Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- External Audit Firm Mandatory Rotation and Limits on Provision of Audit-Related Services and Non-Audit-Related Services

Prepared by the Legal Department of the IMF
As updated as of February 29, 2016

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ARTICLE XII, SECTION 7
Publication of Reports

EXTERNAL AUDIT FIRM MANDATORY ROTATION AND LIMITS ON PROVISION OF AUDIT-RELATED SERVICES AND NON-AUDIT-RELATED SERVICES

  • 1. The contract to conduct the annual external audit of the financial statements of the Fund required under Article XII, Section 7(a) of the Fund’s Articles of Agreement and Section 20 of the Fund’s By-Laws shall be subject to bids every five years.

  • 2. There shall be a mandatory rotation of the Fund’s external audit firm every 10 years. In cases where the Fund’s external audit firm is awarded a second consecutive 5-year contract after the first 5-year period, the new contract will require that the audit firm rotate the engagement partner and the audit manager.

  • 3. The Fund’s external audit firm shall not be eligible to bid for, and shall not be awarded, the provision of non-audit-related consulting services to the Fund. The provision of audit-related consulting services to the Fund by the Fund’s external audit firm shall be subject to the prior approval of the Executive Board after consultation with the External Audit Committee (EAC), provided that, under no circumstances, shall the remuneration of the Fund’s external audit firm for such services exceed 33 percent of the value of the five-year contract for conducting the annual audit of the financial statements of the Fund.

  • 4. This decision shall not preclude the Fund’s current external audit firm from submitting bids in accordance with this decision and completing any other existing contracts with the Fund.

Decision No. 13323-(04/78),

August 5, 2004

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