The Financial Reporting Council (FRC) has fined 50 auditors for signing audit reports with dates more than a year earlier than the actual completion of the audit work. Each auditor has been fined Tk 10,000.
A member of the council confirmed that the decision was taken at a council meeting held on 23 October. He said auditors are required to sign audit reports on the actual date when the audit procedures are completed.
He added that the auditors violated the rule by signing with dates more than a year back, which prompted the council to impose fines. Regarding the authority to impose financial penalties, he said the law does not specify a fixed amount.
The member said the council has the power to impose fines as required and described this as the first action and a symbolic warning. He said the FRC will take a tougher stance to prevent such incidents in the future.
The meeting also decided to grant registration certificates to the fined auditors on conditions.
They will have to submit written undertakings so that they will not repeat such violations.
Those who signed with dates more than 14 days earlier will also be required to provide undertakings.
A total of 636 auditors and 268 audit firms received approval for registration for the next year. Among the audit firms, 244 are chartered accountant firms and 24 are cost management accountant firms.
Meanwhile, negative reports have been received against 35 auditors from different organisations, and further investigation into them will begin soon.
