ZCZC
BSS-32
FRC-MoU-ICAB
‘Production of multiple financial statements of companies to be stopped’
DHAKA, Dec 22, 2020 (BSS) – Chairman of Financial Reporting Council (FRC) Hamid Ullah Bhuiyan today said if the Document Verification System (DVS) becomes effective, the production of two or three types of financial statements will be stopped.
The FRC Chairman said this at an MoU signing ceremony today.
With a view to ensuring transparency and accountability and strengthening the monitoring and review system of the audited Financial Statements, the FRC under the Ministry of Finance, signed an MoU regarding the use of DVS, with the Institute of Chartered Accountants of Bangladesh (ICAB) at its Auditorium today.
FRC Chairman Dr. Md. Hamid Ullah Bhuiyan, and ICAB President Muhammad Farooq signed the MoU on behalf of their respective sides, said a press release.
With the signing of the MoU, the main objective of the FRC — monitoring the financial statements — will be fulfilled. It will be possible for FRC to easily verify the true and fair view of these companies audited financial statements; and a culture of producing single set of audited financial statement will be established.
Listed companies are accounted for only 9 percent of the country’s GDP, which is very low. “If companies submit properly audited financial statements, the NBR’s revenue will increase even more,” Hamid further said.
He also said that ICAB and FRC will work together in future to strengthen the auditing system, which will help to expedite the development of the country.
ICAB President Muhammad Farooq said, DVS has already become quite acceptable to the business community and other regulatory bodies.
He said ICAB has provided trainings to CA firm representatives to make DVS effective. It will be effective in making the accounting system acceptable and reliable, he commented.
“ICAB introduced this document verification system to curb malpractice of producing multiple financial statements and to establish transparency and accountability in the accounting system of the country,” said ICAB president.
In a presentation on DVS, ICAB Vice President Muhammed Forkan Uddin explained how DVS works for authenticating the audited Financial Statements and ensure transparency of financial statements and accountability of the auditors.
He said, ICAB’s registered auditors sign 16,000 financial statements every year while 46,000 financial statements are submitted to the Register of Joint Stock Companies (RJSC).
ICAB President for 2021 Mahmudul Hasan Khusru, Council Member and Past President ICAB Kamrul Abedin also spoke while Shubhashish Bose, Chief Executive Officer (CEO) of ICAB made the closing remarks.
BSS/PR/GM/ARS/1755 hrs