Institute of Chartered Accountants of Bangladesh

The Financial Reporting Act of 2015 established the Financial Reporting Council (FRC) to conduct quality assurance (QA) reviews in Bangladesh. Although the FRC has this responsibility, the Quality Assurance Board (QAB) under the Institute of Chartered Accountants of Bangladesh (ICAB) continues to conduct QA reviews in collaboration with and following standards as adopted by the QAB. ICAB reports that the QA system in Bangladesh is aligned with the requirements of SMO 1 and includes the adoption of ISQM 1.

Through the results of the QA review system, ICAB identifies common issues that relate to quality control standards from the work of auditors and audit firms, to organize workshops and continuing professional development programs that improve its members’ professional competence and quality of work. ICAB reports it has visited member firms to update members on ISQM 1 requirements and to provide training on the implementation of the Audit Practice Manual. In general, ICAB conducts CPD and other training on quality assurance and related standards in Bangladesh.

Current Status: Sustain

The Institute of Chartered Accountants of Bangladesh (ICAB), the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and local universities are responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants in Bangladesh.

CPD requirements are mandatory for all members whether in service or in practice. ICAB has developed CPD for its members, which consist of seminars/conferences/training and workshops on accountancy related subjects, and programs on offer also include courses on basic soft skills and business-related subjects for individuals who work in different industries. The CPD program is open to all members and individuals outside the profession, including regulators and government departments. In 2023, ICAB offered 19 CPD and as of May 2024, 7 CPD have been offered.

ICAB has conducted an assessment of its system against the IES and reports full alignment.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is authorized to set auditing standards in Bangladesh. The latest ISA are adopted in Bangladesh.

Although the FRC has authority to set the standards, ICAB continues to conduct the majority of the work around researching and presenting the applicable standards to the FRC for its approval.

ICAB’s Technical and Research Committee maintains a process to ensure that its members are kept up to date regarding auditing standards as whenever updates are available from FRC or the IAASB. The Committee is disseminates updates to ICAB members and does so via technical updates, its website, and magazines. The committee also organizes workshops, training programs, seminars, and webinar from time to time based on topics related to the ISA.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is authorized to adopt and develop a Code of Ethics for all professional accountants in Bangladesh. The latest International Code of Ethics for Professional Accountants is adopted in Bangladesh.

Although the FRC has authority to set the standards, ICAB continues to conduct the majority of the work around researching and presenting the applicable standards to the FRC for its approval.

ICAB supports the implementation of ethical requirements by organizing various seminars, workshops, and continuing professional development programs on the IESBA Code, the institute’s by-laws, and on topics related to ethics in the finance industry. ICAB has also established an Ethics Support Mechanism that allows members to communicate with a panel of senior members of ICAB on confidential topics related to ethical behavior. The institute also organizes an annual leadership program for new members emphasizing the importance of the professional code of conduct. ICAB and FRC collaborate in the local and international standard-setting process.

Current Status: Sustain

The Constitution of Bangladesh outlines the public sector accounting framework and authorizes the Office of Comptroller and Auditor General (OCAG) of Bangladesh outlines the accounting framework and is authorized to determine applicable standards for the public sector.

While it has no responsibility to adopt public sector accounting standards, ICAB reports that it utilizes best endeavors to support the adoption of public sector standards by engaging in regular annual discussions with relevant government agencies, such as OCAG of Bangladesh and providing technical input in the process to implement IPSAS in the country. ICAB has established a Committee on Public Finance and Public Sector Accounting to assist with this process. It also conducts training on public financial management in Bangladesh.

ICAB supports its members in building awareness of public sector accounting by collaborating with local regulators and other regional professional accountancy organizations to develop technical sessions on various subjects related to public sector accounting. ICAB has also collaborated with the World Bank to organize training on public sector financial management and public sector accounting standards, and the institute has also organized various member conferences and workshops on IPSAS and the financial reporting framework for public sector entities.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is authorized to monitor the conduct of all professional accountants. At the time, both the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) continue to conduct I&D functions for their respective membership.

Under the Bangladesh Chartered Accountants Order 1973, ICAB is responsible for establishing an investigative and disciplinary (I&D) system for its members, and has created three separate independent Boards for Investigation, Discipline, and Appeals. ICAB conducted an assessment of its I&D system against the requirements of SMO 6 and alignment with the requirements.

The institute actively monitors the external press to identify possible misconduct of member’s firms and maintains an ongoing process to flag issues of non-compliance that are raised in review reports prepared by its reviewers. ICAB reports that its system is effective and since 2022, it has reviewed 30 cases of professional misconduct and cases related to matters identified during quality assurance reviews.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is authorized to set accounting standards in Bangladesh. The latest IFRS and IFRS for SMEs is adopted in Bangladesh.

Although the FRC has authority to set the standards, ICAB continues to conduct the majority of the work around researching and presenting the applicable standards to the FRC for its approval.

ICAB supports the implementation of the standards by organizing a range of regular seminars, workshops, and continuing professional development (CPD) programs. The institute also hosts training sessions for bank and government officials on relevant accounting standards.

Moreover, ICAB works to encourage compliance with the accounting standards and to this effect, organizes an annual National Best Presented Annual Report and Corporate Governance Award Ceremony. This ceremony recognizes corporations who have best prepared financial statements using approved standards.

ICAB also actively participates in the international standard-setting process by meeting with various international stakeholders, and collaborating with the FRC in responding to exposure drafts issued by the IASB.

Current Status: Sustain