Internal Control Practices of Readymade Garments Sector (Textile Industry) in Bangladesh


  • Anup Kumar Saha Jagannath University
  • Kartik Chandra Mondal ASA University Bangladesh



Readymade Garment (RMG) Industry, Internal Control (IC), Grievance Procedure, Corporate Code of Conduct, Cost-Benefit Analysis


Internal control has a pivotal role in ensuring sustenance of any industry because it plays an important role in preventing and detecting fraud and protecting the organization's resources. This study has found many factors that are relevant for internal control practices in readymade garments (RMG) sector. These vary from maintenance of employees’ job description to bonding employees with special access. In many variables these companies are practicing acceptable level of internal control, while in some they are not doing so good and have ample scope to improve that level. RMG sector is mainly populated with sole proprietorship firms and they do not allocate much resource to such practice. Even then the concern for internal control has to be implemented to ensure long lasting role in the economy.


Download data is not yet available.

Author Biographies

Anup Kumar Saha, Jagannath University

Department of Accounting and Information Systems, Jagannath University, Dhaka, BANGLADESH

Kartik Chandra Mondal, ASA University Bangladesh

Faculty of Business, ASA University Bangladesh, Dhaka, BANGLADESH


Ashbaugh-Skaife, H., Collins, D., Kinney, W., LaFond, R., 2008. Internal control deficiencies, remediation and accrual quality. The Accounting Review 83 (1), 217–250.

Beneish, D., Billings, M., Hodder, L., 2008. Internal control weaknesses and information uncertainty. The Accounting Review 83, 665–703.

Birnberg, J.B., Shields, M.D. and Young, S.M. 1990. The case for multiple methods in empirical management accounting research (with an illustration of budget setting). Journal of Management Accounting Research, Fall, 33-66.

Delahanty, Julie, 1999. A Common Thread: Issues for Women Workers in the Garment Sector, report prepared for the Global Markets Programme of Women in Informal Employment: Globalizing and Organizing. Ottawa, North-South Institute.

DeFond, M., Raghunandan, K., Subramanyam, K.R., 2002. Do nonaudit service fees impair auditor independence? Evidence from going concern audit opinions. Journal of Accounting Research 40, 1247–1274.

Doyle, J., Ge, W., McVay, S., 2007b. Determinants of weaknesses in internal control over financial reporting. Journal of Accounting and Economics 44, 193–223.

Feng, Mei; Li, Chan and McVay, Sarah, 2009. Internal Control and Management Guidance. Journal of Accounting and Economics, pp 1-50.

Haider, Mohammed Z., 2007. Competitiveness of the Bangladesh Ready-made Garment Industry in Major International Markets, Asia Pacific Trade and Investment Review, Vol 3 No 1, June. Pp3-26.

Lang, M., Lundholm, R., 1996. Corporate disclosure policy and analyst behavior. The Accounting Review 71 (4), 467–492.

Neimark, M. & Tinker, A.M. 1986. The Social Construction of Management Control Systems. Accounting, Organisations & Society, 11, 4-5: 369-395.

Paul-Majumdar, Pratima, 2001. ‘Occupational Hazards and Health Consequences of the growth of garment industry in Bangladesh’, in Pratima Paul-Majumdar and Binayak Sen, eds., Growth of Garment Industry in Bangladesh: Economic and Social Dimensions (Dhaka, Bangladesh Institute of Development Studies and Oxfam GB, Bangla-desh).

Robbani, M Golam, 2000. World Trade Organization and The Readymade Garment Industry of Bangladesh: A critical Analysis, Journal of Bangladesh Studies, University of Pennsylvania, USA, pp 16 - 27.

Rogers, J., Stocken, P., 2005. Credibility of management forecasts. The Accounting Review 80, 1125–1162.

Wilkinson, Joseph W. and Cerullo, Michael J., . Accounting Information Systems, Fourth edition, John Wiley & Sons, Inc. pp 247-364.

Willis David M. and Lightle Susan S., 2000. Management Reports on Internal Controls- What do they say about your company?, Journal of Accountancy, AICPA





How to Cite

Saha, A. K., & Mondal, K. C. (2012). Internal Control Practices of Readymade Garments Sector (Textile Industry) in Bangladesh. Asian Business Review, 1(1), 67–71.