Country faces severe dearth of chartered accountants

The country is facing a severe dearth of chartered accountants (CAs) as less than 1,000 qualified CAs are working at different levels against the requirement of about 12,000, according to an estimate of the Institute of Chartered Accountants of Bangladesh (ICAB).Partly qualified CAs and non-chartered accountants now fill the gap, which, experts said, could hurt stakeholders' expectation of getting accurate and reliable financial reporting.According to the ICAB, the gap has been created due to the expansion of economic activities, spurred by rapid growth in investment in private sector, now the main-engine of Bangladesh economy. While a consistent growth of investment in the capital market has also fuelled the demand for qualified accountants to prepare reliable financial reports, as many investors make their decisions based on the accounting numbers. However, CAs have not come out in line with the requirement due to the poor rate of passing. The ICAB said it was due mainly to the enrolment of weak students in the past.“In the last 15 years, our national economy registered a strong growth supported by increase in economic activities in the private sector, which is in strong need of qualified CAs,” said Md Humayun Kabir, president of ICAB.As per ICAB data, there are only 1015 CAs in Bangladesh . Of them, about 200 are working abroad. The ICAB chief said the institute has estimated the requirement based on the demand from corporate bodies. “We receive requests for CAs on a regular basis now,” Humayun said, claming that he had received at least 100 requests for CAs in the last seven months.He said in most of the cases partly qualified CAs fill the gap and prepare financial reports, which might affect the optimum use of economic resources by firms. He, however, hoped that more CAs will come out in future, as good students with business education, inspired by attractive remuneration and benefits, are joining the foray.At present, the salary range in CA profession is between Tk 100,000-Tk 500,000. To cope with demands, the ICAB has simplified the procedures so that more students admit and pass out every year. “We have taken a 10-year strategic plan aiming at increasing the number and quality of CAs,” he said.NI Chowdhury, secretary of ICAB, said nowadays he receives every day at least two requests for CAs. Dearth of CAs may create the scope of flawed financial reports that, in turn, may affect both investors and government's revenue earning, he said.Dr Mahmud Hossain, assistant professor of Accounting, University of Memphis , USA , said qualified accountants are required to prepare accurate and reliable financial reports for investors, especially in the stock market.“Investors make decision based on accounting numbers. Therefore, it is important that financial statements disseminate accurate and reliable information,” he said during his visit in Dhaka early this month.Mahmood Osman Imam, a professor of finance at Dhaka University who tracks corporate governance practices in Bangladesh , admitted that there are shortages of CAs but said audit or CA firms should improve the quality of auditing.“Except a few of the audit firms, most of the external audit firms fail to ensure quality in their audits, ” he said. “If they (audit firms) perform their jobs properly, transparency could have been ensured much, he added.“Rather than arguing about the shortage, they should improve the quality of auditing,” he said.