REPORT on The development of Professional Accounting in Bangladesh and Role of ICAB & ICMAB ACC-304 (Managerial Accounting) Section- “B”
[Confidential]
A Report on The development of Professional Accounting in Bangladesh and Role of ICAB & ICMAB Date: 16th March, 2016
[All rights reserved. So, photocopying, rearranging, reproducing or, transmitting in any form or by any means strongly prohibited. No one is allowed to use this report paper without prior permission from Group-2 (Soldiers of Victory), Course: ACC-304 (Managerial Accounting) Section # B, IUBAT]
For farther information please Contact: MD Yahia Raja Cell no: 01673277238 Email:
[email protected] Re-presenter of Group-2 (Soldiers of Victory) Course: ACC-304 (Managerial Accounting) Section # B, IUBAT
Table Of Content Content Parts
Content Title/Area
Page Numb er
Report Formal Part Part: 1
Letter of Transmittal
01
Supervisor Declaration Student Declaration Acknowledgement Executive Summary Report Introductory Pars Introduction to the report Brief discussion about ICAB, ICMAB and CA Firm Objective of the report Scope of the Report Part: 3 Organizational Parts Background of ICAB ICAB Mission ICAB Vision Role of ICAB Linkage to International bodies Corporate information of ICAB Background of AYUB & MAHMOOD AYUB & MAHMOOD Mission and Vision Corporate Information of AYUB & MAHMOOD Background of ICMAB Mission of ICMAB Vision of ICMAB Service of ICMAB Management of ICMAB Objective of ICMAB Corporate Information of ICMAB Part: 4 Literature Review Auditing Taxation
02 03 04 05 07 08 10 11 12 12 13 14 15 18 19 19 20 21 24 25 25 26 26 27 28 28
Managerial Accounting Chartered Accountancy Part: 5 Topic Part Why This Topic Benefits of being CA Part: 6 Actual task part Group Activities Task Deviation Learning’s Part: 7 Research Part Project Time-line Gant Chart Budgeted Information Research Instrument Data Sources Data Analysis Benefits of Being CA & FCMA Career Prospect About Joining CA
29 29
30 30 32 32 33 34 34 35 35 36 36 37 38 40
Letter Of transmittal To Prof. Dr. M Alimullah Miyan Vice Chancellor & Chair Collage of Business Administration IUBAT- International University of Business Agriculture and technology
Subject: Letter of Transmittal. Dear Sir, It is our immense pleasure and honor to let you know that we have completed our report and want to submit the project report on ‘‘The development of Professional Accounting and Role of ICAB & ICMAB” which is a requirement of course Managerial Accounting (ACC-304) and also for the Program BBA. We made endeavor to prepare this report and tried our level best to accumulate relevant and insightful information. It is a great experience for us to work with this topic. We have tried to make the report vivid and comprehensive within the scheduled time and limited resources. It is nothing but a very little overview of us on “The role of ICAB & ICMAB in the Development of Professional Accounting in Bangladesh. Throughout the process we had an interesting experience of dealing with thing we merely learn without any first-hand experience. We shall be highly obliged if you clarify any matter or any further inquiry regarding this report
Thinking you,
Sincerely Page 1 of 75
The Group-02 “Soldiers of Victory”
Supervisor Declaration This is to certify that group members of group number 02 students of BBA program of our university successfully completed the project report on ‘‘The development of Professional Accounting and Role of ICAB & ICMAB” was under my supervision and guidance . During the period they visit ICAB Bhabon, AYUB AND MAHMOOD and ICMAB Bhabon. This report is submitted for fulfillment of managerial accounting. No part of this report has been submitted for any other degree, diploma or fellowship and the work has not published in any paper or magazine. During the period they were sincere proactive and attentive their work. I wish him every success in his life.
---------------------Arif Ahsan Faculty, College of Business Administration IUBAT
Page 2 of 75
Student Declaration We are the student of Bachelor of Business Administration (BBA), under the College of Business Administration (CBA) at IUBAT—International University of Business Agriculture and Technology declaring that this report on the topic of “The development of Professional Accounting and Role of ICAB & ICMAB” have only been prepared for the fulfillment of the course of ACC-304 managerial Accounting as the partial requirement of the Bachelor of Business Administration (BBA). We hereby declare that the project work entitled ‘The development of Professional Accounting and Role of ICAB & ICMAB” submitted to the Course instructor Prof. Dr. m Alimulla Miyan, is a record of an original work done by a Group of 5 Member named “Soldiers of Victory” under the guidance of Mr. Arif Ahsan, Course Instructor of Managerial Accounting (ACC-304) and faculty of College of Business Administration. This project work is submitted in the partial fulfillment of the requirements for the Course “Managerial Accounting (ACC-304)”. The results embodied in this report have not been submitted to any other Group, University or Institute for the award of any degree or diploma.
S/
Name
ID Number
01
Md. Yahia Raja
13202080
02
Marium Akter Nahida
13202019
03
Israt Jahan Chayan
13202104
04
Shakhawat Hossain
05
Mamunur Rashid
L
Page 3 of 75
Acknowledgement
At first we would like to express our gratefulness to the almighty of Allah for being strength to us preparing the report successively. We would like to express our gratitude to Prof. Dr. M Alimullah Miyan, Founder & Vice – Chancellor of IUBAT for his encouragement about Project work of every CBA student.
Our special thanks to our supervisor for providing us the Report topic, valuable suggestions and guidelines to make this report from the very beginning to the end with a friendly behavior. We are even thankful to all the respected members, employees, staffs those organizations and“AYUB & MAHMOOD” the CA firm also the students group who supported us in preparing the report.
At last but not the least with utmost sincerely; we would like to thank the entire wonderful good number of learned/experience persons who have made significant contribution in preparing this report. Their advices and suggestions helped us a lot. Also our each of the peers with those peoples we are worked. It is them who made it easy for us to understand the real straggle of life. Without their help and continuous guidance this report might have not been possible. Our each members of this group have been a source of strength and confidence for each.
Page 4 of 75
Executive Summary
Success is the catchword these days, the more victorious; more popularity one gains among its audience. People these days are more excited about earning fame and glory as soon as possible. Also, with the globalization of the world, the need of the skilled people is increasing. The route to success is getting shorter with the opening up of varied prospects and fields, one can adopt as his career. The students are therefore, grabbing these opportunities and are very keen to structure their career according to the need of the hour. To make students specialize on their respective subjects or to have an early work start, many institutes and colleges are coming up with professional courses in various fields. The idea and the approach for a stable career among students have changed to a great extent. Earlier, students used to consume five to seven years of their life doing graduation, post-graduation and then doctorate or some other degrees. This used to be a very hectic procedure with the students only mugging up for half of their lives, without actual implementation of the same. Though this is great and still followed by people who are keen to do indepth studies in their subjects, but students who want to start their professional career with in three or four years, or even less than that, after completing senior secondary education, go for professional courses. In the twenty first century the professional specialized skills are attracting the in all the way in this competitive business world. Professional courses are the education or curriculum designed, keeping in mind the need of a particular industry, courses like this are very focused and future oriented. Professional courses have gained importance in the recent years, with the graph going high for job opportunities in the respective sectors. A professional course helps students to get trained and aware of the latest trends in the market and the respective work environments. These courses can be in the form of degree or diploma certificates depending upon their curriculum and the time period. Two of the important professional course, which is gaining popularity among students and has become one of the most prestigious professional Page 5 of 75
courses, is Charted Accountancy (CA) & the Cost and Management Accounting (CMA) or careers related to the same.
Page 6 of 75
Chartered Accountancy (CA) and Cost and management Accounting (CMA) has emerged as a unique Profession of paramount importance and is now discussed at various economic seminars, capital markets, investments and such other forums. To cope with the increasing demand in the field of economy, innovative financial instruments are being constantly introduced and the profession world-wide, apart from accounting, taxation, and financial management and other financial consultancy is in the forefront in launching these financial products. In today's free globalized world, Chartered Accountants and Cost and management Accounting (CMA) are in public practice, in all sizes of accounting firm from sole practitioners to affiliates of large international firms. They are also employed in industries, finance and commerce playing a wide variety of financial, management and senior policy making roles both at home and abroad. The members of the Institute of Chartered Accountants of Bangladesh are known as the Chartered Accountants of Bangladesh. The Institute of Charted Accountants of Bangladesh (ICAB), The Institute of Cost and Management Accounts of Bangladesh (ICMAB) are the governing bodies for these courses which offer various govt. qualified courses in the respective fields and completing after which a person become a certified member of these governing bodies. An entrance test is conducted for all these courses, for which the eligibility criterion is a pass out of senior secondary education from a valid board system. Whereas, in case of CA, registration for the exam can be done after passing the 12th examination (HSC). These courses are very tough to crack and a student has to go through various examination stages, trainings, after which he clarifies for the final exam.
Therefore, one can see a secure and safe career, in the subject of his/her choice.
Page 7 of 75
Part: 2 Introductory Parts 2.1 Introduction of the Report As we all know, in this 21st century the professional courses like CA or CMA are attaining to make student more specialized and market attraction in Bangladesh. People these days are more excited about earning fame and glory as soon as possible. Also, with the globalization of the world, the need of the skilled people is increasing. Professional courses have gained importance in the recent years, with the graph going high for job opportunities in the respective sectors. A professional course helps students to get trained and aware of the latest trends in the market and the respective work environments. The Institute of Charted Accountants of Bangladesh (ICAB), The Institute of Cost and Management Accounts of Bangladesh (ICMAB) are the governing bodies for these courses which offer various govt. qualified courses in the respective fields and completing after which a person become a certified member of these governing bodies. In this report we are five member of a group have gone through a wide study and research to know about the CA (chartered Accountant) and CMA (Cost and Management Accountants) course. We have fiscally attended to the Governing Institute of CA which is known as CA Bhabon also the ICMAB Bhabon. We had collected information about CMA, admission process, admission requirement, Curriculum and job market of a CMA. This report provides information obtained through ratio analysis, regarding the admission process, admission requirement, and Curriculum and job market of a CMA. This report will pay particular attention to the earning power, student management, training policy and debt management, and will highlight major career of CA and CMA while offering some explanation for observed changes. The report will comment on the prospects of the company and make recommendations that would help the candidates who are interested to attain those courses and also will give a guide-line to. These observations do have limitations which will be noted. This report will explain what are the requirement, admission process, evaluation criteria and the career opportunities. Page 8 of 75
Page 9 of 75
2.2 Brief Discussion about ICAB, ICMAB and CA firm AYUB & MAHMOOD ICAB –Institute of Chartered Accountants of Bangladesh: 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 Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB. Institute of Chartered Accountants of Bangladesh (ICAB) is a professional organization in Bangladesh supporting over 1,200 chartered accountants & 20,000 students. The Institute provides insight and leadership to the accountancy and finance profession in Bangladesh as well as globally. Their well-qualified members are trained to provide financial knowledge and guidance based on the highest professional, technical and ethical standards. We develop and support individuals, organizations and communities to help them achieve long-term, sustainable economic value. The Institute of Chartered Accountants of Bangladesh (ICAB) provides its members with knowledge and guidance based on the highest professional, ethical and technical standards. They ensure a high level of professional competence among the membership and those aspiring to be members. They influence national policy formulation in areas related to the accountancy profession and contribute, in a significant manner, to the national development efforts.
ICMAB- Institute Bangladesh:
of
Cost
and
Management
Accountants
of
The Institute of Cost and Management Accountants of Bangladesh (ICMAB) at Nilkhet, Dhaka, Bangladesh is the only institution in the country dedicated to Cost and Management Accounting education and research. It is managed as an autonomous professional body under the Ministry of Commerce. Page 10 of 75
Institute of Cost and Management Accountants of Bangladesh (ICMAB) is the national body of the professional Cost and Management Accountants of Bangladesh. Established with the prime objective of promoting and regulating the Cost and Management Accounting profession in the country, the Institute offers education and training to the students interested to pursue career in this field and provides highly recognized CMA degree on fulfillment of requisite qualification. The Institute undertakes research in relevant fields and is the sole authority to issue practicing license to its members. The Institute is managed by a National Council of 16 members. It is a member of the International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA), and South Asian Federation of Accountants (SAFA). ICMAB members are known as CMAs with their designator title ACMA and FCMA. They play leading roles in the accountancy and finance profession in Bangladesh. 30% of members live and work in UK, USA, Canada, Australia and Gulf Countries. ICMAB UK Chapter is a lively forum for members working in the UK.
AYUB & MAHMOOD CA firm: AYUB AND MAHMOOD was formed in February 2005, with a mission to continually add value by helping clients succeed. The firm is in public practice for more than 11 years. The partnership firm was founded with a vision to build an institution which would foster an environment for leadership, continuous growth, learning, and collaborations. Over the past eleven years, the firm has become reputable chartered accountancy firms in Bangladesh. At present, AYUB AND MAHMOOD has ten partners whose expertise in audit, accounting, review, business consulting, business process outsourcing, technology solutions and taxation has established the firm as a multidisciplinary organization. All the partners have many years of experience of working both at home and abroad and with international consultants and organizations operating locally and globally.
Page 11 of 75
2.3 Objectives of the Report: The initial concern of this paper work is to acquire knowledge about the Accounting Development, CA & CMA courses and the Role of ICAB & ICMAB in Bangladesh. I.
Broad objective: The main objective of this report is to get the real concept of admission process, admission requirement, Curriculum and job market of a CA and CMA courses. And preparing this report is for fulfillment of the course Managerial Accounting ACC-304.
II.
Specific objective:
CA course:
Visiting the CA Bhabon and a CA firm Collect the information about CA course Information about requirement and admission process Duration and evaluation process of CA courses Career of CA
CMA course:
Visiting the ICMAB Bhabon. Collect the information about CMA course Information about requirement and admission process Duration and evaluation process of CA course Career of CA
Page 12 of 75
2.4 Scope of the Report To make a successful research report, we have gone through a wide range of study and research to gathered information from different area. As the part of the research we have visited ICAB Bhabon, AYUB AND MAHMOOD CA Firm and ICMAB Bhabon. By physically attaining there we have asked some of the personnel and experienced people on that particular field. We sit on the Information desk and take a short interview of the employees of those institutes. From their different types of sources we get different type information. We also got some information of their annual report and official websites, magazine and also by reading some of the new latter. The scope of this arrangement includes an analysis of the three major institute whore providing professional courses in Bangladesh and one particularly identifying CA firm within the same industry and that could be potential and useful for the increase in our career knowledge. This arrangement also includes an assessment of the current services and a counseling body of those institutes, including firms. The scope includes identification admission process, admission requirement, training criteria and methods also the evaluation of those courses in an effort to determine what an applicant should do. Additionally, the project team will investigate the market place of those degree holders and the career opportunities for them. The scope does not include specific field where the CA or CMA holder will be. It does not include the creating of physical marketing materials, but rather an idea of how things are happening in Development of Professional Accounting courses. Finally, the scope does not include any technical development responsibilities.
Page 13 of 75
Part: 3 Organizational Parts
3.1 Background of ICAB 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 Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB. Institute of Chartered Accountants of Bangladesh (ICAB) is a professional organization in Bangladesh supporting over 1,200 chartered accountants & 20,000 students. The Institute provides insight and leadership to the accountancy and finance profession in Bangladesh as well as globally. Our well qualified members are trained to provide financial knowledge and guidance based on the highest professional, technical and ethical standards. We develop and support individuals, organizations and communities to help them achieve long-term, sustainable economic value. The Institute of Chartered Accountants of Bangladesh (ICAB) provides its members with knowledge and guidance based on the highest professional, ethical and technical standards. We ensure a high level of professional competence among the membership and those aspiring to be members. We influence national policy formulation in areas related to the accountancy profession and contribute, in a significant manner, to the national development efforts.
3.2 ICAB's Mission Statement The mission of ICAB is to provide leadership in the development, enhancement and coordination of the Accountancy Profession in Bangladesh in order to enable the profession to provide services of consistently high quality in the public interest. Page 14 of 75
To provide leadership in the development Enhancement and coordination of the Accountancy profession in Bangladesh
Page 15 of 75
3.3 ICAB's Vision Statement To meet the ever-changing global economic demands dominated by WTO regime, the ICAB is fast becoming a body of professionals whose expert services will be highly sought after To anticipate, meet and exceed the rising expectations of the society To better use of opportunities to face the challenges of fiercer global competition To recognize the changes in economy/ business and recognize the path to success by adopting changes in knowledge management and acquiring skills To recognize its role as a regulatory body to equip its members
(Chartered Accountants) with top-quality education and values To recognize the needs known as world Class Advisors. In order to materialize the above vision, ICAB willGenerate Chartered Accountants of high competence through rigorous but useful education and training, who will be able to meet
the challenges of the new millennium 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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3.4 Role of ICAB The Institute of Chartered Accountants of Bangladesh (ICAB), the National Professional Accounting Body of Bangladesh established under the Bangladesh Chartered Accountants Order 1973(President's Order No. 2 of 1973).The Institute has the following objectives: Regulates the accounting Profession and matters concerned there with in the country Administers its members and students Ensures sound professional ethics and code of conduct by its members Provides specialized Accounting,
training
Auditing,
and
Taxation,
professional
Corporate
expertise
Laws,
in
Management
Consultancy, Information Technology and related subjects Imparts Mandatory continuing Professional Education (CPE) to its members Fosters acceptance and observance of International Accounting Standards(IAS)and International adopt
IAS
&
ISA
in
Standards
Bangladesh
Standards(BAS)and Bangladesh
as
on Auditing (ISA)and
Bangladesh
Standards
Accounting
on Auditing (BSA)
respectively Keeps abreast of latest developments in Accounting techniques, Audit
methodology,
Information
technology,
Management
consultancy and related fields Liaises with regional and international organizations to influence the development of efficient capital markets and international trade in services.
3.5 ICAB's Management 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 Page 17 of 75
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. The day to day running of the Institute is delegated to the Secretariat, headed by the Secretary. The Secretariat is located at Chartered Accountant Bhaban, 100 Kazi Nazrul Islam Avenue, Kawran Bazar, Dhaka1215, and Bangladesh.
3.6 Linkage to International bodies The Institute is a permanent active member of several International and Regional Accounting Bodies like: International Federation of Accountants (IFAC), the apex body of the accounting profession in the world and sole authority for adoption and implementation of Auditing Standards Ethics etc. International Accounting Standards Committee (IASC ),the sole custodian for adoption and implementation of Uniform Accounting Standards for member countries Founder member of South Asian Federation of Accountants (SAFA ), the Regional Accounting Organization of South Asia Confederation of Asian and Pacific Accountants (CAPA) International Accounting Standards Boards(IASB) Moreover, the Institute has to make liaison with various government agencies, local and international Chamber Bodies and business houses.
3.7 Membership As on 20 April 2012, the Institute has 1252 members of whom 766 are fellows and 486 are associates, 1107 members are resident in Bangladesh and 145 are resident abroad. Associate and Fellow memberships are offered by the Institute. Persons passing the qualifying Final Examination Page 18 of 75
of the Institute are offered Associate ship (ACA) while fellowship (FCA) is offered to members having at least five years post-associate ship experience and fulfilling relevant other requirements. Out of 1252 members, 344 are practicing as public accountants and the rest 908 are serving in various key positions in public and private organizations-both at home and abroad.
3.8 FUNCTIONS OF CHARTERED ENGAGED IN PUBLIC PRACTICES:
ACCOUNTANTS
Chartered Accountants engaged in public practice mainly carry out the following functions:
- Perform professional services involving auditing or verification of financial transactions, books, accounts or records, or preparation, verification or certification of financial, accounting and related statements; - Render professional services or assistance in or about matters of principles or details relating to accounting procedures, costing techniques, or recording, presentation or Certification of financial facts or data; - Render professional services or assistance as Management Consultant in or about matters of accounting methods, systems and techniques involving forecasting, in order to assist management in its task of formulating polices programmers, management systems and procedures for maintaining and improving efficiency.
FUNCTIONS OF CHARTERED ACCOUNTANTS EMPLOYED IN TRADE, COMMERCE, INDUSTRY, FINANCE, ETC.: After qualifying, a Chartered Accountant may not necessarily go for public practice either on his/her own or in partnership with other Chartered Accountant(s) but may go for employment in trade, commerce, industry, finance, etc. Many positions of trust and responsibility are open to a Chartered Accountant such as Chief Executive, Member Finance, Finance Director, Company Secretary, Chief Accountant, Finance Controller, Page 19 of 75
Systems Analyst, Internal Auditor, Cost Accountant, etc. in Listed Companies/ Autonomous bodies or in industrial, financial, commercial or educational enterprises. A Chartered Accountant can also serve on the Board of Directors of various organizations, particularly financial institutions. Such positions of responsibility, trust, honor and dignity are offered to Chartered Accountants because of their excellent educational & training background, professional know-how & technical expertise and sound financial knowledge & experience, thus enabling them to contribute towards solving accounting, financial, educational and business problems at top levels.
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3.10 Corporate information of ICAB SL No 1
Name
Designation
Kamrul Abedin FCA
President ICAB
Adeeb Hossain Khan FCA
Vice President (T&R)
Md. Shaifur Rahman Mazumdar FCA
Vice President Mobile: +8801819300404 Email :
[email protected] (T&R)
4
Mahmudul Hasan Khusru FCA
Vice President Mobile: +880-1713030959 Email :
[email protected] (T&R)
5
Akhtar Sohel Kasem FCA
Councilor
Email :
[email protected]
6
Anwaruddin Chowdhury FCA
Councilor
. Email :
[email protected]
7
A. S. M. Nayeem FCA
Councilor
Email :
[email protected]
8
Dr. Jamshed Sanyiath Ahmed Choudhury
Councilor
Email :
[email protected]
9
Muhammed Farhad Hussain, FCA
Councilor
Mobile: +880-1713001022 Email:
[email protected],
1 0
MdHumayun Kabir FCA
Councilor
Email :
[email protected]
1 1
A F Nesaruddin FCA
Councilor
2
3
Contact Information
Mobile: +8801713035677 Email :
[email protected]
Mobile: +880-01911311872 Email:
[email protected]
Mobile:+880-01713042700 Email :
[email protected]
1 Page 21 of 75
2
Muhammad Farooq FCA
Councilor
1 3
Nasir Uddin Ahmed FCA
Councilor
1 4
Dewan Nurul Islam FCA
Councilor
1 5 1 6
Parveen Mahmud FCA
Councilor
Md. Shahadat Hosssain, FCA
Councilor
1 7
Gopal Chandra Ghosh FCA,FCMA
Councilor
1 8
Moddassar Ahmed Siddique FCA
Councilor
1 9
Mostafa Kamal FCA
Councilor
2 0 2 1
Md. Mahamud Hosain FCA A K M Rahmat Ullah FCA
Mobile:+880-01786275546 Email:
[email protected] Mobile:+880 1711-524275, Email :
[email protected] Mobile:+880-01713082883 Email :
[email protected] Mobile:+880-01711548739 Email :
[email protected] Mobile:+880-1715-001622 Email :
[email protected] Mobile:+880-1711541718 Email :
[email protected],
Mobile:+880-1819312320, Email :
[email protected]
Councilor Councilor
Page 22 of 75
Mobile:+880-1919770770 Email :
[email protected] Mobile:+880-1713245858 Email :
[email protected] Mobile:+880-01737688711 Email :
[email protected]
3.11 Background of AYUB AND MAHMOOD AYUB AND MAHMOOD was formed in February 2005, with a mission to continually add value by helping clients succeed. The firm is in public practice for more than 11 years. The partnership firm was founded with a vision to build an institution which would foster an environment for leadership, continuous growth, learning, and collaborations. Over the past eleven years, the firm has become reputable chartered accountancy firms in Bangladesh. At present, AYUB AND MAHMOOD has ten partners whose expertise in audit, accounting, review, business consulting, business process outsourcing, technology solutions and taxation has established the firm as a multidisciplinary organization. All the partners have many years of experience of working both at home and abroad and with international consultants and organizations operating locally and globally.
3.12 AYUB AND MAHMOOD mission Statement They adhere to the strictest principles of client confidentiality. The sensitive and competitive nature of proprietary information-and the maintenance of trust-demands it. They have built our success on such principles. They do our utmost to earn-and keep-client trust.
3.13 AYUB AND MAHMOOD VISION They go beyond the traditional auditor and client relationship by becoming your Trusted Business Advisor.
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3.14 Corporate information of AYUB AND MAHMOOD: SL No 1
Name
Designation
Ayub Azizuddin, FCA
Senior Partner
2
Iftekhar Mahmood, FCA
Senior Partner
3
Md. Moniruzzaman, FCA
Senior Partner
4
Md. Jahidulislam, FCA
Senior Partner
5
A. S. Nayeem, FCA,FCCA
Senior partner
6
MD. jashimuddin
7
AQM kalam, FCA
Partner
8
Md. Reajul Islam, ACA
Partner
9
Md. Mejbahhasan, ACA
Partner
10
A.S.M shultan, ACA
Partner
Partner
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3.15 Background of ICMAB Institute of Cost and Management Accountants of Bangladesh (ICMAB) at Nilkhet, Dhaka, Bangladesh is the only institution in the country dedicated to Cost and Management Accounting education and research. It is managed as an autonomous professional body under the Ministry of Commerce. Institute of Cost and Management Accountants of Bangladesh (ICMAB) is the national body of the professional Cost and Management Accountants of Bangladesh. Established with the prime objective of promoting and regulating the Cost and Management Accounting profession in the country, the Institute offers education and training to the students interested to pursue career in this field and provides highly recognized CMA degree on fulfillment of requisite qualification. The Institute undertakes research in relevant fields and is the sole authority to issue practicing license to its members. The Institute of Cost and Management Accountants of Bangladesh Conduct research in the field of Cost and Management Accounting in order to promote and develop the profession to meet the requirement of the time. ICMAB upholds high ethical and professional standards to maintain public confidence in the field of Cost and Management Accountancy. Today, more and more new, unique and innovative businesses are operating in the globalized market. This is facilitated by the
advancement
in
information
and
communication
technology.
Therefore Cost and Management Accounting program will adequately prepare professional accountants for the new world of business. The American Institute of Certified Public Accountants (AICPA) states that management accounting as practice extends to the following three areas: Strategic management Page 25 of 75
Performance management
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Risk management ICMAB is a leading professional body in Bangladesh that
offers
professional
qualification
in
Cost
and
Management
Accountancy, with a focus on accounting for business. ICMAB program has been designed to meet the evolving needs of business-today and tomorrow. ICMAB look forward to helping people to achieve excellence as a professional. Regulate and develop the Cost and Management Accounting (CMA) profession in Bangladesh Provide and confer the highest professional degree in Cost and Management Accounting Impart education and training to the members, corporate managers and intending students of CMA for enhancing their capability in the fields of Cost and Management Accounting Help development, adoption and implementation of International Financial Reporting Standards (IFRS) in Bangladesh Formulate, adopt and implement Cost Accounting and Auditing Standards (CAAS) in Bangladesh and international Implement statutory Cost Audit as provided in the Companies Act, 1994 and In Bangladesh, the profession of accountancy developed during the British colonial period. The Institute is managed by a National Council of 16 members. It is a member
of
the
International
Federation
of
Accountants
(IFAC),
Confederation of Asian and Pacific Accountants (CAPA), and South Asian Federation of Accountants (SAFA). ICMAB members are known as CMAs with their designator title ACMA and FCMA. They play leading roles in the accountancy and finance profession in Bangladesh. 30% of members live and work in UK, USA, Canada, Australia and Gulf Countries. ICMAB UK Chapter is a lively forum for members working in the UK. Legacy of the Institute
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The Institute has a long heritage of rendering professional services to the nation. The journey of the glorious profession of Cost and Management Accounting began in the pre-independent Bangladesh with the founding of a branch of The Pakistan Institute of Industrial Accountants (PIIA) in 1958. As we started a fresh journey towards success and prosperity in independent Bangladesh, the profession entered into a new era. In 1972, the Institute was re-established in the name of Bangladesh Institute of Industrial Accountants (BIIA). Thereafter, the members of the Institute through their excellence in various fields proved their credibility in the national and international outfit which started building the credentials for the Institute for gaining acceptability from all concerned and to attain confidence of the government and business community of the country. With the changing need of time the Government of Bangladesh renamed it as The Institute of Cost and Management Accountants of Bangladesh (ICMAB) through promulgation of The Cost and Management Accountants Ordinance 1977 (Ordinance No LIII of 1977). Now in 2014, after a 40 years arduous journey, the chronicle of success earned by our predecessors has brought us to the place where we stand today. Legal Status ICMAB is a statutory organization constituted by the Government under the Cost and Management Accountants Ordinance 1977 (Ordinance No Llll of 1977) and regulated under the Cost and Management Accountants Regulations 1980 (as amended up-to date). It is the member of a number of regional and global accounting bodies. The Development of Managerial Accounting & The Role of ICMAB What is Management Accounting What is ICMAB Role of ICMAB in managerial accounting of Bangladesh Conclusion Management accounting is a profession that involves partnering in management decision making, Page 28 of 75
devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy. Today it is represented by two professional bodies, the Institute of Cost & Management Accountants of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB) Development of ICMAB The Institute is managed by a National Council of 16 members. It is a member of the International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA), and South Asian Federation of Accountants (SAFA).
ICMAB members are known as CMA. They play leading roles in the accountancy and finance profession in Bangladesh. 30% of members live and work in UK, USA, Canada, Australia and Gulf Countries. The ICMAB qualification is recognized by many professional bodies nationally and internationally. The bodies that have granted exemption to ICMAB members or qualified students are:
Chartered Institute of Management Accountants (CIMA), UK Association of Chartered Certified Accountants (ACCA), UK Institute of Management Accountants (IMA), USA Society of Management Accountants of Canada (CMA Canada) Certified General Accountants Association of Canada (CGA-Canada) Institute of Certified Financial Consultants (IFC), USA & Canada Institute of Certified Project Accountants (ACPA) , USA Institute of Public Accountants (IPA), Australia Institute of Chartered Accountants of Bangladesh (ICAB)
3.16 Mission Statement of ICMAB Page 29 of 75
The Institute's mission is to develop, equip and promote Cost and Management Accounting profession by maintaining highest professional standard of its members in order to enable them to provide better services to the society. The Institute is entrusted with the formulation and implementation of National Accounting as well as Cost Accounting Standards and takes other necessary steps with a view to regulating the Cost and Management Accounting profession commensurate with global standard with the ultimate objective of developing Bangladesh's human and natural resources to ensure common welfare and to enrich our shared future.
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3.17 Vision Statement of ICMAB Institute's vision is to help Bangladesh become an industrialized nation by promoting and regulating Cost and Management Accounting profession to enhance economic competitiveness and quality of life.
3.18 Services of ICMABs Equipped with various methods and techniques, the Cost & Management Accountants can provide the following services Collecting, collating, screening, interpreting and condensing data relating to techno-human business activities To enable Non-Financial Executives to arrive at the right decision or to select the right courses of action at the right time Costing of products and services Designing and implementing effective management information and control systems. Planning and control of business operation through costing systems and various techniques Inventory control incorporating mathematical models Cost reduction in connection with modern management tools like Operation Research, Value Engineering, etc. Investment analysis and preparation of Feasibility/Project reports; its appraisal and evaluation Information management. Project management-planning control and accounting. Cost Audit of business transactions. Performance Evaluation. Working capital management.
3.19 Governance / Management of ICMAB The Institute is governed by a Council constituted under the provision of the Cost and Management Accountants Ordinance, 1977. The Council Page 31 of 75
consists of 12 Fellow Members elected by the members of ICMAB and 4 nominees from the Government of Bangladesh. The Council is elected for a period of three years. Every year one President, two Vice-Presidents, one Secretary and one Treasurer are elected as office bearers from amongst the councilors. The day to day administrative affairs of the Institute is however, managed by a team of fully employed personnel.
3.20 Objectives The major objectives of the Institute are to: Regulate and develop the Cost and Management Accounting (CMA) profession in Bangladesh Provide and confer the highest professional degree in Cost and Management Accounting Impart education and training to the members, corporate managers and intending students of CMA for enhancing their capability in the fields of Cost and Management Accounting Develop knowledge, skills and competence of the CMAs needed to support economic development of the country and, thus, to prepare capable manpower needed for various national and international development activities according to the requirements of the millennium Help development, adoption and implementation of International Financial Reporting Standards (IFRS) in Bangladesh Formulate, adopt and implement Cost Accounting and Auditing Standards (CAAS) in Bangladesh and international arena. Conduct research in the field of Cost and Management Accounting in order to promote and develop the profession to meet the requirement of the time.
3.21
Corporate information of ICMAB
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SL
Name
1
Mr. Arif Khan FCMA
2
Mr. Jamal Ahmed Choudhury FCMA
3
Prof. MamtazUddin Ahmed FCMA
4 5 6 7
8 9 10 11 12
Mr. Md. AbdurRahman Khan FCMA Prof. Dr. Swapan Kumar Bala FCMA Mr. Muzaffar Ahmed FCMA Mr. M. AbulKalamMazumdar FCMA Mr. Abu Sayed Md. Shaykhul Islam FCMA Mr. A. K. M. DelwerHussain FCMA Mr. Mohammed Salim FCMA Mr. Md. Mamunur Rashid FCMA Mr. Md. Munirul Islam FCMA
13
Mr. A R M NazmusSakib
14
Mr. Md.EnamulHoque
15
Mr. Md.Shawkat Ali Waresi
Designation
Contact
Telephone: +880 (2) 883 4990 E-mail:
[email protected] VICECell:01713-015254 PRESIDENT E-mail:
[email protected] Cell:01816-235109 VICEEmail: PRESIDENT
[email protected] m Cell:01713-009688 SECRETARY E-mail:
[email protected] Cell:01714-377811 TREASURER E-mail:
[email protected] Mob. 01819-213014 MEMBER Email:
[email protected] PRESIDENT
MEMBER
MEMBER MEMBER MEMBER MEMBER MEMBER GOVT. NOMINEE GOVT. NOMINEE GOVT. NOMINEE
Mob.01711-537482 E-Mail:
[email protected] Off:8061119 E-mail:
[email protected] Cell:01711-171650 E-mail:
[email protected] Cell:01711-644859 E-mail:
[email protected] Cell: 01714044096 E-mail:
[email protected] Cell:01713329690 E-mail:
[email protected] Off: 7169507 E-mail:
[email protected] Off: 9563559 Cell: 01552-350386 Off: 7167212
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Part: 4 Literature Review 4.1 Auditing Auditing is the on-site verification activity, such as inspection or examination, of a process or quality system, to ensure compliance to requirements. An audit can apply to an entire organization or might be specific to a function, process, or production step. As defined in ISO 19011:2011—Guidelines for auditing management systems, an audit is a “systematic, independent and documented process for obtaining audit evidence [records, statements of fact or other information which are relevant and verifiable] and evaluating it objectively to determine the extent to which the audit criteria [set of policies, procedures or requirements] are fulfilled.” Several audit methods may be employed to achieve the audit purpose. There are three discrete types of audits: product (which includes services), process, and system. However, other methods, such as a desk or document review audit, may be employed independently or in support of the three general types of audits. Some audits are named according to their purpose or scope. The scope of a department or function audit is a particular department or function. The purpose of a management audit relates to management interests such as assessment of area performance or efficiency. An audit may also be classified as internal or external, depending on the interrelationships among participants. Internal audits are performed by employees of your organization. External audits are performed by an outside agent. Internal audits are often referred to as first-party audits, while external audits can be either second-party, or third-party.
4.2 Taxation Taxation refers to the practice of government collecting money from its citizens to pay for public services. Without taxation, there would be no public libraries or parks. One of the most frequently debated political topics is taxation. Taxation is the practice of collecting taxes (money) from citizens based on their Page 34 of 75
earnings and property. The money raised from taxation supports the government and allows it to fund police and courts, have a military, build and maintain roads, along with many other services. Taxation is the price of being a citizen, though politicians and citizens often argue about how much taxation is too little or too much.
4.3 Management Accounting Managerial accounting is concerned with providing information to managers, that is, to those who are inside an organization and who direct and control its operations. Managerial accounting can be contrasted with financial accounting, which is concerned with providing information to stockholders, creditors and others who are outside an organization (Garrison and Noreen, 1999). Managerial accounting information includes: Information on the costs of an organizations products and services: o For example, managers can use product costs to guide the setting of selling prices. In addition, these product costs are used for inventory valuation and income determination (Horngren and Foster, 1987). Budgets: A budget is a quantitative expression of a plan. Performance reports: o These reports often consist of comparisons of budgets with actual results. The deviations of actual results from budget are called variances (Horngren and Foster, 1987). Other information which assist managers in their planning and control activities: o Examples are information on revenues of an organizations products and services, sales back logs, unit quantities and demands on capacity resources (Kaplan and Atkinson, 1989).
4.4 Chartered Accountancy Chartered Accountancy is the specialized field of Accounting. The qualification of a Chartered Accountant is being increasingly acclaimed as the “best” professional qualification in this millennium of free market Page 35 of 75
economy and globalization of trade and services. Education and training system of Chartered Accountants is such that after qualifying, a Chartered Accountant may go for public practice either on his/her own or in partnership with other Chartered Accountant(s) or he/she may go for employment in trade, commerce, industry, finance, etc.
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Part: 5 Topic Parts 5.1 Why this Topic In today's free globalized world, Chartered Accountants and Cost and management Accounting (CMA) are in public practice, in all sizes of accounting firm from sole practitioners to affiliates of large international firms. They are also employed in industries, finance and commerce playing a wide variety of financial, management and senior policy making roles both at home and abroad. We have selected or assigned to this topic because of its demand and honor all over the world. If we know the detailed information about this two major Accounting professional course we may be motivate to attain those course and insure a bright and successful future career. Also one of the main reasons for selecting this topic is, as we are the student of BBA and doing a course on Managerial Accounting. It is the recruitment of the course. By preparing this report our knowledge about Accounting profession will increase.
5.2 Benefits of being a Chartered Accountant A Chartered Accountant is a Professional who is trained in and possesses the expertise to perform the various types of work such as Accounting, Taxation, Auditing, Financial Management, Project Appraisal, MIS, IT, Computer Auditing, Consultancy etc. In certain areas, like audit, they have the monopoly. The practicing Chartered Accountants mainly carry out audit, inter alia, of financial statements of various enterprises/organizations as Public Accountants under the banners of approved Chartered Accountant Firms. Chartered Accountants engaged in public practice mainly carry out the following functions: Perform professional services involving auditing or verification of financial transactions, books, accounts or records, or preparation, verification or certification of financial, accounting and related statements;
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Render professional services or assistance in or about matters of principles or details relating to accounting procedures, costing techniques, or recording, presentation or certification of financial facts or data; Render professional services or assistance as Management Consultant in or about matters of accounting methods, systems and techniques involving forecasting, in order to assist management in its task of formulating policies, programmers, management systems and procedures for maintaining and improving efficiency. Management Consultancy services encompass, inter alia, the following areas: o Valuation of business and shares o Designing of accounting, internal control and operational systems for organization. Rendering of services like maintaining computerized financial accounts of companies, business process re-engineering, management selection and recruitment, disinvestment of government enterprises, etc.
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Part: 6 Actual Task parts 6.1 Group’s Activities To make this report successful we the group of five member attempt several activities. Such as:
Group discussions Project planning Preparing project time-line Task deviations Information gather Visiting CA Bhobon, CA firm and ICMAB Bhobon Preparing report and presentation Etc.
6.2 Task deviation S/ L
Name
ID Number
01
Md yahia Raja
13202080
02
Marium Akter Nahida
13202019
03
Israt Jahan Chayan
13202104
04
Shakawat Hossain
05
Mamunur Rashid
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Activities
6.3 Learning through this project
Details about CA course, Activities of a CA firm also CMA course Activities of ICAB, CA firm, ICMAB Services of ICAB, CA firm and ICMAB Requirement of CA and CMA Course Admission process Curriculum area or training criteria Duration of those courses Evaluation after course has finish Career opportunity in CA and CMA Standard structure and procedure of writing or preparing a report Fundamentals of research technique
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Part: 7 Research parts 7.1 Project time-line 1. 2. 3. 4.
Assigning this project: 15th February, 2016 Group discussion: 16th February, 2016 – 20th February, 2016. Project planning: 20th February, 2016-25th February, 2016 Visit CA Bhabon, CA Firm and ICMAB Bhabon: 29th February, 2016 5. Group discussion: 3nd march, 2016- 5th march, 2016 6. Task divination: 4thmarth, 2016 7. Information gather: 5th march, 2016- 12th march, 2016 8. Preparing final report: 10th march 2016 – 13th march, 2016 9. Preparing presentation slide: 13th march, 2016 10. Report submission and presentation: 14th march, 2016
7.2 Project time-line in Chart
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7.3 Budgeted information The total assumed and listed costing for preparing this report and entire project is presented below.
S/L 1. 2. 3. 4. 5. 6. 7. 8. 9.
Cost Item Name Bus rent Breakfast bill Rickshaw rent Snacks and soft drinks Mobile bill Report print Spiral Binding internet Others
Quantity and cost area 5 person * 45TK 5 person * 95TK 5 person * 25TK 5 person * 25TK 5 person * 30TK Total 30* 1 In Average In Average Total=
Total cost- TK 225 475 125 125 150 230 30 200 200 TK-1760
The total actual or assumed cost for this entire project work is more or less TK-1760 and still not finished Comments: Project may cost high but knowledge we get is more valuable than this cost but as we are student of Business Studies and did several Accounting courses we should focus on the cost also.
7.4 Research Instruments To provide and gather as much informative and relative evaluation descriptive method was used. This method includes the use of questionnaires and interviews also the online get way. The tools used by the researcher are discussed. Online information source was used as the main data-gathering instrument for this study. And the second main source was the face to face interview also the appointment over Cell phone.
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7.5 Data Sources Primary Data:As mentioned earlier the main data source was Internet and Face to Face interview with ICAB’s and ICMAB’s information officers also the group discussion with CA firms officers. Secondary Data:
ICAB’s Annual report ICMAB’s Annual report Institutes websites Online and printed Magazine News paper Online Article Internet (google.com)
7.6 About (Data Analysis) ICAB –Institute of Chartered Accountants of Bangladesh: 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 Ministry of Commerce, Government of the People's Republic of Bangladesh is the administrative Ministry of ICAB.
ICMAB- Institute Bangladesh:
of
Cost
and
Management
Accountants
of
Institute of Cost and Management Accountants of Bangladesh (ICMAB) is the national body of the professional Cost and Management Accountants of Bangladesh. Established with the prime objective of promoting and regulating the Cost and Management Accounting profession in the country, the Institute offers education and training to the students interested to pursue career in this field and provides highly recognized CMA degree on fulfillment of requisite qualification. The Institute Page 43 of 75
undertakes research in relevant fields and is the sole authority to issue practicing license to its members.
AYUB & MAHMOOD CA firm: AYUB AND MAHMOOD was formed in February 2005, with a mission to continually add value by helping clients succeed. The firm is in public practice for more than 11 years. The partnership firm was founded with a vision to build an institution which would foster an environment for leadership, continuous growth, learning, and collaborations. Over the past eleven years, the firm has become reputable chartered accountancy firms in Bangladesh. At present, AYUB AND MAHMOOD has ten partners whose expertise in audit, accounting, review, business consulting, business process outsourcing, technology solutions and taxation has established the firm as a multidisciplinary organization. All the partners have many years of experience of working both at home and abroad and with international consultants and organizations operating locally and globally.
7.7 Benefits of being a CA & FCMA A Chartered Accountant and Cost and Management Accountant is a Professional who is trained in and possesses the expertise to perform the various types of work such as Accounting, Taxation, Auditing, Financial Management, Project Appraisal, MIS, IT, Computer Auditing, Consultancy etc. In certain areas, like audit, they have the monopoly. The practicing Chartered Accountant and Cost and Management Accountant mainly carry out audit, inter alia, of financial statements of various enterprises/organizations as Public Accountants under the banners of approved Chartered Accountant Firms. Chartered Accountants engaged in public practice mainly carry out the following functions: Perform professional services involving auditing or verification of financial transactions, books, accounts or records, or preparation, verification or certification of financial, accounting and related statements; Render professional services or assistance in or about matters of principles or details relating to accounting procedures, costing Page 44 of 75
techniques, or recording, presentation or certification of financial facts or data; Render professional services or assistance as Management Consultant in or about matters of accounting methods, systems and techniques involving forecasting, in order to assist management in its task of formulating policies, programmers, management systems and procedures for maintaining and improving efficiency. Management Consultancy services encompass, inter alia, the following areas: Valuation of business and shares Designing of accounting, internal control and operational systems for organization. Rendering of services like maintaining computerized financial accounts of companies, business process reengineering, management selection and recruitment, disinvestment of government enterprises, etc. Apart from these CA Firms are also engaged in: Taxation services Business Information System (BIS) Statutory and Liquidation services, etc. Many positions of trust and responsibility are open to a Chartered Accountant such as Chief Executive, Member Finance, Finance Director, Company Secretary, Chief Accountant, Finance Controller, Systems Analyst, Internal Auditor, Accountant, etc. in Listed Companies, Corporations/ Autonomous bodies or in industrial, financial, commercial or educational enterprises. A Chartered Accountant can also serve on the Board of Directors of various organizations, particularly financial institutions. Such positions of responsibility, trust, honor and dignity are offered to Chartered Accountants because of their excellent educational & training background, professional know-how & technical expertise and sound financial knowledge & experience, enable them to contribute towards solving accounting, financial, educational and business problems at top levels.
7.8 Career Prospects in Comparison with other Professions Page 45 of 75
CA is an internationally relevant and accessible qualification – a goanywhere passport to a successful career. In an age of growing globalization and intensified competition, modern business demands timely and accurate financial information. That is why CAs' are sought after by companies across the world. They are commercial business managers with wide-ranging skills. With this globalization, the world economic scenario is rapidly evolving. Innovative financial instruments are being constantly introduced in the twenty first century, and the Chartered Accountancy (CA) Profession world-wide is in the forefront in launching these financial products. Chartered Accountancy (CA) has emerged as a unique profession of paramount importance. Anybody will find Chartered Accountancy as a satisfying and rewarding profession. Apart from exciting opportunities and attractive pay-packages, Chartered Accountancy qualification is recognized internationally, and its reputation and value are maintained through high standards of assessment and regulation. It is the professional qualification of choice for businesses worldwide. The profession of Chartered Accountancy is looked upon with great honour and dignity. Chartered Accountants have developed this over the years through sincerity, devotion, and integrity. Business promoters and owners cannot deal with every detail of their business. The People they employ to conduct their business do a lot of things on each of those where they cannot lay their fingertips. Promoters and owners engage Public Accountants to let them know net results of their business activities and repose full confidence in Public Accountants to dig out truths, where necessary. Due to the increasing demand for their services, the average earnings/ remuneration packages of Chartered Accountants has also steadily increased in recent past. Hence a student, on successful completion of examinations and training, could look forward to a comfortable compensation package. Today's world is governed by commerce and trade. Only the Chartered Accountants can control the matters related to commerce and trade. So there is a increasing demand of Chartered Accountants worldwide. And that is why the Chartered Accountancy is best among all other professions. Page 46 of 75
Chartered Accountancy in Bangladesh In Bangladesh where resources are limited, support of the government for starting an activity at national level is greatly needed. Government of Bangladesh has given total support to the development of accounting profession in the country. Policy makers of the country are taking keen interest in the activities of the profession. Chartered Accountancy is the most lucrative and remunerative job, not only in Bangladesh but, over the world. ICAB is the only organization to train the most prestigious professionals and to regulate Chartered Accountancy profession in the country. During the year 2010-11, the Institute granted registration to 1082 students for Article ship, 1392 students completed their Article ship training and 46 Articled Students discontinued Article ship due to various reasons. In Course Articled Students during the year 2010-11, 3570 students were registered for Article ship with the Institute. Though it is apparent that the path for accomplishment of the C.A. qualification is not an easy task, but with the unique combination of rich inputs and active processes in a supportive environment has been made by ICAB, the results is now well worth your endeavors and CA profession has become preferential one day by day. ICAB has now grown to a membership size of 1252 of which 766 are Fellow Members and the rest 486 are Associate Members. (As on 20 April 2012) Female in CA Profession in Bangladesh Females are also playing a vital role as Chartered Accountants in Bangladesh and taking leading role gradually to become co-partner of the profession. ICAB has 42 female members (as on 20 April 2012) who are occupying the high ranking positions in CA firms, NGOs and international organizations like, the World Bank. Female students are increasing tremendously and are becoming matured adequately. ICAB wishes to have many more qualified (and part-qualified) female Chartered Accountants in the near future.
7.9 About CA (Joining) Chartered Accountancy a prestigious professional course in Bangladesh. Some Basic Information about Chartered Accountancy is following: Page 47 of 75
Controller of CA: The Institute of Chartered Accountants of Bangladesh Address of ICAB:
The Institute of Chartered Accountant of Bangladesh
Chartered Accountant Bhaban 100 Kazi Nazrul Islam Avenue Dhaka-1215, Bangladesh
Tel: +880-2-9117521, 9115340, 9137847 Fax: +880-2-8119399 E-mail:
[email protected] Website: www.icab.org.bd
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Qualifications for HSC/Equivalent
entering
Chartered
Accountancy
after
Minimum qualification of SSC & HSC passed students: GPA 5 in SSC + GPA 4 in HSC OR, GPA 4 in SSC + GPA 5 in HSC Total 9 Points (one A+ is must) Minimum qualification of the students of ‘O’ & ‘A’ Levels: Minimum 38 points in ‘O’ Level In minimum 5 subjects & maximum 07 subjects And Minimum 12 points in ‘A’ Level In maximum 03 subjects (A’ = 10 points, ‘B’= 6 points, ‘C’=4 points) Point will be not allowed less than ‘C’ Minimum qualification of the students of O’ Level & HSC: Minimum 38 points in ‘O’ Level In minimum 5 subjects & maximum 07 subjects And Minimum GPA – 4 in HSC Period of Article ship: Four (04) years. Candidates securing 3As in ‘A’ Level with the necessary requirement in ‘O’ Level will have a Period of Articleship of three years and six months (3years & 6 Months) ICAB Entry Criteria Link You Can see the detail, to see Click here Page 49 of 75
JOINING PROCESS OF CA: Ensure the minimum qualification as per ICAB’s requirement first. After confirming the qualifications a student have to find a Ca firm to study CA. Firstly a Student needs to drop his/her CV to his/her desired directly.
CA firms
Then the firm will contact with the student / the Students will face an exam to join the CA firm. After the exam if he/she can prove his/her talent then the CA firm will give him/her the chance of Article ship. Question Type of CA Admission Exam: First of all i would like to mention that there is no fixed Question and subjects of CA admission test. Every firm have there on strategy for admitting new students. Admission exam is held as per firm’s rules, there is no rule imposed by ICAB. So naturally question may vary from firm to firm. Though there is no fixed subjects for CA admission test, many firms usually try to find those students who have a good knowledge over Accounting & English. Try to get some idea about CA questions and answers ———-Click to Download ca-firm-exam-question & answer For Detail admission tips please click here to find admission tips from CA in Bangladesh Probation Period: After joining a ca, firm probation period is start. The period before giving registration to a Student is called probation period. Probation period various from firm to firm, but in general Probation Period is three (3) or six (6) months. Articleship Rules: Page 50 of 75
After the registration of students with ICAB, the Articleship period is start. During the time of Articleship a student have to work in the firm under his/her principal from 9am-5pm or even More (as per firm’s rule). He/she have to face various kinds of Audits and various kinds of Clients. He/she may need to go in various places for audit purpose.
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Condition of Registration with ICAB: For registering a student with ICAB the students should ensure the qualification based on Educational background. And the student needs to be 18 years old, if not then the student’s parent needs to make a deed with ICAB with that He/She permit his/her son/daughter to study ca though he/she is not 18. This should write on one 100 tk stamp & one 50 tk stamp and it must be signed with date. Changing of firm: In rare case student’s needs to change his/her firm. For changing of firm, a student needs to take Permission From his/her present firm & from his principal From ICAB From the new firm Intention of a Student:
It is not important that who you are or from which firm you are but the important matter is that you have to pass CA and you have to be a qualified Chartered Accountants. Firms doesn’t matter if you pass CA. Remember one thing that we are joining CA before our Graduation so we must have to pass CA. Otherwise we can’t fight in Job field because we have no Degree more than HSC. We have enough time also but we have to use our time properly and we have to gain our goals. We have to be CHARTERED ACCOUNTANTS.
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Pathway to membership
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7.10 Requirements for Admission 1) Tk. 13,500/- for PS-KL Classes (second of subsequent time attendance) Tk. 15,000/- for PS-AL Classes; Tk. 18,000/- for Advanced Stage Classes Tk. 25,000/- for Advanced Stage-Case Study Classes The necessary fees of classes should be paid by crossed pay order/ Demand Draft drawn in favor of ICAB from any scheduled Bank as per enrollment schedule mentioned above and be deposited to ICAB Accounts Section at C A Bhaban (6th Fllor) and the Coaching Classes Application Form should be submitted along with the Money Receipt at ICAB Academic Campus, 69/l/1, East Panthapath, Green Road, Dhaka – 1205 for Dhaka Center Students & at CRC Office, 1/D, Agrabad C/A, Chittagong for Chittagong Center Students. Students attending in PS-Knowledge Level for the first time will submit their Original Money Receipt issued earlier. 2) Photograph: 02 Copies (stamp size) 3) Photocopy of Identity Card or C.C. Certificate; and
4) Photocopy of Marks Sheet or Congratulations Letter (for PS-AL & AS students).
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7.11 ICAB Entry Criteria Students having the following qualifications are eligible for Article-ship: 1. under Graduates: (I)
SSC & HSC or Equivalent Examinations:
GPA 4 in SSC with GPA 5 in HSC Or GPA 5 in SSC with GPA 4 in HSC Period of Article ship: Four (04) years. (II)
‘O’ & ‘A’ Levels:
-Minimum 38 points in ‘O’ Level in minimum 5 subjects & maximum 07 subjectsAnd -Minimum 12 points in ‘A’ Level in maximum 03 subjects -Points to be considered as Grade ‘A’ = 10 points, ‘B’= 6 points, ‘C’=4 points -No point will be considered for Grade less than ‘C’ Period of Article ship: Four (04) years. Provided that candidates securing 3As in ‘A’ Level with the necessary requirement in ‘O’ Level will have a period of Article ship of three years and six months. (III) ‘O’ Level & HSC: -Minimum 38 points in ‘O’ Level in minimum 5 subjects & maximum 07 subjects&Minimum GPA - 4 in HSC Period of Article ship: Four (04) years. 2. Graduates and Post Graduates: Graduates or Post- graduates in any discipline having minimum 07 (seven) points with no third division/ third class from any recognized Page 55 of 75
Board/Public University/ National University/ Private University/ Institute (as approved by University Grants Commission of Bangladesh). Points will be determined as under: Level Grade/ Division Points (IV) ‘O’ Level* (No point will be considered for Grade less than ‘C’)Grade Point 24 or above (minimum 5 subjects & maximum 07 subjects) as per point scale in term 1 * Above
3
Grade Point 20 to less than 24 (minimum 5 subjects) as per point scale in term 1 *Aabove
2
SSC *GPA 3 or above/ First Division
3
GPA 2 to less than 3/ Second division HSC GPA 3 or above / First Division
2
3
GPA 2 to less than 3/ Second Division
2
Graduation CGPA 3 or above (out of 4) & CGPA 4 or above (out of 5) / First Class 3 CGPA 2.5 to less than 3 (out of 4) & CGPA 3 to less than 4 (out of 5) / SecondClass2 Post-Graduation CGPA 3 or above (out of 4) & CGPA 4 or above (out of 5) / FirstClass 3 CGPA 2.5 to less than 3 (out of 4) & CGPA 3 to less than 4 (out of 5) / Second Class2 Period of Article ship: Three (03) years
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* In case any candidate has passed both the examinations, either ‘O’ Level or SSC examination result (whichever earns more points) will be considered. ACMA/FCMA and ACCA/FCCA ACMA or FCMA of ICMAB and ACCA or FCCA (with no consideration of Division/ Class/CGPA in any Level of academic qualification/examination). They will be exempted from the following papers:
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Professional Stage (Knowledge Level):
Accounting* Taxation-I Business and Commercial Law IT’S Knowledge Professional Stage (Application Level) IT’S Application
* He /she will have to successfully complete a ‘Conversion Course’ on ‘Preparing Ltd. Co. Accounts’ to be organized by ICAB in order to get exemption from PS (K) accounting. Alternatively, he/she will have to pass the ‘Accounting paper. Period of Article ship: 02 (two) years
ICAB New Curriculum Examination Structure (i) The examinations structure shall comprise of 2-stages as follows: Professional Stage (PS) Advanced Stage (AS) Professional Stage examination shall again consist of 2 progressive level of examination as follows: Knowledge level Application level (ii) Professional Stage (Knowledge Level) i.e. PS (K) shall consist of 07 papers with examination duration of 1½ hours each except ‘Taxation-I’ which will be of 3 hours duration, as under:
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Subject Duration Marks (1) 100
Assurance
1½ hours
(2) 100
Accounting
1½ hours
(3) 100
Business and Finance
1½ hours
(4) 100
Management Information
1½ hours
(5) 100 (6) 100 (7) 100
Taxation-I
03 hours
Business and Commercial Law IT Knowledge
1½ hours 1½ hours
700 (iii) Professional Stage (Application level) i.e. PS (A) shall consist of 07 papers with examination duration of 2½ hours each as under: Subject Duration Marks (1) 100
Audit and Assurance
2½ hours
(2) 100
Financial Accounting
2½ hours
(3) 100
Business Strategy
2½ hours
(4) 100 (5) 100
Financial Management Taxation-II
2½ hours 2½ hours
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(6) 100 (7) 100
Corporate Laws and Practices IT Application
2½ hours 2½ hours
700 (iv) Advanced Stage (AS) shall consist of the following 04(four) papers with examination duration of 3 hours each except Case Study which will be of 4 hours duration:
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7.12 Information collects from ICMAB CMAs in addition to being trained in all facets of general accounting and taxation, receive special training in cost audit, management audit and management accounting. Both the ICMAB and ICAB are under the administrative control of the Ministry of Commerce. The Govt. of Bangladesh considers both type of professional accountants equal
in
respect
of
employment
in
govt.
services
as
per
circular
No.Com/PTMA/AP/2/19/87 Purpose of doing CMAs course CMAs (Cost and Management Accountants) are forward looking, unlike traditional accountants who focus on reporting past performance Cost and Management Accountants are typically qualified to engage in a wide variety of business - related activities such as: Working across the business interpreting financial data for non-financial manager Explaining the financial consequences of management decisions and suggesting possible Courses of action Advising managers on the financial and economic implications of project management Making strategic decisions and formulating business strategies to create wealth
and shareholder value Monitoring spending and the effectiveness of financial control Managing risk and business assurance Cost determination and financial control Evaluating existing financial information systems and
suggesting
improvements thereof Conducting internal business audits and preparing periodic financial statements for managers Explaining the impact of the competitive landscape. Page 61 of 75
CMAs can also be self-employed as practicing Cost and Management Accountants, Management Consultant, Cost Auditor, Tax Adviser, etc. CMAs combine a high level of financial and management expertise with excellent business acumen and decision-making skills. This makes them essential to every business in all sectors covering Industry, Commerce, Government, Semi Government, Autonomous Bodies, Public Sector and notfor-profit Organizations.
7.13 ICMAB Entry Criteria The Institute of Cost and Management Accountants of Bangladesh (ICMAB) opens the door of studying prestigious cost and management accounting courses for HSC passed students for the first time from JULY-DECEMBER 2015 session. Now, the institute has widened the scope to cater the needs of the society in line with the international professional accounting organizations (PAOs). Such opportunity will help the institute to produce highly qualified and skilled professional accountants in a more focused way. Thus the institute has offered three different entry routes based on the previous academic achievements. Intermediate Entry Route (IER) – Applicable to HSC Passed Candidates Graduate Entry Route (GER) – Applicable to Graduated Candidates Professional Entry Route (PER) – Applicable to Candidates with Other Professional Designations Specific minimum entry requirements are mentioned in following sections:
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Intermediate Entry Route Any student who has finished Higher Secondary School Certificate (H.S.C.) or ‘A’ Level or Equivalent Examinations are eligible to enter into prestigious Cost and Management Accountancy program as offered by the Institute of Cost and Management Accountants of Bangladesh through this route. The minimum entry criteria under IER are set as below: With S.S.C or H.S.C. or Equivalent Examinations Minimum total GPA required is 8.00. With ‘O’ & ‘A’ Levels ‘O’ Level: Minimum 30 points at 5 subjects (excluding mother language) ‘A’ Level: Minimum 12 points at 3 subjects Points Computation Legend: Grade ‘A’ :10 Points Grade ‘B’ : 6 Points Grade ‘C’ : 4 Points No point will be considered for Grades less than ‘C’ c. ‘O’ Level and H.S.C. or Equivalent Examinations ‘O’ Level: Minimum 30 points at 5 subjects (points to be computed as mention in b above) H.S.C. or Equivalent Examinations: Minimum GPA is 4.00 Graduates Entry Route This route is applicable to any aspiring graduated candidate who opts to attain the prestigious CMA designation. Graduates or Post- graduates in any discipline having minimum 06 (six) points from any recognized Board/Public University/ National University/ Private University/ Institute (as approved by University Grants Commission of Bangladesh). Without accounting major a student can apply for this course. Page 63 of 75
CMA Curriculum Structure:
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The curriculum has two entry levels (basements), four pillars (regulatory, enterprise, performance and financial) and one roof (internship and research). A student may seek admission in two consecutive levels (except for intermediate entry route that haven’t yet passed knowledge level); however, he cannot sit for the exam at a higher level course until he finishes the lower level paper within the same pillar. Achievement of permanent credit in all the papers is a must to undergo an internship and research. Students may also sit for CIMA case studies at different levels if they like so. In that case, they need to enroll with CIMA and continue the two programs in parallel. However, ICMAB membership is a pre-requisite to CIMA membership.
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Part: 8 Report Ending Parts 8.1 Research Limitation Facing problems Transport Problem from Uttar to ICMAB In ICAB Bhabon, information officers are not enough friendly to give us information Distance between ICBA and ICMAB also CA firm Lack of co-ordination by ICAB and ICMAB’s information officer
8.2 Findings: CA and CMA are top leading professional courses in Bangladesh. CA course and ICMAB course are very demandable in the present time of job market. Without accounting major a student can do CA and CMA course. Any background student such as science, arts and also business studies student can do both course. For Admitting CA and CMA course every students must qualified admission test. ICAB is the regulatory body of CA course, they take the exams but student learned and trained under a CA firm. ICMAB is take the classes of CMA student, student can do class in evening also. CA students have to study in three levels, after passing all levels student get certificates. In CMA course, graduated students have to study two level these are business level, professional level but HSC completed student have to study three levels. These are knowledge level, business level, and professional level. After completing CA and CMA, A person can get top level of job in Bangladesh and abroad.
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8.3 Recommendation: Ifa student wants to take those courses, we give some recommendation for them:
Follow the requirement of admission Collect enough information before go for admission Should be strong in English, accounting Analytical knowledge Students who are not graduated, it will be very hard for them Applicant may take part in evening shift Find out a well-known and good CA firm for assisting
Study hard to be passed in all the courses 8.4 Conclusion ICAB and ICMAB uphold high ethical and professional standards to maintain public confidence in the field of professional Accountancy. Today more and more new unique and innovative business are operating in the globalize market. This is facilitated by the advancement in information and communication technology. The CA and CMA program will adequately prepare professional accountants for the new world of business. Is it are the highly demanded course people in the business world are more attaining those courses. To be a successful CA or FCMA, the applicants should be hard worker and specific to the requirement for passing that exam. By becoming a good grade CA of CMA holder the individual can lead his /her career in a bright milestone.
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Part:6 Appendix Picture’s from the visiting
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References
News Latter Online and printed Magazine Annual Report of ICAB & ICMAB http://en.wikipedia.org/wiki/Institute_of_Chartered_Accountants_of_Ban gladesh http://www.icab.org.bd/index.php? option=com_content&view=article&id=51&Itemid=55 http://www.icab.org.bd/images/stories/download/ca_syllabus/knowledg e_level.pdfhttp://en.wikipedia.org/wiki/Institute_of_Cost_and_Managem ent_Accountants_of_Bangladesh Collecting information by visiting ICAB, CA firm, ICMAB. http://www.icab.org.bd/ http://www.icab.org.bd/index.php? option=com_content&view=article&id=51&Itemid=55 http://www.icab.org.bd/index.php? option=com_content&view=article&id=52&Itemid=60 http://www.icab.org.bd/index.php? option=com_content&view=article&id=54&Itemid=64 http://www.icmab.org.bd/ http://www.icmab.org.bd/index.php/about-us/the-institute4 http://www.icmab.org.bd/index.php/layout-option/why-cma http://www.icmab.org.bd/index.php/demo-contents/admissionpolicy/icmab-entry-criteria http://www.icmab.org.bd/index.php/demo-contents/admissionpolicy/fees-and-charges https://targetjobs.co.uk/career-sectors/accountancy-and-financialmanagement/283291-which-accountancy-specialisation-should-youchoose
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