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External Audit of the United Nations

Structure of the Audit Organization

UN Board of Auditors:    The audit of the United Nations and other organizations established by the General Assembly is conducted by an independent Board of Auditors. The Board consists of three members, each of whom is the Auditor General (or officer holding the equivalent title) of a member State. Each member elected for a three-year term has joint and several responsibility for the audits conducted by the Board; prime responsibility for audit is allocated on an equal basis among the members. Audit staff are provided on an equal basis by the individual members.

Audit Operations Committee:    To ensure that the principle of joint and several responsibility is respected, the Board of Auditors has established the Audit Operations Committee. It consists of the Directors of External Audit from the three member countries. The committee members are stationed full-time at New York Headquarters. The committee is responsible for the unified direction of the work of the audit teams supplied by each Board member.

Panel of External Auditors:    The member of the United Nations Board of Auditors and the appointed external auditors of the specialized agencies and of the International Atomic Energy Agency constitute a Panel of External Auditors. Its purpose is to exchange information about audit methods and findings and to provide a basis for further coordination of the audits conducted by its members.

Secretariat:    Under the direction of an Executive Secretary, an administrative support group has been provided by the Administration to serve both the Board of Auditors and the Panel of External Auditors. The secretariat is located at New York Headquarters.

Basis, Scope and Powers of Audit

Basis:    The audit is conducted in conformity with generally accepted common auditing standards adopted by the Panel of External Auditors and, subject to any special directions of the General Assembly.

Scope:    The scope of audit covers the financial procedures, the accounting system, the internal financial controls and, in general, the administration and management of the organization. The UN Advisory Committee on Administrative and Budgetary Questions may request the Board of Auditors to perform certain specific examinations and issue separate reports on the results.

Powers: The Board of Auditors and its staff shall have free access at all times to all books, records and other documentation which are, in its opinion, necessary for the performance of audit. The Board has no power to disallow items in the accounts.

Processes of Audit & Reporting

The audit, which is system-based, is conducted in accordance with an overall audit plan and detailed plan of each audit. The audit findings are taken up with the organization through management letters and on getting its response the Reports of the Board of Auditors are prepared and issued. The Reports cover audit findings on financial statements and management issues, recommendations and follow up of previous recommendations. The Audit Reports finalised by the Board with the assistance of the Audit Operations Committee are presented to the Fifth Committee of the General Assembly through the Advisory Committee on Administrative and Budgetary Questions.