What is Form 28 SECP?

Form 28 SECP:

Form 28 SECP is a significant document mandated by the Securities and Exchange Commission of Pakistan (SECP) concerning the appointment of auditors by companies operating within the jurisdiction of Pakistan. This form serves as a formal notification to the SECP regarding the selection of auditors who will conduct the statutory audit of the company’s financial statements.

Key Components of Form 28 SECP:

  1. Company Information: The form includes details about the company, such as its name, registration number, registered office address, and other pertinent particulars required for identification.
  2. Auditor’s Information: Form 28 SECP also contains comprehensive information about the appointed auditors, including the name of the audit firm or individual auditor, their registration number, contact details, and any relevant professional qualifications.
  3. Auditor’s Consent: Along with the company’s submission of Form 28 SECP, auditors are typically required to provide their consent to act as the company’s auditors for the specified financial period.
  4. Effective Period: The form specifies the financial year for which the appointment of auditors is valid, ensuring clarity regarding the duration of the auditor’s engagement with the company.
  5. Signatures: Authorized signatories of the company, such as directors or company secretaries, are required to sign Form 28 SECP, confirming the accuracy and completeness of the information provided.

Importance of Form 28 SECP:

Form 28 SECP holds significant importance in the regulatory landscape of Pakistan’s corporate sector. Compliance with this form ensures transparency and accountability in financial reporting practices by facilitating the appointment of qualified and independent auditors to examine a company’s financial affairs. Moreover, timely submission of Form 28 SECP enables regulatory authorities to maintain up-to-date records of auditors appointed by registered companies, thereby enhancing the overall integrity of the financial reporting ecosystem.

What is the Purpose of SECP Form 28?

The purpose of SECP Form 28 is to facilitate the appointment of auditors by companies registered with the Securities and Exchange Commission of Pakistan (SECP). This form ensures compliance with regulatory requirements regarding the selection and engagement of auditors to conduct statutory audits of a company’s financial statements.

Key purposes of SECP Form 28 include:

  1. Appointment Notification: SECP Form 28 serves as a formal notification to the SECP regarding the selection of auditors by a company. It provides essential details about the appointed auditors, including their credentials and the period for which they are appointed.
  2. Regulatory Compliance: Companies in Pakistan are required to appoint auditors in accordance with legal and regulatory standards. SECP Form 28 helps ensure compliance with these requirements by documenting the appointment process and providing transparency to regulatory authorities.
  3. Verification of Auditor’s Eligibility: Before appointing auditors, companies must ensure that the selected auditors meet the eligibility criteria prescribed by the SECP. SECP Form 28 may require auditors to provide their registration details and other relevant information to verify their eligibility to conduct audits.
  4. Record-Keeping: SECP Form 28 facilitates the maintenance of accurate records related to auditor appointments. By documenting the details of auditor appointments, companies and regulatory authorities can track the history of auditor engagements and ensure that audits are conducted by qualified professionals.
  5. Enhancing Financial Reporting Integrity: The appointment of independent and competent auditors is essential for enhancing the integrity and reliability of financial reporting. SECP Form 28 helps promote transparency and accountability in financial reporting practices by ensuring that auditors are appointed in a proper and systematic manner.

Overall, SECP Form 28 plays a crucial role in the regulatory framework governing corporate governance and financial reporting in Pakistan by facilitating the appointment of auditors and promoting compliance with established standards and regulations.

Who Needs to File SECP Form 28?

According to legal requirements, SECP Form 28 must be submitted alongside Form 29. The Registrar will withhold approval of Form 29 if there are new appointments for directors or CEOs, making the filing of SECP Form 28 mandatory.

However, filing SECP Form 28 isn’t mandatory when submitting Form 29 unless there’s a new appointment for a director or CEO, whether through election or otherwise.

Filing Deadline for SECP Form 28

SECP Form 28 should be filed within 15 days of the appointment of a new director or CEO. In the event of director appointments through an AGM election, you may submit Form 28 alongside Form 29 during the Annual Return filing.

It’s essential to note that the filing deadline for the annual return is 30 days. Filing Forms 29 and 28 along with Form A may incur a late fee for SECP Form 28.

How to Submit SECP Form 28?

Submission of Form 28 can be done online or in hard copy. For online filing, you’ll enter the necessary information via the designated portal link. Required details for Form 28 include:

  • Full Name of the director or CEO
  • Father or Husband’s name
  • Designation within the company
  • Address
  • Occupation
  • Signatures

Documents Required with SECP Form 28

Unlike other forms, SECP Form 28 necessitates physical signatures from consenting directors or CEOs. Each director or CEO must physically sign the form beside their name, and the authorized signatory of the company will also sign it. After signing, a scanned copy of the form should be attached to the online submission.

Additionally, consent letters from incoming directors or CEOs addressed to the Board of Directors are necessary. These letters should be scanned and uploaded to the portal upon receipt by the company.

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