Auditor General revises audit reporting method after Rs375 trillion controversy

The Auditor General of Pakistan has revised the methodology for preparing annual audit reports following last year’s controversy over audit observations initially reported at Rs375 trillion, The News reported, citing sources.

Under the revised mechanism, annual audit reports are expected to become shorter, with only what officials describe as “solid paras” included in the final documents.

Sources said the changes were introduced under the current Auditor General, who was appointed after the controversy surrounding the publication of the inflated figures.

Officials said the reports will no longer contain cumulative figures showing the total amount allegedly linked to irregularities, corruption, wasteful expenditure, mismanagement or financial violations across government departments and entities.

According to sources, the earlier practice of aggregating audit observations across multiple years and categories created misleading impressions and raised questions about the credibility of the institution’s reporting.

Officials familiar with the new methodology said only mature and fully vetted audit observations cleared at the highest level would now be included in the reports.

They said the changes were aimed at improving accuracy, avoiding duplication and reducing the chances of questionable or inflated figures appearing in official documents.

The revisions follow last year’s controversy when the Auditor General’s office uploaded a report citing alleged financial irregularities worth Rs375 trillion, a figure significantly larger than Pakistan’s GDP and federal budget.

The report was later revised, with the AGP stating that the original figures contained typographical errors and that the actual amount stood at Rs9.769 trillion.

The episode drew criticism from economists, financial experts and bureaucrats, who questioned the credibility and economic logic of the reported figures.

Sources said the latest changes were part of broader efforts within the audit institution to restore credibility and avoid similar controversies in future audit reporting.