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ICAB, BSEC team up to authenticate financial statements

  • Published at 12:46 am March 11th, 2021
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Representational photo Photo: BIGSTOCK

The Document Verification Code (DVC) -- a part of the DVS -- is a system-generated alphanumeric unique ID for audit reports and the financial statements endorsed by practicing chartered accountants

The Bangladesh Securities and Exchange Commission (BSEC) and the Institute of Chartered Accountants of Bangladesh (ICAB) have teamed up to authenticate audited financial statements.

BSEC Commissioner Mizanur Rahman signed a letter of intent with ICAB President Mahmudul Hasan Khusru on Wednesday for getting access to the Document Verification System (DVS).

The Document Verification Code (DVC) -- a part of the DVS -- is a system-generated alphanumeric unique ID for audit reports and the financial statements endorsed by practising chartered accountants.

It can be viewed by government agencies and different stakeholders and regulators, such as the Bangladesh Bank, the Financial Reporting Council (FRC), the BSEC and the Insurance Development and Regulatory Authority covered under the letter of intent or any framework with the institute.

The ICAB introduced the DVS on December 1 last year to curb the malpractice of producing multiple financial statements and to establish transparency and accountability in the accounting system of the country.

The commission would verify the authenticity of any financial statement provided through the new DVS of ICAB, said Mohammad Rezaul Karim, spokesperson of the BSEC.

Access to the system will minimise the fraudulent activities involving financial documents, he added.

The DVS has already become quite acceptable to the business community and other regulatory bodies, according to ICAB officials. 

The ICAB has such arrangements with the National Board of Revenue and the FRC.

The DVS will make the accounting system more acceptable and reliable, they added.

According to ICAB, its registered auditors signed 16,000 financial statements in a year while about 46,000 financial statements were submitted to the Registrar of Joint Stock Companies (RJSC). 

There is a huge gap between ICAB’s and RJSC’s figures, suggesting malpractice. 

But with the DVS functioning, companies will no longer be able to commit audit fraud.