The Securities and Exchange Commission of Pakistan (SECP) and the Audit Oversight Board (AOB) signed an MOU on Friday at the SECP head office in Islamabad.

The statement of the SECP said that . Zafar ul Haq Hijazi, SECP Chairman, and Dr. Tariq Hassan, AOB Chairman, signed the MOU on behalf of their respective organizations. The AOB is a body formed under the 1997 SECP Act to regulate the audit profession in the country.

Its functions, among many others, include registration and de-registration of audit firms, which intend to carry out audit of public interest companies, oversight and review of the Quality Assurance Board of the Institute of Chartered Accountants of Pakistan (ICAP) etc.

Effective oversight of the auditing profession and regulation of corporate entities are related roles of the two independent regulatory bodies. Cooperation and coordination between the entities will enable effective discharge of their respective functions. The MOU establishes a framework for collaboration, coordination and sharing of information in areas of common regulatory and supervisory interests.

It also provides for administrative coordination and facilitation by the SECP for an interim period. Expressing his confidence in the AOB and its leadership, Hijazi said that the AOB should expedite the commencement of its operations and become a leading audit regulator of international standard. Dr. Hassan thanked the SECP for its role in the establishment and operationalization of the AOB.