The Financial Reporting Act 2015 (known as FRA 2015 ) is an act of the Bangladesh National Assembly which has passed the act on September 6, 2015 in order to make sure the accountability and transparency in the financial reporting procedures of the country. On September 9, 2015 the act is officially published as the gazette of Government of Bangladesh.
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Accountancy in Bangladesh
The Institute of Chartered Accountants of Bangladesh (ICAB) is the only governing body for regulating the country's chartered accountants, and the Institute of Cost and Management Accountants of Bangladesh (ICMAB) is for the cost and management accountants. In order to monitor the ICAB and ICMAB, the Financial Reporting Council (FRC) of 12 members, a body formed under the act, would be formed to ensure accountability and performance among the chartered accountants and management accountants in Bangladesh. Moreover, the council will be a statutory body with expert members from various government bodies, institutions and professional groups.
Functional objectives
The FRC will be the watchdog body in order to monitor the function of auditors and ensure transparency and accountability in accounting and auditing of financial organisations, including various government, autonomous and non-government institutions.
Implications for auditors in Bangladesh
All auditors and audit firms must register with the Financial Reporting Council. Without registration, no auditor and audit firm will be able to provide auditing services to any entity related with public interest. For registration, the auditor or audit firm needs to apply to the FRC. The FRC will review the application, and will provide the registration pursuant to the rules and guidelines. If any auditor or any audit firm violates any provision of the act or any of its rules and guidelines, the Financial Reporting Council may cancel or suspend the registration and may fine as well.