The Institute of Chartered Accountants of Bangladesh (ICAB) is the professional body which represents the accountancy profession at national and international levels.
The ICAB is also responsible for the continuous development of accounting professionals in the country.
The auditing of company accounts is compulsory under the Companies Act 1994.
Companies prepare their financial statements based on historical cost as per the provisions of the Companies Act, 1994. These financial statements are required to be audited by chartered accountants and an Annual Report must be circulated to members every year.
Components of Financial Statements
A financial statement consists of the following components:
- Balance sheet
- Profit and loss account
- Cash flow statement
- Statement of changes in equity
- Notes on the
Accounting Standards and Principals
An audit is conducted by a practicing member of the Institute of Chartered Accountants of Bangladesh following the Bangladesh standards on auditing as adopted by the ICAB from ISA.
The ICAB is a member of the International Federation of Accountants (IFAC) and adopts International Financial Reporting Standards and International Accounting Standards as Bangladesh Financial Reporting Standards (BFRS) and Bangladesh Accounting Standards (BAS). All the IFRS and IAS have been adopted by the ICAB.
Listed companies and financial Institutions are compulsorily required to follow the BFRS and BAS. Though not mandatory, private and non-listed public limited companies, and other government and non-government organizations should follow the BFRS and BAS to the greatest possible extent.