Bangladesh Bank failed to provide a “qualified audit report” in August to PricewaterhouseCoopers (PwC), a global audit firm, under the IMF’s extended credit facility conditions, said a recent report of the global lender.
International Monetary Fund set an ECF condition for Bangladesh Bank to carry out its annual audit by a globally renowned audit firm. The central bank appointed PwC for its external annual audit.
“The central bank submitted an unqualified report to PwC in August for doing the external auditing of its financial reports,” said the ECF report.
“The submitted report failed to match up to the IMF fund recommendations that it had laid out in July 2011 alongside with the safeguards assessment requirement,” the report added.
IMF has set a new benchmark for audit report of Bangladesh to meet ECF conditions. An audit report will be placed in March 2014.
According to the lender, Bangladesh Bank is on track to complete a full external audit of its fiscal 2013 financial statements by PwC.
IMF suggested the central bank appoint a certified chartered accountant as an adviser to the audit committee of the bank’s board until the committee is reconstituted.
It also said Bangladesh Bank also planned to engage a global firm to audit its financial statements on an annual basis.
While talking to the Dhaka Tribune on the issue, ex-adviser of a caretaker government, Dr AB Mirza Azizul Islam said: “International traders may lose confidence on Bangladesh Bank, which could lead to casting adverse impact on the country’s whole business environment.”
He also suggested Bangladesh Bank appoint a professional auditor should the report submitted earlier was not qualified.
“However, auditing of the central bank will not only be examined by the IMF but also by the Bank and Financial Institution Division.” Former finance adviser added.
According to him, quality of audit reporting has been falling sharply since last four years, which made large-scale credit frauds like Hall-Mark and Bismillah in the banking sector possible.
“Auditing standard in the banking sector must be improved,” Mirza Aziz stressed.