Govt to study ICAB call for forming watchdog, updating companies act

Prime Minister Khaleda Zia has directed the ministry of commerce to look into two proposals by the chartered accountants, which sought updating the companies act and forming a board to review the application of international accounting standards.

She said she has advised the ministry concerned to take necessary steps to review the proposals.

The Prime Minister was speaking at the inaugural ceremony of the 30th founding anniversary of the Institute of Chartered Accountants of Bangladesh (ICAB) at the Bangladesh-China Friendship Conference Centre in Dhaka yesterday.

"Accounting and auditing play a significant role in ensuring transparency and accountability in administration and financial management," the prime minister observed.

The present government is putting emphasis on reforms to accelerate development activities, she said. "To keep the wheels of development moving, reforms will have to be continued."

Khaleda felt all sorts of wastage and corruption in development activities must be stopped to bring transparency and accountability everywhere.

"It is essential to maintain strict financial discipline to implement development programmes properly. Even the slightest relaxation is not acceptable in this regard," she added. "The old practices have now become redundant and are hindering development".

Eminent economist Professor Wahiduddin Mahmud presented the theme paper on 'Financial Sector Reforms' at the conference, which was presided over by Jamal Uddin Ahmad, a renowned chartered accountant and former deputy prime minister.

In his presentation, Professor Mahmud said a delicate balance between regulation and entrepreneurial freedom, in financial sector in particular, is needed.

"Much of the present malaise in the financial sector can be attributed to the fact that we went for liberalisation without providing for adequate regulation and supervision," he concluded.

The economist felt the ICAB might now consider taking steps, through legal provisions and professional self-disciplinary measures, to ensure mandatory compliance of the adopted standards by all its members.

Earlier, Jamal Uddin Ahmad said companies act should be revised and updated which has become too old in the present context of globalised business environment.

Chartered accountancy profession requires a legislation to review and monitor the application of the International Accounting Standards (IAS) and International Standards in Auditing (ISA), he felt.

AK Gulam Kibria, president of ICAB, said the institute adopted the IAS and ISA but due to shortage of logistics supports it could not monitor its implementation. A draft proposal for forming a multidisciplinary monitoring board for IAS and ISA has bee submitted to the commerce ministry, he added.