SECP to Revamp Cost Audit Framework with ICAP/ICMAP Input

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) launched a pivotal Consultation Paper in January 2025 to overhaul the cost audit framework, sparking extensive stakeholder input and consultations in Lahore and Karachi that exposed the current system as overly compliance-driven with minimal practical value.

A critical follow-up session convened on October 27, 2025, at the SECP Head Office, chaired by the SECP Chairperson and attended by heavyweights from the Institute of Chartered Accountants of Pakistan (ICAP), Institute of Cost and Management Accountants of Pakistan (ICMAP), Ministry of Industries and Production (MoI), and Competition Commission of Pakistan (CCP).

The discussions zeroed in on harmonizing the cost audit regime with international standards and amplifying its regulatory relevance. ICAP and ICMAP committed to a comprehensive review, delivering recommendations within three weeks on cost accounting statement formats, audit scope, and filing mechanisms with sectoral regulators.

The objective: forge a streamlined cost audit framework that guarantees transparency, eliminates reporting duplication, and champions ease of doing business in Pakistan.

The SECP reaffirmed its consultative reform approach, ensuring the framework balances regulatory imperatives with business imperatives.