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Statutory & Special Audits
Mandated and special-purpose audit engagements for ministries, departments and public sector entities.
/ 05 — Industry focus
Government & public sector.
Independent audit, assurance, advisory and compliance services aligned with public sector governance, accountability and regulatory requirements.
/ 02 — Overview
Transparency, governance & accountability.
Governance
Accountability
Transparency
/ 05 SectorIndependent. Accountable.
Government institutions and public sector organisations operate within complex regulatory and accountability frameworks that require transparency, governance and effective financial oversight. Our professionals have extensive experience supporting public sector entities through audit, compliance, advisory and risk management assignments.
We assist organisations in strengthening governance frameworks, improving operational efficiency and enhancing accountability through practical and transparent advisory solutions.
How we support government organisations
We work with public sector institutions to improve financial management, strengthen internal controls, enhance reporting systems and support compliance with regulatory requirements — combining technical depth with a strong understanding of public sector environments and stakeholder expectations.
/ 03 — Capabilities
Our services for government.
Comprehensive solutions
/ 02
Internal Audit
Risk-based internal audit aligned to public sector governance and accountability frameworks.
/ 03
Compliance Reviews
Independent reviews against PPRA, PFM Act and sector-specific regulatory frameworks.
/ 04
Risk Management Advisory
Enterprise risk identification, assessment and mitigation across departments and programmes.
/ 05
Financial Management Advisory
Budgeting, reporting and treasury advisory for public sector finance functions.
/ 06
Process Improvement
Re-engineering operational workflows for efficiency, transparency and citizen impact.
/ 07
Procurement Reviews
Independent reviews of procurement processes against PPRA rules and value-for-money principles.
/ 08
ERP & Systems Advisory
Selection and implementation support for financial and ERP systems in public institutions.
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Feasibility Studies
Independent feasibility and impact studies for public infrastructure and programme investments.
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Governance & Policy Advisory
Board, committee and policy advisory to strengthen institutional governance frameworks.
/ 04 — Regulatory framework
Public sector audit in Pakistan, in practice.
Audit and advisory for Pakistani public sector institutions covers engagements aligned to ISSAI and AGP standards, the Public Finance Management Act 2019, PPRA procurement rules, IFRS and Cash Basis IPSAS reporting, and SECP requirements for autonomous bodies — calibrated for the governance and accountability expectations of public institutions.
FederalAuditor General of Pakistan under the AG's Ordinance 2001; PFM Act 2019 for federal entities; PPRA Rules 2004 for procurement; SECP for autonomous bodies and public sector companies; FBR for exemption validation under section 49 and the Second Schedule.
ProvincialProvincial PFM Acts (Punjab 2020, Sindh, KP), provincial PPRAs (PPPRA, SPPRA, KPPRA, BPPRA), provincial audit departments, and finance acts notified annually with each provincial budget.
Reporting standardsCash Basis IPSAS and the New Accounting Model for federal and provincial accounts; IFRS as adopted in Pakistan for autonomous bodies and SOEs; ISSAI for AGP audits and ISA for chartered-firm engagements.
Common audit findings
Where public sector entities trip.
- 01PPRA procurement non-compliance — unadvertised tenders, post-award scope changes.
- 02Inadequate documentation of tax exemption claims under section 49 or Second Schedule.
- 03Weak segregation between taxable and exempt revenue streams in autonomous bodies.
- 04Re-appropriations and supplementary grants without PFM Act-compliant approvals.
/ 05 — Frequently asked
Questions we hear from public sector clients.
/ 01
Who audits public sector institutions in Pakistan?
Government entities are primarily audited by the Auditor General of Pakistan (AGP) under the Auditor-General's Ordinance 2001 and the Constitution of Pakistan. Autonomous bodies, state-owned enterprises and public sector companies incorporated under the Companies Act 2017 also engage chartered accountancy firms for statutory audit, with appointments often subject to AGP concurrence and SECP requirements.
/ 02
What is the Public Finance Management Act and how does it affect audits?
The Public Finance Management Act 2019 governs federal budgeting, accounting and financial reporting. Audits of federal entities test compliance with the Act's requirements around appropriations, supplementary grants, re-appropriations, internal controls, and cash management. Provinces have parallel PFM Acts (Punjab 2020, Sindh, KP) that apply at the provincial level.
/ 03
How is procurement compliance tested in a government audit?
Procurement is tested against the Public Procurement Regulatory Authority (PPRA) Rules 2004 and PPRA-issued SROs. Auditors examine procurement plans, advertising of tenders, evaluation criteria, technical and financial scoring, contract award, and post-award amendments. Provincial Procurement Regulatory Authorities (PPPRA, SPPRA, KPPRA, BPPRA) apply equivalent rules at provincial level.
/ 04
Which standards apply to public sector financial statements?
Federal and provincial government accounts follow the New Accounting Model and Cash Basis IPSAS as adopted by the AGP. Public sector companies and autonomous bodies prepare IFRS-based financial statements under the Companies Act 2017. Audit work follows International Standards of Supreme Audit Institutions (ISSAI) for AGP engagements and International Standards on Auditing (ISA) for chartered-firm engagements.
/ 05
Are autonomous bodies and SOEs tax-exempt in Pakistan?
Income of federal and provincial governments is generally exempt under section 49 of the Income Tax Ordinance 2001. Autonomous bodies, statutory authorities and public sector companies are taxable unless specifically exempted via the Second Schedule. Documentation of exemption status, SROs relied upon, and clear segregation of taxable versus exempt revenue streams are common audit focus areas.