AOB reprimand, imposed penalty on a large audit firm.

ISLAMABAD -- The Audit Oversight Board (AOB) reprimanded the firm with a penalty of Rs. million, and directed the firm not to allow the concerned engagement partner to conduct audit of Public Interest Companies (PICs) for one year with a requirement of completion of training hours.

The penalty was imposed after conducting an inspection of records of a large audit firm, said a news release issued here on Monday.

AOB conducted direct inspection of the records of M/s KPMG Taseer Hadi and Co. Chartered Accountants (the Firm) in November and December in exercise of its regulatory powers and with a reference received from the Security and Exchange commission of Pakistan (SECP), it said.

A report on the findings was shared with the Firm in February 2021 and the Firm provided its first written response in March 2021.

Thereafter, a meeting was held between the officers of AOB and the firm to discuss the findings and the responses.

After a detailed analysis of the inspection report and the responses, the AOB issued a show cause notice upon the Firm in April 2021 and written response was received (second response) in reply to the SCN in May 2021.

AOB provided the Firm an opportunity of being heard, after which, a decision was taken by the AOB and the Order was issued on 4 June 2021. A copy of the order can be viewed on the...