09-09-2003, 05:03 PM
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote>I hope this was not your last posting. For what i like about you is the persistency of efforts and frankness of opinions which i don't find very common among our fellow citizens<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote>
Thanx for the comments pervez, and obviously it will not be my lasting posting if there is any continued discussion,
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote>My dear just becuase an auditor has qualified a report does not suggest that any illegal activity has taken place. The very fact that the auditor deemed it fit to remain associated with the co and issue an audit report(although qualified) suggests that auditor is atleast not aware of any illegal activity. If he was aware of an illegal activity, he should immediate withdraw from the assignment and if deemed appropriate should notify relevant authories (including SECP).
So think hard and tell me how SECP can take an action on the basis of a qualified audit report. Are you telling me that a qualified audit report suggests that an illegal activity has taken place in the co? I certainly hope not. Becuause that will betray an utter lack of knowledge about qualifying an audit report.<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote>
Dear Pervez, will u define this "illegal activity" ? i hope u dont mean that illegal activitiy means the smuggling of heroin, trading of without licence arms and ammuninition, etc. etc. etc.
the violation of any law is supposed to be the illegal activity,
as far as i know, the auditor has to give an opinion on the true and fair view of the financial statements and some other matters as mentioned in the auditor's report, if he find any significant material item that will effect the truth and fairness of financial statements, he must report that matter in his report, (if i m not correct please correct me),
if an auditor qualifies the report, it means there was something material which effects the fairness of financial statements, or the management has utilized the funds of the shareholders of the company for some other purposes (not for business purpose) etc. etc. etc.
can you tell me please if the auditor was aware of all these situations, and he does not qualify his report, will he be charged for professional misconduct,
and if the matter comes to the knowledge of SECP he will call that auditor in the court, (this is what SECP is doing nowadays),
so think about it carefully, that, it was the matter of level, which brought the auditors into the court, and now if auditor has qualified his report, then what will be the effect of that qualification,
if no action is being taken against the company, then it will just simply means that the "purpose of qualification for the auditor is just to keep himself safe from SECP and regulatory authorities",<img src=icon_smile.gif border=0 align=middle>
lets take an example, if auditors qualify his report that "proper books of accounts have not been maintained by the company"
as the companies are required by law to maintain proper books of accounts, but if it didnt do so, then it has committed an illegal activity, bcaz violation of law is supposed to be an illegal activity.
and my dear, can u quote me any audit report in which auditors have qualified their report on the matter which was permitted by the law, and other accounting pronouncements,
the auditor will qualify his report when the company has done something against law, it has not followed the law or relevant accounting standards, so dear if any company doesnt follow the rules and regulations which it is required to do, it is supposed be an illegal activity,
Regards
S M R
Edited by - smraza on Sep 09 2003 120633 PM
Thanx for the comments pervez, and obviously it will not be my lasting posting if there is any continued discussion,
<BLOCKQUOTE id=quote><font size=1 face="Verdana" id=quote>quote<hr height=1 noshade id=quote>My dear just becuase an auditor has qualified a report does not suggest that any illegal activity has taken place. The very fact that the auditor deemed it fit to remain associated with the co and issue an audit report(although qualified) suggests that auditor is atleast not aware of any illegal activity. If he was aware of an illegal activity, he should immediate withdraw from the assignment and if deemed appropriate should notify relevant authories (including SECP).
So think hard and tell me how SECP can take an action on the basis of a qualified audit report. Are you telling me that a qualified audit report suggests that an illegal activity has taken place in the co? I certainly hope not. Becuause that will betray an utter lack of knowledge about qualifying an audit report.<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana" size=2 id=quote>
Dear Pervez, will u define this "illegal activity" ? i hope u dont mean that illegal activitiy means the smuggling of heroin, trading of without licence arms and ammuninition, etc. etc. etc.
the violation of any law is supposed to be the illegal activity,
as far as i know, the auditor has to give an opinion on the true and fair view of the financial statements and some other matters as mentioned in the auditor's report, if he find any significant material item that will effect the truth and fairness of financial statements, he must report that matter in his report, (if i m not correct please correct me),
if an auditor qualifies the report, it means there was something material which effects the fairness of financial statements, or the management has utilized the funds of the shareholders of the company for some other purposes (not for business purpose) etc. etc. etc.
can you tell me please if the auditor was aware of all these situations, and he does not qualify his report, will he be charged for professional misconduct,
and if the matter comes to the knowledge of SECP he will call that auditor in the court, (this is what SECP is doing nowadays),
so think about it carefully, that, it was the matter of level, which brought the auditors into the court, and now if auditor has qualified his report, then what will be the effect of that qualification,
if no action is being taken against the company, then it will just simply means that the "purpose of qualification for the auditor is just to keep himself safe from SECP and regulatory authorities",<img src=icon_smile.gif border=0 align=middle>
lets take an example, if auditors qualify his report that "proper books of accounts have not been maintained by the company"
as the companies are required by law to maintain proper books of accounts, but if it didnt do so, then it has committed an illegal activity, bcaz violation of law is supposed to be an illegal activity.
and my dear, can u quote me any audit report in which auditors have qualified their report on the matter which was permitted by the law, and other accounting pronouncements,
the auditor will qualify his report when the company has done something against law, it has not followed the law or relevant accounting standards, so dear if any company doesnt follow the rules and regulations which it is required to do, it is supposed be an illegal activity,
Regards
S M R
Edited by - smraza on Sep 09 2003 120633 PM