FAQs and Instructions
Audit Firm Registration System (AFRS)
1. What is the Audit Firm Registration System (AFRS)?
The Audit Firm Registration System (AFRS) is the online system used by AOB to facilitate the online annual submission of Form A. AFRS can be accessed at //aob.gov.pk/afrs/
2. How Can I obtain a username and password for AFRS?
To register your audit firm on AFRS, create your account at //aob.gov.pk/afrs/
3. What should do I do if I forget my username and/or password?
To recover a forgotten password, click “Forgot Password?” at //aob.gov.pk/afrs/
Email: it@aob.gov.pk
5. Who must be registered with the AOB?
It’s a function of AOB to authorize persons to carry out audits of public interest companies (PIC) or who intend to carry out such audits and maintain a Register of such authorized persons under the SECP Act, 1997 (the Act) and AOB (Operations) Regulations, 2018 (the Regulations). A person shall not carry out an audit or seek an appointment as auditor of a PIC unless registered with AOB.
For AOB’s registration purposes, such persons must hold a valid certificate of practice under the Chartered Accountants Ordinance, 1961, be organized as a registered partnership under the Partnership Act, 1932, or as a sole proprietor, meet requirements for the appointment of auditor of a company under the Companies Act, 2017 and have a satisfactory rating of quality control review (QCR) under the Quality Control Review Framework approved by AOB for QCR which is adopted by ICAP. Pursuant to requirements as laid out in the Act, the Regulations, QCRF, and conditions of registration, a person authorized to carry out an audit must carry out audit engagements in accordance with the International Standards on Auditing (ISAs) and other applicable requirements, including code of ethics, laws, other professional pronouncements, and standards applicable in Pakistan.
6. How can my firm apply for registration with the AOB?
An audit firm shall apply to QAB seeking a letter of recommendation to get registration with AOB by submitting to QAB an application as per Form A specified in Schedule 2 to AOB (Operations) Regulations, 2018.
Within fifteen days of receiving the “Letter of recommendation” from QAB, the audit firm shall submit to AOB Form A as specified in Schedule 2, the accompanying Letter of Recommendation, a declaration on accuracy and completeness of all information provided as specified and such other information and documents in support of the information submitted in Form A as may be required by AOB, together with the specified registration Fee as set out in Schedule 3, in order to obtain registration under the Act. The Letter of Recommendation shall be in accordance with the Form set out in Schedule 4 of AOB (Operations) Regulations, 2018.
No audit firm shall be appointed as auditors of a public interest company nor shall sign an audit report on financial statements of a public interest company unless it is registered with AOB.
In case the firm has no PIC audit clients but intends to carry out an audit of public interest company in the future, it shall register itself with AOB prior to its appointment as auditor of such company.
8. Do the firms need to submit Form A annually?
To maintain registration with AOB, every registered audit firm shall regularly file Form A as specified in Schedule 2 to the AOB (Operations) Regulations, 2018, by 31 March and pay the annual Fee as specified in Schedule 3 to the AOB (Operations) Regulations, 2018 for each calendar year by 30 April.
9. How do I process a change in the name of the Audit Firm?
Yes, if subsequent to the registration or after filing the annual Form A, there is a change in the name of an audit firm, the authorized Partner or the Partner concerned of the audit firm shall:
(a) Fill out a revised Form A in Schedule 2 to the Audit Oversight Board (Operations) Regulations, 2018 and submit it to the Quality Assurance Board (QAB) to obtain a new Letter of Recommendation (LOR) within forty-five (45) days from the date of change;
(b) the new Letter of Recommendation along with the application for change of name, original Certificate of Registration previously issued, and such other documents in support of the information submitted in revised Form A as may be required by AOB, be furnished to AOB within fifteen (15) days of receiving the recommendation of QAB; and
(c) AOB upon acceptance of new Letter of Recommendation and such other information as may be required, shall update the Register and, in case of a change of name of the audit firm, issue a new Certificate of Registration stating therein clearly the former name of the audit firm along with the new name.
10.How can I add/remove audit partners to update the register of audit firms?
If, subsequent to the registration or after filing the annual Form A, there is a change in Audit Partner(s), the authorized Partner or the Partner concerned of the audit firm shall:
(a) Fill out a revised Form A in Schedule 2 to the Audit Oversight Board (Operations) Regulations, 2018 and submit it to the Quality Assurance Board (QAB) to obtain a new Letter of Recommendation (LOR) within forty-five (45) days from the date of change;
(b) the new Letter of Recommendation along with the application for change and such other documents in support of the information submitted in revised Form A as may be required by AOB, be furnished to AOB within fifteen (15) days of receiving the recommendation of QAB, AOB upon acceptance of new Letter of Recommendation, receipt of applicable Fee as specified in Schedule 3 of the AOB (Operations) Regulations, 2018 (in case of addition of audit partner(s)) and such other information as may be required, shall update the Register.
If subsequent to the registration or after filing the annual Form A, the information in Form A changes in any respect, except the name of the audit firm and its composition (e.g. change in address), the registered audit firm shall file within fifteen (15) days of the occurrence of such change, a revised Form A (change Request form) with AOB and AOB shall, upon receipt of revised Form A and other relevant, supporting document(s), as may be required will amend the particulars of the said audit firm in the Register.
To request changes, send an email at info@aob.gov.pk
Yes, in order to voluntarily deregister itself from the Register, an audit firm shall make an application for voluntary registration to AOB. The audit firm shall submit a written undertaking that they are not holding the office as auditors, and whenever they intend to audit PICs, it shall first ensure that it is registered with AOB. For details refer to Regulation 6A of the Audit Oversight (Operations) Regulations, 2018.
13. How much is the registration fee of audit firms?
The fee for an audit firm seeking registration is Rs. 13,500 per sole proprietor/auditing partner. The fee structure is defined in Schedule 3 to Audit Oversight Board (Operations) Regulations, 2018.
The Finance department of the AOB sends the invoice along with customized bank deposit slip to all registered audit firms and the PICs. The fee can be deposited into any Bank Al Habib Limited branch using the said deposit slip.
15. How much is the annual supervision fee for Public Interest Companies?
Annual supervision fees structure for the Public Interest Companies is defined in Schedule 3 to Audit Oversight Board (Operations) Regulations, 2018.
16. Can AOB de-register or suspend my registration even after I have been registered?
Yes, Section 36T of the SECP Act, 1997 provides that AOB on its own motion or on the recommendation of QAB, may order deregistration of the audit firm from the register maintained under Section 36W. For this purpose, AOB shall rely on the work and inspections carried out by QAB or its own inspection.
Moreover, an audit firm can also make an application for voluntary deregistration under Regulation 6A of the AOB (Operations) Regulations, 2018
Yes, you are required to pay the applicable fee separately for each audit firm in which you are an audit partner.
18. What constitutes ‘audit services fee’?
This includes the fee with respect to all the services required to be rendered under the applicable laws by an audit firm in the capacity of statutory auditors. For example, audit of standalone and consolidated financial statements, review of half-yearly financial information and compliance with code of corporate governance regulations/rules, and other certifications, etc. It also includes out-of-pocket and applicable taxes.
Public Interest Companies (PICs)
1. What are public interest companies (PICs)?
“Public Interest Company” shall mean a company that falls under the criteria of “Public Interest Company” as laid down in the Third Schedule to the Companies Act, 2017 (XIX of 2017).
2. I have lost the deposit slip sent by AOB. How can I pay the due fees?
In case the customized bank deposit slip is lost, the payment instrument can alternatively be sent to AOB head office. The payment instrument shall also be accompanied by a letter addressed to the finance department stating the particulars of the payment.
3. How much is the annual supervision fee for the PICs?
Annual supervision fees structure for the PICs is defined in Schedule 3 to Audit Oversight Board (Operations) Regulations, 2018.
Instructions to complete Form A
Please follow the below instructions to complete the submission of Form A