The Insurance Development and Regulatory Authority (IDRA) has empanelled seven Cost and Management Accounting (CMA) firms for conducting cost audits and performance audits of life and non-life insurance companies in Bangladesh. The decision forms part of the regulator’s broader initiative to enhance financial discipline, transparency, and accountability across the insurance sector.
The announcement was issued through an official order from the Administration Wing of the Insurance Development and Regulatory Authority. The directive, signed by Director (Administration) World Bank Kumara Paul, confirms that only the selected firms will be authorised to carry out audit-related assignments in the insurance industry under the prevailing regulatory framework.
According to the notification, the empanelled firms will be engaged in two principal areas of audit work. Cost audit involves a structured and independent examination of financial records related to expenditure, with the objective of verifying accuracy, compliance, and proper cost allocation. Performance audit, in contrast, evaluates the efficiency, effectiveness, and economy with which insurance companies operate, including the utilisation of resources and the implementation of organisational processes.
The regulator stated that the updated list is intended to ensure standardisation in audit practices and to strengthen oversight mechanisms within both life and non-life insurance companies. By limiting audit functions to a selected panel of qualified CMA firms, IDRA aims to improve consistency in reporting and reinforce professional accountability in financial assessments.
The seven CMA firms included in the list are as follows:
| Serial | Name of CMA Firm |
|---|---|
| 1 | A Hannan & Co. |
| 2 | Hossain & Co. |
| 3 | Mujibur Rahman & Co. |
| 4 | Podder & Associates |
| 5 | Safe-Q Associates & Co. |
| 6 | Saifur Enayet & Associates |
| 7 | Sam & Associates |
Officials noted that these firms will be assigned audit responsibilities in accordance with regulatory requirements applicable to insurance companies operating in the country. The empanelment is expected to streamline audit procedures and ensure that both cost structures and operational performance are assessed in a more systematic and professional manner.
Cost audits are widely recognised as a tool for examining whether financial records accurately reflect expenditure patterns and whether costs have been recorded in line with established accounting principles. Performance audits, meanwhile, focus on evaluating whether institutions are achieving desired outcomes efficiently and with appropriate use of resources.
The inclusion of a dedicated panel of CMA firms reflects IDRA’s continued efforts to strengthen governance standards within the insurance industry. It is also expected to contribute to improved financial reporting practices and greater regulatory control over operational and expenditure-related matters across insurance providers in Bangladesh.