Financial Reporting Act: ICAB versus FRC

Md Enamul H Choudhury The Institute of Chartered Accountants of Bangladesh (ICAB), which enjoys a legal status for the last 40 years, has by now become the most competent institution to regulate the professional financial management, accounting and audit/assurance services in the country. After the Liberation of Bangladesh, the ICAB, inheriting the previous Institute in the then Pakistan regime, started functioning on issuance of the President's Order No. 2 of 1973 and since then it has been meeting the following objectives: n Regulate the accountancy and audit/assurance profession and matters related therewith in the country. n Administer the professional conduct of ICAB members and students. n Ensure observance of soundprofessional ethics and code of conduct by its members. n Provide specialised training for enhancing professional expertise in Accounting, Auditing, Taxation, Corporate Laws, Management Consultancy, Information Technology and other related subjects. n Impart compulsory classroom training to its students. n Arranging for mandatory Continuing Professional Development (CPD) of its members. n Foster acceptance and observance of International Accounting Standards (IASs), International Financial Reporting Standards (IFRSs) and International Standards on Auditing (ISA) and adopt IAS, IFRS & ISA in Bangladesh as Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS) and Bangladesh Standards on Auditing (BSA) respectively. n Keep the members abreast with the latest developments in accounting techniques, audit methodology, information technology, management consultancy and related fields. n Liaise with international and regional organisations to help the development of efficient capital market and international trade. The ICAB has a Technical Research Committee (TRC) which examines the applicability of international standards in the context of the prevailing situation in Bangladesh and recommends adoption as Bangladesh standards. After approval by its Council, the standards are published by the ICAB. Apart from that, the ICAB publishes a quarterly journal titled "The Bangladesh Accountant" and a monthly titled "News Bulletin" for disseminating latest developments in the fields of accounting and auditing. The ICAB is member of several international and regional accounting and audit bodies like the International Auditing Standards Board (IASB), International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA) and a founder member of the South Asian Federation of Accountants (SAFA). Recently, the ICAB has signed a Memorandum of Understanding (MOU) with the Institute of Chartered Accountants of England & Wales (ICAEW) and updated the syllabus for CA Examinations. Under the Twinning Project with the ICAEW, the ICAB published a comprehensive Audit Practice Manual (APM) (a complete system with guidance notes) to ensure quality in audit and other assurance services by the practising members of the institute. The institute has established a new Quality Assurance Department (QAD) for reviewing periodically the reports generated by its member firms. Around 1,400 chartered accountants are at present members of the ICAB. They have qualified after studying long academic courses preceded by 3/4 years' on-the-job training. Around 15 per cent ICAB members are working in developed countries, such as, the UK, Canada, the USA, Australia, Middle East etc. Five per cent are working with the World Bank, the ADB, the UNDP, multinational companies etc. Thirty per cent are working in autonomous bodies and public limited companies, 50 per cent are practising members and performing financial management consultancy services, assurance/audit services, tax and VAT-related services and company secretarial services. Some ICAB members' Chartered Accountants (CA) firms of have achieved recognition from leading international professional firms and become their member/associate/ correspondence/representative firm consequent upon the ability to provide professional services maintaining the required higher standard. The affiliation of four big firms with leading international firms is shown as below: