The Securities and Exchange Commission of Pakistan (SECP) has published a consultation paper on the ‘Cost Audit Regime in Pakistan’ aimed at assessing the effectiveness of the Companies (Maintenance and Audit of Cost Accounts) Regulations, 2020, and exploring potential improvements in light of prevailing practices and industry needs.
“The consultation paper highlights the role of cost audits in enhancing transparency, operational efficiency, and accountability within the corporate sector,” a news release said.
It reviewed the existing regulatory framework, international practices and the current use of cost audit reports in Pakistan, besides outlining several key considerations and posing targeted questions to stakeholders for feedback.
Currently, Cost Audit requirement is limited to only five industries, the stakeholder consultation seeks feedback on expansion or restriction to specific industries, challenges and potential solutions, implementation of cost accounting standards and audit framework, as well as public disclosure or confidentiality of cost audit reports.
The SECP invited all stakeholders, industry experts, and relevant parties to share their valuable feedback and recommendations, responses could be submitted via email to [email protected] by January 31, 2025.