"The management gives information to the auditors but they should certify or examine information for proper auditing," Mirza Azizul Islam, chairman of Securities and Exchange Commission (SEC), told the seminar.

The Institute of Chartered Accountants of Bangladesh (ICAB) organised the seminar on 'Audit Evidence - BSA 500 and 501' in Dhaka.

The SEC chairman said financial sector and capital market of Bangladesh are characterised by asymmetry of information. "Financial statement is one of the most important elements through which asymmetry of information can be eliminated," he observed.

He, however, said the capital market watchdog observed derogations in some audit reports or financial statements related to deferred payment of taxes, employee benefits and provisions regarding bad-debt.

"The auditors should concentrate more on preparing financial statements which will give a true and fair picture of financial health of a company," Islam said.