The document discusses the roles of various oversight boards and standards organizations related to accounting and auditing. It provides details on: 1) The roles of the Professional Oversight Board for Accountancy and Auditing Practices Board in the UK to regulate the accounting profession and establish auditing and ethical standards. 2) The establishment of the Financial Reporting Council (FRC) in Bangladesh by the Financial Reporting Act of 2015 to regulate financial reporting and the auditing profession in Bangladesh. 3) The objectives and functions of the FRC which include setting financial reporting, auditing and valuation standards, licensing and monitoring auditors, and enforcing compliance with standards.

1. Fundamentals of Ethics,
Corporate Governance and Business Law
2nd Edition (April-2020)
Page# 13
Md.Monowar Hossain FCA, CPA, FCS, CGA, CIPFA(UK), FCMA
CFO & Head of ICC, Agrani Bank Limited
eMail: md.monowar@gmail.com
Fundamentals of Ethics,
Corporate Governance and Business Laws
Module -02
Ethics and
business
(15%)- Cont.
1. The importance of ethics.
2. Values and attitudes for professional accountants.
3. Legal frameworks, regulations and standards for business.
4. The role of national ‘Professional Oversight Boards for
Accountancy’ and ‘Auditing Practices Boards’.
5. Financial Reporting Council (FRC) Bangladesh.
6. The role of international accounting bodies e.g. IFAC.
7. The nature of ethics and its relevance to business and the
accountancy profession.
8. Rules based and framework approaches to ethics.
9. The ‘Seven Principles of Public Life’ – selflessness, integrity,
objectivity, accountability, openness, honesty and leadership.
The role of national ‘Professional Oversight Boards for Accountancy’ and ‘Auditing
Practices Boards’.
The Professional Oversight Board for
Accountancy (UK)
In relation to the regulation of the
accountancy profession, the Board intends
to achieve its aims by: Reviewing the
regulatory activities of the professional
accountancy bodies in relation to their
members, including education, training,
continuing professional development,
standards, ethical matters (except those
which are the responsibility of the APB)
professional conduct and discipline,
registration and monitoring, including
making recommendations on how these
activities might be improved.
2
The Auditing Practices Board (UK)
The Board intends to achieve its aims by:
● Establishing Auditing Standards which set out the basic principles and essential
procedures with which external auditors in the UK and the Republic of Ireland are
required to comply;
● Issuing guidance on the application of Auditing Standards in particular circumstances
and industries and timely guidance on new and emerging issues;
● Establishing Standards and related guidance for accountants providing assurance
services;
● Establishing Ethical Standards in relation to the independence, objectivity and integrity
of external auditors and those providing assurance services;
2
www.frc.org.uk/apb/about/aims.cfm

2. Fundamentals of Ethics,
Corporate Governance and Business Law
2nd Edition (April-2020)
Page# 14
Md.Monowar Hossain FCA, CPA, FCS, CGA, CIPFA(UK), FCMA
CFO & Head of ICC, Agrani Bank Limited
eMail: md.monowar@gmail.com
● Taking an appropriate role in the development of statutes, regulations and accounting
standards which affect the conduct of auditing and assurance services, both domestically
and internationally;
● Contributing to efforts to advance public understanding of the roles and responsibilities
of external auditors and the providers of assurance services including the sponsorship of
research.
3
The Bangladesh Parliament enacted Financial Reporting ACT (FRA), 2015 on September 9,
2015. FRA requires the establishment of the Financial Reporting Council (FRC) – an
independent oversight body to bring trust, credit worthiness, transparency and accountability
in the audited reports and accounting as financial reporting of the publicly listed companies.
The main purpose of the FRC will be to regulate the financial reporting process followed by
the public interest entities. It will also regulate auditing profession of the country.
The FRC is a 12-members body, comprising of representatives from the government, the
Bangladesh Bank, the BSEC, the FBCCI, the academia, and the professional accounting
bodies.
Mission, Vision and values of FRC:
• Vision- To be a model organization
ensuring quality in auditing, accounting
and financial and non-financial reporting.
• Mission - To bring corporate
confidence in auditing, financial and
non-financial reporting among users
of financial statements.
Objects as per Financial Reporting Act 2015:
- To promote the provision of high-
quality reporting of financial and non-
financial information by public interest
entities;
- To promote the highest standards
among licensed auditors;
- To enhance the credibility of
financial reporting; and
- To improve the quality of
accountancy and audit services.
Domains / area of FRC:
* Public Interest Entities
* Listed Companies
* State Owned Enterprises
* Regulatory Bodies
* Auditors
* Professional Accountants
* Government
* General Public
3
https://www.frcbd.org/

3. Fundamentals of Ethics,
Corporate Governance and Business Law
2nd Edition (April-2020)
Page# 15
Md.Monowar Hossain FCA, CPA, FCS, CGA, CIPFA(UK), FCMA
CFO & Head of ICC, Agrani Bank Limited
eMail: md.monowar@gmail.com
Functions of FRC
 Setting Standards for
Financial Reporting,
Auditing, Valuation and
Actuarial Services
 Licensing of Auditors
 Approving Audit Firms
 Audit Practice Review
 Financial / Non-Financial
Reporting Review
What FRC will do?
• Ensure adherence to International Financial
Reporting Standards (IFRS) and International
Standards of Auditing (ISA);
• Ensure compliance with code of corporate
governance
• Provision of training/ seminars to facilitate
implementation of accounting standards
• Encourage feedback from all stakeholders to
improve quality audit and financial and non-
financial reporting
• Setting Standards and Implementing them in consideration of the perspective of
socio-economic condition of Bangladesh and after keeping consistency with
internationally accepted and quality financial reporting, auditing standards, valuation
and Actuarial Services;
• Ensuring compliance with internationally accepted quality standards set by the
International Accounting Standards Board (IASB), International Auditing and
Assurance Standards Board (IAASB) or related other international bodies;
• Ensuring Effective compliance, monitoring and enforcement of financial reporting
and auditing standards set by the Council;
• Setting necessary rules, regulations, standard guidelines and codes and ensuring
their enforcement for the purpose of ensuring of qualitative standard of financial
reporting, accounting and auditing;
• Monitoring auditing practice and exercise of auditors for the purpose of
maintaining high standard of professional conduct;
• Giving advice on activities in relation to accounting and auditing and providing
information related services as central information storage;
• Enlisting auditors and maintaining related information in register and
publication thereof;
• Ensuring compliance of reporting requirement prescribed under any other Act;
• Giving recommendations on academic certificates, courses and various teaching,
training, internship, articleship and research activities run by professional accounting
bodies and providing assistance in development;
• Observing professional development activities run by professional accounting
bodies for the fulfillment of the purpose of this Act;
• Encouraging and where applicable, financing research on such a subject by which
the financial report, accounting, auditing and corporate governance system can be
enforced more effectively and efficiently by the council, professional accountancy
bodies or any other entity concerned;
• Making necessary rule or regulations for conducting accounting and auditing
activities properly;

4. Fundamentals of Ethics,
Corporate Governance and Business Law
2nd Edition (April-2020)
Page# 16
Md.Monowar Hossain FCA, CPA, FCS, CGA, CIPFA(UK), FCMA
CFO & Head of ICC, Agrani Bank Limited
eMail: md.monowar@gmail.com
• Conducting investigation and activities in relation thereto under this Act;
• Taking suitable procedure or scheme and implementing those for achieving the
objectives and performing the functions of Council;
• Engaging or where applicable, executing memorandum of understanding and
agreement, with such local or international institutional initiatives which are related to
the objectives and functions of the Council or helpful thereto it;
• Fixing charge and fee on services provided by the Council;
• Imposing fine under this Act and rules made thereunder;
• Giving recommendation or advice to the Government about financial report,
non-financial report, financial statement, annual report, accounting and auditing or
subjects related thereto; and
• Doing such other activities, which the council deems fit, fit the purpose of
implementing its general objectives and functions for the fulfilment of the purpose of
this Act;