 |
|
For business information, annual reports, laws, ordinances, regulations and articles. |
|
|
030123
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN, ISLAMABAD
Circular No. 1
Reference No. SC/DA/Aud/2003/
January 23 , 2003
APPOINTMENT OF SOLE PROPRIETOR CHARTERED ACCOUNTANTS AS AUDITORS BY BUSINESS NAME.
Whereas it has come to the attention of
Securities and Exchange Commission of Pakistan (“SEC”) that sole proprietor
chartered accountants are being appointed as auditors under their respective
business names by certain companies pursuant to section 252 of the Companies
Ordinance, 1984 (“Ordinance”). Moreover, such sole proprietors are using the
words “Chartered Accountants” instead of “Chartered Accountant” with their
business name.
2. In view of Sub-Section (2) of Section 254 of the Ordinance, which
provides that auditors can be appointed by their business name if they are
practicing as a firm of chartered accountants, the SEC therefore considers it
expedient to clarify that sole proprietor chartered accountants cannot be
appointed as auditors by their business names, and shall be appointed in their
personal names only.
3. Further, it is hereby directed that a sole proprietor shall not use
the words “Chartered Accountants” with his business name in any correspondence
or report that relates to the audit of a company, and shall instead use the
designation “Chartered Accountant” with his name. Only firms of practicing
chartered accountants can use the words “Chartered Accountants” as this
expression suggests that the firm consists of more than one member of the
Institute of Chartered Accountants of Pakistan.
4. All companies and their auditors are directed to ensure immediate
compliance with this Circular, with the exception that para 2 above shall apply
to appointments of auditors made subsequent to the issuance of this Circular.
(Jaweria Ather)
Director (Accounting)
