Bangladesh : Accounting and Auditing
This report provides an assessment of accounting and auditing practices within the broader context of the Bangladesh institutional framework and capacity needed to ensure the quality of corporate financial reporting. The accounting and auditing pra...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/05/6561790/bangladesh-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/13854 |
| Summary: | This report provides an assessment of
accounting and auditing practices within the broader context
of the Bangladesh institutional framework and capacity
needed to ensure the quality of corporate financial
reporting. The accounting and auditing practices in
Bangladesh suffer from institutional weaknesses in
regulation, compliance, and enforcement of standards and
rules. The preparation of financial statements and conduct
of audits, in many cases, are not consistent with
internationally acceptable standards and practices.
Better-qualified graduates generally do not join the
accounting profession because it is not viewed as a
stepping-stone to a rewarding and prestigious career. The
out-of-date legal requirements, widespread noncompliance
with accounting and auditing standards, ineffective
enforcement mechanism, poor quality accounting education and
training, and inadequate adherence to professional ethics
have contributed to the weakness of the financial reporting
regime. The policy recommendations provided in this report
focus on improving statutory framework, strengthening
enforcement mechanisms, upgrading professional education and
training, and enhancing capacity of regulatory and
professional bodies. A major recommendation is that an
independent oversight body-Financial Reporting
Council-should be established. The Financial Reporting
Council will be responsible for adopting, monitoring, and
enforcing international accounting and auditing standards
for financial reporting by the public-interest entities. In
addition, arrangements will need to be made to develop a
simplified financial reporting framework for small- and
medium-size enterprises. |
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