SECP seeks stakeholder consultation on cost audit

January 15, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has invited stakeholders to provide feedback on the Cost Audit Regime in Pakistan through a newly published consultation paper.

This initiative aims to evaluate the effectiveness of the Companies (Maintenance and Audit of Cost Accounts) Regulations, 2020, and explore potential improvements aligned with industry practices and requirements.

The consultation paper highlights the role of cost audits in enhancing transparency, operational efficiency, and accountability within the corporate sector, according to the press release issued today.

It reviews the existing regulatory framework, international practices, and the current use of cost audit reports in Pakistan.

The paper also outlines several key considerations and poses targeted questions to stakeholders for feedback.

Currently, the Cost Audit requirement is limited to only five industries.

The stakeholder consultation seeks feedback on whether to expand or restrict this to specific industries, address challenges and potential solutions, implement cost accounting standards and an audit framework, and determine the public disclosure or confidentiality of cost audit reports.

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