ISLAMABAD, Aug 4: The World Bank has appreciated the quality of audit reports, prepared by the audit department, with an aim to improve the management and performance of the ministries, divisions and corporations of the government of Pakistan.

The WB said in its letter, received by the finance ministry, that progress towards strengthening the audit function was noteworthy and the audit reports completed by the audit department would be utilized as a model for other countries.

“Audit reports are becoming potentially very significant in terms of improving financial control and accountability, besides strengthening audit methodology along with staff training,” says the letter.

According to sources in the audit department, the WB mission briefly reviewed selected audit reports of the financial year 2000 and said: “Range of audit issues and studies being undertaken is widening with increasing emphasis on special audits and third party evaluation, materiality of audit findings is increasing, besides numerous instances of fraud, waste and abuse of public funds are being reported, involving several billions of rupees of lost revenue and excessive expenditure.”

The department has informed the WB mission that the most recent audit of the accounts of revenue receipts and indirect taxes uncovered irregularities of Rs17 billion in various ministries, divisions and corporations.

The mission also appreciated the steps the government has taken regarding the separation of audit from accounting function.

Earlier this year, a high-level seven-member World Bank mission visited Pakistan to review and strengthen the process of ministerial accountability in the government at the federal and provincial levels of governance.—APP