Auditors of corporate sector: SECP revises reporting requirements/forms

Securities and Exchange Commission of Pakistan (SECP) has revised reporting requirements/forms for auditors of the corporate sector including revised auditor''s report on consolidated financial statements, auditor''s review report on second quarterly financial statements/statements of compliance with corporate governance regulations. The SECP has issued Auditors (Reporting Obligations) Regulations, 2018 through an SRO 558 (I)/2018. The SECP has repealed Rule 17A, Rule 17B and Rule 17C of the Companies (General Provisions and Forms) Rules, 1985.
According to the SECP regulations, the new regulations would be applicable for reporting periods ending on or after June 30, 2018. The auditor of a company other than a banking company shall make out a report to the members of the company on its financial statements as required under section 249 of the Act, on the format as provided in Annexure-I of SRO.558.
The auditor of a banking company shall make out a report to its members on the financial statements as required under section 249 of the Act, on the format as provided in Annexure-II of SRO 558 (I)/2018.
The auditor of an insurer registered under the Insurance Ordinance, 2000 shall, for the purposes of regulation 8 and regulation 23 of the Insurance Accounting Regulations, 2017, make out a report to the Board of Directors on regulatory returns as well as to the members on the financial statements as required under section 48 of the Insurance Ordinance, 2000 and section 249 of the Act on the formats provided in Annexure-III, as applicable.
The SECP said that the auditor of a holding company meeting criteria shall make out a report on the consolidated financial statements as required. The auditor of a listed company shall make out a limited scope review report to the members on the second quarterly financial statements, SECP said. The auditor of a company shall make out review report, where applicable, to the members on the statement of compliance with corporate governance regulations on the formats as follows; in case of a listed company, the review report on statement of compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2017 shall be on the format as provided in Annexure-VI; and in case of a public sector company, the review report on statement of compliance with Public Sector Companies (Corporate Governance) Rules, 2013 shall be on the format as issued under Public Sector Companies (Corporate Governance Compliance) Guidelines, 2018 read with Rule 24 of Public Sector Companies (Corporate Governance) Rules, 2013, SECP added.