Dr. Anwar Hossain Chowdhury & Abdul Aziz
Talk frequently centres on massive infrastructure projects, record-breaking remittances, and the powerful, ready-made garments industry making a thriving economy, which is steadily moving towards its goal of becoming a stronger economy, leading to a developed nation by 2041. However, auditing is a more subdued and underappreciated field that serves as the cornerstone of sustainable growth. An organization should embrace a strong audit function as a strategic asset rather than as a regulatory burden. Accepting this reality is essential for Bangladesh to safeguard its economic future.
Fundamentally, assurance, insight, and integrity are the three essential advantages that auditing offers businesses. Assurance provides the public, creditors, and investors with the assurance that there are no significant misstatements in financial statements, whether due to fraud or error. In the business world, this confidence is the currency of trust. Because investors demand lower returns and perceive less risk, it lowers the cost of capital. It facilitates access to loans and attracts foreign direct investment, the lifeblood of an emerging economy.
Insight is beyond certainty. Checking for compliance is only one aspect of modern auditing. Internal audits give businesses a critical, unbiased assessment of their governance, risk management, and operations procedures. Auditors are able to find wasteful practices, identify inefficiencies, and suggest changes that will directly increase operational resilience and profitability. This internal diagnostic is a potent tool for performance optimization and gaining a competitive edge in a cutthroat global market.
Lastly, and perhaps most importantly for Bangladesh, auditing promotes integrity. It establishes a system of checks and balances that discourages wrongdoing and encourages accountability. A strong audit culture demonstrates an organization's dedication to moral behavior in a setting where concerns about transparency and governance can occasionally skew perception. This increases a company's reputational capital, which is frequently its most precious and brittle asset.
Where does Bangladesh stand in terms of utilizing these advantages, then?
The image depicts emerging advancements battling long-standing obstacles. On the plus side, the story is changing. To improve professional standards, the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB) have been working hard. Reporting requirements for listed companies have been tightened by the Securities and Exchange Commission (SEC). Advanced internal audit functions are seen as crucial to corporate governance by an increasing number of progressive companies, especially multinationals and major local conglomerates. They are aware that auditing is their first line of defense in a time of sophisticated financial instruments and complex cyber threats.
For a sizable section of the economy, the situation is less optimistic. Many small and medium-sized businesses (SMEs) and even some large family-owned companies still view auditing as a statutory formality that should be completed at the end of the year with little fuss or expense. Value addition is still less important than tax compliance. Organizations are unable to gain the strategic insights that a truly proactive audit can offer because of this mentality, which reduces the auditor to a necessary evil.
In addition, there are challenges facing the profession itself. Although many auditors adhere to the highest ethical standards, there are still issues with auditor independence, as close client relationships can occasionally erode objectivity. Access to high-quality audit services for smaller businesses is further restricted by a lack of highly qualified professionals, particularly outside of major cities.
Bangladesh needs to change its perspective on auditing from one of expense to investment if it is to become a truly developed economic force. This calls for a multifaceted approach. Regulators must maintain their strict adherence to standards and defense of auditor independence. Boards of directors and company executives need to be informed about the internal audit's strategic and profit-boosting benefits. To develop a new generation of auditors with expertise in data analytics and forensic accounting, academic institutions and professional associations must work together.
The road to 2041 is paved with trust and openness in addition to physical assets. A clean audit opinion will become their passport as Bangladeshi businesses look to list on foreign exchanges, establish international alliances, and establish dependable brands. It is the invisible barrier that keeps management informed, safeguards shareholders, and reassures the world that Bangladesh is a serious business nation. As a result, the audit is a declaration of credibility and much more than a financial statement appendix. Credibility is crucial for a developing country.
Dr. Anwar Hossain Chowdhury is an Assistant Professor at the Bangladesh institute of Governance and management (BIGM). He can be reached at anwar.hossain@bigm.edu.bd, and Tanvir Aziz is an SAS Superintendent at the Commercial Audit Directorate. He can be reached at tanviraziz6677@gmail.com.
