members’ conference on
DESCRIPTION
ICAB. MEMBERS’ CONFERENCE On. Harmonization of Financial Reporting and Audit Practices: Bangladesh Perspectiv e. Dhaka – 23 February 2013. Anwaruddin Chowdhury fca Member Council & Past President ICAB, Director CAPA Board. Regulators, Standards Setters & Professional Bodies. 2. 3. 4. - PowerPoint PPT PresentationTRANSCRIPT
Anwaruddin Chowdhury fcaMember Council & Past President ICAB, Director CAPA Board
ICAB
Dhaka – 23 February 2013
Harmonization of Financial Reporting and Audit Practices: Bangladesh Perspective
2Regulators, Standards Setters & Professional Bodies
3
4
5
6
7
8
9
Recent Developments – Impact on FR & AP Global Scenario – Economic Recession
(DAVOS/IMF) Global Financial Crisis/ Euro zone Debt Crisis
PREAMBLE PREAMBLE
• Regulatory Failure – Sub-prime Lending / Derivatives
• G-20 Pittsburg Summit 2009 Declaration
• Critical Nature of Financial Markets
• Convergence to Globally Harmonized High Quality Independent Accounting/FR Standards
• Important Role of Accountants - Global Recovery
• Simplification of FI Standards
• Lessons Learnt & Way Forward
10
Political implications of 9/11
Corporate Frauds of New Millennium – Enron
Corporate Governance Failures (Greed) Role of Auditors and Rating Agencies Collapse of Arthur Andersons ? Lessons Learnt / Way Forward Strengthening CG Practices Oversight Regulatory Bodies
ASEAN Financial Crisis (late 90s) Inadequacy of Financial Reporting Lessons Learnt / Way Forward
PREAMBLE PREAMBLE
11
Moving to IAS/IFRS – Rationale.
Forces Driving Harmonization
Accounting as ‘lingua franca’ –Dimensions
Role of IASB & IFAC (IAASB/IPSASB)
Role of IOSCO
Role of ISAR
Role INTOSAI
IAS/IFRS AND ISA –GLOBAL ACCOUNTING/ REPORTING IAS/IFRS AND ISA –GLOBAL ACCOUNTING/ REPORTING AND AUDIT CODES FOR HARMONIZATION OF FR & AP AND AUDIT CODES FOR HARMONIZATION OF FR & AP
12
HARMONIZATION OF ACCOUNTING AND HARMONIZATION OF ACCOUNTING AND FINANCIAL REPORTING PRACTICES /POSITIVE FINANCIAL REPORTING PRACTICES /POSITIVE
DIMENSION DIMENSION
Forces Driving Harmonization
General Considerations
Significance of IFRS Harmonization
Benefits of IFRS Harmonization
Harmonization Benefits to Multinationals
WTO Ministerial 1996 – Implications
G-20 Pittsburg Summit Declaration
European Convergence 2005
American Convergence 2015 ?
13
FACTORS DRIVING STANDARDIZATION FACTORS DRIVING STANDARDIZATION
Deregulation & Liberalization of Economies Accelerated Globalization Catalyzing
Harmonization Entry by Multinational Corporations Increased External Competition Need for Regional/Global HFR&AP
- Donors/Transparency/Corp Govnce.
Foreign Competitiveness – FDI Increased Government/Society/Client
Expectations
Rapidly Evolving Inform. & Comm. Technologies
Increased Clientele Knowledge & Changed Attitudes
Global Economic Scenario –Recession (GFC/EDC)
Transferability of Knowledge, Skills and Competence
14
INTERNATIONAL STANDARDS SETTING BODIES INTERNATIONAL STANDARDS SETTING BODIES
Standard Setting Bodies
IFAC
- IAASB = ISA/IAPS (Prvt Sec Aud Stds)
- IPSASB= IPSAS (Publ Sec Accg Stds)
IASB = IFRS (Prvt Sec Accg/FR Stds)
INTOSAI = ISSAI (Publ Sec Aud Stds)
UNCTAD ISAR = (Prvt Sec Accg Gudls)
15
STANDARDS SETTING/ADOPTION PROCESSSTANDARDS SETTING/ADOPTION PROCESS
Standard Setting Process
IAS/IFRS ISA/IAPS
ICAB Adoption Process
BAS/BFRS BSA/BAPS IPSAS (OCAG) ISSAIs (OCAG)
16
1717
1717
INTERNATIONAL STANDARDS SETTING INTERNATIONAL STANDARDS SETTING BODIES/PROCESS BODIES/PROCESS
IASB
(Steering Comm)
(Exposure Drafts)
IFRS(formerly IAS)
Accounting
IFAC
(IAASB)
(Discussion Drafts)
ISA(and IAPS)
Auditing
17
Harmonization of Financial Reporting refers to the process of standardized convergence through overcoming inconsistencies and narrowing differences in accounting principles and treatment (recognition and measurement) and presentation (disclosure) of items in Financial Statements. Harmonization of Audit refers to the process of standardized convergence through overcoming inconsistencies and narrowing differences in conducting the audit (methodology application) and reporting on the audit of Financial Statements (audit report). HFR&AP ensures greater accountability of management decisions and credible transparency of reported financial information - thereby enhancing good governance in corporate sectors and providing reliable information to user groups (stakeholders) for decision making purposes.
HARMONIZATION MEANINGHARMONIZATION MEANING
18
NEED FOR IAS/IFRS HARMONIZATION NEED FOR IAS/IFRS HARMONIZATION Implementation of International Best
Practices
Global Convergence of Accounting/FR Regimes
IOSCO Compliance- Cross Border Listing of Securities
Enable Structured Uniform Presentation of FS
Encourage Global Investment Opportunities
Facilitate Cross-border Mergers and Acquisitions
Credibility of FS by Regulators & Stakeholders
Reduce Capital Cost for Foreign Companies Ensure Global Comparability of Financial
Statements - Accounting Principles, Treatment
(Recognition & Measurement)
- Presentation/Disclosure of Items in FS
19
BENEFITS OF IFRS HARMONIZATION BENEFITS OF IFRS HARMONIZATION Global Comparability of Financial Information
Access to Foreign Capital Markets Credibility of Domestic Capital Markets for
FDI Reduced Cost of Capital to Foreign Companies
Compliance with GATS/WTO Provisions Greater Objectivity in Audit of FS Reduced National Standard setting Costs. Local Implementation Guidelines,
Adaptation Global Professional Credentials
- Transparency - Understandability
- Relevance - Reliability
20
HARMONIZATION BENEFITS TO HARMONIZATION BENEFITS TO
MULTINATIONALSMULTINATIONALS Improved Accessibility to Foreign Investor Funds.
Improved Management Control
Enhanced Appraisal Facilitation
Ensures Foreign Stock Exchanges Compliance
Permits Consolidation of Subsidiaries and Associates
Audit Costs Reduction
Transferability/Mobility of Accounting Personnel
Determination of Global Tax Assessments 21
HARMONIZATION OF AUDITING PRACTICES HARMONIZATION OF AUDITING PRACTICES
General Considerations
Stewardship System of Financial Reporting
Audit Administration Methodology
Significance of ISA Harmonization
Benefits of ISA Harmonization
22
ACCOUNTABILITY FOR STEWARDSHIP SYSTEM ACCOUNTABILITY FOR STEWARDSHIP SYSTEM OF FINANCIAL REPORTINGOF FINANCIAL REPORTING
ShareholderShareholderss
ShareholderShareholderss
DirectorsDirectorsDirectorsDirectors
Au
dit
or
Au
dit
or
Au
dit
or
Au
dit
or
OwnershiOwnershipp
OwnershiOwnershipp
ManagementManagementManagementManagement
23
AUDIT ADMINISTRATION PROCESSAUDIT ADMINISTRATION PROCESS
24
Knowledge of Business Risk Assessment Letter of Engagement
Accounting System & Internal Control
Planning
Controlling
Documentation
Evidencing
Review of Financial Statements
Post Audit Review
Audit Report
Commencement of Audit
Initial Discussion
Audit Methodology
Completion of Audit
Submission of Audit Report
HARMONIZATION OF PUBLIC SECTOR HARMONIZATION OF PUBLIC SECTOR ACCOUNTING AND AUDITING PRACTICESACCOUNTING AND AUDITING PRACTICES
Objectives & Dimensions
Strengthening PSFM/Public Sector Accg & Audit
OCAG Accounting & Auditing Function
Implementation of D.E. Accrual Accounting
Application of IPSAS in PS Accounts
Application of ISSAIs in PS Audits
Performance Audit/Environment/Forensic Audits
25
GOVT / PUBLIC SECTOR FINANCIAL ACCOUNANTABILITY
StakeholdersStakeholdersStakeholdersStakeholders Govt. Agencies Govt. Agencies Govt. Agencies Govt. Agencies ConstitutionConstitutionConstitutionConstitution
SAI / CAG SAI / CAG SAI / CAG SAI / CAG
OwnershipOwnershipOwnershipOwnership CitizensCitizensCitizensCitizens
CAG FUNCT ACT-1974CAG FUNCT ACT-1974CAG FUNCT ACT-1974CAG FUNCT ACT-1974
26
PUBLIC SECTOR PURVIEW PUBLIC SECTOR PURVIEW IPSASB Framework“Public sector refers to Governments, Regional
Government, Local Governments & Related Government entities including Agencies, Boards, Commissions & Enterprises”
Bangladesh Public Sector - All Arena of Public Services: Government Ministries Divisions /Directorates / Departments Government Sub-Ordinate Offices Local Government Authorities Autonomous/Semi-Autonomous Bodies Public Sector Corporations Foreign Aided Projects (SCOPE/SPEMP B) State Owned Enterprises (SOEs) State Owned Bank (SOB) Hospitals/Educational Institutions etc. LGIs –City corps, Municip, UPs
27
IMPORTANCE OF FINANCIAL REPORTING SYSTEM IMPORTANCE OF FINANCIAL REPORTING SYSTEM FOR GOVERNMENTS / PUBLIC SECTORFOR GOVERNMENTS / PUBLIC SECTOR
Increased Accountability/Transparency of Public Funds
Developing Public Sector Awareness of Govt. Spending
Credibility of Financial Information for Public Trust
Timeliness for Good Governance and Decisions
Increased Credibility for Attracting FDI
Assurance to Development Partners
Improved Sovereign Rating Awards
Efficient Financial Reporting System for Economic Development & Public Welfare.
28
GOVERNMENT PUBLIC SECTOR REPORTING GOVERNMENT PUBLIC SECTOR REPORTING - CASH / ACCRUAL ACCOUNTING- CASH / ACCRUAL ACCOUNTING
Cash Flows
Budget
Revenues,
Expenses
Budget
Assets,
Liabilities
Estimate
Revenues,
Expenses Actuals
Assets, Liabilities
Actuals
Cash Flows Actuals
Cash Accounting
(SE)
Accrual Accountin
g(DE)
29
CASH-BASIS IPSAS: TRANSITION STEP TO CASH-BASIS IPSAS: TRANSITION STEP TO ACCRUAL IPSAS (OCAG BANGLADESH)ACCRUAL IPSAS (OCAG BANGLADESH)
Accrual Accounting IPSAS 1-32
(Accrual DE)
Cash-Basis IPSAS
(Transition Step)
Current policies
(Cash SE )
30
ACCRUAL AND CASH ACCOUNTING : AN INTEGRATIVE APPORACH
Accrual and Cash
Accounting are
Fully Integrated Accrual and Cash
Accounting are
Fully Integrated Adoption of
Cash-Basis IPSAS
is Facilitated
Adoption of
Cash-Basis IPSAS
is Facilitated Requiring Direct
Method Cash Flow
Statement Requiring Direct
Method Cash Flow
Statement
31
PUBLIC SECTOR AUDITOR’S ROLE
Determining Oversight
Facilitating Foresight
Increasing Insight
Conducting Objective Independent Financial Audit
Conducting Performance/VMA Environment and IT Audit
Enhancing Economy, Efficiency & Effectiveness of Resources Utilization of Audit Entities
Meet Expectations of Development Partners
Ensuring Transparency of Financial Information
Assuring Accountability of Management Decisions
Combating Corruption, Misuse & Wastage 32
PUBLIC SECTOR AUDIT FOCUS
Emphasis on Expenditure
Availability of Budget
Authorization By Competent Authority
Payment Acknowledged By Right Person
Government Rules And Procedures Complied
Expenditures Properly Classified
Justification Of Expenditures
Emphasis on Cash Expenditures And Cash
Income - Not on Accruals (Cash Basis IPSAS)
33
PROSPECTIVE HARMONIZATION NEEDS
Harmonization for SME Reporting
Harmonization for NGO/MFIs Reporting
Harmonization for Sustainability Reporting
Harmonization for Integrated Reporting
Harmonization for Alternative Financial System
Harmonization for Other Forms of Reporting Entities
34
REGIONAL HARMONIZATION OF FINANCIAL REGIONAL HARMONIZATION OF FINANCIAL REPORTING AND AUDIT PRACTICES REPORTING AND AUDIT PRACTICES
South Asian Federation of Accountants (SAFA)
Confederation of Asian & Pacific Accountants (CAPA)
Role of Regional Harmonization Role
Standardization of Adoption Process
SAFA BPA & CG Awards – Positive Dimension
ICAB National Awards for BPA&R – Catalyst for Best Presented Corporate Reports (Highest Winner in SAFA contest)
35
INSTITUTIONAL LEGAL REGULATORY INSTITUTIONAL LEGAL REGULATORY
FRAMEWORKS IN BANGLADESH FRAMEWORKS IN BANGLADESH
Responsibility for Preparation & Audit of FS
Legal Regulatory Framework
- CA/SER/BCA/IA/Listing Rules
- RJSC/SEC/BB/IDRA/Stock Exchanges
ICAB - Role / Bye Laws
Current Adoption Status – (Appendices)
Legal Enforceability of Standards
Implementation Status of Standards
36
Annual FS are prepared and presented within a framework of recognized accounting principles,
rules and regulations some mandatory some recommendatory.
CA 1994 provides basic requirements for accounting and reporting of all companies - Silent about IAS/BAS.
SER 1987 [Rule 12 (2) & (3)] requires mandatory compliance with the adopted IAS/IFRS and the ISA.
BCA ‘91 mandates reporting formats and disclosures
IA ‘12 Compliance requirements
Govt Orders – Public Sector corporations/SOEs/SOBs
NGOs and MFIs Accounting and Reporting
Tax Laws Effecting FR Presentation (Non-Listed)
FINANCIAL REPORTING IN BANGLADESH FINANCIAL REPORTING IN BANGLADESH
REGULATORY AND INSTITUTIONAL REGULATORY AND INSTITUTIONAL FRAMEWORK FRAMEWORK
37
Total IAS Extant = 29
Total Adopted = 28
Not Adopted = 01 (Hyperinflation)
Total IFRS Issued = 13
Total Adopted = 12
Not Adopted = 01 (Fin Ins)
IFRS on SMEs = Adopted (1-1-13)
IPSAS Issued 33 = Not Considered by ICAB(Cash IPSAS by OCAG)
SIC/IFRIC = Not Adopted by ICAB
ADOPTION STATUS OF STANDARDS ADOPTION STATUS OF STANDARDS
IAS/IFRS & IPSAS = Appendix I & IIIIAS/IFRS & IPSAS = Appendix I & III
38
Total ISA Issued/Extant 36=All Adopted
IAPS Issued & Adopted = 8
ISA Framework, BSQC1, Glossary = Adopted
IFAC Code of Ethics, BSQC1 = Adopted
IFAC SMOs (7) = Fully Compliant
ISSASIs Issued 37 = Not Considered by ICAB(Implemented by OCAG)
ADOPTION STATUS OF STANDARDS ADOPTION STATUS OF STANDARDS
ISA /IAPs & ISSAIs – Appendix II & IVISA /IAPs & ISSAIs – Appendix II & IV
39
Legal Mandate –
Statutorily Enforceable for listed companies under SEC Rules 1987 (including Banks, Insur Cos & NBFIs). No legal observance requirement in CA/other statutes
Professional Mandate –
Not yet professionally mandatory/Enforceable through CA Bye-Laws 1973
Other Considerations
ENFORCEABILITY STATUS OF ADOPTED ENFORCEABILITY STATUS OF ADOPTED
STANDARDSSTANDARDS
40
Challenges/Limitations of Harmonization
= Refer Conference Paper
Major Challenges
Opportunities /Prospects
= Refer Conference Paper
Major Prospects
CHALLENGES AND PROSPECTS OF CHALLENGES AND PROSPECTS OF
HARMONIZATION IN BANGLADESH HARMONIZATION IN BANGLADESH
41
Major Challenges - Standard Setting/Adoption stage
MAJOR CHALLENGESMAJOR CHALLENGES
Speedy adoption of IFRS & ISA suffers from lack of technical and financial resources.
Existing laws sometime contrary to IFRS provisions, acting as major impediments to the adoption process.
Fair Value Accounting Limitations – market imperfections; lack of familiarization, information flow and reliability of available data & stats.
42
Major Challenges at Implementation Stage
MAJOR CHALLENGESMAJOR CHALLENGES
Management Mindset –Averse to Changes Lack of awareness, understanding & application
skills by preparers and auditors about IAS/IFRS and ISA
Lack of accountability of management decisions and transparency of financial information
Lack of resources, knowledge, technical skills and competence of regulatory agencies to monitor /enforce compliances with Standards.
43
MAJOR CHALLENGESMAJOR CHALLENGES
Need for constant updating Fund and technical resource constraints to
monitor implementation of IAS/IFRS & ISA Lack of mandatory legal compliance provisions Lack of implementation guidelines for BAS/BFRS Low level of audit fees Demand–supply gap of qualified accountants FVA limitations-market imperfections Concerted training program on IAS/IFRS and ISA Capacity building and institutional development of
regulatory agencies and professional bodies Technical assistance for training Mandate Professional enforceability of standards
44
MAJOR PROSPECTS MAJOR PROSPECTS
Mindset Changes – Regulators/Business Entities Transformation of Corporate Culture Significant Improvement in Financial Reporting
Practices SAFA BPA & CG Awards- Positive Dimension ICAB National Awards for BPAR- Catalyst for
Remarkable Corporate Reporting Harmonization Corporate Governance Practices Role of SAFA/CAPA in Regional Harmonization Credit Rating Requirement QAB -Incentivization for Harmonization Proactive Role of ICAB :
- PPP for Improved Quality Assurance with OCAG
- Training of NBR/BB Officials/ Others Agencies
45
Policy Issues & Recommendations
= Refer Conference Paper
Major Issues & Recommendations
NO FRA / FRC B
= Superimposition of Redundant Oversight
Body
POLICY ISSUES & RECOMMENDATIONS POLICY ISSUES & RECOMMENDATIONS
46
Composition of multi-disciplinary Task Force for HFR&AP
Different reporting regimes need to be established for: Public limited companies (listed & unlisted)
Large private companies
Small & medium sized entities (SMEs)
State owned enterprise (SOEs)
NGOs & MFIs
Other Forms of entities- Cooperatives
MAJOR ISSUES AND RECOMMENDATIONSMAJOR ISSUES AND RECOMMENDATIONS
47
Strategic Project - capacity building/institutional development project should be undertaken of ICAB
TRC & QAB of ICAB should be strengthened
Effective Seminars/Workshops – Stds Dissemination
Preparation of Implementation Guidelines for Stds
Listed Cos must employ qualified accountants
Audit/Professional Fees Enhancement
Awareness of IAS/IFRS & ISA in Entities & Auditors
SAFA/CAPA platform for regional
Harmonization
Mandatory implementation of Corporate
Governance practices (codes) for
strengthening HFR&AP
Broadening credit rating mandate
Refer Conference Paper
MAJOR ISSUES AND RECOMMENDATIONSMAJOR ISSUES AND RECOMMENDATIONS
48
Enabling Environment for Application of Standards
Capacity Building/Strengthening of Institutions
Regulatory Mandate for Application of Standards
Establish SEC/ICAB Joint Monitoring Board
Stimulate Changes Leadership Decisions for HFR&AP
Strengthening Learning Partnership with ICAEW
OCAG PPP for Improved AQA Knowledge Sharing
Impart Knowledge Sharing Training (NBR/BB)
Adequate Implementation of ICAB Strategic Plans
Finalization of ICAB Council Composition Reforms
Top Priority – No Superimposition of FRC
THE WAY FORWARDTHE WAY FORWARD
49
Application of harmonized Standards impact positive dimension for achievement of qualitative characteristics to reflect high quality globally comparable true & fair view Financial Statements
Standard-setting/adoption should be sustained as a progressively continuous process
Government must legislate, the Business, Profession and Regulators must work cohesively to ensure convergence onto IAS/IFRS & ISA - thereby playing their due roles for HFR&AP
Think global > See regional > Act local
CONCLUSION CONCLUSION
50
Will IR get off the ground ?
Looks Like –Yes,(If so-How and When ? Implications ?)
(If not –Reasons & Remedies ?)
HAPPY FINANCIAL REPORTING HAPPY FINANCIAL REPORTING AND AUDIT PRACTICESAND AUDIT PRACTICES
HARMONIZATION HARMONIZATION
ENHANCE THE PROFESSIONAL IMAGEENHANCE THE PROFESSIONAL IMAGEMEET CHALLENGES & UTILIZE MEET CHALLENGES & UTILIZE
OPPORTUNITIES OPPORTUNITIES
ALL THE VERY BESTALL THE VERY BEST
APENDICESAPENDICES
IAS/ BAS
Title of Adopted IAS as BAS Effective Date-Applicable on or after
1 Presentation of Financial Statements 1 Jan 2007
2 Inventories 1 Jan 2007
7 Statement of Cash Flows 1 Jan 1999
8 Accounting Policies, Changes in Accounting Estimates and Errors
1 Jan 2007
10 Events After the Reporting Period 1 Jan 1999
11 Construction Contracts 1 Jan 1999
12 Income Taxes 1 Jan 1999
16 Property, Plant and Equipment 1 Jan 2007
17 Leases 1 Jan 2007
18 Revenue 1 Jan 2007
19 Employee Benefits 1 Jan 2004
20 Accounting for Government Grants and Disclosure of Govt Assc
1 Jan 1999
21 The Effects of Changes in Foreign Exchange Rates
1 Jan 2007
Appendix I (A) - Adoption Status of International Accounting Standards Appendix I (A) - Adoption Status of International Accounting Standards
(IAS) by ICAB as Bangladesh Accounting Standards (BAS)(IAS) by ICAB as Bangladesh Accounting Standards (BAS)
53
IAS/ BAS
Title of Adopted IAS as BAS Effective Date-Applicable on or
after23 Borrowing Costs 1 Jan 201024 Related Party Disclosures 1 Jan 200726 Accounting and Reporting by Retirement
Benefit Plans 1 Jan 2007
27 Consolidated and Separate Financial Statements
1 Jan 2010
28 Investments in Associates 1 Jan 200729 Financial Reporting in Hyperinflationary
EconomicsNot adopted
31 Interests in Joint Ventures 1 Jan 200732 Financial Instruments: Presentation 1 Jan 201033 Earnings per Share 1 Jan 200734 Interim Financial Reporting 1 Jan 199936 Impairment of Assets 1 Jan 200537 Provisions, Contingent Liabilities and
Contingent Assets 1 Jan 2007
38 Intangible Assets 1 Jan 200539 Financial Instruments: Recognition and
Measurement 1 Jan 2010
40 Investment Property 1 Jan 200741 Agriculture 1 Jan 2007
54
SL # IFRS / BFRS
Title of Adopted IFRS as BFRS Effective Date- Applicable on or after
1 BFRS 1 First-time Adoption of IFRS 1 Jan 20092 BFRS 2 Share-based Payment 1 Jan 20073 BFRS 3 Business Combinations 1 Jan 20104 BFRS 4 Insurance Contracts 1 Jan 20105 BFRS 5 Non-current Assets Held for Sale
and Discontinued Operations 1 Jan 2007
6 BFRS 6 Exploration & evaluation of Mineral Resources
1 Jan 2007
7 BFRS 7 Financial Instruments: Disclosures
1 Jan 2010
8 BFRS 8 Operating Segments 1 Jan 20109 IFRS 9 Financial Instruments Not Adopted10 BFRS 10 Consolidated Financial
Statements1 Jan 2013
11 BFRS 11 Joint Arrangements 1 Jan 201312 BFRS 12 Disclosure of Interests in Other
Entities13 BFRS 13 Fair Value Measurement 1 Jan 2013
IFRS for SMEs BFRS for SMEs (Small Medium Size Entities)
1 Jan 2013
Appendix I (B) - Adoption Status of International Financial Reporting Appendix I (B) - Adoption Status of International Financial Reporting
Standards (IFRS) by ICAB as Bangladesh Financial Reporting Standards (BFRS)Standards (IFRS) by ICAB as Bangladesh Financial Reporting Standards (BFRS)
55
Sl. # ISA/BSA
ISA/ BSA Title
1 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with ISA
2 210 Agreeing the Terms of Audit Engagements3 220 Quality Control for an Audit of Financial Statements4 230 Audit Documentation
5 240 The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
6 250 Consideration of Laws and Regulations in an Audit of Financial Statements
7 260 Communication with Those Charged with Governance8 265 Communicating Deficiencies in Internal Control to Those
Charged with Governance and Management9 300 Planning an Audit of Financial Statements10 315 Identifying & Assessing Risks of Material Misstatement -
Understanding Entity and its Environment11 320 Materiality in Planning and Performing an Audit12 330 The Auditor’s Responses to Assessed Risks13 402 Audit Considerations Relating to Entities Using Service
Organization
Appendix- II (A) - Adoption Status of International Standards on Auditing Appendix- II (A) - Adoption Status of International Standards on Auditing
(ISA) by ICAB as Bangladesh Standards on Auditing (BSA)(ISA) by ICAB as Bangladesh Standards on Auditing (BSA)
56
Sl. # ISA/BSA
ISA/ BSA Title
14 450 Evaluation of Misstatements Identified during the Audit
15 500 Audit Evidence16 501 Audit Evidence—Specific Considerations for Selected
Items17 505 External Confirmations18 510 Initial Audit Engagements—Opening Balances19 520 Analytical Procedures20 530 Audit Sampling21 540 Auditing Accounting Estimates, Including Fair Value
Accounting Estimates, and Related Disclosures
22 550 Related Parties23 560 Subsequent Events24 570 Going Concern25 580 Written Representations26 600 Special Considerations—Audits of Group FS (including
Work of Component Auditors)27 610 Using the Work of Internal Auditors
28 620 Using the Work of an Auditor’s Expert
29 700 Forming an Opinion and Reporting on Financial Statements
57
Sl. # ISA/BSA
ISA/ BSA Title
30 705 Modifications to the Opinion in the Independent Auditor’s Report
31 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’s Report
32 710 Comparative Information—Corresponding Figures and Comparative FS
33 720 The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited FS
34 800 Special Considerations—Audits of FS Prepared in Accordance with Special Purpose Frameworks
35 805 Special Considerations –Audits of Single FS and Specific Elements, Accounts or Items of FS
36 810 Engagements to Report on Summary Financial Statements Total BSA / Code of Ethics /BSQC 1 /Framework
58
Sl. # IAPS/
BAPS
BAPS Title
1 1000 Inter-Bank Confirmation Procedures
2 1004 The Relationship Between Banking Supervisors
and Banks’ External Auditors
3 1005 The Special Considerations in the Audit of Small
Entities(withdrawn in 2010)
4 1006 Audits of the Financial Statements of the Banks
5 1010 The Consideration of Environmental Matters in
Audit of Financial Statements
6 1012 Auditing Derivative Financial Statements
7 1013 Electronic Commerce-Effect on the Audit of
Financial Statements
8 1014 Reporting by Auditors on Compliance with IFRS
(withdrawn in 2010)
Appendix II (B) - Adoption Status of International Auditing Practice Statements Appendix II (B) - Adoption Status of International Auditing Practice Statements
(IAP by ICAB as Bangladesh Auditing Practice Statements (BAPS)(IAP by ICAB as Bangladesh Auditing Practice Statements (BAPS)
59
Cash Basis IPSAS—Financial Reporting Under the Cash Basis of
Accounting
IPSAS 1—Presentation of Financial Statements
IPSAS 2—Cash Flow Statements
IPSAS 3—Accounting Policies, Changes in Accounting Estimates
and Errors
IPSAS 4—The Effects of Changes in Foreign Exchange Rates
IPSAS 5—Borrowing Costs
IPSAS 6—Consolidated and Separate Financial Statements
IPSAS 7—Investments in Associates
IPSAS 8—Interests in Joint Ventures
IPSAS 9—Revenue from Exchange Transactions
IPSAS 10—Financial Reporting in Hyperinflationary Economies
IPSAS 11—Construction Contracts
IPSAS 12—Inventories
IPSAS 13—Leases
IPSAS 14—Events after the Reporting Date
IPSAS 15—Financial Instruments: Disclosure and Presentation
IPSAS 16—Investment Property
Appendix III - International Public Sector Accounting Standards (IPSAS) 2011 Appendix III - International Public Sector Accounting Standards (IPSAS) 2011
(Not Adopted by ICAB)(Not Adopted by ICAB)
60
Cash Basis IPSAS—Financial Reporting Under the Cash Basis of
Accounting
IPSAS 17—Property, Plant, and Equipment
IPSAS 18—Segment Reporting
IPSAS 19—Provisions, Contingent Liabilities and Contingent Assets
IPSAS 20—Related Party Disclosures
IPSAS 21—Impairment of Non-Cash-Generating Assets
IPSAS 22—Disclosure of Financial Information about the General
Government Sector
IPSAS 23—Revenue from Non-Exchange Transactions (Taxes and
Transfers)
IPSAS 24—Presentation of Budget Information in Financial Statements
IPSAS 25—Employee Benefits
IPSAS 26—Impairment of Cash-Generating Assets
IPSAS 27—Agriculture
IPSAS 28—Financial Instruments: Presentation
IPSAS 29—Financial Instruments: Recognition and Measurement
IPSAS 30—Financial Instruments: Disclosures
IPSAS 31—Intangible Assets
IPSAS 32—Service Concession Arrangements - Guarantor
Appendix III - International Public Sector Accounting Standards (IPSAS) 2011 Appendix III - International Public Sector Accounting Standards (IPSAS) 2011
(Not Adopted by ICAB)(Not Adopted by ICAB)
61
ISSAI 1000 – General Introduction to the INTOSAI Financial Audit
Guidelines
ISSAI 1003 – Glossary of Terms to the INTOSAI Financial Audit
Guidelines
ISSAI 1200 – Overall Objectives of the Independent Auditor and
Conduct of Audit in Accordance with ISA
ISSAI 1210 – Agreeing the Terms of Audit Engagements
ISSAI 1220 – Quality Control for an Audit of Financial Statements
ISSAI 1230 – Audit Documentation
ISSAI 1240 – The Auditor’s Responsibilities Relating to Fraud in an
Audit of Financial Statements
ISSAI 1250 – Consideration of Laws and Regulations in an Audit of
Financial Statements
ISSAI 1260 – Communication with Those Charged with Governance
ISSAI 1265 – Communicating Deficiencies in Internal Control to Those
with Governance and Management
ISSAI 1300 – Planning an Audit of Financial Statements
ISSAI 1315 – Identifying and Assessing Risks of Material
Misstatements by Understanding Entity Environment
Appendix IV- INTOSAI International Standards of Supreme Audit Institutions Appendix IV- INTOSAI International Standards of Supreme Audit Institutions
(ISSAI). Not Adopted by ICAB/ Implemented by OCAG?(ISSAI). Not Adopted by ICAB/ Implemented by OCAG?
62
ISSAI 1000 – General Introduction to the INTOSAI Financial Audit
Guidelines
ISSAI 1320 – Materiality in Planning and Performing an Audit
ISSAI 1330 – The Auditor’s Responses to Assessed Risks
ISSAI 1402 – Audit Considerations Relating to an Entity Using a
Service Organization
ISSAI 1450 – Evaluation of Misstatements Identified during the
Audit
ISSAI 1500 – Audit Evidence
ISSAI 1501 – Audit Evidence – Specific Considerations for Selected
Items
ISSAI 1505 – External Confirmations
ISSAI 1510 – Initial Audit Engagements – Opening Balances
ISSAI 1520 – Analytical Procedures
ISSAI 1530 – Audit Sampling
ISSAI 1540 – Auditing Accounting Estimates, Including Fair Value
Accounting Estimates and Related Disclosures
ISSAI 1550 – Related Parties
ISSAI 1560 – Subsequent Events
ISSAI 1570 – Going Concern
ISSAI 1580 – Written Representations
Appendix IV- INTOSAI International Standards of Supreme Audit Institutions Appendix IV- INTOSAI International Standards of Supreme Audit Institutions
(ISSAI). Not Adopted by ICAB/ Implemented by OCAG?(ISSAI). Not Adopted by ICAB/ Implemented by OCAG?
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ISSAI 1000 – General Introduction to the INTOSAI Financial Audit
Guidelines
ISSAI 1600 – Special Considerations – Audits of Group Financial
Statements (Incl. Work of Component Auditors)
ISSAI 1610 – Using the Work of Internal Auditors
ISSAI 1620 – Using the Work of an Auditor’s Expert
ISSAI 1700 – Forming an Opinion and Reporting on Financial
Statements
ISSAI 1705 – Modifications to the Opinion in the Independent
Auditor’s Report
ISSAI 1706 – Emphasis of Matter Paragraphs and Other Matter
Paragraphs in Independent Auditor’s Report
ISSAI 1710 – Comparative Information – Corresponding Figures
and Comparative Financial Statements
ISSAI 1720 – The Auditor’s Responsibilities Relating to Other
Information in Documents Containing Audited FS
ISSAI 1800 – Special Considerations – Audits of FS Prepared in
Accordance with Special Purpose Frameworks
ISSAI 1805 – Special Considerations – Audits of Single FSt and
Specific Elements, Accounts or Items of FS
ISSAI 1570 – Going Concern
Appendix IV- INTOSAI International Standards of Supreme Audit Institutions Appendix IV- INTOSAI International Standards of Supreme Audit Institutions
(ISSAI). Not Adopted by ICAB/ Implemented by OCAG?(ISSAI). Not Adopted by ICAB/ Implemented by OCAG?
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