European court of auditors: the financial conscience of the European union

Abstract

This thesis presents and analyses the legal dispositions concerning the European Court of Auditors. The Court is the institution responsible for the external audit in the European Union. After a short presentation of the Court's historical background, there is an examination of this institution's structure. Provisions regarding its Members, Personnel and Internal Organisation are analysed in an attempt to assess the Court’s structural framework An analysis of the Court's mission, namely to examine all the accounts (revenue/expenditure) of the Communities and of all bodies set up or simply financed by them, is next. The analysis focuses on the audit regarding the regularity/legality of the transactions and the soundness of the financial management. The method used for these audits, called the "systems based approach" is presented and explained. The reporting activities of the Court (Annual Report, Statement of Assurance, Special Reports), being of essential importance since they include the findings of the Court along with the replies of the audited institutions, are given much attention. Because of its competences the Court is a major player in the battle against fraud in the Communities and its role in that issue is also assessed. The thesis includes also an examination of the Court's auditing competences regarding expenditure for the second and third pillar of the European Union. The collaboration between the Court and the other institutions (Commission, Parliament, Council, European Investment Bank) is presented, focusing on the possibilities of improving it. The dependence of the Court on the assistance of the National Audit Institutions of the Member States, especially regarding on the spot checks is highlighted along with other aspects of their collaboration. The Court's estimations regarding the policies of the European Union (Common Agricultural Policy, Structural Policies, Measures outside the Union) are also included. Finally, the institutional nature of the Court is discussed and proposals regarding granting the Court judicial authority and restructuring it are made.