Audit
History of Auditing Profession in Bangladesh
Report on
History of Auditing Profession in Bangladesh
Institute of Business Administration
Jahangirnagar University
Date – 07.07.2014
Table of contents contents Page number
Executive summary
4
Introduction
5
Audit in brief:
6
History of auditing profession in Bangladesh
6-10
Ending summary
10-11
conclusion
11
Executive summary:
The development of auditing profession in an emerging economy Bangladesh is analyzed here. This report aims to discuss the historical background and evolution of auditing. It is found that auditing has evolved through a number of stages. In the mid 1800s to early 1900s, the audit practice was considered as traditional conformance role of auditing. However, for the past 30 years, the auditor has been playing an enhancing role. Today, auditors are expected not only to increase the believability of the financial statement, but also to provide value-added services. Nevertheless, following extensive reform in various countries as a result of the collapse of big corporations, it is expected that the role of auditors will converge. It is evident that the paradigm about auditing has shifted over the years and it is likely to continue shifting in the future. The first Companies Act in the then British India was enacted in 1850. The Companies Act of 1882 was passed where acts of auditing were imposed. It was not necessary for a company auditor in those times to be accountant himself. The Companies Act, 1913, was passed to be effective as from 1st April, 1914. No person could act as the Auditor of a public limited company unless he held an auditor’s certificate granted by Government. The Government framed Rules under Section 144, of the Companies Act, 1913, called “Auditors Certificate Rules’ 1932”to have control over the profession of accountancy. In 1952, the Registered Accountants formed a private body known as “Pakistan Institute of Accountants” with the objects
Report on
History of Auditing Profession in Bangladesh
Institute of Business Administration
Jahangirnagar University
Date – 07.07.2014
Table of contents contents Page number
Executive summary
4
Introduction
5
Audit in brief:
6
History of auditing profession in Bangladesh
6-10
Ending summary
10-11
conclusion
11
Executive summary:
The development of auditing profession in an emerging economy Bangladesh is analyzed here. This report aims to discuss the historical background and evolution of auditing. It is found that auditing has evolved through a number of stages. In the mid 1800s to early 1900s, the audit practice was considered as traditional conformance role of auditing. However, for the past 30 years, the auditor has been playing an enhancing role. Today, auditors are expected not only to increase the believability of the financial statement, but also to provide value-added services. Nevertheless, following extensive reform in various countries as a result of the collapse of big corporations, it is expected that the role of auditors will converge. It is evident that the paradigm about auditing has shifted over the years and it is likely to continue shifting in the future. The first Companies Act in the then British India was enacted in 1850. The Companies Act of 1882 was passed where acts of auditing were imposed. It was not necessary for a company auditor in those times to be accountant himself. The Companies Act, 1913, was passed to be effective as from 1st April, 1914. No person could act as the Auditor of a public limited company unless he held an auditor’s certificate granted by Government. The Government framed Rules under Section 144, of the Companies Act, 1913, called “Auditors Certificate Rules’ 1932”to have control over the profession of accountancy. In 1952, the Registered Accountants formed a private body known as “Pakistan Institute of Accountants” with the objects