The securities regulator will finalise its Auditors' Panel for performing audit functions of listed companies by March next year to ensure proper financial reporting of companies, officials said.
A policymaker of the Bangladesh Securities and Exchange Commission (BSEC) told the FE that after finalisation of the BSEC Auditors' Panel, listed companies will compulsorily have to choose auditors from this panel.
The securities regulator sought applications from the firms of the chartered accounts practicing in Bangladesh to be included in the panel as per the criteria set by the regulator.
"The BSEC panel will perform the audit functions in the issuer companies listed with any stock exchange in Bangladesh," the BSEC policymaker said.
It is not mentioned in the BSEC guideline whether the companies willing to go public will have to perform their audit functions through the panel of the securities regulator.
When asked, the BSEC policymaker said the companies willing to go public will also come under the coverage of their auditors' panel.
"It will be mentioned in the upcoming amendment to public issue rules that the companies willing to go public will have to perform audit functions through the BSEC panel," said the policymaker.
As per the criteria set by the securities regulator, an auditor or a partner of an audit firm will be eligible for BSEC panel if they have a qualified chartered accountant.
To ensure eligibility the audit 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 audit 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 are convicted 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 regulator's 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.
Audit firms having inertest have been requested to apply for inclusion in the regulator's panel by January 15, 2015.
When asked, the newly elected president of the Institute of Chartered Accountants of Bangladesh (ICAB) Masih Malik Chowdhury said auditors' fee should be satisfactory along with other moves to ensure proper auditing.
"Normally, big firms get foreign affiliation thanks to their sufficient staffs. So, I think the regulator's criteria in case of selecting firms having foreign affiliation should be revised," Mr Malik said.
He said the ICAB will be happy if it can help the securities regulator through an auditors' cell as the BSEC has no audit experts.
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