Institute of Cost and Management Accountants of Bangladesh
Member | Established: 1977 | Member since 1983
The Cost and Management Accountants Ordinance of 1977 establishes the regulatory authority of ICMAB regarding all cost and management accounting professionals. Under the Ordinance, ICMAB is responsible for: (i) stipulating the qualifications for membership; (ii) establishing professional examinations; (iii) maintaining and publishing a register of members who hold practicing certificates; (iv) developing professional standards and rules of conduct; (v) operating an I&D system for its members; and (vi) appointing and removing members of the Institute in accordance with ICMAB’s regulations. Members of ICMAB are designated as Fellow Cost and Management Accountant or Associate Cost and Management Accountant. ICMAB is a mandatory membership body for cost and management accountants in Bangladesh. In addition to being an IFAC Member, ICMAB is a member of the South Asian Federation of Accountants and the Confederation of Asian and Pacific Accountants.
Statements of Membership Obligation (SMO)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
SMO 1: Quality Assurance
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 Service Cell Committee and requires compliance with criteria and rules as established in ICMAB’s Cost Audit Report Rules. In 2016, 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 changes to the QA system are expected to be implemented in 2017.
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.
During the next round of update of its SMO Action Plan, ICMAB is encouraged to report on the progress made in bringing its QA review system in line with the requirements of SMO 1.
SMO 2: International Education Standards
Under the Cost and Management Accountant Ordinance of 1977, ICMAB is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for its members.
While ICMAB reports that it has incorporated a majority of the IES, CPD requirements are yet to be aligned with the international standards.
In addition, the institute reports that a revision of its curriculum has concluded; however, it was decided to continue with its existing syllabus and changes that have been made will not be fully implemented until 2017.
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.
ICMAB is encouraged to consider reviewing its IPD and CPD requirements against the revised IES and consider developing actions to bring the requirements in line with the revised IES. The institute is also encouraged to report on the progress to fully implement the new syllabus in 2017.
SMO 3: International Standards on Auditing
ICMAB is not responsible for the adoption of auditing standards to be applied in statutory audits. Under the Cost and Management Accountants Ordinance of 1977, however, 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.
SMO 4: Code of Ethics for Professional Accountants
ICMAB is directly responsible for setting ethical requirements for its members and reports that it has developed a Code of Ethics that is based on the 2012 IESBA Code of Ethics and is no less stringent than the IESBA Code. ICMAB indicates that there are plans to conduct a review of the latest IESBA Code, but a timeframe has not been established.
To support its members with the implementation of its Code, the institute reports that it organizes an ongoing range of activities such as continuing professional development programs and it has published the Code on its website as a resource.
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.
ICMAB is encouraged to review and adopt the latest Code of Ethics issued by IESBA and report to IFAC on the progress in its next SMO Action plan update.
SMO 5: International Public Sector Accounting Standards
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 in 2011 it planned to review the requirements of IPSAS and to commence a study on how other IFAC member organizations support the implementation of IPSAS in their respective jurisdictions. In addition, ICMAB also sought out technical assistance from other IFAC member organizations that had successfully supported the implementation of IPSAS; however, no further information on these activities is available.
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. The institute indicates that it is in the process of preparing a plan on how it can collaborate with CIPFA to strengthen the capacity of its members; however, no timeline has been provided for this initiative.
Given that ICMAB has members that work in the public sector, the institute is encouraged to consider developing initiatives to assist its members with the application of public sector accounting standards and to provide an update on the activities with CIPFA during the next update of its SMO Action Plan.
SMO 6: Investigation and Discipline
Under the Cost and Management Accountants Ordinance of 1977, ICMAB is responsible for establishing an investigative and disciplinary (I&D) system for its members. While its system is operational, based on an assessment of its I&D system against the requirements of SMO 6, ICMAB has identified several areas where gaps exist.
ICMAB’s Disciplinary Committee is empowered by the Cost and Management Accountants Ordinance of 1977 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.
ICMAB is encouraged to consider developing actions to rectify the gaps identified during its self-assessment to ensure its I&D system is aligned with the requirements of SMO 6. ICMAB is also encouraged to consider collaborating with other stakeholders that are involved in the investigation and discipline of the profession in order to promote compliance at the jurisdiction level, and facilitate collaboration regarding the establishment of a unified system.
SMO 7: International Financial Reporting Standards
In Bangladesh, the applicable financial reporting standards are the Bangladesh Financial Reporting Standards which are based on the 2015 IFRS. 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. However, per the World Bank (2015), ICMAB’s study materials and syllabus have not been updated as it relates to IFRS and trainings in international standards need to be improved.
Prior to 2015, there was no process in place to participate in the local standard-setting process. With the new Financial Reporting Act of 2015 being approved, the institute reports that opportunities will possibly be available for it to contribute to the standard-setting process. ICMAB reports that while it does not directly presently participate in the international standard-setting process, the institute invites its members to review and respond directly to exposure drafts issued by the IASB.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.