Part 6: Research Part

6.1 Project Timeline:

Task Start Date Duration Ending Date

Assigning this project
Group Discussion
Project Planning
Visit CA Firm, ICMAB, NBR
Collect Information
Analyzing The Information
Design the report structure
Distribution the work among all 14/11/2016
the group members
Submitted the individual task
Prepare the final report
Prepare the presentation slide
Printout the report
Give the presentation
15/10/2016 1 16/10/2016
17/10/2016 2 19/10/2016
20/10/2016 4 24/10/2016
29/10/2016 1 30/10/2016
01/11/2016 2 03/11/2016
04/11/2016 4 08/11/2016
10/11/2016 3 13/11/2016
1 15/11/2016
28/11/2016 1 29//11/2016
01/12/2016 3 04/12/2016
04/12/2016 1 05/12/2016
06/12/2016 1 07/12/2016
07/12/2016 1 08/12/2016

6.2 Budget Information:

S/L Cost Item Name Quantity and cost area Total cost- TK
1. Bus rent 7 person * 60TK 420
2. Breakfast bill 7 person * 50TK 350
3. Rickshaw rent 7person * 30TK 210
4. Snacks and soft drinks 7 person * 20TK 140
5. Mobile bill 7 person * 20TK 140
6. Report print 1
 7. Spiral Binding 1
8. internet In Average 500
9. Others In Average 200
Total= TK-1760

6.3 Research Methodology

6.3.1 Research Instrument:

For our report purpose we made some questionnaire for collect information from the IC
AB, CA Firm, and ICMAB. In this questionnaire some questions are open- end questions
and some are close- end questions. Questions are given in bellow:

1) What is the admission Requirements for studying Chartered Accountants?

2) What is the admission process for studying CA &CMA Course?

3) What is the carrier opportunity after completed CA course &CMA Course?

4) Is there any good market demand for these courses?

5) What is the course curriculum system for CA, CMA Course?

6) Is finance background is compulsory for enroll these courses?

7) What are your firms requirements for admission purpose?

6.3.2 Data Source:

Primary Data- Primary data that we collected for our Taxation courses research project
by visiting ICMAB and CA firm and NBR and from textbook.

Secondary Data- After gathering all the primary data sources, we collected our
secondary data sources from internet, from specific website of ICMAB, CA firm and
NBR, annual report of ICMAB and from Articles of ICMAB and NBR.
6.3.3Data analysis:

6.3.3.1 ICMA Admission

The Institute of Cost and Management Accountants of Bangladesh (ICMAB) opens the
door of studying prestigious cost and management accounting courses. 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.

a. Intermediate Entry Route (IER) Applicable to HSC Passed Candidates

b. Graduate Entry Route (GER) Applicable to Graduated Candidates
c. Professional Entry Route (PER) Applicable to Candidates with Other
Professional Designations

Specific minimum entry requirements are mentioned in following sections:

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:

a. With S.S.C or H.S.C. or Equivalent Examinations

Minimum total GPA required is 8.00.
 b. 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 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).

Points will be determined as under:

Level Grade/ Division Points

'O' Level* Grade Point 24 or above. 3

(Follow the point computation
Grade Point 20 to less than 24. 2
legends in 'b' above.)

GPA 3.5 or above/ First Division 3

SSC and HSC
GPA 2.5 to less than 3.5/ Second Division 2
GPA less than 2.5/Third Division 1

CGPA 3 or above (out of 4) & CGPA 4 or above

3
Graduation and Post (out of 5) / First Class
Graduation
CGPA 2 to less than 3 (out of 4) & CGPA 3 to
2
less than 4 (out of 5)/ Second Class
CGPA less than 2 (out of 4) & CGPA less than 3
1
(out of 5) / Third Class

Professional Entry Route

This entry route is applicable to the candidates having other professional designations
from such Professional Accounting Organizations (PAOs) with whom ICMAB has
entered into mutual recognition of degrees from time to time.

First Time Admission Fees including Course Fee

ICMAB offers different entry routes. Under the new fee structure, entry fees are kept
same with a slight difference in course fees due to varied subject requirements at different
entry routes which is given below:

Entry Routes IER GER PER

Knowledge Business
Level of Entry Depends*
Level Level

Students Admission Fees 10,000.00 10,000.00

Students Registration Fees 5,000.00 5,000.00

Annual Subscription 1,000.00 1,000.00

Library Card Fess 200.00 200.00

Identity Cards Fees 200.00 200.00

Students Registration Form 300.00 300.00

CMA Career Guide 200.00 200.00

 Students Welfare Fees 100.00 100.00

Total Fee for Admission 17,000.00 17,000.00

Course Fee 3600.00 7500.00

Total For a First Time

20,600.00 24,500.00
Entrant

*
Fees and Charges will depend on the level of entry

Course Fees for each Level

After the initial entry, the students are required to pay only course fees at subsequent
levels. Course fees given below are applicable for students under new (2015) curriculum
only. Course fees for students under old curriculum shall remain unchanged.

Business Level (Only applicable to students entered through IER)

Coaching &
Particulars
Correspondence
GE01 Fundamentals of Financial Accounting 1500.00

GE02 Fundamentals of Management Accounting 1500.00

GE03 Fundamentals of Business Mathematics 1500.00

GE04 Fundamentals of Business Economics 1500.00

GE05 Fundamentals of Ethics, Corporate

Governance and Business Law

Total 7500.00

Operational Level

Particulars Coaching & Correspondence

R01 Legal Environment of Business 2000.00

E01 Enterprise Operations 2000.00

P01 Performance Operation 2000.00

F01 Financial Operations 2000.00

Total 8,000.00

Management Level
 Particulars Coaching & Correspondence

R02 Taxation 3000.00

E02 Enterprise Management 3000.00

P02 Performance Management 3000.00

F02 Financial Management 3000.00

Strategic Level

Particulars Coaching & Correspondence

R03 Financial, Managerial and Cost Audit 4000.00

E03 Enterprise Strategy 4000.00

P03 Performance Management 4000.00

F03 Financial Strategy 4000.00

Total 16,000.00

Examination and Exemption Fees

A Student is required to pay Examination Fees for the subject(s), he wish to sit for the
examination. Effective July 2015, the examination fee per subject for different levels
are as follows:
 Levels Fees per subject

Foundation Level PL-II 400.00

PL-III & PL-IV 500.00

Knowledge & Business Level 400.00

Operation, Management Level & Strategic Level 500.00

Exemption Application Fees 500.00

6.3.3.2 C.A Admission

The Institute of Chartered Accountants of Bangladesh (ICAB) is the only institute to

study CA in 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. The Ministry of Commerce, Government
of the Peoples Republic of Bangladesh is the administrative Ministry of ICAB.

The Council of the Institute of Chartered Accountants of Bangladesh in its meeting held
on 27 June 2011, approved the Criteria for entry into Article-ship of the Institute.
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 Articleship: Four (04) years.
(ii) 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
-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 Articleship: Four (04) years.
Provided that 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.

(iii) O Level & HSC:

-Minimum 38 points in O Level in minimum 5 subjects & maximum 07 subjects &
Minimum GPA - 4 in HSC
Period of Articleship: 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 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
O Level* Grade Point 24 or above (minimum 5 subjects & maximum 07 3
(No point will be subjects) as per point scale in term 1(ii) above
considered for Grade Point 20 to less than 24 (minimum 5 subjects) as per point 2

Grade less than scale in term 1 (ii) above

C)
SSC * GPA 3 or above/ First Division 3
GPA 2 to less than 3/ Second division 2
HSC GPA 3 or above / First Division 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 3

Class

CGPA 2.5 to less than 3 (out of 4) & CGPA 3 to less than 4 (out of 5) / 2
Second Class
Post 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) / 2
Second Class

Period of Articleship: Three (03) years

* In case any candidate has passed both the examinations, either O Level or SSC
examination result (whichever earns more points) will be considered.
JOINING PROCESS OF CA:
Ensure the minimum qualification as per ICABs 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 CA firms directly. 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.

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:
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 firms 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.

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
students 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.
6.3.3.3 NBR Process

NBR:

Main duties of NBR

Responsibility for carrying out the administration of the major tax revenues in
Bangladesh (income taxes, customs & excise duties and value-added tax) is vested in the
National Board of Revenue (NBR). The NBR was set up under the provisions of the
National Board of Revenue Order, 1972 (Presidents Order No. 76 of 1972).

The main duties of the NBR are to:

draft laws and rules for the purpose of regulating and collecting various direct and
indirect taxes;

assist the Government in matters of formulating tax policies and laws;

prepare receipts estimate;

oversee the administration of the assessment, collection and accounting for major taxes
income taxes, customs and excise duties and VAT; and

settle various tax appeals and revision cases

Organization of NBR

The NBR is under the administrative control of the Internal Resources Division (IRD) of
the Ministry of Finance. The Secretary, IRD, is Ex-Officio Chairman of NBR. The NBR
has nine members who, with the Chairman, constitute the Board of NBR. Four of the
members cover different aspects of income taxes, the other five members deal with
customs, excise and VAT. The offices can be divided into two main groups, one for
Income Taxes and the second for Customs, Excise and VAT, as follows.

Income Tax Administration

For income tax purposes, Bangladesh is divided into 13 Zones, including 8 in Dhaka. A
Commissioner who has oversight of assessment and collection of income taxes heads each Zone.

Revenue Audit Manual

Assessment and collection of income taxes. The zone and circle offices will be key locations for
the purposes of substantive testing of income taxes. There are a number of other income tax
offices, which deal with appeals, settlements, inspection, tax surveys, and vigilance and enquiry.
There is also a Tax Training Academy in Dhaka.

Customs, Excise and VAT

These taxes are assessed and collected via 9 offices around Bangladesh. Three are known as
Customs Houses and are based in Dhaka, Chittagong and Khulna. These customs houses deal
with the major revenues collectable at airports and ports. There are six other offices covering the
rest of Bangladesh. A Commissioner of Customs, Excise and VAT heads each of the 9 offices.

There are also a number of other offices which deal with appeals, inspection, credits/refunds,
and duty appraisals. There is a separate Training Academy covering Customs, Excise and VAT
training based in Chittagong.

These income tax, customs, excise and VAT offices will be key locations for substantive tests of
these Government revenues.

Systems, Procedures and Rules

There are a limited number of computers available to tax officials for assessment and collection
activities, and most information and evidence needed by auditors is still maintained manually at
present. Apart from major legislation (see summary at the end of Chapter 7) there are a number
of SROs and manuals of guidance for tax officials. These documents will be essential references
for auditors as well.

A wide range of internal controls should be exercised by NBR for each type of tax (income tax,
customs & excise and VAT). Internal control should be exercised at many levels.

Main Problems faced by NBR

The main problems could be classified as follows:

A lack of identity of all persons or transactions subject to tax;

Identified taxpayers are not assessed properly or correctly;

Sums assessed as due are not correctly recorded;

Sums recorded as due are not collected promptly or at all; and

Taxes unpaid are not followed up with due diligence.

The main approach to be taken by Revenue Audit on the management review of the NBR
is shown in the following checklist. The approach is a top-down one where Revenue
Audit will consider the NBR arrangements first, followed by analytical review work on
tax information and finally consider what other evidence is needed. The annual review of
NBR will be the basis for all subsequent detailed audit work in the coming year. It can be
broken down into the following stages.

Stage 1

Management audit of NBR.

Review organizational and procedural changes using checklist. Consider effect on audit
 approach for next 12 months

Stage 2

Carry out analytical procedures

Review analytical evidence for major trends/possible problem areas, e.g. budgeted
revenues compared with actual. Trends over time, e.g. number of taxpayers, taxes paid,
etc.

Stage 3

Review other NBR evidence/work

Enquire into results of NBRs internal audit work (see Chapter 2) consider whether
reliance can be placed and areas which need more work. Consider the work of other
agencies in NBR, e.g. investigation units. Consider any major changes in tax rules/ new
procedures/revised tax rates.

Present Tax Rate of Bangladesh

Women (Below 60 years of

Very Senior
age) Senior Citizens
General Citizens
(Men and
(non-senior (Men and
Income Range (This category is abolished Women above 60
citizens) Women
from this year and is thus is years of age), but
Category above 80
same as that of General below 80 years
years of age)
Category

Upto Rs. 2,50,000 Nil Nil Nil Nil

Rs. 2,50,001 to Rs.
10% * 10% * Nil Nil
3,00,000

Rs. 3,00,001 to Rs. 10% * 10% * 10% * Nil

5,00,000

Rs. 5,00,001 to Rs.

20% 20% 20% 20%
10,00,000

Above Rs. 10,00,000 30% ** 30% ** 30% ** 30% **

6.3.3.4 CA IN AUDIT

Engagement Procedures
The auditing is start by engagement procedure. C.A firm faces three kinds of situations
in engagement process:
1. Engagement with new client.
2. Engagement with existing client.
3. Directly appointed by the client.

Before starting the audit work, some letters are exchanged between C.A firm and clients.

Audit procedures followed by a C.A firm

The primary goal of C.A Firm at the time of involving in any audit engagement is to
provide the opinion on Financial Statements in accordance with Bangladesh Standards on
Auditing (BSA) as well as International Standards on Auditing (ISA).

There are seven steps involved in the procedures that come one after another. Steps are as
follows:
 1. Identity Overall Goals.
2. Gather & Evaluate Initial Information.
3. Assess General Risks.
4. Assess Account-Specific Risks
5. Develop Effective and Efficient Audit Plan/Work Program.
6. Conduct Audit Testing.
7. Evaluate and Communicate Audit Results.

Identify Firms Overall Goals

The goal of C.A firm in conducting an audit is to express an opinion as to whether the
financial statements are prepared and presented fairly in accordance with Generally
Accepted Accounting Principles (GAAP). The Firms policies on Generally Accepted
Accounting Principles are contained in Accounting Standards. The audit team
considers these standards in formulating an opinion. In forming an opinion, the audit
team also addresses responsibilities for:

1. Errors
2. Irregularities and other matters
3. Efficiency
4. Client value

Gather & evaluate initial information

After involving with the client, our first task is to collect and evaluate the relevant and
necessary information related to the clients business for the purpose of:

Understanding the clients business

considering the internal control structure
identifying client expectation
considering materiality
Understand the clients business

Before involving in an audit, the auditor should understand the client business properly.
Proper planning and designing of an audit is dependent on proper understanding of
clients business. So after appointing by a client, we, the members of an audit team use
various sources to gain an understanding of client business. Differences sources which
provide us clients business information are as follows:

- Annual report
- Minutes
- Internal Reports
- Previous years audit Work Papers
- Discussion with client.

ASSESS GENERAL RISKS

during audit planning and risk assessment; we obtain initial audit evidence in order to
1. effectively assess the inherent risk of potential financial statement misstatements,
2. identify indicators of possible going concern problems, and
3. Identify account specific risk and design an overall audit approach to provide

Reasonable assurance of detecting material misstatements.

The assessment of risk is accomplished using a top-down approach. The audit team
focuses initially on high level information. The nature and extent of documentation will
vary significantly based on an entitys size, complexity, ownership characteristics, and
level of risk.
Key Factors
Significant background information and business, economic and industry conditions that
provide an indication of the level of risk for an engagement are mentioned in items
listed below:
1. Understanding client business: Can be obtained from various sources, e.g. annual
report, minutes, internal reports, previous year audit work papers, discussion with
client;
2. Managements style, outlook;
3. Significant Current Events and Reporting Issues;
4. Results of Financial Performance Review;
5. Industry Conditions and Issues;
6. Management Control Environment;
7. Accounting System Policy, Procedure & Manual;
8. Materiality Consideration;
9. Limitations of the engagement, if any, e.g. documents lost, post dated appointment,
no inventory, no cash count was done;
10. Processing Methods- The processing methods used by the entity for significant
accounting applications;
12. Audit Inherent Risks: Audit areas likely to cause problems or require unusual
attention, e.g.
a) Financial Statements items likely to require adjustments;
b) Conditions likely to require modification of audit tests, such as related party
transaction, going concern problem or possible fraud;
c. Compliance with contractual provision: USAID terms and conditions;
14. Overall audit approach;
15. Coordination and timing;