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In addition, for more than a decade, the ICRC has run theCompliance and Quality Assurance Centre in the Philippines.It ensures comprehensive and consistent quality control of allaccounting and logistics documents to ensure that financialtransactions in the field are supported with bona fide documentationand that the standards set by the financial framework arerespected.A list of the main financial risks and associated control measureshas been drawn up by the ICRC and validated by the externalauditors. The list is reviewed at least once a year, although it canbe updated whenever necessary. Any required follow-up is doneby the unit.The overall objective is to ensure the ICRC is fully accountable toits donors and other stakeholders, such as the authorities in contextswhere it operates.statement of comprehensive income and expenditure, the consolidatedcash-flow statement, the consolidated statement of changesin reserves and the notes to the consolidated financial statements.The audit is conducted in accordance with the InternationalStandards on Auditing. The external audit opines on whetherthe consolidated financial statements give a true and fair view inaccordance with the International Financial Reporting Standardsas adopted by the International Accounting Standards Board,Swiss law and the ICRC’s Statutes. The audit report is published inthe ICRC’s Annual Report.The external auditors examine on a sample basis evidence supportingamounts and disclosures. They review the accountingprinciples used, significant estimates made, and the overall consolidatedfinancial statement presentation. They also give an opinionon whether an internal control system is in place.INTERNAL AUDITAccording to Article 14 of the Statutes of the ICRC, the “InternalAudit shall have an internal monitoring function independent ofthe Directorate. It shall report directly to the Assembly. It shallproceed through internal operational and financial audits”. TheICRC Internal Audit covers “the ICRC as a whole, both field andheadquarters”. Its aim is “to assess, on an independent basis, theperformance of the institution and the pertinence of the meansdeployed in relation to the ICRC’s strategy”. In the area of finance,its role complements that of the external auditors (see below).The Internal Audit helps the ICRC accomplish its objectives byusing a systematic, disciplined approach to ensure and give addedvalue to the effectiveness of risk-management, control and governanceprocesses. Its methodology follows the Standards forthe Professional Practice of Internal Auditing of the Institute ofInternal Auditors.The Internal Audit reports its findings directly to the ICRC presidentand the Control Commission, and issues recommendationsto the management. The head of Internal Audit is appointed bythe Assembly.The Internal Audit’s yearly work programme and budget are presentedto the Assembly for approval. Each audit assignment isconcluded by an audit report. The Directorate is responsible forresponding to the recommendations included in Internal Auditreports; a formal system for following up the recommendations ineach report is in place. Progress in implementation is reported tothe Control Commission of the Assembly.EXTERNAL AUDITThe ICRC’s principal revenue source is the contributions of governmentsand National Societies, funds from private sources andincome from securities. According to Article 15 of the Statutesof the ICRC, the utilization of this revenue and of ICRC reservesshall be subject to independent financial verification, both internally(by Internal Audit) and externally (by one or more firms ofauditors).Each year, external auditors, currently Ernst & Young, audit theICRC’s consolidated financial statements. The statements includethe consolidated statement of financial position, the consolidatedICRC MANAGEMENT FRAMEWORK AND DESCRIPTIONS OF PROGRAMMES | 23