08-16-2003, 08:51 AM
It is the regulatory duty of ICAP to ensure that its licensed auditors comply with auditing guidelines. Yet if SECP has to to take the role of desciplining the auditors, i wonder what is the role of ICAP then. However, in theory, SECP can ask the government for a legal amendment to compel ICAP to police the licensed auditors in a more proactive manner.
It is difficult to fine companies for wrongdoings. Instead the directors of the companies should be accountable for any qualification in auditors report.
on the third point of reading a qualified audit report re investments.... I believe it is inappropriate to conclude that funds were embazzeled, when the auditors have expressely stated that they were unable to form an opinion. It could be just a case of inadequate documentation, we should not always put on the hat of investigative readers, but should try to assess the situation with reference to other matters in the financial statements and other qualifications.
Lstly, if the auditors report has 3 or more qualifictions, should the auditors not disclaim their liability as a whole as so many qualifications might lead to the inability of auditor to form an opinion.
It is difficult to fine companies for wrongdoings. Instead the directors of the companies should be accountable for any qualification in auditors report.
on the third point of reading a qualified audit report re investments.... I believe it is inappropriate to conclude that funds were embazzeled, when the auditors have expressely stated that they were unable to form an opinion. It could be just a case of inadequate documentation, we should not always put on the hat of investigative readers, but should try to assess the situation with reference to other matters in the financial statements and other qualifications.
Lstly, if the auditors report has 3 or more qualifictions, should the auditors not disclaim their liability as a whole as so many qualifications might lead to the inability of auditor to form an opinion.