AUDIT, MICRO ASSESSMENT AND SPOT CHECKS OF UNICEF-LESOTHO COUNTRY OFFICE IMPLEMENTING PARTNERS

1. BACKGROUND AND JUSTIFICATION

A scheduled audit is used to determine whether the funds transferred to an Implementing partner (IP) were used for the appropriate purpose and in accordance with the Work plan (WP) The audit is conducted in accordance with International Auditing Standards (ISA) 800 Special Considerations Audit of Financial Statements Prepared in Accordance with Special Purpose Frameworks. The auditor expresses an opinion on whether the statement of expenditure for each programme is presented fairly, in all material respects, in accordance with UNICEF's accounting policy and the eligible expenditures incurred to implement activities in conformity with the terms of the IP agreement, work plan or programme document.

The statement of expenditure contains the transactions for the audit period and reports on the balance of any funds remaining unspent and due to UNICEF at the end of the project period. The transactions of the programme are also checked against the bank account reconciliations. The bank account is the account held by the Partner into which funds were deposited for the programme. The transactions are checked to determine whether they are adequately supported by appropriate documentation that evidences the validity of the transactions reported, and whether the goods and services procured have been received and used to implement the activities in line with the work plan or programme document The Auditor must also assess whether the amount reported on the statement of expenditure corresponds to the amount recorded in the Partner#s accounting system and reconciles to the amounts reported on the FACE forms for the audit period.