Audit and Assurance Services in Pakistan
Audit and assurance services check whether a company's financial statements are accurate, complete and fairly presented. An audit gives an independent opinion on those statements. Assurance is the wider work that builds confidence in financial and non-financial information.
TaxConsultancy.pk provides audit and assurance support to companies, small businesses and NGOs across Pakistan. We are based in Rawalpindi and Islamabad and work with clients in other cities too. This page explains what the service covers, who needs it, and how to engage us.
What Audit and Assurance Services Mean
An audit and an assurance engagement are related but not identical. Knowing the difference helps you ask for the right service.
An audit is a formal review of financial statements against an applicable reporting framework. The auditor examines records, tests balances and issues an opinion in a written report. This opinion tells readers whether the statements give a true and fair view.
Assurance is broader. It covers any engagement where a practitioner reviews information and reports on its reliability. A statutory audit is the most common assurance engagement, but reviews and agreed-upon procedures also qualify.
In short, every audit is an assurance engagement, but not every assurance engagement is a full audit.
Our Audit and Assurance Services
We scope each engagement around your legal position, your sector and the reason you need the work.
Statutory Audit
A statutory audit is the annual audit required under the Companies Act 2017 for companies above the applicable size. We examine your financial statements and issue the auditor's report the law requires. The work follows the International Standards on Auditing as applied in Pakistan.
Financial Statement Audit
This is an independent audit of your balance sheet, income statement, cash flow statement and related notes. You receive an auditor's report and, where useful, a management letter on control weaknesses. Lenders, investors and donors often ask for this before they commit funds.
Internal Audit
Internal audit reviews your controls, processes and risk management from the inside. It is ongoing work that helps management find weaknesses before they cause loss. This is separate from the statutory audit and serves a different purpose.
Special Purpose and Limited Scope Audits
Some engagements cover a single area rather than the full accounts. Examples include a grant audit for a donor or a review of one balance. We agree the exact scope with you in writing before we start.
NGO and Donor-Mandated Audits
Many NGOs and projects must be audited because a funder or grant agreement requires it. We prepare audited statements that meet common donor and reporting conditions. We also explain what the funder is likely to expect.
Review and Agreed-Upon Procedures
A review gives a lower level of assurance than a full audit, at a lower cost. Agreed-upon procedures let you ask us to test only specific items and report the findings. These suit businesses that need limited comfort rather than a full opinion.
Tax Audit Support
If the Federal Board of Revenue selects your case for a tax audit, we help you respond. We organise records, prepare replies and deal with the notices on your behalf. This is support during an FBR audit, which is different from a statutory audit.
Who Needs an Audit in Pakistan
Not every business must be audited. The requirement depends mainly on your legal form and size.
Most companies registered with the SECP need an annual statutory audit under the Companies Act 2017. A private company with paid-up capital below one million rupees is generally not required to have its accounts audited, though it still files them with the SECP. These thresholds can change, so confirm your current position before you decide.
Sole proprietors and ordinary partnerships are not required to have a company audit. They may still need audited or reviewed accounts when a bank, investor or donor asks for them. NGOs and trusts are often audited because of grant or regulatory conditions.
Which Audit Do You Actually Need
Use this quick guide to identify the likely engagement, then confirm it with us.
- Annual corporate compliance under company law points to a statutory audit.
- An FBR notice selecting your case points to tax audit support.
- A lender asking for comfort over your accounts points to a financial statement audit or review.
- A funder's grant condition points to a donor-mandated audit with its own scope.
Statutory Audit vs FBR Tax Audit
People often confuse these two. They are separate processes under separate laws, and mixing them up causes real problems.
A statutory audit is a corporate requirement. It sits under the Companies Act 2017, is overseen by the SECP, and ends in an auditor's report on your financial statements. You arrange it yourself by appointing an eligible auditor.
An FBR tax audit is a tax matter. The Federal Board of Revenue selects a taxpayer under the Income Tax Ordinance 2001, mainly through Section 177 or Section 214C. The FBR examines your tax affairs, not your company law compliance.
| Feature | Statutory Audit | FBR Tax Audit |
|---|---|---|
| Governing law | Companies Act 2017 | Income Tax Ordinance 2001 |
| Regulator | SECP | FBR |
| Who starts it | The company | The FBR |
| Main focus | Financial statements | Tax affairs and returns |
| Outcome | Auditor's report | Audit findings and possible assessment |
You can need both, but satisfying one does not satisfy the other.
How the Audit Process Works
A statutory or financial statement audit usually moves through a set sequence. The steps below give you the shape of a typical engagement.
Engagement and planning.
We agree the scope and terms in an engagement letter, then plan the work.
Risk assessment.
We study your business and controls to find the areas that need most attention.
Fieldwork and testing.
We test transactions and balances and gather evidence to support our conclusions.
Review.
Senior staff review the work to confirm it meets the required standards.
Reporting.
We issue the auditor's report and discuss any findings with your management.
Our guide to the stages of a financial statement audit sets out each stage in more detail.
Getting Your Business Audit Ready
Preparation decides how smoothly an audit runs and how much it costs. A ready business shortens fieldwork and reduces back-and-forth.
Before the audit starts, aim to have these in order:
- Bank accounts reconciled to the ledger for the full period
- Sales, purchases and expenses supported by invoices and receipts
- A current fixed asset register with purchase and disposal records
- Inventory counted and valued, where stock is material
- Tax filings that agree with your accounting records
- Related-party transactions identified and documented
- Corporate records, including the SECP annual return, available
If your books are not yet at this standard, accurate accounting and bookkeeping services can prepare the underlying records first.
Common Issues Found in Audits
Certain problems appear again and again during audits of Pakistani businesses. Checking for them early prevents delays and awkward findings.
- Bank balances that do not reconcile to statements
- Expenses booked without supporting documents
- Receivables and payables left outstanding with no explanation
- Inventory records that do not match the physical count
- Depreciation applied inconsistently or incorrectly
- Differences between tax returns and the accounts
- Incomplete corporate or statutory records
None of these are unusual, and most are fixable before fieldwork. Finding them yourself is always cheaper than having the auditor raise them.
Documents and Information Required
The exact list depends on the engagement. The items below are the ones most audits in Pakistan rely on.
- Trial balance and general ledger for the period
- Bank statements and bank reconciliations
- Sales and purchase records with supporting invoices
- Fixed asset register and major purchase documents
- Inventory records and count details, where relevant
- Payroll records and employee details
- Income tax and sales tax records, including returns
- Corporate documents such as the SECP annual return
Well-organised records shorten the audit and reduce the fee.
What the Auditor's Report Tells You
The auditor's report is the main output of an audit. It states the auditor's opinion on your financial statements.
A clean, or unqualified, opinion means the statements give a true and fair view under the applicable framework. A qualified, adverse or disclaimer opinion signals specific issues or limits on the work. Banks, investors, donors and regulators read this opinion to judge how far they can rely on your accounts.
The Regulatory Framework We Work Under
Audit work in Pakistan follows a defined set of laws and standards. We apply them so your report holds up with regulators, banks and funders.
The Companies Act 2017 sets the statutory audit requirement, and the SECP oversees company compliance. The Act's Third Schedule sorts companies into public interest, large, medium and small, and that class decides which rules apply to you.
Audits follow the International Standards on Auditing as adopted for use in Pakistan by ICAP, the Institute of Chartered Accountants of Pakistan. Financial statements are prepared under the matching reporting framework, from full IFRS for larger companies down to simpler standards for small-sized entities, with IFAS applied to certain Islamic transactions.
Eligibility to audit also depends on size. ICMAP members may audit private companies with paid-up capital below three million rupees, while larger companies need an ICAP chartered accountant. Audits of public interest companies carry extra requirements, including oversight by the Audit Oversight Board, and some regulated entities must appoint a firm holding a satisfactory QCR rating from ICAP.
Industries and Clients We Serve
We work with businesses that need practical, reliable audit support rather than big-firm overhead. Our typical clients include:
- Private limited companies and single-member companies
- Small and medium-sized enterprises
- Startups preparing for funding or due diligence
- NGOs, trusts and donor-funded projects
- Trading, services and manufacturing businesses
We take on engagements that match our scope and the eligibility rules. Where a client needs a service we cannot provide, we say so.
What Affects Audit Fees in Pakistan
There is no single price for an audit. The fee reflects how much work the engagement actually takes.
The main factors are the size of your business, the volume of transactions and the condition of your records. Multiple locations, inventory counts and related-party dealings add time. Sector complexity and the scope you need also change the figure.
We quote after a short scoping discussion, once we understand your accounts and your deadline. You get a clear fee before any work begins.
Why Businesses Choose TaxConsultancy.pk
We keep the relationship direct and the process clear. You deal with people who explain the work in plain terms.
- A Pakistan-focused team that understands SECP and FBR requirements
- Audit, tax and corporate services handled under one roof
- A base in Rawalpindi and Islamabad, serving clients countrywide
- A transparent engagement letter and an agreed fee before work starts
- A named point of contact throughout the engagement
Common Questions Before Hiring an Auditor in Pakistan
Start Your Audit Engagement
Tell us about your company and what you need, and we will explain the right engagement for you. Businesses that need both corporate and tax support can also combine this with our taxation services.
- Phone: +92 336 5471170
- WhatsApp: Message our team
- Email: info@taxconsultancy.pk
- Office: 3rd Floor, AL Nawaz Arcade, next to Rawalpindi Urology Hospital, Murree Road, Rawalpindi
To discuss your requirements, contact our team.