ICMAB organized a seminar on “Financial Reporting Act: Role and Responsibilities of Professional Accountants” on August 23, 2017 at ICMAB Ruhul Quddus Auditorium, Dhaka.
Mr. C. Q. K. Mustaq Ahmed, Chairman, Financial Reporting Council (FRC) attended the program as Chief Guest. Dr. Nikhil Chandra Shil FCMA, Associate Professor, Department of Business Administration, East West University presented the Seminar Paper. President of ICMAB Mr. Jamal Ahmed Choudhury FCMA presided over the function.
Speakers at the seminar stressed on 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 organizations should scrutinize the financial reports from the standpoint that secures the public interest most, they said.
The Chief Guest in his speech said that 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 organizations 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 finalized, 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.
President of the Institute, referring to the contribution of ICMAB members in formulating the FRA, 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.
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 FCMA, past president of the Institute 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.
Past Presidents of ICMAB Mr. Mohammed Salim FCMA also spoke on the occasion. Secretary ICMAB Md. Abdur Rahman Khan FCMA offered the vote of thanks.
A good number of professional CMAs took part in the question & answer Session which made the program very lively.