SBP asks banks to submit report on internal control

KARACHI: The State Bank of Pakistan (SBP) has asked all commercial banks and development financial institutions (DFIs) to submit a detailed review report on Internal Control Over Financial Reporting (ICFR) for the quarter ended September 30, 2010.

In a circular issued on Thursday, the central bank asked banks and DFIs to submit the report by October 31.

According to the circular, the review report will be submitted by the CEO/president of the respective bank/DFI and will be approved by the audit committee or the board of directors.

Furthermore, the SBP said, as mentioned in the BSD Circular No 09 dated October 12, 2009, the statutory auditors of banks/DFIs instead of expressing opinion on the ICFR in annual financial statements, can submit to the Banking Surveillance Department of the State Bank, a “Long Form Report on ICFR” for the year ended December 31, 2010.

This report must reach SBP back by March 31, 2011, it added.

Published in the Express Tribune, June 11^th, 2010.