08-01-2003, 10:21 AM
Hi Friends!
I fundamentally agree with Ehrar's point of view that we should have some form of CCG for pvt companies. But the hurdle is lack of resources. I don't know if any of us know what SECP annual budget is? SECP has a big mandate but is very poorly funded. As far as I know, even CCG project was funded by a foreign institute. The major object of SECP at the moment is to make our financial markets more efficient. This is essential if we want to attract foreign investments direct or indirect.
Most of the pvt companies are family owned, and if they have minority shareholders, these are family friends, who have made the investment on the basis of trust in majority shareholders. As far as misreporting is concerned, the only incentive is tax evasion. Now for that we have plenty of laws on the books. There is a whole regime of tax laws enforcers. If they fail in their roles that is a seperate problem.
As far as somebody not being involved in the tax assessment, does not reflect anything on his/her qualification as accountant. Tax assessment in Pakistan is an art seperate from accounting or finance. That process is total "vodoo accounting". You don't have to know even the definition of current asset to be sucessful in it.
I think a very good place this CCG project can start is ICMAP. They will have a support of many management accountants and it can be made a part of management audit of small firms. Management accountants can perform this audit and issue a report. Ehrar can even take it up with CMA council! Anything to get more work for our fellow accountants!!!
Thnks
Edited by - Pervez on Aug 01 2003 052642 AM
Edited by - Pervez on Aug 01 2003 053452 AM
I fundamentally agree with Ehrar's point of view that we should have some form of CCG for pvt companies. But the hurdle is lack of resources. I don't know if any of us know what SECP annual budget is? SECP has a big mandate but is very poorly funded. As far as I know, even CCG project was funded by a foreign institute. The major object of SECP at the moment is to make our financial markets more efficient. This is essential if we want to attract foreign investments direct or indirect.
Most of the pvt companies are family owned, and if they have minority shareholders, these are family friends, who have made the investment on the basis of trust in majority shareholders. As far as misreporting is concerned, the only incentive is tax evasion. Now for that we have plenty of laws on the books. There is a whole regime of tax laws enforcers. If they fail in their roles that is a seperate problem.
As far as somebody not being involved in the tax assessment, does not reflect anything on his/her qualification as accountant. Tax assessment in Pakistan is an art seperate from accounting or finance. That process is total "vodoo accounting". You don't have to know even the definition of current asset to be sucessful in it.
I think a very good place this CCG project can start is ICMAP. They will have a support of many management accountants and it can be made a part of management audit of small firms. Management accountants can perform this audit and issue a report. Ehrar can even take it up with CMA council! Anything to get more work for our fellow accountants!!!
Thnks
Edited by - Pervez on Aug 01 2003 052642 AM
Edited by - Pervez on Aug 01 2003 053452 AM
