a. Is the Audit Committee a committee of the Executive Council (EC)? Y b. Does the Committee follow up recommendations of the EC? Y c. Does the Chairperson have open lines of communication with the EC? Y Should be added to TORs; AC Chairperson is always invited to EC sessions d. Does the Committee periodically obtain assurance from the Executive Council on the effectiveness of the Audit Committee? Y EC comments on AC reports; recommendations help EC in decision-making, all acted upon e. Does the Committee make a formal annual report on its own effectiveness to the EC? Y f. Do the EC agendas include a regular report from the Audit Committee? Y g. Does the Report from the Committee communicate recommendations to the EC? Y h. Are outline agendas, without supporting papers, available to EC members to keep them up-to-date with the Audit Committee’s work? Y Outline agendas are contained in the TORs i. Does the EC receive the Audit Committee reports? Y j. Does the Committee/its Chairperson meet with the Secretary-General bilaterally at least once a year? Y 1.2 With Internal Audit a. Does the Committee/its Chairperson have open lines of communication with the Head of Internal Audit? Y b. Does the Committee periodically invite the views of the internal auditor on the work and effectiveness of the Audit Committee? N But there is regular dialogue with IOO who attend AC meetings. c. Does the Committee/its Chairperson of the Committee meet separately (in closed session) with the Head of Internal Audit at least once a year? Y d. Does the Committee review the internal audit plan and audit reports? Y e. Does the Committee review the scope and remit of internal audit in the Organization? Y f. Does the Committee consider whether the of internal audit work addresses significant risks? Y g. Does the Committee examine all individual of reference for internal audit’s work? Y
h. Does the Committee consider the experience and expertise of the internal audit team? Y Also the AC is consulted on the recruitment of D/IOO i. Does the Committee monitor progress in the implementation of annual internal audit plans? Y A continuous process j. Does the Committee monitor whether internal audit is working to professional standards relevant to the Organization? Y k. Does the Committee monitor whether internal audit have the resources and right people with relevant expertise to carry out its remit? Y 1.3 Between Internal and External a. Does the Audit Committee monitor the effectiveness of relationships between internal and external auditors? Y b. Does the Committee consider whether internal and external auditors have communicated and coordinated their audit plans? Y c. Does the Committee consider whether external audit places reliance on the work of the internal auditor? Y d. Does the Committee discuss whether there are areas where joint working would be beneficial? Y e. Does the Committee consider whether all audit services are joined up, including operational audits? N/A Structure and remit of IOO does not present any issues f. Does the Committee expect internal and external auditors to communicate effectively with each other about understanding risks, their assessments of risk areas and how their work would cover these risk areas? Y g. Does the Committee communicate this expectation to internal and external auditors? Y h. Is the Committee satisfied by cooperation between the external and internal auditors as related to their annual plans and between them? Y 1.4 With External a. Does the Committee/its Chairperson have open lines of communication with the external auditor? Y b. Does the Committee periodically obtain the views of external auditor on the work and effectiveness of the Audit Committee? N Not expressly but open dialogue maintained with External Audit, including an annual closed
session exchange of views c. Does the Committee/its Chairperson meet separately (in closed session) with the external auditor at least once a year? Y d. Does the Committee’s advisory role include participation in the process to appoint the external auditor? Y When new auditors are selected, the AC is consulted e. Does the Committee consider the experience and expertise of the external team? N Informally but not specifically f. Does the Committee consider whether the external audit Director/partner will spend sufficient time on the audit, and whether time to be spent by other audit staff seems reasonable? Y Via review of planning intentions g. Does the Committee monitor external audit’s compliance with professional ethical guidance relating to the rotation and terms of an External Auditor? Y Informally done h. Does the Committee review the external audit plans, outputs and management letters? Y i. Does the Committee seek specific assurance regarding external quality assurance procedures when considering their audit strategy? Y Informally j. Do the external auditors inform the Committee of key developments and issues at key stages of the Y k. Does the Committee make suggestions to the external auditors regarding the risks and potential problem areas the audit could address? Y l. Does the Committee consider whether external audit focuses on the fundamental issues? Y m. Does the Committee consider whether the external auditors have delivered fully against their plans? Y n. Does the Committee monitor the performance of external Y Via review of activity and outputs o. Does the Committee review audit fees? Y 1.5 With stakeholders a. Does the Committee/its Chairperson have open lines of communication with and EC? Y AC Chairperson reports to EC b. Is the Committee’s membership approved and included in the reports of sessions of the Executive Council? Y
a. Does the Committee consider how best to keep the Committee abreast of public sector accounting requirements? Y Handled collectively. Committee members have complementary skills and experience b. Does the Committee provide support to the finance function in explaining the effects of financial and reporting requirements to the Executive Council? Y As appropriate c. Does the Audit Committee satisfy itself that: i. The Organization keeps proper accounting records? Y Based on the scrutiny of the External Auditors ii. The annual financial statements present fairly the financial position of the Organization? Y In the context of annual review of the financial statements and the results of the External Auditors’ examination d. Does the Committee gain an understanding of management’s procedures for developing the Organization’s financial statements and the historical reliability of the Organization’s financial reporting? Y As appropriate e. Does the Committee review the financial statements before signature by the Secretary-General? Y Where allowed by the governing body timetable f. Does the Audit Committee consider specifically: i. The suitability of accounting policies and treatments? Y In the context of reviewing the annual accounts and Ext Audit results/reports ii. Major judgements made? Y -ditto- iii. Large write-offs? Y -ditto- iv. Unusual credits? Y -ditto- v. Last minute transactions? Y -ditto- vi. Changes in accounting treatment? Y vii. Unusual financial trends? Y -ditto- viii. Unusual financial statement relationships? Y -ditto- ix. Accounting treatments varying from the sector norm? Y -ditto-