Regulatory Alerts2024-07-08
Added · Updated
FEPD Circular Letter No. 10: Appointment of Audit Firms for Auditing of Export Incentive/Export Subsidy
The Department of Foreign Exchange Policy of the Bangladesh Bank mandates that scheduled banks appoint an audit firm with a number of auditors equal to the number of auditors employed for the bank's statutory audit to review cash assistance/export subsidy applications for the 2024-2025 fiscal year. Banks must verify that the appointed firm is listed in the latest approved list of the Financial Reporting Council and the Bangladesh Bank, obtain prior approval from the bank's management or local branch manager, and comply with the Financial Reporting Act 2015 and related rules. Additionally, an audit firm previously engaged for bank audits or subsidy case reviews for three consecutive years is ineligible for appointment for a subsequent period of at least three years.
Foreign Exchange Policy Department Bangladesh Bank Head Office Dhaka.
Ref. No. FEPD Circular Letter No. 10 Date: ----------------
Managing Director/Chief Executive Officer All Scheduled Banks Operating in Bangladesh Dear Sir,
Regarding the appointment of audit firms in the context of providing cash assistance/export subsidy as an alternative to customs bond and duty draw-back in the export-oriented domestic garment sector and other applicable sectors.
- Attention is drawn to FEPD Circular No. 05, dated February 12, 2024, on the subject mentioned above. To review the application forms for cash assistance/export subsidy for the fiscal year 2024-2025, an audit firm with a number of auditors equal to the number of auditors employed by the bank for statutory audit may be appointed. However, if it is necessary to appoint additional audit firms beyond those mentioned above, an application must be made to the Foreign Exchange Policy Department, Bangladesh Bank, stating the number of audit firms along with the justification, information on whether the concerned firms have been previously employed by the bank, the number of cash assistance cases, and other relevant information. In all cases of appointing audit firms, the following instructions must be followed:
(a) Prior to appointing the audit firm, it must be verified whether the concerned firm (CA/CPA) is included in the latest approved list published by the Financial Reporting Council and the Bangladesh Bank;
(b) In the case of appointing an audit firm, prior approval of the bank's management/local branch manager must be obtained;
(c) The instructions of Clause 4, Part B, Schedule-1 of the Financial Reporting Council (Registration of Auditors and Audit Firms) Rules, 2022, issued under the Financial Reporting Act, 2015, and other relevant instructions must be complied with;
(d) In accordance with the instructions of FEPD Circular Letter No. 21, dated June 02, 2020, any audit firm appointed for bank statutory audit or for reviewing cash assistance/export subsidy cases for three consecutive years shall not be considered eligible for appointment for reviewing cash assistance/export subsidy cases for a subsequent period of at least three years.
- The relevant instructions of FEPD Circular Letter No. FEPD(Com)291/2002-1367, dated June 02, 2002; FEPD Circular Letter No. FEPD(Export Policy)291/2014-13, dated June 29, 2014; FEPD Circular Letter No. 29, dated August 12, 2020; FEPD Circular Letter No. 20, dated December 03, 2023; and other relevant FEPD Circulars/Letters regarding the review of cash assistance/export subsidy cases shall remain in force as usual.
You are advised to inform all concerned parties regarding this matter.
Yours faithfully,
(Md. Sarowar Hossain) Director (FEPD) Phone: 9530123
Ashar 24, 1431 July 08, 2024