Published: 12:18 AM, 11 October 2026
Govt eyes permanent internal audit units to protect public funds
Bangladesh is moving to institutionalise internal auditing across the public sector, with plans to establish permanent audit units, strengthen professional independence and identify financial and operational risks before they result in losses or disrupt essential public services.
The proposed reforms aim to replace a largely temporary staffing arrangement with a sustainable institutional framework backed by dedicated personnel, professional training, adequate funding and stronger oversight.
The measures were discussed at the three-day Workshop on Institutionalizing Internal Audit in the Public Sector: Sustainability and Way Forward, held from October 8 to 10 at a hotel in Gazipur. The workshop was organised by the Internal Audit and Audit Follow-up Scheme under the Finance Division’s Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS).
Finance Secretary Dr Md Khairuzzaman Mozumder attended the inaugural session as the chief guest and unveiled the revised 2026 Model Risk-Based Internal Audit Charter and Manual, which provides an updated framework for government internal auditing.
Dilruba Shaheena, additional secretary of the Finance Division, and Dr Ziaul Abedin, additional secretary and national programme director of SPFMS, attended as special guests. Md Hasanul Matin, additional secretary of the Finance Division, chaired the session, while Mohammad Azad Sallal, another additional secretary, delivered the keynote presentation on the sustainability plan for public sector internal auditing.
Addressing the programme, Khairuzzaman said the government attached considerable importance to institutionalising internal audits across the public sector.
Introducing internal auditing across ministries was a landmark step towards ensuring transparency and accountability in public fund management, he said, according to a press release.
“Implementing internal audits comes with challenges, but we must work together to overcome them. Our task is to turn this initiative into an effective and sustainable system that strengthens public financial management,” the finance secretary said.
The revised charter and manual, based on the 2024 Global Internal Audit Standards, clarify auditors’ mandates, responsibilities and reporting arrangements. The framework is intended to help government institutions assess their operations objectively, strengthen internal controls, protect public resources and address weaknesses before they escalate.
Under the proposed arrangement, internal auditors would report functionally to the relevant internal audit committee and administratively to the secretary or principal accounting officer. The dual reporting structure seeks to reinforce professional independence while ensuring that audit findings receive appropriate scrutiny.
The reform carries implications beyond government accounting. Weak financial controls, procurement irregularities and operational inefficiencies can undermine the delivery of healthcare, primary education, roads and other essential public services. Risk-based auditing is designed to identify vulnerabilities in financial management, procurement, operations and information technology before they lead to resource wastage, project delays or service disruptions.
A key proposal is to establish permanent internal audit units or directorates across ministries and divisions in three phases over three years, subject to administrative approval. Dedicated staffing, recruitment rules, professional development and adequate resources have been identified as prerequisites for making the system sustainable.
During the workshop, Sahana, additional secretary of the Finance Division, presented the revised charter and manual. Participants also discussed digital monitoring linked to the Integrated Budget and Accounting System (iBAS++), stronger internal controls and mechanisms to ensure timely corrective action.
Presentations by five government departments highlighted both progress and persistent institutional challenges.
The Directorate General of Health Services identified 93 risks and completed six audit reports, while emphasising the need to reduce waste, improve compliance and strengthen healthcare delivery through skilled personnel, adequate funding, better facilities and digital access.
The Public Works Department identified 70 risks and advanced its annual audit plans. However, unresolved findings, staffing vacancies, limited independence and weak coordination underscored the need for clearer responsibilities, deadlines, digital tracking and stronger committee oversight.
The Local Government Engineering Department extended risk-based auditing to 78 cost centres and recorded 300 observations. Temporary staffing, limited expertise and the absence of a permanent organisational structure remained significant constraints.
The Directorate of Primary Education reported a 13-member internal audit unit, identified 41 risks and conducted pilot activities in Raipura and Laxmipur Sadar. It prioritised staffing, training, logistics and technical support, with consolidated reporting scheduled for July 2027.
The Roads and Highways Department identified 82 risks and completed six audit reports, highlighting weaknesses involving procurement, contracts, land acquisition, staffing and digital systems, alongside limitations arising from assigning audit responsibilities as additional duties.
Participants stressed that identifying risks and producing audit reports would not be sufficient unless findings led to timely corrective measures. Stronger committee monitoring, clearer accountability and systematic follow-up were considered essential to translate audit observations into lasting improvements.
The workshop also reviewed an internal audit action plan for 2026–2031, focusing on permanent institutional structures, adequate budgets, professional capacity and coordination between internal and external auditors.
