Clarification

The Audit Oversight Board of the Securities and Exchange Commission of Pakistan has issued a clarification in reference to The News article titled “Government disallows KPMG from auditing public interest companies” published on June 8, 2021.

Is it hereby clarified that the Audit Oversight Board has reprimanded the firm M/s KPMG Taseer Hadi & Co Chartered Accountants and imposed a penalty of Rs3.5 million on the firm due to its violation of applicable auditing standards in the matter of audit of the financial statements of JDW Sugar Mills Ltd.

Furthermore, the engagement partner responsible for the audit has been barred from conducting audit of Public Interest Companies for one year and is required to complete 100 training hours before he may be allowed to conduct such audits again.

Meanwhile, KPMG said, “We strongly rebut this news item and wish to clarify that AOB in its order June 4, 2021 has restricted one audit partner of the Firm to carry out audits of PIC for a period of one year.”