Audit Objectivity: An Overview on Accountability and Transparency of Private Limited Companies of Bangladesh

Abstract

This report is based on Audit Objectivity: An Overview on Accountability and Transparency in Private Limited Companies of Bangladesh through which I have intended to focus on accounting and bookkeeping practices of private companies operating in Bangladesh and how it impacts auditor‟s ethical requirements that is bound to follow by existing laws and regulations, especially objectivity. In order to find the link and look into the factors affecting auditors‟ ethical requirements I have conducted my internship program with A. Matin & Co. Chartered Accountants, one of the leading mid-level firms based in Dhaka specializing in the audit of private limited companies of Bangladesh. Through my internship report I have intended to point out the why private companies need more transparency in their financial and external reporting. The first chapter is an introductory part of the report while the second chapter provides literature review of papers that I have referred to during my program and the third chapter lay out an overview of the firm in which I have completed my internship. The following chapter of the report talks about the ethical and quality requirements that auditors must abide by, following a description of bookkeeping practices and tendencies of private limited companies in terms of bookkeeping and how even a year back external audit of financial statements of private limited companies were informal and not compliant of International Auditing Standards (IASs) and Companies Act, 1994. It also highlights the recent developments and regulation being made in the audit sector that are changing the nature, extent and environment of audit and what hurdles auditors face in auditing private companies which are although not listed with stock exchanges but not any easier to audit. Chapter five provides operational insights of A. Matin & Co and points out the current trend of practices among chartered accountants that provides an overall view of similar size of firms of Bangladesh. I have provided operational data of the firm in the past two years and tried depicting a picture that provides how firms are now in immense pressure to upheld objectivity that was not the case previously. The report through its last chapters tries to explain how firm‟s practices have changed and business in future have no choice but to be more transparent in their reporting of economic transactions and need accounting and finance professionals who have understanding of other prevailing acts and rules for smooth bookkeeping and ultimately fair reporting to external users.