ATR - 14 of ICAP

[Star]

Respected members and students of ICAP,

Can anyone update me about the ISSUE of ATR-14 issued by ICAP for the minimu audit fee of the companies. You would surely remember the objection of CCP on the matter.......

Is ATR-14 still applicable?

Regards,


*

[kamranACA]

Star

SC has given intervention (stay) order on CCP's decision.

ATR-14 is still applicable on ICAP's members in practice as well as in industry. Non-compliance is a professional misconduct.

Final decision will be of SC.

However, if SC is not giving its verdict in a short time, in two years (one has gone) all companies will have to enhance their auditors' fee to be compliant of ATR-14. All companies have already increased the fee to 75% of the required amount as per transitional provisions. (If this is not done by clients, no auditor will continue with the audit since it is professional misonduct for all audit firms to do so.) In such a situation, if SC's decision is not received and if fees are enhanced in two years, who will reduce the fees afterwards even if SC gives some contrary decision.

There are also some other pronouncements for reduction of audit fee. Specially in the cases of rotation of auditors, the new one will never be in a position to reduce the fee since it would fall in undercutting.

So, the issue is very critical and we hope SC will pass some very clear and in-time decision to remove the ambiguities. Delay in decision will be nothing but delay in justice (whatever it is).

Regards



KAMRAN.

[Star]

Dear all,

Thank for updating me. I understand that if the matter is pending before Supreme Court, then ICAP can not invoke the non-compliance of ATR-14 on the practicing members.

Regards,

*

[kamranACA]

Star

You may carry your opinion to the contrary (that is also respectable) but unfortunately, as per meanings drived by ICAP so far, your understanding that "ICAP cannot invoke non-compliance of ATR-14 to its practicing members" is incorrect.

This has clearly been communicated by ICAP to all members.

Legal position suggests that stay order of SC is on CCP's order and Not on ATR-14. SC's stay order does not say that total matter is intervened and stayed. Rather, it says that the action taken by CCP and decision given by it is stayed. This is crucial to understand.

So, ATR-14 does exist when CCP's judgement has been stayed. ICAP gave its comments after having legal position clarified.

Just to remind ATR-14 is not only applicable on practicing members. Rather, members in industry are also required to comply with all professional pronouncements (though in whatever capacity they can). So, any member in industry (as its CFO or CEO or on other influencing position) cannot object or decline to accept ATR-14 until SC's stay order on CCP's action prevails.

In case some adverse decision comes, then of course it will not be binding on any one.

I think this will be beneficial to understand the issue.

Regards,



KAMRAN.

[Star]

Dear Sir,

Thanks for the guidance.

Regards,


*

[Dard]

With all due respect, atleast an individual having a senior post should know it is 500,000, not 50,0000(if it is 5 lac)
The choice of place depends solely on you. Some PpL are leaving Pakistan due to its current situation of shortage in everyday-life-necessities. Job market for experienced professionals is great anywhere in the world, including islamabad. Dubai is currently undergoing a financial crisis, having huge sums of debt owed to others

[Sunny.Butterfly]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Dard</i>
<br />With all due respect, atleast an individual having a senior post should know it is 500,000, not 50,0000(if it is 5 lac)
The choice of place depends solely on you. Some PpL are leaving Pakistan due to its current situation of shortage in everyday-life-necessities. Job market for experienced professionals is great anywhere in the world, including islamabad. Dubai is currently undergoing a financial crisis, having huge sums of debt owed to others
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">

Thanx Dear, it was 50,000 and not 5 lac, plz accept my appology in this regard.