WORLD TRADE  
ORGANIZATION  WT/L/156/Rev.2 
21 May 2007 
 
 (07-2048) 
Committee on Budget, Finance and Administration  
  
 
     
 
   
FINANCIAL REGULATIONS1 
OF THE 
WORLD TRADE ORGANIZATION 
 
Revision  
 
 
                                                      
1 Revision approved by the General Council on 9 May 2007, document WT/GC/M/108.  WT/L/156/Rev.2 
 Page 3 
 
 
  CONTENTS  
 Page  
 
CHAPTER I.    AUTHORI TY AND APPLIC ABILITY....................................................................4  
CHAPTER II.    PREPARATIO N OF THE BUDGET ESTIMATES..............................................4  
CHAPTER III.    ADOPT ION OF THE BUDGET ............................................................................5  
CHAPTER IV.    CO LLECTION OF FUNDS....................................................................................5  
 (a) Contributions From Members ...........................................................................................5  
 (b) Other income ............................................................................................................... ........7  
 (c) Voluntary Contributions, Gifts or Donations ...................................................................7  
CHAPTER V.   USE OF THE FUNDS ................................................................................................8  
CHAPTER VI.    TH E SURPLUS ACCOUNT...................................................................................9  
CHAPTER VII.    THE WORKING CAPIT AL FUND.....................................................................9  
CHAPTER VIII.    CUSTODY AN D INVESTMENT OF FUNDS.................................................10  
CHAPTER IX.   THE ACCOUNTS...................................................................................................11  
CHAPTER X.    INTERNAL CONTROL.........................................................................................12  
CHAPTER XI.    EXTERNAL AUDIT..............................................................................................13  
APPENDIX TO THE FINANCIAL REGULATIONS.....................................................................15  
 
 WT/L/156/Rev.2 
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  CHAPTER I.    AUTHORITY AND APPLICABILITY 
 
Regulation 1 
 
 These Regulations shall govern the financial ad ministration of the World Trade Organization 
(WTO). 
 
Regulation 2 
 
 The Director-General shall be responsible for the implementation of these Regulations.  He may 
delegate to other officers of the WTO such auth ority as he considers necessary for the effective 
implementation of these Regulations.    
Regulation 3 
 
 Rules made by the Director-General in order to  carry out the provisions of these Regulations 
shall be communicated to the General Council for approval.    
Regulation 4 
 
 These Regulations shall not be amended excep t by the General Council acting upon the advice 
of the Committee on Budget, Fi nance and Administration.   
  
CHAPTER II.    PREPARATION OF THE BUDGET ESTIMATES 
 
Regulation 5 
  The WTO biennium shall consist of two consecu tive financial periods covering each year of the 
biennium.  The financial period shall be from 1 January to 31 December.   
Regulation 6 
 
1. For each  financial period, the Director-General shall prepare budget proposals containing 
estimates of the income and expenditure of  the WTO.  These proposals, as well as any  revisions for 
the second year of the biennium as may be necessar y will be presented to the Committee on Budget, 
Finance and Administration, which will examine them and formulate a recommendation for 
consideration by the General Council.   
2. The estimates shall be expressed in Swiss francs. 
 
Regulation 7 
 1. The proposed expenditure estimate s shall be divided into parts and  sections. 
 
2. The proposed expenditure esti mates shall be accompanied by such information annexes and 
explanatory statements as may be re quested by or on behalf of the General Council, and such further 
annexes or statements as the Director-General may deem necessary and useful.  WT/L/156/Rev.2 
 Page 5 
 
 
  Regulation 8 
 1. Supplementary budget proposals for the curren t financial period may be submitted by the 
Director-General whenever necessary.  
2. The Director-General shall prepare supplement ary budget proposals in a form consistent with 
the approved budget.  These proposals shall follow the same examination and approval process as for 
the annual budget proposals.    
Regulation 9 
 
The income estimates for each fi nancial period shall consist of: 
  (a) a schedule of miscellaneous income showi ng for each item, in addition to the estimated 
amounts, the approved amount  for the preceding financial period; 
 
 (b) a draft scale of contributions to be assessed on Members, showing for each Member, 
the proposed assessment and the contributi on assessed for the preceding financial 
period.
1 
 
 
CHAPTER III.    ADOPTION OF THE BUDGET 
 
Regulation 10 
  The Director-General shall submit the budget estimates to the Commit tee on Budget, Finance 
and Administration in time for it  to be considered at its session in the Autumn preceding  the biennium.  
At the same time, these budget estimates shall be transmitted to all Members of the WTO.  The same procedure shall be applied to any revision for the second financial period of the biennium which would 
be presented to the Committee on Budget, Finance a nd Administration in sufficient time for it to be 
considered at a session in the Autumn preced ing the second financial period of the biennium. 
 
Regulation 11 
  The Committee on Budget, Finance and Administ ration shall examine th e budget estimates and 
prepare a report thereon which shall be su bmitted to the General Council for adoption. 
 
 
CHAPTER IV.    COLLECTION OF FUNDS 
 
(a) Contributions From Members 
 
Regulation 12 
 
1. The expenses of the WTO shall be financed by contributions from Members and miscellaneous 
income.  The contributions shall be according to th e scale of assessments determined by the General 
Council.  
                                                     
 
1 The initial draft scale of contributions for the second financial period of the biennium will be 
indicative, pending (i) any revision which may be necessa ry for the second financial period and (ii) calculation 
of assessed contributions in accordance with Regulation 12.3(b). WT/L/156/Rev.2 
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  2. The share to be contributed by each Member to the annual operating budget of the WTO shall 
be established on the basis of that country's (or sepa rate customs territory's) international trade (imports 
plus exports) in relation to  the total international trade of all WTO Members. 
 3. (a) Calculations of assessed contribu tions for the years 2001, 2002 and 2003 (which are 
prepared in the course of the respective previous year) shall be based on international 
trade statistics for the years 1996-1998, 1997-1999 and 1998-2000, respectively;  or, if these statistics are not available, for the last three years for which statistics are available.   
 
 (b) Calculations of assessed contributions for at least the following ten years, i.e.  2004, 
2005, 2006 to 2013, (which are prepared in the course of the respective previous year) 
shall be based on international trade sta tistics:  for the years 1997-2001, 1998-2002, 
1999-2003, etc.  respectively;  or if these stat istics are not availabl e, for the last five 
years for which statistics are available.  
 
4. The statistics used sha ll relate to trade in goods
2, services and intellectual property rights as 
reported in Balance of Payments statistics from the International Monetary Fund (IMF);  with regard to 
services, the statistics shall relate to the definiti on of commercial services as applied in the WTO. 
 5. Where IMF data deviate from IMF guidelines and include transactions not related to goods, 
services or intellectual property rights, adjustme nts provided to the WTO by the Central Bank or the 
National Statistical Office of a Member shall be taken into account  by the Secretaria t when adequately 
documented and justified.  6. If IMF data are not available, the WTO Secretariat shall use estimates based on the best other 
available sources. 
 7. A minimum contribution of 0.015 percent will be  applied to those members whose share in the 
total international trade of all WTO Members is less than 0.015 percent. 
 8. The contributions shall be asse ssed and paid in Swiss francs. 
 
Regulation 13 
 1. After the General Council has adopted the budget for each financial period, the Director-General shall: 
 
 (a) transmit the relevant documents to the Members;   (b) inform the Members of their commitments  in respect of contributions for the relevant 
financial period, and se nd a corresponding invoice; 
 
 (c) request the Members to remit their contributions. 
2. In accordance with Article VII, 4 of the Marrakesh Agreement Establishing The World Trade 
Organisation, Members have the obligation to cont ribute promptly to the WTO their share in the 
expenses of the WTO.  Contributions  shall be considered as due and payable in full upon receipt of 
the invoice or on 1 January of the financial period to which they relate, whiche ver is later.  As of 
1 January of the following calendar year the unpaid balance of such contributio ns shall be considered 
to be one year in arrears.  
                                                     
 
2 Excluding gold held as a store of value (deposit money banks).   WT/L/156/Rev.2 
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  Regulation 14 
 
 The Director-General shall take appropriate action with a view to ensuring that Members pay their contributions promptly.  He shall report re gularly to the Committe e on Budget, Finance and 
Administration on the state of  payment of contributions. 
 
Regulation 15 
  States or separate customs te rritories having the status of Observers may only accede to the 
WTO if their financial obligations as Observers ha ve been fully discharged.  New Members shall be 
required to make a pro rata  contribution for the year in which they  become Members, after any relevant 
deduction of their assessment as Observer  which shall also be calculated on a pro rata basis for that 
year.  New Members shall also be required to prov ide their proportion of the total advances to the 
Working Capital Fund;  this advance shall be carried  to the credit of the rele vant Member.  Payments 
made by a Member shall be credited first to the Wo rking Capital Fund and then to the contributions due. 
 
Regulation 16 
 
 Any payment in respect of contributions made  by a Member which has not paid in full its 
contribution for previous calendar years shall, unless the General Council decides otherwise, be credited 
against the earliest date of such arrears. 
 
Regulation 17 
  A Provision for contributions in  arrears shall be maintained.  It shall be funded through the 
Surplus Account. 
 
(b) Other income 
 
Regulation 18 
 1. Except in so far as the General Council may decide otherwise, all income other than 
(a) contributions payable by Member s, (b) interest earned by inves ting contributions received by the 
Secretariat and not required immediately, (c) income  derived from investments of the Working Capital 
Fund and, (d) direct refunds of prior year's expe nditure received during th e current financial period,  shall 
be classed as miscel laneous income.   
 
2. For each full payment of an annual co ntribution between 1988 and 1994, any Member with 
pre-1988 arrears and assessed at the minimum cont ribution in 1988 may cancel an equal number of 
assessments for 1987 and earlier years upon pa yment of the 1989 minimum contribution of 
Sw F 19,137.  The difference between an outstandi ng contribution for pre-1988 and the amount of 
Sw F 19,137 shall be funded by miscellaneous income.  
(c) Voluntary Contributions, Gifts or Donations 
 
Regulation 19 
 
1.   Voluntary contributions, gifts or donations may be accepted by the Director-General provided 
that the purposes for which the c ontributions are made are consiste nt with the policies, aims and 
activities of the WTO, and provided that the accep tance of such contributi ons which directly or 
indirectly involve additional financial liability for the WTO shall require the consent of the Committee 
on Budget, Finance a nd Administration. 
 WT/L/156/Rev.2 
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  2. Moneys accepted for purposes specified by the donor  shall be treated as trust funds or special 
accounts.  3. Moneys accepted in respect of which no purpose is specified shall be treated as miscellaneous 
income and reported as "gifts" in the accounts of the financial period.   
 
4. Money received by a staff Member as honoria in his/her official capacity shall be remitted to the 
Organization and be credited to the WTO Staff Assistance Fund. 
 5. Unless otherwise provided, such voluntar y contributions, gifts or donations shall be 
administered in accordance with the present Financial Regulations. 
  
CHAPTER V.   USE OF THE FUNDS 
 
Regulation 20 
  The adoption of a budget by the General Coun cil shall constitute an authorization to the 
Director-General to incur obligations and make payments for the purposes for which the appropriations were voted and up to th e amounts so voted.   
 
Regulation 21 
  Appropriations shall be availabl e for obligation during the financial period to which they relate. 
 
Regulation 22 
 
 Appropriations shall remain available for 12  months following the end of the financial period to 
which they relate to the extent that they are re quired to discharge obligations in respect of goods 
supplied and services rendered in  the financial period and to liqu idate any other outstanding legal 
obligation of the financial period.  The balance of th e appropriations shall be surrendered by transfer to 
the Surplus Account. 
 
Regulation 23 
  At the end of the twelve-month period provide d in Regulation 22 above, the then remaining 
balance of any appropriations  retained shall be transferred to mi scellaneous income.  Any unliquidated 
obligations of the financial period in question shall, at that time, be cancelled or, where the obligation 
remains a valid charge, transferred as an  obligation against current appropriations. 
 
Regulation 24 
  At the end of the financial period the Director-General shall report on the transfers of credits 
between sections of the expenditure budget to the Gene ral Council for approval.  For items so identified 
by the Committee on Budget, Finance and Administrati on at the time of budget finalization, transfer 
shall not be permitted.   WT/L/156/Rev.2 
 Page 9 
 
 
  Regulation 25 
  The Director-General may enter into commitment s for future financial periods, provided that 
such commitments:  
 (a)  are for activities which have been approved by the General Council and are expected to 
continue beyond the end of the current financial period;  or 
  (b) are authorized by specific decisions of the General Council.  
 
 
CHAPTER VI.    THE SURPLUS ACCOUNT 
 
Regulation 26 
 
1. Budgetary surpluses shall be transferred to  the Surplus Account pending decision by the 
General Council on their use.  2. Increases and decreases of the provision for contributions in arre ars shall be effected by means 
of the Surplus Account.  
3. If at the end of a financial period the Surplus Account shows a credit balance , the 
Director-General shall make propo sals to the Committee on Budget, Finance and Administration with 
regard to its use which may be:   (i) application as income against the budget fo r the second financial period following that 
in which the surplus occurs, thereby reducing Member's contributions; 
  (ii) transfer to the Working Capital Fund;  or   (iii) use for any other purpose decided upon by the General Council. 
 
4. A  deficit in the Surplus Account at the end of a financ ial period shall be covered, to the extent 
possible, by transfer from the Working Capital Fund.   Any part of the deficit left uncovered after 
transfer from the Working Capital Fund shall be includ ed as an appropriate credit in the budget for the 
next earliest possible financial period.    
 
CHAPTER VII.    THE WORKING CAPITAL FUND 
 
Regulation 27 
  The Working Capital Fund shall be constituted by: 
 
 (a) assessed advances made by Members.  Such sums shall be carried to the credit of the 
Members which have paid them; 
  (b) any sums which the General Council may cause to be paid into it from time to time.  
Such sums shall be carried to the credit of the organization. 
 WT/L/156/Rev.2 
Page 10  
 
  Regulation 28 
  Any government acceding to the WTO shall make an advance to the Fund in acco rdance with 
the scale of contributions applicab le to the budget for the year of its accession.  The minimum advance 
to the Working Capital Fund amounts to 0.5 percent of the principal of the Fund for countries or 
separate customs territories whose share of the total trade of Members is 0.5 percent or less. 
 
Regulation 29 
  The Director-General is authorized to advance from the Working Capital Fund: 
 
 (a) such sums as may be necessary to fi nance budgetary appropriations pending receipt of 
contributions; 
  (b) in exceptional circumstances and subject to prior authorization of the General  Council, 
such sums as may be necessary to finance commitments relating to extraordinary 
expenditure. 
 
Regulation 30 
  Sums advanced under Regulation 29(a) above shal l be reimbursed to the Working Capital Fund 
as soon as receipts from contributions are av ailable for the purpose.  Sums advanced under 
Regulation 29(b) shall be reimbursed to the Working Capital Fund by including an appropriate credit in 
the budget for the next earliest possible financial period.    
Regulation 31 
 
 The General Council may liberate all or part of  the sums constituting the Working Capital Fund, 
and the sums so liberated in so far as they  are derived from monies placed in the Fund under 
Regulation 27(a) shall be returned in  Swiss francs to the Members whic h have contributed to the Fund in 
proportion to their respective shares in the Fund.  
Regulation 32 
  Subject to a decision of the General Council, c ountries or separate cust oms territories which for 
any reason cease to be Members of the WTO shall be  entitled to the reimbursement of the total Swiss 
franc amount of their shares in the Wo rking Capital Fund under Regulation 27(a). 
 
Regulation 33 
  Interest accrued on the Working Capital Fund sh all be added to the Working Capital Fund and 
carried to the credit of the Organi zation under Regulation 27(b) above. 
 
 
CHAPTER VIII.    CUSTODY AND INVESTMENT OF FUNDS 
 
Regulation 34 
 
1. The Director-General shall designate the bank or  banks in which the funds of the WTO shall be 
kept.   WT/L/156/Rev.2 
 Page 11 
 
 
  2. The Director-General may make non-speculative short-term investments of monies not needed 
for immediate requ irements.  The invest ments of monies standing to the credit of any trust funds, 
reserve or special account shall be subject to  any directives of the appropriate authority. 
 3. The Director-General shall include in the fina ncial statements submitted to the General Council 
a statement of the investments currently held. 
 4. Income from investments shall be  credited as provided in the rule s or agreement relating to each 
fund or account.  
 
CHAPTER IX.    THE ACCOUNTS 
 
Regulation 35 
 
1. The Director-General shall maintain such ac counts as are necessary and shall prepare final 
accounts for the financial period  on an accrual basis showing: 
  (a) the income and expenditure of all funds;   (b) the status of all appropriations, including: 
 
  (i) the original budget appropriations;     (ii) any supplementary appropriations;   (iii) the appropriations as  modified by any transfers; 
  (iv) credits, if any, other than the a ppropriations voted by the General Council;   
  (v) the amounts charged against the appropriations;  and 
  (vi) the amounts charged against any other credit. 
  (c) statements of assets and liabilities at the close of the financial period.   He shall also give such other information as may be appropriate to indicate  the current financial 
position of the WTO. 
 
Regulation 36 
 
 Appropriate separate accounts sh all be maintained in respect of  all trust funds, reserves and 
special accounts. 
 
Regulation 37 
  The final accounts of the WTO shall be presented in Swiss francs.  The accounting records may, 
however, be kept in such currency or currencies as the Director-General may deem necessary.   
 
Regulation 38 
  The final accounts shall be submitt ed to the external auditor as soon as practicable following the 
end of the financial period to which they relate. 
 WT/L/156/Rev.2 
Page 12  
 
  Regulation 39 
  The Director-General shall:  
(a) submit the final accounts and a financial report for the financial period  and the 
external auditor's report thereon to the General Council as soon as practicable 
following the close of the financial period;   
(b) present before  the end of each  financial period of the biennium, a Budget 
Performance Report, providing information on  the rate of expenditure during that 
financial period. 
Regulation 40 
  The final audited accounts shall be submit ted to the General Council for approval. 
 
 
CHAPTER X.    INTERNAL CONTROL 
 
Regulation 41 
 
 The Director-General shall:  
 (a) establish detailed financial rules and procedures in order to ensure effective financial 
administration and the exercise of economy;   
  (b) cause all payments to be made on the basis of appropriate s upporting documents and 
other documents which ensure that the servic es or goods have been received and that 
payments have not previously been made; 
  (c) designate the officers who may receive monies, incur obligations and make payments 
on behalf of the WTO; 
  (d) maintain an internal financial control which shall provide for an effective current 
examination and/or review  of financial transactions in order to ensure: 
   (i) the regularity of the receipt, cust ody and disposal of all funds and other 
financial resources of the WTO; 
  (ii) the conformity of obligations and expenditures with the appropriations or other 
financial provisions voted by the General Council, or with the purposes and 
rules relating to trust f unds and special accounts; 
  (iii)  the economic use of the resources of the WTO.  
Regulation 42 
 
 Commitments or obligations shall not be incurr ed and payments shall not be made unless an 
appropriate authorization has been made unde r the authority of the Director-General. 
  WT/L/156/Rev.2 
 Page 13 
 
 
  Regulation 43 
  The Director-General may, on an exceptional basis, make such  ex gratia  payments as he deems 
to be necessary in the interests of the WTO.  A stat ement of such payments shall be submitted with the 
final accounts. 
 
Regulation 44 
  The Director-General may, after full investigati on, authorize the writing-off of losses of cash, 
supplies, equipment and othe r assets, other than arrears of contribu tions.  A statement of  all such losses 
written off during the financial period shall be submitte d to the external auditor with the final accounts.   
 
Regulation 45 
 
 The Director-General shall establish rules for the procurement of equipment, supplies and other 
requirements, including rules govern ing the invitation of tenders.   
 
 
CHAPTER XI.    EXTERNAL AUDIT 
 
Regulation 46 
 
1. The General Council shall appoint  an external auditor to perform the audit of the accounts of the 
WTO.  2. The external auditor shall be the Auditor-Gener al (or officer holding the equivalent title) of a 
Member of the WTO or another person of high competence. 
 3. The external auditor shall not be removed dur ing his tenure of office except by the General 
Council.  
Regulation 47 
 
1. The audit shall be conducted in conformity with generally ac cepted common auditing standards 
and, subject to any special directiv es of the General Council, in accord ance with the additional terms of 
reference set out in the Appendix to these Regulations.  
2. The external auditor may make observations w ith respect to the efficiency of the financial 
procedures, the accounting system, the internal financia l controls and, in genera l, the administration and 
management of the WTO.    3. The external auditor shall be completely inde pendent and solely responsible for the conduct of 
the audit. 
 
4. The General Council may request the external au ditor to perform certain specific examinations 
and issue separate reports on the results.  
Regulation 48 
 
1. The Director-General shall provide the external auditor with the facilities he may require in the 
performance of the audit.  WT/L/156/Rev.2 
Page 14  
 
  2. For the purpose of making a local or special examination or of effecting economies of audit 
cost, the external auditor may in consultation with the Director-General engage the services of any 
national Auditor-General (or office r holding the equivalent title) or  commercial public auditors of 
known repute or any other pe rson or firm who, in the opinion of th e external auditor, is technically 
qualified. 
 
Regulation 49 
 1. The external auditor shall issue a report on the audit of the financial statements and relevant schedules reflecting the position of the final accounts for the biennium which shall include such 
information as he deems necessary in regard to matter s referred to in Regulati on 47, paragraph 2, and in 
the additional terms of reference.  2. The external auditor's report shall be submit ted to the General Council, through the Committee 
on Budget, Finance and Administration,  together with the audited fina ncial statements.  The Committee 
on Budget, Finance and Administration shall examine the financial statements and the auditor's report 
and shall forward them to the General Council with such comments as it deems appropriate. 
 
 
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  WT/L/156/Rev.2 
 Page 15 
 
 
  APPENDIX TO THE FINANCIAL REGULATIONS 
 
Additional terms of reference governing external audit  
 
 
1. The external auditor shall perform such aud it of the accounts of the WTO, including all trust 
funds and special accounts, as  he deems necessary in orde r to satisfy himself that: 
  (a) the financial statements  are in accord with the books and records of the WTO; 
 
 (b) the financial transactions reflected in the statements have been in accordance with the 
rules and regulations, the budgetary provi sions and other applicable directives; 
  (c) the securities and moneys on deposit a nd on hand have been verified by certificate 
received direct from the WTO's depositories or by actual count; 
 
 (d) the internal controls are adequate;   (e) procedures satisfactory to the external aud itor have been applied to the recording of all 
assets, liabilities, surpluses and deficits. 
 
2. The external auditor shall be the sole judge as to  acceptance in whole or in part of certifications 
and representations by the Director-General and may proceed to such detailed examination and verification as he chooses of all financial records, including those relating to supplies and equipment. 
 3. The external auditor and his staff shall have free access at all conv enient times to all books, 
records and other documentation which are, in the op inion of the external auditor, necessary for the 
performance of the audit.  Informati on classified as confidential shall be made available on application.  
The external auditor and his staff shall respect the confidential nature of any information so classified which has been made available and shall not make  use of it except in direct connection with the 
performance of the audit.  
4. The external auditor shall have no power to di sallow items in the accounts but shall draw to the 
attention of the Director-General for appropriate action any transaction concerning which he entertains doubts as to legality or propriety.  Audit objections, to  these or any other transactions, arising during the 
examination of the accounts shall be immediat ely communicated to the Director-General. 
 
5. The external auditor shall express and sign an opinion in the following terms:  "I have examined 
the financial statements numbered ...  to ...  and re levant schedules of the WT O for the financial period 
ended 31 December ....  My examination included a general review of the accounting procedures and 
such tests of the accounting records and other supporting evidence as I considered necessary in the circumstances."  The external auditor's opinion shall state, as appropriate, whether:  
 (a) the financial statements present fairly th e financial position as at the end of the period 
and the results of the operations for the period; 
  (b) the financial statements were prepared in accordance with the stated accounting 
principles; 
 
 (c) the accounting principles we re applied on a basis consistent  with that of the preceding 
financial period; 
 WT/L/156/Rev.2 
Page 16  
 
   (d) transactions were in accordance with  the Financial Regula tions and legislative 
authority. 
 6. The report of the external auditor to the Ge neral Council on the financial operations of the 
period should mention: 
 
 (a) the type and scope of his examination;   (b) matters affecting the completeness or  accuracy of the accounts, including where 
appropriate: 
 
  (i) information necessary to the co rrect interpretation of the accounts; 
  (ii) any amounts which ought to have be en received but which have not been 
brought to account; 
  (iii) any amounts for which a legal or c ontingent obligation ex ists and which have 
not been recorded or reflected in the financial statements; 
  (iv) expenditures not properly substantiated; 
  (v) whether proper books of accounts have been kept;   (vi) any deviations of a material nature in the presentation of financial statements 
from generally accepted accounting princi ples applied on a consistent basis; 
 
 (c) other matters should be brought to the notice of the General Council, such as: 
   (i) cases of fraud or presumptive fraud;   (ii) wasteful or improper expenditure  of the WTO's money or other assets 
(notwithstanding the accounting for the transaction may be correct); 
  (iii) expenditure likely to commit the WTO to further outlay on a large scale; 
  (iv) any defect in the general system or detailed re gulations governing the control 
of receipts and disbursements or of supplies and equipment; 
  (v) expenditure not in accordance with the intention of the General Council after 
making allowance for duly authoriz ed transfers within the budget; 
  (vi) expenditure in excess of appropr iations as amended by duly authorized 
transfers within the budget; 
  (vii) expenditure not in conformity  with the authority which governs it; 
  (d) the accuracy or otherwise of the supplie s and equipment records as determined by 
stocktaking and examination of the records; 
 
 (e) where appropriate, transa ctions accounted for in a previ ous financial period concerning 
which further information has been obtained or  transactions in a later financial period 
concerning which it seems desirable that the General Council should have early 
knowledge. 
 
7. The external auditor may make such observatio ns with respect to his findings resulting from the 
audit and such comments on the Director-General's fi nancial report as he d eems appropriate to the 
General Council and to the Director-General.  8. Whenever the external auditor's scope of audit is restricted, or he is unable to obtain sufficient 
evidence, he shall refer to the matter in his opinion and report, making clear in his report the reasons for 
his comments and the effect on the financial position and the financial transactions as recorded.   WT/L/156/Rev.2 
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  9. In no case shall the external auditor include cr iticism in his report without first affording the 
Director-General an adequate opportunity of  explanation on the matter under observation. 
 10. The external auditor is not required to mention an y matter referred to in the foregoing which, in 
his opinion, is not material. 
 
 
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