Financial Statement Audits

Every company registered under the Companies Act 1994, whether private or public limited, must appoint an auditor and have its annual financial statements audited. Banks, financial institutions, insurers and listed companies face additional audit and reporting requirements from Bangladesh Bank, IDRA and BSEC. Audited financial statements are also typically needed for the company's income tax return to NBR and when applying for bank finance.

Under the Financial Reporting Act 2015, the Financial Reporting Council (FRC) sets financial reporting and auditing standards. Bangladesh has adopted International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA), replacing the earlier BFRS and BSA. RRH conducts audits under ISA as adopted in Bangladesh and also works on engagements prepared under U. S. GAAP for group reporting, including U. S. GAAS and PCAOB requirements where they apply.

An audit gives reasonable assurance. The auditor assesses risk, tests controls where relevant, inspects records, obtains external confirmations and issues an opinion on whether the financial statements give a true and fair view. A review gives limited assurance. It relies mainly on inquiry and analytical procedures and ends with a conclusion that nothing suggests material misstatement. A review is quicker and narrower, but it cannot replace a statutory audit.

Timing typically depends on the size and complexity of the business, the number of entities and locations, the quality of the accounting records and how quickly management can respond to requests. Planning and interim work usually take place before year end, with final fieldwork after the books are closed. We agree a timetable with management at the start so that AGM, regulatory and NBR filing deadlines can be met.

Key audit matters (KAMs) are the areas the auditor judged most significant in the audit of the current period, such as revenue recognition, loan loss provisions or impairment estimates. ISA 701 requires them in the auditor's report for listed entities, and they may be included for other entities. Each KAM explains why the matter was significant and how the audit addressed it, giving shareholders more insight into the audit.

Yes. Many Bangladeshi subsidiaries report to overseas parents under IFRS or U. S. GAAP on timetables set by the group auditor. RRH audits these reporting packages under group audit instructions, alongside the local statutory audit. Where the parent is subject to U. S. requirements, the work can involve U. S. GAAS and PCAOB standards. Findings are shared with management and the Board Audit Committee through formal governance letters.