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Checking Fake Audit Report Submission

BSEC may sign deal with ICAB on access to DVS

Staff Correspondent | Published: 23:11, Feb 20,2021

 
 

The Bangladesh Securities and Exchange Commission is likely to sign a memorandum of understanding with the Institute of Chartered Accountants of Bangladesh on access to the ICAB’s document verification system to check companies’ forged financial reports.

BSEC commissioner Shaikh Shamsuddin Ahmed told New Age that the securities regulator agreed in principle to sign a MoU with the ICAB to get access to the DVS.

BSEC officials would be able to verify through the system whether the audited reports submitted by the companies to the BSEC is authentic or not, he said.

Audit reports submitted to the BSEC will come under scrutiny if they are not available in the DVS database, they said.

The BSEC has recently declined initial public offering applications of a number of companies and also punished a number of listed companies for providing fake and distorted financial reports.

Market experts said that many defaulting companies had remained untraced.

So, investors especially the foreign ones do not believe in financial reports of the listed companies, which is one of the key reasons for the poor participation of the foreigners in the Bangladesh market, they said.

BSEC officials said that the move would bring back confidence of the investors in the financial reports disclosed by the listed and IPO intending companies.

Earlier on November 12, ICAB launched the DVS to check fake financial reports of corporate taxpayers and the National Board of Revenue signed a MoU with ICAB on access to the DVS.

The Financial Reporting Council under the finance ministry also on December 22 signed a MoU with ICAB on the use of the DVS.

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