Statutory Auditing Services in Bangladesh

Statutory auditing is a legal requirement, not an optional review. Under the Companies Act 1994, every private and public limited company, including single-shareholder companies and subsidiaries of foreign groups, must appoint an auditor and lay audited accounts before shareholders at the annual general meeting. The National Board of Revenue expects audited statements with the company income tax return, and banks and tender committees ask for them too.

This page is for directors and finance managers of Bangladeshi companies and foreign-owned subsidiaries who want the audit to run smoothly. We do not issue audit opinions ourselves; the auditor must be independent. Our role is preparing audit-ready accounts and schedules, coordinating with the audit firm you appoint, and linking the audit to your AGM, RJSC filings and tax return.

Who needs a statutory audit?

• All companies incorporated under the Companies Act 1994, whether private or public, active or dormant
• Subsidiaries of foreign companies registered with RJSC
• Branch offices of foreign companies, which typically need audited accounts for Bangladesh Bank, BIDA and remittance purposes
• Entities regulated by specific laws, such as banks, insurers, NGOs and listed companies, which face additional audit rules
• Partnership firms and proprietorships do not have a Companies Act audit requirement, but may need audited accounts for banks, tenders or tax purposes

How auditor appointment and timing work

The Companies Act provides that the directors appoint the first auditor after incorporation, and thereafter the shareholders appoint or re-appoint the auditor at each AGM to hold office until the next one. The auditor must be a chartered accountant in practice and independent of the company and its management.

Timing is linked to other deadlines. The AGM must be held within the period set by the Companies Act, the annual return goes to RJSC after the AGM, and the company income tax return under the Income Tax Act 2023 relies on audited figures. A late audit therefore delays the AGM, RJSC compliance and the tax return together, which is why planning the audit from the start of the year matters.

Preparing audit-ready accounts

Most audit delays come from the client side: unreconciled balances, missing documents and late answers to queries. Before the auditor arrives, the following should be ready:

• Final trial balance and draft financial statements with notes
• Bank reconciliations and bank confirmations for every account
• Fixed asset register with additions, disposals and depreciation
• Schedules of receivables, payables, accruals and advances with supporting documents
• Payroll records, salary TDS challans and withholding returns
• VAT returns, VDS certificates and a reconciliation of VAT turnover with accounts
• Share capital records: Form XII, return of allotment, share transfers and remittance documents for foreign shareholders
• Board minutes and contracts for significant transactions

DVS and why it matters

The Institute of Chartered Accountants of Bangladesh operates a Document Verification System (DVS) through which audit firms register the audit reports they issue. A DVS code allows the NBR, banks and other users to verify that a report is genuine. Audit reports without valid DVS verification may be rejected for tax and banking purposes, so confirm that your auditor registers the report and provides the code.

Common audit problems to avoid

• Appointing an auditor late, leaving no time before the AGM and tax deadlines
• Treating the audit as a one-off event rather than the result of a year of good bookkeeping
• Unexplained differences between audited sales and VAT returns
• Director loans and related-party balances without agreements or board approval
• Foreign investment recorded as share capital without the matching encashment certificate and allotment filings
• Using an unregistered or non-independent person to sign the audit report

How the process works

1. Audit planningWe agree a timetable working back from your AGM and tax return dates and confirm auditor appointment.
2. Close the booksWe finalise year-end entries, reconciliations and draft financial statements.
3. Build the audit fileWe compile schedules and supporting documents in the order the auditor typically requests.
4. Fieldwork supportWe answer auditor queries and process agreed adjustments promptly.
5. Final statementsWe review the final statements, management letter and DVS-verified report with you.
6. Link to complianceWe feed the audited figures into the AGM papers, RJSC filings and company tax return.

Typical timeline: For a small or medium company with organised books, preparation and audit fieldwork commonly take a few weeks; timing depends on record quality, the company's size and the audit firm's schedule.

How Tax & VAT Associates helps

• Audit-ready draft financial statements and notes
• Complete audit file with reconciliations and schedules
• Coordination with your independent ICAB-member audit firm
• Review of auditor adjustments and management letter points
• Alignment of the audit with AGM, RJSC annual return and tax return deadlines

Frequently asked questions

Related services

Last reviewed: 6 October 2026. Bangladesh tax and regulatory rules change with each Finance Act, SRO and authority circular. This page is general guidance; confirm current requirements for your case before filing.