Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    The Institute of Chartered Accountants of Bangladesh

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Bangladesh


    2. Name of member body:
      The Institute of Chartered Accountants of Bangladesh

      Or please specify name:



    3. Individual responsible for preparation:
      Secretary


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      07 / 1977



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      1. South Asian Federation of Accountants (SAFA)
      2. Confederation of Asian and Pacific Accountants (CAPA)



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: The Companies Act, 1994
      b). the Enacting body: Ministry of Commerce
      c). date the Act or Code came into force: 01 / 1995


    25. How can IFAC obtain a copy of the Act or Code?
      Hard copy of the Act may be obtained on request


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify): Non-listed Public Companies
      Private companies   Other (please specify): Limited Liability Companies
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities In accordance with the Companies Act, 1994; Securities and Excahnge Rules, 1987; and also International Accounting Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh(ICAB)
      Private companies Companies Act, 1994 contains basic requirements. All companies, irrespective of the size, are required to prepare financial statements. Smaller companies are not excluded from this requirement. All companies use Bangladesh Accounting Standards.
      Governmental
      Not-for-profit
      Other (please describe) Non-listed Public Companies Companies Act, 1994 contains basic requirements. All companies, irrespective of the size, are required to prepare financial statements. Smaller companies are not excluded from this requirement. All companies use Bangladesh Accounting Standards.
      Other (please describe) Limited Liability Companies Companies Act, 1994 contains basic requirements. All companies, irrespective of the size, are required to prepare financial statements. Smaller companies are not excluded from this requirement. All companies use Bangladesh Accounting Standards.


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities In conformity with the Companies Act, 1994; the Securities and Exchange Rules, 1987; and also the International standards of Auditing as adopted by ICAB
      Private companies Companies Act., 1994 contains basic requirements. Bangladesh Standards on Auditing apply to all audits.
      Governmental
      Not-for-profit
      Other (please describe) Non-listed Public Companies Companies Act., 1994 contains basic requirements. Bangladesh Standards on Auditing apply to all audits.
      Other (please describe) Non-listed Public Companies Companies Act., 1994 contains basic requirements. Bangladesh Standards on Auditing apply to all audits.


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:
      Rotation is applicable to the Public-listed Companies only. A company cannot appoint any firm of chartered accountants as its statutory auditors for a consecutive period exceeding 3 years.



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      1. The Securities & Exchange Ordinance, 1969
      3. The Securities & Exchange Rules, 1987

    2. the Enacting body(ies)

      1. The Government of the People's Republic of Bangladesh for a(1)
      2. The Securities & Exchange Rules, 1987

    3. the latest amendment date?

      11/2000
      02/2000


    35. How can IFAC obtain a copy of the Legal authority?
      Hard copy may be obtained on request


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      Not applicable


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      Listed company cannot appoint any firm of chartered accountants as its statutory auditors for a consecutive period exceeding 3 years.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity The Securities and Exchange Rules, 1987 01/2000 ICAB
      Other (please describe) Non-listed entities The Companies Act, 1994 09/1994 The Registrar of Joint Stock Companies & Firms
      Other (please describe) All companies Bangladesh Chartered Accountants Order ICAB
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Hard copy may be obtained on request

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (ICAB)


    44. For ICAB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent professional body created by the Bangladesh Chartered Accountants Order, 1973. The Standards are developed by Technical and Research Committee (TRC) of ICAB

      b. Name of standards

      Bangladesh Standards on Auditing(BSA)


    45. How many voting members does the standard-setting body have?
      20


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, membership in ICAB.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Council of ICAB.


    49. What is the term of appointment for members?
      3 Year(s)


    50. For how many years has the standard-setting body been in existence?
      32 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      500,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      61.0000



    52. To what entity is the standard-setting body accountable?
      The Ministry of Commerce, Govt. of Bangladesh


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Through publication in the Bangladesh Accountant, the official journal of ICAB; and also through CPE Seminars/Workshop

    2. accessibility of meetings (i.e., public or private)

      Meetings with different Professional Bodies, Regulatory Bodies, Trade Bodies and Concerned Government Ministries.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Approval by the Council of ICAB by majority of votes.

    4. other relevant due process activities

      BSA are based on International Standards on Auditing as issued by IAASB. So far 35 ISAs has been adopted by ICAB as BSAs.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      15 Day(s)


    Section 5B -- Standard-Setting (The Registrar of Joint Stock Companies & Firms)


    44. For The Registrar of Joint Stock Companies & Firms, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Oversight/regulatory body on behalf of the Government of Bangladesh

      b. Name of standards

      N/A


    45. How many voting members does the standard-setting body have?
      N/A


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      N/A


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      N/A


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    52. To what entity is the standard-setting body accountable?
      Government of Bangladesh


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      N/A

    2. accessibility of meetings (i.e., public or private)

      N/A

    3. approval process for final standards (i.e., majority required to approve final standards)

      N/A

    4. other relevant due process activities

      N/A


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice The Bangladesh Chartered Accountants Bye-laws, 1973-Schedule-C, Part-I and D. 03/1992 ICAB
      Professional Accountants in Business The Bangladesh Chartered Accountants Bye-Laws, 1973-Schedule-C, Part-II 03/1992 ICAB
      Professional Accountants in the Public Sector The Bangladesh Chartered Accountants Bye-Laws, 1973-Schedule-C, Part-II 03/1992 ICAB
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Hard copy may be obtained on request

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (ICAB)


    56. For ICAB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent professional body created by the Bangladesh Chartered Accountants Order, 1973.
      There is no specific standing committee that works on Code of Ethics. Depending on the requirements, ad-hoc committee is formed to work on such formulation.


      b. Name of standards

      Code of Ethics


    57. How many voting members does the standard-setting body have?


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, membership in ICAB


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Council of ICAB


    61. What is the term of appointment for members?
      Year(s)


    62. For how many years has the standard-setting body been in existence?
      Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?
      The Ministry of Commerce, Government of Bangladesh


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Through publication in the Bangladesh Accountant, the official journal of ICAB; and also through CPE Seminar/Workshop

    2. accessibility of meetings (i.e., public or private)

      Meetings with different Professional Bodies, Regulatory Bodies, Trade bodies and Concerned Government Ministries.

    3. approval process for final standards (i.e., majority required to approve final standards)

      Approval by the Council of ICAB by majority of votes

    4. other relevant due process activities

      The ethical rules are based on SAFA Code of Ethics for Professional Accountants which is in line with the IFAC Code of Ethics.


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      The general education tier is Primary, Secondary and tertiary in our country.Primary education is compulsory.


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      The ICAB is the regulatory body of the Accounting profession in Bangladesh. A person qualified as a chartered Accountant is entitled to operate as an Accountant or an Auditor. But to be an Auditor, a Chartered Accountant must be a member of the ICAB.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Minimum a second class graduate with at least one first class/division results. (A graduate who obtains a second class in the graduation examination is a second class graduate. Class denotes gradation.)
      Professional examinations
      Professional Examinations Level-I, Level-II & Lavel-III
      Practical experience
      3(three) to 3 1/2(three & half) years as an Articled Student
      Final qualifying examination
      Professional Examination Level-III
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      The CA curriculum is set by ICAB as the regulatory body of the Accounting Profession

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      The Council of ICAB regulates the accounting profession in Bangladesh in accordance with Bangladesh Chartered Accountants Order 1973 and Bangladesh Chartered Accountants Bye-Laws, 1973. It constitutes a Board of Studies, a Committee of the Council of ICAB, to set out, amongst others, the educational requirements after study and public comments from the Members of ICAB.

    2. How many voting members does the relevant body(ies) have

      20

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      32 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:
      Not applicable


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Council of Institute of Chartered Accountants of Bangladesh(ICAB)


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      The Institute of Chartered Accountants of Bangladesh(ICAB) grants the license


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      None



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Constitution of Bangladesh 05/2004 Comptroller and Auditor of Bangladesh(CAG)
      Ministry/department Constitution of Bangladesh 05/2004 Comptroller and Auditor of Bangladesh(CAG)
      Statutory authority/agency Various Acts constituting such entities Comptroller and Auditor of Bangladesh(CAG)
      Profit entity owned by government Various Acts constituting such entities 03/1992 ICAB
      State governments
      Local governments Various Acts constituting such entities Comptroller and Auditor of Bangladesh(CAG)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Hard copy may be obtained on request

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Comptroller and Auditor of Bangladesh(CAG))


    83. For Comptroller and Auditor of Bangladesh(CAG), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      An agency appointed by Government of Bangladesh under he Constitution of Bangladesh

      b. Name of standards

      Accounts Rules


    84. How many voting members does the standard-setting body have?
      No separate standard-setting body


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Performance as Civil Accountant


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government of Bangladesh appoints these members and term of appointment is not specified until superannuation is reached.


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      20 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      6,366,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      61.0000



    91. To what entity is the standard-setting body accountable?
      The President, Government of Bangladesh


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Draft Accounts Rules published in the Official Gazette of the Government of Bangladesh.

    2. accessibility of meetings (i.e., public or private)

      Meetings with Government Ministries.

    3. approval process for final standards (i.e., majority required to approve final standards)

      CAG approves the Accounts Rules

    4. other relevant due process activities

      None


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 8B -- Standard-Setting (ICAB)


    83. For ICAB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Responses are the same as to questions 44-54

      b. Name of standards

      Bangladesh Accounting Standards


    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity The Bangladesh Chartered Accountants Order 1973 03/1992 ICAB
      Other (please describe) All entities The Bangladesh Chartered Accountants Order 1973 03/1992 ICAB
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Hard copy may be obtained on request

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (ICAB)


    95. For ICAB, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent professional body created by the Bangladesh Chartered Accountants Order, 1973. The Standards are developed by Technical and Research Committee (TRC) of ICAB

      b. Name of standards

      Bangladesh Accounting Standards (BAS)


    96. How many voting members does the standard-setting body have?
      20


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, membership in ICAB.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Council of ICAB.


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      20 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      500,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      61.0000



    103. To what entity is the standard-setting body accountable?
      The Ministry of Commerce, Govt. of Bangladesh


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Through publication in the Bangladesh Accountant, the official journal of ICAB ; and also through CPE Seminar/workshop

    2. accessibility of meetings (i.e., public or private)

      Meetings with concerned Professional Bodies, Regulatory Bodies, Trade Bodies and Government

    3. approval process for final standards (i.e., majority required to approve final standards)

      Approval by the Council of ICAB by majority of votes

    4. other relevant due process activities

      So far 30 IASs have been adopted by ICAB as Bangladesh Accounting Standards(BAS). TRC is currently reviewing the remaining IASs and IFRSs for adoption.


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      15 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Securities and Exchange Commission of Bangladesh (SEC)


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      SEC requires compliance with IAS and ISA adopted by ICAB under the Securities and Exchange Rules, 1987; and also disclosure requirements prescribed under the Securities and Exchange Rules, 1987 for listed entities; and monitor and enforces compliance with such accounting, reporting or auditing requirements under the Securities and Exchange Ordiance, 1969 and Securities and Exchange Rules, 1987 made there under.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      SEC oversees the compliance of ISA adopted by ICAB; and auditing requirements under the Securities and Exchange Rules, 1987.

    2. accounting and auditing standard-setting

      SEC requires ICAB to adopt IAS and ISA for listed entities

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      SEC reviews financial statements prepared by listed entities and filed with it so as to ensure compliance with the accounting and disclosure requirements prescribed by IAS and the Securities and Exchange Rules, 1987.



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Dhaka Stock Exchange
      Chittagong Stock Exchange



    Section 10B -- Stock Exchange
    Dhaka Stock Exchange Details


    110. For Dhaka Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Listing Department of stock exchanges monitors and enforces such requirements.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Penalties; and in extreme cases, de-listing of listed entities from stock exchanges.

    3. How enforcement actions are administered.

      Listings Department administers the enforcement actions.


    Section 10B -- Stock Exchange
    Chittagong Stock Exchange Details


    110. For Chittagong Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      Listing Department of stock exchanges monitors and enforces such requirements.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      Penalties; and in extreme cases, de-listing of listed entities from stock exchanges.

    3. How enforcement actions are administered.

      Listings Department administers the enforcement actions.



    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The Bangladesh Bank, the central bank of Bangladesh, established under the Bangladesh Bank Order 1972 regulates the banks. The central bank prescribed regulatory reporting requirements for the banks in Bangladesh including compliance with IAS 30 in preparation of their financial statements.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      The Bangladesh Bank under the Bangladesh Bank Order, 1972 and Bank-Company Act, 1991 requires compliance with prescribed regulatory reporting requirements for the banks and also IAS 30.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Audit profession is primarily regulated by ICAB; but the Bangladesh Bank may also set auditing requirements for the banks.

    2. accounting and auditing standard-setting

      ICAB is the primary accounting and auditing standard setting body; but Bangladesh Bank may also set the accounting, reporting and auditing requirements for the banks.

    3. review of financial statements prepared by listed entities

      The Bangladesh Bank reviews financial statements prepared by the banks(including listed ones) so as to ensure compliance with prescribed regulatory reporting requirements for the banks and also IAS 30.

    4. enforcement of accounting, reporting and auditing requirements

      The Bangladesh Bank enforces the accounting, reporting and auditing requirements for the banks as a primary regulator; and ICAB acts as a secondary regulator on referral from the Bangladesh Bank to enforce compliance by the chartered accountants.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      The Bangladesh Bank


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Financial Institution Act, 1993


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      Audit profession is primarily regulated by ICAB. But the Bangladesh Bank may also set auditing requirements for the non-banking financial institutions.

    2. accounting and auditing standard-setting

      ICAB is the primary accounting and auditing standard setting body; but Bangladesh Bank may also set the accounting, reporting and auditing requirements for the non-banking financial institutions.

    3. review of financial statements prepared by listed entities

      The Bangladesh Bank reviews financial statements prepared by the non-banking financial institutions so as to ensure compliance with prescribed regulatory reporting requirements for the non-banking financial institutions and also IAS 30.

    4. enforcement of accounting, reporting and auditing requirements

      The Bangladesh Bank enforces the accounting, reporting and auditing requirements for the non-banking financial institutions as a primary regulator; and ICAB acts as a secondary regulator on referral from the Bangladesh Bank to enforce compliance by the chartered accountants.



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      The Chief Controller of Insurance


    119. What is the source of Legal authority of the regulatory authority(ies)?
      a. Insurance Act, 1938 b. Insurance Rules, 1958


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      Audit profession is regulated by ICAB. But the Chief Controller of Insurance may also set the auditing requirements for the insurance companies.

    2. accounting and auditing standard-setting

      ICAB is the accounting and auditing standard setting body; but the Chief Controller of Insurance may also set the accounting, reporting and auditing requirements for the insurance companies.

    3. review of financial statements prepared by listed listed entities

      The Chief Controller of Insurance reviews financial statements of Insurance companies(including listed ones) so as to ensure compliance with the reporting requirements under the Insurance Act, 1938 and the Insurance Rules, 1958.

    4. enforcement of accounting, reporting and auditing requirements

      The Chief Controller of Insurance enforces the accounting, reporting and auditing requirements for the insurance companies as a primary regulator; and ICAB acts as a secondary regulator on referral from the Chief Contoller of Insurance to enforce compliance by the chartered accountants.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      National Board of Revenue


    122. What is the source of Legal authority of each regulatory authority?
      a. Income-tax Ordinance, 1984
      b. Income-tax Rules, 1984


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      Audit profession is regulated by ICAB; but the National Board of Revenue may also set the auditing requirements for the taxable companies.

    2. accounting and auditing standard-setting

      ICAB is the accounting and auditing standard setting body; but the National Board of Revenue may also set the accounting, reporting and auditing requirements for the taxable companies.

    3. review of financial statements prepared by listed listed entities

      The Tax Authorities under the National Board of Revenue review the compliance of the accounting, reporting and auditing requirements for the taxable companies (including listed ones)

    4. enforcement of accounting, reporting and auditing requirements

      The Tax Authorities under the National Board of Revenue enforce the accounting, reporting and auditing requirements for the taxable companies as an assessor; and ICAB acts as a secondary regulator on referral from the National Board of Revenue to enforce compliance by the chartered accountants.



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      Quality Assurance Board (QAB) has been set up recently by the ICAB Council to monitor and ensure quality assurance programs for the members in practice.



    125. Under what authority does the organization conduct the program of quality assurance review?


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?




    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Investigation & Disciplinary Committee of the Council-ICAB


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      15


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job, membership in ICAB


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Council of ICAB


    134. What is the term of appointment for members?
      3 Year(s)


    135. For how many years has the body been in existence?
      32 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      10,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      61.0000 (specify currency)



    137. To what entity is the body accountable?
      The Council of ICAB


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      15 Day(s)



     

     

    Disclaimer

    The information contained within the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaires, Part 2 SMO Self-Assessment Questionnaires, and Part 3 SMO Action Plans are based entirely on information provided to IFAC by the IFAC member or associate to which the information relates. Further, the information has been collected by IFAC for the exclusive use and benefit of IFAC and IFAC's members and associates, but is being made available through this website to the general public in the interest of transparency of the IFAC Member Body Compliance Program. While certain efforts are made to validate the information, IFAC undertakes no obligation to confirm or investigate the completeness or accuracy of any of the content of the questionnaire or action plan, now or at any time in the future. Persons accessing the questionnaire or action plan assume full responsibility for the use of the information set forth herein. IFAC does not make any express or implied warranties or representations whatsoever as to any information provided through the questionnaire or action plan, including, without limitation, that the information contained herein will be error-free. IFAC shall not be liable for any damages, including, without limitation, direct, indirect, incidental, special, punitive or consequential damages, that result in any way from your use or reliance on information provided in the questionnaire or action plan. If you need to rely on the information set forth herein for any purpose, you are urged to confirm the information set forth herein with other sources.

    * Indicates organizations that qualify to submit SMO Action Plans biennially

  •  
 

Important Note: Please read our website Terms of Use.

ALL RIGHTS ARE RESERVED. You may not reproduce, store or transmit in any form or by any means, electronic or otherwise, including photocopying, recording, or storage in any type of reference or information retrieval system, nor may you translate, modify or create derivative works or adaptations based on the text of any file, or any part thereof, without the prior written permission of the International Federation of Accountants (IFAC). Please direct permission requests to permissions@ifac.org. See also Permissions Information.