Statutory Audit & Assurance
Independent audit aligned to IFRS and local regulatory regimes.
/ 01 — Industry focus
Manufacturing & industrial operations.
Supporting industrial businesses with audit, taxation, operational advisory, ERP implementation, internal controls and financial management — engineered for scale, efficiency and compliance.
/ 02 — Overview
Navigating operational complexities.
Manufacturing businesses operate in highly competitive and operationally intensive environments where efficiency, compliance, inventory controls and accurate financial reporting are critical. Our professionals understand the complexities of industrial operations and help businesses strengthen controls, improve reporting systems, optimise tax structures and support sustainable growth.
With experience across multiple industrial sectors, our team assists organisations in navigating operational challenges while improving financial visibility and decision-making.
How we support manufacturing
We help manufacturing organisations improve operational efficiency through structured financial management, internal controls, ERP advisory and risk-based audit approaches. Our professionals work closely with management teams to enhance reporting systems, streamline processes, strengthen governance and support strategic business decisions.
/ 03 — Capabilities
Our services for manufacturing.
Comprehensive solutions
Internal Audit & Risk
Risk-based internal audit and SOX-style control frameworks.
Cost & Operational Reviews
Diagnostics across production cost, yield and overhead recovery.
Tax Advisory & Compliance
Direct tax structuring, planning and FBR-facing compliance.
Sales & Indirect Tax
Sales tax, FED and customs advisory tailored to industrial flows.
ERP Advisory & Implementation
Selection, implementation and post-go-live optimisation support.
Financial Due Diligence
Buy-side and sell-side diligence for transactions and JVs.
Inventory & Controls
Stock verification, cycle counting and shrinkage controls.
Valuation & Feasibility
Business valuation, feasibility and capex appraisal studies.
Regulatory Compliance
SECP, SBP and sector-specific regulatory filings and reviews.
/ 04 — Regulatory framework
Manufacturing audit in Pakistan, in practice.
A statutory audit of a Pakistani manufacturer covers IAS 2 inventory valuation, IAS 16 plant and equipment, IFRS 15 revenue, and a deep review of sales tax compliance under the Sales Tax Act 1990, federal excise obligations and customs documentation on imports under the Customs Act 1969 — calibrated for the working-capital and supply-chain realities of industrial operations.
FederalSECP under the Companies Act 2017; FBR for income tax, sales tax (Act 1990), federal excise duty, customs (Customs Act 1969), and the Track & Trace System under SRO 250(I)/2019 for notified sectors.
ProvincialSindh Revenue Board, Punjab Revenue Authority, KP Revenue Authority and Balochistan Revenue Authority for sales tax on services consumed — transport, advertising, packaging, consultancy — and industrial estate authorities for site compliance.
Reporting standardsIFRS as adopted in Pakistan, with particular focus on IAS 2 (inventory), IAS 16 (PP&E), IFRS 15 (revenue), IFRS 16 (leases) and IFRS 9 (financial instruments and ECL on trade receivables).
Common audit findings
Where manufacturers trip.
- 01Cost absorption errors in standard-costing systems versus actual conversion costs.
- 02Slow-moving and obsolete inventory not impaired to net realisable value.
- 03Import valuation disputes and PCT misclassification under the Customs Act.
- 04Input-tax adjustment errors and section 8 blocked-input exposures.
/ 05 — Frequently asked
Questions we hear from manufacturers.
/ 01
What does a manufacturing audit in Pakistan typically cover?
A manufacturing audit in Pakistan covers IAS 2 inventory valuation, IAS 16 property, plant and equipment, IFRS 15 revenue recognition, IFRS 9 financial instruments, and a detailed review of sales tax compliance under the Sales Tax Act 1990, federal excise duty obligations, withholding taxes under the Income Tax Ordinance 2001, and customs documentation on imports under the Customs Act 1969.
/ 02
How is inventory valued for a Pakistani manufacturer?
Inventory is valued under IAS 2 at the lower of cost and net realisable value. Cost includes purchase price, conversion costs and other costs incurred to bring inventory to its present location and condition. Standard costing is acceptable if it approximates actual cost and is reviewed regularly. Slow-moving and obsolete inventory must be impaired with reference to current selling prices.
/ 03
What is the FBR Track & Trace System and who must comply?
Track & Trace, notified under SRO 250(I)/2019 and subsequent SROs, requires manufacturers of specified sectors — sugar, cement, tobacco, fertiliser and beverages — to affix tax stamps and UIM codes on every saleable unit so that production volumes are reported to FBR in real time. Non-compliance attracts seizure, penalties and supply restrictions.
/ 04
How does input vs output sales tax adjustment work?
Registered manufacturers pay sales tax at 18% on taxable supplies (output tax) and claim sales tax paid on inputs (input tax) against this liability, subject to section 8 restrictions of the Sales Tax Act 1990. Inputs not used in taxable supplies, certain blocked items, and tax paid more than six months earlier are not adjustable. The net amount is paid monthly through the Annexure-C return.
/ 05
What customs and import duty considerations apply to manufacturing?
Manufacturers importing raw materials and capital goods deal with customs duty, additional customs duty, regulatory duty, sales tax at import (section 3(3A)), and withholding income tax under section 148. PCT classification, valuation under section 25 of the Customs Act 1969, and SRO-based concessions for specific sectors are common audit risk areas where reclassification disputes arise.