Auditing Services

Statutory Audit

An auditor conducts a statutory audit to provide reasonable assurance and an unbiased opinion on whether a company’s financial statements provide an accurate and reasonable picture of its performance and position for the accounting period and are free from serious misstatements due to fraud or negligence. The Companies Act of 1994 requires all companies to provide financial statements; however, the accounting standards that must be used are left unspecified in the statute. The Bangladesh Financial Reporting Standards (BFRS), which were developed and published by the Institute of Chartered Accountants of Bangladesh (ICAB), are the ones that are actually put into practice. The International Financial Reporting Standards (IFRS) serve as the foundation for the development of the BFRS, which include certain revisions. Additionally, the 2009 version of IFRS for SMEs has been approved by ICAB as the BFRS for SMEs, although with some minor adjustments. The BFRS and BFRS for SMEs may be used to SME businesses if they so want. 

In addition, the various regulators around the country are responsible for establishing financial reporting standards for the organizations that fall under their purview, mandating either partial or complete conformity with BFRS. Listed companies and insurance companies are required to apply comprehensive BFRS by the Bangladesh Securities and Exchange (BSEC) Rules of 1987 and the Insurance Development and Regulatory Authority, respectively. However, the Central Bank of Bangladesh is authorized by the Banking Act of 1991 to require banks and other financial institutions to apply specific BFRS. The Companies Act of 1994 requires all companies to have their financial statements audited and provides that only Chartered Accountants (CAs) who are members of the Institute of Chartered Accountants of Bangladesh (ICAB) are permitted to perform audits. There is no statute or regulation that, in and of itself, specifies the auditing criteria that should be used. In practice, certified public accountants (CAs) carry out audits in compliance with auditing standards that have been approved by the ICAB. The institute has decided to use the version of the International Standards on Auditing that was published in 2013 as the basis for the Bangladesh Standards on Auditing. These standards will be used throughout the country with just a few minor adjustments required by the local legislation. According to the Companies Act of 1994, some public limited firms and state-owned enterprises are required to undergo cost audits on top of financial statement audits. This regulation applies to both private and public companies.

An external auditor is a professional from an independent party who conducts an impartial investigation into the financial records of an organization. One of the most important works of an external auditors is to find out whether any fraudulent actions were conducted in the internal audits. They perform their duties in an objective and impartial manner as an independent third party. An external auditor has to put in incredible amount of work to serve the demands of the organization as a whole, earn the confidence of the organization’s internal authorities, and maintain control over the activities of the company’s internal auditors. An external auditor is someone who works for a company to offer a report on the company that is accurate or impartial and that will represent the overall financial state of the management as well as the ethics of the company.

Although certain aspects of their job may be comparable, the responsibilities of internal and external auditors are quite different. It is possible for an entity to rely on an external auditor depending on the requirements of the legislation. In addition to all of these things, in order to execute their duties independently, external auditors are required to adhere to the fundamental rules and regulations whenever they produce or deliver over any report to the company.

An external auditor or the operations of an external auditor encompass everything, including but not limited to the proper financial requirements, accounting standards, and other law that governs the financial records of the business being audited. A very good analytical awareness of the total issue is required for someone to work as an external auditor. An external auditor is required to do his or her duties independently and with great care for the business. They have the ability to operate in a variety of fields, such as dealing with profit and loss accounts, balance sheets, sales ledgers, trial balances, payroll, and so on. They need to be able to assess and maintain correct use of accuracy and proper functioning of the entire system in order to have enough control over the internal audit from the outside. An external auditor has to be able to show that they can review the financial records of an organization while adhering to the legal requirements and accounting standards. Additionally, they need to be able to provide unbiased reports.

The primary role of an external auditor is to determine whether or not a particular item or criterion has a significant or insignificant risk of leading to a substantial misrepresentation in the financial statement. An external auditor often works independently as a consultant and is compensated by the businesses they audit for their services. In addition to this, they are responsible for developing and carrying out the tests that will indicate whether or not such inaccuracies have been made. In addition, there are specific audits that are performed on public companies to evaluate the efficiency of the company’s internal controls over financial reporting. To get a better grasp on the specifics, there is a project methodology that an external auditor must follow. The first step is to understand the business and control the information flow; the second step is to evaluate the overall risks associated with financial reporting; the third step is to design an integrated audit plan; the fourth step is to test the plan; and the fifth step is to report the results, which includes audit opinions and findings regarding internal controls. In spite of this, an external auditor has to have the training necessary to cast doubt on the veracity of the information if he discovers errors or fraud. Determine also all of the areas in which there is room for improvement. For instance, an auditor could detect that a firm has room for improvement in terms of its accounting and internal controls and make that observation. In this scenario, he may provide some suggestions for potential remedies, such as decreasing overhead costs by lowering the number of employees or improving overall inventory management. There is always the risk of encountering serious abnormalities, such as false assertions or misleading the public on the part of the client. The statistics of the business’s financial performance may be manipulated by any entity. Investors might easily be swayed by this, and they could also disregard the mistakes.

The External Audit Coordinator is responsible for ensuring that the audit stays on track, resolving any concerns that arise as soon as they come to light, and staying up to date on the auditor’s activities. At ABC, we have a statutory audit team that is highly effective, and it is managed by very experienced partners who have worked with customers in a broad variety of industries. In addition, as a result of our membership in Geneva Group International, we are able to make use of a powerful global alliance and a pool of technical resources. This enables us to be adequately prepared to deal with even the most difficult challenges that may arise during the auditing of an institution.

The primary purpose of the external audit team at ABC Partners is to provide predictability and credibility to the financial reports that are distributed to shareholders. They have been maintained, and the quality of the work as well as the organization of the overall report has been decided in order to provide an accurate financial account.

Additionally, an external auditor is required to report to shareholders who are not part of the governing body of a business. This is something that the ABC external auditor team does with great care and attention to detail. The impartiality of the ABC external audit team has never been compromised in any of their previous or current projects. An external auditor is required to follow certain basic processes that includes not to become friendly with the organization’s customers, managers, or any other employees. These protocols must be followed at all times.

These have been kept up to ensure correctness and non-biasness in presentation. In addition, whenever an external auditor is specialised in a certain sector of business, he frequently needs to study the trade secrets of a given industry prior carrying out an audit. This is because an audit is designed to uncover any potential problems. This makes it simpler for an independent auditor to identify areas that need improvement. ABC’s highly qualified external audit team provides the company’s shareholders with an impartial assessment about the integrity and fairness of the company’s financial statements. In addition to this, they offer the shareholders some degree of reassurance and work to guarantee that the advantages accruing to the firm are maximised by providing management with suggestions for operational changes.