FC 97/13


Ninety-seventh Session

Rome, 17 - 22 September 2001

Review of Working Practices regarding Appointment of the External Auditor

I. Background

1. At its ninety-sixth Session, following discussion of working methods, Finance Committee members requested that the agenda for the ninety-seventh Session include an item covering further refinement of procedures to be applied when next selecting and appointing the External Auditor. Whilst it was recognised that the next appointment of an External Auditor was not likely to take place for some time as the Committee had just completed the selection process and proposed appointment of the new Auditor for the next two biennia, Members felt that further debate on this topic would be helpful while the matter was still fresh in their minds.

II. Selection Procedures

2. The selection process followed in 2001 by the Secretariat and Finance Committee to appoint the External Auditor had been more structured than in the past, with clear guidelines being issued to Member Nations regarding how bids should be presented. This had resulted in good quality bids that were reasonably uniform in format and content, thus facilitating the review and evaluation process. A similar process and approach should be used in future, adjusted as necessary to meet the requirements.

3. In spite of the more structured approach adopted in 2001, Members felt that there was scope for improvement in certain areas of the process and that these should be discussed with a view to strengthening procedures. Matters which should be considered by the Finance Committee with a view to proposing new procedures include:

4. The following related documents, which may assist Members in discussing the above matters, are attached:

5. Following discussion of the above, the Committee should provide additional guidance, as necessary, to improve the procedures to be followed during selection and appointment of the external auditor.