Law: Companies Ordinance, 1984

Section: 255, 260 & 476

Companies Ordinance (XLVI of 1984)--Ss. 255, 260 & 476---Statement and report of Auditors---Making Audit report otherwise than in conformity with requirements of S.255 of Companies Ordinance, 1984---Imposition of penalty---Enforcement Department of the Commission while examining account of company concerned, found the Auditors' report pertaining; to accounts had not been made in conformity with the requirements of S.255 of Companies Ordinance, 1984---Matters pertaining to previous years' accounts of the company were also not considered by the Auditors while issuing audit report---Show-cause notice was issued to the Auditors pertaining to their responsibilities under the Companies Ordinance, 1984: International Accounting and Auditing standards and non-compliance observed in the accounts---Auditors being the ultimate watchdog of the share-holders interest, were required to give a report on the accounts and books of account after conducting the audit in accordance with a prescribed procedure and requirements of Companies Ordinance, 1984, and International Accounting and Auditing standards---If Auditors found any irregularity, which was material and pervasive with regard to the, accounts, they were required to issue an adverse opinion in their report---Share-holders were the entity to whom the Auditors were responsible and they must keep that fact in mind while auditing the books of accounts and reporting thereon---Auditors must realize their true role and restrain themselves from performing their duties indulgently---Capital required for the business of a company is contributed by its shareholders who could not necessarily be the persons managing the company---1n the present case of a listed company, general public also contributed towards the equity of the company---Share-holders were stakeholders and ultimate beneficiaries, but they had no control over the way their company was managed by the directors appointed by . them---Law; in circumstances had provided that shareholders should appoint Auditor who would be responsible to audit accounts and books of accounts and make out a report to them at the end of each year; it was extremely important for the…