The Financial Reporting Council under the finance ministry on Tuesday signed a memorandum of understanding with the Institute of Chartered Accountants of Bangladesh on the use of the document verification system.
The memorandum was signed at a ceremony held at the ICAB office in the capital to ensure transparency and accountability and strengthen the monitoring and review system of audited financial statements.
FRC chairman Hamid Ullah Bhuiyan and ICAB president Muhammad Farooq signed the agreement on behalf of their respective sides.
Hamid said, ‘If the DVS is effective, production of two or three types of financial statements will stop and a culture of producing a single set of audited financial statement will be established.’
It will be possible for the FRC to easily verify authenticity and fairness of companies’ audited financial statements, he said.
He also said that ICAB and the FRC would work together in future to strengthen the auditing system, which would help to expedite the development of the country.
Muhammad Farooq said, ‘The DVS has already become quite acceptable among the business community and other regulatory bodies.’
ICAB introduced this document verification system to curb the malpractice of producing multiple financial statements and to establish transparency and accountability in the country’s accounting system, the ICAB president said.
In a presentation on the DVS, ICAB vice-president Muhammed Forkan Uddin explained how the DVS works to verify audited financial statements and ensure transparency of financial statements and accountability of auditors.
He said that ICAB’s registered auditors signed 16,000 financial statements every year while 46,000 financial statements were submitted to the Register of Joint Stock Companies.
Asked about who signed the remaining 30,000 reports, he said that these companies now would not be able to commit audit fraud now that the DVS was in operation.
As a result, the government’s revenue will increase and the country’s economy will become stronger, he added.
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