Institute of Cost and Management 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.

ICMAB is not responsible for the quality assurance (QA) reviews of statutory audits; however, the institute has established a QA review system to review audit work conducted by cost audit professionals. The QA review system is overseen by its Cost Audit and Professional Consultancy Cell Committee and requires compliance with criteria and rules as established in ICMAB’s Cost Audit Report Rules. In 2021, the institute conducted a self-assessment of its QA system against the requirements of SMO 1 and has identified areas where improvements are needed. The institute indicates that it plans to address the shortcomings as part of the review of its QA review system following the new requirements introduced by the Financial Reporting Act of 2015. the Institute has developed and approved 3 boards i.e., Cost Accounting Standard Board, Quality Review Board and Cost Accounting and Assurance Standards to facilitate the cost accounting and auditing practice in Bangladesh.

ICMAB reports that since 2011 it has invited experts to consult and provide technical advice via seminars and workshops on assessing the quality of work and services provided by its members. In addition, on an ongoing basis, it has organized relevant continuing professional development programs to improve the professional competence and qualifications of its members.

ICMAB Professional Consultancy Center is an addition targeting the QA of the Practicing firms.

Current Status: Review & Improve

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.

Both ICAB and ICMAB have incorporated the latest IES in their respective education programs.

Under the Cost and Management Accountants Act 2018, ICMAB is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for its members.

ICMAB reports that it monitors the standard-setting activities of the IAESB and participates in the international standard-setting process by reviewing and responding to exposure drafts issued by the IAESB.

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.

Under the Cost and Management Accountants Act 2018, ICMAB is responsible for conducting cost audits in certain industries as prescribed by the government through official gazette notification. The Cost Audit and Professional Service Cell Committee, established under the institute, has developed Cost Audit Rules that contain rules and guidelines to follow when conducting cost audits. The Committee also makes recommendations to its Seminar and Conference Committee to develop and recommend to its Council, potential conferences and seminars on issues related to cost audits, and workshops to raise awareness of standards, rules and best practices to improve its member’s professional competence.

The institute also participates in the local standard-setting process by reviewing and responding to exposure drafts issued by the Institute of Chartered Accountants of Bangladesh of the Bangladesh Standards on Auditing (BSA). The institute also provides updates on changes to the BSA through the arrangement of several continuing professional development (CPD) programs.

ICMAB reports that its members are also kept informed on pronouncements issued by the IAASB, and that it also reviews the updates to include in its initial professional development and CPD program. ICMAB reports that it participates in the international standard-setting process by reviewing and responding to exposure drafts issued by the IAASB.

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 for all professional accountants.

To support its members with the implementation of ethical requirements, the institute reports that it organizes an ongoing range of activities such as CPD and other training programs.

The institute also reports that it monitors updates and pronouncements issued by the IESBA and participates in the international standard-setting process by reviewing and responding to exposure drafts issued by IESBA.

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 ICMAB has no responsibility to adopt public sector accounting standards in Bangladesh, the institute reports that it is working to promote the adoption of IPSAS by engaging in discussions with and providing technical support to relevant government agencies such as the Office of the Comptroller and Auditor General of Bangladesh.

ICMAB reports that it keeps its members informed of new and revised pronouncements by the IPSASB by disseminating updates to its members. In 2014, the institute signed a Memorandum of Understanding with the Chartered Institute of Public Finance and Accountancy (CIPFA) to develop local technical capacity and promote public financial management in the country. This continues to be an ongoing initiative.

ICMAB reports that Financial Reporting Council (FRC) has prepared Financial Reporting Framework (FRF) for various Public Sector Entities (PSEs) and Statutory Public Authorities (SPAs), including local authorities of Bangladesh. FRC formed a technical committee with senior members of the professional institutes where ICMAB is an active participant. ICMAB Public Sector Financial Management Advisory Committee works in this area to add value with the works of standard setting bodies. As part of this committee, ICMAB has produced seminars and CPD around public sector standards and matters.

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 Cost and Management Accountants Act 2018, ICMAB is responsible for establishing an investigative and disciplinary (I&D) system for its members. ICMAB reports that its I&D system aligns with the majority of SMO 6 requirements except that there is no independent body for appeals, elements of this administrative process are decided on a case-by-case basis, and there is no process to liaise with external bodies on cases.

ICMAB’s Disciplinary Committee is empowered by the Cost and Management Accountants Act 2018 to conduct all investigations and to review all complaints made. The National Council is ultimately responsible for either dismissing the complaint or handing out sanctions. In cases where a member has been sanctioned with a suspension or an expulsion from the institute, the Council will report the decision to the public.

ICMAB reports that it utilizes its website to raise awareness of the public on how complaints can be lodged against members and provides updates on the activities of the Disciplinary Committee via various ICMAB publications.

Current Status: Execute

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 are adopted in Bangladesh.

In Bangladesh, the applicable financial reporting standards are the Bangladesh Financial Reporting Standards. As ICMAB has no responsibility for the adoption of IFRS, it focuses its efforts on supporting its members with the implementation of the standards through relevant education and training.

The institute supports its members by including standard-related content in its initial professional development and continuing professional development programs and keeps members informed of new and revised standards by disseminating IASB updates and other pronouncements. In addition, ICMAB hosts learning events, such as conferences, seminars, and workshops. In its revised curriculum, ICMAB has expanded and includes significant training around IFRS and a training series titled under its Skills Development Program (SDP) ensures all student and members to be trained on all the IAS and IFRSs.

Current Status: Sustain