DHAKA, Jan 2, 2023 (BSS) - The Institute of Chartered Accountants of Bangladesh (ICAB) is to provide a document verification system (DVS) to private Padma Bank Limited under a deal, an ICAB statement said here today.

"DVS is well accepted by the regulators, financial institutions including banks, and corporate," the statement quoted ICAB president Md. Moniruzzaman as saying as the two institutions signed the memorandum of understanding (MoU) yesterday at CA Bhaban in the capital.

He added the system would enhance auditors' credibility to a large extent as it was designed to assess accurately the financial statements of companies or other institutions.

Padma Bank Limited managing director & CEO Tarek Reaz Khan said that Banks operate mainly for deposit mobilization, sanctioning the loans and assessment of credit risk. 

For functioning those properly, they need to assess the financial statements of the company accurately. "We're coming into this collaboration through this MoU to ensure the proper assessment of the financial statements and analysis of the risk. It will also reduce the tax evasion," he added. 

ICAB council member & convener Mohammed Forkan Uddin told the function that the system would secure the government revenue, help reduce the number of loan defaulters, attract foreign direct investment, and establish financial eco-system in the country.

"At the same time, DVS will protect the chartered accountants dignity as until currently unauthorized people are found to be signing financial statements in the name of Chartered Accountants," he added.

ICAB vice president Lutful Hadee called DVS a mechanism to help CA firms, banks, leasing companies, and the VAT authority to be more compliant with the VAT act.