SECP Adopts Risk-Based Approach for Auditors’ Appointment
The Securities and Exchange Commission of Pakistan (SECP) has recently announced that it will be taking a risk-based approach to the appointment of auditors for its regulated entities, including securities brokers and insurance/modaraba sectors. This means that entities with higher risk will be required to appoint their auditors from suitable categories, while entities with low risk may appoint any auditor with a QCR rating from ICAP.
The SECP has also issued a comparison of the current practice of selecting audit firms under applicable regulatory framework along with proposed categories of audit firms under a new SECP panel. This panel will be notified after necessary changes in the regulatory framework have been finalized.
The SECP’s decision to adopt a risk-based approach for the appointment of auditors is a welcome move. It will help ensure that the auditors appointed by the SECP-regulated entities are qualified and competent to carry out their duties. This will also help to ensure that the financial statements of the entities are accurate and reliable.
Overall, the SECP’s decision to adopt a risk-based approach for the appointment of auditors is a positive step towards ensuring the integrity of the financial statements of the SECP-regulated entities.
Esta es una gran iniciativa por parte de la SECP para garantizar la precisión y fiabilidad de los estados financieros. La analítica de datos es increíblemente valiosa, así que es importante que las empresas tengan auditores calificados y competentes. ¡Espero ver los resultados de esta nueva aproximación!
This is a great move by the SECP to ensure the accuracy and reliability of financial statements. It’s so important for companies to have qualified and competent auditors, especially in times like these when data analytics is so valuable.