Audit and Accounts Issues Challenges

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Audit and Accounts Issues Challenges

• Khuram farooq, PMP
• Director PIFRA
• khuramf_at_pifra.gov.pk
• khuramf_at_hotmail.com

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Agenda
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Context of Audit and Accounts
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Accounts- Issues
Project Accounting
Budget execution reports
Reconciliation
Liabilities, Assets, Commitments
Revenue accounting, Bank reconciliation
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Audit- Issues
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PIFRA II Design
AGP/CGA/MOF
PIFRA II 94 m
Capacity Building of CGA
FABS (Financial Accounting and Budgeting
System)
Capacity Building Of OAG (Office of the Auditor
General)
Project Management Support
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Objectives

• Accurate, timely public financial information
• Efficient resource management
• Improved fiscal space
• Increased international credibility
• Improved Investor Confidence

Strengthened internal controls - Increased trust
and confidence
Better quality audit through risk-based approach
- Improved support for legislative oversight
through PAC - Strengthened accountability
framework - Increased confidence in audit process
R/3
other

• International Standards Compliance
• GAAP, IPSAS II, ISA, best-practices

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Basic Concept
Separation of Audit and Accounts
o/o CGA Created 2001
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International Public Sector Accounting Standard
(IPSAS II) Compliance
CASH BASED ACCOUNTING
MODIFIED CASH BASIS ACCOUNTING
IPSAS CASH BASIS ACCOUNTING
ACCRUAL ACCOUNTING
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Vision- Financial Reporting by CGAIntegrated,
On-line, Real-Time, Govt-wide, multi-tiered
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Productive Sites- Province Wise
Sindh
Punjab
NWFP
Baluchistan
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Outcome Indicators FABS-Roadmap
Baluchistan.
All Punjab/ Sindh
All NWFP 30 Punjab)
25 sites
30 Sites
May 2005 PIFRA I
Aug 06
Sep 06
Dec 07
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Objectives- Audit Component

• Availability of audited accounts to the PAC
  within 12 months of financial close
• Assurance to the stakeholders about the
  reliability of the financial statements and
  Controls
• Enhance trust and confidence of the stakeholders
  in the audit process through adoption of best
  practices
• PAC reporting by exceptions through focus on only
  the critical risks in the accountability process

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Vision- Risk based audit and IT Tools
Shift towards risk based auditing
Use of Modern Audit Tools, methodologies
Systems based IT Audit
Centralized Planning and Coordination Of audit
Federal Audit
District Audit
Auditor General Of Pakistan
WAN
Expenditures, Salaries, vendor data available on
line
Pre-defined verifications by audit
Auditee 1
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Implementation Status of Audit
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Domains of Change
Technology
Re-structuring
Business Process
Change Management
Capacity Building
Coverage
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Goal Creative Usage via constant Change
Management
Creative Usage
SAP Introduction
Conservative Usage
Old Systems
Results / Success / Performance

• Organizational Structure
• Workflow
• Cooperation / Communication
• Qualification / Competencies

Resistance Boycott
Change Management
Stagnation
Integration
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Next Challenges Data and adoption of new
processess
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Going Forward- Fundamental Issues
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• Thank You

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PIFRA II
Total 94 m