The Insurance Development and Regulatory Authority (IDRA) has newly enlisted seven Cost and Management Accounting (CMA) firms to conduct cost audits and performance audits of life and non-life insurance companies operating in the country. The move is intended to strengthen financial oversight within the insurance sector and ensure greater accountability in operational and expenditure practices.
The decision was formalised through an official order issued by the Administration Wing of the regulator. The notice was signed by World Bank Kumara Paul, Director (Administration) of Insurance Development and Regulatory Authority, confirming the updated list of approved audit firms. According to the directive, only the listed firms will henceforth be eligible to undertake audit assignments within the insurance industry under the regulatory framework.
The inclusion of these firms is part of IDRA’s ongoing efforts to reinforce compliance mechanisms in both life and non-life insurance segments. Cost audits are designed to systematically examine and verify the accuracy of expenditure records and cost-related financial statements. Meanwhile, performance audits provide an independent assessment of how efficiently and economically an organisation, programme, or project is being managed, with emphasis on resource utilisation and operational effectiveness.
By authorising a defined panel of CMA firms, the regulator aims to standardise audit practices across the sector and ensure consistency in reporting standards. Industry observers note that such structured oversight can contribute to improved transparency in financial reporting and help strengthen governance practices within insurance companies.
The seven CMA firms approved for conducting these audits are listed below:
| 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 |
According to the official notification, these firms will be responsible for carrying out both cost and performance audits across the insurance sector as required by regulatory directives. The appointments are expected to facilitate more structured monitoring of financial operations within insurance companies, particularly in relation to expenditure control and operational efficiency.
Cost auditing involves a detailed and systematic examination of cost records to ensure accuracy and compliance with established accounting standards. Performance auditing, on the other hand, evaluates whether organisational activities are being conducted with due regard to economy, efficiency, and effectiveness. Together, these audit functions are regarded as essential tools for regulatory supervision in financial sectors.
The latest development reflects IDRA’s continued focus on strengthening supervisory frameworks and improving governance standards within the country’s insurance industry.