ICAB, Padma Bank sign MoU on document verification system

The Institute of Chartered Accountants of Bangladesh (ICAB) and the Padma Bank Limited have inked a Memorandum of Understanding (MoU) over using a Document Verification System (DVS) for audit reports and audited financial statements.

Md Moniruzzaman, president of ICAB and Tarek Reaz Khan, managing director & CEO, Padma Bank Limited, signed the MoU from their respective sides at ICAB Council Hall in Dhaka on Sunday, said a press release.

ICAB President Md Moniruzzaman said DVS is well accepted by the regulators, financial institutions including banks, and corporate houses. It has enhanced the credibility of auditors a lot.

Addressing the DVS users, he said, "If there is any difficulty in operational aspects, ICAB is ready to provide any kind of help in this regard."

Padma Bank Limited Managing Director & CEO Tarek Reaz Khan said banks operate mainly for deposit mobilisation, sanctioning the loans and assessment of credit risk. To function properly, they need to assess the financial statements of the company accurately.

"We are coming into this collaboration through this MoU to ensure the proper assessment of the financial statements and analysis of the risk. It will also reduce tax evasion," he added.

Describing the background of introducing the DVS, Mohammed Forkan Uddin, ICAB Council Member & Convener, DVS steering committee, said to protect the national interest, ICAB, in collaboration with NBR, launched the DVS to help reduce the number of loan defaulters, attracting foreign direct investment, and establish financial ecosystem of the country.

ICAB Vice President Md Yasin Miah said, DVS will erase the unauthorised auditors and CA firms, and reduce the financial anomalies. It will make the banks more compliant as well, and thereby would create a compliant culture in the country.

ICAB Vice President MBM Lutful Hadee said CA firms, banks, leasing companies, and the VAT authority have to be more compliant with the existing VAT act. This DVS is such a mechanism which will help them to be more compliant with the act.

Md Shahadat Hossain, immediate past president of ICAB, urges all to make the DVS more successful to ensure transparency and accountability in the financial system of the country.

ICAB Vice President Md Johirul Islam, ICAB CEO Shubhashish Bose and Padma Bank's CFO Badal Kumar Nath also spoke on the occasion.