Internal Audit Services in Bangladesh

Overview

Internal audit services play a critical role in enhancing an organization’s effectiveness and governance in Bangladesh. The term "audit" derives from the Latin word "audire," meaning "to listen," highlighting the auditor's role in reviewing and assessing financial and operational processes. Internal auditors focus on evaluating compliance with accounting policies, internal procedures, and regulatory requirements. Established in the early 1990s, the internal audit function has evolved to encompass a wide range of activities, including compliance audits, fraud investigations, operational efficiency assessments, and risk management.

Benefits of Internal Audit Services

1. Enhanced Risk Management: Internal audits help identify, assess, and mitigate risks, ensuring the organization remains resilient in a complex environment.
2. Improved Operational Efficiency: By evaluating processes and controls, internal auditors recommend improvements that streamline operations and reduce costs.
3. Compliance Assurance: Internal auditors ensure that organizations comply with relevant laws and regulations, reducing the risk of legal penalties.
4. Fraud Prevention: Regular internal audits help detect fraudulent activities early, safeguarding the organization’s assets.
5. Strategic Insights: Internal audit findings provide valuable insights that can inform strategic decision-making and enhance overall governance.

Costs of Internal Audit Services

Process of Internal Auditing

1. Planning and Scope Definition: The internal auditor collaborates with management to define the audit's scope, objectives, and methodology.
2. Risk Assessment: The auditor conducts a risk assessment to identify areas that may be prone to fraud or inefficiency.
3. Fieldwork and Testing: This involves detailed testing of transactions, compliance with policies, and evaluation of internal controls.
4. Report Preparation: The auditor prepares a comprehensive report outlining findings, conclusions, and recommendations for improvement.
5. Follow-Up: The auditor monitors the implementation of recommendations and evaluates the effectiveness of changes made.

Relevant Government Acts and Regulations

In Bangladesh, internal audits are governed by several key regulations:

• Companies Act of 1994: This act mandates annual internal audits for registered companies to ensure compliance with corporate governance standards.
• Financial Reporting Act of 2015: Enhances the quality of financial reporting and internal controls, emphasizing the need for internal audits.
• Income Tax Ordinance of 1984: Requires organizations to maintain proper accounting records and comply with tax regulations, which internal auditors help ensure.

Why Internal Audit is Necessary

• Legal Compliance: Organizations are required to conduct internal audits to comply with statutory obligations and avoid legal issues.
• Risk Mitigation: Identifying and addressing risks early can prevent significant financial losses and reputational damage.
• Efficiency Improvement: Regular internal audits reveal inefficiencies and provide actionable insights that can lead to improved performance.
• Stakeholder Confidence: Reliable internal audits enhance stakeholder trust, assuring them that the organization operates transparently and effectively.

Why Choose Our Internal Audit Services

1. Experienced Professionals: Our internal audit team consists of seasoned auditors with diverse industry experience, ensuring a thorough understanding of your business needs.
2. Independence and Objectivity: We maintain strict independence from management, providing unbiased assessments that uphold the integrity of our audits.
3. Tailored Audit Solutions: Our services are customized to meet the specific requirements of each organization, ensuring relevant and impactful audits.
4. Commitment to Excellence: We prioritize quality and thoroughness in our audits, delivering comprehensive reports that aid in strategic decision-making.
5. Proven Track Record: We have established a strong reputation for delivering high-quality internal audit services across various sectors in Bangladesh.