EverardEverard referredreferred toto problemsproblems inin BelarusBelarus andand

ParliamentParliament inin itsits politicalpolitical function.function.

Court'sCourt's auditaudit work,work, sincesince manymany

IIwouldwould howeverhowever pointpoint outout thatthat

InterventionIntervention bvbv MrMr

OnOn thethe otherother handhand thethe

Court'sCourt's auditaudit approach.approach.

CommunityCommunity level.level.

RoleRole ofof consultantsconsultants

Court'sCourt's pointpoint ofof view,view, thethe developmentdevelopment ofof thethe relationsrelations withwith thethe nationalnational auditaudit institutionsinstitutions isis quitequite important.important.

But who is to guard the guardians? Who is to audit the auditors?

Who is to audit the auditors?

H. Independence of external auditors

PublicationsPublications ofof thethe

CourtCourt ofof Auditors Auditors

InIn practicalpractical terms,terms, thethe

InadequateInadequate andand passivepassive managementmanagement systemssystems areare anan idealideal breedingbreeding groundground forfor fraud.fraud.

ServiceService andand mademade availableavailable toto thethe presenterspresenters

II mentionedmentioned earlier,earlier,

Commission'sCommission's financialfinancial controlcontrol overover

(particularly(particularly thethe timetime spentspent byby traineestrainees andand presenterspresenters inin attendingattending coursescourses thethe

Committee,Committee, whichwhich hashas responsibilityresponsibility forfor preparingpreparing thethe adoptionadoption ofof thethe

thethe auditors,auditors, long termlong term programmingprogramming waswas beingbeing progressivelyprogressively improved.improved.

Control Control thethe politicalpolitical controlcontrol ofof EUEU assistanceassistance

Court'sCourt's auditaudit taskstasks onon aa day to dayday to day basis.basis.

Tacis Tacis projectsprojects areare notnot sufficientlysufficiently adaptedadapted toto thethe partners'partners' realreal needs.needs.

However, the data were generated by the various institutions of the European Community the Commission, the Council, the European Parliament, the Court of Justice, the Economic and Social Committee and the Court of Auditors.

ECUECU isis forfor cooperationcooperation withwith thethe countriescountries ofof CentralCentral andand

Other activities Chairman of the Israel Auditors apos Council (1976 1987).

IIshouldshould likelike toto stressstress inin addition,addition, isis thatthat itit takestakes bothbothatatthethesamesametime.time.AAcompetentcompetentauditorauditorwhowhoisisnotnotindependentindependentisisnonogoodgood ananindependentindependentoneonewhowhoisn'tisn'tcompetent,competent,isisnonogoodgoodeither.either.

XX)XX) waswas createdcreated inin 1968.1968.

Enterprises with no internal audit function should disclose the reasons for its absence.

Parliament,Parliament, whichwhich hashas enabledenabled thisthis seminarseminar toto taketake placeplace byby agreeing,agreeing, sixsix monthsmonths ago,ago, toto mymy requestrequest forfor appropriationsappropriations forfor organizingorganizing thisthis seminar.seminar.

ThisThis cyclecycle isis partpart ofof anan overalloverall packagepackage thatthat thethe newnew staffstaff followfollow duringduring theirtheir firstfirst ninenine monthsmonths withwith thethe

A principles based approach to auditor independence (as set out in the EC's 2002 recommendation on auditor independence and in the IFAC Code of Ethics) is valued for its adaptability to new practices.

BankBank coordinationcoordination tooktook placeplace onon aa projectproject byby projectproject basisbasis whereaswhereas thisthis waswas notnot thethe casecase forfor IMFIMF funds.funds.

CourtCourt enjoysenjoys organizationalorganizational autonomyautonomy andand hashas adoptedadopted itsits ownown rulesrules ofof procedure.procedure.

AlongAlong withwith thethe internalinternal controlcontrol servicesservices ofof thethe CommunityCommunity institutionsinstitutions andand tietie

StateState basedbased onon thethe rulerule ofof lawlaw andand aa marketmarket economy,economy, thethe creationcreation ofof

......thethe managementmanagement andand accountingaccounting organizationorganization ofof thethe departmentsdepartments ofof thethe

The process for the appointment of and interaction with external auditors should be disclosed.

StatesStates throughthrough thethe exchangeexchange ofof workwork programmesprogrammes andand informationinformation betweenbetween thethe

12.12.TheThe mainmain pointpoint toto bebe mademade herehere isis thatthat thethe externalexternal auditorauditor cancan useuse thesethese internalinternal controlscontrols toto hishis advantage.advantage.

CourtCourt administrationadministration representatives)representatives) onon trainingtraining matters.matters.

AnAn effectiveeffective auditaudit thusthus requiresrequires aastatestate ofof democracydemocracy whichwhich actuallyactually functions.functions.