6 more audit firms under ICAB scrutiny for alleged misconduct

At least half a dozen more audit firms are under scrutiny of the Institute of Chartered Accountants of Bangladesh (ICAB) for alleged professional misconduct relating to certifying the financial statements, officials said.
The probe into the allegations against the audit firms started following a complaint from the securities regulator and mismatches found by the institute's own monitoring team.
"We are investigating the allegations brought against around 6 to 7 chartered accountancy firms. Completing the probe, we are expecting to place our findings before the council of the ICAB within this year," Md Saiful Islam ACA, member secretary of the institute's Investigation and Disciplinary Committee (IDC), told the FE Tuesday.
Then, the ICAB council, supreme authority responsible for the administration and management of the institute, will take final decision about punitive actions against the audit firms found guilty.
Mr Islam, however, refrained from disclosing further details about it during the ongoing investigation process.
Earlier, the ICAB scrapped audit licences of seven chartered accountants (CAs) and firms and reprimanded five others for their professional misconduct.
Under the punitive measures taken a couple of months ago, the institute slapped monetary penalty too on the errant accountants and firms ranging from Tk 50,000 to Tk 200,000.
The regulatory body, for the first time, officially disclosed these punitive actions on its website in order to disseminate the information among the stakeholders, especially the listed companies, to ensure transparency and accountability in the accountancy profession, its officials said.
Since the disclosure on the website was the first experience for the ICAB, the body was quite cautious to avoid any legal complexities in this connection. Consequently, it took around two months for the body to upload the measures on its website-www.icab.org.bd---after completing necessary procedures.
Thanks to the cautious move, "Any audit firm, punished recently, is yet to be able to obtain 'stay order' from the High Court (HC) on the ICAB decision," Mr Islam said adding that they didn't receive any such certified copy of the HC order till Tuesday.
Earlier, there was a big concern over the issue that many of the penalized or reprimanded CAs or audit firms would quickly secure stay from the HC on the ICAB's punishment and accordingly continue their practice, he added.
When asked, he further said that the punitive actions are the ongoing process of the ICAB against any professional misconduct committed by the auditors and/or firms.
He also assured that the punitive measures will now be uploaded on the institute's website within the shortest possible time after the council finalised the actions.

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