Cenbank imposes conditions on banks on appointing audit firms for export incentives

The central bank has imposed conditions on banks on appointing audit firms for auditing applications for cash incentives or subsidies against the exports of goods.

The central bank's Foreign Exchange Policy Department (FEPD) issued a circular in this regard on Monday (8 July).

The circular said in the financial year 2024-2025, the same number of audit firms can be appointed for auditing applications for cash incentives or subsidies against the exports of goods, as appointed for auditing bank accounts.

But as per the central bank's conditions, if an additional audit firm is to be appointed, however, an application should be made with the central bank's FEPD stating its rationale, previous work experience of the firm concerned, the number of cases regarding cash incentives and the number of audit firms with relevant information.

Apart from this, the central bank has also given directives for the appointment of audit firms which include that the firm has to be on the list of audit firms with the Financial Reporting Council and the Bangladesh Bank, and get approval from the board of directors of the employing bank.

The previous policy on no audit firm being allowed to audit applications for cash incentives or subsidies in the same bank for more than three years has also been retained in the new guidelines of the FEPD.

A senior official of the Bangladesh bank said, "As per the Financial Reporting Council rules, banks should appoint a separate audit firm for this purpose other than regular audit firms."