ICAB, FRC sign MoU on DVS to boost verification of financial statements

The Institute of Chartered Accountants of Bangladesh (ICAB) and the Financial Reporting Council (FRC) signed a Memorandum of Understanding (MoU) at a city hotel on Sunday, to strengthen the verification of audited financial statements and audit reports submitted by public interest entities to the FRC, says a press release.

The MoU was signed by Dr Md Sajjad Hossain Bhuiyan, Chairman of the FRC, and NKA Mobin FCA, President of ICAB. ICAB Vice-Presidents, Council Members, and senior officials of FRC were also present at the event.

Under Section 45(3) of the Financial Reporting Act (FRA) 2015, public interest entities are required to file their annual financial statements with the FRC, which was mandated to verify their accuracy and completeness. Since these financial statements are audited by chartered accountants holding a Certificate of Practice (COP) from ICAB, the MoU enables ICAB to provide necessary assistance to the FRC in ensuring compliance through the effective use of the Document Verification System (DVS).

FRC Chairman Dr Md Sajjad Hossain Bhuiyan highlighted the crucial role of ICAB in the financial sector. He said the FRC is facilitating ICAB's work for the benefit of businesses and the economy. "The entire revenue sector depends on the financial statements of organisations and business entities. A true and fair view of these statements will enhance revenue and sustain the financial eco-system of the country," he said.

ICAB President NKA Mobin FCA emphasised the collaborative approach, saying, "We are working hand in hand with the FRC to support all stakeholders and advance the development of the accounting and auditing profession."

Through this cooperation, the FRC and ICAB aim to enhance transparency, accountability, and monitoring of audit practices in Bangladesh. The DVS will allow the FRC to verify whether financial statements and audit reports submitted by both public interest and non-public interest entities are certified by chartered accountants holding ICAB's CoP and registered auditors of the FRC.

This initiative marks a significant step in strengthening audit quality, ensuring professional compliance, and maintaining high standards of corporate governance under the FRA 2015.