After the promulgation of Finance (Amendment) Ordinance, 2009, the jurisdiction of the Directorate General of Internal Audit (Customs) is now limited to Customs only. Internal Audit of Sales Tax and Federal Excise have been shifted to “Inland Revenue Service”. The evolution of this organization with the passage of time, up to its present shape, is as follows:
The new fiscal policies are aimed at achieving accountability and good governance with internal controls by introducing modern and scientific techniques to ensure credibility and efficiency in the national tax machinery. Under this new reformed environment, the function of Internal Audit, as a tool for ensuring correct observance of law and procedures, and for checking revenue leakages, and tax frauds has regained more importance. Despite resource constraints, the Directorate General of Internal Audit, ever since its inception, has been running as an effective system of checks and balances, dealing with the Collectorates and the Directorates falling within its territorial jurisdiction, geared towards improving the transparency, objectivity and fairness in their assessment and enforcement functions. The Directorate General is performing its audit obligations as a major support function to the field formations in achieving the highest possible qualitative and quantitative standards of institutional performance.