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Compliance /Financial Audit


Compliance audit deals with the responsibility of the Office of the Comptroller and Auditor General (OCAG) of Bangladesh to audit whether the activities of public sector entities are in accordance with the relevant laws, regulations and authorities that govern such entities. This involves reporting on the degree to which the audited entity is accountable for its actions and exercises good public governance. More specifically, these elements may involve auditing to what extent the audited entity follows rules, laws and regulation, budgetary resolutions, policy, established codes, or agreed upon terms, such as the terms of a contract or the terms of a funding agreement.

The objective, scope and nature of a particular compliance audit depend on a number of factors, including the mandate and constitutional role of the OCAG, as well as laws and regulations that are relevant to the audited entity. However, in general, the objective of the compliance auditing is to enable the OCAG to report to the appropriate bodies on the audited entity’s compliance with a particular set of criteria. Such criteria may be derived from relevant financial reporting frameworks, laws, regulations, parliamentary decisions, terms of contract agreements, or may be other criteria deemed by the auditor to be suitable criteria.

Areas of Compliance/Financial Audit:

  • Audit against provision of funds to ascertain whether the money shown as expenditure in the accounts were authorized for the purpose for which they were spent.
  • Audit against rules and regulation to see that the expenditure incurred was in conformity with the laws, rules and regulations framed to regulate the procedure for expending public money.
  • Audit of sanctions to expenditure to see that every item of expenditure was done with the approval of the competent authority in the government for expending the public money.
  • Propriety audit which extends beyond scrutinizing the mere formality of expenditure to its wisdom and economy and to bring to light cases of improper expenditure or waste of public money.
  • While conducting the audit of receipts of the government, the Comptroller and Auditor General satisfies him that the rules and procedures ensure that assessment, collection and allocation of revenue are done in accordance with the law and there is no leakage of revenue which legally should come to government.