Speakers at a virtual conference on Saturday said for further improving the quality of financial reporting and auditing in the country, every responsible stakeholder should contribute independently through maintaining integrity and professionalism.
They also said management of the company, audit committee, internal and external auditors and the regulators require to perform their own responsibilities properly in this direction, reports BSS.The observations came from a virtual members conference organized by The Institute of Chartered Accountants of Bangladesh (ICAB) organised on Dynamics of Audit Quality in Bangladesh today where Prof. Dr. Md. Salim Uddin, Council Member of ICAB and Professor, Department of Accounting, University of Chattogram presented the keynote paper.
ICAB President Mahmudul Hasan Khusru delivered the address of welcome. Dewan Nurul Islam, Chairman of the Investigation and Disciplinary Committee (IDC) and Past President-ICAB conducted the conference as the Session Chairman, said a press release.
As panel speakers Muhammad Farooq, member council and immediate past president ICAB and Md. Abdul Kader Joaddar, Vice President-ICAB took part in the conference.
ICAB President Mahmudul Hasan Khusru said, the most important thing for the audit profession is the quality of audit.
“There is no way for auditors to compromise with the quality,” he said, adding that ICAB has strengthened its monitoring activities which include deploying dedicated employees, developing and updating frameworks, checklists and automation.
“It also introduced an integrated audit software for improving the quality of audit,” Khusru added.Keynote presenter Dr. Md. Salim Uddin said, following the corporate incidents, and the recent financial crisis, audit quality has become one of the top-priority issues for regulators, standard setters, researchers and practitioners.
In the keynote paper it was revealed that from the RJSC, a total of 1.76 lakh public and private limited companies obtained registration till July 2020 and more than 88 per cent or around 1.55 lakh business firms are active.
The keynote presenter also informed that the NBR taskforce found that among 1.55 lakh companies, only 78,000 companies obtained taxpayers identification numbers and on average only 35,000 TIN holding companies submitted income tax returns whereas ICAB registered auditors perform audits of only seventeen thousand companies in a year.
To eliminate such malpractice, ICAB developed an automated document verification system (DVS) to authenticate audited financial statements and find out unscrupulous business entities that used doctored reports to evade corporate tax.
Now, NBR and other stakeholders are able to identify the fake reports using the system as DVS made mandatory for all ICAB members.