Bangladesh, Aug. 31 -- The financial reporting of listed banks still poses a systemic risk, as regulatory waivers allow lenders to avoid compliance with accounting standards that are widely accepted globally.

Advertisement Analyzing financial statements from the last few years, The Financial Express found that many banks have received Emphasis of Matter (EOM) paragraphs instead of qualified audit opinions, despite significant financial mismatches.

"The necessity of a qualified opinion cannot be bypassed by using an EOM. But the auditors have the scope to avoid accountability for not issuing qualified opinions because of regulatory waivers," said an auditor who preferred anonymity.

An auditor is required to issue a qualified opinion on...