PEF Audit Department was established in year 2010 with an aim to provide an independent
unbiased opinion regarding operational and financial functions of the Foundation.
Prime focus of Audit Department is to provide transparent, efficient and effective
utilization of public money while abiding by all applicable Laws, Rules & Regulations
governing the Foundation. These goals are achieved through four different types
of Audits carried out in PEF:
- Financial/ external Audit by Chartered Account Firm as per PEF Act
- Audit by Auditor General of Pakistan
- Internal Audit
- Any other audit including donor’s reviews/ special audits
A Financial Audit is the examination of an organization's financial statements and
accompanying disclosures by an independent auditor. The result of this examination
is a report by the auditor, attesting to the fairness of presentation of the financial
statements and related disclosures. The purpose of a financial audit is to add credibility
to the reported financial position and performance of the Foundation.
Clause 10(3) of PEF Act 2004 stipulates as “The accounts of the Foundation shall
be maintained in such form and manner as may be prescribed and shall be audited
by an auditor, to be appointed by the Government, being a person who is a Chartered
Accountant within the meaning of the Chartered Accountants Ordinance, 1961 (X of
At the close of each financial year, financial audit is carried out by a renowned
Chartered Accountant Firm and annual financial statements of the Foundation along
with Auditor’s Report are placed before the Board through Finance Committee.
Financial auditors are responsible to express an opinion on the financial statements
of the Foundation. They conduct audit in accordance with International Standards
on Auditing as applicable in Pakistan. These standards require that auditors comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement.
An unqualified (clean) report of the Foundation has been issued by Auditors for
FY 2013-14. M/s Rahman Sarfaraz Rahim Iqbal Rafiq Chartered Accountants has been
selected to conduct financial audit for FY 2014-15.
Annual AGP Audit is conducted by Commercial Audit Section of Auditor General of
Pakistan which is an independent Department of Government to examine operational
and financial activities performed in a financial year.
Commercial Audit issues Audit Inspection Report having observations for management
response after which Draft Audit Paras are prepared for discussion/ decision of
Special Departmental Accounts Committee (SDAC) chaired by Secretary/ Additional
Secretary, School Education Department. Draft Audit Paras which remain unsettled/
pending in SDAC are printed in Audit Report on Public Sector Enterprises for discussion/
decision of Public Accounts Committee.
Internal Audit provides an independent, objective assurance and consulting activity
designed to add value and improve operations which helps to accomplish objectives
by bringing a systematic, disciplined approach to evaluate and improve the effectiveness
of risk management, control, and governance processes.
Internal audit activity of the Foundation is outsourced by the Board to a renowned
Chartered Accountant Firm. Previously M/s Ernst & Young Ford Rhodes Sidat Hyder
was hired to conduct internal audit for the year 2011-13, then onwards from 2013
M/s Grant Thornton Anjum Rehman Chartered Accountants has been selected with the
approval of BOD for quarterly Internal Audit of Programs & Support Departments as
per Internal Audit Plan.
Any other audit including donor’s reviews/ special audit of the Foundation is conducted
as and when required by the Government/ Donors/ BOD/ Executive Management. World
Bank and Department for International Development (DFID) continuously deploy renowned
Chartered Accountant Firms to monitor the performance of Foundation.
Last special audit activity of the Foundation was carried out by Commercial Audit
Section of Auditor General of Pakistan for FY 2004-05 to 2010-11. M/s Ernst & Young
Ford Rhodes Sidat Hyder has been selected recently for the conduction of Special
Audit Assignment to comply with the requirements of Government and BOD.
Status update of Audit activities in PEF:
Type of Audit
Financial/ external Audit
Completed upto FY 2014-15
Audit by Auditor General of Pakistan
Completed upto FY 2014-15
Completed upto quarter ended December 31, 2015