If Document Verification System (DVS) is effective, the production of two or three types of financial statements will stop and a culture of producing single set of audited financial statement will be established, said Dr. Md. Hamid Ullah Bhuiyan, Chairman, Financial Reporting Council (FRC) at a MoU signing ceremony on Tuesday.
With a view to ensuring transparency and accountability and strengthening the monitoring and review system of the audited Financial Statements, the Financial Reporting Council (FRC) under Ministry of Finance, GoB has signed a Memorandum of Understanding(MoU) regarding use of Document Verification System (DVS) with the Institute of Chartered Accountants of Bangladesh (ICAB) at a ceremony held at ICAB Auditorium on Tuesday.
Dr. Md. Hamid Ullah Bhuiyan, Chairman, Financial Reporting Council (FRC) and Muhammad Farooq FCA, President, ICAB signed the MoU from their respective sides.
Once the MoU is signed, the main objective of the FRC -monitor the financial statements-will be fulfilled. It will be possible for FRC to easily verify the true and fair view of this companies audited financial statements, he hoped.
Listed companies contribution is accounted for only 9 percent of the country's GDP, which is very low. If companies submit properly audited financial statements, the NBR's revenue will increase even more, he further said.
He also said that ICAB and FRC will work together in the future to strengthen the auditing system, which will help to expedite the development pace of the country.
Muhammad Farooq FCA, President- ICAB said, DVS has already become quite acceptable to the business community and other regulatory bodies. ICAB has provided trainings to CA firm representatives to make DVS effective. It will be effective in making the accounting system acceptable and reliable, he commented.
In a presentation on DVS ICAB Vice President Muhammed Forkan Uddin FCA explained on how DVS works for authenticating the audited Financial Statements and ensure transparency of financial statements and accountability of the auditors.
Mentioning that ‘Unique Document Identification Number’ (UDIN) is being introduced in India, he said, ICAB has planned to develop this DVS in order to stop producing multiple audited financial reports.
He said, ICAB's registered auditors sign 16,000 financial statements every year while 46,000 financial statements are submitted to the Register of Joint Stock Companies (RJSC). Asked who signed the remaining 30,000 reports, he said, these companies now would not be able to commit audit fraud as the DVS is functioning.
Among others spoke on the occasion were ICAB President for 2021 Mahmudul Hasan Khusru FCA, Council Member & Past President-ICAB Kamrul Abedin FCA. Closing remarks was made by Shubhashish Bose, Chief Executive Officer (CEO)-ICAB.
