ISLAMABAD – The Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost and Management Accountants of Pakistan (ICMAP) will give recommendations within three weeks to bring reforms in the existing Cost Audit Regime.
The process started in January 2025 when the Securities and Exchange Commission of Pakistan (SECP) issued a consultation paper with the objective of reviewing the utility and effectiveness of the existing cost audit framework.
The paper was circulated and placed on the SECP’s website to obtain feedback from key stakeholders across various sectors. In continuation of this initiative, consultation sessions were held in Lahore and Karachi with representatives from industry, professional bodies, and regulators.
The responses received reflected a broad range of perspectives, with the majority of participants considering the existing cost audit framework as a compliance-heavy requirement with limited practical or economic utility.
Building upon the feedback received during the consultation process, a follow-up consultation session was organised at the SECP Head Office in Islamabad under the chair of the SECP Chairperson. Representatives from the ICAP, ICMAP, the Ministry of Industries and Production (MoI), the Competition Commission of Pakistan (CCP), and other industry stakeholders attended the session.
The participants engaged in detailed deliberations on aligning the cost audit regime with international standards and enhancing its relevance to regulatory and policy objectives.
It was unanimously agreed that ICAP and ICMAP would jointly undertake a comprehensive review and furnish detailed recommendations to the SECP after consultation with relevant stakeholders, where necessary, within three weeks.
The review will focus on the formats of cost accounting statements to be annexed with the audited financial statements, the scope of the audit of these annexed statements, and the mechanism for filing them with sectoral regulators.
The aim is to develop a balanced and efficient cost audit framework that ensures transparency and accountability while avoiding duplication of reporting requirements and facilitating ease of doing business in Pakistan.
