Rahman Rahman Huq Chartered Accountants Synopsis The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). The Council of ICAB is the Supreme Authority responsible for the administration and management of the Institute. The Council is composed of 20 (twenty) members elected by the members of the Institute from its two regional constituencies in Bangladesh every three years. The Council is headed by an elected President who is the Chief Executive of the Institute. The President and the Vice-Presidents of the Institute are elected by the Council every year to manage the affairs of the Institute. The Council is assisted by various Standing and Other (non-standing) Committees. For the purpose of assisting the Council in matters concerning its functions, the Council is empowered to constitute Regional Committees. At the moment there are two Regional Committees in Dhaka and Chittagong and two Chapters - UK Chapter and North American Chapter. As on 01 July 2009, the Institute had 969 members (including 26 females) of whom 824 were resident in Bangladesh and 145 were resident abroad. Associate and Fellow memberships are offered by the Institute. Persons passing the qualifying Final Examination of the Institute are offered Associateship (ACA) while fellowship (FCA) is offered to members having at least five years post-associateship experience and fulfilling relevant other requirements. Out of 969 members, 305 are practicing as public accountants and the rest 664 are serving in various key positions in public and private organizations-both at home and abroad. As on the same date, there were 2719 articled students (including 115 females). RRH is one of the most prominent firms in this sector. RRH, besides establishing an extensive accounting, auditing and tax practice, has extensive experience in multidisciplinary consulting assignments carried out solely, or in a consortium with international firms like KPMG, Arthur D. Little, Price Waterhouse, Deloittes etc. many of which were in the areas of banking, chemicals, food and agriculture, hydrocarbon, transportation and “Cutting through complexity” 1 | Page
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Rahman Rahman Huq Chartered Accountants
Synopsis
The Institute of Chartered Accountants of Bangladesh (ICAB) is the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973 (Presidential Order No. 2 of 1973). The Council of ICAB is the Supreme Authority responsible for the administration and management of the Institute. The Council is composed of 20 (twenty) members elected by the members of the Institute from its two regional constituencies in Bangladesh every three years. The Council is headed by an elected President who is the Chief Executive of the Institute. The President and the Vice-Presidents of the Institute are elected by the Council every year to manage the affairs of the Institute. The Council is assisted by various Standing and Other (non-standing) Committees. For the purpose of assisting the Council in matters concerning its functions, the Council is empowered to constitute Regional Committees. At the moment there are two Regional Committees in Dhaka and Chittagong and two Chapters - UK Chapter and North American Chapter.
As on 01 July 2009, the Institute had 969 members (including 26 females) of whom 824 were resident in Bangladesh and 145 were resident abroad. Associate and Fellow memberships are offered by the Institute. Persons passing the qualifying Final Examination of the Institute are offered Associateship (ACA) while fellowship (FCA) is offered to members having at least five years post-associateship experience and fulfilling relevant other requirements. Out of 969 members, 305 are practicing as public accountants and the rest 664 are serving in various key positions in public and private organizations-both at home and abroad. As on the same date, there were 2719 articled students (including 115 females).
RRH is one of the most prominent firms in this sector. RRH, besides establishing an extensive accounting, auditing and tax practice, has extensive experience in multidisciplinary consulting assignments carried out solely, or in a consortium with international firms like KPMG, Arthur D. Little, Price Waterhouse, Deloittes etc. many of which were in the areas of banking, chemicals, food and agriculture, hydrocarbon, transportation and “Cutting through complexity” 1 | P a g e
Rahman Rahman Huq Chartered Accountants
communication. A distinguishing feature of RRH has been its catalytic role in bringing under one umbrella the qualifications and experiences of top grade professionals available in the country.
Table of content
SI.
No.
Topic Page
No.
Chapter-One: Introduction 06
1 1.1 Origin of the Report 07
2 Scope of the report 07
4 1.4 Limitations 08
5 1.5 Definition 09
Chapter Two: Overview of Rahman Rahman Huq KPMG
6 2.1 Introduction about RRH KPMG 10
7 2.2 Recent information 11
8 2.3 Corporate Profile of the firm 11
9 2.4. Corporate Vision & Mission: 12
10 2.5 Objective 12
11 2.6 Organization structure: 13
12 2.7 Core value of the organization 14
13 2.8 Clients of the RRH KPMG 15
14 2.8.1 Manufacturing Company 15
15 2.8.2 Bank and Financial institution 17
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16 2.8.3 Energy and Power 18
17 2.9 Service provided to their clients 19
18 2.9.1 Audit 19
19 2.9.2 Tax and Advisory 19
20 2.9.3 Financial Advisory 19
21 2.9.4 Risk and advisory Service 19
Chapter 3 auditing of cash incentive
22 3.1 Introduction 20
233.2 Sectors of Auditing of Cash Incentives
20
24 3.3 Clients of RRH for cash incentives 20
25 3.4 Procedure of auditing of cash incentive (viyellatex ltd) 21
26 3.4.1 Collection of application 21
27 3.4.2 Collection of PRC 22
28 3.4.3 Checking application with the source documents. 23
29 3.4.4 Calculating the total claim amount 24
30 3.4.5 Preparation of Certificates 26
31 3.4.6 Preparation of Detail of Audit Case 27
Chapter 4 Conclusion and Reference
34Conclusion
28
Introduction
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Chapter l 1 l
Rahman Rahman Huq Chartered Accountants
Rahman Rahman Huq, with six active partners, is one of the leading
accounting firms in Bangladesh and the only such firm in the country where all
partners are members of The Institute of Chartered Accountants in England
and Wales. The partners are supported by nearly 200 trained and experienced
professionals including chartered accountants, MBAs, economists and MIS
specialists, including software engineers. The firm operates from two offices in
Bangladesh: Dhaka and Chittagong.
RRH has a large number of clients. It has served a large number of local and
multinational clients in Bangladesh. Beside this it has also full fill foreign
assignment in different countries throughout the world considering kpmg
permission
its main objective is to Uphold professional integrity and honesty of its
members Advise government on taxation, business law and related matters
,Maintain superiority in respect of professional competence, Meet the growing
demand for qualified Chartered Accountants in Bangladesh, Create the
environment of mutual cooperation ,Carry out continuous research and make
in-depth study of related subjects and apply ,findings of research and study in
the fields of accountancy profession.
Origin of the Report
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University of Dhaka is the most popular and well known university in
Bangladesh. It acquires and holds the first position of the university brand in
Bangladesh according to brand zeal consultancy firm. It provides many
courses both in graduate and post graduate program. Bachelor of Business
Administration (BBA) is one of them. In the BBA program internship activities is
compulsory for the students of Faculty of Business Administration. This
internship program for BBA student is for 45 official days. However I was
assigned at HSBC cash incentive audit segment. During this period I worked at
HSBC head office (Anchor Tower), Pantho Path, Dhaka to complete the
program. After completing the practical work I prepare the report.
Rahman Rahman Huq is one of the leading auditing firms in Bangladesh which
is also the member firm of KPMG, recruits me and assigned to the cash
incentive sector. Under the supervision of two senior audit supervisor the
report is made. The cash incentive sector is the most crucial audit
engagement of RRH, because on behalf of Bangladesh Bank RRH is auditing
total acquired by the bank as well as exporting organization(here Viyellatex in
RMG sector and Pran foods ltd in food and agro sector). I have prepared this
report on this topic by counseling with my honorable course supervisor and
the staff of the RRH.
Scope of the Report:
This report covers the details of cash incentive audit workflows in
multinational bank. This report consists of my observations and on the job
experiences during the internship period in the cash incentive section of the
HSBC bank operated by the RRH. This report emphasizes on the sequential
activities involved and used by RRH for auditing of cash incentive.
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Limitation of the Study:
• All the audit activities are not observed.
• All the concerned personnel of the firm are not been communicate.
• The report covers the audit activities of HSBC bank (head office) Dhaka
only.
• The report covers only the cash incentive audit of the bank, not the
group audit, interim audit.
• The duration of the internee at the audit firm was in dull season.
• Some information was withheld to retain the confidentiality of the bank
as well as RRH.
• PRC, Application, Bangladesh Bank circulars, file of Viyellatex and Pran
foods ltd- these documents are failed to enclose with this report due to
the terms and condition of the RRH.
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Duration of internship program
I have been employed as a junior auditor in Rahman Rahman Huq CA firm in
order to complete my internship program held by “University of Dhaka” (BBA,
Management Studies) from 29.09.2010 to 07.11.2010.
Definitions
PRC : Proceed Realization Certificate.
BB : Bangladesh Bank.
BBC : Back to Back L/C.
L/C : Letter of Credit.
BTMA : Bangladesh Textile Mills Association
BGMEA : Bangladesh Garments Manufacturing and Exporters
Association
NOC : No Objection Certificate.
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2.1. Introduction
In 1962, when Price Waterhouse Peat & Co. left Pakistan, one of its former
partners joined forces with two other chartered accountants to form Rahman
Rahman Huq. Over the years, this firm has built a formidable reputation for
providing audit, tax, advisory, and other business solutions to national and
multinational businesses, public sector corporations and development
organizations in Bangladesh (and both wings of Pakistan until the emergence
of Bangladesh in 1971).
Rahman Rahman Huq, with six active partners, is one of the leading
accounting firms in Bangladesh and the only such firm in the country where all
partners are members of The Institute of Chartered Accountants in England
and Wales. The partners are supported by nearly 200 trained and experienced
professionals including chartered accountants, MBAs, economists and MIS
specialists, including software engineers. The firm operates from two offices in
Bangladesh: Dhaka and Chittagong.
RRH, besides establishing an extensive accounting, auditing and tax practice,
has extensive experience in multidisciplinary consulting assignments carried
out solely, or in a consortium with international firms like KPMG, Arthur D.
Little, Price Waterhouse, Deloittes etc. many of which were in the areas of
banking, chemicals, food and agriculture, hydrocarbon, transportation and
“Cutting through complexity” 8 | P a g e
Chapter l 2 l overview of Rahman Rahman Huq
Rahman Rahman Huq Chartered Accountants
communication. A distinguishing feature of RRH has been its catalytic role in
bringing under one umbrella the qualifications and experiences of top grade
professionals available in the country.
2.2. Recent Information:
At present RRH is the member firm in Bangladesh of KPMG International
Cooperative, one of the four largest international accounting firms in the
world. They are the only member firm in Bangladesh of any of the four major