The retirement benefit funds (such as provident fund, gratuity fund) are established by companies for the benefit of their employees. These retirement benefit funds are formed under the Trust Act, 188 2 (the Trust Act). Further, the trust deed outlines the objects and mode of management of these funds. How ever, the Trust Act does not specify a framework for the audit of financial statements.
In this context, the Institute has been receiving queries from the members seeking clarification on the format of the auditor’s report to be used.
The Auditing Standards and Ethics Committee of the Institute clarifies that auditor of a retirement benefit fund should conduct audit in accordance with the International Standards on Auditing (ISAs) as applicable in Pakistan and issue a report on financial statements in accordance with the ISA 700 ( Revised), Forming an Opinion and Re porting on Financial Statements.
Members are advised to take note of the above.
Circular 5 – Auditors Report on Financial Statements of the Retirement Benefit Funds