Pakistani CA Firms and Audit of Foreign Companies

[zephyrrr]

Do Pakistani CA Firms audit of foreign companies or a Pakistani CA firm may only perform audit of it's own homeland companies?

adeel

[Pracs]

Well a lot depends where a company is registered and resident and what kind of laws it has to comply with. A Pakistani registered CA audits branches of foreign companies in pakistan for sure (reporting to the Holding company or the head office as the case may be, plus under requirements by company or tax laws), However foreign auditors are not allowed to report on branches of foreign companies or other SECP companies. For example we audited a Dubai based bank with branches in Pakistan, India, Sri lanka, Sudan, Egypt, UK and US. Under the laws of all these countries except that of UK and US a local registered auditor could issue a report (admissiable to the central banks and the tax authorities).. so it turned out that the local member firms in the respective countries did the audit as a referal and issued their reports for statutory purposes and a clearance/audit report to us. In US and UK our Dubai office audited for Dubai- statutory purposes and for their central banks as well. A tax auditor (from the UK and US) was involved for tax returns etc. Incidently the audits in UK and US could also be undertaken by the UK and US offices of our firm but that would turn out to be more expensive compared to an auditor going from Dubai.

Other members care to add ?

"Allah does not change the state of people unless they change what is within themselves" Quran 1311