Audit

A formal examination of an organisation’s or individual’s accounts or financial situation. The EU is subject to both an external and an internal audit to provide complete, accurate and readily available information on budgetary and policy implementation: - External audit: audit performed by the European Court of Auditors (ECA), the Union’s independent external auditor. The ECA checks if the budget of the European Union has been implemented correctly, and that EU funds have been raised and spent legally and in accordance with the principles of sound financial management. - Internal audit: audit performed by a body’s staff rather than an independent certified public accountant. The internal auditor is designated by the institution, which it must advise on how to deal with risks; it issues independent opinions on the performance and quality of management and control systems, and recommends improvements.