Each and every small, medium, and large economic entity contributes to the national economy through investments and capital flows, executing exports and imports, generating employment opportunities, providing taxes, and transferring technology.

Transparency is one of the core components of accountability, which is crucial for the development and sustainability of an economic entity.

Accounting ensures transparency to stakeholders, such as investors and regulatory bodies, by providing access to relevant data for informed decision-making.

When investors have clear and reliable information about a country's business environment, they are more likely to invest in its economy.

Transparency and accountability mechanisms, pre-conditions for economic development, act as deterrents to corruption.

Transparency prevents monopolistic behaviour and encourages innovation and efficiency improvements, which are essential for equitable development.

Accounting is a common term; wherever monetary transactions occur, there is a scope for accounting, known internationally as financial statements.

Most individuals maintain accounts for personal purposes, but for entities performing commercial, business, financial, or fiduciary activities, the importance of accounts or financial statements is significantly higher.

Accounting contributes to accountability in organisations by providing tools for gathering and recording information accurately and transparently.

Without proper financial statements, stakeholders cannot analyse their financial health or determine whether operations earn profits or incur losses.

Financial statements are not mere collections of figures but represent a pictorial view of an entity's operational position.

Despite their importance, many entrepreneurs in our country view maintaining accounts as simple and fail to give it due attention.

In the era of globalisation, preparing financial statements that comply with International Financial Reporting Standards (IFRS) requires professional accountants.

However, many entrepreneurs are reluctant to spend the required amount for IFRS-compliant financial statements.

According to local laws and international best practices, financial statements of commercial entities must be audited by chartered accountants.

The main objective of such audits is to confirm that the financial statements prepared by management are "true and fair" and free from material misstatements.

However, the efforts and time required to verify financial statements and express a "true and fair" opinion are often undervalued.

Moreover, there is limited public participation in reviewing, observing, and commenting on published financial statements.

Feedback from users is essential for improving the quality of products and services, but such feedback is significantly lacking.

A few years ago, there was a common belief that many entities prepared multiple sets of financial statements and that audit quality was poor due to a shortage of qualified auditors.

To address this, the Institute of Chartered Accountants of Bangladesh introduced digital numbering of audit reports, known as the Document Verification Code (DVC), to eliminate the scope for multiple sets of audited financial statements.

In the last two years, nearly 300 young, knowledgeable, and enthusiastic chartered accountants have started practising, sacrificing lucrative services to enhance the profession's capacity.

However, the results have not been satisfactory due to the lack of parallel development among other stakeholders, such as owners, users of financial statements, and regulators.

Over the last two to three years, numerous audit reports with modified opinions have been issued, but their impact on users of financial statements remains negligible.

In light of these circumstances, some suggest exploring alternatives to traditional audits due to perceived capacity issues.

However, external or statutory audits are specialised activities requiring professionals with specific qualifications and experience.

Regardless of an entity's size, only qualified professionals with rigorous training and knowledge can conduct such audits effectively.

In Bangladesh, the same auditing standards apply to micro, small, and large entities, although their application may vary based on the auditor's experience.

The discussion underscores that there is no lack of capacity or scarcity of auditors; rather, there is a lack of awareness about the importance of proper accounting, understanding financial statements, and interpreting audited opinions.

Ensuring transparency, accountability, and good governance across economic entities requires proper accounting and auditing.

To achieve this, steps must be taken to raise awareness about the importance of accounting among stakeholders.

The writer is a former president of the Institute of Chartered Accountants of Bangladesh (ICAB).