Statutory Audit and Assurance Services in Pakistan

Which companies need a statutory audit in Pakistan?

Every public company and every private company registered with the Securities and Exchange Commission of Pakistan (SECP) must appoint an auditor and have its annual financial statements audited, except where the Companies Act 2017 provides a specific exemption for small companies. The audited accounts are laid before members at the annual general meeting and filed with the registrar.

Banks, lenders, donors and tax authorities also rely on audited statements. Even when an audit is not strictly mandatory, an independent opinion makes financing, tenders and investor due diligence considerably easier.

• Public listed and unlisted companies
• Private limited companies and their subsidiaries
• Non-profit organisations registered under section 42
• Entities receiving donor or government grants
• Businesses applying for bank finance or public tenders

What types of audit and assurance engagements does WDS perform?

Our assurance practice covers the full range of engagements defined by the International Auditing and Assurance Standards Board. Each engagement type has its own reporting format and level of assurance, so we agree the correct one with you before work starts.

• Statutory and external audits of annual financial statements
• Internal audits on an outsourced or co-sourced basis
• Review engagements under ISRE 2400
• Agreed-upon procedures under ISRS 4400
• Due diligence reviews for acquisitions and investments
• Special purpose audits for lenders, donors and regulators
• Stock and inventory verification
• Forensic audits and fraud investigations

How is an ISA compliant audit planned and executed?

An ISA audit begins with understanding the entity, its environment and its internal controls, followed by a risk assessment that identifies where material misstatement is most likely. Audit procedures are then designed around those risks rather than applied uniformly to every balance.

Our partners spent years inside Deloitte's audit methodology and ICAP's Audit Quality Review function. That means our working papers are built to withstand a quality control review, and the audit report you receive is supported by documented evidence for every significant judgement.

What does a statutory audit cost and how long does it take?

Audit fees depend on the size and complexity of the entity, the number of locations, the quality of its accounting records and the reporting framework it uses. A small private company with clean books needs far fewer hours than a multi-entity group with inventory across several sites.

We quote a fixed fee in a signed engagement letter after an initial review of your trial balance and prior year accounts. For most private companies, fieldwork and reporting are completed within four to six weeks of receiving closed books.