The Financial Reporting Council (FRC), Bangladesh has lodged a complaint to the authorities concerned that some accountancy bodies of the government were bypassing it in preparing laws, rules, and standards.
Established in 2017 to regulate auditors, chartered accountants, cost accountants and actuaries in the country, the FRC also requested the authorities not to approve any law that contradicts and bypasses it, said officials having knowledge about this ongoing practice.
The regulatory body wrote a letter, signed by its chairman Dr. Hamid Ullah Bhuiyan, to the ministries of commerce, finance, and law, justice and parliamentary affairs on August 11 last, expressing its concern over the misdeed.
The FRC was formed in light of the recommendations placed after the capital market debacle in 2010 as there were many allegations against the auditing firms about manipulating financial statements.
The FRC seeks to promote transparency and integrity in business by setting its target to work for investors and others who rely on company reports, audits, and high-quality risk management.
When contacted, Mr. Md. Sayeed Ahmed, an executive director at the FRC, told the FE on Saturday that the FRC is the regulator of all accountants and auditors in Bangladesh.
He said the Institute of Chartered Accountants of Bangladesh (ICAB) is preparing a new law, bypassing us, which is expected to replace the existing ICAB order.
It is learned that the ICAB has already submitted the draft to the Ministry of Commerce for its finalisation.
A senior official at the ICAB also confirmed to the FE that they had submitted the draft law, revising the existing order of 1973. The act needs to be passed by parliament.
After the formation of the FRC, the landscape of the ICAB has changed a lot. Earlier, there was no regulator to monitor the activities of the auditors in the country.
On the other hand, the Institute of Cost and Management Accountants of Bangladesh (ICMAB), which is now being administered under an act passed in 2018, has many sections that are also contradictory to the FRC act.
It (ICMAB) is empowered with the law to prepare standards and issuance of licences for the cost management professionals.
Mr. Sayeed said that the cost and management accountants cannot set standards and issue licences after the formation of the FRC, which is the sole organisation on the matter.
In the letter, obtained by the FE, the FRC argued that it has the sole authority to look after the professional accountancy institutions in Bangladesh. It also argued that the organisation also monitors the public interest entities.
According to the letter, the professional accountancy bodies, for example the ICAB and ICMAB, will work under the monitoring and supervision of the regulatory body.
It urged the ministries concerned not to approve any law or regulations that contradict the FRC act.
jasimharoon@yahoo.com