Institute of Chartered Accountants of Bangladesh

The Financial Reporting Act 2015 established the Financial Reporting Council (FRC) with responsibility for audit oversight, including monitoring auditors and audit firms. The Institute of Chartered Accountants of Bangladesh (ICAB) continues to operate the quality assurance review system for audit firms through its Quality Assurance Board and Financial Report Monitoring and Practice Review Department, under the broader oversight framework of the FRC.

ICAB’s quality assurance system includes firm-level and engagement-level reviews, monitoring of financial reports, and follow-up with audit firms to address deficiencies identified through practice reviews. ICAB uses the results of quality assurance reviews to identify recurring issues and develop member support activities, including continuing professional development, workshops, firm visits, and guidance on implementation of quality management standards and the Audit Practice Manual. ICAB has also supported implementation of International Standard on Quality Management 1 through awareness-raising and training activities.

Given ICAB’s direct role in operating the quality assurance review system and its ongoing activities to support audit firms in implementing quality management requirements, ICAB is assessed as Sustain for SMO 1.

ICAB should continue coordinating with the FRC to strengthen the consistency, transparency, and follow-up of quality assurance reviews and continue supporting firms in implementing quality management standards and addressing recurring findings from practice reviews.

Current Status: Sustain

The Institute of Chartered Accountants of Bangladesh (ICAB) is responsible for establishing initial professional development and continuing professional development requirements for chartered accountants in Bangladesh under the Bangladesh Chartered Accountants Order 1973 and related regulations. ICAB’s qualification framework includes entry requirements, professional education, examinations, and mandatory articleship, with practical training requirements prescribed through its regulatory framework.

ICAB requires continuing professional development for members and provides seminars, conferences, training programs, workshops, and online learning resources covering accounting, auditing, ethics, technology, leadership, and business-related topics. ICAB also launched a continuing professional development portal in 2023 to support member participation and monitoring. ICAB continues to review its education and training arrangements against the International Education Standards and reports alignment with the relevant requirements.

Given ICAB’s direct responsibility for professional education and continuing professional development and its ongoing activities to support member competence, ICAB is assessed as Sustain for SMO 2.

ICAB should continue reviewing its qualification, practical experience, and continuing professional development requirements against current International Education Standards and emerging competency areas, including sustainability reporting, technology, ethics, and public sector financial management.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is responsible for adopting auditing standards in Bangladesh. The FRC reports that it adopted International Standards on Auditing without modifications in 2021 and that public interest entities and their auditors are legally required to apply standards promulgated by the FRC. The Institute of Chartered Accountants of Bangladesh (ICAB) supports the standard-setting process by conducting technical research, presenting proposed standards and related pronouncements for adoption, and assisting with dissemination and implementation.

ICAB maintains auditing standards and adoption circulars on its website and supports members through technical updates, publications, workshops, seminars, webinars, and continuing professional development on International Auditing and Assurance Standards Board pronouncements. ICAB also uses its Technical and Research Committee and related member support activities to communicate changes in auditing standards and assist firms in implementation.

Given the jurisdiction-level adoption of International Standards on Auditing and ICAB’s ongoing role in technical support, dissemination, and member implementation, ICAB is assessed as Sustain for SMO 3.

ICAB should continue coordinating with the FRC on timely adoption and communication of IAASB pronouncements, including quality management standards and future revisions, and continue providing practical implementation support to audit firms.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is responsible for adopting ethical requirements for professional accountants in Bangladesh. In 2021, the FRC adopted the International Code of Ethics for Professional Accountants, including International Independence Standards, issued by the International Ethics Standards Board for Accountants. The Institute of Chartered Accountants of Bangladesh (ICAB) supports the standard-setting process by conducting technical review, supporting adoption, and assisting with dissemination and implementation of ethical requirements.

ICAB supports implementation through seminars, workshops, continuing professional development, member guidance, and ethics resources available through its website. ICAB has also established an Ethics Support Mechanism that enables members to seek confidential guidance from a panel of senior members on ethical matters. ICAB continues to monitor IESBA developments and support members in applying ethical requirements in practice.

Given jurisdiction-level adoption of the IESBA Code and ICAB’s ongoing activities to support implementation, ICAB is assessed as Sustain for SMO 4.

ICAB should continue updating its ethics-related continuing professional development, member guidance, and Ethics Support Mechanism to reflect current IESBA developments and emerging public interest issues, including sustainability reporting, technology, independence, and professional skepticism.

Current Status: Sustain

The Constitution of Bangladesh provides that the public accounts of the Republic are to be kept in the form and manner prescribed by the Comptroller and Auditor General of Bangladesh, with the approval of the President. The Institute of Chartered Accountants of Bangladesh (ICAB) has no direct responsibility for adopting public sector accounting standards in Bangladesh.

ICAB uses its best endeavors to support public sector financial management reform and implementation of International Public Sector Accounting Standards (IPSAS). ICAB has established a Committee on Public Finance and Public Sector Accounting and engages with relevant public sector stakeholders, including the Office of the Comptroller and Auditor General of Bangladesh. ICAB has also supported awareness and capacity building through training, workshops, and technical discussions on public financial management, government accounting, and public sector reporting.

Bangladesh has not formally adopted accrual-basis IPSAS. The 2023 Public Expenditure and Financial Accountability assessment notes that government financial reports are comparable to Cash Basis IPSAS. Given ICAB’s limited responsibility for public sector accounting standard-setting and its ongoing activities to support public sector accounting reform and capacity building, ICAB is assessed as Sustain for SMO 5.

ICAB should continue engaging with the CAG, government agencies, and development partners to support public sector accounting reform and expand training and guidance on IPSAS and public financial management for members and public sector stakeholders.

Current Status: Sustain

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is authorized to monitor auditors and audit firms and enforce compliance with applicable professional requirements. The Institute of Chartered Accountants of Bangladesh (ICAB) retains responsibility for investigating and disciplining its members under the Bangladesh Chartered Accountants Order 1973 and related bye-laws.

ICAB has established an operational investigation and discipline system for its members. Its framework includes investigation, disciplinary, and appeals arrangements; defined categories of professional misconduct; and sanctions for non-compliance. ICAB also monitors external sources and quality assurance review findings to identify possible misconduct and has taken disciplinary action in recent years, including cases arising from quality assurance reviews.

While ICAB has an operational system and continues to publish information on professional misconduct and disciplinary actions, available public evidence does not demonstrate full alignment with all SMO 6 requirements across the system.

ICAB should further benchmark its investigation and discipline framework against SMO 6, with particular focus on documenting independence safeguards, formal case management procedures, appeals arrangements, public reporting of outcomes, and linkages with quality assurance review findings.

Current Status: Review & Improve

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) is responsible for adopting accounting standards in Bangladesh. The FRC reports that it adopted International Financial Reporting Standards (IFRS) without modifications in 2020, and the IFRS Foundation jurisdiction profile indicates that IFRS are required for domestic companies whose securities trade in a public market and for other entities with public accountability. The Institute of Chartered Accountants of Bangladesh (ICAB) supports the standard-setting process by conducting technical research, presenting proposed standards for adoption, and assisting with dissemination and implementation.

ICAB supports implementation through seminars, workshops, continuing professional development, technical updates, and accounting standards resources available through its website. ICAB also promotes high-quality financial reporting through its National Award for Best Presented Annual Reports, Integrated Reporting, and Corporate Governance Disclosures. In addition, ICAB has published resources on IFRS S1 and IFRS S2 readiness and continues to support awareness of sustainability-related financial reporting developments.

Given jurisdiction-level adoption of IFRS and ICAB’s ongoing role in technical support, dissemination, and member implementation, ICAB is assessed as Sustain for SMO 7.

ICAB should continue coordinating with the FRC on timely adoption and communication of IASB and ISSB pronouncements and expand practical implementation support for members on new and emerging standards, including IFRS 18, IFRS 19, IFRS S1, and IFRS S2.

Current Status: Sustain