B Mirror Report: The Bangladesh Securities and Exchange Commission (BSEC) has imposed a ban on an audit firm and its engagement partner over alleged irregularities in auditing the financial statements of Fareast Islami Life Insurance Company Limited.

According to official sources, Mahfel Huq & Co. and its engagement partner Md. Abu Kaisar were found to have been involved in irregularities while conducting audit activities for the company’s financial reports.

The regulatory body noted that the Financial Reporting Council (FRC) had previously taken certain actions regarding the matter. However, BSEC deemed those measures insufficient. After detailed discussions in a recent commission meeting, the regulator decided to take stricter action to safeguard investor interests.

As part of the decision, Mahfel Huq & Co. has been barred from conducting audit activities for listed companies for one year, while Md. Abu Kaisar has been banned for two years.

Sources at BSEC stated that the firm and its partner were responsible for auditing the financial statements of Fareast Islami Life Insurance Company for the years 2018 and 2019. The investigation was launched following multiple allegations related to those audits.

After reviewing the findings and holding hearings, the commission concluded that stronger enforcement was necessary to protect investors and ensure compliance with securities laws.

Market analysts emphasize that auditors play a crucial role in ensuring the reliability of financial reports of listed companies. Any negligence or misconduct can significantly undermine investor confidence in the capital market.