2. A u d i t
An official inspection of an organization's
accounts, typically by an independent body.
3. A u d i t F e e
A fee a company pays an
external auditor in exchange
for performing an audit.
4. In Bangladesh, Financial audits are conducted mostly in
compliance with the requirement of the companies act
and regulation of the NGO affairs bureau. According to
the law, only Chartered Accountants are eligible to
perform statutory financial audits. Chartered Accountants
are the qualified personnel and experts in the field of
auditing and accounting. They are the members of the
Institution of Chartered Accountants of Bangladesh
(ICAB).
Audit in Bangladesh
6. Category Based on Loans and Advances MinimumAudit Fees
AIII (i) Amount not exceedingTk. 50
crore
Tk. 3,50,000
AIII (ii) Amount exceeding Tk. 50 crore
but not exceedingTk. 250 crore
Tk. 3,50,000 + 10% of Tk. 3,50,000 for
every Tk. 20 crore (or part thereof)
increase overTk. 50 crore
AIII (iii) Amount exceeding Tk. 250 crore
but not exceedingTk. 500 crore
Tk. 7,00,000 + 8% of Tk. 7,00,000 for
every Tk. 35 Crore (or part thereof)
increase overTk. 250 crore
AIII (iv) Amount exceeding Tk. 500 crore
but not exceedingTk. 1,500 crore
Tk. 11,00,000 + 5% of Tk. 11,00,000 for
every Tk. 100 Crore (or part thereof)
increase overTk. 500 crore
AIII (v) Amount exceedingTk. 1,500
crore
Tk. 16,50,000 + 4% of Tk. 16,50,000
for every Tk. 120 Crore (or part
thereof) increase over Tk. 1,500 crore
subject to a minimum audit fee of Tk.
35,00,000, should such computation
result in a higher audit fee.
NON-BANKING FINANCIAL
INSTITUTIONS:
The
Fees
Schedule
7. TANNERY INDUSTRIES (Under Manufacturing):
Category Based on Gross Assets or Gross
Turnover (whichever is higher)
Minimum Audit Fees
AI (i) Amount not exceedingTk. 50 crore Tk. 3,50,000
AI (ii) Amount exceeding Tk. 50 crore but
not exceedingTk. 250 crore
Tk. 3,50,000 + 10% of Tk. 3,50,000 for
every Tk. 20 crore (or part thereof)
increase overTk. 50 crore
AI (iii) Amount exceeding Tk. 250 crore but
not exceedingTk. 500 crore
Tk. 7,00,000 + 8% of Tk. 7,00,000 for
every Tk. 35 Crore (or part thereof)
increase overTk. 250 crore
AI (iv) Amount exceeding Tk. 500 crore but
not exceedingTk. 1,500 crore
Tk. 11,00,000 + 5% of Tk. 11,00,000 for
every Tk. 100 Crore (or part thereof)
increase overTk. 500 crore
AI (v) Amount exceedingTk. 1,500 crore Tk. 16,50,000 + 4% of Tk. 16,50,000 for
every Tk. 120 Crore (or part thereof)
increase over Tk. 1,500 crore subject to
a minimum audit fee of Tk. 35,00,000,
should such computation result in a
higher audit fee.
The
Fees
Schedule
14. It can be seen that the Actual audit fee is
always L o w e r than the Standard
audit fee.
Each company hires its own Common
auditor to audit its financial statements.
Findings
15. Findings
Auditors don’t usually follow the ICAB
fees schedule.
The difference between standard and
actual fees is unusually huge.
16. • Audit fees in Bangladesh have
systematically been dropping.
• The audit services market is
perceived to be a buyer’s market,
with company management
enjoying STRONG bargaining
power over the appointment of an
auditor.
A
N
A
L
Y
S
I
S
17. • Lower audit fees may reflect the poor
quality of audit work.
• Companies with qualified accountants
pay a l e s s e r audit fee.
• Auditors are losing independence due to
the influence of Client Company’s
management.
A
N
A
L
Y
S
I
S
