Please refer to BSD circular No.05 dated February 24, 2009 on the captioned subject.

2) It has been decided that Statutory Auditor(s) of Banks / DFIs, instead of expressing opinion in annual financial statements on efficacy of Internal Control over Financial Reporting (ICFR) as required under the guidelines, amended from time to time, can now submit their opinion on ICFR directly to this department and copy to Institute of Chartered Accountants of Pakistan (ICAP). This requirement is for the year ending 31-12-2009. However, from the year ending 31-12-2010, Statutory Auditor(s) of Banks/ DFIs shall express their opinion on ICFR in the annual financial statements as required under the guidelines.

3) In this regard, Banks / DFI’s and their Statutory Auditor(s) are once again advised to make concerted efforts and gear up their activities to comply with the requirement(s) of the guidelines.

All other instructions on the subject shall, however, remain unchanged.

Please acknowledge receipt.