FM directs CAs to maintain more transparency

Kathmandu, July 17:

Finance Minister Dr. Yubaraj Khatiwada has directed the chartered accountants (CAs) to maintain more transparency while preparing the audit reports of the public and private companies, and avoid preparing reports that support tax evasion.

“The government has been promoting the concept of a transparent tax administration and good governance, which should be reflected in the audit reports,” he said while speaking at the National Best Presented Annual Report (2016/17) award distribution ceremony, organised by the Institute of Chartered Accountants of Nepal (ICAN), on Tuesday.

He also asked the CAs to adhere to the international norms and practices of auditing and reporting.

We want transparency in every financial activity. So prepare financial reports in a way that will support the government goal, he said.

According to him, the government was for punishing the auditors who use their skills to conceal misappropriation and evade taxes. The government has tabled the Auditing Bill in the parliament, which includes best international practices and international financial reporting standards (IFRS).

He said that the accounting system in Nepal was also in transition as it was moving towards the IFRS from the traditional auditing methods.

Dr. Khatiwada appreciated the strategic plan developed by ICAN and directed the auditors and CAs to adhere to the professional code of conduct.

He also directed the ICAN to use its regulatory power and punish those who commit misconduct while preparing financial reports.

Auditor General Tanka Mani Sharma also asked the CAs to maintain utmost transparency in preparing accounting reports.

On the occasion, ICAN awarded seven companies for best presented annual report.

In the manufacturing category, Bottlers Nepal Limited won the best presented annual report award, and Butwal Power Company was the runner up.

Similarly, Credit Information Bureau and Oriental Hotels Limited won the best report award for others and service category respectively.

Likewise, in the banking category, Citizen Bank International won the best presented award, and Standard Chartered Bank Limited and Nepal SBI Bank Limited were the first and second runners-up.

Published in The Rising Nepal daily on 18 July 2018.