SECP Directs Modaraba Companies to Follow New Rule for Audit Reports

The Securities and Exchange Commission of Pakistan (SECP) has made it compulsory for the auditors of all Modaraba companies to mention the unique document identification numbers (UDINs) of Institute of Chartered Accountants of Pakistan (ICAP) on all audit reports. According to directive number 2 issued by the SECP to the Modarabas on Tuesday, in exercise of powers conferred under Section 4IB of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (the “Modaraba Ordinance”), the SECP has directed all Modaraba companies and Modarabas that it shall be mandatory for their auditors to mention the unique document identification number (UDIN) generated from the designated portal of the Institute of Chartered Accountants of Pakistan on the initial and revised audit reports. The audit report are issued under the Modaraba Ordinance, the Modaraba Companies and Modaraba Rules, 1981, the Modaraba Regulations, 2021, and the Auditors (Reporting Obligations) Regulations, 2018. The Modaraba companies and the auditors of the Modarabas companies and Modarabas shall ensure compliance with these requirements with immediate effect. Any violation/circumvention of this direction shall be dealt with in accordance with the relevant provisions of the Modaraba Ordinance, SECP added.