Panel of C.A. Firms

By

GCA Team

In Pakistan, following C.A. panel of auditors

issued by different regulatory bodies.

State Bank of Pakistan

SECP – Insurance Sector

SECP – Mutual Fund Sector

Pakistan Stock Exchange

USAID

Audit Oversight Board

State Bank of Pakistan

State Bank of Pakistan’s Panel of Auditors maintained Under

Section 35 (1) of Banking Companies Ordinance, 1962.

This is not a category of firms.

Section: 35 (1) The balance sheet and profit and loss account prepared in accordance with section 34 shall be audited by a person who is duly qualified, under the Chartered Accountants Ordinance, 1961 (X of 1961), or any other law for the time being in force, to be an auditor of companies and is borne on the panel of auditors maintained by the State Bank for the purposes of audit of banking companies.

The State Bank shall classify the panel of auditors, so maintained, in different categories for different banking companies keeping in view the scope and size of such banking companies.

State Bank of Pakistan’s Circular

for Panel of Auditors

The existing panel shall remain operative as under: -

a) Auditing Firms in Category ‘A’ are eligible to conduct audit of all Banks/DFIs.b) Auditing Firms in Category ‘B’ are eligible to conduct audit of the Banks/DFIs having total assets (net of contra items) up to Rs.50 billion or number of branches up to 99.c) Auditing Firms in Category ‘C’ are eligible to conduct audit of the Banks/DFIs having total assets (net of contra items) below Rs.5 billion or number of branches below 10.

The State Bank may also downgrade the category of any firm or remove it from the panel in the

following cases: -

i. If material misstatement of facts and figures is observed in the

statements or reports submitted to the State Bank duly certified by

the auditing firm, which will materially alter the assessment of financial position of banks/DFIs in

an adverse manner.

ii. If the information, facts and figures submitted to SBP in application form for the purpose of enlistment/up gradation on SBP Panel of Auditors, is found incorrect or not in harmony with the information supplied to the Institute of Chartered Accountants of Pakistan.

iii. Failure of the auditing firm in securing a satisfactory Quality Control Review (QCR), after every two years from the Institute of Chartered Accountants of Pakistan. In order to ensure compliance with this requirement, the enlisted auditing firms will be required to invariably submit a copy of their requisite QCR to the State Bank within two weeks of its receipt from ICAP at the expiry of the term of previous QCR failing which their category may be downgraded or they may be delisted by the State Bank.

iv. If any change in the nomenclature of the firm or in its partners or a reduction of more than 25% in its staff, declared to SBP, is not communicated to SBP within two weeks of the occurrence of change.

v. If any information sought by SBP, whatsoever, about the firm is not supplied to the State Bank of Pakistan within the stipulated time.

This circular lists down criteria for CA Firms to be on Panel of SBP Auditors.

Please note that any C.A. firm whose name was not mentioned in SBP Panel of

Auditors are still C.A. Firms within the meaning

of ICAP regulations.

Please note that to determine the current status of following C.A. firms, check the latest SBP Panel of Auditors

available at SBP website.

S. M. Masood & Co., Chartered Accountants was once delisted from SBP Panel of Auditors but S. M. Masood & Co., Chartered Accountants is a C.A. Firm based in Lahore during such delisted period.

This is the firm from where many qualified CAs become ICAP National Council members.

If S. M. Masood & Co., Chartered Accountants is not a CA firm after its delisting from SBP Panel of Auditors, ICAP should delist from their QCR list and revoke their license to practice. But this is not the case.

S. M. Masood & Co., Chartered Accountants is still a C.A. Firm and no one can deny the fact.

If students consider SBP Panel of Auditors, one

wonder why students not consider other Panel of Auditors maintained by other regulatory bodies.

Question is that how this misconception started that result in making SBP Panel of Auditors treated as categories of firms.

Since the people of our beloved Pakistan believe in follow the suit, no one ever wonder and try to break this misconception.

First time, this SBP Panel of Auditors reported to be used by Ministry of Interior, Islamabad for hiring the services of CAs. They use the word category and the there is no stop to this wrong idea.

Since then, this wrong misconception is prevalent in our mind and affecting various stakeholders in various ways.

The irony is that even the qualified CAs use this category as a criteria for various purposes.

SECP •Insurance Sector•Mutual Fund

Pakistan Stock Exchange

https://www.psx.com.pk/psx/themes/psx/uploads/Panel-of-Auditors-System-

Audit_16-July-2019.pdf

https://www.psx.com.pk/psx/themes/psx/uploads/Panel-of-Auditors-System-Audit_16-July-2019.pdf

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Section: 35 (1) Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38Slide Number 39Slide Number 40Slide Number 41Slide Number 42Slide Number 43Slide Number 44Slide Number 45Slide Number 46Slide Number 47