Accounting and Auditing Service in Bangladesh

Accounting and Internal Audit Services in Bangladesh

What does our audit service cover?

An internal audit is an independent review of a company’s own controls, carried out for its management rather than for its shareholders, ending in a written report of what was tested and what was found. PayrollBD runs internal audit work for companies operating in Bangladesh, from our Dhaka office.

Tell us which part of the business you want reviewed, and we will agree the scope in writing before the work starts.

How does Internal Audit Work?

An internal audit runs on a written plan rather than a spot check. The plan sets out which areas are reviewed, in what order, and against which controls, so the finding at the end can be traced back to a test.

What the review looks for is the gap between the control a company says it has and the control it actually applies. The report names that gap, the risk attached to it, and the correction proposed.

Agree the scope. We meet you before the audit starts and write down which area is reviewed and against which controls.
Collect the records. We take the records for that area and confirm who holds each one.
Test a sample. We test a sample against the controls that are meant to be in place.
Report and discuss. Anything found is discussed with you before it goes into the written report.

What is an audit, and what are the two kinds?

An audit is an independent examination of a company’s records and controls, ending in a written report. The two kinds answer to different people. An external audit is carried out for the shareholders, who appoint the auditor at the annual general meeting, and it tests whether the financial statements give a true and fair view of the company’s position.

An internal audit is carried out for the company’s own management, and it tests whether the controls behind those records are working. PayrollBD provides the internal side.

Where a statutory external audit is required, that stays with the appointed audit firm and our work supports it rather than replaces it. Our accounting and tax compliance service covers the record-keeping underneath both.

Which law governs audit in Bangladesh?

The statutory audit of a company sits in the Companies Act, 1994, the same Act that governs a business restructuring. The sections below are the ones an auditor and a company are measured against. Reviewed by Eicra Binte Islam, HR Admin, PayrollBD.

Section	What it covers
Section 181	The books of account a company must keep, and the penalty for not keeping them
Section 183	The annual balance sheet laid before the general meeting
Section 210	Appointment of the auditor and the auditor’s remuneration
Section 212	Who is qualified, and who is disqualified, to act as auditor
Section 213	The powers and duties of the auditor
Section 215	Signing of the audit report

Section 212 requires the appointed auditor to be a chartered accountant, a qualification issued by the Institute of Chartered Accountants of Bangladesh. An internal audit is not an appointment under section 210 and produces no statutory opinion.

What it does is test the same records against the controls the company relies on, so that the statutory audit meets a file that is already in order.

What types of internal audit do we run?

Information System Audit

Reviews how records are created, stored and accessed in your systems, and whether the access controls around them actually hold.

Environmental Audit

Checks the environmental obligations attached to your operations and the evidence kept to show they are being met.

Performance Audit

Measures whether a function delivers what it was set up to deliver, and where the operational risk sits if it does not.

Operational Audit

Follows a process end to end, from the first approval to the final record, and reports where it breaks down.

Compliance Audit

Tests whether the company is meeting the statutory and contractual obligations it has taken on, and what evidence exists for each. Payroll and wage records are covered by our payroll and back-office service.

Governance and Structure Audit

Assesses the board and committee structure, who holds which authority, and whether decisions are recorded where they should be. It sits alongside our corporate governance service.

What do clients ask about internal audit?

Who can request an internal audit?

Any company can request one by contacting PayrollBD. Whether we can take it on depends on the availability of audit staff and where the subject already sits in the annual audit plan.

How can we prepare for the audit?

We meet you before the audit starts to agree the scope and what will be reviewed. Have the records for that area to hand, and tell us who holds them. Nothing else is required in advance.

Is an internal audit the same as a statutory audit?

No. A statutory external audit is carried out for the shareholders by the auditor they appoint, and it gives an opinion on the financial statements. An internal audit is carried out for management and tests the controls behind those records. Our work supports the external audit rather than replacing it.

What can I expect during an audit?

The time spent in your area varies with the scope, and in most cases the disruption to daily work is small. We review the controls that are meant to be in place, test a sample against them, and discuss anything we find with you before it goes in the report.

How we proceed?

Contact us and we will arrange the scoping meeting. Tell us which area you want reviewed and roughly how large it is, and we will come back with the scope and the timing in writing before anything starts.

Which areas can an internal audit cover?

Six areas, and you choose which ones apply: information systems, environmental obligations, performance, operations, compliance, and governance and structure. Each area is scoped separately, so a review can cover one of them or several.