All
Banks/DFIs
All
Firms on SBP Panel of Auditors Dear
Sirs/Madam,
Panel
Of Auditors Under Section 35
Of Banking Companies Ordinance, 1962
Please refer to BSD Circular No.6 dated the 31st January 2001
under cover of which a panel of auditors maintained under
Section 35 of the BCO, 1962 was circulated and subsequent
changes/amendments were carried out in the panel from time
to time. The following consolidated/revised instructions on
the subject are hereby issued:
2)
The existing panel (attached as
Annexure ‘A’) shall remain operative as under: -
a)
Auditing Firms in Category ‘A’ are eligible to conduct
audit of all Banks/DFIs.
b)
Auditing Firms in Category ‘B’ are eligible to conduct
audit of the Banks/DFIs having total assets (net of contra
items) up to Rs.50 billion or number of branches up to 99.
c)
Auditing Firms in Category ‘C’ are eligible to conduct
audit of the Banks/DFIs having total assets (net of contra
items) below Rs.5 billion or number of branches below 10.
3)
Banks/DFIs shall appoint auditors from the Panel of
Auditors of State Bank of
Pakistan.
4)
The panel will be reviewed continuously to accommodate
new applicant firms and
to
upgrade/downgrade the firms on the basis of emerging evidences.
5)
The existing Application Form is revised and the applicant
firms desirous of being
enlisted
or upgraded on the panel shall apply on the new form placed
at
Annexure
‘B’.
6)
The State Bank may also downgrade the category of any
firm or remove it from
the
panel in the following cases: -
i.
If material misstatement of facts and figures is observed
in the statements or reports submitted to the State Bank
duly certified by the auditing firm, which will materially
alter the assessment of financial position of banks/DFIs
in an adverse manner.
ii.
If the information, facts and figures submitted to
SBP in application form for the purpose of enlistment/up
gradation on SBP Panel of Auditors, is found incorrect or
not in harmony with the information supplied to the Institute
of Chartered Accountants of Pakistan.
iii.
Failure of the auditing firm in securing a satisfactory
Quality Control Review (QCR), after every two years from
the Institute of Chartered Accountants of Pakistan. In order
to ensure compliance with this requirement, the enlisted
auditing firms will be required to invariably submit a copy
of their requisite QCR to the State Bank within two weeks
of its receipt from ICAP at the expiry of the term of previous
QCR failing which their category may be downgraded or they
may be delisted by the State Bank.
iv. If any change in the nomenclature of the firm or in its partners or
a reduction of more than 25% in its staff, declared to SBP,
is not communicated to SBP within two weeks of the occurrence
of change.
v.
If any information sought by SBP, whatsoever, about
the firm is not supplied to the State Bank of Pakistan within
the stipulated time.
The
above instructions shall supercede all earlier directives
issued from time to time on the subject.
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