SECP acts against dishonest auditors ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has initiated 22 show-cause proceedings against the erring management and companies’ auditors during the month of September.
These violations include failure to comply with legal provisions with respect to filing of interim accounts for listed companies, delay in deposit of provident fund amount, deficient discharge of duties by auditors, incorrect or false statement given in the accounts etc.
The SECP has said that the Corporate Supervision Department decided to adopt direct and targeted approach to identify the non-compliances by the companies that led to the infringing of the rights of the shareholders.
During September the department appointed inspectors to inspect all the records and books of accounts of one company and advised the inspectors to furnish report on material and unusual transactions, non-compliances and any evasions relating to the affairs of the company.
The department has strengthened its focus on the quality of audits wherein one proceeding against auditor of a company was initiated for not discharging the duties in line with applicable provisions and failure to bring out material facts about affairs of companies.