Comprehensive assessment of internal audit practices in five major departments
The Scheme conducted detailed assessments of the existing internal audit arrangements, institutional structures, staffing, control mechanisms and audit practices in five high-spending and high-risk departments. Five separate study reports were prepared and submitted, providing the analytical foundation for introducing a modern and risk-based internal audit system in these departments.

Extensive stakeholder consultations and sensitization programs conducted
A series of stakeholder consultations, workshops and seminars was initiated from November 2021 and continued in subsequent years to build awareness and institutional ownership of internal audit reforms. Principal Accounting Officers, senior officials of the concerned ministries, departments, auditors and auditee offices were engaged in discussions on internal audit independence, professional standards, risk management and management accountability.

Model Internal Audit Charter developed, approved and distributed
A Model Internal Audit Charter was developed, validated through stakeholder consultations and approved by the Finance Division. The Charter defines the mandate, authority, independence, reporting relationship, responsibilities, professional standards and ethical obligations of Internal Audit Units/Directorate of Internal Audit (DIA) and their officials. It provides a common institutional framework for internal audit operations across government entities.

Risk-Based Internal Audit Manual developed, approved and distributed
A comprehensive Risk-Based Internal Audit (RBIA), Manual was developed and distributed to participating ministries and departments. The Manual covers the IIA guidelines and standards audit strategy, risk assessment, annual audit planning, audit execution, evidence collection, documentation, reporting, follow-up and quality assurance. It also contains 24 audit process forms and nine annexures to support standardized audit implementation.

Strategic Implementation Plan for internal audit reform developed
A Strategic Implementation Plan (SIP), was developed to guide the gradual institutionalization of internal audit across the government. It defines the sequencing of reforms, institutional responsibilities, implementation arrangements and capacity-building requirements necessary for establishing sustainable internal audit functions in ministries, departments and Agencies (MDAs).

Standard Operating Procedures for internal audit prepared
Standard Operating Procedures (SOPs), were prepared and finalized to translate internal audit policies into practical working arrangements. The SOPs provide guidance on audit initiation, risk assessment, planning, fieldwork, execution, documentation, reporting, recommendation tracking, management response and audit follow-up.

Internal Audit Units established in six key government institutions
Internal Audit Units have been established in the Department of Primary Education, Roads and Highways Department, Local Government Engineering Department, Public Works Department, Directorate General of Health Services and in the Finance Division. This represents a major institutional shift from conventional inspection-based auditing towards independent, systematic and risk-focused internal assurance.

Extensive professional capacity-building programs delivered
Training courses, seminars and practical workshops have been conducted for officials of the piloting MDAs. The programs covered the Internal Audit Charter, RBIA Manual, risk assessment, audit planning, execution, reporting, follow-up, documentation, ethics and quality assurance.

Model Charter & Manual Revised and Customized
Model Charter & Manual have been revised and customized by the concerned IAU with assistance from consultants, provided by the FD, validated by the top management of the concerned MDAs, printed and distributed.

Department-wise Risk Registers (RR) prepared
Risk registers have been prepared for the piloting selected departments through consultations with their senior management and operational units. The registers identify major financial, procurement, operational, administrative, IT issues, compliance and service-delivery risks, assess their probability likelihood and potential impact, and record existing and probable mitigating controls. RR is validated by the top management and approved by the PAO.

Annual and pilot risk-based audit plans developed
Annual Risk-Based Internal Audit Plans and Pilot Internal Audit Plans have been prepared for piloting MDAs The plans link institutional risks with auditable business processes, offices, projects and expenditure areas, helping Internal Audit Units concentrate limited audit resources on activities carrying the highest risks.

Risk-based internal audit execution piloted in selected departments
Practical execution of risk-based internal auditing has been initiated in DPE, RHD, LGED, PWD and DGHS. The pilots introduced structured entry meetings, audit scope determination, control testing, field-level evidence collection, documentation, reporting and follow-up procedures based on the approved Charter and RBIA Manual.

Internal audit reports prepared and submitted to Principal Accounting Officers
Internal audit reports have been prepared in the pilot departments and submitted, or are being finalized for submission, to the respective Principal Accounting Officers. The reports highlight control weaknesses, systemic risks and areas of non-compliance and recommend corrective measures for improving financial management, procurement and service delivery.

Internal Audit Committees formed at ministry and division levels
Internal Audit Committees have been formed in the Finance Division and relevant controlling ministries and divisions to find out mitigation plans/ resolve plan of findings/ observation of IAUs /DIAs. They also review management responses and progress in implementing audit recommendations. The committees provide senior-level oversight as advisory service and strengthen accountability for addressing weaknesses identified through internal audits.

Central oversight arrangements for internal audit strengthened
The reform program has supported the development of central oversight arrangements, including the concept of a Central Internal Audit Committee (CIAC) and a central internal audit structure within the Finance Division. These arrangements are intended to promote consistency, professional quality, coordination and monitoring of internal audit functions across ministries and departments.

Audit follow-up and mitigation planning institutionalized
Internal Audit Committees, Internal Audit Units and concerned management authorities have begun reviewing audit observations and preparing mitigation plans. This creates a structured process for assigning responsibility, setting implementation timelines, tracking management action and reporting progress on unresolved audit recommendations.

Wider professional development and certification encouraged
The Scheme has promoted professionalization of public-sector internal auditing by organizing orientation on Certified Internal Auditor (CIA) qualifications and encouraging officials to acquire internationally recognized audit knowledge and credentials. This initiative supports the creation of a sustainable pool of qualified internal audit professionals within the government.

Post-Procurement Reviews completed for SPFMS schemes
Post-Procurement Reviews have been carried out across the eight schemes of the SPFMS Program for six consecutive financial years. The reviews examined compliance with approved procurement plans, procurement laws and rules, tendering procedures, contract management, documentation and delivery performance. Findings and recommendations were discussed through validation workshops and incorporated into procurement improvement measures.

Model Annual Procurement Plan introduced and reviewed quarterly
A Model Annual Procurement Plan, aligned with the approved budget and operational requirements of each SPFMS scheme, was prepared to improve procurement planning and implementation. Annual Procurement Plans are reviewed quarterly to identify delays, re-tendering requirements, budget changes and implementation bottlenecks. Necessary revisions are made through consultation and approved by the competent authority.

Logistical and technical support provided to Internal Audit Units
Participating Internal Audit Units have received logistical assistance to perform audit planning, documentation, reporting and follow-up responsibilities. This support has been important during the operationalization of the newly established units.

Risk-based auditing expanded beyond headquarters
The Scheme has begun extending internal audit awareness and execution arrangements to field-level offices. Seminars held in all Divisions for practical implementation of RBIA, including entry meetings, risk identification and structured audit engagement procedures.

Relationship between auditors and auditees strengthened
Dedicated sessions have been conducted to clarify the respective responsibilities of internal auditors, auditee offices and senior management. These initiatives promote cooperation, timely access to records, constructive discussion of findings and management ownership of corrective actions, while preserving the professional independence of Internal Audit Units.

A foundation established for government-wide internal audit reform
Through the development of policies, institutional structures, professional manuals, risk registers, audit plans, pilot audits, oversight committees and capacity-building programs, the Scheme has established the foundation for gradually expanding modern internal audit functions across the Government of Bangladesh. The reform supports stronger internal controls, early identification of financial and operational risks, more effective use of public resources and improved accountability for service delivery.