Mandatory Rotation of Auditors Challenged by AFF

[smraza]

AF Fergusons has challenged the powers of SECP to issue such kind of directives, saying that SECP has no power to issue such directives u/s 34(4) of SEC ord.
what do u think guys, AFF is going to win this case or not ???

SMR

[jbladeus]

Ofcourse it is going to win SMR, 'cos AFF wouldnt have taken it to court if it had the slightest chance of failure. In my opinion, these power players of the industry dont do anything unless they are sure of success.

And since there are some ppl in SECP who are "paaltu kuttey" of AFF, and who would support AFF's case from within SECP, so i guess there is no point of discussion left.

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!

[Bowman]

hmmnnnnn <img src=icon_smile_dead.gif border=0 align=middle>

[Ubaidullah Shareef]

I DO AGREE WITH THE PAL THAT AFF IS GOING TO WIN THE CASE.

US

[massood akhter]

let us see how the cat jumps.?

massood ar.

[Sarfaraz]

let see .........................

There is a will there is a way.

[smraza]

<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>
Ofcourse it is going to win SMR, 'cos AFF wouldnt have taken it to court if it had the slightest chance of failure. In my opinion, these power players of the industry dont do anything unless they are sure of success.

And since there are some ppl in SECP who are "paaltu kuttey" of AFF, and who would support AFF's case from within SECP, so i guess there is no point of discussion left.

________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
110% agreed guybrush, internal news say the same as u said. AFF would never have filed the suit against SECP if they didnt have the Asherwaad of SECP's ppl.

SMR

[k.kamran]

i dont think this was a good move. the rotation of auditors was a good step by secp to bring transperancy in the feild of audit . why be afraid of loosing client. give other a chance too. However the sindh high court has already given the vrdict in favour of AFF by suspending the secp decison . but to me it is a bad and self intrested move .

kashif

[adeelahmad]

<b></b><i></i><font color=orange></font id=orange><font size=6></font id=size6>me not sure about winnng th case by AFF and either by SECP.<img src=icon_smile_question.gif border=0 align=middle>

lets make the things better.

[XBRL]

Consider audit of PTCL, bank of punjab, packages, nestle tetra pak volvo, faysl bank mcb and many other big giants. aff has total staff of more than 1000 ppl and rotation can only benefit the other big 2's and not the small or mediums.........so what to talk abt transparency in the field of audit (re mr kamran's view)

Plus onething more ,, as per paki business environment we all are getting over regulated. i will prove in detail how....ICAP president has...plus ICAP itself and not only AFF has challenged and the new news are SEC is making a commitee on this issue to review in depth for this issue

Plus for few ppl's i request not to use words like""paaltu kuttay"" or ""Asherwaad of SECP"". I dont feel these words predict ur attitude, personality and ethics....


best regards and post coments

[thecharteredaccountant]

yeah i think so too, it's only logical, such a powerful firm as AFF would not have filed a suit at all if they had the fear of losing at all. and i hope they win. this rotation order, if seriously implemented in the long run would change the entire audit scenario leaving behind the race for quality and client relationships and understaning etc.

[Sarfaraz]

AOA
anyone having knowledge on its decision?

There is a will there is a way.

[smraza]

Following is the decision of SHC,
The Sindh High Court (SHC) has suspended the directives of the Securities and Exchange Commission of Pakistan (SECP) with regard to the rotation of the external auditors of all listed companies every 5 years. Mr Justice Musheer Alam passed the order in a suit filed by A.F. Ferguson, Chartered Accountants, challenging the legality of the order of SECP through its lawyer Zahid F Ibrahim. The petitioner has contended that the SECP has no power to issue the said directive under section 34(4) of SEC ordinance and that the SECP transgressed the authority conferred by law. Moreover, it is contended in the petition that the SECP directive is in violation of the right of shareholders to select auditors of their choice under the company’s ordinance, 1984. The SHC ordered "A prima facie case for suspension of the impugned directive dated 28.3.02 has been made out. Accordingly, operation of the impugned directive is suspended till next date".



SMR

[sumaaan]

lol... No wonder money has power !!

[smraza]

Although the SHC has suspended the directives of SECP till the next hearing date, and the case is likely to be decided in favour of AFF.

SMR