FINANCIAL, INTERNAL CONTROL SYSTEM, PROCUREMENT AUDIT

The objectives of this audit are to enable the auditor to express a professional opinion on whether:

• The financial statements of the Project / Programme present fairly, in all material aspects, the expenditure actually incurred, and revenue received for the Project / Programme for the period covered by the audit;
• The funds allocated to the Project / Programme have, in all material aspects, been used in conformity with the applicable contractual conditions; the expenditure is compliant with the rules of sound financial management, assessed notably in the light of eligibility criteria (see Annex 4.2 – Nomenclature of Findings and Misstatements);
• The internal control system set up and operated by the Entity for the purpose of managing risks to the achievement of the objectives of the Project, was suitably designed and operated effectively in the period covered by the audit;
• Contracts have been awarded in accordance with applicable rules and in accordance with the principles of economy, efficiency, transparency and fairness, and in compliance with AML/CFT due diligence requirements;
• Contracts have been performed in accordance with technical requirements and specified standards.

The auditor should provide if judged necessary recommendations on the various aspects of the audit project such as the respect of funds allocation, AFD procedures and ACF own procedures, especially procurements procedures and any other aspects that the auditors should thought important to raise to the attention of ACF and the AFD.

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[1] The generic term “financial statements” is used regardless of the format used by the Entity: balance sheet and operations / income statement, situation of budget execution, supply and use table, etc.

[2] A financial statements audit is very strongly advised even if not explicitly mentioned in the contractual clause; it goes hand in hand with the control of the use of the funds.