01-20-2010, 05:41 PM
Star
SC has given intervention (stay) order on CCP's decision.
ATR-14 is still applicable on ICAP's members in practice as well as in industry. Non-compliance is a professional misconduct.
Final decision will be of SC.
However, if SC is not giving its verdict in a short time, in two years (one has gone) all companies will have to enhance their auditors' fee to be compliant of ATR-14. All companies have already increased the fee to 75% of the required amount as per transitional provisions. (If this is not done by clients, no auditor will continue with the audit since it is professional misonduct for all audit firms to do so.) In such a situation, if SC's decision is not received and if fees are enhanced in two years, who will reduce the fees afterwards even if SC gives some contrary decision.
There are also some other pronouncements for reduction of audit fee. Specially in the cases of rotation of auditors, the new one will never be in a position to reduce the fee since it would fall in undercutting.
So, the issue is very critical and we hope SC will pass some very clear and in-time decision to remove the ambiguities. Delay in decision will be nothing but delay in justice (whatever it is).
Regards
KAMRAN.
SC has given intervention (stay) order on CCP's decision.
ATR-14 is still applicable on ICAP's members in practice as well as in industry. Non-compliance is a professional misconduct.
Final decision will be of SC.
However, if SC is not giving its verdict in a short time, in two years (one has gone) all companies will have to enhance their auditors' fee to be compliant of ATR-14. All companies have already increased the fee to 75% of the required amount as per transitional provisions. (If this is not done by clients, no auditor will continue with the audit since it is professional misonduct for all audit firms to do so.) In such a situation, if SC's decision is not received and if fees are enhanced in two years, who will reduce the fees afterwards even if SC gives some contrary decision.
There are also some other pronouncements for reduction of audit fee. Specially in the cases of rotation of auditors, the new one will never be in a position to reduce the fee since it would fall in undercutting.
So, the issue is very critical and we hope SC will pass some very clear and in-time decision to remove the ambiguities. Delay in decision will be nothing but delay in justice (whatever it is).
Regards
KAMRAN.
