Auditing Services in Pakistan
Pakistani companies meeting SECP audit thresholds — or those required by banks, regulators, or foreign investors — must undergo statutory audits by ICAP-member chartered accountants under International Standards on Auditing (ISA).
Pakistani companies meeting SECP audit thresholds — or those required by banks, regulators, or foreign investors — must undergo statutory audits by ICAP-member chartered accountants under International Standards on Auditing (ISA). Fintax Support Limited prepares audit-ready financial statements under IFRS, compiles working papers, and coordinates with your external auditor. We reconcile audited accounts to FBR income tax returns, STRN sales tax filings, and withholding tax CPR registers, and support FBR tax audits with detailed schedules.
Regulatory Framework
SECP requires audited financial statements for public companies, private companies exceeding paid-up capital of PKR 3 million, or turnover above PKR 10 million. Audit reports must be filed with SECP annual returns. ICAP regulates audit quality, and QCR ratings apply to audit firms. FBR may conduct concurrent tax audits examining return positions against audited figures.
Our Auditing Services in Pakistan
Statutory Audits (ICAP/ISA-Compliant)
Prepare for mandatory annual statutory audits required under the Companies Act 2017 Section 246 for SECP-registered companies exceeding prescribed size thresholds. We assemble IFRS-compliant financial statements, ISA-indexed working papers, and PBC schedules so your ICAP-member external auditor can issue an unmodified opinion and you meet SECP annual return filing deadlines.
IFRS audit-ready statements
Balance sheet, profit and loss, cash flows, and notes prepared under IFRS as notified by ICAP before auditor engagement.
Companies Act 2017 Section 246
Audit obligation assessment against SECP size thresholds — paid-up capital, turnover, and public company status.
ISA-indexed PBC schedules
Trial balances, lead schedules, and reconciliations indexed to International Standards on Auditing for efficient fieldwork.
ICAP practice certificate alignment
Working papers structured for engagement by ICAP-member firms holding valid practice certificates and QCR Board ratings.
How It Works
SECP audit obligation mapping
Confirm whether your entity exceeds Companies Act 2017 Section 246 thresholds and identify SECP filing deadlines and disclosure requirements.
IFRS financial statement preparation
Compile IFRS accounts, related-party schedules, and going-concern disclosures aligned to ISA presentation requirements.
External auditor fieldwork support
Respond to PBC requests, provide substantiation, and resolve testing exceptions during on-site or remote audit fieldwork.
Audit report & SECP filing
Coordinate signed audit report delivery, board approval, and submission with your SECP annual return.
SECP audit obligation mapping
Confirm whether your entity exceeds Companies Act 2017 Section 246 thresholds and identify SECP filing deadlines and disclosure requirements.
IFRS financial statement preparation
Compile IFRS accounts, related-party schedules, and going-concern disclosures aligned to ISA presentation requirements.
External auditor fieldwork support
Respond to PBC requests, provide substantiation, and resolve testing exceptions during on-site or remote audit fieldwork.
Audit report & SECP filing
Coordinate signed audit report delivery, board approval, and submission with your SECP annual return.
Under the Companies Act 2017 Section 246, SECP-registered companies exceeding prescribed paid-up capital or turnover thresholds — and all public listed companies — must appoint an auditor and prepare annual financial statements audited under International Standards on Auditing (ISA) by a chartered accountant holding a valid ICAP practice certificate. Audit firms are subject to Quality Control Review (QCR Board) oversight by the Institute of Chartered Accountants of Pakistan. We prepare audit-ready working papers including adjusted trial balances, bank reconciliations, revenue cut-off testing schedules, and related-party disclosures before your external auditor begins fieldwork. Proper preparation reduces billable audit hours, accelerates report issuance ahead of SECP annual return deadlines, and minimises repeat findings that increase costs year over year across multi-entity Pakistani portfolios.
Common Questions
Internal Audit & Management Review
Evaluate internal controls, operational processes, and financial reporting workflows through structured internal audit and management review programmes for Pakistani entities. Internal audit identifies control weaknesses before your external auditor, SECP, or FBR does — reducing fraud risk, qualified opinions, and compliance penalties across private and listed company operations.
Control environment assessment
COSO-based evaluation of entity-level controls, risk assessment, and monitoring across Pakistani business units.
Process walkthrough testing
Transaction-level walkthroughs for revenue, procurement, payroll, treasury, and FBR withholding tax cycles documented with evidence.
Deficiency identification
Control gaps classified and prioritised with remediation timelines before external audit or FBR Section 177 review fieldwork.
Management action plans
Remediation roadmaps with ownership assignments and board or Audit Committee reporting for each identified control weakness.
How It Works
Risk assessment and scoping
Identify high-risk processes, FBR-relevant tax controls, and IFRS reporting areas based on your Pakistani entity structure.
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
Findings report delivery
Present internal audit findings to management and the board with severity classifications and root causes.
Remediation tracking
Monitor corrective actions through follow-up testing before statutory audit or FBR compliance review fieldwork.
Risk assessment and scoping
Identify high-risk processes, FBR-relevant tax controls, and IFRS reporting areas based on your Pakistani entity structure.
Control documentation and testing
Document key controls, perform walkthroughs, and test operating effectiveness over the review period.
Findings report delivery
Present internal audit findings to management and the board with severity classifications and root causes.
Remediation tracking
Monitor corrective actions through follow-up testing before statutory audit or FBR compliance review fieldwork.
Internal audit and management review services evaluate whether your Pakistani organisation's controls over financial reporting, FBR tax compliance, and operations are designed and operating effectively. We apply COSO principles and the Three Lines Model referenced by ISA 315 when external auditors assess control environments during Pakistani statutory audits. For listed companies, findings feed directly into Listed Companies Audit Committee reporting obligations under SECP corporate governance requirements. Our engagements cover entity-level controls, IFRS revenue recognition walkthroughs, FBR withholding tax CPR controls, procurement and disbursement cycles, and IT general controls. Remediation before your statutory audit reduces qualified opinion risk and repeat findings that increase audit costs annually — the same discipline ICAP-member firms apply during QCR Board quality reviews.
Common Questions
FBR Tax Audit Preparation & Support
Prepare for Federal Board of Revenue (FBR) tax audits and compliance reviews under Income Tax Ordinance 2001 Section 177. We reconcile accounting records to FBR income tax computations, assemble transfer pricing files and withholding tax CPR registers, and support your business during FBR audit proceedings — linking book figures to IRIS portal return submissions.
Book-to-tax reconciliation
Bridge schedules linking IFRS profit to taxable income per FBR adjustments, minimum tax, and super tax provisions.
Transfer pricing documentation
Related-party transaction schedules and arm's length documentation assembled for FBR audit requests exceeding PKR 50 million.
IRIS return substantiation
Supporting schedules reconciling income tax return line items to general ledger and trial balance figures.
FBR Section 177 representation
Response package preparation and liaison during FBR desk reviews and on-site tax audit fieldwork.
How It Works
Tax record reconciliation
Reconcile IFRS accounts to FBR income tax computations, identifying permanent and temporary differences per FBR guidance.
Documentation assembly
Compile transfer pricing files, related-party agreements, withholding tax CPR registers, and supporting invoices.
Pre-audit readiness review
Simulate FBR information requests and identify gaps in records, NTN registrations, or IRIS filing history.
FBR audit response & representation
Deliver structured response packages and support your team during FBR Section 177 audit proceedings and follow-up queries.
Tax record reconciliation
Reconcile IFRS accounts to FBR income tax computations, identifying permanent and temporary differences per FBR guidance.
Documentation assembly
Compile transfer pricing files, related-party agreements, withholding tax CPR registers, and supporting invoices.
Pre-audit readiness review
Simulate FBR information requests and identify gaps in records, NTN registrations, or IRIS filing history.
FBR audit response & representation
Deliver structured response packages and support your team during FBR Section 177 audit proceedings and follow-up queries.
The Federal Board of Revenue administers income tax under the Income Tax Ordinance 2001, with Section 177 granting FBR officers authority to audit returns, examine books of account, and issue assessment orders. FBR may conduct concurrent tax audits examining up to five years of returns, requesting reconciliations between IFRS accounting records, IRIS portal submissions, and supporting documentation for transfer pricing and withholding tax transactions. We prepare comprehensive audit response packages including book-to-tax reconciliations, transfer pricing master and local files, withholding tax CPR registers under applicable FBR sections, and fixed asset tax depreciation schedules. Proactive preparation reduces FBR assessment adjustments, penalty exposure, and default surcharge on unpaid tax liabilities identified during Section 177 proceedings.
Common Questions
Cost Audits (For Applicable Companies)
Prepare for mandatory cost audits required under the Cost Audit Rules 2018 for Pakistani companies engaged in specified industries including cement, sugar, textiles, and other notified sectors. We compile cost accounting records, cost statements, and supporting schedules so your ICAP-member cost auditor can certify compliance with SECP and Ministry of Industries requirements.
Cost Audit Rules 2018 compliance
Assessment of whether your entity falls within notified industry categories and turnover thresholds triggering cost audit obligations.
Cost statement preparation
Product-wise and activity-wise cost statements compiled from management accounting records and production data.
Cost accounting record maintenance
Material, labour, and overhead allocation schedules reconciled to general ledger and inventory registers.
SECP & regulator filing support
Certified cost audit reports packaged for submission to SECP and relevant Ministry of Industries authorities.
How It Works
Cost audit applicability review
Determine whether your company is covered under Cost Audit Rules 2018 based on industry classification and turnover thresholds.
Cost accounting record compilation
Assemble material consumption registers, labour cost allocations, overhead apportionment schedules, and production reports.
Cost auditor fieldwork support
Respond to PBC requests, provide substantiation for cost allocations, and resolve testing exceptions during cost audit fieldwork.
Cost audit report & filing
Coordinate signed cost audit report delivery and submission to SECP alongside your statutory financial audit filings.
Cost audit applicability review
Determine whether your company is covered under Cost Audit Rules 2018 based on industry classification and turnover thresholds.
Cost accounting record compilation
Assemble material consumption registers, labour cost allocations, overhead apportionment schedules, and production reports.
Cost auditor fieldwork support
Respond to PBC requests, provide substantiation for cost allocations, and resolve testing exceptions during cost audit fieldwork.
Cost audit report & filing
Coordinate signed cost audit report delivery and submission to SECP alongside your statutory financial audit filings.
The Cost Audit Rules 2018, notified under the Companies Act 2017, require specified Pakistani companies in industries such as cement, sugar, textiles, chemicals, and engineering to maintain cost accounting records and undergo annual cost audits by ICAP-member cost auditors. Cost audit reports must be filed with SECP and may be reviewed by the Ministry of Industries and Production for pricing and regulatory purposes. We prepare cost statements including product-wise cost breakdowns, variance analyses between standard and actual costs, and reconciliation of cost records to statutory financial accounts. Proper preparation ensures your cost auditor can certify compliance efficiently, avoiding regulatory notices and supporting accurate transfer pricing documentation where production costs underpin related-party pricing under FBR rules.
Common Questions
SECP Compliance Audits
Support SECP regulatory compliance through audit preparation covering annual return filings, corporate governance disclosures, and related-party transaction reporting under the Companies Act 2017. We ensure audited financial statements, board resolutions, and statutory registers align with SECP eServices portal requirements before and after your external audit.
Companies Act 2017 compliance
Annual return, audited accounts, and statutory register requirements mapped to your entity type and SECP filing obligations.
SECP eServices filing support
Audited financial statements and audit reports formatted for submission through the SECP online portal.
Listed Companies Audit Committee
Audit Committee reporting packages for listed entities covering external audit scope, findings, and management letter responses.
Corporate governance disclosures
Related-party transaction schedules, director remuneration disclosures, and segment reporting aligned to SECP requirements.
How It Works
SECP obligation mapping
Review your entity classification, filing deadlines, and disclosure requirements under the Companies Act 2017 and SECP regulations.
Statutory register & disclosure review
Verify completeness of statutory registers, board minutes, and related-party transaction records supporting audit disclosures.
Audit report coordination
Ensure audit report format, emphasis of matter paragraphs, and going-concern disclosures meet SECP filing standards.
Annual return & portal submission
Submit audited accounts and annual return through SECP eServices with supporting board resolutions and compliance certificates.
SECP obligation mapping
Review your entity classification, filing deadlines, and disclosure requirements under the Companies Act 2017 and SECP regulations.
Statutory register & disclosure review
Verify completeness of statutory registers, board minutes, and related-party transaction records supporting audit disclosures.
Audit report coordination
Ensure audit report format, emphasis of matter paragraphs, and going-concern disclosures meet SECP filing standards.
Annual return & portal submission
Submit audited accounts and annual return through SECP eServices with supporting board resolutions and compliance certificates.
SECP requires all registered companies to file annual returns accompanied by audited financial statements where applicable under Companies Act 2017 Section 246. Listed companies face additional obligations including Audit Committee oversight of external audit appointments, review of financial statements before board approval, and disclosure of related-party transactions under SECP corporate governance regulations. We prepare SECP-compliant disclosure packages including director remuneration schedules, significant related-party balances, segment information, and going-concern assessments. For listed entities, we coordinate with the Listed Companies Audit Committee on audit scope, management letter findings, and auditor rotation requirements — ensuring timely SECP eServices portal submissions and avoiding compliance penalties that restrict corporate actions.
Common Questions
Non-Profit & NGO Audits
Prepare audit-ready financial statements for non-profit organisations, NGOs, and voluntary social welfare agencies registered under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961. We compile fund accounting records, donor restriction schedules, and grant utilisation reports for ICAP-member auditors and regulatory submissions to SECP, EAD, and donor agencies.
Voluntary Social Welfare Ordinance 1961
Financial reporting aligned to registration and audit requirements for voluntary social welfare agencies in Pakistan.
Fund accounting & donor restrictions
Restricted and unrestricted fund schedules with grant utilisation reports reconciled to bank statements and project records.
International donor compliance
Audit-ready packages meeting USAID, UN, World Bank, and bilateral donor audit and reporting requirements.
SECP Section 42 & trust compliance
Financial statements for companies limited by guarantee and trusts structured for SECP and commissioner of income tax filing.
How It Works
Regulatory & donor requirement mapping
Identify audit mandates under Voluntary Social Welfare Agencies Ordinance 1961, SECP Section 42 requirements, and donor-specific reporting obligations.
Fund accounting compilation
Prepare restricted fund schedules, grant income recognition, and project expenditure accounts with supporting documentation.
External auditor fieldwork support
Respond to PBC requests covering donor fund utilisation, payroll for project staff, and procurement compliance testing.
Audit report & regulatory filing
Coordinate signed audit report delivery and submission to SECP, provincial social welfare departments, and donor agencies.
Regulatory & donor requirement mapping
Identify audit mandates under Voluntary Social Welfare Agencies Ordinance 1961, SECP Section 42 requirements, and donor-specific reporting obligations.
Fund accounting compilation
Prepare restricted fund schedules, grant income recognition, and project expenditure accounts with supporting documentation.
External auditor fieldwork support
Respond to PBC requests covering donor fund utilisation, payroll for project staff, and procurement compliance testing.
Audit report & regulatory filing
Coordinate signed audit report delivery and submission to SECP, provincial social welfare departments, and donor agencies.
Non-profit organisations and NGOs in Pakistan operate under multiple regulatory frameworks including the Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961, SECP registration for companies limited by guarantee under Section 42, and income tax exemptions administered by the FBR commissioner. International donors including USAID, UN agencies, and bilateral development partners routinely require audited financial statements with detailed fund utilisation reports before releasing subsequent grant tranches. We prepare NGO-specific working papers including restricted fund reconciliations, grant income recognition schedules, payroll and procurement substantiation for project expenditures, and compliance with donor-specific audit terms of reference. Proper preparation ensures timely audit report issuance, maintains donor confidence, and satisfies SECP and provincial social welfare department filing obligations.
Common Questions
Inventory & Fixed Asset Verification
Support external auditors with physical inventory counts, fixed asset verification, and depreciation schedule reconciliation for Pakistani entities. We coordinate stocktake procedures, asset tagging, and IFRS-compliant valuation schedules — addressing common audit focus areas for trading, manufacturing, and textile companies subject to SECP statutory audit requirements.
Physical inventory counts
Stocktake planning, count sheet preparation, and variance investigation for auditor observation and testing.
Fixed asset register verification
On-site asset identification, tagging, and reconciliation to the fixed asset register and IFRS carrying values.
Depreciation schedule reconciliation
Useful life assessments and depreciation calculations reconciled to IFRS and FBR tax written-down value registers.
Cut-off & valuation testing
Year-end cut-off procedures and NRV testing schedules prepared for external auditor substantive procedures.
How It Works
Pre-count planning
Design stocktake procedures, freeze inventory movements, and prepare count sheets aligned to auditor requirements.
Physical verification execution
Conduct inventory counts and fixed asset walkthroughs with auditor observation and variance documentation.
Reconciliation and adjustment
Investigate count variances, update registers, and post adjusting entries for inventory and asset discrepancies.
Auditor schedule delivery
Provide indexed inventory and fixed asset schedules reconciled to the trial balance for audit fieldwork testing.
Pre-count planning
Design stocktake procedures, freeze inventory movements, and prepare count sheets aligned to auditor requirements.
Physical verification execution
Conduct inventory counts and fixed asset walkthroughs with auditor observation and variance documentation.
Reconciliation and adjustment
Investigate count variances, update registers, and post adjusting entries for inventory and asset discrepancies.
Auditor schedule delivery
Provide indexed inventory and fixed asset schedules reconciled to the trial balance for audit fieldwork testing.
Inventory and fixed assets represent high-risk audit areas for Pakistani trading, manufacturing, textile, and agricultural processing entities subject to mandatory IFRS audits under Companies Act 2017 Section 246. External auditors apply ISA 501 and ISA 540 substantive procedures including physical observation of inventory counts, fixed asset existence verification, and depreciation recalculation under IAS 16 and IAS 2. For cost-audit applicable companies, inventory valuation also feeds cost statement preparation under Cost Audit Rules 2018. We plan and execute stocktake procedures, coordinate auditor attendance at year-end counts, verify asset existence against registers, and reconcile carrying values to IFRS-compliant depreciation schedules. Proper verification reduces audit scope limitations, accelerates fieldwork for warehouse and factory operations, and ensures asset values support accurate FBR income tax computations.
Common Questions
Special-Purpose & Forensic Audits
Deliver agreed-upon procedures, forensic investigations, and special-purpose audit engagements for Pakistani entities facing fraud allegations, shareholder disputes, bank covenant breaches, or regulatory inquiries. We apply ISA 4400 and forensic accounting techniques to examine specific financial statement areas and provide findings reports for management, boards, courts, and regulatory authorities.
Forensic investigation procedures
Transaction tracing, bank statement analysis, and digital forensics to identify misappropriation, kickbacks, and financial statement fraud.
Agreed-upon procedures (ISA 4400)
Targeted AUP engagements on revenue, related-party balances, or net debt calculations for lenders and investors.
Litigation & dispute support
Expert witness reports and financial analysis for shareholder disputes, arbitration, and court proceedings in Pakistan.
Regulatory inquiry response
Structured financial analysis packages for SECP, FBR Section 177, NAB, and other regulatory investigation requests.
How It Works
Engagement scoping
Define investigation objectives, scope limitations, reporting format, and legal privilege considerations with your advisors.
Evidence gathering & analysis
Collect and analyse financial records, bank statements, communications, and transaction data using forensic accounting techniques.
Findings report preparation
Document investigation findings with supporting evidence chains, quantified losses, and identified control failures.
Presentation & follow-up support
Present findings to management, board, or legal counsel and support remediation, recovery actions, or regulatory responses.
Engagement scoping
Define investigation objectives, scope limitations, reporting format, and legal privilege considerations with your advisors.
Evidence gathering & analysis
Collect and analyse financial records, bank statements, communications, and transaction data using forensic accounting techniques.
Findings report preparation
Document investigation findings with supporting evidence chains, quantified losses, and identified control failures.
Presentation & follow-up support
Present findings to management, board, or legal counsel and support remediation, recovery actions, or regulatory responses.
Special-purpose and forensic audit engagements address situations where standard statutory audits under Companies Act 2017 Section 246 are insufficient — including suspected employee fraud, vendor kickback schemes, related-party transaction irregularities, and financial misstatements identified during internal audit or FBR Section 177 proceedings. We conduct agreed-upon procedures under ISA 4400 for bank covenant compliance verification, investor due diligence, and donor fund utilisation reviews. Forensic investigations apply Benford's Law analysis, transaction tracing, and digital evidence examination to quantify losses and identify perpetrators. Findings reports are structured for use in SECP regulatory proceedings, FBR assessment challenges, shareholder arbitration under the Companies Act 2017, and criminal referrals where appropriate — providing Pakistani businesses with defensible financial evidence in high-stakes disputes.
Common Questions
External Auditor Coordination
Manage the full external audit lifecycle for Pakistani entities — from ICAP-member auditor selection and engagement letter review through PBC list management, fieldwork support, and signed report delivery. We act as your audit liaison, ensuring efficient fieldwork with ICAP/QCR Board-rated firms and consistent figures across SECP filings, FBR returns, and board reporting.
ICAP auditor selection support
Guidance on appointing ICAP-member firms with valid practice certificates and appropriate QCR Board quality ratings.
PBC list management
Prepared-by-client schedule tracking, response coordination, and exception resolution throughout audit fieldwork.
Timeline & milestone planning
Audit calendar aligned to SECP filing deadlines, board meeting schedules, and FBR return due dates.
Multi-entity coordination
Consolidated and standalone working papers across Pakistani group entities with intercompany elimination schedules.
How It Works
Auditor engagement setup
Review engagement letters, confirm audit scope, and align timelines with SECP annual return and board approval schedules.
PBC package preparation
Compile indexed working papers, reconciliations, and draft IFRS disclosure notes before fieldwork begins.
Fieldwork liaison
Manage day-to-day auditor inquiries, coordinate site visits, and resolve testing exceptions during on-site fieldwork.
Report issuance & filing coordination
Facilitate management representation letters, Audit Committee review for listed companies, and SECP portal submission.
Auditor engagement setup
Review engagement letters, confirm audit scope, and align timelines with SECP annual return and board approval schedules.
PBC package preparation
Compile indexed working papers, reconciliations, and draft IFRS disclosure notes before fieldwork begins.
Fieldwork liaison
Manage day-to-day auditor inquiries, coordinate site visits, and resolve testing exceptions during on-site fieldwork.
Report issuance & filing coordination
Facilitate management representation letters, Audit Committee review for listed companies, and SECP portal submission.
External auditor coordination ensures your Pakistani statutory audit proceeds efficiently from ICAP-member firm appointment through signed report delivery and SECP filing. We manage the prepared-by-client (PBC) process — tracking hundreds of schedule requests, coordinating responses across finance, operations, and HR teams, and resolving testing exceptions before they escalate to modified opinions. For listed companies, we liaise with the Listed Companies Audit Committee on audit scope, fee proposals, and management letter responses. Our coordination covers engagement letter review, fieldwork scheduling aligned to inventory count dates and year-end close timelines, management representation letter preparation, and reconciliation of final audited figures to FBR income tax returns and IRIS portal submissions. Effective coordination reduces audit fees, prevents SECP filing delays, and maintains productive long-term relationships with your ICAP/QCR Board-rated audit firm.
Common Questions
Frequently Asked Questions
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