No alternative to accurate audit reports, says finance minister

Finance Minister Amir Khosru Mahmud Chowdhury has said that many institutions were listed on the stock market through false representations or inaccurate reports as financial institutions became almost ineffective in recent years, allowing huge amounts of money to be withdrawn from the banking sector.

The minister made the remarks while speaking as the chief guest at the FAR Summit titled “Trustworthy Financial Reporting: What Really Matters”, organised by the Financial Reporting Council (FRC) at the Pan Pacific Sonargaon Hotel in the capital on Wednesday.

Amir Khosru stated that the government’s policymakers and professionals have pledged to work together to restore investor confidence by ensuring transparency and accountability in the financial sector. 

He noted that Bangladesh’s economy has gone through a difficult period in recent years, during which almost every institution became ineffective.

The Finance Minister emphasised the need to create an ecosystem with complete transparency. He called upon members of the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) to act responsibly in presenting a transparent financial picture from their respective positions.

He pointed out that the world’s largest fund managers, including JP Morgan, are interested in investing in Bangladesh, but there is no alternative to accurate and reliable audit reports to gain their trust.

Speaking as a special guest, Prime Minister’s Adviser on Finance and Planning Dr Rashed Al Mahmud Titumir said that genuine entrepreneurs had suffered due to the distortion of information in the past, while those who provided more false information enjoyed unfair advantages.

Dr Titumir observed that foreign direct investment had not come as expected because international reports raised questions about the reliability of Bangladesh’s financial reporting system.

He stressed that audit firms must not act as obedient documents of any client. The government aims to ensure transparency and accountability so that all investors, big and small, feel safe. 

The FRC has been given full legal powers and administrative independence to take strict action against intentional misreporting and manipulated valuations.

Speakers at the event agreed that building a strong and stable economy requires the creation of a “trust market” through transparent financial information, reliable audits, and a strong regulatory system.

The event was chaired by Dr Md. Khairuzzaman Majumder, Secretary of the Finance Division at the Ministry of Finance. 

Among those present were BGMEA President Mahmud Hasan Khan, BTMA Vice President Abul Kalam, ICAB President Kawsar Alam, and ICMAB Acting President Md. Roknuzzaman.