the answer will be "NO", why ??? can anybody justify it ?
Yes SECP must penalize Careless Auditors but it should also take actions against the companies as well.
In my opinion the SECP dont have the idea of "Audit", as it thinks that when auditor has signed the report, he is fully responsible for all matters of company, even he is also held responsible for the out of books transactions which are being discovered during the personal income tax assessments of the directors of the company.
what does the SECP do with the companies who get their reports qualified ? the answer will be "NOTHING"
i have gone through an audit report in which auditors have given qualification on investments made by the company as
"we were unable to verify the investments made by the company during the year amounting to Rs.xxxxxxxxxxxxxx (material figures),
there were two or three more qualifications in that report.
the above qualification shows that the management of the company has taken out the funds from the company.
in the above case the auditor fulfilled its responsiblity by expressing the qualified opinion, but what SECP did with the management of the company ?????? did it penalise it?
this is just one example, there are lot of examples.
but if an auditor shows negligence then it turns it Canon towards that small ghareeb auditor ? why ?
thats why every body has the opinion that SECP is just against the Chartered Accountants.
S M R
Nowadays SECP is too much active against Audit Firms (Usually Small firms) by penalising them.
I would like to ask whether it takes action against companies or not ? the answer will be "NO", why ??? can anybody justify it ?
Yes SECP must penalize Careless Auditors but it should also take actions against the companies as well.
In my opinion the SECP dont have the idea of "Audit", as it thinks that when auditor has signed the report, he is fully responsible for all matters of company, even he is also held responsible for the out of books transactions which are being discovered during the personal income tax assessments of the directors of the company.
what does the SECP do with the companies who get their reports qualified ? the answer will be "NOTHING"
i have gone through an audit report in which auditors have given qualification on investments made by the company as
"we were unable to verify the investments made by the company during the year amounting to Rs.xxxxxxxxxxxxxx (material figures),
there were two or three more qualifications in that report.
the above qualification shows that the management of the company has taken out the funds from the company.
in the above case the auditor fulfilled its responsiblity by expressing the qualified opinion, but what SECP did with the management of the company ?????? did it penalise it?
this is just one example, there are lot of examples.
but if an auditor shows negligence then it turns it Canon towards that small ghareeb auditor ? why ?
thats why every body has the opinion that SECP is just against the Chartered Accountants.
S M R