[🇧🇩] ICT Industry in Bangladesh

[Saif]

Bangladesh enters the era of high-speed internet

The official launching of the much-anticipated commercial operation of Starlink, as reported, will evidently contribute to creating a competitive market for the internet service providers in Bangladesh. It is for the first time that the Bangladesh Telecommunication Regulatory Commission

thefinancialexpress.com.bd

Bangladesh enters the era of high-speed internet
Published :
May 24, 2025 00:27
Updated :
May 24, 2025 00:27

The official launching of the much-anticipated commercial operation of Starlink, as reported, will evidently contribute to creating a competitive market for the internet service providers in Bangladesh. It is for the first time that the Bangladesh Telecommunication Regulatory Commission (BTRC) has issued licence to a Non-Geostationary Orbit (NGSO) satellite internet service for its operation in the country. Starlink's NGSO satellites' signals reach the Earth faster and can provide a broader range of radio frequencies allowing for increased bandwidth and better data transfer speed. This internet service reportedly promises to offer unlimited data with speeds up to 300 Mbps (Megabits per second), a unit to measure the speed of data transfer. Compared to the existing broadband services in operation in Bangladesh, Starlink's would be, according to reports, more expensive with a one-time residential installation fee of Tk47,000 and a monthly subscription of Tk6,000 and Tk 4,200. So, considering the income level of common internet users in Bangladesh like students, researchers and freelancers, the service would hardly be affordable for them.

The question arises because Starlink's service is reportedly more suitable for users living in the countryside, remotely-placed areas including rugged terrains where the existing optical fibre infrastructure for broadband services has not reached. This undoubtedly gives this (Starlink) internet service a big advantage over those currently available in the urban areas. But in that case, considering the higher fees of Starlink service, its potential users in the underserved areas would obviously be at a disadvantage. The government would be required to take the cost issue into consideration while extending this high-speed, low-latency internet service to the country's remote areas. The government's financial support as well as arrangement for cheap credit from banks or financial services would be of help for students, self-earning women in online business and others operating in the countryside.

The government is reportedly also working to create a financial package to make Starlink available to those who would provide citizen service. To this end, the government is also learnt to have been planning to facilitate financing through microcredit authorities, financial organisations and banks. So far so good. Hopefully, Starlink's operation would not disrupt, but rather create a well-balanced ecosystem with the broadband infrastructures of the local internet service providers.

On the issue of data sovereignty, the special assistant to the Chief Adviser for the Ministry of Posts, Telecommunications and Information Technology, Faiz Ahmad Taiyeb, is learnt to have assured that all Starlink data traffic would be routed through local gateways (Internet Service Providers, ISPs) in compliance with the national regulations. That is only expected of a tech company, foreign or local, willing to invest and operate in the country and, especially when as important an issue as all the sensitive data of the nation is involved. In this case, more important is the people looking after the law than the abstract law itself. One might recall at this point how National Identity Card information was leaked to third parties from the Election Commission (EC)'s database. Given that the country does not have so enviable a record on data protection, it is important to ensure that sensitive data of the nation are always in safe hands. This is more so when a number of international tech giants are learnt to have expressed their interest to operate in Bangladesh.​

 

[Saif]

Starlink signing deals with local firms to expand footprint

Starlink is steadily consolidating its presence in Bangladesh through a series of partnership agreements with local companies, with deals spanning ground station development, colocation and data centre services, core site hosting, transmission, and international internet gateway (IIG) facilities.

www.thedailystar.net

Starlink signing deals with local firms to expand footprint

Starlink is steadily consolidating its presence in Bangladesh through a series of partnership agreements with local companies, with deals spanning ground station development, colocation and data centre services, core site hosting, transmission, and international internet gateway (IIG) facilities.

The Daily Star spoke to half a dozen individuals, including officials from companies involved in these partnerships. However, all requested anonymity, citing non-disclosure agreements (NDAs) signed with Starlink.

Industry sources confirmed that most of the key deals have been secured by Fibre@Home and its affiliated companies.

The initial construction of Starlink's first ground station in the country is being carried out by Fibre@Home. The station is being developed at the Hi-Tech City in Kaliakair, Gazipur.

Starlink's servers will be hosted at Felicity IDC Limited, a Tier III data centre situated within the same park.

According to industry insiders, Fibre@Home and its subsidiaries offer a diverse portfolio, ranging from optical fibre infrastructure to data centres and internet services, making them a strong local partner for Starlink's operations.

Industry sources confirmed that most of the key deals have been secured by Fibre@Home and its affiliated companies

Additional ground stations are expected to be set up in the Software Technology Park in Jashore and in Cox's Bazar. In Jashore, Fibre@Home is providing the primary infrastructure for the Starlink facility there.

When approached for comment, Sajal Hazra, CEO of Fibre@Home Global Limited, confirmed the collaboration with Starlink but declined to disclose further details due to the NDA.

For transmission services, Starlink has partnered with Fibre@Home, Summit Communications, and Bahon Limited.

Both Fibre@Home and Summit Communications are in discussions with Starlink to provide international internet gateway (IIG) services.

In a separate development, multiple companies have secured authorised reseller status with Starlink, each paying nearly $2.5 million for the opportunity.

While Starlink primarily deals directly with consumers for its 'Residential' and 'Roam' plans globally, authorised B2B resellers are permitted to serve business and government clients under the Starlink Business and Priority plans.

In Bangladesh, reseller partners will have the option to serve both enterprise clients and individual residential customers, although the latter can also opt to subscribe directly via Starlink.

Under Starlink's commercial reseller model, the company's local entity — Starlink Bangladesh in this case — will handle importation of user terminals (kits), which will then be sold to resellers in local currency.

Resellers will receive a 15 percent discount on hardware and a 5 percent discount on service fees. They will also be provided with access to Starlink's reseller portal and API for customer management.

Resellers can set their own pricing, bill customers directly, and are encouraged to provide additional services such as installation, customised solutions, and ongoing technical support.

Potential client sectors include data centres, retail outlets, hospitals, financial institutions, manufacturing facilities, offshore rigs, and organisations in media, transportation, aviation, maritime, oil and energy, and construction.

Earlier, the Bangladesh Telecommunication Regulatory Commission (BTRC) granted Starlink a temporary 90-day permit to supply bandwidth from abroad.

The decision came after Starlink requested a waiver to meet its service launch deadline, which would otherwise have expired before the establishment of a local internet gateway.

Starlink could not be reached for a comment.​

 

[Saif]

What this year’s budget means for the ICT sector

This fiscal plan allocates substantial resources to the ICT Division, Ministry of Science and Technology and other agencies tasked with developing digital infrastructure, nurturing tech talent and fostering start-ups.

www.thedailystar.net

What this year’s budget means for the ICT sector

The proposed national budget for the fiscal year 2025–26, presented by Dr. Salehuddin Ahmed, Adviser at Ministry of Finance and Ministry of Science and Technology, on behalf of the Government of Bangladesh, lays out a wide-ranging plan for economic recovery, governance reform, and development across sectors.

Among its most significant themes is the decisive prioritisation of technology - both in terms of investment in Information and Communication Technology (ICT) and scientific research, and the integration of digital tools and innovation to streamline governance, education, and public services.

This fiscal plan allocates substantial resources to the ICT Division, Ministry of Science and Technology and other agencies tasked with developing digital infrastructure, nurturing tech talent and fostering start-ups. With an emphasis on expanding mobile financial services, improving e-governance and supporting research and development, the budget underscores the government's ambition to transform Bangladesh into a knowledge-based economy.

A deep dive of the budget speech by Adviser Salehuddin reveals a series of concrete commitments and perspective shifts intended to foster a youthful, innovative and inclusive Bangladesh. Here are some of the key takeaways when it comes to the tech side of budget for FY 2025-26:

Allocation and digital infrastructure

In FY 2025–26, the ICT Division's allocation is BDT 2,144 crore, up roughly BDT 140 crore from the preceding year.

According to the budget speech by Adviser Salehuddin, "ICTD Digital Labs" have been installed in 5,000 schools and " ICTD School of the Future" rooms in 300 colleges to familiarise students with coding, robotics and other emerging technologies.

Under the Secondary and Higher Education Division, 62 projects are being implemented with an allocation of BDT 1,957 crore for educational infrastructure development and other initiatives, as per the Adviser.

Further investment will create ICT infrastructure, including necessary buildings and include classrooms, laboratories and incubation centres at universities including Dhaka University, BUET, and Jashore Science and Technology University. These measures are intended to equip a new generation of learners with the skills to participate in an increasingly digital economy.

Digital economy

A key pillar of the budget focuses on establishing a cashless society and strengthening e-governance. As of January 2025, Bangladesh has 239.3 million (approximately 23.93 crore) registered mobile financial service (MFS) accounts, of which around 42 per cent are held by women. The budget builds on this foundation by supporting the expansion of MFS for remittances, bill payments and government disbursements.

It also extends the "A-Challan" e-payment system, which now connects 61 commercial banks, enabling citizens to pay taxes and fees online via internet banking, debit cards and mobile financial services.

Notably, the iBAS++ electronic funds transfer (EFT) scheme already ensures that salaries for 1.4 million government employees and social welfare payments to beneficiaries are credited directly to bank accounts. A draft "e-Money Regulation" will underpin this digital push, promoting a secure and competitive environment for fintech and mobile wallet providers.

Easy investment initiatives and e-governance

Under the National Board of Revenue's (NBRs) Bangladesh Single Window (BSW) platform and a One-Stop Service (OSS) portal managed by the Bangladesh Investment Authority (BIDA), foreign and domestic businesses can apply for licences and approvals online. By reducing paperwork and improving transparency, these initiatives aim to attract further investment into the ICT sector and related industries.

The One Stop Service (OSS) portal currently provides a total of 134 services from 43 organisations. Steps have been taken to map all the investment services of the country across the sectors and include them in the OSS, as per Adviser Salehuddin's speech.

Education and skills hubs

Recognising that human capital is vital to any digital transformation, the budget devotes resources to technical training and capacity building. Alongside the expansion of computer labs, 36,020 teachers will continue to receive training in "ICT in Education, Literacy, Troubleshooting and Maintenance."

In rural areas, "Upazila Service and Information Technology Training Centres" will be created in 491 upazilas, providing training for young people. To promote freelancing as a source of employment, training has already begun for 28,800 "educated and job-seeking youths" in 48 districts, according to the speech by Adviser Salehuddin.

Proposal to create a 100 crore fund

Considering the potential of the IT sector and encouraging new entrepreneurs in this sector, I propose to allocate Tk 100 crore as start-up fund in the next fiscal year, said Adviser Salehuddin.

This is complemented by the proposal of an additional BDT 100 crore fund for the young entrepreneurs. "This is the first time such a fund is going to be created," the adviser added.

Playing to Bangladesh's demographic advantage, the budget also places a strong emphasis on youth empowerment. In his speech, the adviser said, "To involve the youth more deeply in the process of development of the country, I propose to allocate Tk 100 crore for the celebration of 'Tarunyer Utshob (Youth Festival)' in the next fiscal year."

While loan ceilings for trained youths were doubled to a maximum of Tk 200,000, and to Tk 500,000 for "successful young entrepreneurs." Projects will provide training and credit to 9 lakh youths by 2028, including self-employment generating projects to support families affected by the July Mass Uprising.

Moreover, the budget highlights MoU with NASA under the Artemis programme which was signed in Bangladesh Investment Summit 2025, giving Bangladeshi students an opportunity to collaborate in space exploration efforts with 54 other countries. By linking young talent to global space exploration efforts, the government hopes to inspire further interest in STEM (science, technology, engineering and mathematics) careers and advanced research.

Science and research funding

In FY 2024–25, the budget had already awarded research grants of approximately Tk 16.66 crore to 492 university projects, and provided fellowships to 1,500 researchers.

For FY 2025–26, the government has earmarked Tk 200 crore specifically for research on marine resources and the blue economy, as well as for fundamental science studies.

Energy, environment and technology Initiatives

Officials are finalising a revised Renewable Energy Policy, with the target that by 2040, 30 percent of electricity will be generated from renewable sources such as solar, wind and bio-energy.

Under an ongoing Integrated Power Sector Master Plan, the government aims to add 3,400 MW of clean energy capacity by 2028. To increase domestic energy security, Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) will undertake exploration and production programmes, including 270 km of geological surveys and over 700 km of seismic mapping in both 2-D and 3-D from FY 2025–26 to FY 2027–28. Additionally, BAPEX plans to drill 69 new wells and refurbish 31 existing wells using its own rigs, a move intended to reduce reliance on imported fuel and control energy prices.

In the transport of petroleum products, the budget supports a new Vehicle Tracking System for 2,465 fuel oil tank lorries, employing Smart Fuel Distribution Monitoring System (SFDMS) technology which aims to enhance transparency, minimise theft and ensure safe delivery of fuel across the country, mentioned Adviser Salehuddin in his budget speech.

Tech in environment and climate change also received significant attention as a BDT 100 crore allocation to the Bangladesh Climate Change Trust Fund will underwrite digital monitoring of all approved climate projects, while initiatives to reduce single-use plastic and expand afforestation are also financed.

By harnessing data-driven systems for both energy logistics and environmental protection, the budget reflects a broader vision of technology as a tool for sustainable development.

Final thoughts

Taken together, the FY 2025–26 budget provides a multi-pronged strategy to establish Bangladesh as a digital economy. It combines investments in hard infrastructure like computer labs, exploration equipment, renewable energy projects along with support for soft infrastructure such as teacher training, research fellowships, digital skills centres and start-up funds.

By prioritising in tech related topics like mobile financial services, e-governance platforms, science research and renewable energy, the government seeks to reduce dependency on imports, foster domestic innovation, and create employment for youth.

Whether the planned funds and initiatives translate into concrete outcomes will depend on implementation in the coming year. However, the budget speech by Adviser Salehuddin Ahmed makes clear that technology and innovation are now officially high on Bangladesh's agenda, an important signal to citizens and investors alike.​

 

[Saif]

Cybersecurity in Bangladesh 2025: Is your data safe?

According to the Bangladesh Telecommunication Regulatory Commission (BTRC), we have over 132 million internet users in Bangladesh. This online presence has transformed how people live, work, and communicate. Yet, it also exposes Bangladesh to a growing amount of cyber threats. As more critical...

www.thedailystar.net

Cybersecurity in Bangladesh 2025: Is your data safe?

The country’s digital future depends on a coordinated, sustained effort from government, industry, and civil society to build a resilient and secure ecosystem capable of withstanding increasingly sophisticated cyber threats. Illustration: Zarif Faiaz

According to the Bangladesh Telecommunication Regulatory Commission (BTRC), we have over 132 million internet users in Bangladesh. This online presence has transformed how people live, work, and communicate. Yet, it also exposes Bangladesh to a growing amount of cyber threats. As more critical services and personal data move online, the urgency to strengthen cybersecurity has never been greater.

Despite advancements in legislation, including the Digital Security Act of 2018 and the Cyber Security Act of 2023, Bangladesh has consistently struggled to protect its digital infrastructure, largely due to shortcomings in implementation by the previous regime. As SM Nazmul Hasan, CEO of software development company Kolpolok, puts it, "These laws were determined to suppress free speech rather than actively address the cybersecurity issues. Also, the strategies struggled with practical execution due to insufficient resources and coordination with various government entities."

Concerns over Bangladesh's cybersecurity have long been raised but are often met with limited response. Allan Watanabe, CEO of international cybersecurity firm Pipeline Inc., recalls sending direct messages to high-standing government officials in the previous regime about critical data leaks, including the infamous National ID breach, only to be ignored.

"We tried to raise these issues directly to the government but were not taken into account," says Watanabe. "Unfortunately, this led to several high-profile breaches, showing the need for comprehensive strategies and better governance." He describes the current cybersecurity landscape in Bangladesh as rapidly evolving but warns that the country still faces significant challenges, including limited technical expertise, insufficient infrastructure, and inadequate policies.

Shahab Al Yamin Chawdhury, Chief Information Security Officer of Link3 Technologies, points to the creation of the Bangladesh Cyber Security Intelligence (BCSI) as a step towards proactive defence. Yet he warns that organisations often focus heavily on hardware protection, while neglecting endpoint protection and employee training, leaving systems vulnerable to ransomware, phishing, and denial-of-service attacks."This imbalance can leave systems vulnerable to various cyber threats, including ransomware, phishing, and denial-of-service (DoS) attacks," he states.

Watanabe also highlights the urgency created by recent data leaks and rising cybercrime. "Government-led efforts and initiatives to digitise services indicate progress," he adds but cautions that the current technologies and infrastructures in Bangladesh are insufficient to fully combat advanced threats.

Despite recent advancements, Bangladesh's cybersecurity environment continues to face significant weaknesses while critical vulnerabilities remain. This is especially true in vital infrastructure sectors, where insufficient public awareness and a shortage of skilled professionals hamper effective defence.

Hasan explains, "Vulnerabilities persist, particularly in critical infrastructure, due to a lack of public awareness and skilled professionals." He warns that the country's heavy reliance on foreign cybersecurity solutions is unsustainable, noting that "Bangladesh has made little progress in software product development, especially in cybersecurity. Currently, we rely 100% on foreign products, which is not sustainable."

But it's not all about the product or the government. Cultural and organisational challenges exist, which only compound the technical issues. Md Muqeet Halim, CEO of cybersecurity consultancy firm Beetle CS, highlights a pervasive security mindset problem across many organisations. He observes that "the overall cybersecurity scene is still immature", with many entities focusing on regulatory compliance rather than building true security resilience.

According to Halim, "Weak security culture is the biggest challenge. Cybersecurity is not a feature. It is a process, and most fail to realise that." This cultural gap manifests in reactive, rather than proactive, approaches to cybersecurity. This reactive approach leaves organisations vulnerable to increasingly sophisticated threats.

Something that can truly help Bangladesh's cybersecurity challenges is public and private sector collaboration, which shows promise but remains underdeveloped. Allan Watanabe acknowledges that joint efforts such as cybersecurity forums and CERT cooperation have begun to bridge gaps. However, he admits that communication gaps remain and notes, "Trust issues hinder open sharing of threat intelligence with private sector expertise remaining underutilised."

Chawdhury notes initiatives like Public-Private Partnerships and the BUILD platform as frameworks encouraging dialogue and investment, yet both experts agree that these mechanisms require further strengthening. In contrast, Halim points to a deeper systemic problem, stating that "Organisations, both government and private, operate in silos with no proper information sharing," and calls for establishing local cybersecurity forums to facilitate coordinated knowledge exchange.

On the technological front, it's just as bleak.

Watanabe highlights the lack of modern threat intelligence platforms, widespread use of outdated systems, and limited adoption of cloud technologies as notable weaknesses. Chawdhury stresses the need for continuous innovation and adaptation to keep pace with evolving cyber threats.

Although Bangladesh's legal framework has advanced, it remains incomplete and sometimes misaligned with modern cybersecurity needs. Hasan points out that while the Cybersecurity Ordinance 2024 represents a significant improvement, it still falls short in providing comprehensive data protection measures. He adds, "Bangladesh must develop more robust data protection laws that align with international standards, such as the EU's GDPR."

Halim criticises existing legislation for focusing disproportionately on censorship and surveillance at the expense of safeguarding citizens and organisations. He advocates for clearer laws and stricter penalties that prioritise data protection and enforcement to enhance overall cybersecurity resilience.

Looking to the future, the four industry leaders agree that sustained development of skilled human resources, technological capacity, and governance frameworks will be essential.

Watanabe envisions a Bangladesh with strong public-private partnerships supported by a national cybersecurity framework aligned with global standards, which would provide a solid foundation for addressing emerging risks. Hasan underscores the importance of fostering local innovation in cybersecurity products, highlighting Kolpolok's global VPN solution as a successful example that needs government support to scale further. Halim emphasises the need to instil a security-first and human-first approach, advocating for mandatory offensive security audits to supplement compliance-based assessments across both public and private sectors.

Despite the challenges ahead, a cautiously optimistic outlook prevails.

Watanabe adds in the end, "With consistent government support, private sector collaboration and investments in education and technology, Bangladesh has the potential to establish itself as a regional leader in cybersecurity." Halim concurs, asserting, "Successful implementation of a national cybersecurity strategy and workforce development will significantly lower risks and improve security over the next decade."

In 2025, Bangladesh's cybersecurity landscape stands at a pivotal crossroads. Progress in legislation, infrastructure, and awareness contrasts with persistent vulnerabilities in skills, culture, and collaboration.

Progressing in the right direction could establish us as a regional leader in cybersecurity. However, if we succumb to stagnation as we have in past decades, it will result in increased cyberattacks, more data breaches, and potentially devastating damage to critical infrastructure.

The country's digital future depends on a coordinated, sustained effort from government, industry, and civil society to build a resilient and secure ecosystem capable of withstanding increasingly sophisticated cyber threats.

The power is in our hands.​

 

[Saif]

AIS: the key tool for good management

Accounting Information System (AIS) of an entity is essentially an Accounting Software. This is the core hub of all the financial data for the Management of Corporates, Listed Companies, NGOs, Banks and NBFIs, Public Sector Entities, and SMEs. The significant component of Corporate Governance heavi

thefinancialexpress.com.bd

AIS: the key tool for good management

Sheikh Tareq Zahir
Published :
Jun 11, 2025 00:49
Updated :
Jun 11, 2025 00:49

Accounting Information System (AIS) of an entity is essentially an Accounting Software. This is the core hub of all the financial data for the Management of Corporates, Listed Companies, NGOs, Banks and NBFIs, Public Sector Entities, and SMEs. The significant component of Corporate Governance heavily relies on the financial controls and reporting to stakeholders. Accordingly, the importance of good AIS has increased manifold in Bangladesh. Particularly, all SMEs are in need of good AIS because of their significant contribution to the business and economy of the country. In Bangladesh, adequate focus is absent to install and run proper AIS. This write-up is an attempt to highlight this issue.

Management is responsible to prepare the financial statements and provide those to the auditors for audit. Obviously, these financial statements are prepared based on the AIS of the entity. Management, either the Board or the sole proprietor himself, analyses financial data for everyday business decisions, and for submission to different stakeholders.

Entrepreneurs know the best about the outlook of their business. They always have their own mental math to run their business and mostly rely on this. Hence, most of them think that they don’t need a proper AIS. However, this mental ‘strength’ fails to save many companies from distress calls due to poorly managed financial information. For example, profit numbers and cash flow numbers are two different scenarios because, among many things, higher sales may not always guarantee higher cash inflows from collections. So, if you ‘think’ that increased sales will show higher profit, you may find that while profit has increased, it may not lead to improved cash position.

Properly prepared financial statements are must for business sustainability. It means those are compliant with International Financial Reporting Standard (IFRS). Compliance with these standards, as adopted by different countries, will ensure that the business is preparing and reporting proper financial statements for the entrepreneurs and stakeholders alike.

Without proper AIS, no governance code/policy will work. If the AIS of an entity does not function well, and/or the people cannot run it properly all the above processes become chaotic. On the other hand, in the absence of a good AIS, the senior officials find it difficult against a proper audit because they struggle to provide information and documents in due time. You cannot apply IFRS if you don’t have a proper AIS to do this. So, this is of paramount importance that entities install and run a well-designed AIS.

There’s a plethora of writings on the importance of a proper set of financial statements. But adequate emphasis is not given on the importance of managing the core financial information hub. In Bangladesh, the reason behind this is primarily from the demand side of it.

Entrepreneurs lack the understanding and/or bother less about implementing a proper AIS. Also, many of them try to avoid a good AIS because they fear that this will expose them to the Tax and VAT authorities for their Tax and VAT evasions. They feel that it is better to keep books of accounts mostly in manual fashion, so they can manipulate their records to evade Tax and VAT.

Most SMEs demand for the cheap and popular off-the shelf software without much work-around to suit their needs. But they find later that this does not serve their purposes. This leads to a bad implementation and wastage of money and efforts, because more often than not, the weak (but cheap) software gives very low extent of information support. So they don’t feel the necessity of it. This is somewhat similar for some RMG Companies.

Another case of RMG companies is that the entrepreneurs invest crores of taka behind ERP (Enterprise Resource Planning) software. Few months down the line, they find that they have selected the software that does not match with their operations and expectations.

The other side of the gamut is that entities that choose the right software, fail to assess that they actually have low calibre people to run a good system. So either the implementation or the subsequent operation of the system fails. Then they try to justify and practice of keeping manual books over a good AIS. This is a common case for RMG companies.

SMEs in Bangladesh have a significant role in the economy. Experts now estimate that there are over 10 million SMEs in Bangladesh and they currently contribute 30-32 per cent to the GDP. Over 24 million people are employed in this sector. Bangladesh Bank has mandated that all banks allocate 25 percent of their total loan disbursement to CSMEs by December 2024, and banks are diligently adhering to this directive (Note)*. Naturally, the SMEs will be soon required to prepare and submit their financial statements to various authorities. So, it is extremely important that these SMEs have good AIS. But from the experience as a practicing accountant, this was observed that these business enterprises have weak AIS, if at all, both with the software and the quality of people running it.

Auditors must review the adequacy of the AIS as part of their review of the internal Control System of a client to conclude on the extent they would rely on it. Their subsequent audit works will heavily rely on this assessment. If they find that the AIS is faulty, this means that the source of information is faulty as well. So, they must become more alert that there are now higher likelihood of errors and frauds in the financial statements. This will help them do a quality audit.

Auditors must be aware that when the client submits information on a spreadsheet, this does not necessarily mean that those came directly from the AIS without errors – some manual intervention can always take place on spreadsheets. So, this becomes imperative for them to take a ‘read-only’ access into the AIS of the client and review the audit trails, the extent of manual book entries, and the access level controls in the AIS. This shows client’s governance strength over business-critical information. This basic audit approach, of course, does not mean that the audit team members must be highly trained in IT. The fundamental understanding of AIS governance with proper training will do the job.

So what can we do about this?

From a project management perspective, it was observed that many brilliant business graduates struggle in either implementing or in operating a good AIS, although they have studied many courses. Educational institutes that impart business studies should enhance their existing courses, so that they can train the students on how to design and run AIS. The real world works around a good AIS, so, if this is not properly handled, the other discussions around business become futile. This will help them build up a good idea that the core of good governance lies with reliable financial data from a good AIS.

Both ICAB and ICMAB should hold awareness sessions with different trade bodies and other stakeholders. Entrepreneurs will become aware of the importance of proper AIS. All stakeholders will also get quick and accurate data for their purpose against specific demands. So this is a win-win situation.

There must be more rigorous hands-on training sessions for accounting professionals in the country. These trainings should focus on implementation of good AIS. Auditors must be trained so they can understand and question the design and operation of AIS. They can, thus, do a quality audit. Both the ICAB and ICMAB can collaborate with international software companies so they can achieve the training efficacies. The software Companies will be interested to lend a hand in view of their business expansions.

Sheikh Tareq Zahir FCA is a Partner at Ahmed Sheikh Roy & Co., Chartered Accountants.​