Home ›› 08 Jan 2023 ›› Front
With the expansion of the economy and the corporate sector boom, the services of certified chartered accountants (CAs) are now in high demand in Bangladesh.
Corporate companies are now obliged to show financial statements certified by professional chartered accountants and that has fuelled the demand for CAs. However, the country is still lagging in producing a sufficient number of CAs to meet the growing demand.
At present, there are around 2,200 certified CAs only across Bangladesh against the demand of at least 20,000, according to Md Moniruzzaman, the president of the Institute of Chartered Accountants of Bangladesh (ICAB).
Of the 2,200, only 412 are working as professional CAs.
Due to this shortage, the country has been hiring CAs from the global market, mainly from India and Sri Lanka. On the other hand, many corporate companies are making financial statements with non-professionals but that is not always acceptable to many.
Industry people have said that measures have to be taken immediately to produce more CAs to meet the local demand and reduce the dependency on the global market.
At the same time, there is also ample opportunity to earn foreign currency by supplying CA services to the international market.
In 2019, Bangladesh ranked 41st among the world’s largest economies and the second-biggest in South Asia. The HSBC has forecast that the country will be the 26th largest economy by 2030.
Similarly, the country’s corporate sector has witnessed remarkable expansion over the years. Both developments have helped boost the demand for CAs in the country.
Until November 2022, there were 2,77,442 registered public, private and foreign companies and firms in Bangladesh, according to the Office of the Registrar of Joint Stock Companies and Firms (RJSC). These entities have to submit financial audit reports to run their business.
However, against this growing demand, ICAB has awarded CA certificates to only 505 newly qualified chartered accountants in the last eight years.
The more shocking fact is that the country has produced only 2,500 CAs in the last 50 years, said Moniruzzaman.
Talking to The Business Post, ICAB Executive Committee Member Md Humayun Kabir said, “In an economy, there will always be a demand for CA services. The economic and corporate growth has become a blessing for the CAs.”
“However, Bangladesh needs at least 3,500-4,000 CAs at the moment. ICAB has now become more proactive by taking different initiatives to meet the demand for CA services, promote the profession and there will hopefully be no shortage soon,” he said.
The why
Despite the high demand, the number of CAs in the local market is not increasing equivalently due to some challenges, including insufficient facilities during the learning period, a very low pass rate, and a lack of branding and awareness.
The students who want to be CAs have to work at a CA firm for three years. During that time, the honorarium they receive from the firms is insignificant and it’s not enough for them to live and survive in the capital which discourages them.
There are about 200 CA firms around the country. In line with ICAB rules, CA firms provide Tk 4,000-5,000 to the students now. Some renowned firms pay more than this amount but most of the firms pay even less.
ICAB has seen an increase in the pass rate over the past few years but it’s not that much significant yet.
Earlier, ICAB used to hold the examination in two sessions. This year, ICAB held the exam in three sessions for the first time.
In the March-April session, some 513 candidates sat for the exam and only 26 of them managed to pass. In July-August, 544 candidates took the exam and only 24 passed. In November-December, 544 candidates took the test but the result is yet to be published.
Still, ICAB sources claimed that the pass rate has increased significantly compared to a decade back. They are not compromising quality in a bid to produce global standard CAs quickly.
Naim Uddin Chowdhury, a newly qualified CA, said, “Youths like me want to get a job right away after completing honours or masters. We also want to support our families with our earnings.
“This is why most of them don’t want to invest three more years to become a CA. But if anyone wants to, they are forced to depend on family while the education cost racks up at least Tk 2 lakh.”
He said, “The poor amount of honorarium that most firms offer to the students is not enough to survive in Dhaka city. This is the main reason people are not interested to invest three years to become a CA.”
ICAB Chief Operating Officer Mahbub Ahamed Siddique told The Business Post, “Many people go for the same profession when there is enough interest at the mass level.
“There is a lack of awareness when it comes to the CA profession. Due to that, there is also a misconception that passing the CA exam is hard.”
“Over the years the concept has changed with ICAB’s promotional initiatives. Talented students must come into this profession as CAs have huge demand in both local and global markets. CAs can make financial statements more smartly with their knowledge and skill,” he added.
The initiatives
ICAB has taken different initiatives — including branding profession and decentralisation of CA education — over the past few years to boost people’s interest in the CA profession around Bangladesh.
Recently, ICAB launched regional offices in Khulna, Rangpur and Rajshahi, where students can get all the necessary information on the CA career.
Earlier, students had to face three exam levels at the ICAB head office in Dhaka. Now, they can complete the first level at the regional offices.
Also, ICAB is active in building awareness among university and college-level students nationwide. In recent years, ICAB has run awareness campaigns among nearly 7,000 students in Dhaka, Chattogram, Barishal, Rangpur and Sirajganj.
ICAB has been signing MoUs on CA study with universities, including Dhaka University, Chattogram University and the Bangladesh University of Professionals, as well.
Humayun said the passing rate is increasing and the quality is improving because talented students are coming. “Earlier, graduation was a must but we have made it open for all. We are monitoring the firms to ensure the standard. We are not compromising on quality. We have launched three regional offices this year and held the exam in three sessions.
“We have also established ties with global CA professionals. Soon, there will be no shortage of CAs in the country,” he added.
