Destruction of our Financial Sector is a direct result of "Bad Loans". Were all such Balance Sheets which carried huge financial black-holes in them, were audited & reported quite properly???? Why shouldn't there be an "Accounting Oversight Baord" in Pakistan also??
Who do you suggest such a body should be headed by? In USA, they initially made a former head of FBI (or was it CIA?) its chief.
I don't think that an Accounting Oversight Board can be feasible for Pakistan because even if it is formed, the ppl heading it over here would themselves either be part of the accounting community, the coporate heads, the army, or the judiciary. Sadly to say, they all have their vested interests to look for and could never be truly independent.
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Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!
Perhaps you're right but more important would be the "members" of the Baord. May be nominees from various regulators like SECP, SBP, Stock Exchanges, HEC, ICMAP and ICAP can be members who can elect Head of the Board. So far as vested interests are concerned... those are everywhere in the world and can not be controlled all the way. Majority is never corrupt or in the wrong so I think it can be done. Above all, it must be done....
Further, please see following proposed section regarding "registration" of audit firms with PCAOB, USA.
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Section 102 of the Sarbanes-Oxley Act of 2002 (the âActâ) prohibits accounting firms that are not registered with the Board from preparing or issuing audit reports on U.S. public companies (i.e., âissuersâ, as defined in the Act) and from participating in such audits. Section 106(a) of the Act provides that any non-U.S. public accounting firm that prepares or furnishes an audit report with respect to any U.S. public company is subject to the Boardâs rules to the same extent as a U.S. public accounting firm. Section 106(a) further authorizes the Board to require that non-U.S. public accounting firms that do not issue such reports, but that play a substantial role in the preparation of the audit reports, register.
The Act provides that firms must register with the Board if they wish to engage in these activities after the 180-day period following the Commissionâs determination that the Board has the capacity to carry out the requirements of the Act. That determination must be made no later than April 26, 2003.
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Though Pakistani audit firms may not directly be involved but what about those firms who are involved in audit of Pakistani segments of USA companies? Is ICAP framing any policy or guidelinefor this or it simply is none of our concerns!!!