Audit in a risk context: the TCU's experience in Pakistan

In February 2025, the AuditaONU project team traveled to Pakistan to audit the operations of the United Nations Children's Fund (UNICEF) in critical areas such as health and nutrition. The 19-day field mission took place in a setting marked by social vulnerabilities, regional tensions, and security risks, which required travel in armored vehicles and adherence to strict protection protocols.

In this interview, Márcio Stern, an auditor from the Department of International Relations (Serint), shares his impressions of the work, the lessons learned, and the challenges of conducting an audit in such a complex environment. His account reveals how technical expertise, diplomacy, and resilience are indispensable to ensuring that humanitarian aid reaches those who need it most, from the reality of the warehouses in Karachi to interactions with local teams in Islamabad.

The mission also included auditors Hugo Leonardo Menezes de Carvalho (SecexContas), Rafael de Oliveira Bittencourt (InovaAud), and Milton Gomes da Silva Filho (AudContratações).

Read the interview below.

How did the demand for a UNICEF audit in Pakistan arise?

In July 2024, a team dedicated to auditing UNICEF's procurement area was established. The first mission took place in November of that year at the Supply Division in Copenhagen, Denmark. This unit is responsible for defining the operational norms and governance of procurement across the organization. It also manages the world's largest humanitarian warehouse.

After this initial stage, the team planned an audit of a UNICEF Country Office. To select a country for the second phase of the work, criteria such as the materiality of purchases intended for local use were considered. After a comparative analysis of information related to Pakistan, China, Indonesia, Bangladesh, and Turkey, Pakistan was chosen.

Why was Pakistan considered a strategic country, and what were the main objectives in this context?

The country faces significant structural challenges, including extreme poverty, high population density, precarious infrastructure, and heavy reliance on essential supplies such as vaccines, medicines, and nutritional supplements. These factors made the country strategic for UNICEF's operations and justified its selection for the audit.

Our objective was to verify whether that the agency's supply chain could respond effectively, transparently, and swiftly in such an adverse environment. We aimed to evaluate the effectiveness of internal controls, demand forecasting capacity; input distribution efficiency; and the level of digitalization and integration of processes, which are essential for ensuring transparency and speed.

In this scenario, which specific areas of UNICEF's operations were included in the audit scope?

The scope focused on the health and nutrition supply chain, where risks and social impacts are most immediate. The audit included both the main UNICEF office in the capital, Islamabad, and an on-site verification of stocks and essential supply flows, such as vaccines and RUTF (ready-to-use therapeutic food), a high-calorie paste-enriched with vitamins and minerals used to treat severe acute malnutrition.

RUTF is a ready-to-use therapeutic food, an energetic paste enriched with vitamins and minerals. Distributed by UNICEF, it has already saved millions of children from severe malnutrition in Sub-Saharan Africa, Asia, and other regions affected by emergencies such as wars and earthquakes. Image: Personal archive.

The teams observe the entire process, from the warehouses in Karachi, Pakistan's largest city in the south of the country, responsible for distribution, to the local health units where the products are distributed directly to the population.

What are the main challenges of auditing in a country with such complex social, cultural, and security issues?

Pakistan has a high population density, significant tribal diversity, internal separatist movements, fragile infrastructure, and historical regional tensions, particularly along its borders with India and Afghanistan. These characteristics create a naturally challenging environment.

From the moment we arrived in Islamabad, we encountered extreme poverty and arid conditions, which affect the country both geographically and socially. For security reasons, all travel was conducted in UN vehicles driven by trained chauffeurs, and lodging was selected from hotels that had been previously evaluated and authorized by the organization. Our lodging was a bunker with physical barriers to protect against car bomb attacks, as well as permanent armed surveillance.

Did you encounter any language barriers, cultural differences, or difficulties accessing the communities served by UNICEF during the audit?

Interactions were conducted in English, which greatly facilitated communication. When Urdu was necessary, Pakistan's official language, we had the support of native speakers or fluent colleagues. The people with whom we interacted the most were very receptive, greeting us with the typical gesture of placing a hand on the heart and smiling. The traditional attire called the shalwar kameez, which is worn by both men and women, was always present, reinforcing the local cultural identity.

Outside the UNICEF environment, we noted the predominance of men in various jobs, such as in hotels, markets, restaurants, and shops. One of the greatest difficulties, however, was the food. The use of chili peppers was far more intense than anything we had experienced in Brazil.

What was your experience interacting with local managers and UNICEF teams?

On our first day at the UNICEF office, we received a briefing from Johnny Walker, the organization's Head of Security in Pakistan. He is a Briton from Leeds. He emphasized the need for caution around social movements, such as protests or crowds, as they could quickly become risky situations. The UN also instructed us to download an app that provided real-time alerts about routes to avoid in Islamabad. The drivers followed these alerts rigorously.

Different types of alarms are in the UNICEF building. On the left, in red, the alarm for bomb attacks. On the right, in yellow, the alarm for earthquakes. Photo: Personal archive.

Walker explained the different types of alarms in the building. One signal indicated a terrorist attack and required immediate retreat to the bunker stocked with water and supplies. Another signal indicated an earthquake risk because tremors are common in the region.

What were the main findings or conclusions of the audit?

We identified several critical issues in supply chain management, particularly in storage, distribution, contracts, and sustainability.

At the central warehouse in Karachi, we found a large quantity of items that had been stored for over a year, including essential medicines and supplies. This prolonged retention revealed planning failures and coordination difficulties with local partners. Inventory control also showed weaknesses, with many manual records and fragile labels susceptible to errors and loss. Furthermore, we observed that RUTF was stored in an area with temperatures above the recommended limit, which risks its quality.

Teams from Brazil and UNICEF in Pakistan conducted fieldwork at a warehouse in Karachi. Image: Personal archive.

In contract management, we noted the absence of systematic performance monitoring. Even high-value contracts were only evaluated at the end of their term without clear indicators or periodic reviews. This model reduced the ability to identify and correct failures in a timely manner, thereby increasing operational risks.

Additionally, we found that sustainability criteria were not consistently incorporated into procurement processes, which limits UNICEF's ability to contribute to more responsible and long-lasting practices.

How did UNICEF deal with the findings and recommendations?

The findings and recommendations were discussed in meetings with local managers and further refined in the field after it was determined that the proposed measures would indeed add value to UNICEF's operations in Pakistan.

UNICEF and AuditaONU project teams meeting in Islamabad. Image: Personal archive.

Were there any good practices identified in Pakistan that could inspire similar actions in Brazil or other contexts?

Absolutely! Pakistan is composed of four provinces¿Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan¿all of which are marked by humanitarian needs yet each has vastly different realities. One good practice we noted is the coordination capacity between UNICEF and local authorities, which allows programs to be adapted to the specific needs of each region. This alignment makes the initiatives more effective and sustainable. It serves as a reference for contexts where territorial and cultural diversity also presents a challenge to the implementation of public policies.

What lessons did you learn about executing international programs in fragile contexts where there is significance reliance on foreign aid?

The main lesson is that in highly vulnerable environments, there is no room for waste; every resource must be utilized to its maximum potential. It also became evident that international programs are only effective when there is engagement from the local community, including governmental authorities, health professionals, and beneficiaries. I also realized that technology can be a valuable asset, but only when accompanied by training and cultural adaptation.

A striking example is the significant risks faced by vaccination campaigns in Pakistan. Health workers are often victims of violence due to public distrust. Some people believe that vaccines contain other substances or cause sterility. Awareness campaigns are conducted to mitigate this scenario, but the challenge remains. Pakistan is one of the few countries where the poliovirus is still endemic, making poliomyelitis a serious public health problem that increases the urgency of coordinated efforts.

A local campaign clarifies and values the role of the health worker as an everyday hero who closely cares for the community's health. Image: Personal archive.

What impact does this work have on the image of the TCU and Brazil within the INTOSAI and the UN system?

This work demonstrates the TCU's and Brazil's capacity to conduct audits in extremely complex contexts, combining technical rigor and social sensitivity. It shows that our work is not limited to national borders, but that we can effectively contribute to global agendas that affect millions of people. For INTOSAI and the UN system, this experience reinforces the perception that Brazil has a robust control institution prepared to provide value, propose solutions, and lend credibility to audits of significant social impact. Ultimately, it positions the TCU as a strategic and reliable partner on the international stage.

How has this international experience enriched your work as a TCU auditor and broadened your vision of international cooperation?

The experience was transformative through interaction with fellow auditors, the UNICEF team, and the local population. Technically, visiting the RUTF manufacturer in Balochistan revealed processes and storage conditions that were superior to those observed in the Karachi warehouse. This reinforced the importance of recommending improvements in storage after delivery, broadening our view of supply chain management.

Incidentally, Balochistan is a high-risk province bordering Iran and Afghanistan and recognized as a stronghold for groups considered terrorist. Shortly after our mission ended, the region was back in the headlines when a local separatist group kidnapped a train carrying over 400 passengers.

The Pakistan Anti-Terrorist Force was created in the 1990s and operates in special counterterrorism operations, hostage rescue, escort of sensitive targets, protection of authorities, and repression of organized crime. Image: Personal archive.

Traveling in armored vehicles with an armed escort is an indispensable precaution in risky regions like Balochistan. We witnessed several notable events, including demonstrations that blocked roads and a 4.8-magnitude earthquake in Islamabad. These events reminded us of the daily vulnerability of the local population. Just a few weeks ago, a magnitude 6 earthquake occurred in Afghanistan, very close to the Pakistani border. The earthquake left more than 3,000 people injured and about 1,200 people dead.

Therefore, the audit not only evaluates bureaucratic controls and processes, but also guarantees that aid arrives, even in contexts of extreme social, political, and environmental complexity.

What advice would you give to colleagues who will participate in future audits in countries with contexts as complex as Pakistan's?

One crucial point is the flexibility of the team components. It is essential that they coexist harmoniously in order to create an environment conducive to producing quality work, even in less-than-ideal situations. Furthermore, flexibility and diplomacy are important when dealing with audited entities to find solutions that managers see as valuable.

What personally affected you the most about this mission?

Visiting a hospital in an extremely poor area of Karachi was one of the most striking moments. The contrast between the hospital's fragile structure and its location next to a garbage dump evoked an overwhelming sense of sadness. The journey reinforced this impact with kilometers of open sewage and trash, polluted air, and precarious homes. A multitude of people lives in miserable conditions alongside animals. With approximately 15 million inhabitants, Karachi revealed the challenges of life in one of the world's largest urban centers, especially for children.

However, there were also positive experiences, such as the generosity and kindness of the people. In Islamabad, our frequent driver, Shadir, welcomed us with great kindness. On the penultimate day, he took us to a typical Pashtun restaurant for dinner. Pashtuns primarily inhabit Pakistan and Afghanistan. We wanted to reciprocate the gesture. After much consideration, we came up with a creative solution: Rafael Bittencourt, a team member, composed a song in Urdu in Shadir's honor with the help of artificial intelligence tools. The next day, upon hearing the song in the car, Shadir was moved, as were we. This episode perfectly exemplified our mission: amidst extreme hardship, humanity, affection, and bonds of friendship emerged.