The auditors of the Office of Internal Oversight Services have agreed to elaborate criteria, in accordance with international accounting standards, to facilitate the review of audit reports by the secretariat of the Fund.

Requests a Board of Auditors' assessment of the implementation of these changes at the end of the three year trial period, within the context of their biennial audit.

In September 2005, the UNDG inter agency audit task group, of which UNFPA is a member, finalized a technical note on the terms of reference for the conduct of audits.

The working group was planning to prepare guidelines on auditing and technical notes on risk assessment during the second quarter of 2005.

Comment by the Administration. UNOPS audit exception reports are being developed in conjunction with UNDP and will be rolled out in the second and third quarters of 2005 after completion of the statutory reports for the year end closing.

Mr. Park Yoon June (Republic of Korea) commended the Board for the long hours it had spent preparing the reports during the 2002 2003 audit cycle.

With reference to the financial situation of UNOPS, the Office was in the process of developing a specific work programme to address the concerns raised by the Board of Auditors.

In addition to generating routine reports for funding, investment decisions, currency trading, payment investigations and facilitating accounts reconciliation, further high level reporting is being requested by management.

In the third option, although the accounts must be kept in United States dollars, the budget could be prepared in both United States dollars and euros at the rate of exchange prevailing at the time of preparation of the budget.

As a result of the failure of these two initiatives, the Office of Internal Oversight Services decided to prepare a report to the General Assembly on its various findings and conclusions arising from the audits it has conducted since it began auditing UNCC.

The results of the testing will be made available to all participants in the model's development and then, if appropriate, the algorithm can be modified and tested repeatedly until the specific data set is either included or excluded from the resulting model.

In addition, I have the honour to present the report of the Board of Auditors with respect to the above accounts, including an audit opinion thereon.

The United Nations Development Group (UNDG) inter agency audit task group, of which UNFPA is a member, finalized a technical note on the appointment of project auditors in September 2005.

Open Accounts

All accounts

Special accounts.

b Outposted to the Department of Economic and Social Affairs for financial matters related to technical cooperation.

Monitoring of accounts

Report by the Director General

Health accounts

Principal accounts

(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

Any statement of ex gratia payments is submitted to the Board of Auditors with the annual accounts.

(Signed) Philippe Séguin First President of the Court of Accounts of France (Lead Auditor)

Audit process

External auditors

Internal auditors

Scope of audit

Audit opinion

Resident auditors

(i) Accounts Unit

External audit

Internal audit

Audit costs

Opening of bank accounts

Accounts payable

(ii) Accounts Division

Reconciliation of bank accounts

The auditor has also told the Commission that he does not believe that his firm prepared these accounts.

(c) Audits to be carried out by resident auditors in the peacekeeping missions.

b. Parliamentary documentation audit reports on the basis of audits conducted (8)

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.

Annual report and audit

That is the right calculation.

Audit services 10.0