Auditors find accounting irregularities by Fortune and ITC
Auditors have found deviations from accounting standards by Fortune Shoes and IT Consultants (ITC), according to the Dhaka Stock Exchange (DSE).
The auditor’s qualified opinion published by the country’s premier bourse on Sunday reveals that Fortune Shoes Ltd has accounted for its realised gains from its investment in marketable securities for the fiscal year that ended on 30 June.
The gain increased the company’s disclosed profits against each share.
However, the company had an unrealised loss of over Tk26 lakh in the same portfolio on 30 June, which should have been accounted for as unrealised loss in the other comprehensive income segment and the company did not do it.
Realised profit is what an owner of an asset books after selling that off, while unrealised profits remain on paper until sold off.
ITC, on the other hand, did not comply with the International Accounting Standard while charging depreciation on property, plant and equipment, opined its auditor.
The Institute of Chartered Accountants of Bangladesh (ICAB) already has fully adopted the international accounting, financial reporting and auditing standards in its bid to make Bangladeshi financial reports credible to global users.
Unlike before, professional auditors are raising their red flags before the users of financial statements as soon as they observe any deviation from standards.
Auditors are subject to punishment nowadays if they fail to uphold their professional responsibility.