Does my company need a statutory audit in Pakistan?
It depends on the company's classification under the Companies Act and, in some cases, on requirements imposed by lenders, investors, donors or regulators independently of the statute. Tell us the entity type, size and who is asking, and we will tell you what is actually required — including when the answer is that no audit is needed.
What is the difference between an audit and a review?
An audit gives reasonable assurance and involves testing evidence supporting the figures. A review gives limited assurance and is based primarily on enquiry and analytical procedures. A review costs less and concludes negatively — that nothing came to our attention suggesting the statements are misstated. Which is appropriate depends on who is relying on it and for what.
Can you do our bookkeeping and also audit us?
Generally no, and you should be cautious of a firm that says yes without qualification. Preparing the records and then auditing them creates a self-review threat under the ICAP Code of Ethics. For public interest entities the prohibition is strict; for other entities it depends on materiality and the safeguards available. We will tell you at the outset which side of that line your situation falls on rather than discovering it later.
How long does a statutory audit take?
It depends on the size of the entity, the state of the records and how quickly information is provided. First audits take longer because the opening position has to be established. We give a realistic timeline at scoping rather than an optimistic one, and we would rather decline than accept a date we cannot meet.
What is a management letter and why does it matter?
It is the letter setting out control weaknesses and process issues identified during the audit, with recommendations. The audit opinion serves third parties; the management letter serves you. It is the part of the engagement most likely to change how the business runs, and we treat it accordingly.
How do donor or project audits differ from statutory audits?
They are performed to the funder's specification rather than the statutory format, with different sampling, documentation and reporting requirements. Continued funding often depends on the audit being accepted by the donor — which means a technically correct file in the wrong format is a failed audit. We have performed World Bank project audits and audits for donor-funded programmes.
Can you audit a foreign company's branch in Pakistan?
Yes. Foreign branches of state-owned Chinese construction groups are among our longest-standing clients, and we handle the SECP and Board of Investment compliance alongside the audit.
How are audit fees determined?
Statutory audit is normally a fixed fee for a defined scope, agreed in writing before fieldwork begins. Where the state of the records means significantly more work than scoped, we tell you before doing it rather than afterwards in an invoice.