External audit

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

(d) Enhancement of the external audit functions of the Fund and expansion of the Fund's internal audit coverage

Follow up of the recommendations made in prior external audit reports

(d) Assessing the adequacy and effectiveness of internal and external audit services

(i) To consider the effectiveness and objectivity of the external audit process

UNICEF will issue guidance on the follow up of external audit recommendations.

This evaluation will also prepare the UNHCR Audit Service for the external audit envisaged by the United Nations Board of Auditors.

All publicly owned enterprises are subject to external audit and accounts are published.

The office of the Director also coordinates the reviews of the internal and external audit functions and ensures the implementation of audit recommendations.

(viii) Identify appropriate key performance indicators for the performance management of external audit services

This provides an overview of the tools and processes in place to analyse, track and manage external audit recommendations and corporate audit issues at UNDP.

External audit welcomes this initiative to modernise the procurement system, which should carry significant benefits.

The United States delegation wondered whether the lower estimated cost of external audits by the Board of Auditors reflected reduced audit coverage or better audit efficiency.

An external audit was something completely separate from and outside the management structures of an organization.

This recommendation is related to the recommendation of paragraph 195 of the 2004 External Audit Report.

It is worth noting that even the organizations that do not have an institutionalized audit committee have set up mechanisms to review internal and external audit matters as well as progress made in implementing audit recommendations.

(ii) Audits facilitation of internal and external audits and follow up on the implementation of audit recommendations

Following previous external audit recommendations on this matter, UNHCR has introduced a new policy on audit certification for implementing partners which will affect projects as of 1 January 2004.

The audit committee should play a role in establishing a policy on purchasing non audit services from the external auditor this policy should be disclosed along with an explanation or assessment of how this policy sufficiently ensures the independence of the external auditor (FEE, 2003a).

The status of the implementation of external and internal audit recommendations was reported regularly to the Oversight Committee.

Under the cost sharing arrangements, it is estimated that approximately one half of external audit costs are expended on the audit of administrative operations and one half on investment operations.

The UNHCR Audit Service works in close cooperation with UNHCR's Inspector General's Office and liaises with the United Nations Board of Auditors to ensure coordination between external and internal audit.

(a) Reviewing the strategy and workplans of internal and, in some organizations, external audit and discussing the scope and content of their audits so as to identify audit priorities and suggesting potential audit areas within which to address the organization's risks

UNHCR planned to invite a representative of the Board of Auditors to attend the review of external audit reports.

Accordingly, most governance codes and guidelines define procedures for enhancing the independence, objectivity and professionalism of the external audit.

The Office of the Comptroller General has proved to be helpful in facilitating the implementation of external audit recommendations.

The reduction in the estimated costs of external audit reflects a reduced provision by the Board of Auditors ( 27,000).

In paragraph 389, the Board recommended that UNICEF issue an instruction on the follow up of external audit recommendations.

Furthermore, in light of UNIDO's limited financial resources for external audit costs, the Philippines Commission of Audit was ready to modify its proposed audit fee, but without in any way compromising the quality of services Mr. Carague and his team intended to render.

A number of approaches regarding the external audit, such as the need for auditor partner rotation and the avoidance of possible conflicts of interest involved in providing non audit services, can be considered to ensure that external audits serve shareholder and other stakeholder interests in the intended manner.

(e) Providing an open avenue of communication between the governing board, management and the functions of internal and external audit

The amount of 1,657,900 covers the estimated requirements for external audit ( 462,400) as requested by the Board of Auditors, and for internal audit ( 1,195,500) as requested by the Office of Internal Oversight Services.

To enable the Board to carry out its mandate through the integration of audit planning, execution and reporting and to enhance the development of common audit standards and professional practices, an Audit Operations Committee was established comprising three full time Directors of External Audit, located at Headquarters, representing each member of the Board.

In paragraph 150 of its report, the Board recommended that UNRWA consider including external members on its Audit and Inspection Committee.

The provision under audit costs reflected a reduction in the costs of both external and internal audit, reflecting the resource levels recommended by the Board of Auditors and the Office of Internal Oversight Services.

UNHCR properly requires its implementing partners to supply audit certificates delivered by external auditing firms on their local operations funded by it.

UNHCR also provided quarterly updates on the status of implementation of the external audit recommendations, which were distributed to the Executive Committee members.

Ethics office comprehensive review of governance arrangements, including an independent external evaluation of the auditing and oversight system and the independent audit advisory committee

It is not intended to express an audit opinion on the financial statements for the twelve month period ended 31 December 2004, but rather to report on the activities carried out by external audit and any recommendations resulting therefrom.

Ethics office comprehensive review of the governance arrangements, including an independent external evaluation of the auditing and oversight system and the independent audit advisory committee

The Director of External Audit of the Philippines and Chairman of the Audit Operations Committee of the Board of Auditors, Mr. Sabiniano Cabatuan, introduced the reports of the Board of Auditors (A 60 5 Add.5 and A 60 113).

The audit was carried out in accordance with Article XI of the Financial Regulations of UNIDO and the additional terms of reference governing external audit contained in the Annex thereto, as well as the Common Auditing Standards of the Panel of External Auditors of the United Nations, the specialized agencies and the International Atomic Energy Agency and conforms to International Standards on Auditing.

Integrated into the internal audit and business divisions, regional bureaux and country offices, the quality assurance function complements internal and external audits in the following ways

The Philippines wished to formally present the candidature of Mr. Guillermo Carague, Chairman of the Philippines Commission of Audit, for the post of External Auditor of UNIDO.