Powers and duties of Auditors

2024 CLC 885 LAHORE-HIGH-COURT-LAHORE Judicial Precedent

S. 62Nomination papers, scrutiny ofReturning OfficerPowers and dutiesScope

Primary duty of Returning Officer is to ensure that no person who by law is not eligible to contest elections is ousted from the electoral process at the very initial stage of scrutiny under S.62 of the Election Act, 2017

While scrutinizing the nomination papers the Returning Officer must make a just, fair and unbiased assessment about the credentials of the candidate for making a decision that he is qualified or not to contest the elections.

2014 CLD 330 SECURITIES-AND-EXCHANGE-COMMISSION-OF-PAKISTAN Judicial Precedent

Ss. 255 & 260Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33Irregularities in the accounts of the companyPowers and duties of AuditorsNon-compliance of relevant legal provisions by auditorAuditors, audited the accounts of the company for relevant year and issued an unqualified report

Enforcement department, examined the accounts of the company to determine, whether the report of the auditors pertaining to relevant year had been made in conformity with the requirements of S.255 of the Companies Ordinance, 1984

Detailed scrutiny of the accounts had revealed certain irregularities

Company had conceded the failure to observe the non-disclosure of relevant information, basis and specific accounting policies; and requested for taking a lenient view

Commission, after carefully considering the submission and all facts and circumstances of the case, found that provisions of S.255 of the Companies Ordinance, 1984 had been violated, and in exercise of powers under S.260(1) of the Companies Ordinance, 1984, imposed a fine of Rs.10,000 on the appellant, who had filed present appeal

Auditors had conceded the default of failure to file the cash flow statement; and statement of charges in equity with the accounts, and had pleaded that the act was unintentional

Role of Auditors was critical in order to ensure that the financial accounts presented were true and fair

Auditors had to act in a professional manner, and their duty towards the shareholder and stakeholders should be that of a skilled professional

Failure to submit the revised report to the Commission had shown that the act of the company was wilful

Commission had already taken a lenient view in the matter by imposing a penalty of Rs.10,000

No reason being available to interfere with the impugned order, appeal was dismissed in circumstances.