Home Accountant LTBA urges CEC to strike its observation from the order

LTBA urges CEC to strike its observation from the order

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ISLAMABAD, August 23: The Lahore Tax Bar Association (LTBA) has deplored the attempt by PTI lawyers to shift the blame onto the auditors for any wrongdoing found in the PTI foreign funding case and urged the Chief Electoral Commissioner (CEC) to erase his observations. of the ECP command.

In a letter dated August 20 to Chief Election Commissioner Sikandar Sultan Raja, LTBA President Akhter Mahmood Mian wrote: “It is deplorable to use this kind of profession for one’s own motives without heed and without measuring the loss to be borne by such a noble profession. In these circumstances, we pray that the statements of observation and confidence of the PTI attorneys are please deleted or expunged from the ECP order.

The letter states that transferring wrongdoing to the auditor “another state profession is slandered, disgraced or unnecessarily criticized by the general public.”

“The misdeeds or misdeeds of the management of an organization which would benefit from it, cannot be put on the shoulders of the auditors and cannot be brought into disrepute. The Learned Lawyers (PTI) were not justified in using the auditors’ credentials for their own purposes,” the letter states.

The President of the LTBA also reproduced a related portion of the order to support his claim and wrote: “…Thanks to this observation of the electoral commission, even it is the argument of counsel for the respondent on which he relied and took shelter from the firm of certified public accountants and describes that the respondent’s auditors are rated QCR by the ICAP, because on the basis of this list, he there are only 120 firms out of 691 firms (These 120 firms include large, medium and small firms and sole proprietorships as well) and the auditors fall into State Bank Category A in which there is no there are only 14 cabinets”.

Mahmood Mian said that the arguments put forward by the lawyer were based on this impression, this fact and this reason that the audit was carried out by such a company which carried out this type of references and background, therefore these accounts were correct, therefore, this procedure began. on Akbar’s complaint Sher Babar should be closed because there was no error in these accounts, but the honorable electoral commission said in this order that there were also many undeclared accounts or hidden funds and prohibited funds.

However, the President of the LTBA clarified that this representation was not intended to become a party to this case or to advocate to any political party or other person who may have been affected by financial wrongdoing of any kind. whatever, but rather to defend our accounting profession which primarily has the legitimate authority, source, technology and ability to perform the auditing service.

“That this order/report of the Electoral Commission which contains observations on the firm of chartered accountants namely Munif Ziauddin & Co Chartered Accountants and finally the order be adopted that there are prohibited funds and concealed accounts, left the impression and a strong opinion in the general public that the audit is not conducted properly by the auditors and that they have been negligent in their duties and that the auditors are rated QCR by ICAP.

Fingers raised on the QCR rated firm, the QCR process and the Institute of Chartered Accountants of Pakistan which is a public body established by the Chartered Accountants Ordinance 1961 as the Federal Government is heavily represented on the Council of ICAP as government candidates.

The federal government exercises such strict control over the powers of the ICAP Board that the Board cannot change or frame its regulations until prior government approval is sought,” he noted.

“The audit is not conducted for the government or semi-government department, regulators, financial institutions, creditors or potential investors, but rather to report the members or appointing authority of any company, business or non-profit organization.

The company, business or any organization may provide its copy to any department because the said financial statement accompanied by the report of the auditors is the property of the said company, business or organization.

The recipient of the financial statements appended to the auditors’ report has no authority or lawful right to examine, analyze or audit the financial statements and to prove that these financial statements are false or incorrect and that the audit does not ‘is not carried out by the auditors to his satisfaction and the auditors are held responsible or held responsible for bad reputation,’ he wrote in the letter.

He said the auditors have not prepared the accounts nor are they legally authorized to make the necessary disclosures in the accounts and to decide on the accounting policies on the basis of which the accounts are finalized.

Accounting assumptions and estimates are also selected and adopted by management itself. The auditors express an opinion on the financial statements prepared by management.

The auditors do not issue the certificate that the accounts are correct, but the auditors express an opinion that the accounts give a true and fair view… Based on the statement issued by the management, the auditors publish the report of the auditors as required per International Standard on Auditing 580.

“Although the auditors have received management’s written representation that management has discharged its responsibility for the preparation of the financial statements and the completeness of the information provided to the auditors, the auditors have performed the audit and were satisfied with the financial statements provided for Audit.

The auditors designed the audit programs taking into account the risk of error, error or misstatement. With these audit procedures, including compliance and substance, the audit work is complete. While updating and completing the audit International Standard on Auditing, ICAP technical guidelines, disclosures required under the Companies Act 2017 or other relevant laws governing the relevant companies are kept in mind,” he noted.

“That wrongdoing or wrongdoing by the management of an organization, who might benefit from it, cannot be placed on the shoulders of the auditors and cannot be brought into disrepute. The eminent lawyers were not justified in using the powers of the auditors for their own ends and for their confidence, because the auditors practicing as active members of ICAP are equal and enjoy equal status when performing their professional services.

If a practicing accountant is criticized or slandered, the entire profession is put at risk in the eyes of the general public and the person and organization seeking the services of accountants nationally or international.

It can be reported that the Institute of Chartered Accountants of Pakistan is a member of the International Federation of Accountants and fully complies with all the standards and regulations of IFAC.

In conclusion, Mahmood Mian said that it is deplorable to use this kind of profession for one’s own motives without caring and without measuring the loss to be borne by such a noble profession. In these circumstances, it is requested that the attorney’s statements of observation and confidence may be deleted or erased from the order.