ISLAMABAD: The Federal Board of Revenue (FBR) will refer audit firms for inspection by the Audit Oversight Board in cases where audited accounts of companies are not reflecting accurate sales/purchases/sales tax liability.
From July 1, 2025, the Chief Commissioners Inland Revenue have been given powers to refer audit firms to the Audit Oversight Board for inspection purposes.
Both officials of the Securities and Exchange Commission of Pakistan (SECP) and the FBR had clarified that the inspection would not be done by the tax officials, but the Audit Oversight Board would do the necessary job.
The new legislation has empowered Audit Oversight Board to monitor audit firms, involving Chief Commissioners in referring cases to the Oversight Board and ensuring prior notice is issued before inspections.
According to the Finance Act 2025, where in case of a registered person, whose accounts are subject to audit under the Companies Act, 2017, Chief Commissioner Inland Revenue has reason to believe that the audited accounts do not reflect the true and fair view of sales and purchases and related sales tax liability, he or she may with the approval of the Board, refer the audit firm, who has issued audit certificate to that registered person, for inspection to Audit Oversight Board, it added.
Copyright Business Recorder, 2025
