Services in Pakistan
Financial statements and audit
Annual financial statements under the framework your company is required to apply, ready for your auditors and for filing, with support from the readiness review to signing.
Accounts that hold up under examination
We prepare annual financial statements under the framework your company is required to apply under the Third Schedule to the Companies Act 2017, complete with notes, disclosures and a partner review, ready for your auditors and for filing.
The work starts from a closed and reconciled trial balance. Where we keep your books, that is our own work; where your team keeps them, we review the year-end position before drafting. Your directors approve the statements and remain responsible for them, and our audit support can carry the work through to the signed report.
Which framework applies
The Third Schedule to the Companies Act 2017 sets the reporting framework for each class of company. We confirm your company's class before drafting begins.
| Entity class | Framework |
|---|---|
| Small-sized company | Accounting and Financial Reporting Standards for Small-Sized Entities (AFRS for SSEs) |
| Medium-sized company | IFRS for SMEs |
| Large-sized or public-interest company | Full IFRS, as applicable in Pakistan |
Beyond the annual statements
Group, interim and technical work, under the same framework and the same partner review.
Consolidation
Group statements that bring in each subsidiary and associate, with intercompany balances eliminated and every adjustment traceable to a consolidation schedule.
Half-yearly and interim sets
Statements for a half-year or another interim period, prepared under the same framework as your annual accounts, for lenders, investors or a parent company.
Technical accounting memoranda
Written analysis where a judgement needs support: financial instruments (IFRS 9), revenue (IFRS 15), leases (IFRS 16), deferred tax and impairment.
First-time adoption and conversion
Accounts restated when a company applies a framework for the first time or moves from one framework to another, for example from AFRS for SSEs to IFRS for SMEs.
Audit support
Your side of the audit, prepared before the auditors ask for it and seen through to signing.
Audit readiness review
A pre-audit health check four to six weeks before fieldwork, covering reconciliations, cut-off, provisions, the fixed asset register and related parties. You receive a written list of fixes while there is still time to make them.
Full audit support
Lead schedules, reconciliations and confirmations prepared, auditor queries answered, and the management representation and management letter responses handled, through to signing.
Statutory audit
We audit companies in Pakistan, including subsidiaries of foreign groups, under International Standards on Auditing as applicable in Pakistan. Independence rules mean we cannot audit a company whose books we maintain.
Companies on our Scale bookkeeping package receive the audit readiness review each year as part of their retainer, together with audit preparation: schedules and auditor liaison.
From year end to signed accounts
One sequence, agreed with you and your auditors at the outset.
Readiness
The review runs four to six weeks before fieldwork, so the fixes it lists can be made before the auditors arrive.
Drafting
The statements and notes are drafted under your framework and reviewed by a partner before you see them.
Fieldwork
Schedules and confirmations are delivered as the auditors request them, and their queries are answered in writing.
Signing
Representation and management letter responses are settled, your directors approve the statements, and the auditors sign.
Questions
Which framework applies to our company?
It follows from your company's class under the Third Schedule to the Companies Act 2017: AFRS for SSEs for a small-sized company, IFRS for SMEs for a medium-sized company, and full IFRS, as applicable in Pakistan, for a large-sized or public-interest company. We confirm the class before drafting, and if it has changed since the last set of accounts, we plan the conversion with you.
Can Pi audit a company whose books it keeps?
No. Auditing books we had kept would mean auditing our own work, and independence rules do not allow it. Where we keep your books, we prepare your statements and support the audit carried out by your auditors. If you would like us to act as your statutory auditor, your books need to be kept by your own team or another provider, and the other independence requirements must also be met. See audit and assurance.
How early should we start preparing for the audit?
Plan for the readiness review four to six weeks before fieldwork. That leaves time to clear reconciling items, correct cut-off and support provisions before the auditors test them. If the books themselves are behind, a clean-up comes first: see onboarding and clean-up.
Speak with a partner
Every enquiry is read by a partner and answered within one business day. Meetings are held at our offices, at yours, or by video.