Statutory Audit Compliance and Documentation Systems in Bangladesh: A Study on M. SHAHIDUL ISLAM & CO., Chartered Accountants.

Abstract

This internship report represents a comprehensive examination of the statutory audit practices, regulatory compliance frameworks, and documentation systems used by professional audit firms in Bangladesh. The study is based on my practical experience gained during an internship at M. SHAHIDUL ISLAM & CO., where I had the opportunity to observe and participate in various audit engagements across different client organizations. The primary objective of this report is to connect academic audit concepts with real-world auditing procedures by exploring how statutory audits are performed in accordance with national and international standards. These include the Companies Act, 1994, Bangladesh Standards on Auditing (BSA), International Standards on Auditing (ISA), ICAB guidelines, and relevant directives from regulatory authorities such as the National Board of Revenue (NBR) and the Bangladesh Securities and Exchange Commission (BSEC). This report highlights how these standards ensure transparency, accountability, and reliability in financial reporting. Throughout my internship, I gained hands-on experience in audit planning, internal control evaluation, risk assessment, substantive testing, audit evidence collection, preparation of working papers, and drafting financial statements. Particular emphasis is placed on the audit documentation process, which plays a vital role in maintaining audit quality and ensuring compliance. The report explains how documentation is prepared, reviewed, and preserved following ICAB’s audit documentation requirements and global best practices. Several key challenges faced by audit firms in Bangladesh are also identified in this report. These include insufficient client records, weak internal control systems in some organizations, time pressure during audit seasons, frequent regulatory changes, and the increasing need for digital tools to enhance documentation and workflow efficiency. These challenges underline the importance of investing in audit technologies, strengthening staff training, and improving coordination with clients. Overall, this internship report reflects the integration of theoretical concepts with professional audit practices and showcases the importance of compliance and documentation in ensuring the effectiveness of statutory audits in Bangladesh. My internship experience at M. SHAHIDUL ISLAM & CO. has significantly enriched my practical knowledge and served as a strong foundation for my future professional career in the field of accounting and auditing.