RECORDER REPORT

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed all public companies to recommend names of chartered accountants or cost and management accountants which hold satisfactory rating under quality control review program of the Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan respectively, for appointment of cost auditors.

According to a circular issued by the SECP Thursday, in continuation to earlier circular of the Commission, Circular 17 of 2014 dated August 07, 2014, all public companies are directed to recommend names of Chartered Accountant within the meaning of Chartered Accountants Ordinance 1961 (X of 1961) or Cost and Management Accountant within the meaning of the Cost and Management Accountants Act, 1966 (XIV of 1966) which hold satisfactory rating under Quality Control Review Program of the Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountants of Pakistan respectively, for purpose of appointment of cost auditor under Section 258 of the Companies Ordinance, 1984 read with Rule 3 of the Companies (Audit of Cost Accounts) Rules 1998.

All public companies shall ensure compliance with the requirements of this circular for the financial year ending June 30, 2016, the SECP added.