Twentey frequently asked questions and answers related to risk-based internal auditing and auditor independence in the public sector:
• Risk-based internal audit is an approach that focuses on identifying and assessing risks to prioritize audit activities in public sector organizations.
• It ensures resources are allocated efficiently, and audits are aligned with the organization's objectives and potential risks.
• Traditional audits often follow a fixed schedule, while risk-based audits prioritize areas with higher risk.
• Internal auditors in the public sector are responsible for reviewing the risk and control of the process of preparing financial statements, compliance with laws and regulations, and evaluating internal controls.
• Internal auditor’s independence means that auditors must be free from bias and conflicts of interest to perform their duties objectively.
• It ensures the integrity and credibility of audit findings and reports.
• Auditors should avoid financial and personal interests that could compromise their objectivity. Also they report directly to the Secretary of the line ministry.
• Risk-based internal audit can help auditors prioritize areas where independence is crucial, ensuring their focus on high-risk areas.
• It involves identifying and analyzing risks, assessing their potential impact, and prioritizing them.
• Yes, the process should be dynamic, allowing adjustments as risks evolve.
• Policies and procedures are in place to identify, disclose, and mitigate conflicts of interest among auditors.
• Resistance to change, resource constraints, and a lack of risk management expertise can be challenges.
• Quality control mechanisms, peer reviews, and adherence to professional standards help maintain audit quality.
• Some organizations outsource, but safeguards must be in place to maintain independence.
• Audit committees oversee the internal audit function and monitor auditor independence.
• Regular reporting and open communication with stakeholders help maintain transparency.
• Yes, by focusing on high-risk areas, auditors are more likely to identify fraud. But fraud risks should be dealt by experts with special mandate only.
• Better resource allocation, improved risk management, and enhanced decision-making are some of the benefits.
• The frequency can vary but is typically following the approved internal audit annual plan prepared based on organization's risk profile and objectives.
• Risk-based internal audit supports good governance by promoting transparency, accountability, and effective risk management.
These questions and answers provide an overview of risk-based internal audit and auditor independence in the public sector.
মাননীয় উপদেষ্টা
ড. সালেহউদ্দিন আহমেদ
সচিব
ড. মোঃ খায়েরুজ্জামান মজুমদার
জাতীয় কর্মসূচি পরিচালক
মোহাম্মদ সাইফুল ইসলাম
অতিরিক্ত সচিব, বাজেট-১, অর্থ বিভাগ, অর্থ মন্ত্রণালয়
পিআইটি প্রধান
বিলকিস জাহান রিমি
অতিরিক্ত সচিব, ব্যয় ব্যবস্থাপনা, অর্থ বিভাগ, অর্থ মন্ত্রণালয়