How to Get Audited Financial Statements for a Company in Pakistan

Audited financial statements are sometimes treated as though they were a document that can simply be requested, similar to a certificate issued on demand. In practice, they are the outcome of an audit carried out over several weeks by an independent Chartered Accountant, based on a company's actual financial records. Understanding what that process involves helps a company prepare properly rather than being caught off guard by delays.

Preparing the underlying financial records

Before an audit can begin, a company needs reasonably organised books, including bank statements, sales and purchase records, payroll records, a fixed asset register, and prior year financial statements where applicable. Weak or incomplete bookkeeping is the most common cause of delay in this process, often extending timelines well beyond what companies initially expect.

Confirming whether an audit is required

Not every company is required to undergo a full audit. Companies meeting SECP's small company criteria may instead be permitted to rely on board approved financial statements accompanied by an affidavit, rather than a formal audit. This determination should be made before proceeding further, since it changes the entire process that follows.

Appointing a Chartered Accountant in practice

The auditor must be independent of company management and registered with the Institute of Chartered Accountants of Pakistan. Appointment is typically documented through a board or shareholder resolution, along with an engagement letter setting out the scope of work, timeline and fees.

Providing access and documentation for fieldwork

Once engaged, the auditor requests supporting documents and may conduct site visits, physical verification of assets, or send confirmation requests to banks, debtors or creditors. The scope of this stage depends on the size and complexity of the company's operations.

Responding to audit queries

Nearly every audit generates queries during fieldwork, such as missing invoices, unreconciled balances or unclear related party transactions. Prompt responses at this stage keep the audit on schedule, while delayed responses are the most frequent cause of extended timelines.

Receiving draft financial statements and the management letter

The auditor issues draft financial statements along with a management letter, which typically notes control weaknesses or recommendations. This letter falls outside the formal audit opinion but is often useful for improving internal processes.

Finalising and signing

Once outstanding matters are resolved, the auditor issues the final signed audit report. The financial statements then proceed to board approval and are signed by the chief executive and at least one director, in accordance with the Companies Act 2017.

Filing where required

Listed companies are required to file audited financial statements with the SECP registrar through its e-service. Requirements for private companies depend on their size classification, and should be confirmed rather than assumed.

For related matters, you may also want to read our guides on corporate law in Pakistan, company audit requirements, and company registration.