Bangladesh Bank has introduced new regulations under the “Rules for External Audit of Bank-Companies, 2024” to enhance financial report standards in banks. Effective from the 2025 audit year, these rules mandate that external auditors must audit approximately 80% of banks’ risk-weighted assets annually. Auditors cannot serve consecutively for more than three years and must not have any affiliation with the bank. They will scrutinize for “window dressing” practices and report on loan classification, foreign exchange irregularities, and other critical areas. Banks must annually appoint auditors by August, with Bangladesh Bank clearance, and submit interim and final reports as per specified timelines. Special and confidential reports are required for serious irregularities and financial crimes. These measures aim to bolster audit integrity and ensure robust oversight of banking practices in Bangladesh.
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