Monthly News Briefing from the Institute of Chartered Accountants of Bangladesh

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1 ICAB ICAB NEWS BULLETIN Monthly News Briefing from the Institute of Chartered Accountants of Bangladesh ISSN Number 296 ICAB Organizes Members Conference on Amendments to the Bank Companies Act 1991 ICAB Organizes Members... Act 1991 ICAB Arranged Written Test for... Audit Officer Training Programme on Public... Standards Knowledge Sharing... Rules President s Communication ICAB team Meets Finance Minister Workshop on Latest SAFA...Held at ICAB ICAB Team Meets NBR Chairman Meeting with Finance Division Secretary Meeting with Secretary of Legislative... Division Admission as Fellow Campus News IPFMRF Workshop for Records of Training & Workshop organized By ICAB Training on IFRS and IAS for BB Officials Nurul Faruk Hasan & Co becomes...firm of BDO ICAB and World Bank Held... Progress Report We Mourn ICAB participates in SAFA... Maldives CRC Holds CPD Seminar on 'Integrated... Opportunities' The Institute of Chartered Accountants of Bangladesh observed the changes in the Bank Company Act 1991 with appreciation. However, the Practicing Members of the Institute and the Audit Firms are concerned about changes in section- 39 of the Act related to their auditing responsibilities stated under this act. ICAB President Showkat Hossain FCA spoke at Members Conference on Amendments in the Bank Companies ACT, 1991 and its implications on External Audit of Banks held at ICAB Auditorium on Wednesday, 25. Md. Abul Quasem, Hon'ble Deputy Governor, Bangladesh Bank was present as chief guest and ASM Nayeem FCA, Member Council and Past President- ICAB was present as Session Chairman. While Sabbir Ahmed FCA, Hoda Vasi Chowdhury & Co, Chartered Accountants presented the Key-note Paper. ICAB President said that we all believe in a single vision and that is sustainable development of our nation. The Institute of Chartered Accountants of Bangladesh is always keen to achieve that aspiration. Appreciating the changes in the Bank Company Act, he said that the Practicing Members of the Institute as well as the Audit Firms have great concern relating to the changes especially in section- 39; that is relevant to their auditing responsibilities. He mentioned that the whole process of Auditing as well as expression of audit opinion are technical matters as prescribed by the International Standard on Auditing which have been adopted by ICAB following the issuance of International Auditing and Assurance Standard Board (IAASB). So, any changes relevant to Audit Report which is not in line with the standards may hamper the whole technical process and will create ambiguities for the Auditors, he added. He further said that the Statements of listed entities are required to be prepared and presented in line with the requirements of International Reporting Standards -IFRS and International Auditing Standards (IAS) as adopted by ICAB as per Rule 12 (3) of BSER 1987.

2 The ICAB President said that there are some differences between the reporting requirements as guided by adopted IFRS and Bangladesh Bank Regulations. Like other countries where there are such differences, the local Regulations normally prevail and accordingly in Bangladesh, the Banking Statements are prepared maintaining the Bangladesh Bank Regulations, he further said. He urged to discuss, resolve and to avoid the possibility of ambiguities in making Auditors opinion. Being the National Professional Body, ICAB is always ready to evaluate and review the changes made in the Accounting and Auditing standards including local regulations, he informed. Regarding the concern to understand the expectation level of ICAB s stakeholders from Professional Accountants, he requested all to consider these expectations at the time of performing professional duties. Currently, we have a good alignment with the Bangladesh Bank and Knowledge exchanging cooperation, he added. We anticipate more cooperation of Bangladesh Bank to assume ICAB participation in the sustainable economic escalation mission in the years ahead. amendments to the act are made. He also said Bangladesh Bank will modify Ambiguities in provisions of the Banking Act very soon. He also spoke about the audit responsibilities that were stated in Companies Act. He also said that the BB is interested to achieve advanced and pragmatic technical knowledge on accounting and believes the trainings organized by ICAB for BB officials will meet that requirement. The Key-note speaker said that audit is a dynamic and evolving matter, requiring constant update of knowledge and rigorous learning and development programs for all level of staff including partners of an audit firm. He further said that since auditing and accounting standards are changing, so as regulations, a practicing chartered accountant auditing a Bank requires to invest substantial time and resources to keep them updated on these changes. Through this continuing professional development, an auditor ensures delivery of high quality audit, he added. We would also expect from our local stakeholders to act on similar fashion and rather than lobbying on behalf of some vested quarters, come-up with rational thinking and valued suggestions to groom-up home grown talent, provide them world class learning and development opportunities and contribute towards the betterment and sustainable development of our beloved country and its people. As Chief Guest Bangladesh Bank Deputy Governor Abul Quasem said, Accounting Professionals are playing major role in up lifting our economy and consequently their activity definitely affects our economy. He said that Bangladesh Bank will definitely consider the recommendations of ICAB while A partial view of Members present in the Conference ICAB Arranged Written Test for Recruitment of Pubali Bank Audit Officer 2 In the picture President-ICAB Showkat Hossain FCA was visiting the Library, ICAB on 6 May, when a written test for Pubali Bank Audit Officer went on. ICAB has arranged the written test of total number of candidates 108 for the selection of Audit Officer for Pubali Bank, Dhaka. Genaral Manager, Human Resource Pubali Bank, other officers, HR, Pubali Bank, Vice President (E&T)-ICAB Dewan Nurul Islam FCA and were present during the examination. On request of the Pubali Bank Limited, ICAB organized the recruitment test for Audit Officers.

3 Training Programme on Public Sector Auditing Standards ICAB president Showkat Hossain FCA, Past President and Council Member Md Abdus Salam FCA, Bob Shambler, Consultant, Leading Pilot Project, OCAG- Bangladesh and Rajesh Dayal Consultant, SPEMP-B project, OCAG, Bangladesh seen among the participants in a training programme on "Public Sector Auditing Standards" under the World Bank Financed "Public Private Partnership for Improved Audit Quality Assurance" project held at ICAB auditorium on Friday 20. The Institute of Chartered Accountants of Bangladesh (ICAB) organized a training programme on "Public Sector Auditing Standards" under the World Bank financed "Public Private Partnership for Improved Audit Quality Assurance" project for its members at ICAB auditorium on Friday 20. A total of 105 ICAB members received the training in two batches. International Standards of Supreme Audit Institutions (ISSAIs) are a set of professional standards developed by Professional Standards Committee of International Organization of Supreme Audit Institutions (INTOSAI) and approved by its Congress. The ISSAI frame work includes ISSAIs stating the basic prerequisites for the independence, proper functioning and professional conduct of Supreme Audit Institutions that are entrusted with the oversight function of use of public funds and the fundamental principles in auditing public entities and guidelines for use in carrying out the audits. ISSAI frame work also includes INTOSAI Guidance for Good Governance (INTOSAI GOV) providing guidance to public authorities on the proper administration of public funds. The course included three sessions- (i)an overview - explaining the authority, evolution,structure and types of the standards and the framework,(ii) Nature of financial audit in public sector,its linkage to compliance issues and applicability of Guidelines for financial audits and compliance audits (iii) Performance audits- key principles and applicability of standards and guidelines. Bob Shambler, Consultant, Leading Pilot Project, OCAG- Bangladesh and Rajesh Dayal Consultant, SPEMP-B project, OCAG, Bangladesh and Mr. Burhanuddin Ahmed FCA, Adviser, ICAB, Senior Member-ICAB contributed as resource persons. Knowledge Sharing Sessions on Public Procurement Rules The Institute of Chartered Accountants of Bangladesh (ICAB) arranged a 03-day Knowledge Sharing Sessions on the Public Procurement Rules (Advance level from the Audit Perspective) for ICAB s Qualified Chartered Accountants under the World Bank financed Project titled Promoting Public Private Partnership (PPP) for Improved Audit Quality Assurance at the National Academy for Planning and Development (NAPD) premises under Ministry of Planning on 20, 21 & 27. The training was provided by the National Academy for Planning and Development, Ministry of Planning with a view to enhance capacity of the professionals at individual as well as at firm level attached with the opportunities in Public Sector like; Consultancy, Audit, Review, Investigations and staff Appointments, etc. The training was conducted in 02 batches comprised of 30 members in each batch at NAPD premises on 20, 21 & 27. Participants received their certificates from the Director General, National Academy for Planning and Development. 3

4 President s Communication Dear Fellow Members, Assalamu Alaikum and Greetings to you all. Ramzanul Mubarrak to you all. The word Ramadan indicates the warm sensation in the stomach as a result of thirst & Spiritually, Ramadan burns out the sins with good deeds, as the sun burns the ground. To fast is to rediscover the meaning of mercy (rahmat) and compassion, starting with our own selves. It implies that we remain trustful, optimistic and stop being overcome with guilt. The month of Ramadan is the month of mercy and peace (salam), inner peace as well as peace in the community. May Allah (SWT) accept our fasting, forgive our sins, and guide us all to the Straight Path. I take this opportunity to update you on some major activities accomplished and initiatives we have undertaken during. Major Activities in ICAB s initiatives on Draft FRA ICAB recently learned from a report published in a daily newspaper that the Govt. has prepared draft Reporting Act without amending some basic and contradictory sections and provisions of draft FRA 2013 (even adding some new arbitrary para). Same report also added that proposed draft Reporting Act is likely to be placed in the next meeting of the Cabinet Committee for approval and may be placed as bill in the parliament during Budget Session. Considering above situation, I like to share with you ICAB s initiatives on this issue and steps taken for the interest of the Institute and our CA profession: - Steps taken and published news of ICAB s opinion on proposed draft FRA in the daily Express on 01. Details is available in the link m//06/01/ Sent ICAB s letter on this issue to Hon ble Ministers and Secretaries of Ministry of Finance(MOF), Ministry of Commerce (MoC), Ministry of Law, Justice and Parliamentary Affairs on 8 June 2914; - Meeting with Hon ble Minister for Planning; - Meeting with Hon ble Minister for Commerc & Commerce Secretary; - Meeting with Hon ble Minister for Finance, GoB and Secretary of Finance Division on 15 and expressed ICAB s stand on draft Reporting Act ; - Meeting with Secretary of Legislative & Parliamentary Affairs Division, MoL&JPA on 17 ; Meeting with Finance Minister and Secretary of Finance Division A 6-Member ICAB Team led by me paid a courtesy call with Abul Maal Abdul 4

5 Muhith, MP, Hon ble Minister for Finance, GoB on 15 in his office. During meeting we raised our arguments about the arbitrary sections and provisions in the draft FRA like its definition, registration, formation of Council, Standard Setting, Penalty, etc. and gave ICAB s opinion on these matters. An official letter covering ICAB s opinion on draft FRA was handed over to Hon ble Minister during meeting. Hon ble Minister gave a patient hearing to ICAB team and assured us that Govt. will review our demands for incorporation in the draft Act. After meeting with Finance Minister, ICAB Team also met with Fazle Kabir, Sr. Secretary, Finance Division on the same day and briefed him about the limitations and conflicting parts of draft FRA and solicited for his support and cooperation in this regard. Finance Secretary assured all possible cooperation to make the Act more realistic. Others members of the ICAB Team were Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Member Council Masih Malik Chowdhury FCA and Past President A K Chowdhury FCA. Meeting with Law Minister and Secretary of Legislative & Parliamentary Affairs Division A 5-Member ICAB Team comprising of myself, Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA and Past President A K Chowdhury FCA met with Md. Shahidul Haque, Secretary of Legislative & Parliamentary Affairs Division, MOLJ&PA on 17 in his Office and discussed about draft FRA issues. Secretary assured ICAB team that his Division will consider ICAB s opinion/comments on the draft FRA before finalization of the draft. Training on IFRS and IAS for BB Officials A 25 days long Training Program (2 nd Phase) on IFRS and IAS for Bangladesh Bank Officials was held from 1 June to 26 at Training Room (6 th Floor) of CA Bhaban, Dhaka. Md. Abul Quasem, Deputy Governor, Bangladesh Bank inaugurated the Training Program as the Chief Guest on 1 st evening. Deputy Governor in his speech opined that Bangladesh Bank is keenly interested to achieve advanced and pragmatic technical knowledge on Accounting especially on IFRS and hoped that training organized by ICAB for BB officials will meet the requirement of banking regulation at large. In my speech, I opined that recent fraudulent activities at Bank s alarmed us to be conscious about quality inspection of all the bank branches. The ICAB professionals will be instrumental to the Bangladesh Bank being procedural and evidence based reviewer, in minimizing the fraudulent activities and to ensure transparency and higher level of monitoring of the internal control system. I drew attention of the Chief Guest that CA firms can also play a significant role in auditing functions of the branches of the banks, adding the involvement of sufficient number of Chartered Accountants could scale up the true understanding of operation, thereby help towards minimizing relevant risks and stimulate the substantial revenue of banks. A total of 35 mid level Bangladesh Bank Officials including Joint Directors, Deputy Directors and Assistant Directors participated in the training and 11 ICAB Trainers conducted the classes. Topics ranging from Reporting, Statements, Accounting Policy, Statement of Cash Flow and Adaptation of International Reporting Standards, etc. were discussed on the 25-days training programme. After ending the training, certificates were distributed among the participants in a simple ceremony held on 26 in a local hotel where Ms. Nazneen Sultana, Deputy Governor, Bangladesh Bank was present as the Chief Guest. Training on Public Procurement Rules ICAB organized another 4 batches Training (9 th to 12 th batch) in on Public Procurement Rules (Advance Level from the Audit Perspective) for ICAB Members under the World Bank financed Project titled Promoting Public Private Partnership for Improved Quality Audit & Assurance. National Academy for Planning and Development (NAPD) in Dhaka conducted this training on 6, 7, & 13 for 9 th & 10 th Batches and on 20, 21 & 27 for 10 th & 11 th batches. In total 120 participants (30 participants in each batch) attended in the training program and received certificates. SAFA Events in Maldives A 6-Member ICAB Delegation headed by Vice President Nasim Anwar FCA participated in the 33 rd SAFA Board, different Committees/Task Force meeting and SAFA Conference in Maldives from 8 to 10. SAFA Committees and Task Force Meetings Following SAFA Committees and Task Force meetings were held on 8 at Paradise Island Resort, Maldives and ICAB nominated concerned Committee/Task Force Members attended in their respective meetings: SAFA Committee on Professional Ethics and Independence; SAFA Committee on International Affairs; SAFA Committee for Improvement in Transparency, Accountability & Governance(ITAG); SAFA Committee on Accounting and Auditing Standards; SAFA Committee on Harmonization of Fiscal and Tariff Regimes; SAFA Committee on Small & Medium Practices Committee (SMP); SAFA Committee on Quality Control; SAFA Task Force to develop Strategy to Combat Corruption in SAARC Region; SAFA Task Force to implement Basel-II Report in SAARC Countries; 33 rd SAFA Board Meeting Due to dealing important FRA issues on 1 st & 2 nd week of, I did not participate in the 33 rd SAFA Board 5

6 Meeting. In my absence, Vice President Nasim Anwar FCA led the ICAB delegation in the 33 rd SAFA Board meeting held on 9 at Paradise Resort Island, Maldives and contributed on different issues for strengthening the activities of SAFA including suggestion on professional matters which were given due weight by the SAFA Board. In order to assist me on FRA issues Mr. Syful Islam FCA Past President, Mr. Masih Malik Chowdhury FCA and Mr. AF Nesaruddin FCA opted to cancel their trip of Maldive Island. SAFA Conference in Male Organized by Auditor General Office of Maldives, a daylong SAFA Seminar on 'Efficiently Managing SMPs' was held at Nasundhara Palace Hotel in Male on 10. Nasim Anwar FCA, Vice President ICAB presented a technical paper titled Types of Audit Opinions in the Seminar. A large number of CPA Maldives and some other invited participants including senior officials of Auditor General Office of Maldives and Teachers of Maldives National University attended the seminar. ICAB Vice President s paper was largely appreciated by the participants. Other members of the ICAB delegates were Member Council & Past Presidents Abbas Uddin Khan FCA, M. Farhad Hussain FCA, ASM Nayeem FCA, Md. Humayun Kabir FCA and Deputy Secretary & SAFA Nodal Officer-ICAB Md. Nasrat Hasan. Discussion Meeting on latest SAFA Evaluation Criteria A discussion meeting on latest SAFA Evaluation Criteria for improving the quality of Published Accounts and Reports was organized by ICAB on 19 evening at ICAB Council Hall, Dhaka. Inaugurating the discussion meeting, I opined that this type of meeting will largely encourage our listed entities to improve their annual reports in near future and ensure more transparency & accountability among share holders. Under the Chairmanship of Abbas Uddin Khan FCA, Member Council & Past President ICAB and Chairman of RCPAR of Council-ICAB, 32 participants (mainly CFOs/Head of Accounts) from the listed companies and NGOs attended the discussion meeting. Mahbub Ahmed Siddique FCA, Director(Technical)-ICAB and Muhammad Aminul Hoque ACA, Partner, ACNABIN, Chartered Accountants through power point presentation discussed different sides of latest SAFA evaluation criteria under different categories like banks, NBFI, Insurance, NGOs, Public Sector and Corporate Governance disclosure checklist in the meeting. During answer and question session, participants shared their experience with the presenters. Some tips for improving the quality of Annual Reports were also discussed in the meeting. Courtesy Call with Chairman NBR A 7-Member ICAB Team headed by me made a courtesy call with Md. Ghulam Hussain, Chairman, National Board of Revenue (NBR) in his office on 20 June. We discussed on proposed Finance Bill -15 and drew his attention on certain conflicting sections such as Section 35(3A), 75(2)(d)(iv), 83AAA, 107F, 129A, 184A so far as it related to allowing cost and management accountants to audit and certify financial statements at par/along with those of chartered accountants and requested his valued judgment for maintaining clear distinction between CAs and CMAs through above sections of the proposed finance bill -15. An ICAB s letter along with section wise recommendations in this regard was also handed over to the Chairman during the meeting. NBR Chairman gave a patient hearing to ICAB team and assured to look after these issues before placing the Finance Bill -15 in the Jatia Shangshad. I am happy to share with the members that Government considered ICAB s appeal on this issue and deleted the proposed provisions allowing Cost & Accountants to audit the financial statements at per with CAs. Other members of the ICAB team were Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Member Council-ICAB Masih Malik Chowdhury FCA, Past President A K Chowdhury FCA and ICAB Secretary AKM Rahmatullah FCA. Knowledge Sharing Session on ISSAI ICAB, first of its kind, organized a Knowledge Sharing Session on the International Standards of Supreme Audit Institutions (ISSAI) for ICAB Members under the World Bank Financed Project Promoting Public Private Partnership for Improved Audit Quality Assurance on 20 in ICAB. ICAB World Bank Project Adviser Burhanuddin Ahmed FCA, OCAG Consultant Bob Shambler and International Consultant Rajesh Dayal conducted the training session. Total 76 qualified CAs participated in this Knowledge Sharing Session and received Certificates from ICAB. I hope that this session will enhance the capacity of participants at individual as well as at firm s level to be utilized with the opportunities in the Public Sector like consultancy, audit, review, investigations and staff appointments etc. Workshop on PFM Systems and Regulatory Framework A day long Workshop on Public (PFM) Systems and Regulatory Framework was held at ICAB Auditorium, CA Bhaban, Dhaka on 21 June. Mohammad Muslim Chowdhury, Additional Secretary, Ministry of Finance, GoB conducted the Seminar. Total 35 ICAB Members attended the workshop and received the certificates from ICAB after ending the workshop. CPD Seminar in Chittagong The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on Integrated Reporting: Challenges and Opportunities at its Conference Hall on 21. Prof. Md. Helal Uddin Nizami, Commissioner, Bangladesh Securities and Exchange Commission graced the occasion as the Chief Guest where I was present in the Seminar as the Special Guest. Prof. Md. Salim Uddin FCA of University of Chittagong conducted the Seminar as Session Chairman and 6

7 Anwaruddin Chowdhury FCA, Member Council & Past President ICAB presented the Keynote paper. Good number of ICAB members under Chittagong region attended the seminar and many of them took part in the discussion. CPD Seminar in Dhaka A CPD Seminar on Amendments in the Bank Companies Act 1991 and its Implications on External Audit of Banks was held in ICAB Auditorium, Dhaka on 25. Md. Abul Quasem, Deputy Governor, Bangladesh Bank graced the occasion as the Chief Guest. ASM Nayeem FCA, Member Council & Past President ICAB conducted the seminar as the Session Chairman and Sabbir Ahmed FCA, Partner, Hoda Vasi Chowdhury & Co, Chartered Accountants presented the keynote paper. In my address of welcome, I appreciated the changes in the Bank Company Act 1991 and drew attention to the Practicing Members as well as the Audit Firms who have great concern relating to the changes especially in BSA 39; that is relevant to their auditing responsibilities. I drew the attention of the Chief Guest that there are some differences between the reporting requirements as guided by adopted IFRS and Bangladesh Bank Regulations. I urged to discuss, resolve and to avoid the possibility of ambiguities in making Auditors opinion. Being the National Professional Body, ICAB is always keen to evaluate and review the changes made in the Accounting and Auditing standards including local regulations. The Chief Guest in his speech said that CAs are playing major role in uplifting of our economy and consequently their activities definitely affect our economy. He added that Bangladesh Bank considers the recommendations of ICAB while amendments to the act are made. He informed that Bangladesh Bank will eliminate ambiguities in provisions of the Banking Act very soon. He also spoke about the audit responsibilities that were stated in Companies Act and hoped that the trainings organized by ICAB for BB officials will meet the requirement of banking regulation at large. The Key-note speaker in his presentation said that audit is a dynamic and evolving matter, requires constant update of knowledge, rigorous learning and development programs for all level of staff including partners of Audit Firms. He further said that since Accounting and Auditing standards are changing, so as regulations, a practicing chartered accountant auditing a Bank requires to invest substantial time and resources to keep him updated on these changes. Through this continuing professional development, an auditor ensures delivery of high quality audit, he hoped. Good number of ICAB members under Dhaka region attended the seminar and many of them took part in the discussion. We Mourn Mozer Abid Vasi FCA (Enrl. # 29) passes away I was deeply shocked and saddened to hear the news of the death of Mozer Abid Vasi FCA (Enrl. # 29), one of the founding Partner of Hoda Vasi Chowdhury & Co., Chartered Accountants expired on 26 June in USA (Inna Lillahe...Rajeun). He was suffering Cancer for a long time. I, on behalf of the Council ICAB expressed profound grief on his demise and pay heartfelt tribute to the departed soul. In my condolence message as President ICAB, I expressed my deepest sympathy to the family members and prayed to Almighty Allah(SWT) for the eternal peace of the departed soul. Monthly Meetings of Council, Standing and Non-standing Committees The following meetings of the Council, Standing and Non-standing Committees and Sub-committees of ICAB were held during the month of : - 10 th Meeting for of Council-ICAB was held on 4 at 6.00 PM; - 11 th Meeting for of Council-ICAB was held on 26 at 4.00 PM; Standing Committees: - 1 st Meeting for of Articled Students Committee(ASC) of Council-ICAB was held on 1 at 6.30 PM; - Meeting of the Examination Committee of Council-ICAB was held on 4 at 5.00 PM; - 2 nd Meeting of 12-Member Sub-Committee for Articled Students Committee of Council-ICAB was held on 8 at 6.30 PM - 3 rd Meeting of 12-Member Sub-Committee for Articled Students Committee of Council-ICAB was held on 16 at 6.30 PM Non-Standing Committees: - Meeting of 5-Member Sub-Committee for Land Issue was held on 3 at 6.00 PM - 4 th Meeting for of Information and Communication Technology Committee (ICTC) of Council-ICAB was held on 3 at 6.00 PM - 4 th Meeting of the Sub-Committee of Continuing Professional Development Committee (CPDC) of Council-ICAB was held on 12 at 6.00 PM; - Meeting of 4-Member Sub-Committee on Notification of BSEC was held on 19 at 3.30 PM; - 3 rd Meeting of Review Committee for Published Accounts & Reports (RCPAR) of Council-ICAB was held on 18 June at 5.30 PM - Meeting of 5-Member Sub-Committee for Land Issue was held on 24 June at 6.00 PM - Meeting of 4-Member Sub-Committee on Notification of BSEC was held on 25 at 3.30 PM; - Meeting of 8 th Floor Completion Report was held 29 at 4.00 PM; Thanks and best regards! Showkat Hossain FCA President-ICAB 7

8 ICAB team Meets Finance Minister ICAB discussed the issues on proposed Reporting Act with Abul Maal Abdul Muhith, MP, hon ble Minister for Finance, GoB on 15 at latter s office. discussed the issue during a courtesy call paid by ICAB President Showkat Hossain FCA and his team. During the meeting they highlighted contradictory sections and provisions in the draft FRA such as its definition, registration, formation of Council, Standard Setting, Penalty, etc. They also explained ICAB s stand on these issues. Later, the team handed over an official letter regarding ICAB s opinion on draft, FRA to the Hon ble Minister. The Minister gave a patient hearing to ICAB team and assured that Government will not enact any new law conflicting with any existing Law. He also assured that before finalization of the FRA bill, Government would consider all professional bodies/stakeholders opinion/comments on this matter. The key issues for the discussion were definition of auditor, clarification of alleged complain about auditing by a professional body, formation of Council, inclusion of MoC, MoL, FBCCI, expert & CAs keeping in mind the very concept of conflict of interest, including CA s role in standard setting and provision penalties. Other members of the ICAB Team were Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Member Council Masih Malik Chowdhury FCA and Past President A K Chowdhury FCA. Workshop on Latest SAFA Evaluation Criteria Held at ICAB ICAB held a Workshop on latest SAFA Evaluation Criteria for improving the quality of Published Accounts and Reports ICAB on 19 evening at ICAB Council Hall, Dhaka. Inaugurating the discussion meeting, ICAB President Showkat Hossain FCA said that this type of meeting will largely encourage our listed entities for improving their annual reports in near future and ensure more transparency & accountability among share holders. He urged the chief financial officers (CFOs) of all respective companies to maintain proper standards in preparing their annual reports. "As the efforts will help you garner the Best Presented Reports award given by ICAB, maintaining continuation of the country's best performance at the South Asian Federation of Accountants (SAFA) Award will take out image to a new height," ICAB president Showkat Hossain FCA said. The workshop was arranged for the CFOs of different banks, non-banking financial institutions and multi-national organisations to make them more conversant to the criteria followed by two award review committees in selecting the best Presented Annual Reports for the awards. Abbas Uddin Khan FCA, ICAB council member and chairman of its Review Committee For published Accounts and Reports (RCPAR), presided over the programme while Mahbub Ahmed Siddiqui FCA, director (technical) of the ICAB, made a presentation on the criteria that are followed by the awards committees. In his presentation, Mr Ahmed pointed out some lackings which generally occur in preparing the annual reports, and discussed how the companies can avoid those problems and make their annual reports more efficiently. About 25 CFOs of different intuitions participated at the workshop. They also took part in a panel discussion. A total number of 32 participants (mainly CFOs/Head of Accounts) from the listed companies and NGOs attended the Workshop. 8

9 ICAB Team Meets NBR Chairman ICAB President Showkat Hossain FCA and his team met Md. Ghulam Hussain, Chairman, National Board of Revenue (NBR) in latter s office on 20. The team discussed about some sections of the proposed finance bill -15 with Chairman. Latter, an ICAB s letter along with section wise recommendations in this regard was also handed over to the NBR Chairman. The Chairman gave a patient hearing to ICAB team and assured to look after these issues before passing the Finance Bill -15 in Jatiayo Shangshad. Government considered the ICAB s recommendations and withdrew the sections allowing Cost & Accountants for Auditing Accounts Statements in the Finance Bill -15. Now only Chartered Accountants would have the authority to do the job. Other members of the ICAB team were Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, Member Council-ICAB Masih Malik Chowdhury FCA, Past President A K Chowdhury FCA and ICAB Secretary AKM Rahmatullah FCA. A few conflicting amendments was proposed in the Finance Bill -15 Bill by virtue of which cost and management accountants would be allowed to audit and certify financial statements along with chartered accountants. This is a clear violation of The Bangladesh Chartered Accountants Order, 1973 and The Cost and management Accountants Ordinance, 1977 which would also tantamount to violation of the national and international regulations, ethics, standards and distinctly different practices of both the chartered accountants and the cost and management accountants. The Institute of Chartered Accountants of Bangladesh was established under The Bangladesh Chartered Accountants Order, 1973{Presidential Order No. 2 of 1973) (herein after referred to as ICAB Order, 1973) for the purpose of regulating the profession of chartered accountants. This clearly identified the chartered accountants to be the only professionals qualified to render service of auditing or verifying financial transaction, books, accounts, records, financial statements, financial accounting out to the public as an accountant. They will also render professional services regarding matters of accounting method, systems, and techniques including management consultancy services. On the other hand The Cost and Accountants Ordinance, 1977 (Ordinance No. LII1 of 1977) (herein after referred to as CMA Ordinance, 1977) was promulgated only for the purpose of rendering services of costing or pricing of goods, services accounting and management accounting. Not only in Bangladesh alone, the Chartered Accountants are the only authorized professionals to audit and certify financial statements in countries around the world. In neighboring India, Pakistan, Sri Lanka and also UK and elsewhere in the world Cost and Accountants are neither allowed to audit nor certify any financial statements. Moreover as per section 18(4) of CMA Ordinance, 1977 the auditing of the Institute of Cost and Accountants of Bangladesh has to be conducted by a qualified Chartered Accountant of ICAB. Meeting with Finance Division Secretary ICAB team met Fazle Kabir, Secretary, Finance Division on 15 and briefed him about the limitations and conflicting parts of draft FRA. ICAB also sought his support and cooperation in this regard. Finance Secretary assured all possible cooperation to make this act more realistic. The ICAB team was comprised of member council & past presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA, member council Masih Malik Chowdhury FCA and past president A K Chowdhury FCA which was led by ICAB President Showkat Hossain FCA. Meeting with Secretary of Legislative & Parliamentary Affairs Division A 5-Member ICAB Team comprising Mr. Showkt Hossain FCA, President-ICAB, Member Council & Past Presidents Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md. Abdus Salam FCA and Past President A K Chowdhury FCA met Md. Shahidul Haque, Secretary of Legislative & Parliamentary Affairs Division, MOLJ&PA on 17 at latter s office and discussed about draft FRA issues. Secretary assured ICAB team that his Division will consider ICAB s opinion/comments on the draft FRA before the finalization of the draft. Admission as Fellow The following member has been admitted as Fellow of the Institute with effect from the date mentioned against his name: Name Effective Date Mr. Mohammad Ebadat Hossain Bhuiyan FCA (1007) 29 April Group Controller & Company Secretary United Group United Centre, House No. NW (J)-6 Road No. 51, Gulshan-2 Dhaka

10 Resource Persons: ICAB Academic Campus (Session: June-August ) Name of Resource Persons (Sections- I-V of PS-KL-10th Batch) Mr Abdullah-Al-Mamun ACA Mr Al-Amin Siddiki ACA Mr Kamruzzaman FCA Mr Kutub Uddin Ahmad FCA Mr Nirmol Chandra Sarker FCA Mr Anup Kumar Mukherjee ACA Mr Mahbub Alam FCA Mr Uttam Kumar Saha ACA Mr Muhammed Forkan Uddin FCA Mr Zakir Hossain FCA Mr Md Amirul Islam FCA Mr Abdullah-Al-Mahmud FCA Mr Md Raghib Ahsan FCA Mr Gopal Chandra Ghosh FCA Mr Muhammed Moshiur Rahman FCA Mr Shaheduzzaman Choudhury FCA Mr Shahriar Istiaq Halim ACA Mr Mohammad Showket Akber FCA Mr Masud Khan FCA (India)-GT Mr Mahmudul Hasan Khusru FCA Mr Md Jehad Uddin Mr Md Din Islam Miah FCA Mr Yasin Miah FCA Mr Md Saiful Hasan ACA Mr Mohammad Abdul Matin Mr Mohammed Sabir Ahmed FCA Mr Mohammed Zakaria FCA Mr Mohammad Redwanur Rahman FCA Mr Md Abu Bakar FCA Mr Masud Parvez FCA Mr Mohammad Salahuddin Chowdhury ACA Mr Shankar Chandra Karmaker FCA Mr Muraheb Malik Chowdhury ACA Mr Ranjan Kumar Bhowmik FCMA Mr Rakesh Saha FCA Mr Md Selim Reza FCA Mr Tariquzzaman Khan FCA Mr Mohammed Ariful Hoque ACA Mr Md Abdullah-Al-Amin ACA Mr Md Mashudur Rahman FCA Mr Md Fokrul Islam FCA Mr Shib Pada Dey FCA Mr Shekhar Kumar Halder ACA Mr Faker Ahmed ACA Mr Mohammad Aslam FCA Mr Amiya Bhousan Bhowmik ACA Mr S M Rahmatul Mujeeb ACA Mr Md Mahamud Hosain FCA Mr Jone Kumer Gupta ACA Dr Jakerul Abedin Mr Badal Chandra Rajbangshi ACA Mr Shamim-Al-Mamun ACA Mr Mohammad Rostam Hossain ACA Dr ASM Hossain Tayiab FCA Mr Sk. Ashik Iqbal ACA Mr Muhammad Aminul Hoque ACA Mr Md Arshadul Kabir ACA Mr Bibhuti Bushan Biswas ACA Mr Mohammad Nazim Uddin ACA Mr Md Lutfar Rahman ACA Mr Mustaq Ahammed FCA Mr Mohammad Abdul Ohab Miah FCA Mr Md Razib Hossain ACA Mr Wahid Murad ACA Mr Tanvir Hasan ACA Mr Palash Mollick Mr Md Jamal Uddin ACA Visiting Faculties (for Ongoing Session) Name of Visiting Faculties Mr Dewan Nurul Islam FCA Mr ABM Azizuddin FCA Mr Anwaruddin Chowdhury FCA Mr Md Syful Islam FCA, FCMA Mr Md Abdus Salam FCA Mr Gopal Chandra Ghosh FCA Mr Masud Khan FCA-India Mr Ranjan Kumar Bhowmik Mr Abdul Khalek FCA Mr Md Amirul Islam FCA Mr Sabbir Ahmed FCA (E-770) Mr Mohammad Mehdi Hasan FCA Mr A H Mostafa Kamal Khan Dr. Jakerul Abedin Mr Md Jehad Uddin ICAB Academic Campus News The Pre-Examination Evening Coaching Classes for Professional Stage-Knowledge Level (10th Batch, Sections: I-V) started from Sunday, 01 for Examination Session: November- December. The session will continue up to 28 August. There are 485 students in the Session of June- August. As a result, the cumulative number of participated students of ICAB new curriculum has been added to 7,126 till June 25,. On the other hand, a- new session of classes for the Students of Professional Stage-Application Level (9th Batch) & Advanced Stage (8th Batch) will commenced from Monday, 01 September at ICAB Academic Campus. A Notice has already been issued in this regard and all concerned students are advised to enroll the classes by 27 August at ICAB Academic Campus. The Programme on the mentioned Levels of classes have been organized by the Additional Director at ICAB Academic Campus under the supervision of the Vice President (Education & Training)-ICAB, Mr. Dewan Nurul Islam FCA with the consent and guidance of the Chairman of Board of Studies-ICAB, Mr.ABM Azizuddin FCA & President- ICAB, Mr Showkat Hossian FCA. Announcement (Next Session of Classes) The New Session (September-November ) for the Students of Professional Stage-Knowledge Level (10th Batch, Section # : 6 & 7), Professional Stage-Application Level (9th Batch) and Advanced Stage (8th Batch) will start from Monday, 01 September at ICAB Academic Campus. A Notice has already been issued in this matter, and all the concerned students are advised to enroll the classes by 27 August at ICAB Academic Campus. 10

11 PFMRF Workshop for The Institute of Chartered Accountants of Bangladesh (ICAB) organised Workshop on "Public (PFM) Systems and Regulatory Framework" for its members at ICAB Auditorium on 21. Md. Humayun Kabir FCA Council Member and Past-President-ICAB was the session chairman in the Workshop. Mohammad Muslim Chowdhury Director (Additional Secretary) Component 2: Public System Deepening MTBF and Strengthening Accountability Project Finance Division, Ministry of Finance was the resource person. ICAB Council Member and Past President Md Syful Islam FCA distributed certificates to the participants at the end of the workshop. Records of Training & Workshop organized By ICAB LPD-ICAB has organized a total 24 (Twenty Four) number of workshops and trainings in the last six months (January to June ). A half yearly report of the workshop & training is hereunder furnished: Sl. Period& Name of the Training No of Participants Core Contents Facilitators Venue # 1. for The Officials of NGOs- MFIs 2. for The Officials of NGOs- MFIs 3. for The Officials of NGOs- MFIs 4. for The Officials of NGOs- MFIs 5. for The Officials of NGOs- MFIs 6. for The Officials of NGOs- MFIs Duration 1-2 February, 4-5 February, 8-9 February, February, February, February, 7. QAD Workshop March 8. Workshop on "The Art of Leadership" (1st Batch) 9. Workshop on "Anti-Money Laundering" March, 2 Days Long 7 April, 1 Day Officials of NGOs-MFIs Officials of NGOs-MFIs Officials of NGOs-MFIs Officials of NGOs-MFIs Officials of NGOs-MFIs Officials of NGOs-MFIs & Article Students 25 (Twenty five) 33 (Thirty three) 54 (fifty four) for The Officials of NGOs-MFIs How to Maintain Quality in Audit and Assurance "The Art of Leadership" Anti-Money Laundering & Terrorist Financing Prothom Alo Jobs & ICAB Members Trainer of The Bangladesh Bank, Dhaka 11

12 Sl. # Name of the Training 10. Working session on ICAEW ACA Advanced Stage Classes- 11. Training Programme on Public (Treasury Rules, General Rules, Budget etc.) (1st batch) for Qualified CAs of ICAB 12. Public (Treasury Rules, General Rules, Budget etc.) (3rd Batch) for tomorrow s members 13. Working session on ICAEW ACA Advanced Stage Classes- 14. Workshop on "The Art of Leadership" (2nd Batch) 15. Training Programme on Public (Treasury Rules, General Rules, Budget etc.) (5th Batch) for Qualified CAs of ICAB 16. Workshop on "The Art of Leadership" (3rdBatch) 17. "Anti-Money Laundering" "Anti-Money Laundering" "Anti-Money Laundering" 20. IFRS & IAS Training for Bangladesh Bank Officials 21. Written test for the post of Audit Officer for Pubali Bank Ltd. 22. Public Public Procurement Rules (Advance level from the Audit Perspective), (9th Batch) 23. Public Procurement Rules (Advance level from the Audit Perspective), (11th Batch) for Qualified CAs of ICAB 24. Workshop on "Public (PFM) Systems and Regulatory Framework". Period& Duration 9 April, 1 Day April, April, 18 April, 1 Day April May May 27 May, 1 Day 28 May, 1 Day 29 May, 1 Day 01 June to 26 June, No of Participants Core Contents Facilitators Venue, No.16 (Sixteen) & Partly Qualify Student, No. & Partly Qualify Student, No.,No.26 (Twenty six) 31 (Thirty) & Partly Qualify Student 33 (Thirty three) ICAB's Employees 29 (twenty five) 51 (Fifty one) 43 (Forty three) Bangladesh Bank Officials, 35 (Thirty five) 06 Total Number of Candidate , 07 & 13 & Partly Qualify Student 20 Total Number of Candidate Total Number of Candidate 35 ICAEW ACA Advanced Stage Classes- Public Public ICAEW ACA Advanced Stage Classes- "The Art of Leadership" Public "The Art of Leadership" Anti-Money Laundering & Terrorist Financing Anti-Money Laundering & Terrorist Financing Anti-Money Laundering & Terrorist Financing Mr. Jonathan Worrell, Tutor- KAPLAN, UK Resource Persons, NAPD Resource Persons, NAPD Mr. Justin West, Tutor-KAPLAN, UK Prothom Alo Jobs & ICAB Members Trainer of The World Bank, Dhaka, Bangladesh Trainer of The World Bank, Dhaka, Bangladesh Trainer of The World Bank, Dhaka, Bangladesh National Planning Academy (NAPD) NAPD NAPD ICAB Council Room (8th Floor) ICAB Auditorium (9th Floor) ICAB Auditorium (9th Floor) IFRSs & IASs Written test for the post of Audit Officer Public Procurement Rules "Public Sector Auditing Standards" "Public (PFM) Systems and Regulatory Framework". and Employees Mr. Burhanuddin Ahmed FCA, Project Adviser, ICAB Bob Shambler, Consultant, OCAG Rajesh Dayal, International Consultant Mr. Mohammad Muslim Chowdhury Director (Additional Secretary) ICAB Central Library (7th Floor) NAPD & ICAB Council Room (8th Floor) ICAB Auditorium (9th Floor) 12

13 Sl. Period& # Name of the Training Duration Up Coming Training After Holy Ramadan 25. "ERP Software (SAP- FICO)" (1st batch) 26. "ERP Software (SAP- FICO)" (2nd batch) A 25-day long Training Program (2 nd Phase) on IFRS and IAS for Bangladesh Bank Officials was held from 1 June to 26 at Training Room (6 th Floor) of CA Bhaban, Dhaka. Md. Abul Quasem, Deputy Governor, Bangladesh Bank 09 August to 05 September 11 October to 8 November August to September 27. for The Officials of NGOs- MFIs 28. Workshop on "The Art of Leadership" 20-21September,2 014(4th Batch) pragmatic technical knowledge on Accounting especially on IFRS and hoped that training organized by ICAB for BB officials will meet the requirement of banking regulation at large. No of Participants Core Contents Facilitators Venue Total Number of Candidate 20 Total Number of Candidate 20 Officials of NGOs-MFIs 375 (three hundred seventy five) Members- ICAB,35Participants Training on IFRS and IAS for BB Officials SAP Training SAP Trainer SAP Training SAP Trainer Art of Leadership floor Topics ranging from Reporting, Statements, Accounting Policy, Statement of Cash Flow and Adaptation of International Reporting Standards, etc. were discussed on the 25-days training programme. After ending the training, certificates were distributed among the participants in a simple ceremony held on 26 at a city local hotel where Ms. Nazneen Sultana, Deputy Governor, Bangladesh Bank was present as the Chief Guest. Showkat Hossain FCA, President-ICAB, Md. Syful Islam FCA, Past President & Council Member-ICAB and Md Abdus Salam FCA, ast President & Council Member-ICAB were present in the occasion. Showkat Hossain FCA, President-ICAB, Nazneen Sultana, Deputy Governor, Bangladesh Bank and Council Member and Past Presidents Md. Syful Islam FCA and Md Abdus Salam FCA pictured attending a Certificate awarding ceremony of a month-logn training on International Reporting Standards (IFRS) and International Accounting Standards (IAS) for Bangladesh Bank Officials. inaugurated the Training Program as the Chief Guest on 1 st evening at ICAB auditorium. Md. Abul Quasem in his speech said that Bangladesh Bank is keenly interested to achieve advanced and We Mourn Mozer Abid Vasi FCA A total of 35 mid level Bangladesh Bank Officials including Joint Directors, Deputy Directors and Assistant Directors participated in the training. Eleven number of ICAB Members conducted the classes. Mozer Abid Vasi FCA (Enrlment No. 29), died on 26 in USA (Innah Lillahe... Rajeun). He had been suffering Cancer for a long time. On behalf of the Council members of the Institute, President-ICAB expressed deep sorrow at the demise of Mr. Mozer Abid Vasi and prayed to Almighty Allah, the most merciful for salvation of his departed soul and give the bereaved family the strength and courage to bear the irreparable loss. ICAB and World Bank Held Meeting on ROSC Progress Report A meeting between technical team of ICAB and representatives of World Bank was held at ICAB Council Hall on 24 to discuss the updates of the ROSC report. The ROSC report was introduced by the World Bank in 2003 Bangladesh perspective and it pointed out 20 recommendations for greater transparency and accountability in country s accounting, auditing and the financial sectors. ICAB team informed that the Institute in collaboration with the government, has implemented 19 recommendations out of 20. They also informed that over the years ICAB has remarkably improved on setting accounting standards and performing auditing. In this perspective the World Bank representative said the World Bank is considering further review of the report. Nurul Faruk Hasan & Co becomes Member Firm of BDO Nurul Faruk Hasan & Co (nufhas) has become a Member Firm of BDO International Limited, a UK Company Limited by guarantee, with effect from 01. BDO is the 5th largest network of audit, tax and advisory firms in the world. BDO s global network spans over 144 countries with over 56,000 people working through 1,200 offices worldwides (as at 30 September 2013) to provide seamless services to its valued clients worldwide. 13

14 ICAB participates in SAFA Board Meeting, SAFA Conference and Different Committee Meetings in Maldives A6-Member ICAB delegation headed by Vice President Nasim Anwar FCA participated in the 33rd SAFA Board, different Committees/Task Force meeting and SAFA Conference in Maldives from 8 to 10. They attended the SAFA Committees and Task Force meetings; SAFA Committee on Professional Ethics and Independence; SAFA Committee on International Affairs; SAFA Committee for Improvement in Transparency, Accountability & Governance(ITAG), SAFA Committee on Accounting and Auditing Standards, SAFA Committee on Harmonization of Fiscal and Tariff Regimes, SAFA Committee on Small & Medium Practices Committee (SMP), SAFA Committee on Quality Control, SAFA Task Force to develop Strategy to Combat Corruption in SAARC Region, and SAFA Task Force to implement Basel-II Report in SAARC Countries. The delegation led by, Vice President Nasim Anwar FCA participated in the 33rd SAFA Board meeting held on 9 at Maldives and contributed on different issues for strengthening the activities of SAFA including suggestion on professional matters which were given due weightage by the SAFA Board. They also participated a daylong SAFA Seminar on 'Efficiently Managing SMPs' organized by Auditor General Office of Maldives in Male on 10. Nasim Anwar FCA, Vice President ICAB presented a technical paper titled Types of Audit Opinions in the seminar. A large number of CPA Maldives Members and some other invited participants including senior officials of Auditor General Office of Maldives and Teachers of Maldives National University attended the seminar. ICAB Vice President s paper was largely appreciated among the participants. Other members of the ICAB delegates were Member Council & Past Presidents Abbas Uddin Khan FCA, M. Farhad Hussain FCA, ASM Nayeem FCA, Md. Humayun Kabir FCA and Deputy Secretary & SAFA Nodal Officer-ICAB Md. Nasrat Hasan. CRC Holds CPD Seminar on 'Integrated Reporting: Challenges and Opportunities' The Chittagong Regional Committee (CRC) of ICAB organized a CPD Seminar on 'Integrated Reporting: Challenges and Opportunities' on Saturday, 21 at the Conference Hall of ICAB-CRC office, Chittagong. Professor Md. Helal Uddin Nizami, Commissioner, Bangladesh Securities and Exchanges Commission graced the occasion as Chief Guest, Mr. Showkat Hossain FCA, President-ICAB & Resident Partner, Hoda Vasi Chowdhury & Co., Chartered Accountants was present as Special Guest and Mr. Md. Salim Uddin MBA, FCMA, FCA, Professor, Department of Accounting & Information Systems, University of Chittagong was Session Chairman. Mr. Anwaruddin Chowdhury FCA, Member Council & Past President, ICAB and Director CAPA Board presented the valuable Key-note paper in the seminar. A total number of 61 attended the seminar. Council Member & Past President-ICAB Mr. Anwaruddin Chowdhury FCA delivering Key-note Paper in the CPD Seminar held at Chittagong. Published by the Editorial Board of the Council, The Institute of Chartered Accountants of Bangladesh (ICAB) 100 Kazi Nazrul Islam Avenue, Dhaka 1215; Tel , , , Fax: secretary@icab.org.bd Website: 14 Chittagong: HBFC Building (3rd Floor), 1/D, Agrabad Com. Area, Chittagong, Bangladesh Tel: Fax: icabctg@spctnet.com UK Chapter: Suite One, 2 Haydons Road, London SW19 1HL, United Kingdom Tel: Fax: frahman101@aol.com North American Chapter: 5 Massey Square, Suite-2519, Toronto, Ontario M4C 5L6, Canada Tel: Fax: shahed.sharfuddin@td.com