The Institute of Chartered Accountants of Bangladesh (ICAB) urged the government to keep trust in chartered accountants for statutory audits, despite the demand raised to reform the auditing institutions.
President of ICAB Maria Howlader said this in a press conference on ‘Safeguarding Audit for National Interest: Local and Global Perspective’ held at the CA building in Karwan Bazar on Thursday.
Beyond its regulatory functions, ICAB actively supports the government through various policy initiatives. This includes submitting budget-related proposals to the National Board of Revenue (NBR) and providing input on the formulation of rules and regulations for the Financial Reporting Council (FRC), she said.
ICAB also assists in drafting crucial legislation and regulations related to industrial policy, import-export policy, and foreign investment policy, she said.
In response to some points raised by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) recently, she said that ICAB is the lone institute who has global and domestic recognition for auditing activities.
Maria said that ICAB proudly marks its 50th anniversary, celebrating five decades of dedicated service in regulating the accounting and auditing profession in Bangladesh.
Established on January 6, 1973, through the Bangladesh Chartered Accountants Order, 1973 (President's Order No. 2, 1973), ICAB has consistently upheld the highest standards, significantly enhancing the nation's financial landscape and international standing, said the ICAB president.
Since its inception, ICAB has played a pivotal role in controlling the accounting and auditing profession and related activities in Bangladesh. The Institute's unwavering commitment to excellence has resulted in ICAB's curriculum and examination system being recognized as equivalent to that of the prestigious Institute of Chartered Accountants in England and Wales (ICAEW), she pointed out.
This parity has been further acknowledged by leading professional bodies such as Chartered Accountants Australia and New Zealand (CA ANZ), which has also recognized ICAB's curriculum and examination methods.
This international recognition provides a significant advantage for Bangladeshi students. ICAB-certified Chartered Accountants are highly sought after globally, with opportunities to practice their profession in developed countries.
Md. Humayun Kabir, Md. Moniruzzaman, and Md. Shahadat Hossain, the past presidents of ICAB, also spoke at the press conference.
Replying to a journalist's query, ICAB leaders stated that CAs are not involved in money laundering and that bank-defaulted loans were not found in audit reports in the past, due to policies set by the state regulatory entities for audits.
When a government sets a role not to ask questions regarding Non-Performing Loan (NPL) of banks and some other financial institutions, and the court also orders to do the same, then CAs cannot work properly, she acknowledged.
Currently, ICAB members can gain membership with professional bodies like ICAEW and CA ANZ based on their practical experience, enabling them to practice in various countries without incurring substantial foreign exchange costs for their qualifications. This has led to a growing demand and acceptance for Bangladeshi accounting professionals both domestically and internationally.
As a self-reliant regulatory body, ICAB is continuously working to improve the quality of the auditing profession. A key initiative in this regard is the Document Verification System (DVS). Launched under ICAB's supervision, DVS aims to prevent unauthorized individuals from issuing or signing audit reports and to eliminate the creation of multiple audited financial statements for a single entity.
The importance of DVS in verifying the authenticity of audit reports was initially recognised by the National Board of Revenue (NBR), with whom ICAB signed a Memorandum of Understanding (MoU) to combat tax evasion and increase revenue.
Subsequently, other regulatory bodies and financial institutions have adopted DVS, including the Financial Reporting Council (FRC), Registrar of Joint Stock Companies and Firms (RJSC), Bangladesh Securities and Exchange Commission (BSEC), Bangladesh Investment Development Authority (BIDA), NGO Affairs Bureau, Microcredit Regulatory Authority (MRA), and various commercial banks.
Furthermore, ICAB maintains strict control and oversight over its members to ensure the transparency, accountability, and international standards of audited financial reports.