Executive Overview & Strategic Scope
Javid Law Associates delivers rigorous CPA-certified statutory and tax audit services specifically tailored for software houses, IT-enabled services (ITeS), and technology startups operating across Islamabad, Rawalpindi, and throughout Pakistan. Technology firms face complex regulatory landscapes involving SECP corporate filings, FBR tax exemptions under the Second Schedule of the Income Tax Ordinance 2001, and provincial revenue authorities (PRA, SRB, KPRA) regarding sales tax on services. Our audit engagement mitigates severe statutory non-compliance risks, ensures accurate revenue recognition for export proceeds routed through banking channels, validates PSEB registrations, and fortifies your balance sheet against unexpected tax audits, arbitrary amendments under Section 122, and corporate liability.
Statutory & Regulatory Framework
Our audit methodology is anchored in strict adherence to the Companies Act 2017 (Sections 223 to 233), the Income Tax Ordinance 2001 (specifically addressing withholding tax obligations under Sections 149/153 and corporate returns under Section 114/120), and the Sales Tax Act 1990 read with provincial statutes like the Punjab Revenue Authority Act 2012. We verify compliance with international financial reporting standards (IFRS) as applicable in Pakistan, review SECP eZfile filings, reconcile FBR Iris 2.0 withholding statements with general ledgers, and examine PSEB operational criteria to protect export tax exemptions and secure corporate legal standing.
Procedural Roadmap & Execution Phases
Chronological breakdown tailored specifically to CPA Certified IT Company Audit (Islamabad/Rawalpindi):
- Phase 1: Intake & Financial Data Vetting: Comprehensive review of trial balances, general ledgers, bank statements, and software export invoices (e.g., electronic export forms and PRC certificates).
- Phase 2: Statutory Reconciliations & Tax Audit: Cross-examination of FBR Iris withholding tax returns, sales tax monthly returns (PRA/FBR), and SECP corporate records against financial statements.
- Phase 3: Compliance Testing & Internal Control Review: Evaluating payroll taxation, Director's remuneration, contractor payments, and intellectual property asset capitalization.
- Phase 4: Draft Reporting & Management Discussion: Issuance of preliminary audit findings, identification of statutory exposure, and formulation of corrective accounting entries.
- Phase 5: Final CPA Certification & SECP/FBR Lodgment: Issuance of the audited financial statements, independent auditor's report, and subsequent submission to the SECP eZfile portal and FBR annual filing systems.
| Procedural Stage | Statutory Forum / Regulator | Statutory Timeline / Limitation | Key Deliverable / Milestone |
|---|---|---|---|
| Initial Scrutiny & Data Collection | Javid Law Associates Audit Desk | Week 1 | Trial Balance & Ledger Verification Checklist |
| Tax & Corporate Reconciliation | FBR Iris 2.0 & SECP eZfile | Week 2 | Withholding & Sales Tax Reconciliation Report |
| Audit Report Drafting & Partner Review | ICAP / Institute of CPAs Framework | Week 3 | Draft Independent Auditor's Report |
| Final Certification & Portal Filing | SECP & Federal Board of Revenue | Week 4 (Prior to Statutory Deadlines) | Signed CPA Audit Report & Annual Filing Confirmation |
Why Choose Javid Law Associates
Headquartered in F-10 Markaz, Islamabad, Javid Law Associates uniquely combines high court advocacy with elite corporate accounting and tax advisory. Our integrated team of High Court advocates and Certified Practicing Accountants understands the intricate intersection of the Companies Act 2017 and the Income Tax Ordinance 2001. We do not just compile numbers; we proactively shield IT enterprises from aggressive tax departmental audits, appellate disputes before the ATIR, and regulatory penalties, ensuring absolute corporate health and seamless compliance.
Service heading
CPA-Certified Statutory & Tax Audit for IT Companies in Islamabad, Rawalpindi & Nationwide
Estimated duration
3-4 Weeks
Documentation & Requirements
Clear breakdown of client-provided records and deliverables prepared by our advocates
- Company Incorporation Documents (COI, Memorandum & Articles of Association)
- Unaudited Trial Balance, Profit & Loss Statement, and Balance Sheet
- Bank Statements for all corporate accounts for the financial year
- FBR Iris 2.0 Annual Tax Returns and Monthly Withholding Statements (Statements u/s 165)
- Software Export Invoices, Electronic Export Forms (EEF), and PRCs
- Payroll summaries, employee tax deduction records, and utility bills
- Detailed Audit Program & Risk Assessment Matrix
- Tax Compliance & Withholding Reconciliation Working Papers
- Draft Independent Auditor's Report & Financial Statements
- Management Letter highlighting internal control improvements
- CPA Certified Statutory Audit Report for SECP and FBR submission
Key features
- Comprehensive Statutory Audit under Companies Act 2017
- FBR Iris 2.0 Withholding & Corporate Tax Reconciliation
- Export Software Revenue & PRC (Proceeds Realization Certificate) Verification
- PRA / SRB / KPRA Sales Tax on Services Compliance Review
- SECP eZfile Annual Return & Financial Statement Lodgment
- PSEB Operational & Tax Exemption Audit Support
- Internal Controls & Payroll Taxation Risk Assessment
- High Court & ATIR Litigative Tax Protection Backup
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.