Forensic audit of banks, telecom companies to be carried out

The Federal Board of Revenue (FBR) and consultant firms would jointly conduct forensic audit of eight banks and six telecom companies, including five cellular operators in Pakistan. Sources told Business Recorder here on Tuesday that the decision was taken in the last meeting of the Tax Reform Commission Implementation Committee (TRIC) held at the Federal Board of Revenue (FBR). In this regard, eight banks and six telecom companies have been selected for forensic audit.
According to details, in the last meeting of the TRIC a sub-committee headed by FBR Member Taxpayer Audit (TPA) was tasked with identifying two sectors for purpose of forensic audit and determining the requirements in this respect. The Member (TPA) apprised the committee that 5 taxpayers from the telecom companies and 34 taxpayers from the banking sector are available for purpose of conducting forensic audit with special emphasis on withholding.
Chairman Tax Reform Commission (TRC) Masoud Naqvi suggested that FBR officials should be closely associated with the forensic auditors. He also offered that KPMG could conduct forensic audit training for select FBR officers pro bono. The offer was greatly appreciated and accepted.
Later, the TRIC decided that the forensic audit of six taxpayers from the telecom sector be undertaken. In addition, forensic audit of eight taxpayers from the banking sector to be conducted by teams each comprising two forensic audit consultant firms and two or more officers of Inland Revenue. The TORs for conducting forensic audit of banks would be developed by the TRIC members and would be shared with the FBR Member (TPA). The TORs for conducting forensic audit of telecom companies to be provided by the Member (TPA) after consultation with provincial authorities, sources said. Sector specific advertisements for the telecom and banking sector requisitioning the services of forensic audit consultants and delineating the respective TORs would also be issued for the telecom and banking sectors, sources added.