I refer to the article "Accounting laws need to be updated" by Mohammad Ashraf in the Business Recorder of September 15, 2004, and would like to point out that there are certain factual errors in the article. It is stated in the article that:
"In 1956, the industrial accounts body was formed followed by the ICAP in 1961. Almost all the members of these two bodies are foreign qualified, either from India or England and Wales." [This is an incorrect statement, as an overwhelming majority of the members of these two institutes are Pakistani qualified].
"It should be noted that the ICAP has placed comments on its website regarding the QCR checked firms, listed companies that have not received any complaint in respect of these firms. This approach does not suit a body like the ICAP and raises doubts regarding the quality procedure. People see section 254 of the Companies Ordinance as an advertisement for the Institute of Chartered Accountants of Pakistan as any illiterate person can conduct the audit apart from them."
[Here again the author does not have the facts straight and appears to be confusing the issue. ICAP's website merely has a 'List of practising firms having satisfactory QCR rating'. Firms are placed on this List after a quality control review, done by the ICAP's professional staff, has concluded that the firm's review has been satisfactory. Section 254 of the Companies Ordinance relates to the 'Qualification and disqualification of auditors', and thus considering it to be an advertisement for the Institute of Chartered Accountants of Pakistan is difficult to comprehend.
The other aspects raised by Mohammad Ashraf are his own individual views, to which he has a right. However, it would appear that he needs a better understanding of the accounting profession, to remove certain misconceived views that he may have.