Finance Bill 2014
Auditors to face penalty for false reports
The finance bill 2014 has proposed to impose penalty on any chartered accountant and cost and management accountant if he or she is found preparing false and incorrect audit report. National Board of Revenue officials said that the provision for penalty on auditors was included as many of them were engaged in preparing false audit report of different companies through which they evade taxes.
The finance bill proposed that the NBR will impose penalty worth Tk 50,000 to Tk 2 lakh if any of the chartered accountant, cost and management accountant is found preparing false and incorrect audit report.
The same penalty will be imposed on the auditor if they certify any accounts which are nor maintained according to the Bangladesh Accounting Standard and reported in accordance with the Bangladesh Financial Reporting Standard.
The government has recently taken a move to enact a Financial Reporting Act to streamline the audit reporting but the move has slowed down because of heavy pressure from the chartered accountants.
The finance bill, which is expected to be passed with the national budget in the last week of June, also proposed that enterprises and professionals having annual gross sales or receipts over Tk 5 crore will have to submit their audited account statements to the National Board of Revenue.
On the other hand, every company will have to maintain their accounts and prepare their financial reporting following the Bangladesh Accounting Standard and Bangladesh Financial Reporting Standard to ensure accuracy of accounts statements, they said.
Officials said that they took the move to bring discipline in account maintenance system of the companies and bring enterprises and professionals with huge turnover under the proper reporting system.
Many companies prepare false and incorrect accounts, and financial reports without following proper accounting and reporting standard and concealing their actual income to evade taxes.
-With New Age input
