Monthly News Briefing from the Institute of Chartered Accountants of Bangladesh

ICABICAB NEWS BULLETINMay 2015

Number 307

ISSN 1993-5366

he country’s prominent economists and experts participated in a ‘Roundtable on 2015-16 Pre-Budget Discussion jointly

organized by the Institute of Chartered Accountants of Bangladesh (ICAB) and the Daily Prothom Alo on 17 May 2015 at Prothom Alo Conference Room.

Drawing a base line of the discussion, ICAB President Masih Malik Chowdhury FCA in his welcome address said that Tax-payment by only ten lac people of the country is truly disappointing. He also

said that at the end of sixth five years plan, the country achieved only 6.51 percent growth less than the targeted digit. However in some sectors

Bangladesh had achieved MDGs target. The ICAB Chief was also skeptical about attaining the GDP growth of 7.0 percent target at the beginning of government’s seventh five years’ plan. Mr. Chowdhury requested ICAB Council Member and Past President Md. Humayun Kabir FCA to moderate the discussion.

Former Adviser of Caretaker Govt. Dr. Akbar Ali Khan said "We need good governance and policy consistency in the country to attract Foreign Direct Investment (FDI).

The upcoming budget for 2015-16 should have strong measures to address the weak areas in the economy, he cautioned.

T

01

03

03

04

08

09

10

11

11

1212

12

13

13

13

14

13

14

14

14

15

151617

20

20

ICAB-Prothom Alo Roundtable on...ICAB President participated in Bonik...President in Bangladesh Bank Interview Board...President’s Communica-tion May 2015Practicing Members' Conference on Quality...UNCDF Delegates visit ICABTraining and Workshops in May 2015ICAB organised CFOs Conferences...Mahsudur Rahman to compete in Asian...IFAC-ICAB TeleconferenceICAB President in Finance Division...Teleconference between ICAB and ICAEW, UK8th Council Meeting of ICABShagufta Yasmin Amily, MP, Ex-whip paid...ICAB President in Audit Training ProgramICAB Officials visit ICA Sri LankaICAB donates for Nepalese Earthquake VictimsICAB President met Kailash SatyarthiICAB-NAC Management Committee arranged...Members’ Achievement - Congratulations ICAB President attended Discussion...CongratulationsCampus NewsDRC-ICAB Elects Chairman & Secretary...Members' Conference on ‘Anti-Money...Schedule of Trainings and Workshops...

ICAB-Prothom Alo Roundtable on 2015-16 Pre-Budget Discussion

Former Adviser to the Caretaker Government Dr. Akbar Ali Khan, former NBR Chairman Dr. Md. Abdul Mazid, former BSEC Chairman Faruq Ahmad Siddiqi, ICAB President Masih Malik Chowdhury FCA, BIBM Director Dr. SM Ahsan Habib, AmCham President Aftab-ul Islam FCA, ICAB Council Member & Past Presidents Abbas Uddin Khan FCA, Md. Humayun Kabir FCA, Md. Syful Islam FCA, Md Abdus Salam FCA, Prothom Alo Associate Editor Abdul Qayyum, ICAB Vice Presidents A F Nesaruddin FCA, Kamrul Abedin FCA, Secretary A K M Rahmat Ullah FCA and Director (Technical) Mahbub Ahmed Siddique FCA seen at ICAB-Prothom-Alo Roundtable 2015-’16 Pre-Budget Discussion on 17 May 2015

Masih Malik Chowdhury

Dr. Akbar Ali Khan

2

May 2015 No. 307

Former Chairman of Bangladesh Securities and Exchange Commi- ssion Dr. Faruq Ahmad Siddiqi said, adequate infrastructure and

consistency in policy are the pre-requisites for increasing investors’ confidence and to attract investment.

Citing the disparity in tax rates among the corporate, banks and financial institutions, he said that it might be an ambitious budget. He cautioned that it should have an implementable framework, otherwise, people will lose their confidence. Thereby, it would hinder the investment and development, he stated.

Former Chairman of the National Board of Revenue (NBR) Dr Muhammad Abdul Mazid told in the discussion that the supp lemen ta ry

budget was being ignored from the discussion. It (such discussion) was JS most important even for taking effective measures about the next budget, he stated. Laying stress on development and having confidence in the stock market, he said, "Without confidence, the stock market would not strengthen and sustainability maintained in the

long run."

President of the American Chamber of Commerce (AmCham) Aftab ul-Islam FCA said that the local investors were not

making investment amid uncertainty and apprehension in the country, let alone the foreign investors.

He urged the government to enhance confidence among the local businesses

first. And "then the foreign investors will follow them", he mentioned.

The AmCham boss said that the government should take steps to restore the confidence through providing safety and security of investments of both the local and foreign investors. Let alone foreign direct investment, domestic investment too is now stagnant due to lack of confidence, he said. Adding that no indicator would bring benefits to the people unless congenial atmosphere for the investment situation was there. “Investment is the backward linkage for the vision of becoming a middle-income country by 2021,” he added.

Director of Bangla-desh Institute of Bank Management Dr. SM Ahsan Habib suggested that the govern-ment could set up a commodities

exchange system, as there was no visible market place for agricultural products in the country.

Vice President AF Nesaruddin FCA posing a query said, why the foreign investors would come to our country paying 35 percent corporate tax. He stated, imposition of tax by

force is not the way to increase the collection of tax. For that he suggested for lower rate of tax and widening of tax net.

Vice President Kamrul Abedin FCA said that corruption in land registration has spread which needs to be dealt with. Government

should introduce tax on market rates of the land instead of existing Mouza rate,

he added. This would increase revenue of the government he remarked.

About government’s new pay scale, ICAB Council Member & Past President Abbas Uddin Khan FCA said that additional money required for

implementing the new pay scale would not possibly be arranged from the government’s exchequer. As a result, government would have to borrow from the banks which would aggravate the inflation, he added.

ICAB Past President and General Secretary of Bangladesh E c o n o m i c Association Dr. Jamaluddin Ahmed FCA said that there

was no progress in PPP since its inception in 2009. Government is borrowing money from the foreign countries instead of attracting them for investment in the country, he added. He suggested for increasing tax revenues from internal resources and widening of the tax base.

ICAB Council Member & Past President Md Syful Islam FCA said that Budget is prepared for ensuring quality of lives of the mass

people. What we see, allocation in education, health, roads & communication, etc. were being plundered due to absence of proper guidance and monitoring system, he mentioned. He suggested for good governance in maintaining recording processes of mega projects to ensure the best use of resources.

ICAB Council Member & Past President Md Abdus Salam FCA underlined the need for ensuring accrual-basis of

Dr. Faruq Ahmad Siddiqi

Dr. SM Ahsan Habib

Dr. Jamaluddin Ahmed

AF Nesaruddin

Kamrul Abedin

Dr Muhammad Abdul Mazid

Aftab ul-Islam

Abbas Uddin Khan

Md Syful Islam

3

May 2015No. 307

accounting and quality audit system in the public entities for efficiently spending and managing the large sums of resources allocated

in the national budget. He said that under Public Private Partnership (PPP), effective cooperation between the Office of Comptroller and Auditor General (OCAG) and the ICAB could ensure better utilization of revenues. He said that through Improved Public Sector Financial

Management and Auditing, accountability and transparency could be ensured in allocation and implementation of the National Budget.

Prothom Alo Associate Editor Abdul Qayyum demanded the withdrawal of customs duty and value-added tax on import of

newsprint for newspaper industry.

ICAB Council Member & Past President Md. Humayun Kabir FCA moderated the program. He gave outline for discussion to the

respected speakers. He effectively managed the time allocation and completed the incompleteness of the program with his wisdom and wrapped the discussion eloquently and thanks everyone for sharing their views on this important annual event.

Md. Humayun Kabir

Abdul Qayyum

ICAB President participated in Bonik Barta-CSE Organized Conference on Capital Market

CAB President Masih Malik Chowdhury FCA participated as discussant in the Conference on

‘Bangladesh Economy and Capital Market Development’ organized jointly by Daily Bonik Barta and Chittagong Stock Exchange (CSE) at Ballroom of Pan Pacific Sonargaon Hotel, Dhaka on 25 May 2015.

Other discussants of the conference were Former Adviser to the Caretaker Government & Ex-BSEC Chairman Dr. AB Mirza Azizul Islam, BSEC Ex-Chairman Faruk Ahmed Siddiqi, Central Depository Bangladesh Limited Chairman Sheikh Kabir Hossain.

Economic Affairs Adviser to the Prime Minister Dr. Moshiur Rahman, State Minister for the Ministry of Finance and the Ministry of Planning MA Mannan MP and BSEC Chairman Prof. Dr. Kairul Hossain were present as the guests in the Conference. The Chiefs of different organizations and stakeholders relating to Capital Market were present in the Conference in large number.

ICAB President Masih Malik Chowdhury FCA said that the interest rate on Bank’s loans should be made to a single digit. Different issues were arising and size of the market is also expanding he noted.

In this situation, as a Regulator, BSEC has no alternative but to increase its capacity, he opined. He also said that with short term planning, the market could not be stabilized.

Capital Market as a source of capital mobilization, contributes largely to accelerate the growth of the country’s

economy, he mentioned. Besides, it contributes to the establishment of corporate good governance. To attain the future prospect of economy, there is no alternative to a sustainable capital market.

The Daily Bonik Barta and the CSE jointly organized the Conference.

ICAB President Masih Malik Chowdhury FCA attended the Interview Board of Bangladesh Bank as member on 12 May 2015 at BB’s office. Chaired by the Governor, Bangladesh Bank,

the Board was formed to appoint Financial Advisor/ Professional Accountant in Audit Committee of the Board of Directors of the Bank through an Interview.

President in Bangladesh Bank Interview Board for Financial Adviser

I

Md Abdus Salam

4

May 2015 No. 307

Dear Fellow Members,

Assalamu Alaikum and Greetings to you all,

To educate, train and equip our members further by fostering ethical standards in profession are the features enshrined in my domain of action plan envisaged for the year 2015. The plan has later been passed through the ICAB Council. As President of ICAB, the Regulator of Accounting Profession, my conviction is to reach the envisioned boundary of goals. This means I have to lead ICAB to fulfill my commitments to the Profession in particular and the Nation at large.

Apart from these, regulating the country’s accounting profession in right manner, in the present day perspective is the prime concern of ICAB. With that end in view ICAB with its time & resources is dedicating its full efforts to perform the noble duty with excellence, honesty and integrity. Those efforts of ICAB since the beginning of 2015 will soon start reaping benefits for the profession, government and other stakeholders. Regulators have always been supportive to ICAB to help regulate accounting profession. ICAB warmly appreciates their proactive & supportive role. They are expressing their willingness to join hands with ICAB by coming forward in addressing some intricate national issues. The time is not far away when the people would

ascertain the role of CAs in the development & transformation of economy, society & cultural process of country’s macro perspective.

This month we had the country’s renowned think tanks, economists and the Regulators’ ex-bosses in our various programmes. We have planned to organize a number of programs where citizens of wisdom dignity & civil society would join hands with ICAB to create awareness amongst the people on some business issues, concerning global & indigenous contexts. We started this month with the significance of the May Day. We can reckon way back in 1882, the movement for human rights of labour incepting from Chicago, USA. The spirit emanating from establishing the rights of labour around the World veined through us for discipline all around. In such a backdrop I urge my fraternity, my fellow members of the Institute to regiment their all out efforts for uplifting CA Profession to newer heights.

1422 m‡bi ̂ R‡ôi cÖvwšÍK A‡a© Avgiv DcbxZ

n‡qwQ| cÖK…wZi PvÂj¨ ˆekv‡L †hfv‡e

†e‡owQj-ZvI Pjgvb| ZvB wek¦ Kwei fvlvq

ewj-

ÒGwK AvKzjZv f~e‡b, GwK PÂjZv ce‡Y \

GwK gayigw›`i imivwk AvwR k~Y¨Z‡j R‡j fvwm,

S‡i P›`ªK‡i GwK nvwm, dzj, MÜ jy‡U MM‡Y \

--- †n‡iv c~Y©weKwkZ AvwR gg AšÍi my›`i ¯^c‡b \Ó

President’sCommunication

May 2015

1422 m‡bi ˆR‡ôi

cÖvwšÍK A‡a© Avgiv DcbxZ

n‡qwQ| cÖK…wZi PvÂj¨

ˆekv‡L †hfv‡e

†e‡owQj-ZvI Pjgvb|

ZvB wek¦ Kwei fvlvq ewj-

GwK AvKzjZv f~e‡b,

GwK PÂjZv ce‡Y \

GwK gayigw›`i imivwk

AvwR k~Y¨Z‡j R‡j fvwm,

S‡i P›`ªK‡i GwK nvwm,

dzj, MÜ jy‡U MM‡Y \

--- †n‡iv c~Y©weKwkZ AvwR

gg AšÍi my›`i ¯^c‡b \

5

May 2015No. 307

As always, I am now highlighting our monthly activities of May that have taken place held under the ambit of action plan 2015 of the Institute.

Activities of the Month-May

ICAB-Prothom Alo Roundtable on 2015-’16 Pre Budget Discussion

ICAB and the Daily Prothom Alo on 17 May 2015 jointly organized ‘Roundtable on 2015-’16 Pre Budget Discussion at Prothom Alo Conference Room where a number of prominent economists and experts participated. In my welcome deliberation, I drew a base line of the recent economy for discussion. I then invited our Council Member & Past President Mr. Md Humayun Kabir FCA to moderate the session.

We pay our gratitude and thanks to the participants including specially Dr. Akbar Ali Khan, former Chairman of Bangladesh Securities and Exchange Commission Mr. Faruq Ahmad Siddiqi, former Chairman of the National Board of Revenue (NBR) Dr. Muhammad Abdul Mazid, President of the American Chamber of Commerce (AmCham) Mr. Aftab ul-Islam FCA, BEA Secretary Dr. Jamaluddin Ahmed FCA, Director of Bangladesh Institute of Bank Management Dr. SM Ahsan Habib whose participation made the program more illuminating for the readers.

I also thank our Vice Presidents Mr. AF Nesaruddin FCA, Mr. Kamrul Abedin FCA , Council Members & Past Presidents Mr. Abbas Uddin Khan FCA, Mr. Md. Syful Islam FCA and Mr. Md Abdus Salam FCA for representing ICAB in the discussion. They all poured thoughtful comments and suggestions into it for the upcoming budget. Certainly the government would be benefited from this discussion, should it like to.

I also thank the Daily Prothom Alo for being a part of our endeavor and also the print & electronic media representatives for its proper coverage with due importance.

ICAB management also handled it efficiently. I owe my thanks to them.

Members' Conference on ‘Anti-Money Laundering and Counter-Terrorist Financing Measurers of Financial and DNFBP Sectors: Bangladesh Perspective’

A members' conference on ‘Anti-Money Laundering and Counter-Terrorist Financing Measurers of Financial and

DNFBP Sectors: Bangladesh Perspective’ was held at Auditorium on 20 May 2015. In the conference, we had Bangladesh Bank (BB) Governor Dr. Atiur Rahman as Chief Guest, Additional Attorney General Mr. Murad Reza and Anti-Corruption Commission (ACC) Director General (DG) Brigadier General (Retd) Mr. M H Salahuddin as special guests. Mr. Md. Syful Islam FCA, Council Member and Past President came up with his keynote paper in the seminar. The members of the Institute have reaped out benefits from the CPD event to contribute largely to the economy of the country, I believe.

It was my privilege to conduct the panel discussion of the seminar. It was addressed by Mr. Murad Reza, Additional Attorney General, Mr. Ali Reza Iftekhar; Chairman of Association of Bankers, Bangladesh (ABB) and Managing Director of Eastern Bank ; Mr. M Mahfuzur Rahman, BB Executive Director; Mr. Quazi Shirajul Islam, President of Bangladesh Jewellers' Association; Ms. Priyani Malik, World Bank Financial Sector Specialist; and Mr. Khurshid Alam Khan, ACC panel Lawyer. Their thoughtful presentations captivated the audiences. During my presidency, such gathering of economists, lawyer, bureaucrat, bankers and businesses was indeed an unique event.

Mentioning Accountants as Gate Keepers, the Bangladesh Bank Governor stated, Chartered Accountants to be aware about the process of the money laundering and terrorist financing. Auditors/accountants have access to monetary transaction of the organizations/ individuals, said the governor. He requested the CAs to inform the BFIIU in the event of any such suspicious issue.

ACC DG Mr MH Salahuddin said, auditors have to play very important role in certifying the financials by audits. He urged that they should not do anything satisfying the managements. He further said that the professionals, statutory and regulatory bodies concerned would have to come forward and work together to combat money laundering and terrorist financing.

The key-note speaker described the ways and means of such crimes. He suggested a number of recommendations which was praised by all the participants and earned laurels from the floor.

Practicing Members' Conference on Quality Audit in Public Interest Entities - Challenges and Cost of Audit

Another Practicing Members' Conference on ‘Quality Audit in Public Interest Entities - Challenges and Cost of Audit’ was held at ICAB auditorium on 14 May 2015. It was meant to make the CA professionals informed about the threats and the opportunities of the profession. Vice President Mr. AF Nesaruddin FCA and Council Member & PDC Chairman Mr. Muhammad Farooq FCA jointly presented the key-note paper in the Conference.

To determine the required human resources deployed for quality audit and the sequential costs, Professional Development Committee (PDC) – ICAB has formed a special committee to make a survey on the ongoing audit fees of some selected listed entities and their requirements.

I in my address urged all practicing members to improve the quality of service to the service taker entities. ICAB recommended the increased audit fees indentifying some challenges in the Chartered Accountancy Profession.

CFO Conferences on "Evaluation Criteria for SAFA Best Presented Accounts Award”

Conferences of Chief Financial Officers (CFOs) of Banking, Insurance and Non Banking Financial Institutions (NBIs) sectors, manufacturing, public sectors, NGOs and other entities were held on 21 May and 28 May 2015. I have made opening remarks there. The Conferences were organized to encourage the CFOs to maintain proper standards in preparing their annual reports keeping in view the matters of the "Best Presented Annual Reports" Awards, given by SAFA.

A total of 49 CFOs of different Banking, Insurance and NBFIs, Manufacturing, Public Sectors, NGOs and other entities participated in the Conferences.

Workshops for Life Insurance Companies

Three workshops on Compliance with Rules, Regulations & Accounting Standards and Preparation of Financial Statements for Life Insurance Companies were organised at CA Bhaban. Insurance Development &

6

May 2015 No. 307

Regulatory Authority Bangladesh (IDRA) Member Mr. Zuber Ahmed Khan attended the inaugural session of the workshops on 26 May 2015 as Chief Guest. The Internal Auditors of different life insurance companies participated in it. The External Auditors and the CEOs of different life insurance companies participated in second workshop and the third workshop on 28 May & 31 May 2015 respectively at the same venue.

Mentioning multifarious presentation of Financial Reports of Life Insurance Companies (LIC), the Chief Guest said that IDRA patronized the ICAB workshop with a view to make LICs aware about techniques to prepare financial reports in uniform format so that IDRA & other stakeholders could get proper information about the companies.

In my welcome speech I recapitulated that the seeds of this workshop were sowed in a meeting with IDRA in January this year. ICAB and IDRA would continue such workshop on different professional issues and to explore new avenues to work with for development of the profession and the Nation in forthcoming years.

Vice President Mr. AF Nesaruddin FCA was also present in the inaugural session of the workshop.

Training on Advanced Excel and Financial Modeling

ICAB Center for Professional Excellence organized an intensive training on "Advanced Excel and Financial Modeling "from 02 May to 29 May 2015. As President of the Institute I inaugurated the training and awarded the certificate to the participants at closing session on 29 May 2015. Thanks to ICAB Vice President Mr. AF Nesaruddin FCA and Mr. Gopal Chandra Ghosh FCA who accompanied me in the programs.

Workshop on QAD

Another workshop on "How to maintain Quality in Audit and Assurance Services" was organised by ICAB Center of professional Excellence (ICPE) on 12 & 13 May 2015 at ICPE training room. Vice President (T&R) Mr. AF Nesaruddin FCA inaugurated the workshop. I awarded the certificates to the participants at closing session of the workshop on 13 May.

Finance Division, MoF WorkshopI have participated in a half day long workshop on “Public Expenditure and Financial Accountability (PEFA) Repeat Assessment 2015” organised by the Finance Division, Ministry of Finance, GoB at Bangladesh Secretariat on 19 May 2015. The Finance Division (FD) has been implementing a range of reforms initiatives to bring critical changes in the regulatory framework and process flow to build an improved and efficient Public Financial Management (PFM) system. Mr. Mahbub Ahmed, Senior Secretary, Finance Division and Mr. Johannes Zutt, Country Director of the World Bank attended the workshop as special guests.

Among others, Representatives from the World Bank, EU, CIDA, IMF, JICA, DFID, CPD and TIB were present in the workshop. I have shared my experience about PFM Bangladesh perspective in it.

Discussion Meeting on Safeguarding Members and the ProfessionA discussion meeting on Safeguarding Members and the Profession was held at ICAB Council Hall on 13 May 2015. The participants mainly focused on the Foreign Accountants working in corporate houses in Bangladesh. The Members of the Institute expressed their concerns over the number of hiring Foreign Accountants increasing alarmingly without GoB permission procedure. The overseas audit and consultancy firms would eclipse the service potential of Bangladeshi Chartered Accountants and other consultancy firms, they apprehended.

As the President of ICAB, I gave patient hearing to the discussants with grave concerns. I advised all to form a 9-members subcommittee to identify of the issues, severity, impact, probable solution and the way forward.

Teleconference between ICAB and ICAEW, UKIt was held between Vernon Soare, Executive Director, Mark Campbell, Head of International Capacity Building, Justin West, Head of New Business Opportunities from ICAEW, UK, and an ICAB team comprising Vice Presidents Mr. AF Nesaruddin FCA, Mr. Kamrul Abedin FCA, Project Advisor Mr. Burhanuddin Ahmed FCA

and Director (Technical) Mr. Mahbub Ahmed Siddique FCA in Dhaka led by the Chairman of the committee Past President & Council Member Mr. Nasir Uddin Ahmed FCA. I also had participated in it held on 26 May 2015 at ICAB.

The discussion mainly focused on the progress of WB’s ongoing project and update of ICAB’s Study Manuals based on ICAEW’s guidelines, except local tax law and IT paper. During the discussion, we also exchanged views on examinations systems and trainings including preparation of training module on updated syllabus, study manuals and question banks, delivery of the training to teachers/ trainers, etc.

Bonik Barta-CSE organized Conference on Capital MarketOn an invitation, as a discussant I participated in the Conference on ‘Bangladesh Economy and Capital Market Development’ organized jointly by Daily Bonik Barta and Chittagong Stock Exchange (CSE) at ballroom of Pan Pacific Sonargaon Hotel, Dhaka on 25 May 2015.

Other discussants of the seminar were Former Advisor to the Caretaker Government & Ex-BSEC Chairman Dr. AB Mirza Azizul Islam, BSEC Ex-Chairman Mr. Faruk Ahmed Siddiqi, Central Depository Bangladesh Limited Chairman Mr. Sheikh Kabir Hossain.

Economic Affairs Advisor to the Prime Minister Dr. Moshiur Rahman, State Minister for the Ministry of Finance and the Ministry of Planning Mr. MA Mannan MP and BSEC Chairman Prof. Dr. Khairul Hossain were present as the guests in the Conference.

During my turn, I advised that the interest rate on Bank’ loans should be one of single digit. I pointed out different issues centering the size of the capital market. In this situation as a Regulator, BSEC has no alternative but to increase its capability.

DRC-ICAB Elects Chairman & Secretary for 2015I attended the 35th Annual General Meeting of Dhaka Regional Committee (DRC) of the Institute of Chartered Accountants of Bangladesh (ICAB) held on 16 May 2015 at ICAB Auditorium. Mr. Md. Yasin Miah FCA and Mr. Mizanur Rahman FCA were elected Chairman and Secretary for

7

May 2015No. 307

DRC Committee respectively for the year 2015. In my speech, I welcomed the new office bearers of the Dhaka Regional Committee, Congrats!

Other members of DRC-ICAB are Mr. Md. Fokrul Islam FCA, Mr. Mohammad Khairul Alam FCA, Mr.Mohammed Sabir Ahmed FCA, Mr. Md. Eftekhar Ali FCA, Mr. Md. Selim Reza FCA, Mr. Md. Zakaria FCA, and Mr. Md Monzur Alam FCA.

UNCDF Delegates visit ICAB

Delegates from United Nations Capital Development Fund (UNCDF) Bangladesh office visited ICAB on 26 May 2015. UNCDF consultants Priscilla Phelps, Piotr Langoswaki and Jesmul Hasan held a meeting with me. It discussed on financial reporting in general by urban local bodies.

We were informed that UNCDF is going to start a pilot project titled Municipal Investment Finance (MiF). The project will work to create scope and capacity for municipalities for private borrowing source in regard to infrastructure financing. On ICAB’s behalf I vowed to work on its pilot projects for a definite wayfoward.

Meet with Kailash Satyarthi

I met Nobel Laureate Mr. Kailash Satyarthi, a child rights activist at a dinner hosted by PKSF and CAMPE at Bangabandhu International Convention Centre (BICC) on 30 May. I feel proud to have had the company of the Nobel Laureate. The moment would remain live in my memory for ever.

Bangladesh Bank Interview BoardOn a request, I attended an Interview Board of Bangladesh Bank as one of the members of the Board on 12 May 2015 at BB Governor’s office. Chaired by the Governor, Bangladesh Bank, the Board was formed to appoint Financial Advisor/Professional Accountant in Audit Committee of the Board of Directors of the Bank through an Interview. As President of Regulatory Body in accounting profession, I believe it is our noble duty to respond to the request of other regulatory bodies specially Bangladesh Bank. A Member of ICAB was selected for this position.

Shagufta Yasmin, MP, Ex-whip visited ICABMs. Shagufta Yasmin Amily, female parliamentarian, ex-whip of JS visited

ICAB on 28 May 2015. During the meeting with the parliamentarian, ICAB Technical Advisor Mr. Muhammed Emdadul Haque FCA was present. I shared the progress of the Institute with the Parliamentarian. It needs to be mentioned here that Ms. Shagufta Yasmin is one of the frontliners of Bangladesh Awami League.

Audit Training Program in Mercantile Bank Training InstituteK. M. Hasan & Co, Chartered Accountants, a member firm of McMillan Woods International UK and MAGC (Management And Governance Consulting Private Limited), India jointly arranged a high quality training program on 'AUDIT EASE’ at the Mercantile Bank Training Institute, Dhaka from 09 May to 11 May, 2015.

ICAB Vice President Mr. AF Nesaruddin FCA attended the inaugural session of the training. I gave away the certificates to the participants at the closing session with the presence of ICAB Secretary Mr. AKM Rahmat Ullah FCA.

ICAB donates Ten Lac Taka for Rehabilitation of Nepalese Earthquake VictimsOn behalf of the Council-ICAB, I handed over a cheque of Taka 10 lac to H.E. Sushil Kumar Lamsal, Deputy Mission Chief, Embassy of Nepal in Dhaka for the rehabilitation of the Nepal earthquake victims on 12 May at Nepal Embassy, Dhaka. At that time ICAB Vice president Mr. Kamrul Abedin FCA, Council Members Mr. Dewan Nurul Islam FCA, Mr. Muhammad Farooq FCA accompanied me in the event.

In a good gesture of brotherhood & professional fraternity and on humanitarian ground, the Institute extended sympathy to the members of ICAN and the people of Nepal specially who were the victims of massive earthquake on 25 April 2015. The catastrophic tremor left thousands of Nepalese dead and a vast trail of devastation.

Meetings of Council and Standing & 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 May 2015:

Standing Committees:

- 3rd Meeting of the Articled Students

Committee (ASC) was held on 06 May 2015 at 6:00 pm.

- 8th Council Meeting was held on 19 May 2015 at 5.00 pm.

- Meeting of the Board of Studies was held on 30 May 2015 at 6:00 pm.

- 3rd Quality Assurance Board (QAB) Meeting was held on 31 May 2015 at 5.30 pm.

Non-standing Committees:

- 2nd Meeting of RCPAR held on 30 April 2015 at 5:00 pm.

- 2nd Meeting of Information & Communication Technology Committee (ICTC) was held on 05 May 2015 at 6:00 pm.

- 4th Taxation and Corporate Laws Committee (TCLC) meeting was held on 07 May 2015 at 6.00 pm.

Standing and Non-standing Sub Committees:

- Meeting between ICAB and ICAEW was held on 07 May 2015 at 6:00 pm.

- 7th ERP Project Sub-committee meeting was held on 14 May 2015 at 6:00 pm.

- Meeting of the Sub-committee of the Technical & Research (TRC) was held on 16 May 2015 at 5:00 pm.

- 8 Member Sub-committee on Teacher's Evaluation Criteria was held on 17 May 2015 at 6:00 pm.

- 11 Member Sub-committee on Adoption of ICAEW Current Syllabuses in ICAB was held on 17 May 2015 at 7:00 pm.

- Discussion Meeting with the Representatives of the Practicing Firms on Revised Fees Schedule and its Implementation Process was held on 23 May 2015 at 1:00 pm.

I have been dedicatedly vying to make my year as President better. I, as always seek your blessing Fellow Members.

With gratitude & best regards!

Masih Malik Chowdhury FCAPresident

8

May 2015 No. 307

Practicing Members' Conference on Quality Audit in Public Interest Entities - Challenges and Cost of Audit

racticing Members' Conference on ‘Quality Audit in Public Interest Entities - Challenges and Cost of

Audit’ was held at ICAB auditorium on 14 May 2015. Practicing Members of the Institute were present. ICAB Vice President AF Nesaruddin FCA and Council Member & PDC Chairman Muhammad Farooq FCA jointly presented the key-note paper in the Conference.

ICAB President Masih Malik Chowdhury FCA said that the Institute had been facing many challenges including government’s step to introduce Financial Reporting Act. Improvement of the quality of service to the entities should be our motto which would make a way to enhance this image of this prestigious profession. On the presentation of working paper (guideline) the President urged all the Practicing Members to follow this guidelines meticulously.

Muhammad Farooq FCA said that the paper was prepared with the opinions taken from stakeholders, like BSEC, Bangladesh Bank, IDRA and other Publicly Listed Companies. He opined that audit fees in our country need to

increase for ensuring quality audit; compared to other countries audit fees of Bangladesh is one of the lowest in the region, he added.

ICAB Vice President AF Nesaruddin FCA said that considering the stakeholders and public expectations from CAs, the guidelines for the Practicing Members to improve the quality of service with the recommendations to increase audit fees have been formulated. He said that the authorities of the entities wants quality service for which they should not be reluctant to pay more. He said, ‘We prepared the recommendations for

minimum audit fees for the auditors on the basis of risk and complexity of the jobs’. He also requested the auditors to maintain the quality of service with their professional acumen.

Delegates from ICAB met different stakeholders like BSEC, IDRA, BB, NGOAB, Association of Publicly Listed Companies in this regard. During discussion, the the issues of quality service and audit came up as major points of discussion, he intimated.

To determine the required human resources deployed for quality audit and the sequential costs, Professional Development Committee (PDC) – ICAB has formed a special committee with specific Terms of Reference (ToR). The committee has made a survey on the ongoing audit fees of some selected listed entities focusing on the minimum resources to be employed in any audit assignment and thus recommended the required fees applicable for different categories of listed entities’, proposed to consider scale & volume of business of those PLCs categorising large, medium and small.

The rationale behind ICAB’s such initiatives was to ensure the quality first

P

A partial view of the audience

9

May 2015No. 307

and then the fee issue, of course, he carefully pointed out.

The proposed Fees schedule has been revised based on proposing minimum manpower to be engaged in each audit engagement and to be handed over to all banks and financial institutions with a copy to the Governor-BB, Chairman- BSEC including Chairman of Association of listed Companies for initial feedback.

ICAB recommended the increased audit fees indentifying some challenges in the Chartered Accountancy Profession. The challenges are as follows:

Audit risks have increased significantly due to complex business environment and application and too much dependence on technology;

Adequate resources and expertise are not available and have become expensive in the present market scenario;

Public perception about audit quality is negative, supported by recent press and media reports;

ACCA, CIMA and CMAs are also

creating pressure on Government for audit market taking weakness of CA firms;

ICAB is receiving complains from Bangladesh Security Exchange Commission, Bangladesh Bank, Stock Exchanges, IDRA , NBR, etc. regarding poor quality and negligence of professional work in certain cases;

Quality Assurance Department (QAD) and Investigation & Disciplinary Committee (IDC) of ICAB also observed poor quality issues and negligence with concern;

Huge pressure from the enterprises and regulatory bodies to encourage entry of foreign CA firms in the audit practices;

Cost of audit has gone up whereas the recovery of audit fee is very poor;

There is no limit in the number of audits of listed companies while in SAFA counties we find there are limit for such audit as well as listed companies;

Unhealthy competition practiced by

some notwithstanding ICAB regulation;

Clients are reluctant to pay required cost of professional services;

Auditors’ independence, commitment, competence and negligence are in question for Capital Market debacle in 1996 and 2010. Fingers are pointed out to auditors without assigning an justifiable reasons;

Stringent supervision, monitoring and oversight functions are in place through FRA and FRC;

Professional fees are extremely poor compared to the responsibility shouldered by the auditors;

Audit fees are very low compared to resources deployed and risks associated; and

The Institute has been keeping constant vigilance of Quality Assurance Department by inspecting firms routinely. In the event of failing to deploy adequate resources in audit those firms will be taken to task by IDC-ICAB, he assured.

Delegates from United Nations Capital Development Fund (UNCDF) Bangladesh office visited ICAB on 26 May 2015. The UNCDF consultants Priscilla Phelps, Piotr Langoswaki and Jesmul Hasan held a meeting with ICAB President Masih Malik Chowdhury FCA. They discussed on Financial Reporting in general and Financial Reporting by urban local bodies. UNCDF is going to start a pilot project titled Municipal Investment Finance (MiF). The project will work to create scope and capacity for municipalities for private source borrowing for infrastructure financing. ICAB was represented in this

meeting by President Masih Malik Chowdhury FCA, Vice Presidents AF Nesaruddin FCA, Kamrul Abedin FCA,

Past President Nasir Uddin Ahmed FCA and ICAB Secreatry AKM Rahmat Ullah FCA.

UNCDF Delegates visit ICAB

10

May 2015 No. 307

Training and Workshops in May 2015Workshops for Life Insurance Companies

CAB Center for Professional Excellence (ICPE) organized three

workshops on Compliance with Rules, Regulations & Accounting Standards and Preparation of Financial Statements for the Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of Internal Auditor and External Auditors of Life Insurance Companies. Insurance Development & Regulatory Authority Bangladesh (IDRA) Member, Zuber Ahmed Khan as Chief Guest attended the inaugural session of the workshops at CA Bhaban on 26 May 2015 which was organized for the CFO and Head of

Internal Audit of Life Insurance Companies.

The 2nd workshop on the same topic for External Auditors was held on 28 May and the 3rd workshop for Chief Executive Officer (CEO) of Life Insurance Companies was held on 31 May at the same venue.

Das Deba Prasad, Dr. Mosharraf Hossain FCA, Sultan-ul-Abedin Molla FCS, KM Mortuza Ali, Sabbir Ahmed FCA, and Kamal Pasha ACA were the resource persons of the workshops.

Mentioning multifarious presentation of Financial Reports of Life Insurance Companies, the Chief Guest said that IDRA-ICAB workshop was organized with a view to make aware about techniques to prepare financial reports in uniform format so that IDRA & other stakeholders could get proper information about the companies.

ICAB President Masih Malik Chowdhury FCA in his welcome speech said that the seeds of the workshop sowed in a meeting with IDRA in January 2015. The workshops were the outcome of the meeting, he added. ICAB and IDRA would continue such workshop on different professional issues in future, he hoped.

ICAB Vice President AF Nesaruddin FCA described the role of the life

insurance companies in the economy. ICAB President handed over the credentials to the participants of the workshops.

Training on Advanced Excel and Financial ModelingICAB Center for Professional Excellence organized an intensive training on "Advanced Excel and Financial Modeling "from 02 May to 29 May 2015 at ICAB Training Room. A total of 24 participants took part in the training.

ICAB President Masih Malik Chowdhury FCA inaugurated the training and awarded the

certificates to the participants at the closing session on 29 May 2015. ICAB Vice President AF Nesaruddin FCA and Gopal Chandra Ghosh FCA were also present in the program.

Resources persons of the training were Md. Anowar Hossain Fakir, A. Z. M. Akhlaqur Rahman and Placid Gomes ACA.

Workshop on QAD ICAB Center for Professional Excellence (ICPE) has organized a two-day long workshop on "How to maintain Quality in Audit and Assurance Services" on 12 & 13 May,2015 at ICPE training room. A total number of 30 practicing members of ICAB participated in the workshop. Vice President (T&R) Kamrul Abedin FCA inaugurated the workshop.

ICAB Director (Technical) Mahbub Siddique FCA, Ashraf-Uz-Zaman Ali ACA, Jahidur Rahman FCA, Sabbir Ahmed FCA, Muhammad Aminul Haque FCA, Md.Tofazzul Hussain FCA and Snehasish Barua FCA were the resource persons in the workshop.

President-ICAB awarded certificate to the participants at closing session of the workshop on 13 May.

I

11

May 2015No. 307

ICAB organised CFOs Conferences on “Evaluation Criteria for SAFA Best Presented Accounts Award”

he Institute of Chartered Accountants of Bangladesh (ICAB)

organised the Conference of Chief Financial Officers (CFOs) of Banking, Insurance and Non Banking Financial Institutions (NBIs) sectors on 21 May at its Council Hall. Another Conference of Chief Financial Officers (CFOs) of manufacturing, public sectors, NGOs and other entities was held on 28 May at the same venue.

The Institute urged the CFOs to maintain proper standards in preparing their annual reports which will be submitted for nomination of the Award. If any changes are made in the existing criteria, the Institute will inform duly. However, the existing criteria will be applicable on the Financial Statements for the year 2014.

The conferences will help to garner the "Best Presented Annual Reports" Awards, given by SAFA to maintain continuation of the country's best performance in this region. The Bangladeshi organizations will touch a new height among the SAFA countries by getting highest number of Awards, ICAB expects. The two conferences were arranged for the CFOs to make them well conversant with the SAFA evaluation criteria.

ICAB President Masih Malik Chowdhury FCA made the opening remarks while

Abbas Uddin Khan FCA, ICAB Council Member and Chairman of its Review Committee for Published Accounts and Reports (RCPAR), moderated the program. ICAB Council Member & Past President Md Abdus Salam FCA described the evaluation marks of different segments of Banking sector for the Award.

ICAB Council Member Dewan Nurul Islam FCA described some sections of the criteria where Bangladesh Insurance Companies lose marks for the Awards.

Shuvra Kanti Choudhury FCA, DMD of CDBL spoke about SAFA criteria for NBIs sector, Muallem Ahmed Chowdhury FCA described the criteria for manufacturing category, Mohammed Forkan Uddin FCA described criteria for public sector category & corporate governance and Md Eftekhar Ali FCA described for NGOs & NPO category.

About 24 CFOs of different Banking,

Insurance and NBFIs participated in the 1st conference and 25 CFOs of manufacturing, public sectors, NGOs and other entities participated in 2nd conference. They also took proactive part in the discussion.

ICAB Director (Technical) Mahbub Ahmed Siddiqui FCA pointed out pitfalls and lackings that generally happened in preparing the annual reports. He discussed about the ways and means by which the companies can keep apart from these.

The Chairman suggested that the information on HR accounting, ratio analysis, timely AGM, recommendations & directives towards progress, proper presentation of Directors’ reports would help achieve better marks.

CFOs Conference organized by ICAB on 21 May 2015

CFOs Conference organized by ICAB on 28 May 2015

T

Mahsudur Rahman to compete in Asian

Bodybuilding & Fitness Championship in JapanMd. Mahsudur Rahman, FCA (Enrl No- 815), General Manager of Rahimafrooz Group will participate in 49th Asian Bodybuilding & Fitness Championship between 4 and 8 June 2015 in Japan. Total 33 countries will participate in the competition. Last year Mr. Rahman was placed 5th position in the championship held in Colombo. On 7 June he earned bronze award in the competition.

12

May 2015 No. 307

teleconference between ICAB and International Federation of Accountants (IFAC) was held at ICAB on 12 May at 5 pm

BD times.

The Teleconference was held as part of annual progress monitoring steps relating to progress in executing ICAB’s Action Plan on IFAC Statements of Membership Obligations (SMOs). Adrian Lim, Analyst, Quality and Membership, IFAC from New York, USA and Mahbub Ahmed Siddique FCA, Director (Technical)-ICAB from Dhaka participated in the discussion while AKM Rahmat Ullah FCA, Secretary-ICAB and Mohammad Golam Shahriar ACA, Deputy Director-ICAB were present during the conversation.

IFAC communicated that ICAB has been demonstrating a consistent commitment to the SMOs Action Plan in the past and as a result, was given the possibility for updating the same on biennial schedule.

Satisfying on ICAB’s continued commitment to SMOs Action Plan, IFAC exempted yearly

ICAB President in Finance Division, MoF WorkshopICAB President Masih Malik Chowdhury FCA

participated in a half day long workshop on Public

Expenditure and Financial Accountability (PEFA)

Repeat Assessment 2015 organised by the

Finance Division, Ministry of Finance, GoB at

Bangladesh Secretariat on 19 May 2015.

Among others, Representatives from the World

Bank, European Union, CIDA, IMF, JICA, DFID,

CPD, TIB, and ACCA Bangladesh were present in

the workshop.

The Finance Division, in collaboration with the

development partners under Strengthening Public

Expenditure Management Program (SPEMP)

organized the workshop.

IFAC-ICAB Teleconference

A

A teleconference between ICAB and ICAEW, UK was held on 26 May 2015 at ICAB at 6:00 pm BD times.

Vernon Soare, Executive Director, Mark Campbell, Head of International Capacity Building and Justin West, Head of New Business Opportunities from ICAEW, UK and President Masih Malik Chowdhury FCA, Past President & Council Member Nasir Uddin Ahmed FCA, Vice Presidents AF Nesaruddin FCA, Kamrul Abedin FCA, Project Advisor Burhanuddin Ahmed FCA and Director (Technical) Mahbub Ahmed Siddique FCA from ICAB in Dhaka participated in the teleconference.

The discussion mainly focused on the progress of WB’s on going project and updating ICAB’s Study Manuals based on ICAEW, except local law, tax and IT papers.

Other agenda of the discussion include various development activities under World Bank Project.

Teleconference between ICAB and ICAEW, UK

updating Action Plan. ICAB made last update of SMOs Action Plan in March 2014 and allowed to update the next biennial report in March 2016.

IFAC representative assured to extend its co-operations towards profes-sional development of ICAB in coming days.

13

May 2015No. 307

ICAB Officials visit ICA Sri LankaA team of ICAB comprising ICAB Controller of

Examinations Md. Afzal Hossain and Deputy Director

Mohammad Gulam Shahriar ACA visited ICA Sri Lanka

between 28 to 30 April 2015. They visited the ICA Sri

Lanka to share matters of operational & professional

issues of ICAB.

The ICAB officials had a number of meetings with high

officials of ICA Sri Lanka. The meetings mainly

concentrated on different professional, academic and

administrative matters like governance, management

and operational structure, professional conduct

procedure, CA education and study materials, question

K. M. Hasan & Co, Chartered Accountants, a member firm of McMillan Woods International UK and MAGC (Management And Governance Consulting Private Limited), India, jointly arranged a high quality Training Program on 'AUDIT EASE’ at the Mercantile Bank Training Institute, Dhaka from 09 May to 11 May, 2015.

The training program was conducted by two Professional Trainers from India Dr. R. S. Murali FCA, CISA and Praveena ACA, CISA.

ICAB President Masih Malik Chowdhurv FCA gave away the certificates to few participants at the closing session.

ICAB Vice President A F Nesaruddin FCA and Secretary AKM Rahmat Ullah FCA attended the closing session of the training.

ICAB President in Audit Training Program

8th Council Meeting of ICAB

Shagufta Yasmin Amily, MP, Ex-whip paid Courtesy Call on ICAB President

ICAB President Masih Malik Chowdhury FCA presiding over the 8th Council Meeting of ICAB at its Council Hall on 19 May 2015. As part of regular activities of the Institute, the Meeting discussed about various professional issues

Shagufta Yasmin Amily, Parliament Member and Ex-whip of the Parliament visited ICAB on 28 May 2015. She had a courtesy call on ICAB President Masih Malik Chowdhury FCA. During the meeting ICAB Technical Advisor Muhammed Emdadul Haque FCA was present. President shared issues of the Institute with the Parliamentarian. Ms. Shagufta Yasmin is also, one of the frontline female leaders of Bangladesh Awami League.

banks, route to CA qualification, examination systems, coding

methodology and trainings, etc. of ICASL.

14

May 2015 No. 307

Zahirul Alam appointed an Independent Director

Md. Zahirul Alam, FCA (Enrollment No. 265) has recently been appointed as an Independent Director of the Board of Directors of International Leasing and Financial Services Limited (ILFSL), a listed company and Chairman of its Audit Committee. He has been also appointed as the Chairman of the Board of Directors of IL Capital

Limited, a subsidiary of ILFSL.

Presently he is a Financial Management Specialist, SEQAEP an World Bank financed project under the Ministry of Education, GoB.

Members’ Achievement - Congratulations !

ICAB President Masih Malik Chowdhury met Kailash Satyarthi, Nobel Laureate and child rights activist at a dinner hosted by PKSF and CAMPE at Bangabandhu International Convention Centre (BICC) on 30 May 2015

ICAB donates for Nepalese Earthquake Victims

ICAB President met Kailash Satyarthi

n behalf of the C o u n c i l - I C A B , President of the

Institute of Chartered Accountants of Bangladesh (ICAB) Masih Malik Chowdhury FCA handed over a cheque of Taka 10 lac to Deputy Chief of Mission, Embassy of Nepal in Dhaka Sushil Kumar Lamsal for rehabilitation of the Nepal earthquake victims on 12 May at the office of Nepal Embassy in Dhaka.

ICAB Vice President Kamrul Abedin FCA, Council Members Dewan Nurul Islam FCA, Muhammad Farooq FCA and Military Attache of Embassy of Nepal Colonel Sagar Bahadur K.C were present.

ICAB-NAC Management Committee arranged a SeminarICAB North American Chapter (NAC) Management Committee arranged a seminar on May 9, 2015 at BCS office at Danforth/Victoria Park Area (Known as Bangali 1st choice living area).

Two high officials from CPA Ontario, Canada, and two Staffing Managers from Robert Half /Account Temps Pereira Sunny and Arshad Machher participated in the seminar.

CPA Ontario's representatives described on how ICAB qualified Chartered Accountants become a CPA here easily. Robert Half Staffing Managers described on how the CAs can get a job easily in the field of Accounting Profession here.

30 Chartered Accountants and 10 other Accountants attended the seminar.

O

Sabir Ahmed promoted as Executive Director & CFO

Mohammed Sabir Ahmed FCA (Enrollment No. 949) has been promoted to the position of Executive Director & CFO of Reliance Insurance Limited from January 2015. He is also a Chartered Secretary. He has been working in financial management and internal audit & control

functions for more than fifteen years. A member of different committees of “The Institute of Chartered Accountants of Bangladesh (ICAB)” for years, he is a part time faculty of ICAB.

15

May 2015No. 307

CAB President Masih Malik Chowdhury attended the discussion meeting on Safeguarding Members’

interest and the Profession held at ICAB Council Hall on 13 May 2015. The discussion mainly focused on the Foreign Accountants working in corporate houses in Bangladesh. The Chartered Accountants present in the meeting echoed in common voice that the number of hiring foreign accountants has been increased alarmingly.

They also pointed out that overseas audit and consultancy firms are eclipsing the service potential of Bangladeshi Chartered Accountants and other consultancy firms. The foreign firms having a nominal or no affiliation with Bangladeshi firms are providing such services. Drawing notice of

ICAB, they urged for immediate steps to resolve the matter.

The President of ICAB gave patient hearing to the discussants and advised to form a 9-members subcommittee to identify the issues, severity, impact, probable solution and the way forward.

The President also assured that ICAB is relentlessly working to ensure transparency and accountability in accounting and assurance service in Bangladesh. The Institute will successfully deal with the challenges to the profession, he aspired.

ICAB President attended Discussion Meeting on Safeguard of Members’ Interest and Profession

I

CorrigendumAdmission as Associate

The following member has been admitted as Associate of the Institute with effect from the date mentioned against his name:

Name Effective DateMr. Kamrul Hasan Siddiqui ACA (1706) 19 April 2015Management AccountantKenpark Bangladesh Apparel (Pvt.) Ltd.Plot # 69/85, Karnaphuli Export Processing ZonesChittagong

NB: This name was inadvertently published in April Issue of ICAB News Bulletin under heading ‘Permission to Start Practice’. The ‘correction’ has been made and read as stated above.

Permission to train Articled StudentsThe following members have been granted permission to train Articled Students with effect from the dates mentioned against their names:

Name Effective DateMr. Razdwan Raquibuddin Mohammed FCA (995) 06 May 2015PartnerNasir Mohammad & Co.Chartered AccountantsCDA Building (5th floor)Court Road, Chittagong

Name Effective Date

Mr. Anjan Mallik FCA (1099) 06 May 2015PartnerMalek Siddiqui WaliChartered Accountants9/G, Motijheel C/A, (2nd floor)Dhaka-1000

Mr. Muraheb Malik Chowdhury ACA (1186) 06 May 2015PartnerMasih Muhith Haque & Co.Chartered AccountantsUTC BuildingLevel-13PanthapathDhaka-1215

Mr. Imtiaz Alam ACA (1299) 06 May 2015ProprietorImtiaz Alam & Co.Chartered AccountantsAs-salam Tower (12th floor)57 Agrabad C/AChittagong

Source: Secretariat-ICAB

Congratulations

16

May 2015 No. 307

ICAB Academic Campus NewsThe classes of Professional Stage- Knowledge Level (11th Batch, Sections: F & G), Application Level (10th Batch, Sections: A-C) and Advanced Stage (9th Batch, Section: D) started from 01 March 2015 for Examination Session: May-June 2015, closed on 28 May 2015 at ICAB Academic Campus. 447 students enrolled and 96 teachers dedicated the service for the Class Session: March-May 2015.

During this session, 47 Students of Professional Stage Knowledge Level and 23 Students of Professional Stage Application Level were engaged in Union Parishad audit under LGSP-II.

A special session for these students was arranged from 15 April to 29 May 2005, at ICAB Academy Campus.

As a result, the cumulative number of participated students of ICAB under new curriculum has come to 8,511 till May 25, 2015.

The programme on Case Study for 71 students of Advanced Stage had been commenced from 06 March 2015, and concluded on 02 May 2015.

Meanwhile, a- 2 member team headed by A F Nesaruddin FCA, Vice President (E&T), ICAB and Gopal Chandra Ghosh FCA visited at the Campus to monitor

the ongoing programme on 02 May 2015. They talked with the students and heard their proposals on how to improve students’ facilities and teaching session. They shared with the teachers and exchanged their views on various issues. They both requested the teachers and students to improve the professional norms, issues and related affairs.

Vice President (E&T) of ICAB, A F Nesaruddin FCA expressed that students were our basic professional resources. Today’s student will become the member of the Institute as well as the leader of the profession. He added that the Institute has initiated many efforts to strengthen the Profession. He assured that a new campus will be arranged very soon with better fashioned academic environment. He advised the students to create awareness regarding importance of classes and to be regular in attendance. He encouraged students to be more diligent and attentive in the classes. He told that he would keep coming to see the students’ activities and their improvement time to time in the class rooms. He expected that students should try to increase the number of passing rate in the final exams. He concluded with the remarks that, within

the limited resources, the Institute will try to best meet all the expectations of the students.

Gopal Chandra Ghosh FCA, Ex-Vice President and present Member Council of ICAB focused on producing world class members in the Institute to tackle the challenges of global competition. He advised the students to read and practice more in order to become members of the Institute. He stated that ICAB Coaching Class Policy has been developed for the betterment of the students by considering the practical situation of the CA students. He further added that by this time, library and study materials have been made enriched for the students. These developments are the best opportunity for the students, to achieve the proper learning and become quality members of the Institute. He requested the students and the teachers, to be friendly and interactive in the classes.

The Programme and Session have been organised by the Additional Director & Team at ICAB Academic Campus under the supervision of the Vice President (Education & Training)-ICAB, A F Nesaruddin FCA with the policy guidance of the Chairman of Board of Studies-ICAB, ABM Azizuddin FCA, President-ICAB, Masih Malik Chowdhury FCA and Co-chairman Md Abdus Salam FCA.

Resource Persons: ICAB Academic Campus (Session: March-May 2015 )Name of Resource Persons(Sections- F & G of PS-KL-11th Batch)

Mr Mohammed Tofazzul Hussain FCAMr Mohammad Aminul Hoque FCAMr Md Kishlur Rahman ACAMr Obaidur Rahman FCAMr Md Humayan Kabir FCAMr Mahmudur Rahman ACA Mr Chitta Ranjan Halder FCAMr Dipok Kumar Roy ACA Mr Md Akber Hossain Khan ACA Mr Sujan Kumar Saha ACAMr. Ruhul Amin ACA Mr Faruq Ibn Hossain ACA Mr Zafar Ullah Khan FCAMr Shibly Ahmed FCAMr Muhammad Shariful Islam Shiplu FCAMr G M Latiful Quader FCA

Mr Md Abdullah-Al-Amin ACAMr Nazmul Hussain Siddique Mr Mohammad Shibbir Hossain FCAMr Shah Md Mohin Uddin ACA Mr Md Shihabur Reza ACAMr Mostak Ahmmed FCAMr Md Abdul Ahad ACA Mr Sajib Sarkar ACA Mr Md Abdur Razzaque ACAMr Md Shahariar Ahmed ACA Ms Mashruna Alam Chowdhury ACAMr Mohammad Monowar Hossain ACAMr K S Omar Faruk ACA Mr Md Sayduzzaman Tuhin ACA Mr Khairul Basher FCAMr Abdullah-Al-Mamun FCAMr Md Jasim Uddin ACAMr Miltan Bepari ACAMr Abdulla-Al-Mahmud FCA

Professor Dr ASM Hossain Tayiab FCA

Name of Resource Persons(Sections- A-C of PS-AL-10th Batch)Mr Mohammed Tofazzul Hussain FCAMr Abdullah-Al-Mamun FCAMr Anwaruddin Chowdhury FCA(GT) Mr Obaidur Rahman FCAMr Mohammad Redwanur Rahman FCAMr Anup Kumar Sarker ACAMr Dewan Nurul Islam FCAMr Md Kahir Mahmud FCA Mr Masud Khan FCA-India (GT)Mr Shaheduzzaman Choudhury FCAMr Mohammad Imtiaz Khan FCAMr K M Atiqul Islam ACAMr Mahmudul Hasan Khusru FCAMr Abdul Khalek FCA (VATportion) Mr Md Amirul Islam FCAMr. Sheikh Noor Mohammad

17

May 2015No. 307

Campus News Cont’dMr Abdulla-Al-Mahmud FCAMr Md Parvej Ahmed FCA Mr Md Mahsudur Rahman FCAMr Mustaq Ahammed FCAMr Gopal Chandra Ghosh FCAMr Sabbir Ahmed FCAMr AH Mostafa Kamal KhanMr Md Shafiqul Alam FCA Mr Sayeed Ahmed FCAMr Md Akbar Hossain FCAMr Mohammed Forkan Uddin FCAMr Mohammad Abdul Ohab Miah FCA (VAT portion)Mr Md Din Islam Miah FCAMr Mohammed Sabir Ahmed FCADr Jakerul Abedin Mr Shamim -Al-Mamun ACAMr Mohammad Abdul Matin Mr Md Fokrul Islam FCAMr MAKH Hasif Sowdagar FCA Mr Md Al-Amin Siddiki ACA Mr Md Mahamud Hosain FCAMr Muraheb Malik Chowdhury ACAMr Shaheduzzaman Choudhury FCAMr Shahriar Istiaq Halim FCAMr Bibhuti Bhushan Biswas FCAMr Anup Kumar Mukherjee FCAMr Zakir Hossain FCAMr Ranjan Kumar Bhowmik FCMAMr Md Reajul Islam FCA (VATportion) Mr Imtiaz Lutful Baset FCAMr Md Selim Reza FCAMr Syed Mohammed Kowser Hossain Professor Dr ASM Hossain Tayiab FCAMr Palash Mollick

Name of Resource Persons(Sections- D of AS-9th Batch)

Mr Gopal Chandra Ghosh FCAMr Mohammad Mehdi Hasan FCAMr Mohammed Forkan Uddin FCAMr Anwaruddin Chowdhury FCA(GT) Mr Sabbir Ahmed FCAMr Snehsish Barua FCAMr Abdullah-Al-Mamun FCAMr. Ajit Kumar Paul FCA Mr Md Kishlur Rahman ACAMr Sk. Md Tarikul Islam ACAMr Masud Khan FCA-India (GT)Mr Sayeed Ahmed FCA

Visiting Faculties(for Ongoing Session)

Name of Visiting FacultiesMr. Masih Malik Chowdhury FCAMr. A F Nesaruddin FCAMr. ABM Azizuddin FCAMr. Anwaruddin Chowdhury FCAMr. Md Syful Islam FCAMr. Md Abdus Salam FCAMr. Gopal Chandra Ghosh FCAMr. Dewan Nurul Islam FCAMr. Masud Khan FCA-IndiaMr. Abdul Khalek FCAMr. Md Amirul Islam FCAMr. Sabbir Ahmed FCA (E-770) Mr. Mohammad Mehdi Hasan FCA Mr. Ajit Kumar Paul FCA

Dr. Jakerul Abedin Mr. Md Jehad UddinMr. Syed Mohammed Kowser HossainMr. Sheikh Noor Mohammad Mr. A H Mostafa Kamal Khan

Announcement(Classes of Next Session)

The New Session (June-August 2015) for the Students of Professional Stage-Knowledge Level (12th Batch) will start from Monday, 01 June 2015 at ICAB Academic Campus. The last date for class enrolment was 10 May 2015, and by this time, 702 students enrolled for the classes. A Notice has been issued to all concerned students, to attend the session as per the schedule.

Source: ICAB Campus

CRC News

Name of Lecturers(Sections- March-May 2015 of Knowledge Level)

Mr. Md. Delwar Hossain FCAMr. Arjun Kumar Das ACAMr. Md. Kamrul Islam ACAMr. Sumon Chandra Dey ACAMs. Rubiya Akter ACAMr. Mohammed Emarot Hossain ACS, ACAMr. Imran Abu Hasan FCAMr.Mahbubur Rahman Bhy FCAMr. Mohammad Arif ACAEngg. Muhammad Kamal HosenEngg. Zainal Abedin Mr. Arafat Kamal ACA

Mr. Md. Anisuzzaman ACAMr. Md. Harun Or Rashid ACAMr. Mohammed Abul Kashem ACAMr. Shah Amran ACA

Name of Lecturers(Sections- March-May 2015 of Application Level)

Mr. Mohammad Osman Goni ACAMr. Arjun Kumar Das ACAMr. Mohammed Abul Kashem ACAMr. Mohammad Arif ACAMr. Arafat Kamal ACAMr. Md. Harun Or Rashid ACAMr. Md. Anisuzzaman ACAMs. Rubiya Akter ACA

Mr. Md. Kamrul Islam ACAMr. Mohammed Emarot Hossain ACS, ACAEngg. Muhammad Kamal HosenEngg. Zainal Abedin Mr. Md. Anisuzzaman ACAMr. Md. Moniruzzaman ACA

Name of Lecturers(Sections- March-May 2015 of Advanced Stage)

Mr. Snehasish Barua FCAMr. Imran Abu Hasan FCAMr. Sumon Chandra Dey ACAMr. Md. Kamrul Hasan Siddique ACA

Source: CRC

Chittagong Regional Office

New Campus NoticeThe ICAB Academic Campus will be shifted to 51 Kazi Nazrul Islam Avenue, Kawran Bazar, Dhaka with effect from 1 September 2015 after renovation from June to August 2015. The Council- ICAB has already approved the New Campus.

18

May 2015 No. 307

sources and categories these threats with priority.

c. BFIU may formulate sector-wise reporting requirements involving the responsible government ministries/divisions with provisions for regular review and actions.

d. All government revenues and expenditures accounts may be brought under the purview of statutory audit by the Chartered Accountants Firms annually to identify money laundering occurring.

e. A tripartite arrangement among BFIU, NBR & ICAB to be formed to control the negative effect of transfer pricing of the MNCs which would save foreign currency and ensure expected tax revenues.

f. BFIU may take proactive steps for the adoption of accrual basis accounting in the Government accounting system for establishing the integrity of markets and soundness in financial framework of the country which would help mitigating the factors that facilitate financial abuse leading to money laundering and terrorist financing.

g. A separate appellate division may be formed for quick disposal of

lawsuits related to the issue of money laundering work.

h. BFIU and ACC should be vigilant over the possible areas of money laundering without favour or fear.

i. Bangladesh Bank, with the support and cooperation from the Government of Bangladesh should partner with World Bank, IMF or other agencies to take up increased number of projects, scheme and program for the capacity building.

j. Concerned AML agencies should be vigilant to activate AML drive in the field of human trafficking which relates to money laundering.

After the Key-note speech is over, Chief Guest Bangladesh Bank Governor informed the audiences that legal frame work of our country has now been

upgraded to i n t e r n a t i o n a l standard to protect money laundering and terrorist financing in and outside the country. He emphasized to

play due roles on the part of the actors involved which would ultimately ensure the implication of relevant law on proper implementation of relevant laws in the trial process of such crimes.

(From back page) Members' Conference on 'Anti-Money Laundering...

he 35th Annual General Meeting of Dhaka Regional Committee (DRC) of the Institute of Chartered

Accountants of Bangladesh (ICAB) was held on the 16 May 2015 at ICAB Auditorium. The meeting approved and adopted Financial Statements of DRC for the year 2013-2014. In the meeting Md. Yasin Miah FCA and Mizanur Rahman FCA were elected Chairman and Secretary respectively for the year 2015.

Md. Yasin Miah FCA qualified as a Chartered Accountant from ICAB in 2007. He has long experience in

various organizations like BRAC, Gonoshastha Pharmaceuticals Ltd., Fu-Wang Group, etc. Currently he is

Chief Financial Officer of Global Insurance Ltd.

Mizanur Rahman FCA qualified as a Chartered Accountant from ICAB in 2006. Presently Mr. Rahman is working as General Manager Finance & Company Secretary of The Daily Star.

Other members of DRC-ICAB are Md. Fokrul Islam FCA, Mohammad

Khairul Alam FCA, Mohammed Sabir Ahmed FCA, Md. Eftekhar Ali FCA, Md. Selim Reza FCA, Md. Zakaria FCA, and Md Monzur Alam FCA.

DRC-ICAB Elects Chairman & Secretary for 2015

T

Md. Yasin Miah FCA Mizanur Rahman FCA

Audience in attendance

Dr. Atiur Rahman

19

May 2015No. 307

He said that the roles of designated non financial Business and professions (DNFBP) including Accountants, Lawyers, Realtors and Jewelry & Valuable Stones businesses’ are very important to prevent the money laundering & terrorists financing in the country. He urged everyone associated with this important task to work diligently for the sake of our economic goal.

He reminded the role of Chartered Accountants in money laundering and terrorist financing and said that no body or organization should use them for committing such crimes. Auditors/ Accountants have access to monetary transaction of the organization/ individuals, pointed out the governor and requested the CAs to inform the BFIIU, if any such offences are found. He further said that BFIU is working as central agency to prevent money laundering and terrorist financing.

He hoped that today’s seminar would help the CAs and the sectors’ members to be aware of AML/CFT compliances and relevant laws to deal with the offences.

Mr Salahuddin Director General ( D G ) Ant i -Corrupt ion C o m m i s s i o n intimated that there is lack of training as well as weakness in investigation and

evidences in the prosecution process of related offences, ACC is trying to deliver the best to deal such issues. He opined that there is possibility that the crimes occur due to non filling up of the KYC (Know Your Customer) form properly and possibilities of the influence of the bank managements including officials need to be reexamined.

He said that auditors had to play very important role in certifying the financials audits and they should not do in the name of satisfying the managements. He further said that the professionals, statutory and regulatory bodies concerned would have to come forward and work together to combat money laundering and terrorist financing. He appreciated the Key-note speech

particularly the observation parts and the citation of case studies on practical examples. He also expressed his willingness to work with ICAB to curb corruption.

Additional Attorney General, Mr Murad Reza assured that his office would take active role for e f f e c t i v e implementation of the said laws. He also sought

effective coop from all concerned to take the offernders to the task.

ICAB President Masih Malik Chowdhury FCA said that people commits crimes to earn money which affect the market creating imbalance in the economy.

Mentioning some relevant laws regarding Anti money Laundering & Terrorist Financing, he said that the government is preparing strategic plan (2015-2017) to combat such crimes, saying that 90% of the previous strategic plan has been implemented, next there is emphasize on effective implementation of laws for Anti Money Laundering and combating terrorist financing.

From his legal p r a c t i c i n g experiences, Mr Khurshid Alam said, due to 'complicated provisions and definitions' of the relevant laws and the changes of laws

in several times, the trial process of such cases are not easy. He stressed for the honesty of bank officials, because money laundering is being committed though banks in huge scale.

Disagreeing with the remarks of previous speakerMr. Alam, Mr Mahfuzur Rahman, BB Executive Director said that most of the bank officials perform their duties honestly, but there might be a few officials involved in the malpractices, for which of course every

one is not to be blamed. He shared his views and experiences on the issue and gave an account of how much Bangladesh Bank is trying to perform to achieve

the devised objectives that AML laws has vested on Bank Officials.

Mr Iftekhar Chairman ABB and MD Estern Bank Ltd. said, apart from KYC, the banks are now practicing the mechanism of KYCC (Know Your

Customer's Customer), and KYE (Know Your Employees). He further went on saying that knowing the customers is a continuous process, adding that he urged that the banks should remain updated about the changing information of their customers to fight money laundering. "It is not possible to reduce the offence to zero level, but it is possible to minimize it to a tolerable level by strong and timely reporting to the regulator and creating awareness among the stakeholders," the ABB chairman added.

Ms Priyani Malik, World Bank Financial Sector Specialist thanked the Key note speaker for comprehens i ve study research, she said that the

findings and suggestions put forwarded by the speaker would be helpful in the area she works for. She also shared experiences on some realities on the ground which needs to be looked into for the implementation of anti-money laundering issues.

A good number of Past Presidents, Council Members along with the members of the Institute attended the Conference and the conference was ended with a valuable sharing of knowledge's & experience among the Bankers, CAs & jurists.

Masih Malik Chowdhury

Ali Reza Iftekhar

Ms. Priyani Malik

Khurshid Alam

M Mahfuzur Rahman

Murad Reza

Brigadier General (Retd) M H Salahuddin

20

May 2015 No. 307

Published by the Editorial Board of the Council, The Institute of Chartered Accountants of Bangladesh (ICAB)100 Kazi Nazrul Islam Avenue, Dhaka 1215; Tel. 9117521, 9112672, 9115340 , 9137847 Fax: +880-2-9125266, E-mail: secretary@icab.org.bd, Website: www.icab.org.bd

Chittagong Regional Committee: Chairman Mr. Abdul Awal FCA, HBFC Building (3rd Floor), 1/D Agrabad Commercial Area, Chittagong, Bangladesh, Tel: +880-31-724674, Fax: 880-31-2523579, E-mail: icabctg@yahoo.comUK Chapter: Chairman Mr. AKM Fazlur Rahman FCA, 77, Valleyfield Road, Streatham, London SW 16 2HX UK, Tel: +44 20 86822905, Fax: +44 2087676097, E-mail: frahman101@aol.comNorth American Chapter: Chairman Mr. AKM Asaduzzaman FCA, 54 Pharmacy Avenue, Scarborough, ON M1L 3E5, Canada, Tel: +41 64395557, E-mail: awahid@ncn.ca

he Institute of Chartered Accountants of Bangladesh (ICAB)

organized a Members' Conference on ‘Anti-Money Laundering and Counter-Terrorist Financing Measures of Financial and DNFBP Sectors: Bangladesh Perspective’ at CA Bhaban on 20 May 2015.

Bangladesh Bank (BB) Governor Dr. Atiur Rahman graced the occasion as the Chief Guest while Director General (DG) Anti-Corruption Commission (ACC) Brigadier General (Retd) M H Salahuddin and Murad Reza, Additional Attorney General attended as special guests.

ICAB President Masih Malik Chowdhury conducted the session. A panel of discussants including Murad Reza, Additional Attorney General, Ali Reza Iftekhar, Chairman of Association of Bankers, Bangladesh (ABB) and Managing Director of Eastern Bank, M Mahfuzur Rahman, BB Executive Director, Quazi Shirajul Islam, President of Bangladesh Jewellers' Association, Priyani Malik, World Bank Financial Sector Specialist, and Khurshid Alam Khan, ACC panel Lawyer participated in the Members‘ Conference.

ICAB Council Member and Past President Md. Syful Islam FCA presented the keynote paper in the seminar.

The key-note speaker observed that money laundering is a serious threat and is detrimental to the economy of a country and the society at large. He focused on impacts like the causes of loss of government revenues, increase human

trafficking, social injustice and damage of the reputation of the country. In his paper Mr. Syful described the types of offences committed and observed that Bangladesh is losing equivalent foreign currency of Tk. 100 Cr. without any value for money and at the same time, losing tax revenues of Tk. 37.50 Cr. He stressed that due attention is needed from Bangladesh Bank, National Board of Revenue (NBR) and the ICAB to guard against the foreign currency outflow and loss of tax revenues by such international malpractices.

He added that currently Australia, Canada, New Zealand, UK & USA are applying full accrual accounting standards, those are broadly consistent with IPSAS requirements and more 25 countries are pursuing accruals basis accounting system.

He further went on, as we all are committed to improve our country’s world ranking in terms of AML success from the existing 57th to the 10 best performers, BFIU, ACC & other enforcement agencies must up hold the principle of honesty and integrity while implementing any laws, rules or regulations in the AML/CFT besides monitoring and taking punitive measures side by side.

Furnishing a good number of observations, he finally recommended that:

a. Capacity of BFIU in respect of manpower and facilities should be enhanced.

b. BFIU should fully exercise its investigative approach to identify all the areas of our country’s money laundering threats with particular emphasis on the sector-wise government spending & revenue

Members' Conference on ‘Anti-Money Laundering and Counter-Terrorist Financing Measures of Financial and DNFBP Sectors: Bangladesh Perspective’

T

Md. Syful Islam

Continued page 18

Schedule of Trainings and Workshops in June and July

The tentative schedule of the ICPE organized Trainings and Workshops in June & July 2015 are furnished below:

Source: ICAB Centre for Professional Excellence (ICPE)

Sl. No. Title Date

1. Workshop on "Effective Presentation through PowerPoint"

12-14June2015

2. Workshop on "Public Procurement Regulations and Practices for Chartered Accountants"

13 June 2015

3. Training Programme on "ERP Software (SAP -FI /CO)"4th Session

25 July -

2015