The Royal Audit Authority (RAA), in collaboration with the Asian Development Bank (ADB) and the World Bank, has launched a harmonised audit framework to streamline the auditing of donor-funded projects. Previously, auditors followed separate audit guidelines depending on whether a project was financed by the ADB or the World Bank. The new Harmonised Terms of Reference introduces a single audit approach that meets the requirements of both development partners, reducing duplication and improving efficiency.
According to the RAA’s Annual Performance Report 2024–2025, audit interventions during the financial year helped save or recover Nu 184.458 million in public funds. This included Nu 6.325 million refunded to the ADB after auditors identified incorrect claims and payments under an ADB-funded project.
Joint Auditor General Dorji Wangchuk said the revised framework provides clear guidance on audit requirements, ensuring consistency in audit practices and improving the quality of audit reports. He added that the harmonised approach will strengthen transparency, accountability, and donor confidence by ensuring that public resources and development funds are managed responsibly.
The new framework is also expected to reduce administrative burdens for project implementing agencies while providing auditors with clearer reporting standards. Ultimately, it aims to enhance the effective use of public resources and reinforce public trust in the management of development-financed projects.