Seven CMA Firms Approved by IDRA

The Insurance Development and Regulatory Authority (IDRA) has published a revised list of seven Cost and Management Accounting (CMA) firms authorised to conduct cost audits and performance audits of life and non-life insurance companies in Bangladesh. The decision is aimed at reinforcing regulatory oversight and improving transparency in the financial and operational management of the insurance sector.

The notification was issued through an official office order from the Administration Wing of the Insurance Development and Regulatory Authority. The order was signed by World Bank Kumara Paul, Director (Administration), confirming that the listed firms will be the only entities permitted to undertake such audit assignments under the regulatory framework going forward.

According to the directive, the selected firms will be responsible for carrying out both cost audits and performance audits as required by regulatory provisions applicable to insurance companies operating in Bangladesh. The empanelment is intended to ensure uniformity in audit standards and strengthen compliance monitoring across the sector.

Cost audit refers to a systematic and independent examination of cost records and expenditure-related documents of an organisation. The purpose is to verify accuracy, ensure proper allocation of costs, and assess adherence to accounting standards. Performance audit, on the other hand, evaluates how efficiently and effectively an organisation utilises its resources in achieving operational objectives. It focuses on economy, efficiency, and effectiveness in management practices.

The regulator’s decision is expected to enhance consistency in audit reporting and support improved financial governance within both life and non-life insurance companies. By limiting audit responsibilities to a defined panel of qualified CMA firms, IDRA aims to ensure professional accountability and standardised evaluation across the industry.

The seven empanelled CMA firms are as follows:

Under the new arrangement, these firms will be assigned audit responsibilities in accordance with instructions issued by the regulator from time to time. Insurance companies will be required to engage only from this approved list for relevant audit work.

The empanelment is part of IDRA’s ongoing regulatory efforts to strengthen financial discipline within the insurance sector. It also aligns with broader supervisory objectives aimed at improving the quality of financial disclosures, enhancing risk oversight, and ensuring greater consistency in the evaluation of both cost structures and operational performance across insurance institutions in Bangladesh.