External Audit Procedure: Evidence on Small and Medium Enterprise in Bangladesh

Abstract

The report titled “External Audit Procedure: Evidence on Small and Medium Enterprise in Bangladesh” is the accumulation of the experience during the internship period. This report aims to showcase the procedures and processes that are followed by auditors during an external audit and procedures followed by Mahfel Huq & Co. Chartered Accountants, where the internship had taken place. The report has been segmented into eight different chapters. Chapter 1 covers the purpose and the reasons for which the report has been prepared and covers the difficulties that were faced when preparing this report. It also covers the sources of information that were made used to complete the report. Chapter 2 covers the methodology followed for the collection of data and information and the basis of report preparation. The approaches and functioning processes considered in conducting this study. Chapter 3 is the culmination of my four years of theoretical knowledge at Sonargaon University. It represents the accumulated knowledge that was earned about auditing of SMEs during the times spent at Mahfel Huq & Co. for internship. In chapter 4, the procedures for engaging in an audit of SMEs in Bangladesh are discussed in detail. This chapter discussed what and how an audit procedure should be conducted for SMEs and the steps to be followed during an audit until a reasonable conclusion is reached. Chapter 5 discusses the problems that are involved when conducting an audit and the difficulties that auditors face during the audit. Few findings were discovered as the allotted time was not enough and due to other difficulties mentioned in the limitations part of chapter 1. Chapter 6 discusses the possible solution to some of the problems through recommendations, included in this chapter. The profession of chartered accountants is noble and daunting and given the current development of Bangladesh, their numbers will hopefully grow in the days to come which may facilitate the audit procedure for SMEs.