Internal Control Reporting: A Study on Dhaka Stock Exchange 30 Index

This report aims at showing an overall picture of the internal control reporting practice of DS 30 (constructed with 30 leading companies, which can be said as an investable index of the Dhaka Stock Exchange). This study covers five years’ (2014 to 2018) annual reports of each of the companies included in DS 30. The sample includes 147 firm years. Content analysis has been conducted considering 10 disclosure issues to show the effectiveness of the internal control reporting practice of DS 30. Study findings claim that 97% of the DS 30 include management reports regarding internal control mechanisms in their annual reports. However, different companies report the respective companies’ internal control scenario under different names and in different formats, so there is limited scope for comparability. A significant number of companies have included detailed descriptions of various components of their internal control system. In contrast, others used just a few sentences. Overall, the study results reveal that despite some inherent limitations, internal control reporting practice of DS 30 is increasing with time.