AOB issues warning to audit firm

KARACHI: The Audit Oversight Board (AOB) has issued a warning to an audit firm for failing to disclose complete list of engagements during its audit quality rating, a statement said on Thursday.

AOB has taken action against Amin, Mudassir & Co after providing an opportunity to the firm to explain its position in writing, as well as an opportunity of being heard, it added. The board has also directed the firm to submit an action plan made up of substantive measures to ensure that the same mistake is not repeated.

AOB conducted an independent inspection of the work carried out to assign a satisfactory audit quality rating to the firm, it said, adding that upon scrutiny of the list of audit engagements submitted by the firm, it was found out the firm failed to disclose five audit engagements.

An audit engagement not disclosed by a firm cannot possibly be reviewed during the quality control process; therefore, by manipulating the disclosure of audit engagements, a firm can manipulate its audit quality rating, it added.