In accordance with clause 6.4 of the Securities Brokers (Licensing and Operations) Regulations, 2016 (the Regulations), a Securities Broker is required to submit the following audited statements to Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX) and National Clearing Company of Pakistan Limited (NCCPL) on a half yearly basis:
- Audited statement of Net Capital Balance, required under the Second Schedule of the Regulations; and
- Audited statement of Liquid Capital, required under the Third Schedule of the Regulations.
The Institute in consultation with SECP has:
- Revised the auditor’s report format on the statement of Net Capital Balance in accordance with the requirements of ISA 805 (Revised), Special Considerations – Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement.
Previously, the Institute through Circular 09/2016 (dated September 26, 2016) issued the format of the auditor’s report on the statement of Net Capital Balance of the Securities Brokers/ Brokerage House. However, the format of the auditor’s report has been revised owing to the issuance of revised ISA 805 by International Audit and Assurance Boards. The revised format of the auditor’s report will supersede the previously prescribed format; and
- Developed the auditor’s report format on the statement of Liquid Capital in accordance with the requirements of ISA 805 (Revised).
Formats of the above mentioned revised and newly developed auditor’s reports are attached to this Circular.
Members are advised to take guidance from the enclosed formats.