Day 3: Presentation on External Audits by Claudio
General impression:
Presentation was very good and complete. Informative and clarifying not only how but also why audits are crucial! Also made very clear that IFAD regards the external audit process as a joint process in which IFAD wants to play an active supporting role.
Presentation very lively and Claudio’s emotion on the subject is welcome!
What should be elaborated upon?
• Relation between General conditions/FA, PIM, eligibility and auditing financial statements. Financial statements is only part of compliance.
• ARS
• In which cases National Auditing Agency is acceptable and when private auditor is obligatory.
• Different opinions of auditor could be enriched with some real life examples. And consequences of the respective opinions in terms of follow-up / repercussions by IFAD.
For discussion purposes, I would recommend a more comprehensive audit requirement / regime that obliges borrowers to broaden financial audits with operational / compliance audits as the financial audits are in my view too limited as legitimate proof of compliance in relation to General Conditions/ Financial Agreement, PIM etc.

Posted on 10/16/13 5:41 AM.