Every company in Bangladesh must have its accounts audited each year by a chartered accountant. The audit firm works from a "prepared by client" (PBC) list: ledgers, reconciliations, schedules and legal records. We prepare all 65 standard requests before fieldwork starts and coordinate with your audit firm. We do not sign the audit or give the opinion.
What the law requires
The Companies Act 1994 sets the basic rules, for private limited companies as well as listed ones.
- Section 181: the company must keep proper books of account that give a true and fair view and explain its transactions.
- Section 183: the board must lay a balance sheet and profit and loss account before every annual general meeting (AGM).
- Section 210: the company must appoint an auditor at each AGM.
- Section 212: the auditor must be a chartered accountant under the Bangladesh Chartered Accountants Order 1973. In practice, that means a member firm of the Institute of Chartered Accountants of Bangladesh (ICAB).
- Section 213: the auditor can see all books and vouchers and ask for any explanation. It must also check, for example, that cash was really received for shares shown as allotted for cash.
The Document Verification System (DVS), built by ICAB and the National Board of Revenue (NBR), was launched in November 2020, and tax offices have used it since 1 December 2020 to check that audited statements filed with a tax return are genuine. Ask your audit firm to confirm your signed report is registered in DVS.
Which standards apply
The Financial Reporting Council (FRC) was set up under the Financial Reporting Act 2015. It regulates financial reporting and auditing for public interest entities (PIEs). FRC adopted IFRS Accounting Standards in 2020 and International Standards on Auditing (ISA) in 2021, both without changes. It has also adopted IFRS for SMEs and the IESBA Code of Ethics for accountants.
Banks, insurers and listed companies are always PIEs. A private company also becomes a PIE if, in the previous reporting year, it had revenue of BDT 500 million (Tk 50 crore) or more, or met two of these three tests:
| Test | Threshold |
|---|---|
| External liabilities | BDT 100 million (Tk 10 crore) or more |
| Total assets | BDT 300 million (Tk 30 crore) or more |
| Workforce | 50 people or more |
Only FRC-enlisted auditors can audit a PIE. Agree the reporting framework with your audit firm before year-end. We build the schedules to match it.
The PBC checklist
A PBC list is the set of documents and schedules the auditor asks the company to prepare. Every firm has its own version; this is a typical shape. In week one we map our 65 standard requests to your firm's actual list.
| Area | What the auditor asks for |
|---|---|
| Ledger and trial balance | Year-end trial balance mapped to the statements; general ledger export; journal listing with manual entries flagged |
| Cash and bank | Statements for every bank and mobile financial services (MFS) account; year-end reconciliations; details for bank confirmation letters, which the auditor sends directly (ISA 505) |
| Receivables | Ageing by customer; receipts after year-end; balances for confirmation; basis for any bad-debt provision |
| Payables and accruals | Ageing by supplier; payments after year-end (to find unrecorded bills); accruals schedule |
| Inventory | Count instructions and signed count sheets; valuation at lower of cost and net realisable value; slow-moving list. The auditor may attend the count (ISA 501) |
| Fixed assets and leases | Fixed asset register with additions and disposals backed by invoices; depreciation workings; lease agreements and lease schedules |
| Payroll and benefits | Payroll register agreed to the ledger; sample appointment letters; provident fund records; gratuity calculation; Workers' Participation Fund (WPPF) workings if it applies |
| Tax and VAT | Income tax returns and assessments; tax deducted at source certificates; VAT returns (Mushak 9.1) reconciled to revenue; open notices and appeals |
| Equity | MoA and AoA; Schedule X; Form XV for each share allotment; proof of share money received, including encashment certificates for foreign equity |
| Related parties | List of related parties; transactions and year-end balances; director loans and guarantees (ISA 550) |
| Governance and legal | Board and AGM minutes; major customer, supplier and loan contracts; list of legal cases. At the end, management signs a representation letter (ISA 580) |
The Bangladesh Labour Act 2006 defines gratuity as at least 30 days' wages for each completed year of service, or 45 days' wages after more than 10 years. If owed, it belongs in the accounts. Chapter XV (WPPF) applies if paid-up capital is at least Tk 1 crore or fixed assets at least Tk 2 crore at year-end. Such a company pays 5% of the previous year's net profit into the funds, split 80:10:10, within nine months of year-end.
Why readiness shortens fieldwork
Fieldwork usually stalls because requests go out one at a time and each answer raises a new question. A ready pack fixes that. Every schedule ties to the trial balance, every number has its support filed next to it, and one person owns the open-items log. The audit team can test instead of waiting.
Timeline
Length depends on how far behind the books are. The written quote gives dates.
- Gap checkWe compare your records with the 65 standard requests and your audit firm's list, and mark each item ready, needs work or missing.
- Close and reconcileWe post the year-end adjustments and reconcile bank, MFS, receivables, payables, inventory and fixed assets.
- Build the packSchedules and support are indexed by area and checked against the trial balance.
- Hand overThe full pack goes to the audit firm before fieldwork starts.
- Fieldwork supportWe answer follow-up queries, track them in a shared log and prepare any agreed adjustments for your approval.
- Close outPoints from the auditor's management letter go into your fix plan for next year.
Who does what
| Task | nirvor | You | Audit firm |
|---|---|---|---|
| Close books and reconcile | Prepares | Approves | — |
| PBC schedules and support | Prepares | Supplies source documents | Requests and tests |
| Financial statements | Drafts if asked | Owns and approves (board) | Audits |
| Confirmations and count attendance | Provides details | Authorises | Sends and attends |
| Audit opinion and signature | — | — | Issues and signs |
Your audit firm must stay independent of the numbers it audits. The IESBA Code of Ethics, which FRC has adopted, limits the bookkeeping an auditor can do for its own audit client. So preparation sits with you and us, and the opinion stays with the audit firm. We never sign it.
We do
- Gap check against 65 standard requests
- Year-end close and reconciliations
- Ageing, fixed asset and lease schedules
- Gratuity, WPPF and tax workings
- Indexed PBC pack and open-items log
- Day-to-day contact with the audit team
You provide
- Access to your accounting software
- Bank, MFS and loan statements
- Invoices, contracts and payroll records
- Board minutes and RJSC filings
- One person who can approve entries
- Your audit firm's request list and dates
Frequently asked questions
Do you do the statutory audit yourselves?
No. We prepare all 65 audit requests and coordinate with your ICAB-licensed audit firm, which signs the audit.
Does a small private limited company need an audit?
Yes. Section 210 of the Companies Act 1994 requires every company to appoint an auditor at each AGM, and the auditor's report is presented to members with the accounts. The rule is not limited to listed or large companies.
What is a PBC list?
PBC means "prepared by client". It is the list of schedules and documents the auditor asks the company to prepare, such as the trial balance, bank reconciliations, ageing reports and the fixed asset register.
Does our company need an FRC-enlisted auditor?
Only if it is a public interest entity. A private company becomes one if last year's revenue was Tk 50 crore or more, or it met two of three tests: liabilities of Tk 10 crore, assets of Tk 30 crore, or 50 or more workers.
Our books are two years behind. Can you still help?
Yes. We start with the oldest unaudited year, because each year's closing balances become the next year's opening balances. The written quote sets out each year separately.
Sources
- Companies Act 1994 (Act XVIII of 1994), Laws of Bangladesh, Ministry of Law. Sections 36, 151, 181, 183, 210, 212, 213; English text read from the RJSC English version.
- Jurisdiction, Implementation of IFRS and Challenges in Bangladesh, Financial Reporting Council Bangladesh, presented to the IFRS Foundation, November 2025. PIE definition, standards adopted, enlisted auditors.
- ICAB and NBR jointly launched Document Verification System (DVS), ICAB Monthly News Bulletin No. 370, November 2020.
- Bangladesh Labour Act 2006, Laws of Bangladesh, Ministry of Law. Section 2(10) (gratuity), sections 232 and 234 (WPPF).
- International Standards on Auditing, IAASB. ISA 501, 505, 550 and 580.
- International Code of Ethics for Professional Accountants (including Independence Standards), IESBA.
General information, not legal or tax advice. Rules, fees and deadlines change; check the current circular or ask us before you file.