The audit of UNDP activities is carried out by UNDP's external and/or internal auditors:
- External audit: fulfilled by the United Nations Board of Auditors (BoA); and
- Internal audit: assigned to the Office of Audit and Investigations (OAI).
The UN Board of Auditors was established by the General Assembly in 1946 to carry out the external audit of the accounts of the United Nations organization and its funds and programmes. The Board's report on the UNDP financial statements is a public document, it is presented to the General Assembly through the Fifth Committee and after review and advice by the Advisory Committee on Administrative and Budgetary Questions (ACABQ). The UN Board of Auditors’ report on UNDP financial statements is also presented to the UNDP Executive Board.
Audit Advisory Committee
A five-member Audit Advisory Committee (AAC) is established to advise the Administrator in fulfilling his/her responsibilities regarding oversight, financial management and reporting, internal audit and investigation, external audit, risk management, and systems of internal control and accountability.
As defined by the Institute of Internal Auditors (IIA) “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
The Office of Audit and Investigations (OAI) reports to the UNDP Administrator and is responsible for internal audit and investigations. OAI also submits to the Audit Advisory Committee (AAC), for review and advice, its strategy, workplans, budget situations and periodic progress reports. In addition, every year OAI prepares a report on internal audit and investigations, which summarises significant observations from audits and investigations undertaken during the year. This report is presented to the UNDP Executive Board at its annual session in June.
The Charter sets out the purpose, authority, policies and procedures that shall be applied in the operations of the Office of Audit and Investigations (OAI) of UNDP.