188c
1. The Court of Auditors shall examine the accounts of all revenue and
expenditure of the Community. It shall also examine the accounts of
all revenue and expenditure of all bodies set up by the Community in
so far as the relevant constituent instrument does not preclude such
examination.
The Court of Auditors shall provide the European Parliament and the
Council with a statement of assurance as to the reliability of the
accounts and the legality and regularity of the underlying transactions.
2.The Court of Auditors shall examine whether all revenue has been
received and all expenditure incurred in a lawful and regular manner
and whether the financial arrangement has been sound.
The audit of revenue shall be carried out on the basis both of the
amounts established as due and the amounts actually paid to the
Community.
The audit of expenditure shall be carried out on the basis both of
commitments undertaken and payments made.
These audits may be carried out before the closure of accounts for the
financial year in question.
3. The audit shall be based on records and, if necessary, performed
on the spot in other institutions of the Community and in the Member
States. In the Member States the audit shall be carried out in liaison
with the national audit bodies or, if these do not have the necessary
powers, with the competent national departments. These bodies or
departments shall inform the Court of Auditors whether they intend to
take part in the audit.
The other institutions of the Community and the national audit bodies
or, if these do not have the necessary powers, the competent national
departments, shall forward to the Court of Auditors, at its request, any
document or information necessary to carry out its task.
4. The Court of Auditors shall draw up an annual report after the close
of each financial year. It shall be forwarded to the other institutions of
the Community and shall be published, together with the replies of
these institutions to the observations of the Court of Auditors, in the
Official Journal of the European Communities.
The Court of Auditors may also, at any time, submit observations,
particularly in the form of special reports, on specific questions and
deliver opinions at the request of one of the other institutions of the
Community.
It shall adopt its annual reports, special reports or opinions by a
majority of its members.
It shall assist the European Parliament and the Council in exer