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 “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 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.
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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
16 2.8.3 Energy and Power 18
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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
23 3.2 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
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Introduction
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.
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Chapter l 1 l
Rahman Rahman Huq Chartered Accountants
Origin of the Report
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.
Duration of internship program
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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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Rahman Rahman Huq Chartered Accountants
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 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 global audit firms.