The Financial Express

Many auditors ‘flout reporting rules’

23 entities get ICAB awards for audit reports

| Updated: November 27, 2020 18:51:18

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Speakers at an event on Thursday said many auditors often violate the rules and regulations of financial reporting and some companies prepare two financial statements with an ulterior motive.

They were speaking at an award-giving ceremony in the city.

Twenty-three listed and non-listed financial organisations received '20th ICAB National Award' for excellent performance in presenting their annual reports for the last year (2019) at the event on the day.

The Institute of Chartered Accountants of Bangladesh (ICAB) awarded them in 12 different categories including public banks, private banks, financial services, manufacturing, insurance, services sector, communication and information technology, NGOs, agriculture, public entities and diversified holdings.

Among the winners, IDLC Finance Limited became the overall winner and 18 entities received Certificates of Merit from the organiser for securing a better score.

Commerce Minister Tipu Munshi, along with other guests, handed over the accolades to the representatives of winning entities at a ceremony organised by the ICAB at a city hotel on Thursday evening. Commerce Secretary Dr Md. Jafar Uddin and Chairman of the Financial Reporting Council (FRC), Bangladesh Dr Md. Hamid Ullah Bhuiyan attended the ceremony as the special guests.

ICAB President Muhammad Farooq FCA made the opening remarks.

Chairman of the review committee for published accounts and reports of the council-ICAB Mohammed Humayun Kabir FCA spoke on the occasion among others.

In his speech, Commerce Minister Tipu Munshi said since its establishment, ICAB has relentlessly been working to ensure integrity, transparency, accountability and bringing good governance in financial reporting of various entities operating in Bangladesh.

"The chartered accountants are not only dealing with the conventional area of accounting, taxation, auditing and management consultancy services; they are now involved in overall strategic business planning and its effective implementation for business growth and overall economic development of Bangladesh," the minister said.

Auditing professionals are now a very vital part of financial and macroeconomic management, the minister added.

Dr Md. Jafar Uddin urged the auditors to ensure their professionalism so that organisations can perform better.

Mr Hamid Ullah Bhuiyan said good financial reporting is a must for ensuring success for a corporate organisation alongside efficiencies in other fields of management. However many auditors often violate the rules and regulations of the financial reporting, he observed.

"Some companies prepare two financial statements, one showing less profit for taxation purposes, and another doctored report for availing loan from banks," he said.

ICAB President Muhammad Farooq said the role of ICAB is to promote, enhance and improve the framing of the financial statements and reports to reflect fair views of the entities to safeguard the interest of the investors, government, stakeholders and other user groups.

"The objective of the ICAB National Awards for Best Presented Accounts and Reports to help promote transparent reporting and adequate disclosures, through application of accounting/financial reporting and auditing standards, thereby meeting stakeholder expectations and high levels of professional ethics," he said.

In Banking Sector (Private) category BRAC Bank Limited secured the first prize, Shahjalal Islami Bank Limited and Bank Asia Limited jointly won second prize, and Mutual Trust Bank Limited & Mercantile Bank Limited shared the third prize.

In the category of Financial Services Sector, IDLC Finance Limited won first prize, IPDC Finance Limited won second prize and LankaBangla Finance Limited won third prize.

In the Manufacturing category, British American Tobacco (BD) Limited won first prize, followed by Orion Pharma Limited in second and Summit Power Limited in the third position.

Grameenphone Limited was the lone first winner in the category of Communication and Information Technology.

Green Delta Insurance Co. Limited emerged as the first prize winner, Prime Insurance Co. Limited second and Reliance Insurance Limited won the third prize in the insurance category.

In Public Sector Entities category, Investment Corporation of Bangladesh (ICB) became the first prize winner.

SAJIDA Foundation secured first prize, Ghashful second and CODEC became joint second prize winners and ActionAid Bangladesh won the third prize in Non-Governmental Organization (NGO) category.

Unique Hotel & Resorts Limited was the first prize winner in the category of Service Sector while Golden Harvest Agro Industries Limited was the first prize winner in the category of Agriculture.

In the Integrated Reporting category, Lanka Bangla Finance Limited won the first prize, IDLC Finance Limited won second prize while the Bank Asia Limited and BRAC Bank Limited became joint third prize winners.

In Corporate Governance disclosures, IDLC Finance Limited and Lanka Bangla Finance Limited became joint first prize winners, Bank Asia Limited got second prize and Islami Bank Bangladesh Limited and BRAC Bank Limited also became joint third prize winners.

Following the first, second and third positions in each category, entities which achieved a minimum threshold of scores received the 'Certificate of Merit'

A nine-member Jury Board chaired by Md Matiul Islam FCA, Chairman, IIDFC and former finance secretary, GoB, reviewed the recommended list of winners.

The other eight members of the Jury Board were Ahmed Ataul Hakeem FCMA, former Comptroller and Auditor General Bangladesh, Dr Atiur Rahman, former Bangladesh Bank Governor, Dr Sayed Ferhat Anwar, Director, IBA, Dhaka University, AKM Aftabul Islam FCA, Director, Bangladesh Bank Board of Directors, Hedayetullah Al Mamoon, former senior secretary, GoB, Dr Mahmuda Akhter, FRC Council Member, Dr Mustafizur Rahman, distinguished Fellow, CPD, and Shah Husain Imam, Editor of the Financial Express.

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