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Status of Management Audit

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Status of Cost and Management Audit in Bangladesh
It is obviously understood that considering the aforesaid multifarious and multidimensional benefits of cost accounting and management auditing the Government of Bangladesh has made keeping cost books and cost accounts compulsory in the Companies Act, 1994 through section 181. The relevant part may be seen from clause (d) of subsection (1) of section 181.

Section 220: Audit of certain matters by Cost and
Management Accountants:

(1) Where in the opinion of the Government, it is necessary to do in relation to any company required under clause (d) of sub-section (1) of section 181 to include in its books of accounts the particular referred to therein the Government may, by order, direct that an audit of cost accounts of the company shall be conducted in such manner as may be specified in the order by an auditor who shall be a "cost and management accountant" within the meaning of the Cost and Management Accountants Ordinance, 1977 (LIII of 1977).

(2) An audit conducted by an auditor under this section shall be in addition to an audit conducted by an auditor appointed under section 210.

With the advancement of economic development of Bangladesh the Government found in the year of 2001 that it was the proper time to introduce cost audit in Bangladesh and therefore the Government made it compulsory through promulgation of an SRO dated July 8, 2002 the contents of which are produced below:

(a) Cost Audit shall be done in all Nationalized Sugar Industries and in all Public Limited Companies. (b) Such Cost Audit shall be completed from the financial year ended June 30, 2001 and from any other financial year ended after the above date of June 30, 2001. (c) Such Cost Audit shall be done by a Cost and Management Accountant in pursuant to provisions made in the Cost Audit (Report) Rules, 1997.…...

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