PCB sets requirement for SOEs to have Internal Audit section

The Privatization and Corporatization Board (PCB) has told government-owned companies to found a Risk Management Function.

As per the administration's circular sent today, in order for Internal Audit and Risk Management Function work to be done, a "Need Based Assessment" is to be introduced as soon as possible at companies that do not have such a function to ascertain required employee numbers. PCB has requested required employees for the aforementioned to be sought and to prioritize hiring technical employees.

The administration said that while the procurement guidelines of government-owned companies state how they should report to the PCB, the procurement guideline was reformed to include the procurement report be sent for an internal audit as well. 

The circular also states that along with quarterly reports, financial reports and relevant documents shared by companies to be submitted to PCB, all the aforementioned information needs to be submitted for an audit.

The PCB has told all companies to change the name of their Audit Committees to the "Audit and Risk Committee". The administration has also recommended that, with recommendations from company shareholders, a special risk committee can also be founded. 

Identification of compliance by companies to PCB's informed notices, guidelines and regulations, and an yearly compliance audit is to be submitted to the company board or relevant board committee, with the PCB requesting reforms to be made known to the administration.

PCB has given a deadline of 31st January to companies to make these changes.