RESTRICTED
WORLD TRADE WT/L/156
5August 1996
ORGANIZATION(96-3041)
Committee onBudget, Finance andAdministration
FINANCIAL REGULATIONS
OFTHE
WORLD TRADE ORGANIZATIONWT/L/156
Page2/3
CONTENTS
Page
Chapter I. Authority andapplicability .............................. 4
Chapter II. Preparation ofthebudget estimates ......................... 4
Chapter III. Adoption ofthebudget ................................ 5
Chapter IV. Collection offunds ................................... 5
(a) Contributions from Members ........................ 5
(b) Other income ................................. 7
(c) Voluntary contributions, giftsordonations ............... 7
Chapter V. Useoffunds ..................................... 8
Chapter VI. TheSurplus Account .................................. 8
Chapter VII. TheWorking Capital Fund .............................. 9
Chapter VIII. Custody andinvestment offunds .......................... 10
Chapter IX. Theaccounts ..................................... 10
Chapter X. Internal control ..................................... 11
Chapter XI. External audit ..................................... 12
APPENDIX TOTHE FINANCIAL REGULATIONS
Additional terms ofreference governing external audit ....................... 14WT/L/156
Page4
CHAPTER I.AUTHORITY AND APPLICABILITY
Regulation 1
These Regulations shallgovern thefinancial administration oftheWorld Trade Organization
(WTO).
Regulation 2
TheDirector-General shallberesponsible fortheimplementation ofthese Regulations. He
maydelegate toother officers oftheWTO suchauthority asheconsiders necessary fortheeffective
implementation ofthese Regulations.
Regulation 3
Rules made bytheDirector-General inorder tocarry outtheprovisions ofthese Regulations
shallbecommunicated totheGeneral Council forapproval.
Regulation 4
These Regulations shallnotbeamended except bytheGeneral Council acting upontheadvice
oftheCommittee onBudget, Finance andAdministration.
CHAPTER II. PREPARATION OFTHE BUDGET ESTIMATES
Regulation 5
Thefinancial period oftheWTO shallbeonecalendar year.
Regulation 6
1. Forevery financial period, theDirector-General shallprepare budget proposals containing
estimates oftheincome andexpenditure oftheWTO.
2. Theestimates shallbeexpressed inSwiss francs.
Regulation 7
1. Theproposed expenditure estimates shallbedivided intoparts andsections.
2. Theproposed expenditure estimates shallbeaccompanied bysuchinformation annexes and
explanatory statements asmayberequested byoronbehalf oftheGeneral Council, andsuchfurther
annexes orstatements astheDirector-General maydeem necessary anduseful.
Regulation 8
1. Supplementary budget proposals forthecurrent financial period maybesubmitted bythe
Director-General whenever necessary.WT/L/156
Page5
2. TheDirector-General shallprepare supplementary budget proposals inaformconsistent with
theapproved budget. These proposals shallfollow thesame examination andapproval process asfor
theannual budget proposals.
Regulation 9
Theincome estimates shallconsist of:
(a) aschedule ofmiscellaneous income showing foreachitem, inaddition totheestimated
amounts, theapproved amount forthepreceding financial period;
(b) adraft scale ofcontributions tobeassessed onMembers, showing foreachMember, the
proposed assessment andthecontribution assessed forthepreceding financial period.
CHAPTER III. ADOPTION OFTHE BUDGET
Regulation 10
TheDirector-General shallsubmit thebudget estimates totheCommittee onBudget, Finance
andAdministration intimeforittobeconsidered atitssession intheAutumn preceding each
financial period. Atthesame time, these budget estimates shallbetransmitted toallMembers ofthe
WTO.
Regulation 11
TheCommittee onBudget, Finance andAdministration shallexamine thebudget estimates
andprepare areport thereon which shallbesubmitted totheGeneral Council foradoption.
CHAPTER IV. COLLECTION OFFUNDS
(a)Contributions from Members
Regulation 12
1. Theexpenses oftheWTO shall befinanced bycontributions from Members and
miscellaneous income. Thecontributions shallbeaccording tothescale ofassessments determined
bytheGeneral Council.
2. Theshare tobecontributed byeachMember totheannual operating budget oftheWTO shall
beestablished onthebasis ofthatcountry 's(orseparate customs territory 's)international trade
(imports plusexports) inrelation tothetotalinternational trade ofallWTO Members.
3. Thefigures usedshallbethose forthelastthree years forwhich dataareavailable.
4. Thestatistics usedshallrelate totrade ingoods,1services andintellectual property rights as
reported inBalance ofPayments statistics fromtheInternational Monetary Fund (IMF); withregard
toservices, thestatistics shallrelate tothedefinition ofcommercial services asapplied intheWTO.
1excluding goldheldasastore ofvalue (deposit money banks)WT/L/156
Page6
5. Where IMFdatadeviate from IMFguidelines andinclude transactions notrelated togoods,
services orintellectual property rights, adjustments provided totheWTO bytheCentral Bank orthe
National Statistical Office ofaMember shallbetaken intoaccount bytheSecretariat when adequately
documented andjustified.
6. IfIMFdataarenotavailable, theWTO Secretariat shalluseestimates based onthebestother
available sources.
7. Aminimum contribution of0.03percent willbeapplied tothose members whose share inthe
totalinternational trade ofallWTO Members islessthan0.03percent.
8. Thecontributions shallbeassessed andpaidinSwiss francs.
Regulation 13
1. After theGeneral Council hasadopted thebudget, theDirector-General shall:
(a) transmit therelevant documents totheMembers;
(b) inform theMembers oftheircommitments inrespect ofannual contributions, andsend
acorresponding invoice;
(c) request theMembers toremit theircontributions.
2. Inaccordance withArticle VII,4oftheMarrakesh Agreement Establishing TheWorld Trade
Organisation, Members havetheobligation tocontribute promptly totheWTO theirshare inthe
expenses oftheWTO. Contributions shallbeconsidered asdueandpayable infullupon receipt of
theinvoice oron1January ofthefinancial period towhich theyrelate, whichever islater. Asof
1January ofthefollowing calendar year, theunpaid balance ofsuchcontributions shallbeconsidered
tobeoneyearinarrears.
Regulation 14
TheDirector-General shalltakeappropriate action withaviewtoensuring thatMembers pay
theirannual contributions promptly. Heshallreport regularly totheCommittee onBudget, Finance
andAdministration onthestateofpayment ofcontributions.
Regulation 15
States orseparate customs territories having thestatus ofObservers mayonlyaccede tothe
WTO iftheirfinancial obligations asObservers havebeenfullydischarged. NewMembers shallbe
required tomake aproratacontribution fortheyearinwhich theybecome Members, afterany
relevant deduction oftheirassessment asObserver which shallalsobecalculated onaproratabasis
forthatyear. NewMembers shallalsoberequired toprovide theirproportion ofthetotaladvances
totheWorking Capital Fund; thisadvance shallbecarried tothecredit oftherelevant Member.
Payments made byaMember shallbecredited firsttotheWorking Capital Fund andthentothe
contributions due.WT/L/156
Page7
Regulation 16
Anypayment inrespect ofcontributions made byaMember which hasnotpaidinfullits
contribution forprevious calendar years shall, unless theGeneral Council decides otherwise, be
credited against theearliest dateofsucharrears.
Regulation 17
AProvision forcontributions inarrears shallbemaintained. Itshallbefunded through the
Surplus Account.
(b)Other income
Regulation 18
1. Except insofarastheGeneral Council maydecide otherwise, allincome other than(a)
contributions payable byMembers, (b)interest earned byinvesting contributions received bythe
Secretariat andnotrequired immediately, (c)income derived frominvestments oftheWorking Capital
Fund, (d)direct refunds ofprior year'sexpenditure received during thecurrent financial period, and
(e)assessments ofObservers, shallbeclassed asmiscellaneous income.
2. Foreachfullpayment ofanannual contribution between 1988 and1994, anyMember with
pre-1988 arrears andassessed attheminimum contribution in1988 maycancel anequal number of
assessments for1987 andearlier years upon payment ofthe1989 minimum contribution of
SwF19,137. Thedifference between anoutstanding contribution forpre-1988 andtheamount of
SwF19,137 shallbefunded bymiscellaneous income.
(c)Voluntary contributions, giftsordonations
Regulation 19
1. Voluntary contributions, giftsordonations maybeaccepted bytheDirector-General provided
thatthepurposes forwhich thecontributions aremade areconsistent withthepolicies, aims and
activities oftheWTO, andprovided thattheacceptance ofsuchcontributions which directly or
indirectly involve additional financial liability fortheWTO shallrequire theconsent oftheCommittee
onBudget, Finance andAdministration.
2. Moneys accepted forpurposes specified bythedonor shallbetreated astrustfunds orspecial
accounts.
3. Moneys accepted inrespect ofwhich nopurpose isspecified shallbetreated asmiscellaneous
income andreported as"gifts" intheaccounts ofthefinancial period.
4. Money received byastaffMember ashonoria inhis/her official capacity shallberemitted
totheOrganization andbecredited totheWTO StaffAssistance Fund.
5. Unless otherwise provided, such voluntary contributions, gifts ordonations shall be
administered inaccordance withthepresent Financial Regulations.WT/L/156
Page8
CHAPTER V.USEOFTHE FUNDS
Regulation 20
Theadoption ofabudget bytheGeneral Council shall constitute anauthorization tothe
Director-General toincur obligations andmake payments forthepurposes forwhich the
appropriations were voted anduptotheamounts sovoted.
Regulation 21
Appropriations shall beavailable forobligation during thefinancial period towhich they
relate.
Regulation 22
Appropriations shallremain available fortwelve months following theendofthefinancial
period towhich theyrelate totheextent thattheyarerequired todischarge obligations inrespect of
goods supplied andservices rendered inthefinancial period andtoliquidate anyother outstanding
legal obligation ofthefinancial period. Thebalance oftheappropriations shallbesurrendered by
transfer totheSurplus Account.
Regulation 23
Attheendofthetwelve-month period provided inRegulation 22above, thethenremaining
balance ofanyappropriations retained shallbetransferred tomiscellaneous income. Anyunliquidated
obligations ofthefinancial period inquestion shall, atthattime, becancelled or,where theobligation
remains avalid charge, transferred asanobligation against current appropriations.
Regulation 24
Attheendofthefinancial period theDirector-General shallreport onthetransfers ofcredits
between sections oftheexpenditure budget totheGeneral Council forapproval. Foritems so
identified bytheCommittee onBudget, Finance andAdministration atthetimeofbudget finalization,
transfer shallnotbepermitted.
Regulation 25
TheDirector-General mayenter intocommitments forfuture financial periods, provided that
suchcommitments:
(a) areforactivities which havebeenapproved bytheGeneral Council andareexpected
tocontinue beyond theendofthecurrent financial period; or
(b) areauthorized byspecific decisions oftheGeneral Council.
CHAPTER VI. THE SURPLUS ACCOUNT
Regulation 26
1. Budgetary surpluses shall betransferred totheSurplus Account pending decision bythe
General Council ontheiruse.WT/L/156
Page9
2. Increases anddecreases oftheprovision forcontributions inarrears shallbeeffected bymeans
oftheSurplus Account.
3. Ifattheendofafinancial yeartheSurplus Account shows acredit balance ,theDirector-
General shallmake proposals totheCommittee onBudget, Finance andAdministration withregard
toitsusewhich maybe:
(i) application asincome against thebudget forthesecond yearfollowing thatinwhich
thesurplus occurs, thereby reducing Member 'scontributions;
(ii) transfer totheWorking Capital Fund; or
(iii) useforanyother purpose decided upon bytheGeneral Council.
4. Adeficit intheSurplus Account attheendofafinancial period shallbecovered, totheextent
possible, bytransfer from theWorking Capital Fund. Anypartofthedeficit leftuncovered after
transfer from theWorking Capital Fund shallbeincluded asanappropriate credit inthebudget for
thenextearliest possible financial period.
CHAPTER VII. THE WORKING CAPITAL FUND
Regulation 27
TheWorking Capital Fund shallbeconstituted by:
(a) assessed advances made byMembers. Suchsums shallbecarried tothecredit ofthe
Members which havepaidthem;
(b) anysums which theGeneral Council maycause tobepaidintoitfrom timetotime.
Such sums shallbecarried tothecredit oftheorganization.
Regulation 28
Anygovernment acceding totheWTO shallmake anadvance totheFund inaccordance with
thescale ofcontributions applicable tothebudget fortheyearofitsaccession. Theminimum
advance totheWorking Capital Fund amounts to0.5percentoftheprincipal oftheFund for
countries orseparate customs territories whose share ofthetotaltrade ofMembers is0.5percentor
less.
Regulation 29
TheDirector-General isauthorized toadvance from theWorking Capital Fund:
(a) suchsums asmaybenecessary tofinance budgetary appropriations pending receipt
ofcontributions;
(b) inexceptional circumstances andsubject toprior authorization oftheGeneral
Council, such sums asmay benecessary tofinance commitments relating to
extraordinary expenditure.WT/L/156
Page10
Regulation 30
Sums advanced under Regulation 29(a) above shall bereimbursed totheWorking Capital
Fund assoonasreceipts from contributions areavailable forthepurpose. Sums advanced under
Regulation 29(b) shallbereimbursed totheWorking Capital Fund byincluding anappropriate credit
inthebudget forthenextearliest possible financial period.
Regulation 31
TheGeneral Council mayliberate allorpartofthesums constituting theWorking Capital
Fund, andthesums soliberated insofarastheyarederived from monies placed intheFund under
Regulation 27(a) shallbereturned inSwiss francs totheMembers which havecontributed totheFund
inproportion totheirrespective shares intheFund.
Regulation 32
Subject toadecision oftheGeneral Council, countries orseparate customs territories which
foranyreason cease tobeMembers oftheWTO shallbeentitled tothereimbursement ofthetotal
Swiss franc amount oftheirshares intheWorking Capital Fund under Regulation 27(a).
Regulation 33
Interest accrued ontheWorking Capital Fund shallbeadded totheWorking Capital Fund
andcarried tothecredit oftheOrganization under Regulation 27(b) above.
CHAPTER VIII. CUSTODY AND INVESTMENT OFFUNDS
Regulation 34
1. TheDirector-General shalldesignate thebankorbanks inwhich thefunds oftheWTO shall
bekept.
2. TheDirector-General maymake non-speculative short-term investments ofmonies notneeded
forimmediate requirements. Theinvestments ofmonies standing tothecredit ofanytrustfunds,
reserve orspecial account shallbesubject toanydirectives oftheappropriate authority.
3. TheDirector-General shall include inthefinancial statements submitted totheGeneral
Council astatement oftheinvestments currently held.
4. Income from investments shallbecredited asprovided intherules oragreement relating to
eachfundoraccount.
CHAPTER IX. THE ACCOUNTS
Regulation 35
1. TheDirector-General shallmaintain suchaccounts asarenecessary andshallprepare final
accounts foreachfinancial period onanaccrual basis showing:
(a) theincome andexpenditure ofallfunds;WT/L/156
Page11
(b) thestatus ofallappropriations, including:
(i) theoriginal budget appropriations;
(ii) anysupplementary appropriations ;
(iii) theappropriations asmodified byanytransfers;
(iv) credits, ifany,other thantheappropriations voted bytheGeneral Council;
(v) theamounts charged against theappropriations; and
(vi) theamounts charged against anyother credit.
(c) statements ofassets andliabilities attheclose ofthefinancial period.
Heshall alsogivesuchother information asmaybeappropriate toindicate thecurrent financial
position oftheWTO.
Regulation 36
Appropriate separate accounts shallbemaintained inrespect ofalltrustfunds, reserves and
special accounts.
Regulation 37
Thefinalaccounts oftheWTO shallbepresented inSwiss francs. Theaccounting records
may, however, bekeptinsuchcurrency orcurrencies astheDirector-General maydeem necessary.
Regulation 38
Thefinalaccounts shallbesubmitted totheexternal auditor assoonaspracticable following
theendofthefinancial period towhich theyrelate.
Regulation 39
TheDirector-General shallsubmit thefinalaccounts andafinancial report foreachfinancial
period andtheexternal auditor 'sreport thereon totheGeneral Council assoon aspracticable
following theclose ofthatperiod.
Regulation 40
Thefinalaudited accounts shallbesubmitted totheGeneral Council forapproval.
CHAPTER X. INTERNAL CONTROL
Regulation 41
TheDirector-General shall:
(a) establish detailed financial rulesandprocedures inorder toensure effective financial
administration andtheexercise ofeconomy;
(b) cause allpayments tobemade onthebasis ofappropriate supporting documents and
other documents which ensure thattheservices orgoods havebeenreceived andthat
payments havenotpreviously beenmade;WT/L/156
Page12
(c) designate theofficers whomayreceive monies, incur obligations andmake payments
onbehalf oftheWTO;
(d) maintain aninternal financial control which shall provide foraneffective current
examination and/or review offinancial transactions inorder toensure:
(i) theregularity ofthereceipt, custody anddisposal ofallfunds andother
financial resources oftheWTO;
(ii) theconformity ofobligations andexpenditures withtheappropriations or
other financial provisions voted bytheGeneral Council, orwiththepurposes
andrules relating totrustfunds andspecial accounts;
(iii) theeconomic useoftheresources oftheWTO.
Regulation 42
Commitments orobligations shallnotbeincurred andpayments shallnotbemade unless an
appropriate authorization hasbeenmade under theauthority oftheDirector-General.
Regulation 43
TheDirector-General may, onanexceptional basis, make suchexgratia payments ashe
deems tobenecessary intheinterests oftheWTO. Astatement ofsuchpayments shallbesubmitted
withthefinalaccounts.
Regulation 44
TheDirector-General may, afterfullinvestigation, authorize thewriting-off oflosses ofcash,
supplies, equipment andother assets, other thanarrears ofcontributions. Astatement ofallsuch
losses written offduring thefinancial period shallbesubmitted totheexternal auditor withthefinal
accounts.
Regulation 45
TheDirector-General shallestablish rules fortheprocurement ofequipment, supplies and
other requirements, including rules governing theinvitation oftenders.
CHAPTER XI. EXTERNAL AUDIT
Regulation 46
1. TheGeneral Council shallappoint anexternal auditor toperform theaudit oftheaccounts
oftheWTO.
2. Theexternal auditor shallbetheAuditor-General (orofficer holding theequivalent title)of
aMember oftheWTO oranother person ofhighcompetence.
3. Theexternal auditor shallnotberemoved during histenure ofoffice except bytheGeneral
Council.WT/L/156
Page13
Regulation 47
1. Theaudit shall beconducted inconformity with generally accepted common auditing
standards and,subject toanyspecial directives oftheGeneral Council, inaccordance withthe
additional terms ofreference setoutintheAppendix tothese Regulations.
2. Theexternal auditor maymake observations withrespect totheefficiency ofthefinancial
procedures, theaccounting system, theinternal financial controls and,ingeneral, theadministration
andmanagement oftheWTO.
3. Theexternal auditor shallbecompletely independent andsolely responsible fortheconduct
oftheaudit.
4. TheGeneral Council mayrequest theexternal auditor toperform certain specific examinations
andissue separate reports ontheresults.
Regulation 48
1. TheDirector-General shallprovide theexternal auditor withthefacilities hemayrequire in
theperformance oftheaudit.
2. Forthepurpose ofmaking alocalorspecial examination orofeffecting economies ofaudit
cost, theexternal auditor mayinconsultation withtheDirector-General engage theservices ofany
national Auditor-General (orofficer holding theequivalent title) orcommercial public auditors of
known repute oranyother person orfirmwho, intheopinion oftheexternal auditor, istechnically
qualified.
Regulation 49
1. Theexternal auditor shallissue areport ontheaudit ofthefinancial statements andrelevant
schedules reflecting theposition ofthefinalaccounts forthefinancial period which shallinclude such
information ashedeems necessary inregard tomatters referred toinRegulation 47,paragraph 2,and
intheadditional terms ofreference.
2. Theexternal auditor 'sreport shall besubmitted totheGeneral Council, through the
Committee onBudget, Finance andAdministration, together withtheaudited financial statements.
TheCommittee onBudget, Finance andAdministration shallexamine thefinancial statements andthe
auditor 'sreport andshall forward them totheGeneral Council withsuchcomments asitdeems
appropriate.WT/L/156
Page14
APPENDIX TOTHE FINANCIAL REGULATIONS
Additional terms ofreference governing external audit
1. Theexternal auditor shallperform suchaudit oftheaccounts oftheWTO, including alltrust
funds andspecial accounts, ashedeems necessary inorder tosatisfy himself that:
(a) thefinancial statements areinaccord withthebooks andrecords oftheWTO;
(b) thefinancial transactions reflected inthestatements havebeeninaccordance withthe
rules andregulations, thebudgetary provisions andother applicable directives;
(c) thesecurities andmoneys ondeposit andonhand havebeenverified bycertificate
received direct from theWTO 'sdepositories orbyactual count;
(d) theinternal controls areadequate;
(e) procedures satisfactory totheexternal auditor havebeenapplied totherecording of
allassets, liabilities, surpluses anddeficits.
2. Theexternal auditor shall bethesolejudge astoacceptance inwhole orinpartof
certifications andrepresentations bytheDirector-General andmay proceed tosuch detailed
examination andverification ashechooses ofallfinancial records, including those relating tosupplies
andequipment.
3. Theexternal auditor andhisstaffshallhavefreeaccess atallconvenient times toallbooks,
records andother documentation which are,intheopinion oftheexternal auditor, necessary forthe
performance oftheaudit. Information classified asconfidential shall bemade available on
application. Theexternal auditor andhisstaffshallrespect theconfidential nature ofanyinformation
soclassified which hasbeenmade available andshallnotmake useofitexcept indirect connection
withtheperformance oftheaudit.
4. Theexternal auditor shallhavenopower todisallow items intheaccounts butshalldraw to
theattention oftheDirector-General forappropriate action anytransaction concerning which he
entertains doubts astolegality orpropriety. Audit objections, tothese oranyother transactions,
arising during theexamination oftheaccounts shallbeimmediately communicated totheDirector-
General.
5. Theexternal auditor shall express andsignanopinion inthefollowing terms: "Ihave
examined thefinancial statements numbered ...to...andrelevant schedules oftheWTO forthe
financial period ended 31December ....Myexamination included ageneral review oftheaccounting
procedures andsuchtestsoftheaccounting records andother supporting evidence asIconsidered
necessary inthecircumstances." Theexternal auditor 'sopinion shallstate, asappropriate, whether:
(a) thefinancial statements present fairly thefinancial position asattheendoftheperiod
andtheresults oftheoperations fortheperiod;
(b) thefinancial statements were prepared inaccordance with thestated accounting
principles;
(c) theaccounting principles wereapplied onabasisconsistent withthatofthepreceding
financial period;WT/L/156
Page15
(d) transactions were inaccordance with theFinancial Regulations andlegislative
authority.
6. Thereport oftheexternal auditor totheGeneral Council onthefinancial operations ofthe
period should mention:
(a) thetypeandscope ofhisexamination;
(b) matters affecting thecompleteness oraccuracy oftheaccounts, including where
appropriate:
(i) information necessary tothecorrect interpretation oftheaccounts;
(ii) anyamounts which ought tohave been received butwhich have notbeen
brought toaccount;
(iii) anyamounts forwhich alegalorcontingent obligation exists andwhich have
notbeenrecorded orreflected inthefinancial statements;
(iv) expenditures notproperly substantiated;
(v) whether proper books ofaccounts havebeenkept;
(vi) anydeviations ofamaterial nature inthepresentation offinancial statements
from generally accepted accounting principles applied onaconsistent basis;
(c) other matters should bebrought tothenotice oftheGeneral Council, suchas:
(i) cases offraud orpresumptive fraud;
(ii) wasteful orimproper expenditure oftheWTO 'smoney orother assets
(notwithstanding theaccounting forthetransaction maybecorrect);
(iii) expenditure likely tocommit theWTO tofurther outlay onalarge scale;
(iv) anydefect inthegeneral system ordetailed regulations governing thecontrol
ofreceipts anddisbursements orofsupplies andequipment;
(v) expenditure notinaccordance withtheintention oftheGeneral Council after
making allowance fordulyauthorized transfers within thebudget;
(vi) expenditure inexcess ofappropriations asamended byduly authorized
transfers within thebudget;
(vii) expenditure notinconformity withtheauthority which governs it;
(d) theaccuracy orotherwise ofthesupplies andequipment records asdetermined by
stocktaking andexamination oftherecords;
(e) where appropriate, transactions accounted forinaprevious financial period
concerning which further information hasbeen obtained ortransactions inalater
financial period concerning which itseems desirable thattheGeneral Council should
haveearly knowledge.
7. Theexternal auditor maymake suchobservations withrespect tohisfindings resulting from
theaudit andsuchcomments ontheDirector-General 'sfinancial report ashedeems appropriate to
theGeneral Council andtotheDirector-General.
8. Whenever theexternal auditor 'sscope ofauditisrestricted, orheisunable toobtain sufficient
evidence, heshallrefertothematter inhisopinion andreport, making clearinhisreport thereasons
forhiscomments andtheeffect onthefinancial position andthefinancial transactions asrecorded.WT/L/156
Page16
9. Innocaseshalltheexternal auditor include criticism inhisreport without firstaffording the
Director-General anadequate opportunity ofexplanation onthematter under observation.
10. Theexternal auditor isnotrequired tomention anymatter referred tointheforegoing which,
inhisopinion, isnotmaterial.