External financial accountability mechanisms are primarily based on the external audit of an EMB’s financial activities and statements. Additional external audits may be undertaken on specific financial systems (such as salary payments), or following allegations of corrupt or irregular practices within an EMB. In the latter case, state anti-corruption bodies may also be involved in the external audit.
Many EMBs’ external financial auditing is undertaken by a government audit agency, such as the State Audit Office in Bosnia and Herzegovina, the auditor-general in Australia and Canada, or the Comptroller General of the Republic in Honduras and Panama (during election periods). External audit of the EMB in Turkey is by an Audit Court that is responsible to the legislature. In Portugal, the governmental EMB may be audited by the Ministry of Finance and the Court of Auditors. In Zambia, EMB finances are audited annually by independent auditors appointed by the EMB, while in Russia, the external audit is performed by the Federal Assembly through its Accounts Chamber. In Peru, EMB finances must be audited no later than three months after elections.
An EMB normally incorporates audited financial statements into its annual or other reports for submission to the legislature and other stakeholders. For example, in Cameroon, the audited financial reports are tabled in the legislature, while the performance audit is submitted to the president.
Review of an EMB’s financial accounts by a committee of the legislature, often called a Public Accounts Committee, can provide a public demonstration of the EMB’s financial integrity. The framework of such reviews needs to ensure that the EMB is questioned fairly, rather than for political advantage. If auditors have identified poor financial management practices, members or senior executives of the EMB may be summoned to explain the circumstances and describe the remedial action that has been taken.
