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Auditor’s Reporting on Bank’s Internal Controls – Deferred for a Year

At the recommendation of the Institute, the State Bank of Pakistan has deferred the attestation requirement of SBP’s Guidelines on Internal Controls for one year that will now be applicable from the year ending December 31, 2005.

On May 27, 2004, SBP issued its Guidelines on Internal Controls via BSD Circular No.7 of 2004, Paragraph 7(c) of which requires “Statutory auditors’ attestation to, and report on, Board’s endorsement regarding efficacy of company’s internal controls, which are relevant to the financial reporting only.”

However, as the banks required sufficient time to fully implement/comply with the afore-said guidelines, it was not practical for the statutory auditors to attest and report on the same for the year ended on December 31, 2004.

ICAP being cognizant of this fast approaching issue, put up the matter in its coordination meeting with the SBP as a result of which, a circular letter has been issued to clarify the situation.

To read a copy of the relevant SBP letter to ICAP and its BSD Circular Letter No. 3, click on the links below:

– SBP letter to ICAP (PDF Format)
– BSD Circular Letter No. 3

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