Auditor Selection, Audit Environment and Its Impact on Corporate Governance: Analysis of Selected Listed Companies in Bangladesh

Abstract

In this project report we to explain the auditors selection, audit environment and its impact on corporate governance. The main purpose of this study is analysis of audit environment in Bangladesh of public listed companies. For analyzing we selected four different types of industries which are Engineering, IT, Textile and Telecom industries. Each industries have many listed companies and we collect five years data for each company. We collect data from companys annual report year 2014 to 2018. From the annual report we try to find some information such as independents auditor name, audit report date, audit lag, audit opinion, audit fees, total assets, annual sales and annual net profit. Then we figure out the industry average total assets, average ROA, average net profit, average audit fees and percentage of good and bad opinion for each industry. We also compare this findings among four industries and find that the audit environment of Textile industry is better than others on the basis of audit opinion. We also find that the Telecom industry is more efficient than others on the basis of average ROA and average net profit. On the basis of efficiency Textile industry is not in a good position and they have to improve their efficieny by reducing their assets costs and expenditures.