2007年-世界发展银行全球_Bangladesh_-_Public_Sector_Accounting_and_Auditing___A_Comparison_to_International_Standards_82页_4mb

Summary of Bangladesh Public Sector Accounting and Auditing: A Comparison to International Standards

Core Content

This report evaluates the current state of public sector accounting and auditing in Bangladesh against international standards, aiming to improve Public Financial Management (PFM) and ensure greater transparency, accountability, and efficiency in government spending. The assessment was conducted in collaboration with the Government of Bangladesh (GoB), stakeholders, and development partners, and includes input from a consultative workshop held in August 2006.

Main Objectives

• To provide a well-founded understanding of where Bangladesh stands in terms of public sector accounting and auditing practices relative to international norms.
• To assess variances in current practices and identify areas for improvement.
• To outline a path for the gradual adoption of international standards.
• To establish a continuing basis for measuring progress in reform.

Key Findings

Accounting Standards

• Bangladesh does not currently comply with the Cash Basis IPSAS in its annual accounts.
• The International Public Sector Accounting Standards (IPSAS), issued by the International Federation of Accountants (IFAC), are considered authoritative and should be adopted.
• There is a need to transition from cash-based to accrual-based accounting, which provides a more accurate reflection of financial health by recognizing all assets, liabilities, and true costs.
• The Ministry of Finance (MOF) has issued an order for the Controller General of Accounts (CGA) to prepare financial statements in accordance with the IPSAS Cash Basis.
• A committee, including the CAG, CGA, MOF, and professional accounting institutes, is to be formed by March 2007 to develop an action plan for adopting accrual accounting and to address legal formalities.
• The ICAB Code of Ethics partially aligns with international standards, and a code specifically suited to public sector accountants should be developed based on the IFAC Code.
• Accounting policies and explanatory notes are currently not provided in budget or accounts documents and need to be introduced to meet IPSAS requirements.
• Consolidated financial statements are not issued, and the first set of IPSAS-based statements for core ministries is expected for FY07-08, with specialized organizations following in FY09-10.
• Disclosure practices are partly compliant with IPSAS, but there is a need for more transparency, particularly in foreign currency treatment, and to incorporate DOSA, CONTASA, SAFE, and IMPREST accounts into civil accounts.

Auditing Standards

• The CAG has adopted the INTOSAI Auditing Standards, but there is a need to implement the International Standards on Auditing (ISA) as well.
• The Supreme Audit Institution (SAI) lacks a dedicated legal framework to ensure independence and adequate powers, especially in personnel and funding arrangements.
• Audit methodologies and technologies are outdated, and the CAG needs improved systems and tools to support audit processes and reporting.
• Audit planning and supervision are not fully aligned with international standards and require modernization.
• Internal control evaluations and compliance assessments are not statistically robust and need improvement.
• Audit evidence is not well-organized, and audit opinions are not currently provided in a form that meets international standards.
• Fraud and error assessments are not systematic enough and require more structured approaches and forensic audit training.
• Audit recommendations are not effectively implemented, and there is a need for improved governance and report follow-up mechanisms.

Action Plans

1. Adopt International Standards: Bangladesh should adopt the IPSAS and transition to accrual-based accounting gradually, starting with the Cash Basis IPSAS.
2. Improve Legal Framework: A new National Audit Act is needed to grant the CAG greater discretion in financing and personnel policies.
3. Enhance Training and Education: A Education Standards Working Committee should be established by June 2007 to define training requirements for public sector accountants and auditors, including accounting degrees and professional certification.
4. Develop Audit Systems: Modern audit methodologies and technologies should be introduced to support systems-based auditing, quality assurance, and evidence-based reporting.
5. Strengthen Governance: Audit reports should be more effective and actionable, with greater involvement of the Public Accounts Committee (PAC) and improved follow-up mechanisms.
6. Implement PFM Reforms: A comprehensive PFM reform program is essential, including the development of a modern integrated financial management system to support transparency and accountability.
7. Prepare PFM Survey: A PFM indicators survey should be conducted to monitor progress in adopting and applying international standards.

Conclusion

The report emphasizes the importance of aligning Bangladesh's public sector accounting and auditing practices with international standards to enhance financial transparency, accountability, and efficiency. It outlines a clear path for reform, including the adoption of IPSAS, the establishment of professional training programs, and the development of modern audit systems and governance structures. These reforms are expected to contribute significantly to social and economic development and improve public financial management outcomes.