Bangladesh BSEC bars two audit practices over flawed reporting

The Bangladesh Securities and Exchange Commission (BSEC) has banned 2 audit practices and idiosyncratic partners for lapses successful their audit enactment connected the fiscal statements of Fareast Islami Life Insurance and Ring Shine Textiles.

According to a study published successful the Business Standard, the superior markets regulator’s actions followed regulatory probes that identified important lapses successful audit procedures including anemic documentation and a nonaccomplishment to get capable audit evidence.

In 1 case, Mahfel Huq and Co, Chartered Accountants and its erstwhile spouse Abu Kaiser were penalised implicit their audit of Fareast Islami Life Insurance’s 2018 accounts.

A peculiar reappraisal by the Institute of Chartered Accountants of Bangladesh reported that the institution had issued an unmodified audit sentiment adjacent though determination were important anomalies related to onshore development, fixed deposits and related-party dealings.

On this basis, the BSEC has prohibited Mahfel Huq and Co from auditing listed securities for 1 year, portion Abu Kaiser has been barred for 2 years.

The regulator has besides taken measures implicit the fiscal reporting of Ring Shine Textiles.

For the company’s 2018 fiscal statements, the audit signifier progressive and spouse Abdus Sattar person been banned for 3 years and 5 years, respectively, aft failing to guarantee that the accounts presented a “true and fair” picture.

In a abstracted ruling, Ata Khan and Co and its spouse Maqbul Ahmed person been declared ineligible for inclusion successful the BSEC’s sheet of auditors for a play of up to 5 years.

This determination stems from what the regulator identified arsenic akin breaches successful the practice’s audit of the company’s 2019 fiscal statements.

According to the publication, with these moves, the BSEC aims to fortify accountability successful the superior market.

"Bangladesh BSEC bars 2 audit practices implicit flawed reporting" was primitively created and published by International Accounting Bulletin, a GlobalData owned brand.

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