ICAB asks NBR to provide list of CA firms involved in ‘false auditing’

The Institute of Chartered Accountants of Bangladesh (ICAB) has expressed zero level tolerance to any kind of unethical audit practice by its members as the revenue board recently claimed such professional misconduct.

The institute also requested the NBR to provide the 'list of Chartered Accountancy firms, who are allegedly involved in false auditing', and the evidence in favour of the accusation.

"If the professional misconduct is proved, we will take immediate and stern punitive action against the guilty firms and/or chartered accountants (CAs); because, image of this noble profession cannot be tarnished because of activities of a few unscrupulous members, if have," ICAB president Md Abdus Salam FCA said in a reply letter to the NBR.

Earlier on November 21, 2013, NBR chairman in a Demi Official (DO) said that the revenue board recently conducted an instant survey, where it found that there are large anomalies of income-expenditure information in the audit reports, separately submitted to the NBR and the bank concerned, as per the letter.

NBR chairman Ghuman Hussain in the letter also requested the ICAB president to take necessary effective measures to prevent the making and submitting of false audit reports.

Without denying the NBR's allegation, the ICAB in a reply letter, sent to the revenue board last week, cleared its own position saying that most CA firms maintain international standards; after that, few firms, like other profession, might have involved in such misconduct; but ICAB is always proactive to curb it and show 'no tolerance' to them.

The ICAB president sought the NBR's cooperation to find out the corrupt officials, punish them, and build the country 'free from corruption.'

Informing its members about the NBR's DO letter on preparation and submission of fake and false audit reports by some CA firms, the ICAB warned them of taking stern action if they are found guilty.

"We believe that most of the CA firms in our country are maintaining globally acceptable auditing, accounting and quality control and ethical standards. However, like other profession, there may be few unethical practitioners in the CA profession," Mr Salam said.

"The institute will show zero level tolerance to the activities of the unethical practitioners," he said.

In a query about what the ICAB will do if NBR give the list of the CA firms, Mahbub Ahmed Siddique FCA, ICAB director (technical), told the FE, "ICAB will probe into the allegations and take stern action against the firms found guilty of the professional misconduct for the greater interest of this noble profession, the economy and the country."