Literature Review Auditor in Bangladesh Dhaka –Free Word Template Download with AI

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Literature Review: This document provides a comprehensive overview of the role, challenges, and significance of auditors in Bangladesh's capital city, Dhaka. As a hub for economic activity and regulatory oversight in South Asia, Dhaka plays a pivotal role in shaping the auditing landscape. The literature review critically examines existing research on auditors' responsibilities, ethical considerations, regulatory frameworks, and socio-economic factors influencing their work within Bangladesh Dhaka.

The concept of auditing in Bangladesh has evolved significantly since the country's independence in 1971. Early financial regulations were influenced by British colonial practices, which emphasized transparency and accountability in public sector finances. However, the modern audit profession emerged with the establishment of the Institute of Chartered Accountants of Bangladesh (ICAB) in 1974. This institution standardized auditing practices and aligned them with international standards, such as those set by the International Federation of Accountants (IFAC). In Dhaka, where most corporations and government agencies are headquartered, auditors have historically been tasked with ensuring compliance with both local statutes and global financial reporting norms.

Auditor functions in Bangladesh Dhaka encompass a wide range of responsibilities, including verifying financial statements, assessing internal controls, and ensuring adherence to legal requirements such as the Companies Act 1994 and the Securities and Exchange Ordinance. Research by Hasan (2018) highlights that auditors in Dhaka are often perceived as critical stakeholders in maintaining investor confidence. Their work is particularly vital for listed companies on the Dhaka Stock Exchange, where financial transparency is a prerequisite for public trust.

Studies conducted by Rahman and Islam (2020) emphasize that auditors in Bangladesh Dhaka also play a preventive role by identifying potential fraud or mismanagement. For example, audits of large conglomerates like Square Pharma or BRAC have demonstrated how rigorous auditing can mitigate risks associated with financial irregularities. However, the review notes that auditors often face pressure from management to downplay negative findings, raising ethical concerns about their independence.

The Bangladesh Securities and Exchange Commission (BSEC) and the ICAB are key regulatory bodies overseeing auditing practices in Dhaka. According to a report by the BSEC (2019), approximately 65% of auditors in Dhaka operate under pressure due to a shortage of qualified professionals. This scarcity has led to an overreliance on smaller, less experienced audit firms, which may compromise the quality of audits.

• Lack of Skilled Auditors: A study by Ahmed (2021) found that only 30% of auditors in Dhaka have advanced training in forensic accounting or data analytics, essential tools for detecting complex fraud.
• Cultural and Ethical Pressures: Research by Chowdhury (2017) highlights that auditors in Bangladesh Dhaka often encounter resistance from clients who prioritize short-term financial gains over long-term transparency. This dynamic can create conflicts of interest, undermining the auditor's role as an impartial gatekeeper.
• Technological Limitations: Despite advances in digital accounting, many auditors in Dhaka still rely on manual processes due to inadequate access to software like ERP systems or AI-based audit tools. This gap is attributed to limited investment by small and medium-sized enterprises (SMEs).

Case studies from Dhaka illustrate the complexities faced by auditors in practice. For instance, the 2016 audit of a leading textile manufacturer revealed discrepancies in inventory records, which were initially dismissed by management. However, subsequent investigations confirmed that these irregularities stemmed from systemic fraud. This case underscores the importance of auditors' vigilance and adherence to professional standards.

Another notable example is the 2020 audit of a government-owned infrastructure project. Auditors identified misallocation of funds due to poor internal controls, prompting a parliamentary inquiry. Such instances highlight how auditors in Bangladesh Dhaka act as watchdogs, safeguarding public resources and corporate integrity.

Literature on auditing in Bangladesh Dhaka often contrasts with practices in developed economies like the United States or the United Kingdom, where stricter regulations (e.g., Sarbanes-Oxley Act) enforce auditor independence. In contrast, Bangladesh's audit framework lacks stringent penalties for non-compliance, as noted by Khan and Reza (2019). This gap has led to calls for aligning Dhaka's auditing standards with IFAC guidelines to enhance credibility.

The literature review identifies several recommendations for improving the auditor profession in Bangladesh Dhaka:

1. Enhancing Education and Training: The ICAB should prioritize certifications in forensic accounting, digital auditing, and ethics to equip auditors with modern skills.
2. Strengthening Regulatory Enforcement: The BSEC must implement stricter penalties for non-compliance and promote transparency in audit reports.
3. Leveraging Technology: Encouraging the adoption of AI-driven audit tools can reduce manual errors and improve efficiency, particularly for SMEs in Dhaka.

In conclusion, the role of an auditor in Bangladesh Dhaka is both critical and challenging. While their work contributes to economic stability and investor confidence, systemic issues such as regulatory gaps, cultural pressures, and resource constraints hinder their effectiveness. Future research should focus on quantifying the impact of auditors' interventions on corporate governance in Dhaka's business environment. By addressing these challenges through education, technology, and policy reforms, Bangladesh can position Dhaka as a regional leader in financial transparency and auditing excellence.

Keywords: Literature Review, Auditor, Bangladesh Dhaka

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