ICAB body indicts 7 audit firms for unethical practices

Mohammad Ali | Published: December 23, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

A probe body of the Institute of Chartered Accountants of Bangladesh (ICAB) has found seven audit firms involved in 'professional misconduct' and recommended necessary action against those, officials said.
The Investigation and Disciplinary Committee (IDC) of the ICAB carried out the inspection following allegations made by different regulatory bodies against such audit firms. Â
The IDC submitted the findings before the ICAB council on December 10 with recommendations to take punitive actions, including monetary penalty and reprimand, against the guilty audit firms.
"We will take a final decision very soon about imposition of punishment on the basis of the IDC recommendations at the council meeting, which is expected to be held on December 28," Showkat Hossain FCA, ICAB President, told the FE Monday.
The accused audit firms are M/s Shafiq Mizan Rahman & Augustine, Chartered Accountants, A Matin & Co., Chartered Accountants, S.H. Khan & Co., Chartered Accountants, MM Hossain & Co., Chartered Accountants, A Hoque & Co., Chartered Accountants, Rahman Mustafiz Haq & Co., Chartered Accountants, and Ahmed Shahid & Co., Chartered Accountants.
The IDC conducted its probe into the audit firms based on a number of complaints received from the National Board of Revenue (NBR), the Bangladesh Securities and Exchange Commission (BSEC), the Bangladesh Bank (BB) and the Quality Assurance Board (QAB) of the institute.
Following a complaint regarding audit of Dr. Siddiqur Rahman Patwari, proprietor of Banpara Clinic for the year ending on June 30, 2012, the IDC recommended reprimanding Shafiq Mizan Rahman & Augustine so that they improve their audit quality. In case of failure to improve the quality, the ICAB will take drastic action.
Investigating the complaint on audit of Bangas Ltd for the year ending on June 30, 2012, the IDC recommended imposition of penalty of Tk 100,000 on A Matin & Co. and S.H. Khan & Co. each for resorting to unethical practices and discrediting the image of the accountancy profession.
Upon complaint of audit of M/s ServicEngine Ltd for the years 2008-09, 2009-10, 2010-11 and 2011-12, the probe body found MM Hossain & Co. guilty of professional misconduct and recommended to reprimand it with monetary penalty of Tk 50,000 on Md Moazzem Hossain FCA of the audit firm.
Probing the complaints on non-maintenance of ICAB quality control requirements for audit clients, the IDC recommended the council to reprimand A Hoque & Co. and Rahman Mustafiz Haq & Co.
The body also recommended reprimanding Shafiq Mizan Rahman & Augustin with monetary penalty of Tk 50,000, and reprimanding the Ahmed Shahid & Co. with monetary penalty of Tk 300,000 on Shahid Uddin Ahmed FCA of the firm, according to the sources.
Earlier this year, following recommendations of the IDC, the ICAB scrapped audit licences of seven chartered accountants (CAs) and firms and reprimanded five others for professional misconduct.
The institute also slapped monetary penalty on the errant accountants and firms ranging from Tk 50,000 to Tk 200,000.
Late last year, the ICAB also reprimanded 20 CAs as they were found guilty of professional misconduct.
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