Ahmed Ataul Hakim

Ahmed Ataul Hakeem, FCMA
Comptroller & Auditor General of Bangladesh

Comptroller & Auditor General: Introduction
The Supreme Audit Institution of Bangladesh
Mandate & Authority derived from the Constitution
Not under any of the three traditional powers ‐
Legislature, Executive & Judiciary.
Distinct from other government checks/controls due
to position, aims & techniques.
Ensures that public money is accounted for, well
managed, propriety is ensured & value for money is
attained by custodians of public assets.
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Public Sector Accounting & Auditing: Background
Inherited as a legacy of the British colonial
administration
Office of the Comptroller and Auditor General in
India ‐ established in 1860 with the objective to
ensure accountability and transparency of Viceroy to
British Sovereign.
Office of the Comptroller & Auditor General of
Bangladesh commenced activities from 1973
OCAG Bangladesh is working to establish
accountability & transparency of GoB to the people/
tax payers
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Comptroller & Auditor General: Mandate
Article 127‐132 of the Constitution of the Peoples’
Republic of Bangladesh
The Comptroller and Auditor‐General
(Additional Functions) Act of 1974
The Comptroller and Auditor‐General
(Additional Functions) (Amendment) Act of 1975
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Mandate: Constitutional Provision
Article 127 – Establishment of the Office of Auditor
General
Article 128 – Functions of Auditor‐General
Article 129 –Term of office of Auditor‐General
Article 130 –Acting Auditor‐General
Article 131 – Form and manner of keeping public
accounts
Article 132 ‐ Reports of Auditor‐General to be laid
before Parliament
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Mandate of Public Sector Accounting in
Bangladesh
The Comptroller and Auditor‐General
(Additional Functions) Act of 1974 provided
responsibilities of:
Keeping Govt. accounts,
Preparing Appropriation and Finance Accounts,
Auditing statutory public & local authorities
Preparing commercial accounts & general financial
statements.
In 1975, an amendment to the Act gave further
responsibility to audit public enterprises having
at least 50% govt. share.
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Public Sector Accounting :
Comptroller General & His Functions
Role of Auditor General may be combined with that of Comptroller.
Comptroller function is one of control rather than audit, performed
in advance of expenditure [INTOSAI]. Known as Pre‐Audit in
Bangladesh.
Ensuring Treasury Controls: Authorize payments from Treasury
Compiling Accounts of the Republic: Appropriation Accounts &
Finance Accounts.
Article 127 states that there shall be a Comptroller & Auditor General
of Bangladesh, therefore comptrollership is a Constitutional
mandate of CAG.
Functions of Comptrollership –pre‐audit, treasury controls &
accounts compilation – carried out by CGA, CGDF and ADGF[Rail]
on behalf of CAG.
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Public Sector Accounting : Standard
Cash Basis of Accounting System is used
Features of GoB accounting function :
Consolidated Fund,
Treasury Single Account
Limit of financial authority provided by the Parliament
through Annual Budget.
Funds managed by a central entity & individual
entities do not control the ‘cash’ they are authorized
to spend.
Complies with requirements of Cash Basis IPSAS by
ensuring proper presentation, transparent financial
reporting & enhanced comparability of general
purpose financial statements.
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Public Sector Accounting : Structure
Accounting Circles: Public Sector Accounting
Controller General of
Accounts [CGA]
Controller General Defense
Finance [CDGF]
ADG
(Rail Finance)
Chief Accounts
Office [T&T}
Appropriation
Accounts [Civil]
Appropriation
Accounts
[Defense]
Appropriation
Accounts [Rail]
Appropriation
Accounts {PT&T}
Finance Accounts of GoB
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Mandate of Public Sector Auditing
in Bangladesh
Article 128
Public accounts of the Republic, all courts of law, all authorities
& officers of Govt., any body corporate established by law shall
be audited by CAG
CAG or any person authorized by him shall have access to all
records..documents,..stores or government property in
possession of person in service of the Republic.
CAG in exercise of his functions shall not be subject to
direction or control of any other person or authority.
Article 132
Reports of CAG shall be submitted to the Hon’ble President,
who shall cause them to be laid before Parliament.
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Public Sector Auditing : Structure
Operational Structure: Public Sector Auditing
Commercial
Audit
Directorate
Local &
Revenue
Audit
Directorate
Civil
Audit
Directorate
Work
Audit
Directorate
Foreign Aided
Project
Audit
Directorate
Performance
Audit
Directorate
Mission
Audit
Directorate
Defense
Audit
Directorate
Post,
Telegraph &
Telephone
Audit
Directorate
Railway
Audit
Directorate
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Public Sector Auditing : Ensuring Quality
Quality Control Function
Audit
Team
Audit
Inspection
Report
QC Team headed by
Deputy Director
Approved by Director General
QC Team headed by Director
to review SFIs
Preparation of Draft Report
Approval of Draft Report by DG
Quality Control
Function
Reviewed
Audit Report
Deputy C&AG
[Accounts & Report]
Other Types
of Draft Audit
Report
Quality
Assurance
Report
Draft
Performance
Audit Report
Final Audit Report
Approved by CAG
Quality Assurance
Function
Central Quality
Assurance
Committee
Performance
Audit
Directorate
Audit Directorate Level
OCAG Level
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Capacity Building Initiatives
Formulation of ‘Audit Act’ to further operationalize & update
mandate of CAG given under Article 128(4).
Collaboration with professional accounting institutes for
partnerships & secondments.
Adoption of international standards for SAIs [ISSAIs]
Enhancing capacity for Financial/Compliance Audit,
Performance Audit, IT Audit, Environmental Audit & Public Debt
Management Audit.
Collaborating with INTOSAI in capacity building programmes.
Audit Management and Monitoring System [AMMS] :
computerizing audit business process, from planning to followup.
Media and Communication Cell : improve relationship with
stakeholders & ensure media outreach.
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Reform Initiatives
• Strengthening Comptrollership and Oversight of Public
Expenditure [SCOPE] Project:
• Enhancing capacity for conducting Performance Audits
• Enhancing capacity for Financial and Compliance Audits following
ISSAIs
• Enhancing capacity for IT Audit and use of IT
• Strengthening Information System infrastructure in OCAG
• Strengthening Public Expenditure Management
Programme [SPEMP‐B]:
• Component 1: Strengthening Institutional Arrangements of OCAG
• Component 2: Enhancement of Quality Audit and Expansion of
Audit Scope
• Component 3: Strengthening the Financial Management Academy
[FIMA]
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Conclusion
• OCAG plays a vital role in ensuring efficient &effective
accounting and auditing functions in the public sector.
• OCAG enhances reliability of PFM and satisfy need for
reliable & dependable information of stakeholders.
• OCAG has undertaken several technical assistance projects
to improve quality of its outputs and services.
• OCAG & ICAB examining areas for collaboration on issues
of secondments, cooperation for professional certification
of newly recruited BCS officers etc.
• A Joint Team of OCAG and ICAB working to identify areas
of cooperation and to finalize MoU.
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THANK YOU