Financial Reporting Act 2015

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Financial Reporting Act 2015 (FRA 2015) is a Bangladeshi law passed by Parliament on September 6, 2015 and published on September 9, 2015. It aims to improve accountability and transparency in financial reporting.

In Bangladesh, the Institute of Chartered Accountants of Bangladesh (ICAB) regulates chartered accountants, while the Institute of Cost and Management Accountants of Bangladesh (ICMAB) regulates cost and management accountants.

To oversee ICAB and ICMAB, the Financial Reporting Council (FRC) was created. The FRC has 12 members and is a statutory body made up of experts from government, institutions, and professional groups. Its job is to monitor auditors and the accounting and auditing of financial institutions and other entities in the public interest. The FRC’s mission is to support high-quality auditing, accounting, and reporting, including both financial and non-financial information.

All auditors and audit firms must register with the FRC. Without registration, they cannot provide auditing services to entities in the public interest. To register, an auditor or audit firm applies to the FRC, which reviews the application and sets the registration rules and guidelines. If an auditor or firm violates any rule, the FRC can cancel or suspend their registration and may require financial penalties.