SECP LLP Audit Requirements 2026 – Complete Compliance Guide
The SECP LLP Audit Requirements introduced through a draft notification aim to enhance financial transparency and regulatory oversight for Limited Liability Partnerships registered under the Limited Liability Partnership Act, 2017. These requirements will become effective from 1 July 2026 and are primarily based on the annual turnover of an LLP.
Under the new SECP LLP Audit Requirements, qualifying LLPs must prepare financial statements in accordance with prescribed accounting frameworks and submit audited accounts to the Registrar within a defined timeframe.
Turnover-Based SECP LLP Audit Requirements
The SECP has categorized LLPs into three turnover slabs, each with specific reporting and audit obligations under the SECP LLP Audit Requirements:
LLPs with Turnover Exceeding PKR 1 Billion
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Accounting Framework: International Financial Reporting Standards (IFRS)
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Audit Requirement: Mandatory audit under International Standards on Auditing (ISA)
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Filing Deadline: Within 150 days of financial year-end
LLPs with Turnover Between PKR 500 Million and PKR 1 Billion
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Accounting Framework: IFRS for Small and Medium-sized Entities (SMEs)
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Audit Requirement: Mandatory audit
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Filing Deadline: Within 150 days of financial year-end
LLPs with Turnover Below PKR 500 Million
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Accounting Framework: AFRS for Small-Sized Entities
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Audit Requirement: Not required
Filing Deadline Under SECP LLP Audit Requirements
All LLPs falling within the audit threshold must file their audited financial statements within 150 days from the close of the financial year. This timeline allows SECP to ensure timely compliance and effective monitoring under the SECP LLP Audit Requirements.
Penalties for Non-Compliance
Failure to comply with the SECP LLP Audit Requirements may result in:
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LLP penalty: up to PKR 25,000
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Daily default fine: PKR 500 per day
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Designated partner penalty: up to PKR 2,000 per partner
Why Early Compliance Matters
LLPs should proactively assess their turnover, adopt the applicable IFRS framework, and appoint auditors in advance. Early preparation will ensure smooth compliance with the SECP LLP Audit Requirements and help avoid unnecessary penalties.
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