2007年-世界发展银行全球_Bangladesh___Public_Sector_Accounting_and_Auditing_A_Comparison_to_International_Standards_80页_1mb

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 and compares it with international standards. It outlines the necessary steps for the Government of Bangladesh to align its practices with global norms, focusing on the adoption of International Public Sector Accounting Standards (IPSAS), the improvement of audit processes, and the enhancement of public financial management (PFM) systems.

Main Objectives

1. To provide a well-founded understanding of Bangladesh's current accounting and audit practices relative to international standards.
2. To identify variances and gaps in compliance with international norms.
3. To chart a path for improving adherence to international standards.
4. To establish a continuing basis for measuring progress in reform.

Key Findings

Public Sector Accounting

• Institutional Framework: Bangladesh lacks a dedicated body for setting public sector accounting standards. The Controller General of Accounts (CGA) is responsible for this task but not as a formal standards board. The Comptroller and Auditor General (CAG) oversees the form and manner of maintaining public accounts.
• Current Status: Bangladesh does not currently comply with the Cash Basis IPSAS. Financial statements are not prepared in accordance with IPSAS, and there is no standardization of accounting policies or explanatory notes.
• Recommendations:
  • Adopt the International Public Sector Accounting Standards (IPSAS), starting with the Cash Basis IPSAS.
  • Develop a transition path toward full accrual-based reporting.
  • Establish an Education Standards Working Committee by March 2007 to outline training and education requirements for public sector accountants.
  • Integrate specialized organization accounts into civil accounts in line with IPSAS.
  • Improve the disclosure of financial information and ensure compliance with transparency requirements.

Public Sector Auditing

• Institutional Framework: The CAG has adopted INTOSAI auditing standards but not the International Standards on Auditing (ISA) issued by IFAC. There is no exclusive body for prescribing auditing standards.
• Current Status: Audit processes in Bangladesh are partially compliant with international standards. There are issues with audit planning, supervision, evaluation of internal controls, compliance assessments, and audit evidence organization.
• Recommendations:
  • Adopt IFAC International Standards on Auditing (ISA) in addition to existing INTOSAI standards.
  • Develop a Quality Assurance Function under the Financial Management Reform Project (FMRP).
  • Improve audit methodologies and technologies to meet international standards.
  • Train auditors to prepare evidence-based audit opinions and conduct systems-based audit techniques.
  • Establish a consultative committee between CAG and ICAB to guide the implementation of auditing standards.
  • Improve the accountability process and the effectiveness of audit recommendations by enhancing report quality and ensuring timely responses.

Action Plans

• A committee involving CAG, CGA, MOF, and professional accounting institutes is to be formed by March 2007 to develop an action plan for the adoption of accrual accounting and to address legal formalities.
• A policy paper on the implementation of IPSAS is to be prepared by MOF by June 2007.
• Audit manuals and training programs should be updated to meet international standards.
• Audit impact should be increased through greater transparency, better report writing, and more effective follow-up processes.
• Forensic audit training is needed to improve the detection and analysis of fraud and error in financial statements.

Key Stakeholders and Collaborators

• Government of Bangladesh: Active collaboration with CAG, CGA, and MOF.
• International Bodies: The World Bank, IFAC, INTOSAI, and the UK National Audit Office.
• Professional Institutes: ICAB, ICMA, and CIPFA.
• Development Partners: DFID, UNDP, and ADB.
• Local Consultants: Nasim Hyder and Iftekhar Hossain.

Conclusion

The adoption of international standards in public sector accounting and auditing is crucial for improving the quality, transparency, and accountability of public financial management in Bangladesh. The report outlines a clear roadmap for reform, including the development of a comprehensive PFM system, the establishment of appropriate legal and institutional frameworks, and the enhancement of training and audit methodologies. These changes are expected to support more effective decision-making, improved financial management, and greater social and economic development.