DVS to enhance credibility, transparency in accounting system

30 September 2022

Staff Reporter :
Document Verification System (DVS) will bring some positive changes to the accounting system of the country, experts at a discussion said.
But, a combined effort from the business community, Financial Reporting Council, ICAB and the stakeholders are required to enhance the credibility and transparency in the accounting system through DVS, they added.
They made the comments while speaking at a discussion on Document Verification System (DVS) jointly organized by the Institute of Chartered Accountants of Bangladesh (ICAB) and Bangladesh Institute of Bank Management (BIBM) at BIBM auditorium on Thursday.
Dr Ahsan H Mansur, Chairman BRAC Bank Limited and Executive Director of Policy Research Institute of Bangladesh (PRI), said, "DVS will streamline our accounting system while the private sector including Banks are required to follow the international accounting standards like International Financial Reporting Standards (IFRS)."
"An accounting system which is accepted by all can boost the investment. But many organizations still follow the traditional accounting system which is not suitable for proper development," he opined.
"Tax GDP ratio is 8.5 percent which is lower than any other countries in the world as there is a trend to avoid taxes. NBR should reform its tax administration," Mansur added.
ICAB President Md Shahadat Hossain said that the success of the DVS depends on the auditors, entities, users and the regulators, where concerted efforts are required.
Citing some examples of punishments taken by ICAB against professional misconduct, he said no other professions or regulators have taken such bold decisions against their stakeholders.
Mohammed Forkan Uddin, Council member of ICAB, said, DVS will gradually eradicate the culture of bad loans, tax evasion, multiple financial statements as it is completely a secured system for any users.
DVS is changing the capital markets scenarios and therefore, it will help to increase initial public offering (IPO), he said.
DVS has already become quite acceptable to the business community and other regulatory bodies. ICAB has a similar arrangement with National Board of Revenue (NBR), Financial Reporting Council (FRC), Bangladesh Securities and Exchange Commission (BSEC), Bangladesh Investment Development Authority (BIDA), NGOs Affairs Bureau and Registrar of Joint Stock Companies and Firms (RJSC).
ICAB has developed the Document Verification System (DVS) to authenticate the audited financial statements of different entities.
DVS will make the accounting system more acceptable and reliable. ICAB introduced this software database document verification system (DVS) from 1 December 2020 to curb malpractice of producing multiple financial statements and to establish transparency and accountability in the financial statements of different entities.

Add Rate