Audit procedure in Bangladesh: a case study on Akhter Abbas Khan & Co Chartered Accountants

Abstract

This report presents the practical results of the twelve weeks internship experience in Akhter Abbas Khan and Co. where academic principles of audit were combined with the professional practice in the form of application of ISA and IFRS. The tenure was an active involvement of the external audits of Rajib Agro Chemicals Limited (RACL) and Rajib Agro Business (Pvt) Limited (RABL). The main areas of focus were transaction vouching, bank reconciliations and verification of fixed assets in line with IAS 16, which would provide a holistic picture of the audit lifecycle in the agricultural industry. The audit procedure was by the use of a risk-based approach, which involved planning, risk assessment, and substantive testing. More attention was paid to the high-risk spheres such as revenue cut-off according to IFRS 15, inventory valuation according to IAS 2, and the verification of cash-in-hand. The result of such procedures was a Qualified Opinion about RABL regarding fiscal year ended June 30, 2025. The finding of such determination became necessary due to nonconformance to the standards of inventory valuation, absence of agreements on an account payable basis per party, and scope restriction concerning unverified year-end cash balances. Systemic professional issues, including the subjectivity of auditor judgment and sampling method constraints, are also analyzed in terms of the engagement. In order to improve the quality of audits, in the future, the report suggests a more rigid following of the standard work program and more focus on the independent third-party evidence rather than the management representations. These results highlight the importance of the auditing career in making corporations transparent in Bangladesh and they offer a solid technical basis of developing further career in Chartered Accountancy.