2010年-世界发展银行全球_Public_Sector_Accounting_and_Auditing_in_South_Asia___A_Comparison_to_International_Standards_40页_622kb

Summary of Public Sector Accounting and Auditing in South Asia: A Comparison to International Standards

Core Content

This report compares the public sector accounting and auditing practices in eight South Asian countries—Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka—to international standards, with the aim of supporting regional collaboration and strengthening financial management and oversight practices.

The report is based on detailed "gap analysis" assessments conducted between 2007 and 2008, and it synthesizes the findings from these assessments. The framework used for evaluation is grounded in International Public Sector Accounting Standards (IPSAS) and International Standards of Supreme Audit Institutions (ISSAI).

Key Findings

Accounting

1. Adoption of IPSAS: All South Asian countries are moving towards adopting the cash-basis IPSAS, but none is fully compliant with the standards. Consolidated financial reporting remains a challenge.
2. Accrual Accounting: While the long-term goal is to adopt accrual-basis IPSAS, progress is slow due to the complexity and resource requirements involved.
3. Code of Ethics: Most countries have codes of conduct for public servants, but none specifically addresses the ethical standards for public sector accountants in line with the IFAC Code of Ethics.
4. Training and Education: Some countries are moving toward professionalizing their accounting staff using International Education Standards (IES), but formal adoption is still lacking.

Auditing

1. Independence: None of the South Asian Supreme Audit Institutions (SAIs) is fully independent from the government it audits, particularly in terms of personnel policies and funding arrangements.
2. Compliance with ISSAI: While all SAIs have adopted ISSAI, many do not fully meet the international auditing standards due to a lack of skilled personnel and appropriate tools.
3. Audit Methods: There is a growing interest in performance audits and risk-based assessments, but most SAIs still focus on compliance testing.
4. Technology Use: SAIs generally lag behind in the use of computerized audit techniques, which could significantly improve audit quality and efficiency.

Main Recommendations

Accounting

• Adopt IPSAS: All South Asian governments should consider adopting IPSAS for government accounting to improve transparency and comparability.
• Define Reporting Entity: Governments should study the relevance and applicability of IPSAS 6 on "Consolidated Financial Statements and Accounting for Controlled Entities" to define a comprehensive reporting entity.
• Implement Code of Ethics: Governments should adopt the IFAC Code of Ethics for professional accountants and require public sector accounting staff to adhere to it.
• Formally Adopt IES: The International Education Standards (IES) should be formally adopted as a benchmark for training public sector accountants and integrated into recruitment and advancement criteria.

Auditing

• Enhance Independence: SAIs should work towards achieving the independence required by INTOSAI standards, particularly from government influence on personnel and funding.
• Improve Audit Skills: Training and capacity development are essential to ensure auditors have the skills and tools to perform effective audits.
• Adopt Modern Audit Techniques: The use of computerized audit working papers and techniques should be encouraged to enhance the quality and efficiency of audit processes.
• Promote Performance Audits: There is a need to shift focus from compliance audits to performance audits and risk-based assessments to improve the relevance and value of audit outcomes.

Key International Standards

• IPSAS: These standards are designed for public sector entities and provide a framework for transparent and consistent financial reporting.
• ISSAI: These are the international standards for supreme audit institutions, emphasizing independence, quality, and effectiveness in auditing.
• IES: These standards outline the educational requirements for professional accountants, focusing on competence, skills, and ethical values.
• INTOSAI: This is the International Organization of Supreme Audit Institutions, which promotes global standards for auditing.

Conclusion

The report highlights the need for enhanced transparency, accountability, and professionalization in public sector accounting and auditing across South Asia. While progress has been made in adopting international standards, significant gaps remain in terms of compliance, independence, and capacity building. The recommendations aim to guide governments and stakeholders in improving public financial management (PFM) systems and aligning them with international best practices.