It also mentioned the poor response to audit observations.

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

Annex 3. United Nations Board of Auditors 2002 2003 audit observations

Table 2 Audit observations by level of risk, 2003 and 2004

Table 3 Major underlying causes for field audit observations in 2004

UNOPS management is committed to addressing the underlying problems highlighted in the audit observations.

Medium and high risk observations are issued by the Director, OIA in audit reports.

Those findings will be communicated, as necessary, in the form of audit notes or observations

UNODC internal observations are shared with OIOS before audit visits to UNODC field offices are undertaken

As noted in previous annual reports, each audit report is made up of a series of observations .

All audit observations are classified by OIA according to an internationally recognized control framework to establish an understanding of the underlying issues associated with the audit findings.

78. These recommendations grew out of observations in the section of the audit report dealing with cash management.

(e) Review reports by the internal and external auditors and follow up on audit observations and control issues

(d) Attention given to addressing audit observations and recommendations on ways to improve or strengthen policies, procedures and processes.

UNOPS management used the audit observations to create a comprehensive action plan amenable to ongoing management monitoring of progress achieved.

The audit report was issued in September 2004 and as of 1 April 2005, three of the five observations had been addressed.

This is a very demanding standard but one that has contributed to an almost 100 per cent acceptance rate for OIA's audit observations.

Satisfactory and unsatisfactory risk management ratings are not determined by the specific number of medium and high risk observations issued in an audit.

He indicated that UNDP had developed an action oriented work programme with targets and specific responsibilities for follow up action to external audit observations.

The audit reports also include positive observations, which are issued when all aspects of a particular audited area are found to function fully as expected.

The major audit observations (61 per cent) are in the following key areas financial management (18 per cent) audit management (14 per cent) Information and communications technology (ICT) management (10 per cent), treasury management (10 per cent) and procurement management (9 per cent).

Observations

Observations

Observations

Observations

Observations

Observations

Observations

Observations

Observations

Observations

Observations

Observations

The management plan is structured and detailed so as to facilitate monitoring of remedial progress achieved in addressing the 38 audit observations, which are listed in annex 3.

Audit procedures and results of the additional audit scope

Internal audit

Audit Recommendations

Audit opinion

Audit process

Internal audit

Audit opinion

External audit

Internal audit

Audit costs

Internal audit