In Pakistan, companies are required to appoint auditors if they meet certain criteria. According to the Companies Act, 2017 of Pakistan, a company must appoint an auditor if:
- It is a listed company, or a company that has offered its securities to the public.
- It is a private company that has issued debentures, or bonds, to the public.
- It is a private company that has more than 50 shareholders, or more than 50 members if it is a cooperative society.
- It is a public company, or a company that has more than seven members and is not a private company.
In addition to these requirements, there are certain circumstances in which a company may be required to appoint an auditor even if it does not meet the above criteria. For example, the Securities and Exchange Commission of Pakistan may require a company to appoint an auditor if it is engaged in certain types of business activities, or if the company’s financial statements are not prepared in accordance with the Generally Accepted Accounting Principles.