Main points

• UN entities are exposed to the risk of corruption perpetrated by their own personnel and by external third-parties. These include acts such as bribery and collusion to access funds and subcontracts for the implementation of projects.
• Enablers of corruption include weak reporting channels between staff and leadership, and dysfunctional investigations and whistleblowing systems that fail to respond to red flags and address fears of retaliation.
• International standards recognise internal audits as a key anti-corruption measure with preventive, reactive and detective functions. Conversely, the literature highlights that if an internal audit is not accompanied with adequate levels of independence, resources and oversight, it can be rendered ineffective or even be used to cover up corruption.
• Within the UN system, most organisations have their own internal audit offices. Additionally, the Office of Internal Oversight Services (OIOS) is mandated to assist the secretary-general in fulfilling his oversight responsibilities through internal audits of UN entities. The United Nations Representatives of Internal Audit Services (UN-RIAS) exists to enhance coordination across internal audit bodies.
• However, an internal audit is only one of several mechanisms the United Nations uses to protect its organisations against corruption and fraud. While it should interact with other oversight mechanisms, such as external audits, there are reported coordination bottlenecks.
• There is a significant lack of recent literature assessing the effectiveness of internal audits in addressing corruption in UN organisations. However, some publicly available internal audit reports indicate internal audit processes can uncover corruption risks.
• Further, assessment reports by the MOPAN (Multilateral Performance Network) of UN agencies suggest they generally have robust internal audit, internal control and corruption prevention systems in place. However, there are discrepancies between these findings and the allegations of corruption and fraud involving UN entities that have surfaced.
• Weaknesses identified across UN agencies include limited safeguards for audit independence, underfunded audit functions, weak governance of combined oversight roles, inconsistent transparency and disclosure, oversight committees vulnerable to capture and the lack of follow-up on red flags and recommendations.
• Conversely, existing good practices and recommendations from experts suggest improvements can be achieved by ensuring, among other things, genuine independence, adequate resourcing, and effective coordination mechanisms for internal auditors.