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.

Some of the plan initiatives address multiple audit observations while others focus on one particular audit observation.

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

The audits of Treasury and the relevant specialist areas have been included in the 2005 audit plan of the Internal Audit Section of the Office of Audit and Performance Reviews.

Management audits could also be useful in identifying trouble areas.

For audited financial information, the Company shall clarify in the annual report the responsibility therefor of the accounting firm it hired.

The UNFPA internal audit will review and verify the data during the third quarter of 2005.

The Board will keep this matter under review in its future audits.

UNICEF is reviewing alternative audit options with the objective of allocating audit resources to strategically important business units.

Audit of the medical insurance plan

The Board will keep this matter under review in its future audits.

UNHCR recognizes that the availability of audit certificates at the time of the annual audit would facilitate the work of auditors in focusing their examinations.

1. The Board recommends that UNDP retain for at least two bienniums all audit reports received on national execution expenditure to enable the Board to complete its audit of those reports that had not been received in the previous biennium (para. 20).

The internal auditor continually reviews the accounting and control systems.

The above arrangements for the Independent Audit Advisory Committee would be subject to review in the context of the above mentioned comprehensive review of governance arrangements, including the independent external evaluation of the auditing and oversight system.

B. Review of arrangements for internal audits of the

The Board of Auditors conducted a review of recosting in 2004 and reported in the context of its report on the audited financial statements of the United Nations for the biennium 2002 2003.

The following areas were planned to be covered by the Office of Internal Oversight Services

Draft guidance for the reviewing and updating of national implementation plans

Audit of the Transport Section

Audit of payroll

General Audit of the Fund

64. The Board will keep this matter under review in its future audits.

Mr. Cabatuan (Chairman of the Audit Operations Committee of the United Nations Board of Auditors) said that he was encouraged by the General Assembly's use of the Board of Auditors reports as a source of information and recognized that their format and content could be improved.

This expenditure has been included in the UNFPA financial statements, but because of the absence of audit reports there was insufficient evidence to allow the Board to form an audit opinion on it.

The audits of headquarter units have been postponed in 2004 and were included in the strategy and workplan of the Office of Audit and Performance Review for 2005.

The Board is planning to widen its audit coverage at the State Oil Marketing organization.

Subsequent OIOS audits of the Mission by a visiting audit team during June 1996 and May June 1997 and by the resident auditor during the periods from August 1996 to April 1997 and from August to December 1997 gave special attention to the procurement process.

Audit of asset management

Audit of Quick Impact Projects

Audit of property rentals

Audit of mine operations

Audit of inland freight

Audit of fuel management

Audit of air operations

Audit of procurement contracts

Audit of budgetary control

Audit of the medical store

Audit of demining operations

Audit of procurement activities

Audit of security arrangements

Audit of procurement activities

Audit of court management

Audit of the Institute

Audit of the Institute