ERNST AND YOUNG FORD RHODES SIDAT HYDER, CHARTERED ACCOUNTANTS versus
Failure of Section 282B, 282J (1) and 282M Non-Banking Finance Companies and Regulations of Notified Companies, 2008, Schedule 5, Clause 7F External Auditor of, to inform Unit Holders of any material fact / incident. Was harmful to Unit holders The ternal external auditors, who were responsible for the unit holders, and their fees were received from the fund, are expected to perform their duties in the interests of the fund's unit holders. And to report them as being materialistic / even harmful to their interests, the external auditors failed to expose the risk of the related party's transactions to potential fraud by the external auditors of the administration. Indications were; Impact; Disclosure of related party / affiliate transactions in the corresponding financial statements of the year. External auditors, to disclose the relevant information of relevant parties / affiliates to the user, to understand the potential impact of these transactions in the financial statements of the relevant year, the current regulatory framework and international accounting and auditing standards. He was well aware of the needs. Which required auditors to recognize the risk factors for fraud related to the respective party relationships and transactions. And report to the user of the Securities and Exchange Commission report, the external auditors were not fined for taking a soft view and instead were strongly warned to be cautious in the future. And to ensure that all relevant parties / affiliates and their transactions were disclosed in the strictest financial statements as per the requirements of the present Regulation. And in the interest of unit holders
Related judgments — Securities and Exchange Commission of Pakistan, 2014
