Internal audit and corporate risk management

Given the role internal audit should play in evaluating and improving risk management and control systems the UNHCR Audit Service embarked, in late 2004, on a risk management pilot project.

At the operational level, the Office of Audit and Performance Review has already started adopting a preliminary risk based audit planning methodology with the purpose of improving the country office audit coverage (para.

Also, the Office of Audit and Performance Review has been reviewing its audit planning methodology with a view to adopting a more formal risk based approach.

Urges UNDP and UNFPA to base their oversight and accountability activities on a corporate risk model and develop risk assessment functions in their audit offices

With regard to the regularity audit, detailed risk assessments have been completed to ensure that in performing the financial and compliance audit work, our resources will be appropriately focused.

The Office of Audit and Performance Review will continue to expedite the filling of vacancies in the Office (para. 419), align resource levels according to audit risk assessments (para.

Other key initiatives included strengthening the roles of the MROC (paragraphs 212 and 229) the planned training of managers in corporate risk management building risk management principles into the programme management system audit planning and outcome reporting the implementation of an audit report tracking system to better monitor compliance with audit recommendations and reasons for delay, if any (paragraph 246) and the progressive rollout of audit exception reports (paragraph 193).

The Audit Services Branch has established a risk based database which will be updated on a regular basis.

The UNHCR Audit Service and the Inspector General's Office conducted a joint risk assessment of the 2005 tsunami relief project in Sri Lanka.

In paragraph 290 of the report, UNDP agreed with the Board's recommendation that it (a) perform adequate internal audit reviews based on the outcome of a treasury risk assessment and bearing in mind specialist areas (b) involve internal audit in assessing the overall adequacy of the information technology and risk management systems of the UNDP Treasury and (c) require internal audit to report regularly to the Investment Committee on matters relating to Treasury.

This group includes recommendations relating to internal audit management (11), non governmental organization national execution (NGO NEX) audits (five), and corporate risk management (four).

In addition, OAPR is exploring enhancements of the existing comprehensive audit database system to be used by project staff for NEX audit recommendations in 2006 (paragraph 103) and the inclusion of risk assessment and priority rating of the outcomes of NEX audits (paragraph 111).

In paragraph 126, the Board recommended that UNCC and the Office of Internal Oversight Services conduct a joint risk assessment so that a proper audit plan could be developed.

The Board notes that UNOPS has not implemented adequate controls in the absence of an audit trail and that the risk of errors and irregularities going undetected has therefore increased.

Audit opinion

Audit process

Audit opinion

External audit

Internal audit

Audit costs

Audit Division

Internal audit is conducted by a dedicated UNHCR Audit Service, which forms part of Internal Audit Division II that is headquartered at Geneva.

The UNHCR Audit Service, in close cooperation with the UNHCR Audit Coordinator in the Controller's Office, vigorously follows up on outstanding audit recommendations.

Given that data integrity is a significant risk at UNOPS, the implementation of an audit trail as a control tool could assist in identifying data errors and irregularities in a timely manner.

We believe that our audit provides a reasonable basis for the audit opinion.

The Audit Services Branch will update the checklist for the 2005 audit exercise.

Internal audit ratings

So we audit.

Audit the Fed?

Internal audit function

Scope of audit

OIOS Audit Service

UNHCR Audit Service

The Office of the Comptroller General explained that considerable progress has been made and that an audit risk assessment policy had been developed to assist in the compilation of the 2005 IOG work plan.

At the present time, audit assignments are shared among the audit staff provided from the audit services of the members of the Board on an equal basis.

The Office of Audit and Performance Review has incorporated procedures in its country office audit guide to ensure that audit clauses are included in all project agreements.

One D 1 post would be redeployed from Internal Audit in New York to Internal Audit in Geneva to strengthen audit operations handled from the Geneva office.

The working group fully supported the resources requested for external audit ( 479,900) and internal audit ( 1,240,700).

The call for the 2004 audit of nationally executed projects emphasized the requirements for the audit.

Annual report and audit

Audit recommendation tracking dashboard

Independent Audit Advisory Committee

(c) Audit and Inspection

Subprogramme 1 Internal audit