The central bank has asked all the scheduled banks to verify their borrowers' submitted financial statements by using Document Verification System (DVS) for ensuring authenticity of the information, officials said.
The Bangladesh Bank (BB) issued a circular in this connection on Tuesday, and asked all the managing directors and chief executive officers to contact the Institute of Chartered Accountants of Bangladesh (ICAB) for using DVS.
DVS is an application, under which a document verification code (DVC) would be automatically generated by the system after submission of some specific information by the auditor.
The central bank has taken the measure for reducing the amount of non-performing loans (NPLs) along with ensuring credit discipline in the country's banking system, according to the notification.
The ICAB has already developed the software to verify authenticity of the audited statements for bringing financial discipline in the country.
Talking to the FE, Mohammed Forkan Uddin, council member of the ICAB, said DVS would be used as one of the instruments to verify financial statements.
"It will help reduce the volume of classified loans by curbing manipulation of figures in the financial statements in any circumstances."
DVS would also help enhance revenue collection significantly, he noted.
Under the existing rules and regulations, all the companies registered with the Registrar of Joint Stock Companies and Firms (RJSC) must be audited by chartered accountant (CA) firms.
Currently, the CA firms are conducting audits in around 16,000 business entities, out of around 0.20 million registered companies across the country, Mr. Forkan added, while describing the present situation of the auditing system.
