Circulars/Notifications - Circulars/Notifications    

 BSD Circular No.03
February 24, 2003 


 

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.


Yours faithfully,
(Jameel Ahmad)
Director

Encl: As Above  Annexure-A , Annexure-B

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