Green University of Bangladesh (GUB)
Auditing (ACC - 306)
Topic: Audit report.
Semester: Summer - 2013
Name: Md. Moazzem Hossain
Department: Department of Business Administration (DBA)
Ms. Shahreen Sonia.
Lecturer in Accounting,
Department of Business Administration (DBA),
Green University of Bangladesh (GUB),
Date: 17th June 2013
Letter of Transmittal
August 17, 2013
Ms. Shahreen Sonia
Green University of Bangladesh
Subject: Submission of an assignment
I gladly present to you my assignment titled “Audit Report”. I have made the assignment
as you give us to do by help of books and internet.
I believe the knowledge and experience I gathered during the assignment will be
extremely helpful in my future professional life. I will be grateful to you if you accept the
Your support in this regard will be highly appreciated.
Md. Moazzem Hossain
ID – 110106034
CERTIFICATE OF COMPLIANCE TO THE SHAREHOLDERS OF
Bata Shoe Company (Bangladesh) Limited
(As required under the BSEC Guidelines)
We have examined compliance to the BSEC guidelines on Corporate Governance by
Bata Shoe Company (Bangladesh) Limited for the year ended 31st December 2012, these
guidelines relate to the Notification no. SEC/CMRRCD/2006-158/134/Admin/44 dated
7th August 2012 of Bangladesh Securities and Exchange Commission (BSEC) on
Such compliance to the codes of Corporate Governance is the responsibility of the
Company. Our examination was limited to the procedures and implementation thereof as
opted by the Management in ensuring compliance to the conditions of Corporate
Governance. This is a scrutiny and verification only and not an expression of opinion or
audit on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations
provided to us, we certify that the Company has complied with the conditions of
Corporate Governance as stipulated in the above mentioned guidelines issued by BSEC.
We also state that such compliance is neither an assurance as to the future viability of the
Company nor a certification on the efficiency or effectiveness with which the
Management has conducted the affairs of the Company.
Dhaka, 25 April 2013
----------------------------------HUSSAIN FARHAD & CO.
Chartered Accountants (CA).
Audit Committee Report
The Board of Directors of Bata Shoe Company (Bangladesh) Limited has constituted an
Audit Committee to support the Board in fulfilling its oversight responsibilities.
The Audit Committee meeting was held once for the year 2012. The Finance Director,
Company Secretary and the Head of Internal Audit were invitees to the Audit Committee
Purpose of the Audit Committee
The role of Audit Committee is to monitor the integrity of the financial statements of the
company and review and, when appropriate, make recommendations to the Board of
Directors on business risks, internal controls and compliance. The Committee satisfies
itself by means of suitable steps and appropriate information, that proper and satisfactory
internal control system are in place to identify and contain business risks and the
company’s business is conducted in a proper and financially appropriate manner.
Major Responsibilities of the Audit Committee
In 2012, the Audit Committee reviewed its terms of reference in line with requirements
of Bangladesh Securities and Exchange Commission’s (BSEC) notification on corporate
governance. The Committee carried out its duties in accordance with the terms of
reference of the Audit Committee. Some of the major responsibilities of the Audit
Committee are as follows:
Review the annual, half-yearly and quarterly financial statements and other
financial results, and upon its satisfaction of the review, recommend the same to
Review the adequacy and effectiveness of financial reporting process, internal
control system, risk management, auditing matters, and the company’s processes
for monitoring compliance with laws and regulations and the Codes of Conduct.
Recommend appointment, termination and determination of audit fees for
statutory auditors. Consider the scope of work, and oversee and evaluate the work
performed by statutory auditors. Review permitted non audit services performed
by statutory auditors.
Exercise its oversight of the work of Internal Audit department of the company.
Review the effectiveness of Internal Audit function including performance,
structure, adequacy of resources, and compliance with professional standards.
Examine audit findings and material weaknesses and monitor implementation of
audit action plans.
Major Activities of the Audit Committee
Reviewed and recommended to the Board the quarterly and annual financial
statements for the year ended 31 December, 2012.
Considered and made recommendation to the Board on the appointment and
remuneration of external auditors, Hussain Farhad & Co., Chartered Accountants
for the year 2013.
Reviewed the management letter from external auditors for the year 2012 together
with management’s responses to the findings.
Approved the Internal Audit Plan for 2013, monitored progress and effected
revisions when necessary.
Discussed Internal Audit reports and findings in detail with auditors and members
of management and monitored the status of implementation of audit action plans
and provided guidance to ensure timely completion of action plans.
Reviewed the activities of the compliance function, incidence reporting and
actions, and the status of enforcement of the company’s Codes of Conduct.
Reviewed the Internal Audit Charter.
Reviewed and received report on the matters as per requirement from the
Securities and Exchange Commission (SEC).
The above matters are significant recommendations for continuous improvement and
therefore duly noted.