kpmg

Rahman Rahman Huq

Chartered Accountants

Office Manual

Rahman Rahman Huq

Chartered Accountants
(Member firm of KPMG International)

October 2015
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Chartered Accountants

CONTENTS

Section

1 Foreword

2 About the Firm

3 Factsheet

4 Details concerning your contract of employment

5 Independence and Ethics

6 Sentinel

7 Associating RRH with other Activities

8 Known or Suspected Noncompliance Laws and Regulations

9 Litigation Pending or Threatened Claims

10 General office administration procedures

11 Working Papers

Appendix A : Timesheet
Appendix B : Leave Application Form
Appendix C : Notification of Interest upon Resignation/Employment Negotiations

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Section - 1

Foreword

This is the fifth edition of the Office Manual of Rahman Rahman Huq ("RRH" or "the Firm"). It is
complementary to the Letter of Appointment which you already hold and should be seen as
forming part of your terms and conditions.

The Manual is designed as a guide to the Firm's procedures and also the benefits available to staff.
It is important therefore that you read the Manual carefully and return it to the Office Manager.
You may borrow a copy from him for reference purposes, but it must NOT be taken away from
RRH premises.

If there is anything you do not understand or if you require any further information please do not
hesitate to contact any of the partners of the Firm.

The Partners

October 2015

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Section - 2

About the Firm

Rahman Rahman Huq (RRH) was established in 1962 to take over the Bangladesh (erstwhile East
Pakistan) practice of Price Waterhouse Peat & Co. From its very commencement RRH expanded
rapidly, and within a couple of years it had been able to establish full-fledged offices in Dhaka,
Chittagong and Khulna, in the eastern wing and Karachi, Lahore and Rawalpindi in the western
wing, which made the firm one of the largest in united Pakistan.

In 2006 RRH became a Member Firm of KPMG International (KPMG) in Bangladesh. For over a
decade prior to that we were KPMG’s Representative Firm in Bangladesh. KPMG is one of the
‘big four’ audit firms in the world today, and Member Firm is the highest level of affiliation
within KPMG. Becoming the only Big 4 Member Firm in Bangladesh at the time, RRH formally
established its position as the premier audit firm in Bangladesh.

We are the largest employer of Chartered Accountants in the country. All professionals of the
firm, from partners to audit juniors, go through mandatory structured training every year, many
such training being conducted in training centers and KPMG offices outside Bangladesh.

As a Member Firm, all services rendered by us are subject to rigorous external review every year,
where, amongst other matters, we need to demonstrate consistent KPMG standards in our service
delivery.

RRH, besides establishing an extensive auditing and tax practice, is also active in advisory space
with services such as deal advisory, management consulting and risk consulting. A distinguishing
feature of RRH's practice has been its catalytic role to bring under one umbrella the qualifications
and experiences of top grade professionals available in the country, to deliver value to its clients.

At present RRH has three partners, all members of the Institute of Chartered Accountants in
England and Wales. Operating from offices in Dhaka and the port city of Chittagong, the firm has
a staff strength of over 375, majority being qualified and experienced professionals.

Further information about the firm, including a list of recent and current clients, may be found in
the KPMG Rahman Rahman Huq Firm profile.

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Section - 3

Factsheet

Address Dhaka 9 Mohakhali C/A (11th and 12th floor), Dhaka-1212

Chittagong 102 Agrabad C/A, Chittagong

Telephone Dhaka (02) 988 6450-2

Chittagong (031) 710 704, 710 996

Fax Dhaka (02) 988 6449

Chittagong (031) 252 0795

E-mail Dhaka [email protected]

Chittagong [email protected]

Partners Dhaka Adeeb H. Khan (Senior Partner, Risk Management and

Ethics & Independence Partner
Ali Ashfaq (Head of Finance, IT and People,
Performance & Culture Partner)
Mehedi Hasan (Training Partner)

Office Manager Dhaka Faruk A. Chowdhury

Chittagong R. Dey

Accountant Dhaka A. K. Azad - Manager

Susanta Paul – Assistant Manager

Communications In-charge Dhaka Parimal K. Nakti

Risk Management Dhaka Nahid Sultana – Assistant Manager

Manjurul Kabir – Assistant Officer

Librarian Dhaka Md. Abdur Razzak

Filing Assistant Dhaka Md. Ibrahim Khalil

Contact telephone number beyond office hours (for emergency use only):

Dhaka Adeeb H. Khan (02) 882 5252

Chittagong Mohammad Saif Uddin (031) 618 986

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Section - 4

Details Concerning Your Contact of Employment

1. Your letter of appointment (and Deed of Articles for Articled Students) combined with
this Manual constitute your contract of employment. Any amendments to the terms of
employment will be communicated in writing to you before the changes become
effective.

Upon joining the firm all employees need to sign a declaration that they have received, read
and understood this Manual and that they will abide by the instructions of this Manual and
respect the culture of this firm.

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Upon joining:

a) All employees must provide:

 Academic certificates (original copy), which will be returned to them after

verification by Office Manager and after being copied and recorded in their
personal file.

 Current residential address and contact number(s), along with proof of this
address. Acceptable form of proof will be letter/statement/ID card etc. issued to
them at this address by University/College/Library/Bank etc.

 Permanent residential address and contact number(s).

 Name, address and contact number(s) of next of kin, along with relationship
with employee.

No salary or allowance or expense reimbursement will be paid unless the above

requirements are met. Exception will only be permitted if approved in writing by a
partner.

b) It is the responsibility of all employees to notify the Office Manager as soon as

possible of any changes in their personal particulars (e.g. marital status, home
address, telephone number etc.).

2. Remuneration:

Salaries (including allowances paid to articled students and trainee accountants) are agreed
at the commencement of employment. Salaries of resource personnel and support staff are
normally reviewed once a year.

Salaries and allowances are paid monthly in arrears on the last working day of each month.
If you are entitled to any bonuses or overtime for the month then these will be paid with
your salary.

For those joining on any day other than the first day of the month, the first month’s salary
will be paid on the following basis:

Number of days between joining and month end divided by 30 multiplied by monthly
salary.

Festival bonuses are paid at the discretion of the partners. One will normally only be
entitled to a bonus after completion of six months of service with the firm.

All salaries are paid net of income tax and, where applicable, after provident fund and loan
repayment deductions. At the end of the tax year, the firm will issue to those permanent
staff who request it a certificate showing, with a breakdown, salary etc. paid in the year and
the income tax withheld therefrom.

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Overtime

Only computer operators and peons who support them during overtime hours are entitled to
variable overtime payments based on hours worked beyond normal working hours and only
if approved by a partner.

3. Office hours:

Normal office hours for full time staff are from 9:30 a.m. to 6:00 p.m. Sunday to Thursday.
Lunch period is one hour, which is included in normal hours of work and should normally
be taken between 1.00 p.m. to 2.00 p.m.

When working in client’s premises, you would be expected to follow client's working
hours.

All staff and articled students / trainee accountants are to swipe their RRH ID cards on the
card scanners each time they enter or exit main doors at each floor.

Support staff are also required to sign the attendance register. The register will be kept with
a partner after 9.45 a.m. Late arrival (after 9.45 a.m.) on three occasions in one month will
count as leave of one day.

4. Allocation:

Professional staff (i.e. resource personnel, articled students and trainee accountants) are
assigned to particular partners. Such staff may be reassigned (temporarily or permanently)
at the discretion of the partners. All professional staff are allocated responsibilities for the
week during an Allocation session, this is usually held weekly. Allocation is conducted
either by the respective partner or by his group manager.

All professional staff must attend allocation. Partner or group manager must be informed
beforehand if anybody is unable to attend allocation.

5. Travel:

The firm may require you to travel for official purposes anywhere in Bangladesh or abroad.

6. Provident Fund:

Upon confirmation, all permanent staff are entitled to join the Firm’s provident fund. Such
staff will contribute an amount in accordance with the rules of the provident fund, and the
firm contributes an equal amount. A copy of the Provident Fund Rules may be obtained
from the Office Manager.

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7. Retirement:

The retirement age for all employees is 60. Individual application for extension of service
may be considered, strictly at the discretion of partners.

8. Holidays:

a) Holiday entitlement is as follows:

Articled students 180 days for 3 year course and 210 days for 3.5 year
course.
Trainee Accountants 180 days for 3-year course, 210 days for 3.5 year
course and 240 days for 4 year course

Permanent staff 28 days p.a. (earned leave 14 days, casual leave 7 days
and medical/sick leave 7 days)

The above entitlement will be superseded by anything contained in your letter of

appointment.

b) Holiday year commences from 1 January. Staff joining the Firm after 1 January in
any year will be entitled to one twelfth of the annual holiday entitlement for each
completed calendar month of service.

c) All holidays for one day or more must be applied for using the prescribed form
(Appendix B). Holidays are to be approved by partners or if duly authorised, by their
managers. Partner/Manager will only consider the application if prior approval has
been taken from the person under whom the applicant is currently working.

d) All short leaves (i.e. less than one day) of audit staff must be approved by assignment
in charge or in his absence, manager or partner. Short leaves for other staff are to be
approved by any partner.

e) All holiday entitlements must be taken within the holiday year and it is not possible
to carry any balance over from one year to the next unless duly approved by a
partner. This requirement does not apply to articled students and Trainee
accountants.

f) * Fridays and Saturdays are our weekly holidays.

* If leave is taken both before and after a public holiday (including weekends),
days of those public holiday will be treated as utilisation of annual leave
entitlement.

g) Sick leave:

Sick leave is included in the above leave entitlement. Partner (or manager, if duly
authorised) must be contacted on the first day of sickness to inform him of your
inability to attend RRH or client's office.

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Upon return to work from sick leave, leave application must be approved as in 9 (c)
above. Sick leave applications for three days or more must be accompanied by a
doctor's certificate.

RRH reserves the right to require you to be examined by a physician or clinic

approved by the Firm. You will be expected to bear this cost.

If your sick leave extends to three days or more, you must call your partner or
manager on the third day and inform him of your condition.

h) Study leave:

ICAB Articled students:

Entitlement during tenure of articleship:

First attempt Knowledge level 42 days

Application level 42 days
Advanced level 37 days

For Subsequent Attempts - 4 days per paper, including exam days

The above entitlements are subject to change due to revision in ICAB rules and Firm
policy.

ACCA Trainee Accountants:

First attempt Knowledge level – 7 days per paper

Skill Level - 7 days per paper
Professional Level - 8 days per paper

For Subsequent Attempts - 4 days per paper, including exam days

Study leave will form part of the holiday entitlement shown in 8(a) above.

Approval procedure for study leave is as 8(c) above.

The above entitlements are subject to change due to revision in Firm policy.

9. Maternity leave:

a) In addition to holiday/study leave all confirmed female employees are entitled to

avail 90 days of maternity leave for giving birth to each child provided she has
completed one year of service with RRH. This entitlement will hold good for not
more than two children.

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b) After the leave has been availed once, the same will be due at the rate of 30 days per
year accumulating up to maximum of 90 days.

c) Female employees may avail maternity leave on short installments as may be needed.
Annual leave can also be utilized for this purpose.

d) Maternity leave is not encashable. The period of maternity leave may cover both
prenatal and postnatal period.

10. Paternity leave:

a) In addition to holiday/study leave all confirmed male employees are entitled to six
days of paternity leave on birth of his child. This entitlement will hold good for not
more than two children.

b) Paternity leave is not encashable.

11. Disciplinary procedures and actions for violation(s) of the firm’s independence policies:

The Firm's disciplinary procedures are in three stages:

a) The first stage will be an oral warning indicating the nature of the offence and
notifying you that repetition or continuation or failure to improve, might lead to a
formal written warning.

In more serious cases this first stage of procedure may be omitted, the decision to do
so remains at the partners' discretion.

b) The second stage will consist of a written warning stating the nature of the offence
and stating that any repetition could lead to suspension without pay or summary
dismissal.

c) The final stage of procedure will be suspension without pay or summary dismissal,
according to the nature of the misconduct.

In extreme cases, (a) and (b) may not apply. This is completely at the discretion of partner.

Disciplinary actions for violation(s) of the firm’s independence policies:

Failure to comply with firm policies for independence may result in disciplinary action, up
to and including termination from the firm. The firm has established guidelines for actions
to be taken against individuals for violation(s) of independence policies.

Disciplinary actions are determined by a disciplinary committee consisting of (a) PPC

Partner, (b) E&I Partner and (c) Supervising Partner for the concerned individual.

Individuals facing disciplinary action will be provided with the opportunity to explain
whether mitigating circumstances should be considered when such violations are evaluated.

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There are four general categories of violations and the disciplinary actions imposed may
differ, depending upon the severity or frequency of such violations.

Category - I

Violations are situations that generally involve one-time inadvertent violations. Most
violations under this category will result in a notification letter that will be sent to the
individual and included in the individual’s personal file. Notification letters will include a
description of the violation, recommendations on how to prevent violations and a
description of possible disciplinary actions that could consist from additional violations.

Category – II

Violations include multiple instances of investments in, or loans from, restricted entities,
incomplete, inaccurate, or late reporting the independence affidavit, failure to cure a
violation of the firm’s independence policies, or complete independence training, on a
timely basis or any other similar type of violation.

Disciplinary actions could include any of the following:

 notification to the office and area Managing Partner;

 prior approval of all new investments or a requirement to submit brokerage statements
directly to the EIP for a period of time;
 additional independence training requirements;
 compensation adjustment; and/or
 performance appraisal adjustment.

Category – III

Violations are characterised by a pattern of carelessness resulting in excessive violations of

the firm’s independence policies. Examples include repeated instances of investments in, or
loans from, restricted entities, incomplete, inaccurate, or late reporting of significant facts
on independence affidavits, a refusal to timely submit an affidavit or information on
financial interests, failure to complete independence training, or cure a violation of the
firm’s independence rules on a timely basis, or any other similar type of violation.

Disciplinary actions could include any or all of the following:

 notification to the office and the area Managing Partner;

 prior approval of all new investments or a requirement to submit brokerage statements
directly to the EIP for a period of time;
 additional independence training requirements;
 compensation adjustment; and/or
 performance appraisal adjustment.

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Category – IV

Violations include situations characterized by a blatant disregard of the firm’s

independence policies. Violations under this category may include a combination of
violations that were previously considered Categories I to III violations and also specifically
include situations where an employee knowingly acquires or holds securities of, or has a
non-permitted loan with, a restricted entity client for whom he or she has provided services.

Disciplinary actions for Category – IV violations may include any or all of the disciplinary
actions recommended above or any include termination of employment or resignation as a
partner.

The above examples are provided for illustrative purposes and in no way intended to be a
complete list of any or all possible independence violations or disciplinary actions that may
be imposed when apparent violations of the firm’s independence policies occur.

12. Grievances:

If you have any grievance, you may apply to the PPC Partner, Mr. Ali Ashfaq.

13. Termination or cessation of employment:

The length of notice required to be given either by you or by the Firm is as set out below:

c) At least one week's notice if employment is to cease within the probationary

period.

d) At least one month's notice if employment is to cease after probationary period and
within four years after commencement.

e) At least one week for each completed year of continuous employment if employment
is to cease more than four years after commencement (up to a maximum of 12
weeks).

For both articled students and trainee accountants, the above periods will include articleship
or training contract period.

In the case of your deciding to leave RRH, the above minimum requirement may be waived
by any partner in appropriate cases.

14. Reference/recommendation:

RRH will not normally issue any recommendation or reference of any form (written or
verbal) to an existing employee unless he/she has worked for this firm for at least 12
months.

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15. Location of documents:

Unless specifically approved by a partner or manager, you must never take any client's
documents or our working papers and files to either a different client or to your home.

You must never take the original office copy of accounts or management report outside the
firm. Always take a photocopy.

Any breach of these conditions will be considered a serious offence.

Upon completion of the audit, all audit working papers must be submitted to the Filing
Assistant.

16. Annual evaluation:

All articled students, trainee accountants and course completed (CC) staff are evaluated in
January on their performance during the year just concluded. This evaluation will be done
first by Manager/Sr. Manager followed by their respective partner.

Managers and Sr. Managers will also be evaluated by their respective partner. Appropriate
forms shall be provided by Managers near to the time of the appraisals.

17. Continued professional development:

Professional staff must carry out continuous professional development (CPD) which is
relevant to them in their professional role and is sufficient to enable them to meet the
reasonable expectations of clients and be responsible for maintaining their own professional
development record.

All professional staff (including articled students and trainee accountants) need to comply
KPMG International’s minimum CPD requirements. In addition, professional staff holding
membership of professional bodies (such as ICAB, ICAEW and ACCA) need to comply
with CPD requirements imposed by the relevant body.

Accordingly, the CPD requirements for professional staff of RRH are as follows:

Designation Requirements
Member of professional bodies Higher of
CPD requirements for own professional qualifications
or
Minimum hours per year - 20
Average hours per year - 40
In consecutive 3 years - 120
Articled students/trainee Minimum hours per year - 20
accountants/others Average hours per year - 40
In consecutive 3 years - 120

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Section - 5

Independence and Ethics

Code of conduct and fundamental principles

Introduction

i) Objectivity is a concept fundamental to the accounting profession. It is essentially an

attitude of mind characterised by integrity and an impartial approach to professional
work.
ii) An auditor should be, and be seen to be, independent and free of any financial or
commercial involvement with or in the affairs of clients. The fact that this is self-
evident in the case of audits must not obscure its relevance to all professional work.
iii) It is the responsibility of the individual accountant to preserve his or her objectivity and
independence at all times. Where necessary the individual should consult with the
designated partner in his national practice.
iv) For US SEC registrants, different/additional independence rules may apply. In many
cases the group auditor agrees such rules with the client developed in line with
Sarbanes-Oxley Act of US, etc. For US SEC registrants, such rules must be complied
with in addition to rules outlined in this section. Library has a copy of Sarbanes-Oxley
Act.

Contact details of Risk Management and Ethics & Independence Partner

Adeeb H. Khan (Risk Management and Ethics & Independence Partner)

Contact details:

Rahman Rahman Huq

9 Mohakhali C/A
Dhaka – 1212
Phone: (02) 9886450-52

Comply with fundamental principles

All KPMG personnel shall comply with the following fundamental principles:
 Integrity;
 Objectivity;
 Confidentiality.

In addition, KPMG personnel shall perform their duties responsibly and competently with
diligence, consistent with the responsibilities and tasks assigned to them.

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KPMG professionals shall also comply with the following fundamental principles:
 Professional competence and due care;
 Professional behavior.

Integrity and objectivity

KPMG personnel shall maintain their integrity and objectivity, exercising a high standard of
professional and ethical judgment. They shall not engage in any business, occupation, or activity
that impairs or might impair the integrity, objectivity, or the good reputation of KPMG/RRH or
damage the KPMG/RRH brand.

Integrity

Integrity for KPMG means being consistently straightforward and honest in professional and
business relationships and not being associated with misleading information. Being associated
with misleading information includes being associated with reports, returns, communication, or
other information that:
 contains materially false or misleading statements;
 contains statements of information furnished recklessly;
 omits or obscures information required to be included, where such omission or obscurity
would be misleading.

Not being associated with misleading information also requires individuals to take steps to
disassociate themselves from that information once they become aware that it was misleading.
Consultation with the Risk Management Partner or Ethics and Independence Partner is
recommended.

Objectivity

Objectivity means not compromising professional or business judgment because of bias, conflict
of interest, or undue influence. It also means being independent in mind and in appearance.

Objectivity includes the requirements for professionals to:

 make their own judgments based on sufficient, credible, and relevant information;
 perform their work with an attitude of healthy skepticism;
 remain free of the undue influence of others;
 avoid or manage real or perceived conflicts of interest.
 Maintaining objectivity requires a professional not to provide, or be involved in providing, a
service if the professional lacks the required objectivity.

Review of personal investments and notification of reportable investments

KPMG professionals shall review their investments on a regular basis to verify that they are in
compliance with the applicable independence requirements and are to declare the same to the
Firm (via prescribed forms). KPMG professionals who self-determine or are notified by the
Firm that their investments in restricted entities violate independence policies are required to
dispose of such investments within 5 business days.

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Bribery and gifts / entertainment

Bribery

A bribe is an undue benefit offered or made to influence the conduct of any person including
(without limitation):
 a government or other public official;
 a private sector employee or entity, or
 a political candidate or political party,
in order to obtain or retain business or secure some other advantage, e.g. in connection with
regulatory permits, taxation, customs, judicial or legislative proceedings.

A bribe can be in many forms, including:

 cash;
 gifts or entertainment;
 services;
 payment of expenses relating to travel;
 granting more favorable credit terms than usual;
 political or charitable donations.

KPMG personnel shall:

 not offer, promise, make, solicit or accept bribes (whether directly or through an
intermediary such as a commercial agent) even if such conduct is legal or permitted under
applicable law or local practice;
 take care that any third party who acts on their behalf (e.g. agents, distributors, consultants
etc.);
 does not offer, promise, make, solicit or accept bribes on their behalf;
 avoid conduct that may give the impression of involvement in bribery.

Facilitation of payments

A facilitation payment is a small payment or a gift of small monetary value made to a public
official to secure or expedite the performance of a routine action commonly and ordinarily
performed by such an official to which the payer (or the person on whose behalf the payment is
made) is entitled.

KPMG personnel shall not make facilitation payments on behalf of a client or other third party
in any circumstances.

Gifts and entertainment

Gifts and entertainment can be anything of value.

KPMG personnel shall not, (whether directly or through an intermediary), offer, promise, make,
solicit or accept gifts or entertainment where:
 the monetary value, frequency, duration or nature is such as to cast doubt on the Firm;
 firm’s or individual’s integrity, independence, objectivity or judgment; or

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 the gift or entertainment constitutes a bribe under the policies above.

Holding client assets

The Firm and KPMG personnel shall not assume custody of client monies or other assets except
to the extent permitted by law, regulation or professional standards (including independence
requirements).

Cash handling

The Firm shall not provide any cash handling services to clients. Cash handling includes all
instances in which the Firm has possession of, or access to, client funds and includes:

 having authority to access or control a client’s bank account, or having check signing
 authority on a client’s account;
 making payments on behalf of a client, including having the ability to authorise wire
transfers or other forms of payment on behalf of a client; or
 receiving client funds for the purpose of making payments on the client’s behalf.

Inside information and insider trading

Inside information

Inside information is specific non-public information which relates to a relevant company or its
securities. Typically information will be “inside information” if, when made public, it may
have a significant impact on the price of the securities or investment and/or is information
which a reasonable investor would consider significant in deciding whether to buy, hold or sell
the securities or investment.

Common examples of inside information include the following (to the extent not in the public
domain):
• takeover offers or anticipated acquisitions;
• earnings forecasts or changes in previously announced earnings estimates;
• changes in dividends;
• insolvency or bankruptcy;
• the creation of significant new services or products;
• significant expansion or divestment plans;
• joint venture proposals;
• material litigation or investigation by government or regulatory authorities; and
• resignations of key executives or directors

Insider trading

Insider trading is the buying or selling of a security or investment (e.g. stocks, shares, bonds,
derivatives etc.) while in possession of inside information.

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Insider trading offences under applicable law may also encompass:

 “tipping off” another person (e.g. disclosing inside information to another person otherwise
than in the proper performance of your employment or profession); and
 trading by that other person once they are in possession of inside information.

KPMG personnel and member firms shall not:

1 Engage (directly or indirectly) in insider trading, misuse inside information or be involved

in any other behaviour that may create a misleading impression as to securities or otherwise
manipulate or distort the market; or

2 Require, request, assist or encourage any other person to engage in any of the conduct
described in (1) above, even if such conduct is legal or permitted under applicable law.

In order to avoid the appearance of insider trading, KPMG personnel shall not buy or sell the
securities of any client during the period they are providing services to that client.

Confidentiality and personal information

Disclosure of confidential information

KPMG personnel shall not disclose confidential information relating to client to anyone outside
the engagement team, except where:
 there is a professional duty to disclose information;
 disclosure is required law or by a legal or judicial process.

KPMG personnel shall take steps to maintain confidentiality at all times to avoid inadvertent
disclosure.

Personal information

All personal information, whether in electronic format or any other form, should be protected
from unauthorized destruction, disclosure, alteration, or access.

Personal information is defined as any information about an individual that could be utilized to
identify that person, or data subject. Such information may include, but is not limited to, a
person’s:
 name;
 address;
 telephone number;
 personal identification number
 (e.g. social security, passport or driver's license number);
 biographical information;
 investments;
 computer login names and passwords.

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Professional competence and behavior

Professional competence and due care

All KPMG professionals shall:

 maintain professional knowledge and skill at the level required to ensure that clients receive
competent professional service; and
 act diligently in accordance with applicable technical and professional standards when
providing professional services.

Professional Behavior

All KPMG professionals shall:

 comply with relevant laws, regulations and professional standards and avoid any action that
discredits the accounting profession;
 be honest and truthful in marketing and promoting themselves or KPMG;
 act in the public interest.

Continuing Professional Development Requirements

All KPMG professionals shall:

 comply with Continuing Professional Development requirements (CPD) of KPMG and their
professional body where relevant;
 be responsible for maintaining their own professional development records;
 be prepared to discuss their professional development records and plans with their
performance managers.
 Also see procedures around continued professional development in section 4.

Personal activities

Commercial activities

KPMG personnel shall not be employed by, or engaged on their own behalf in the business of,
any audit or assurance client of any KPMG member firm.

KPMG personnel shall not be employed, engaged, or involved in any trade, business or
profession external to the business of KPMG, except with the prior written consent of the firm’s
Ethics and Independence Partner.

Public, charitable or community activities

KPMG personnel shall obtain consent from the Ethics and Independence Partner before
accepting or undertaking public, political, charitable or community service appointments or
activities in their personal capacity where the appointment or activity is likely to involve
reference to their association with a KPMG member firm which could damage KPMG’s
reputation.

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Use of KPMG Name and Service Marks

KPMG personnel shall not use the KPMG / Rahman Rahman Huq name, service marks, logo or
other intellectual property or address of KPMG / Rahman Rahman Huq for any purpose other
than the business of the Firm.

Serving as a director or officer of a non-KPMG entity

Subject to ICAB restrictions, KPMG personnel shall not act as the director or officer of any
non-KPMG entity except for:
 a not-for-profit organization that is not an audit or assurance client;
 an entity established for personal family reasons that is not a client;
 appointments made in the normal course of conducting restructuring engagements.
 in rare cases, other directorships which are subject to the approval of the firm's Ethics and
Independence Partner.

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Independence – Assurance clients

Audit Assurance US SEC / US SEC Affiliate
(non-audit)
Financial Interest
Personal financial Partners of the Firm or any covered persons shall Same as for Same as for audit clients. In
interest (including have no direct financial interest or material audit clients addition, any KPMG firm
securities) indirect financial interest in an audit client. professional and their immediate
family members, collectively,
Where a member of the audit team knows that shall not have a combined
they or a close family member has a direct financial interest of 5% of more
financial interest or a material indirect financial in any SEC audit client.
interest in the audit client, that individual shall,
promptly on identification of such an interest,
inform the Lead Audit Engagement Partner or the
Ethics and Independence Partner of the nature of
such interest, as a self-interest threat is created.
They must also dispose of such interests at the
earliest but no later than 30 days. Such individual
if assigned to the client should immediately be
withdrawn from the engagement
Financial interests Only the Firm’s partners can accept appointment Same as for KPMG partners and staff are
held as a trustee of as trustees of non-KPMG entities. The Firm’s audit clients prohibited from holding financial
a client Partners or their immediate family shall not hold a interests in an SEC audit client
direct financial interest or a material indirect through a trust.
financial interest in the audit client as a trustee
unless all of the following conditions are met:
a) neither the trustee, nor an immediate family
member of the trustee, nor any KPMG
member
b) firm are beneficiaries of the trust;
c) the interest in the audit client held by the
trust is 10% or less of the trust’s total assets;
d) the trust is not able to exercise significant
influence over the audit client; and
e) neither the trustee, nor an immediate family
member of the trustee, can significantly
influence
f) any investment decision involving a financial
interest in the audit client.

Appointments are subject to the approval of the

firm’s Ethics and Independence Partner. In all
cases, the partner holding position of trustee may
not be involved in the audit of that trust.
Financial interests The provisions applicable to personal financial Same as for Same as for audit clients
in entities interests in audit clients also apply to financial audit clients
controlling clients interests in entities controlling audit clients
(directly or indirectly more than 50% of voting
control)
Loans and guarantees
Loans and Covered persons shall not have a loan, or a Same as for No covered persons shall have a
guarantees from a guarantee of a loan, from an audit client that is a audit clients loan from and SEC audit client or
bank or similar bank or similar institution that is not made under any officer, director or principal
institution normal lending procedures, terms and conditions stockholder thereof, subject to
generally available to the public. Examples of SEC rules around permitted loans
such loans include home mortgages, bank and grandfathered loans rules (see
overdrafts, car loans and credit card balances. GQRM section 20.3 for details).

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Audit Assurance US SEC / US SEC Affiliate

(non-audit)

Credit cards: The above rules

apply, in addition the maximum
limit of US$10,000 allowed for
balances to be rolled forward,
would need to be adhered to.
Loans and Covered persons shall not have a loan, or a Same as for Same as for loans and guarantees
guarantees from guarantee of a loan, from an audit client that is not audit clients from SEC audit clients.
audit clients that a bank or similar institution.
are not banks or
similar
institutions
Loans and Covered persons shall not make or guarantee a Same as for Same as for audit clients.
guarantees to, loan to an audit client. audit clients
deposits and
brokerage If a covered person, has a bank account (deposits)
(investment) or a brokerage (investment) account with an audit
accounts with, client that is a bank, broker or similar institution,
clients a threat to independence is not created if the
deposit or account is held under normal
commercial terms.
Family and personal relationships
Individual whose No individual shall be a member of the audit team Same as for Same as for audit clients.
immediate family who has an immediate family member who is: audit clients
member is a a) a director or officer of the audit client; or
director/officer or b) an employee of the audit client in a position
certain type of to exert significant influence over the client’s
employee of a financial position, financial performance or
client cash flows
c) an employee of the audit client in a position
to exert significant influence over the
preparation of
d) the client’s accounting records or the
financial statements on which the performing
member firm will express an opinion
or was in such a position during any period
covered by the engagement or the financial
statements.
Where a Partner or personnel of the Firm who is
not on the audit team has a personal (not family)
relationship with a director or employee of an
audit client in a position outlined above, upon
identification of such a relationship they should
immediately consult the Lead Audit Engagement
Partner or Ethics and Independence Partner.
Business Audit Assurance (non- US SEC / US SEC Affiliate
relationships audit)
Business No audit team member shall have a close business Same as for Covered persons shall not have
relationship relationship with the audit client or its audit clients any direct or material indirect
between an audit management that arises from a commercial business relationships with an
team member or a relationship or common financial interest, unless SEC audit client or with persons
member of their any such financial interest is immaterial and the associated with the client in a
immediate family relationship is insignificant to that individual. decision-making capacity
and an audit client (associated persons include an
If an immediate family member of a member of SEC audit client's officers,
the audit team has such a business relationship, directors, and substantial (5% or
then the significance of any threat shall be more) shareholders) other than as

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Audit Assurance US SEC / US SEC Affiliate

(non-audit)
evaluated by the Lead Audit Engagement Partner a consumer in the ordinary course
in consultation with the Ethics and Independence of business.
Partner and safeguards applied when necessary to
eliminate the threat or reduce it to an acceptable Prohibited relationships include
level. but are not limited to the
following:
An example of such a close business relationship joint ventures, joint marketing
is having a financial interest in a joint venture arrangements, limited partnership
with either the client or a controlling owner, agreements, contractor/
director, officer or other individual who performs subcontractor relationships,
senior managerial activities for that client. investments in supplier and/or
customer companies, leasing
interests (except for immaterial
landlord/tenant relationships).
Employment with a client and recent service with an audit client
Notification of Any KPMG Partner or professional staff shall Same as for Any KPMG Partner or
employment promptly notify the Ethics and Independence audit clients, but professional staff shall promptly
negotiations with a Partner (as per appendix E) if they intend to enter restrictions notify the Ethics and
client into employment negotiations with an RRH audit apply only for Independence Partner (as per
client that is either currently an audit client or to the duration of appendix E) of any contact or
whom RRH has provided audit services in the last the assurance conversation held with an SEC
twelve months. engagement. audit client regarding
employment, regardless of
As soon as such notification is given, the partner whether they intend to enter
or professional staff member should cease to have negotiations with the client.
any involvement in the audit of or other services
for that client. As soon as such notification is
given, the partner or professional
staff member should cease to
have any involvement in the audit
of or other services for that client.
Employment of No former member of the audit team or former Same as for KPMG professionals accepting an
former KPMG partner of the performing member firm shall join audit client accounting role or a financial
partners and audit the audit client as a director or officer, or as an reporting oversight role with a
team members by a employee in a position to exert significant restricted entity shall terminate all
client influence over financial relationships with the
the subject matter information of the audit Firm
engagement, unless:
a) the individual is not entitled to any benefits
or payments from the performing member
firm, unless made in accordance with fixed
pre-determined arrangements, and any
amount owed to the individual is not material
to the performing member firm; and
b) the individual does not continue to
participate or appear to participate in the
performing member firm’s business or
professional activities.
Employment with Public interest entities only
an client – In additions to the provisions of the above policy Not applicable No KPMG professional
(“cooling-off” relating to notification of employment (including partners) who is a
provisions) negotiations, the following requirements apply to former member of the audit team
Key audit partners and members of chain of shall join an SEC audit client at
command of audit clients that are public interest the issuer level in a financial
entities. reporting oversight role within the
Key audit partner "cooling-off" period.
A key audit partner for an audit client that is a

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(non-audit)
public interest entity shall not join that client as: The “cooling-off” period begins
a) a director or officer of the entity; or the day after the client files its
b) an employee in a position to exert significant annual report with the SEC for
influence over the preparation of the client’s the latest year for which the
accounting records or the financial individual has performed any
statements on which the KPMG member audit procedures and extends to
firm in which the individual was a partner the date the next annual report is
will express an opinion filed.

unless, subsequent to the partner ceasing to be a

key audit partner, the public interest entity has
issued audited financial statements covering a
period of not less than 12 months and the partner
was not a member of the audit team with respect
to the audit of those financial statements.

Chain of command
A member of the chain of command for an audit
client that is a public interest entity shall not join
that client as:
a) an employee in a position to exert significant
influence over the preparation of the entity’s
accounting records or its financial
statements; or
b) a director or officer of the entity

unless 12 months have passed since the individual

was in a position in the chain of command.
Acting as Partners or staff accepting appointment as Same as audit clients
Secretaries secretary of an audit client is prohibited.
Recent service with It sometimes happens that a former employee of a Same as for An individual who was
a client client will join the staff or partnership of the firm. audit clients previously an officer, director or
Such a former employee should generally not employee of an SEC audit client
participate in the client's audit until he or she has shall not participate in, or be in a
been with the firm for at least two years. position to influence, the audit
engagement for that client if any
of the procedures included in the
audit engagement cover any
period of time for which the
individual was employed by or
associated with that client.

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Definitions:

Covered person

A covered person is:

 a member of the audit team;
 a partner located in the office in which the LAEP practices in connection with an audit;
 a partner or managerial employee who provides ten or more hours of non-audit services to the
audit client; and
 the immediate family of any of the above.

Key Audit partner

The engagement partner, the individual responsible for the engagement quality control review,
and other audit partners, if any, on the engagement team who make key decisions or judgments
on significant matters with respect to the audit of the financial statements on which the firm will
express an opinion. Depending upon the circumstances and the role of the individuals on the
audit, “other audit partners” may include, for example, audit partners responsible for significant
subsidiaries or divisions.

Chain of Command

Those within the KPMG member firm who can directly influence the outcome of the audit
engagement, including those who:
 recommend the compensation of, or who provide direct supervisory, management or other
oversight of the LAEP in connection with the performance of the audit engagement. This
includes those at all successively senior levels above the LAEP through the member firm's
chief executive/senior partner;
 provide consultation regarding technical or industry specific issues, transactions or events
for the audit engagement;
 provide quality control for the audit engagement (including where applicable the EQCR
Reviewer); and

All those within another member firm, who can directly influence the outcome of the audit
engagement.

The chain of command will not extend beyond a KPMG member firm to KPMG International or
any of its officers or employees.

Conflicts of interest

a) On discovering a potential conflict of interest, the first consideration must always be

whether it will, in fact, impair objectivity. If, after consulting the Risk Management
Partner and another partner, the partner responsible believes that neither he nor the firm
will be able to act objectively, then the work must be declined. In cases where the firm
considers that it will be possible to act objectively in the matter, then the engagement can
be accepted provided:

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 the nature of the conflict is fully explained to each party for whom the member firm
will be acting or through whom the conflict arises, and who will receive and rely
upon the firm's report or advice;
 the parties agree in writing that the firm may act;
 where two parties are to be separately advised by the firm, different partners deal
with the work for each client;
 where the firm is resolving a dispute, the partner responsible for the work is not the
one who regularly deals with the affairs of either party, unless he or she is
specifically requested to act by both parties; and
 any partner through whom the conflict arises has no involvement in the firm's work
on that particular assignment.

b) Under certain circumstances, the report issued by the firm should refer to the conflict and
should include a restriction on its circulation. This restriction should be in the form -"this
report is for your information only and must not be shown to anyone else without our
prior consent". In the event that such a restriction is not acceptable to one of the parties,
the firm must decline to act.

c) Appointment of a partner as receiver or liquidator (or appointments of a similar nature)

may give rise to potential conflicts of interest, for example, when a partner or firm has
had a previous professional relationship with the party concerned or when the partner
may be expected to have to sue a client of a firm. Partner approached for such
appointment must give proper consideration to potential conflicts and consult with Risk
Management Partner and another partner before the appointment is accepted.

Confirmation of compliance and actions to be taken in case of non-compliance

This section of the office manual contains KPMG International's minimum policies. The firm
may itself be subject to more stringent local regulations, or it may have clients subject to a more
stringent foreign jurisdiction [for example, the requirements of the U.S. Securities and
Exchange Commission (SEC)]. Advice as to the application and interpretation of ethics and
independence rules and regulations of a foreign regime is sought from the Risk Management
Partner (RMP).

Prospective partners and professional staff members should be informed of the firm's policies
on independence and ethics. Upon acceptance of employment partners and professional staff
are required to sign a confirmation that they are in compliance at that time. Thereafter,
partners and professional staff members are required to sign an annual confirmation. Such
confirmations will enable RRH to affirm its independence to KPMG’s International
Headquarters.

In case of any non-compliance with the terms stated in section of the Office Manual must
immediately be brought to the notice of the engagement manager or audit in-charge of the
concerned audit with respect to which the issue arise.

Audit manager or audit in-charge on receipt of such information or where they are involved
must immediately inform the RMP and engagement partner in writing the issues relating to such
contravention.

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Section – 6

Sentinel

Purpose of Sentinel

Sentinel facilitates compliance with the KPMG International Policies on Lead Partner Approval
and identification and management of potential conflicts of interest.

Sentinel was initially developed to support compliance with the Audit Committee pre-approval
requirements of the US Sarbanes-Oxley Act. It now includes functionality to facilitate
identification and management of potential conflicts of interest as well as supporting Lead
Partner approvals under other regulatory regimes and for strategic purposes. The system
provides business rules and workflows to support both Lead Partner approval and conflicts
management processes.

The approvals and conflicts of interest processes of Sentinel run in parallel. A positive response
from both processes is required before a Sentinel Approval Number can be issued.

Requirement

A Sentinel Approval Number (SAN) is required for every potential engagement. Before an
engagement can be set up in our firm's practice management system, it must be entered into
Sentinel and a SAN obtained.

When working on an assignment, if you find SAN has not been obtained, you must immediately
report in writing to engagement manager. Engagement manger will report to engagement partner,
risk management partner and ethics and independence partner.

Non-compliance

This is a critical KPMG process; non-compliance may lead to termination of employment.

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Section - 7

Associating RRH with other Activities

Professional and Personal Activities

The firm’s personnel are prohibited from engaging in personal business activities that result in
the perception that they are holding themselves out as RRH firm.

The firm and personnel are prohibited from agreeing to the use the firm offices as post restante
(postal address) facilities for clients or non-clients, except in rare cases where it is part of the
firm’s services being provided to the client and engagement acceptance procedures have been
conducted. The personnel are prohibited from providing professional services to the clients and
non-clients for their own account or from otherwise providing or offering to provide services in
competition with any KPMG firm.

The personnel are prohibited from using the RRH/KPMG name, services marks, premises, or
other personnel in any personal or commercial activity external to the firm’s business.

Use of Firm Name or Service Marks

The personnel are prohibited from using the firm’s letterhead, facsimile coversheets, or other
correspondence containing the firm's name or service marks for personal use. In the case of e-
mail and internet facilities, incidental personal use may be permitted so long as it does not
consume excessive resources, it does not interfere with individual productivity, and it does not
preempt any business activity. Automatic attachments, such as auto signatures to e-mails that
contain the KPMG name or service marks are deleted from personal e-mail.

If there is doubt as to what constitutes personal use of RRH/KPMG firm letterhead or logo, the
RMP should be consulted.

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Section - 8

Known or Suspected Noncompliance Laws and Regulations

Reporting of Suspected Noncompliance of Clients or Third Parties

Acts of noncompliance with laws and regulations committed by clients, or third parties
associated with a client, that RRH personnel learn of or suspect during an engagement are to be
promptly brought to the attention of the engagement partner, who will then reports it to the Risk
Management Partner.

Compliance with Laws, Regulations, and Professional Standards by RRH Personnel

The personnel will comply with applicable laws, regulations, and professional standards. The
personnel must be aware that, in addition to local laws, regulations, and professional standards,
there may be laws, regulations, and professional standards of other jurisdictions that are
applicable.

Suspicion of Noncompliance by RRH Personnel

If any personnel suspect that any other personnel is engaged in activity that may be non-
compliant with laws, regulations, or professional standards, it must be promptly brought to the
attention of the engagement partner, who then reports it to the Risk Management Partner. In the
event that the engagement partner appears to be the party involved, a report is made directly to
the Risk Management Partner or senior partner.

Requests to Appear as a Witness

If the firm’s personnel are required to appear as witnesses against a client, client personnel, a
third party associated with a client, or another KPMG employee suspected of noncompliance
with laws or regulations, they must consult with the Risk Management Partner.

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Section – 9

Litigation Pending or Threatened Claims

The firm’s personnel will immediately report any situation in which litigation is commenced, a
claim is made against the firm, or circumstances arise that might give rise to a claim against the
firm to the senior partner and Risk Management Partner.

A claim will include a:

• Writ, summons, or complaint served on a the firm or its personnel
• Lawyer's letter or written or oral advice from a client or third party advising the firm or any
of its personnel of a proposed action or claim

Reporting of Claims and Circumstances (C&Cs)

Partners will have the principle responsibility for reporting C&Cs to the senior partner and
RMP. When other members of staff become aware of potential C&Cs, they will report this to
the engagement partner and/or senior partner.

In any case of alleged negligence or possible negligence, no admission of liability is to be made

to any person either explicitly or implicitly without the authority of the senior partner and RMP.

Information to be Provided

When notifying of a claim or circumstance, the following minimum information will be

required.

Client details:
• Name of the client
• Type of work performed (e.g., audit, tax, consulting, etc.)
• Brief indication of business of the client
• Connections of client or its group with other KPMG firms, if known
• Whether the client or a member of its group has issued securities that are publicly traded.

RRH details:
• Engagement partner at the time referred to in the claim or circumstance
• Present engagement partner, if different.

Complainant details:
• Name of the complainant(s) or potential complainant(s), if different from the client
• Geographic location of complainant(s)
• Relationship or association of complainant(s) with the client, as well as with KPMG
• Date of complaint and period of work done
• Copy of statement of claim or complaint, if available.

A brief and factual note setting out the background and the work that may be called into
question is to be provided. However, care is to be taken not to include any report, commentary,
or opinion on the merits or otherwise of the claim or circumstance.

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Section - 10

General Office Administration Procedures

A. Appearance:

General appearance of members of the Firm is extremely important and care must be taken
that the appropriate dress is worn to maintain a professional standard at all times.

All male employees must comply with the following requirements:

1. Unless you maintain a beard or moustache, you must always be clean shaved.

2. Full foot covering shoes are the only acceptable form of footwear, unless attending
stock-takes when other forms of footwear may be more appropriate.

3. Those who have been supplied with uniforms must always wear them when on duty.

Female employees will be expected to dress modestly with tied hair if it extends beyond the
shoulder.

B. Non-availability of resource personnel:

If an employee is / will be unavailable, he s/he must notify the relevant Manager or partner
immediately.

C. Roster for peons’ duties:

Office Manager will prepare a duty roster for all peons. Any non-compliance without prior
leave approval may result in deduction from salary.

D. External procedures:

1. Never make or receive personal phone calls at client's premises, unless essential.

2. Business calls must also be kept to a minimum. Come to RRH office for that
purpose.

3. Always seek client's permission before making an outgoing phone call from client's
premises.

4. Under no circumstances should you receive personal visitors at client's premises,

including other RRH staff not involved with that client.

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5. If you are the team leader on site, in the event that you will not be attending client's
offices the following day, or will be late, inform your contact at clients. If you are not
the leader on site, inform leader on site.

6. Never smoke when you are at client's premises.

7. Always comply with all of client's security procedures e.g. signing in and out,
security badges etc.

DO NOT ABUSE CLIENT'S HOSPATILITY.

DO NOT EMBARASS THE FIRM.

E. 1. Correspondence files:

These files must never be taken out of RRH.

At the end of the day, return all correspondence files to the filing assistant.

2. Office copy of client’s financial statements:

These must NEVER be taken out of RRH. If you need to have the information, take a
photocopy.

F. Health and safety at work:

1. No cooking must be done at the office.

2. Waste food must be properly cleaned up.

3. You are requested to avoid, so far as possible, any strong smelling foods.

4. Inform office manager immediately, if you come across faulty plugs, or equipments
or any situation which could be hazardous.

5. Extinguish all cigarettes properly.

6. In the event of fire,

 act quietly and calmly;

 do not use the lift;
 do not stop to collect personal belongings;
 leave the building and proceed to the assembly point (in from of Venture Tower
for Dhaka office and in front of World Trade Centre for Chittagong office)
where the roll will be called;
 if possible, call fire brigade at 9898187 (Tejgaon)

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G. Visitors:

Personal visitors are normally discouraged. This is especially so after office hours.

If you receive a visitor, who is not a former RRH employee or a frequent visitor to the
Firm, it is your responsibility to escort the visitor at all times whilst they are on the Firm's
premises, and see them safely off the premises when they leave.

H. Electrical equipment:

Always switch off all electrical equipment e.g. lights, computers, air-conditioners,
electronic calculators etc. when not using them for a prolonged period, and certainly so if
you are leaving the office.

I. Telephone:

Telephone calls are usually the most common direct contact that we have with our clients
and associates. The partners consider good telephone manners to be an essential part of
professionalism.

Comply with the following requirements:

1. If picking up an incoming call at the reception, say either "Rahman Rahman Huq" or
"Assalam Walaikum".

2. PABX is NOT to be left unattended during office hours.

3. If you ask a client to "hold", ensure that he is responded to within one minute. In the
event that you cannot locate the required person within one minute, apologise to the
client for keeping him on hold and ask him whether you should continue searching or
take a message.

4. It is essential that all messages, business or personal, are relayed promptly to the
appropriate person. If the person happens to be at client's premises, call him at client’s
office to pass on the message if it is urgent. If not urgent, leave a note either on his
desk or with somebody who will deliver the message to the appropriate person.

J. Post and courier service:

All post received in the office should be handed to one of the partners for opening.

RRH uses DHL for international parcel or post delivery. Inform Office Manager when this
service is required.

For inland courier service, speak to Filing Assistant for Dhaka office and Office Assistant
for Chittagong office.

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K. General conduct within the office:

1. Shouting or talking in loud voice is strictly forbidden during office hours.

2. Group (four people or more) personal discussions must be avoided during office
hours. In general, apply common sense when indulging in personal conversation.

3. Maintenance of decency around the reception area is essential. This means:

 DO NOT loiter about there.

 DO NOT engage in unnecessary conversation with the telephone operator.
 NEVER shout or talk in a loud voice in that area.

4. If you see that a visitor has remained unattended in the reception area for longer than
15 minutes, take the initiative and ask the visitor whether he needs any help or
assistance.

L. Private property:

The Firm cannot expect responsibility for any loss or damage to private property and you
are requested to take proper care of your personal effects. If you discover misplaced cash or
other valuables, hand it over to a partner.

M. Outstation expenses:

In our type of work, the most common types of expenses are for travelling, accommodation
and subsistence. These tend to be incurred primarily by Professional Staffs

The following is the maximum entitlement for expenses incurred outstation:

Mode of Accommodation per Subsistence (per

travel night diem)
Personnel BD Abroad BD Abroad
Director Air Tk 5,000 US $150 Tk 2,000 US$ 75
(Economy)
Sr. Manager Air Tk 3,000 US$ 100 Tk1500 US$ 50
(Economy)
Manager/Qualified Air Tk 1,500 US$ 80 Tk 750 US$ 40
Chartered Accountants (Economy)
Course Completed Coach/Train Tk 800 US$ 50 Tk 600 US$ 40
Staff
Articled/Trainee Coach/Train Tk 800 US$ 50 Tk 600 US$ 40
Students

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If higher allowances than above are required, obtain permission from the engagement
partner BEFORE you travel/incur the expenditure.

 If you are staying with a friend or relative, and will not be incurring accommodation
and subsistence expenses, the above entitlement is halved.

 Where charges are to be borne by the client, Senior Managers are entitled to air travel
outside Bangladesh using business/executive class.

 Above rates will not apply when in foreign trips the client/trip organiser specifies
accommodation and meals.

 Expenses claims, duly documented, must be reviewed by engagement manager and

then approved by the relevant partner or their designee before they are settled.

 In exceptional circumstances, above entitlements can be amended by the engagement

partner.

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Section - 11

Working Papers

RRH working papers are any documents produced or acquired by it, whether from the client or
third parties, during the course of an engagement that are used or developed in the process of
performing that engagement and fulfilling the firm's responsibilities under that engagement.
They include, among other things, copies of client-prepared documents or schedules, internal
memos, external correspondence with the client and relevant third parties, and final
deliverables.

Please note that whilst the below requirements apply to working papers outside of eAudIT,
KAM requirements as reflected in eAudIT should also be followed for audit engagements and
related working papers.

Filing and Maintaining Working Papers

RRH produces, files, and maintains working papers to support their engagement deliverables.

Review of Working Papers

Engagement partners are responsible for the review of the working papers and satisfying
themselves that the working papers meet KPMG standards and the requirements of relevant
laws and regulations.

Confidentiality of Working Papers

All working papers, reports, and other documents, including copies of client-prepared
schedules, whether in hard copy or any other form are confidential, are the property of RRH,
and are to be protected from loss, unauthorized destruction, or unauthorized access.

Retention and Destruction of Working Papers

Working papers are likely to fall into one of the following categories:

• Current work files (for example, a current audit file or tax computation file)
• Review notes
• External correspondence
• Engagement deliverables
• Permanent files.

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Category Document Types (examples) Recommended Retention

Period
Current work files Current audit file (including work 6 years from completion of
programs, strategy, and plan, etc.). the work unless a higher
Consulting or tax project file retention period is required
by any legislation or the
Group Auditors, for that
period
Review notes and draft Review notes of work performed or Not retained once cleared
deliverables draft deliverables and all draft
deliverables
External Engagement-specific correspondence 6 years after the
correspondence with the client (including electronic correspondence was dated
communications) engagement letters,
copies of final deliverables, copy fee (Electronic communications
notes, and correspondence with other are printed and filed and the
client advisers or third parties original version purged from
the storage media in which it
is held.)
Engagement Final reports, advice letters, 6 years
deliverables management letters, slide
presentations, and e-mails containing
final advice.
Permanent files Files containing client data of Indefinitely while the
continuing usefulness, such as the connection with the client
client's articles of association, location continues
maps, press clippings, and other
background information concerning (Where the client relationship
the client is terminated, retain until the
working papers for the last
engagement for the client are
destroyed.)

Note: Audit work papers for affiliates of US listed companies, please note these need to be
retained for seven years.

The Risk Management Partner is responsible for establishing policies for the destruction of
working papers and other documents once the retention period has expired.

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Release of Working Papers and Reports

Requests by third parties for access to RRH working papers or additional copies of engagement
deliverables are only granted after consultation between the engagement partner and the Risk
Management Partner. Specific legal advice is required before the release of any document where
a claim or circumstance is known to have arisen.

Claims and Circumstances

Where a claim or circumstance is known to have arisen, no working paper is permanently

removed from a file or destroyed without prior consultation with RMP, irrespective of the
RRH's standard retention policy, until the claim or circumstance is closed.

Working papers can be in hard copy form or in intangible form, such as electronic files
(including on CD-ROM or disk and network drives) or electronic mail.

Confidentiality

All working papers remain the property of RRH unless otherwise indicated by contract, local
policy and guidance, or laws and regulations.

Working papers contain information confidential to both the client and to the firm, and therefore
are to be kept confidential. All reasonable efforts are made to protect the confidentiality of
working papers.

Working papers should not be accessible to unauthorized personnel. Working papers should be
stored at client premises only in circumstances where their access is, unless alternative
arrangements have been agreed with the client, at all times under the control of RRH personnel.

Working papers in any format are not left unattended in motor vehicles, trains, planes, or in any
other public place.

Filing and Maintaining Working Papers

Working papers that support key observations or conclusions made during an engagement
should be filed as required by relevant RRH policy and guidance and relevant law and
regulations.

All engagement files should be maintained to prevent their loss or unauthorized access or
destruction, including measures to minimize fire or other accidental damage or destruction. In
addition, electronic working papers including eAudIT files should be backed up timely on the
Firm’s server as per RRH IT policy.

At the end of the retention period, working papers subject to the authorization of a RRH partner,
may be destroyed following a process established by RMP.

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If the retention period for an originating office is longer than for a participating office, the
originating office may require the participating office to hold the working papers to their
retention period.

Access to Working Papers and Deliverables by Third Parties

RRH often receive requests from clients and others for access to their working papers or
additional copies of deliverables that go beyond what is required of RRH in any contract term or
legal, professional, or regulatory standard. All such cases should be referred to the engagement
partner and RMP, who approve a response (including whether or not release is acceptable).

The following working papers should not be provided to third parties unless required by law:

• Client service working papers such as budgets, time and fee information, and client service
plans

• Engagement programs

• Proprietary software and other proprietary documents (e.g., KPMG methodologies)

• Engagement personnel records, including appraisals

• Any working papers specifically identified by the client

• Any working papers specifically identified in function manuals.

For accessing work papers etc., please follow the following guidelines:

• Managerial persons will have full access to work papers, correspondence files and
permanent files of the clients they are working on.

• Seniors (CCs) will have access if so permitted by a managerial person. Nobody

(professional staff) below CC will have access to any files.

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Appendix A

Monthly Time Sheet

Name ____________________________________ Month ____________________
Staff No. _______________ Group ____________ Available Time _____________

Closing
Client Job 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Total
date

Unassigned and others

Leave

TOTAL

Authorisation

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Appendix B

Leave Application

Name: For official use only

Designation: Leave position
Period: From: To: Earned Casual Sick/Comp.
Total day(s):
Reporting on:
Type(s) of leave: Has he/she reported on due date?

Address during leave: Yes No

If not when:

How will overstay be dealt with?

Posting remarks:

_____________________
Signature of applicant

_______________
Date
Granted by ________________________

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Appendix C

Notification of interest upon resignation / employment negotiations

 To be completed by all employees leaving RRH

 Please tick (√) one of the options of section (A) listed below if you are leaving RRH to join
a current RRH audit client or for whom RRH has carried out an audit in the last twelve
months.
 Please tick (√) section (B) if you are leaving RRH and NOT joining a current RRH audit
client or for whom RRH has carried out an audit in the last twelve months.
 Must be delivered to the partner you normally report to.
 Must be submitted with letter of resignation or when contemplating leaving RRH, if earlier.
 Instruction to partner: After dealing with the information contained in this form, it must
be filed with the personal file of the employee concerned.

Section (A)

1. I intend to or have commenced employment negotiations with a RRH client whose audit is
ongoing, and I am a member of the audit team. The name of the client is______________
______________________.

 Engagement partner must immediately remove him/her from the audit team and have all
work done by him/her reviewed by the team leader.

2. I intend to or have commenced employment negotiations with a RRH client whose audit is
ongoing, and I am not a member of the current audit team. The name of the client is ______
_____________________________.

 Engagement partner must make this information known to the team leader to ensure the
notifying employee has no involvement in the current audit.

3. I intend to or have commenced employment negotiations with a RRH client whose audit is
not currently ongoing. I was a member of the RRH team for their last audit. The name of the
client is ______________________________.

 If the last audit engagement was concluded within the last three months, the engagement
partner must consider whether the work done by the notifying person needs to be reviewed
again.
 Engagement partner’s decision (Please tick): (1) Review work (2) Review not necessary.

4. I intend to or have commenced employment negotiations with a RRH client whose audit is
not currently ongoing. I was not a member of the RRH team for their two most recent
audits. The name of the client is______________________________.

 No action required.

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5. I have accepted an offer for employment from a RRH client whose audit is ongoing, and I
am a member of the audit team. The name of the client is_________________
________________.

 Engagement partner must immediately remove him/her from the audit team and have all
work done by him/her reviewed by the team leader.

6. I have accepted an offer for employment from a RRH client whose audit is ongoing, and I
am not a member of the current audit team. The name of the client is_______________
_____________________.

 Engagement partner must make this information known to the team leader to ensure the
notifying employee has no involvement in the current audit.

7. I have accepted an offer for employment from a RRH client whose audit is not currently
ongoing. I was a member of the RRH team for their last audit. The name of the client
is______________________________.

 If the last audit engagement was concluded within the last three months, the engagement
partner must consider whether the work done by the notifying person needs to be reviewed
again.
 Engagement partner’s decision (Please tick): (1) Review work (2) Review not necessary.

8. I have accepted an offer for employment from a RRH client whose audit is not currently
ongoing. I was not a member of the RRH team for their two most recent audits. The name
of the client is______________________________.

 No action required.

Section (B):

 I confirm that I am not joining any RRH audit client.

_______________________________ (Signature of notifying staff)

Name: __________________________

Date: ___________________________

Initials and date of responsible partner: ___________________________

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