Bangladesh Advances Internal Audit Reforms to Safeguard Public Finances

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Gazipur:Bangladesh is implementing a stronger internal audit system within the public sector to preempt financial risks and ensure uninterrupted public services.

According to Bangladesh Sangbad Sangstha, the reforms aim to establish permanent staffing and independent oversight, moving away from the current system that relies on temporary staff and lacks effective auditing capacity. These changes were a key focus at the "Workshop on Institutionalizing Internal Audit in the Public Sector Sustainability and Way Forward," held from October 8-10 in Gazipur. The event was organized by the Internal Audit and Audit Follow-up Scheme under the Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS) of the Finance Division.

During the workshop, Finance Secretary Dr. Md Khairuzzaman Mozumder, who served as the chief guest, unveiled the revised 2026 Model Risk-Based Internal Audit Charter and Manual. This updated framework aligns with the Global International Audit Standard 2024 and clarifies the mandates, responsibilities, and reporting arrangements for auditors, thereby ensuring the protection of public resources and strengthening controls.

The workshop also highlighted the need for a sustainability roadmap, proposing the establishment of permanent internal audit units or directorates across ministries over three years, pending administrative approval. Essential elements identified included dedicated personnel, professional training, and adequate resources.

Key presentations and discussions covered various topics, such as digital monitoring, stronger internal controls, and timely corrective actions. Presentations from five departments showcased progress and challenges in institutionalizing internal audits. For instance, the Directorate General of Health Services identified 93 risks and emphasized the importance of waste reduction and compliance. The Public Works Department and other agencies reported similar efforts but highlighted ongoing challenges such as limited independence and staffing constraints.

The workshop concluded with an examination of an internal audit action plan for 2026-2031, focusing on establishing permanent structures, adequate budgets, and improved coordination between internal and external auditors. The goal is to embed risk identification and corrective actions as routine responsibilities in public administration.