ICAB strikes MoU with FRC on document verification system

The Institute of Chartered Accountants of Bangladesh (ICAB) has signed a memorandum of understanding (MoU) with the Financial Reporting Council (FRC), aimed at strengthening the verification of audited financial statements and audit reports submitted by public interest entities to the FRC.

Md Sajjad Hossain Bhuiyan, chairman of the Financial Reporting Council, and NKA Mobin, president of the Institute of Chartered Accountants of Bangladesh, signed the MoU at the Pan Pacific Sonargaon Dhaka today, according to a press release.

Commenting on the collaboration, Bhuiyan underscored the crucial role of ICAB in the financial sector, stating that the FRC is facilitating ICAB's work for the benefit of businesses and the economy.

"The entire revenue sector depends on the financial statements of organisations and business entities. A true and fair view of these statements will enhance revenue and sustain the financial ecosystem of the country," he noted.

Mobin emphasised the collaborative approach, saying: "We are working hand in hand with the FRC to support all stakeholders and advance the development of the accounting and auditing profession."

Through this cooperation, the FRC and ICAB aim to enhance transparency, accountability, and oversight of audit practices in Bangladesh.

The document verification system (DVS) will allow the FRC to verify whether financial statements and audit reports submitted by both public interest and non-public interest entities are certified by chartered accountants holding ICAB's Certificate of Practice (CoP) and registered auditors of the FRC.

In addition, under section 45(3) of the Financial Reporting Act (FRA) 2015, public interest entities are required to file their annual financial statements with the FRC, which is mandated to verify their accuracy and completeness.

Since these financial statements are audited by chartered accountants holding a CoP from ICAB, the MoU enables ICAB to provide the FRC with necessary assistance in ensuring compliance through the effective use of the DVS.