Chartered accountants on Saturday observed that the formation of the bureaucrats-laden oversight body on accounting and auditing services as proposed in the draft Financial Reporting Bill 2013 will increase the complexities and the cost of doing business.
If enacted, they said, the law will also hamper the development of Institute of Chartered Accountants Bangladesh (ICAB) as a self-regulatory professional body.
These observations came at a roundtable, titled ‘Proposed Financial Reporting Bill 2013: Contradictory and Unnecessary for the Growth of Economy’, organized by ICAB at a city hotel.
ICAB president M Abdus Salam said the formation of Financial Reporting Councils (FRC) as a super regulatory body is totally unnecessary, since the ICAB as a quasi regulatory body is performing the duties successfully in this regard.
“If FRC is formed, the ICAB will lose its independent status and a dualism will prevail over monitoring accounts and auditing services that will lead to complexities in doing business,” he said.
ICAB former president Humayun Kabir said the section 2(11) of the proposed law allows non-chartered accountants to audit a company that is conflicting with the country's existing law.
As per the CA order (President’s Order No. 2 of 1973), only the ICAB can register the auditor and the ICAB has been issuing and renewing the licenses, he said.
Kabir added that ICAB has the statutory power to prepare and implement the accounting and auditing standards according to the rules of international Financial Reporting Standard (IFRS) and International Standards of Auditing (ISA).
“The FRC will be given the responsibility to conduct the same function and the proposed one is not likely to have the expertise. Rather it’s likely to create bureaucratic bottlenecks,” he said.
The cabinet on August 19 approved the proposed Financial Reporting Bill 2013.
Moderated by Kabir, the roundtable was also addressed by former National Board of Revenue (NBR) chairman MA Mazid, BD Venture vice president Mamunur Rashid and Industrial and Infrastructure Development Finance Company (IIDFC) chairman M Matiul Islam.