Audit Check

The securities watchdog has issued tough guidelines on the role of auditors and non-audit services, which will be made compulsory for listed firms from next April.
Listed firms will also be required to rotate their auditors every three years from 2006. rn

rnThe guidelines focus on two areas i.e. audit of listed companies and audit committeesof quoted firms. rn

rnThe scope of auditincludes, the qualifications, appointments, powers and remuneration of auditors, audit partner rotation, conflict of interest, independence of auditors, disclosure requirements, financial reporting, restricted and permissible non-audit services which should be practiced by the External Auditor, SEC Chief, Palitha Silva Gunawardene said Wednesday.rn

rnGuidelines for audit committees spells out its composition, objectives, powers and duties of a listed firm. These guidelines are supplementary to all applicable laws and regulations in Sri Lanka. rn

rnThe changes will be included in the Colombo Stock Exchanges listing rule