Financial Reporting Council (FRC) is set to take action against the audit firm MABS & J Partners, Chartered Accountants, for approving false financial information in the audited report of Golden Harvest Agro Industries, a publicly traded company.
The irregularities were flagged by the Bangladesh Securities and Exchange Commission (BSEC), which formally requested the accounting regulator FRC to act against the auditor, according to BSEC officials.
FRC Chairman Dr Md Sajjad Hossain Bhuiya told TIMES of Bangladesh on Saturday that a show-cause notice has already been issued to the audit firm.
He added that Executive Director Md Tarek is reviewing the matter and that the council will take action in accordance with the law.
BSEC identified that the audit report contained fabricated information and inflated asset valuations that did not reflect the company’s actual operations, potentially misleading investors.
The auditor either failed to detect these irregularities or deliberately ignored them.
The commission said it conducted a physical inspection of Golden Harvest’s factories, office premises, financial records, and other relevant documents, uncovering major discrepancies absent in the company’s financial statements.
BSEC Director and spokesperson Abul Kalam confirmed that a copy of the inspection report, along with supporting financial details, has been forwarded to the FRC for necessary action under the Securities and Exchange Rules, 2020.
