Islamabad: The Audit Oversight Board (AOB) has asked all auditors and public interest companies that only the auditors registered with AOB can audit the financial statements of public interest companies.
The AOB is an independent regulator established by the Parliament in 2016 in line with international practices. The objective of AOB is to enhance the quality of audit of financial statements in public interest.
The AOB has now registered audit firms that have satisfactory quality control review (QCR) rating. The AOB registers audit firms based on the recommendation of the Quality Assurance Board established by the Institute of Chartered Accountants of Pakistan (ICAP). This list of audit firms is available on the website of AOB and it will be updated on an ongoing basis.
The definition of a public interest company covers a wide range of entities including listed companies, public sector companies, banks, insurance companies, mutual funds, securities brokers and utilities. Starting from 23 April 2018, AOB inspectors are beginning their fieldwork in Lahore and Karachi for a thorough review of ICAP’s QCR framework.
Audit Oversight Board (AOB) was established under part IXC of the Securities and Exchange Commission of Pakistan Act, 1997 in August 2016 to regulate the audit profession in Pakistan. Establishment of AOB marked an important milestone in the development of an effective and robust audit oversight framework in Pakistan. AOB will help in regulating auditors of public interest companies (PICs) to promote investors’ protection as well as confidence in the quality and reliability of audited financial statements of PICs. This development is in line with the efforts in other jurisdictions globally to enhance audit quality and reliability of financial statements which is a key source of information to investors and other stakeholders.