A total of 52 audit firms have applied for enlistment in the securities regulator's auditors' panel which will be formed for ensuring proper and standard auditing of the listed companies, officials said.
The officials said the Bangladesh Securities and Exchange Commission (BSEC) now is scrutinising the applications for finalising the list of their auditors' panel.
"The BSEC auditors' panel will be formed through the scrutiny in accordance with the eligible criteria set by the securities regulator," said BSEC executive director Mohammad Saifur Rahman.
After the formation of the panel, listed companies compulsorily will have to choose auditors from this panel. The securities regulator will also sit with its panel time to time to ensure more transparency in the auditing job of listed companies.
"It will be also mentioned in the upcoming amendment to the public issue rules that the companies willing to go public will also have to complete the auditing job by choosing any one from the BSEC auditors' panel before submitting IPO (initial public offering) prospectus," said a BSEC policy maker.
Presently, there are around 1300 auditors and 175 audit firms in the country. Out of 175 audit firms, around 95 conduct the auditing job of the listed companies.
When asked, the officials of audit firm told the FE they were not able to apply for enlistment in the BSEC panel as their firm is not a partnership one.
At the end of December last, the securities regulator sought applications from the aspirant auditors by January 15, 2015 to be enlisted in the BSEC auditors' panel.
Later, the regulator extended the deadline for 15 days more to submit applications.
According to BSEC officials, the regulator initiated the move of forming an auditors' panel for the sake of ensuring proper auditing of the listed companies.
Another official said the enlistment in the BSEC auditors' panel will be a prestigious issue for the audit firms.
"This system will create a competition among others who will not be selected or failed to apply for the first time. So they will try to be enlisted by fulfilling required criteria," the BSEC official said.
The BSEC auditors' panel will comprise of around 35 members selected from 52 firms who submitted application to the securities regulator.
The BSEC officials hinted that their auditors' may be restructured once or twice every year.
As per the criteria set for the BSEC auditors' panel, an auditor or a partner of an audit firm must be a qualified chartered accountant.
The firm must be a partnership firm of chartered accountants consisting of not less than two partners in case of foreign affiliated audit firm or four partners in case of having no foreign affiliation.
And at least two partners of the firm, whether it is foreign affiliated or not, shall have the practicing experience in auditing for a minimum period of seven years and the firm must have adequate qualified audit staffs who will not be less than eight in number for each partner.
The auditors or partners or audit firms will be disqualified for enlistment in the BSEC panel if they found guilty for any securities or exchange related offence under any law by the court.
Those who have been declared ineligible for acting as auditor of any issuer company under the securities rules will also not be included in the BSEC panel.
Suspension or fines imposed by any competent authority or under any law will also be considered disqualification of the BSEC panel.
And any of accountants or auditors or partners of the audit firm shall not be associated in any way with the issuer companies during the audit period.
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