Transparent and high-quality financial reporting will reduce the cost of doing business and enhance investor confidence in the capital and bond markets; eventually helping the country attract both local and foreign investments.
The observation was made at a virtual members' conference on "Financial Reporting Act 2015 – Roles and Responsibilities of Professional Accountants," organised by the Institute of Chartered Accountants of Bangladesh (Icab) on Sunday, read a press release.
CQK Mustaq Ahmed, former chairman of the Financial Reporting Council of Bangladesh, attended the conference as the chief guest.
Sabbir Ahmed FCA, vice-president and chairman of the Technical and Research Committee (TRC) of Icab, made the opening remarks and Muhammad Farooq FCA, president of Icab, delivered the event's welcoming address.
CQK Mustaq said auditors should know the Financial Reporting Act (FRA), thoroughly, to provide better professional services.
"If the FRC finds someone guilty, before taking any decision, the matter is discussed at the council for a proper judgment to be made. If someone is penalised, there is an opportunity for the aggrieved to seek remedy in the external appellate court as per the provision of section 54 of the FRA," he added.
CQK Mustaq said FRC is a council, consisting of 11 members with different backgrounds, whose responsibility is to discuss the gravity and nature of offences and to ensure justice for affected stakeholders.
The government enacted the FRA for the professional development of the chartered accountants and to add value to the profession, he added.
He said an auditor has enormous power and has a big role at the same time. "Through his audit, a company can be destroyed. And again, because of any mistake an auditing firm can be destroyed."
Icab President Muhammad Farooq said, in the global business context, a local company has to survive through stringent competition with a foreign company.
He said professional accountants look into matters related to the financial strength of a company.
"He prepares strategic goals by analysing financial data and presents them to the stakeholders. On the other hand, professional accountants also carry out statutory audits of the financial statement of a company. In these ways, the role of CAs is crucial," Farooq added.
He said all the stakeholders and regulators should play an active role to make the FRA more effective.
Mahbub Ahmed Siddique FCA, director, technical at ICAB, presented the keynote paper at the programme. Other speakers included Md Sayeed Ahmed, executive director of Audit Practice Review of FRC; Mohammad Mohiuddin Ahmed FCA, executive director of Financial Report Monitoring; and M Anwarul Karim FCA, executive director of Standard Setting.
The executive directors of FRC stressed the need to prepare fair audit reports.
Muhammed Farhad Hussain FCA wrapped up the session while Mohammed Forkan Uddin FCA, vice-president of ICAB, made the concluding remarks.