Enquiry:

Kindly refer to the requirement that auditor of ESE should have satisfactory QCR rating.
The question is that in case of co-audit whether both the auditors should be QCR certified or not.

Opinion:

The Committee would like to refer the following wordings of SECP SRO 268(1)/2012  dated March 16, 2012 which relates to the issue:

“………….the SECP is pleased to direct all non-listed companies, falling under the definition of ‘economically significant companies’ in terms of clause (iii) of para 2 of Part-1 of the Fifth Schedule to the said Ordinance, to appoint as its statutory external auditors of the firms of Chartered Accountants which hold satisfactory rating under the ‘Quality Control Review Program’ of the Institute of Chartered Accountants of Pakistan. The requirement of this directive shall be effective from the financial year beginning on or after July 1, 2012”.

The Committee is of the view that in case of co-audit both the auditors should hold satisfactory rating under the QCR program of the Institute.

(August 29, 2013)