BSEC summons six audit firms over financial reporting irregularities
The BSEC has decided to hold a hearing to ask the firms why they should not be banned from auditing for a period of five years.
The Bangladesh Securities and Exchange Commission (BSEC), the country's capital market regulator, has summoned six audit firms and their auditors for failing to report serious financial irregularities and legal violations in the financial statements of four listed companies.
The BSEC has decided to hold a hearing to ask the firms why they should not be banned from auditing for a period of five years.
The decision was announced in a press release issued on Tuesday.
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The firms in question are: A Hoque & Co, Ahmad & Akhtar Chartered Accountants, Mahfel Huq & Co, Ata Khan & Co, Shiraz Khan Basak & Co, and Islam Quazi Shafique & Co.
According to the BSEC's statement, A Hoque & Co, the audit firm for Shurwid Industries for the fiscal year ending 30 June 2019, did not disclose serious financial irregularities and violations of securities laws found in the company's financial reports.
Similarly, Ring Shine Textile's accounts for FY17, FY18, FY19 and FY20 were audited by Ahmad & Akhtar Chartered Accountants, Mahfel Huq & Co, Ata Khan & Co, and Shiraz Khan Basak & Co, respectively. Despite legal breaches in the financial statements, the irregularities were not reported in the auditors' opinions.
In addition, Islam Quazi Shafique & Co audited the accounts of Aman Cotton and Fibres for the year ending 30 June 2020, while Mahfel Huq & Co audited the financial statements of Far East Islami Life Insurance Company for 2018 and 2019. Both firms were also accused of failing to disclose financial misconduct in their reports.
