Summary:
As an audit report is the end product of the independent activity of an auditor the credibility of an audit report has been the subject of discussion. It is a matter of concern in many developing countries including Bangladesh. It is an important issue in Bangladesh as the capital market here is an emerging one. Though
still not organized it has shown its strength as well as weaknesses in recent years. Moreover the status of audit report has acquired special significance in the context of a developing country like Bangladesh where public confidence in corporate management has to be strengthened and sustained to ensure rapid growth of
industry and economy. While performing these duties the auditor has to face a lot of difficulties. They are squeezed between their professional ethics and their effort for survival and in many cases such to compromise their independence under management influence and pressure. But if the situation is they have
that auditors are independent, books of accounts are verifiable and international auditing guidelines (IAG) are followed as standards, it will provide not only a specific service to the audit but also a beneficial general
service to the society as a whole. In this regard the Government as well as the institute of chartered Accountants of Bangladesh (ICAB) should take some strategic steps to improve the present situation.