2. “Internal Audit & Control Practice of
Garments Manufacturing Company
- A Study on Lantabur Group”

3. Professor Dr. Md. Abul Hossain
Coordinator (MBA Program)
Faculty of Business Administration
Daffodil International University
Talukder Abdulla-Al-Mamun
ID No: 133-14-474
MBA Program
Major in Finance
Daffodil International University

4. Bangladesh economic history shows that RMG
sector provides the largest contribution to
the growing economy of this country.
The industry has contributed to
 Export earnings,
 Foreign exchange earnings,
 Employment creation,
 Poverty alleviation and
 Empowerment of women.

5. The General Objective
To prepare & submit a report on “Internal Audit & Control
Practice of Garments Manufacturing Company - A Study
on Lantabur Group”.
Specific Objective:
To know about-
 Internal Audit & Control Practice in garments sector in
Bangladesh
 current scenario of internal audit & Control status of
Lantabur Group.
 internal audit activities and functions of the company
 Findings & ways of improving the backward linkage of the
company.

6. There are two types of sources for collecting data
for this report such as-
Primary sources: Primary sources of data
collection from Lantabur Group are not available
but I have tried to collect information used
survey method
Secondary sources:
 Various reporting data & printing materials
 Various publications regarding Garments Business
 Browsing Internet.
 Various websites support.

7. Lantabur Group is one of the leading 100%
export oriented group of companies
pertaining to garments sector.
 Date of incorporation 13th August, 2007
 Yearly turnover of the group is now more
than US$ 300.00 million.
 Employment opportunities for 22,000 people
 The Group has 12 (Twelve) units

8.  Internal audit and control practice has a plays an
important role in preventing and detecting fraud
and protecting the organization's resources.
 Auditing is defined as a systematic and
independent examination of data, statements,
records, operations and performances (financial
or otherwise) of an enterprise
 An auditor who is an employee of the company
whose records are audited and who provides
information to the management and board of
directors.

9.  The Daily Routine
I had worked in the Audit Department of Lantbur Group. I
worked there-
 6 days in a week.
 office hour was 9 am to 7 pm.
 My job was to communicate with the whole business
units of the group.
 I had used to note down the problem when I get findings
as well as I report to the Director (Audit) with
recommendation for solving and controlling this problem.

10.  Specific Responsibilities
 To monitor, BBLC documents, PI Statements, Export LC documents, C&F
documents on the basis of Buyer sales contracts.
 Checking of books records like: Cash Book, Ledgers, store In & Out
register, challan, MRR, stock ledger, Gate pass, physical stock
 Examine inventories and follow up production process, raw material
consumptions.
 Checking and verification of all Bills, Vouchers, petty cash and others.
 Checking Salary sheet, Bonus sheet & personnel records & compliance
with tax laws.
 Fixed Assets verification.
 Execute any other assignment, assigned by the top management time to
time.
 To prepare draft of audit report.

11.  Positive Findings:
 Lantabur Group has established by effective and
efficient manpower.
 Audit Department is well-decorated and good
working environment
 Respectful job.
 To get full support from at all levels
 As an auditor have right to access any door of
the company as a demand of audit purpose.
 There have no hidden barrier between internal
auditor and employer of the company

12.  Negative Findings
 Work order problem
 Tax & VAT is not deducting at source from all parties as per
Rules of IT Ordinance-1984.
 Cash payment is doing by the company which is prohibited more
than Tk. 50,000 by ITO-1984.
 Money receipts are not found from all parties.
 Photocopy bill and challan is attached in the vouchers
 All Vouchers are not posting in the respective job wise
 Can’t provide clear report due to ineffective software
 Not follow the purchase rule in timing of emergency
 Do not have sufficient manpower for audit department
 Do not have sufficient power for implementing Corrective Action
Planned (CAP) Immediately.

13. We would like to offer some following recommendations to improve the
performance of the company’s are:
 Voucher should be posted as per proper head wise and respective job
wise.
 Overwriting and unclear voucher should be avoided fully
 Cash payment will be done by the company Cheque which is more than
Tk. 50,000 as per Rules ITO-1984
 Tax & VAT will be deducting at source as per Rules of IT Ordinance-
1984.
 Work order must be issued favoring supplier in case of any purchase
 Main copy of bill & challan must be submitted to the audit department
 Before submitting Accounts to the Bangladesh Bank; it must be
checked by the Internal as well as External auditor of the company.
 Required have sufficient manpower for audit department.
 Implemented software should be updated

14. Majority of the foreign export income comes from
this sector, thus it has an enormous role on the
economy. Internal audit & control practice is
necessary not only for checking and verifying
internal documents of the company but also
necessary for managerial planning & control and
helps to contribute highest profitability to the
industry.