The Securities and Exchange Commission of Pakistan (SECP) conducted pre-audit meetings with statutory external auditors of listed insurance companies under the recently promulgated Code of Practice for the Relationship between Statutory External auditors and the SECP.
The meetings were aimed to share experiences and information gained over the years with each other and to discuss practical issues in carrying out the audit and regulatory function of listed insurance companies. Recognising the need to engage more effectively with external auditors, the SECP notified the code vide SRO 615(I)/2016 dated July 12, 2016.
The code sets out the principles that establish the nature of the relationship between the SECP, external auditors, the form and frequency of communication between the two parties and the responsibilities and scope for sharing information. In the individuals meetings both the SECP and auditors shared their views and apprehensions with respect to a particular regulated listed insurance company and on the insurance industry as a whole.
The meetings provided opportunity to the SECP to communicate its concerns to external auditors, which could be looked into during the statutory audits for the year ending December 31, 2016. These meetings will improve the confidence in the audited financial information and help in ensuring that the supervisory efforts and policies are effective, appropriate and based on accurate data. They will also help the SECP and auditors in better performing their respective roles in order to strengthen the overall regulatory process and quality of audit.-PR