The cabinet gave final approval to the draft of the proposed Financial Reporting Act 2014 at its regular meeting yesterday with Prime Minister Sheikh Hasina in the chair.
A bill in this regard would soon be placed in parliament to make it a law.
According to officials, the law is to upgrade the country’s financial reporting system to international standards and improve the standards of reporting by audit firms.
Cabinet secretary Musharraf Hussain Bhuiyan said the law is also expected to cast a positive impact on the country’s capital market and help prevent price manipulation. He said a quality report is important to ensure good governance in the financial sector.
Under the law, the government will ensure the standards of the financial reporting, he said.
He said chartered accountants will be accountable under the law.
Secretary said a council will be formed to oversee the implementation of financial reporting act.
A chairman will head the 10-member council to have four departments.
Four executive directors will work under the chairman. Four departments will determine standard of reporting, monitor financial reporting department, re-audit financial reporting department and act implementation department.
Secretary said there will be search committee led by Comptroller of Auditor General to appoint chairman and executive directors of the council.
Earlier on August 19, the cabinet approved the draft of the FRA 2014 to ensure transparency of audit systems.
