07-17-2003, 08:35 PM
Hi Perverz and SMR
Pervez, i think that SMR was talking about this news item which i saw a few days back on this site.
http://http//www.accountancy.com.pk/news...newsid=329
Yes, the auditors have a fiduciary as well as a moral duty towards the shareholders and i believe that both SECP and SBP should have even more stringent policies towards the auditors to prevent an enron/worldcom style situation.
At the same time i would like the SECP to have a more effective system of monitoring for the companies on which it governs. In my opinion, an audit of financial statements becomes a complete farce when there is nobody to take any punitive action on the financial wrongdoings by a company's management. SECP should develop a grading system based on auditor's reports and the severity of the qualifiation. This requires a regular monitoring of the issued reports by SECP. It could be started first with listed companies and then spread to all companies registered under Companies Ordinance.
If i am not mistaken, there is some sort of similar mechanism being followed in the case of banks by SBP. Can somebody confirm this?
________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!
Pervez, i think that SMR was talking about this news item which i saw a few days back on this site.
http://http//www.accountancy.com.pk/news...newsid=329
Yes, the auditors have a fiduciary as well as a moral duty towards the shareholders and i believe that both SECP and SBP should have even more stringent policies towards the auditors to prevent an enron/worldcom style situation.
At the same time i would like the SECP to have a more effective system of monitoring for the companies on which it governs. In my opinion, an audit of financial statements becomes a complete farce when there is nobody to take any punitive action on the financial wrongdoings by a company's management. SECP should develop a grading system based on auditor's reports and the severity of the qualifiation. This requires a regular monitoring of the issued reports by SECP. It could be started first with listed companies and then spread to all companies registered under Companies Ordinance.
If i am not mistaken, there is some sort of similar mechanism being followed in the case of banks by SBP. Can somebody confirm this?
________________________
Arrrgh... it sure's gonna be mighty rough sailin' today ... mates!