FRA implementation to make listed cos’ audit reports credible

Dhaka,  Tue,  26 September 2017
Published : 25 Aug 2017, 01:09:13
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FRA implementation to make listed cos’ audit reports credible

Regulator FRC’s role yet to be finalised and rules still to come
FE Report


Speakers at a seminar stressed on Wednesday the need for implementation of the Financial Reporting Act (FRA), 2015 to ensure credibility, transparency and accountability in the audited reports of the publicly listed companies.

Meanwhile, the professional accountants working with these organisations should scrutinise the financial reports from the standpoint that secures the public interest most, they said.

The speakers came up with the views at a seminar titled 'Financial Reporting Act: Role and Responsibilities of Professional Accountants' organised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) at its headquarters in the city's Nilkhet area.

Financial Reporting Council (FRC) chairman C. Q. K. Mustaq Ahmed attended the programme as the chief guest while associate professor of East West University Dr Nikhil Chandra Shil presented the keynote paper.

ICMAB president Jamal Ahmed Choudhury chaired the seminar while the institute's vice president Mohammed Salim, secretary Md Abdur Rahman Khan and former president Arif Khan also spoke on the occasion.

Mustaq Ahmed said implementation of the FRA and establishment of the FRC will ensure good governance in the financial institutions, and it is a must to attract foreign investment into the country.

He said the FRC will regulate the functions of auditors and different financial organisations to ensure transparency and accountability.

"Self regulations are no longer there, people are getting affected; so, regulation is needed for the sake of people and the society," he said replying to the professional accountants' concern over the FRC's power to punish convicted auditors.

The FRC chairman, however, said the regulatory body's role is yet to be finalised, the process is on evaluation, rules are still to come and ethical standard of the body is yet to set.

Before enacting the law, the government thought that the FRA will not be effective without the provision of punishment in it, he added.

Referring to the contribution of ICMAB members in formulating the FRA, the institute's president said ICMAB replicated the USA model of the act and structure of the regulatory body in line with the context of Bangladesh.

The act will bring credibility, transparency and accountability of the companies which will ultimately benefit general people, he added.

Mr Choudhury also mentioned that the ICMAB has submitted a report to the Ministry of Commerce to make it mandatory in the draft Companies Act to employ qualified chartered accountants or cost management professionals in the publicly listed companies.

Presenting the keynote paper, Dr Shil said the FRC has four different roles to play including -- standard setting, financial report monitoring, audit practice review and enforcement - which will make its operation challenging if lacks in workforce.

Replying to a question about safeguard of the chief executive officers if they refuse to sign any manipulative financial reports, Mr Arif Khan said it is a problem of our country's culture, so, professional accountants will have to face this type of crisis collectively to find a way out.

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