{
  "url": "https://openlegislation.uk/eu-regulation-2014-1042/annex-II/division-5",
  "json_url": "https://openlegislation.uk/eu-regulation-2014-1042/annex-II/division-5.json",
  "legislation": "eur/2014/1042",
  "legislation_title": "Commission Delegated Regulation (EU) No 1042/2014 of 25 July 2014 supplementing Regulation (EU) No 514/2014 with regard to the designation and management and control responsibilities of Responsible Authorities and with regard to status and obligations of Audit Authorities",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2014-1042",
  "path": "annex/II/division/5",
  "kind": "division",
  "number": "(5)",
  "heading": "AUDITS OF EXPENDITURE",
  "text": "This section shall include the following information:\n5.1 Details of the bodies that carried out the audits of expenditure (as provided for in Articles 14.3 and 14.4 of Commission Delegated Regulation (EU) No 1042/2014).\n5.2 Description of the sampling methodology applied, specifying the sampling parameters used and the underlying calculations and professional judgement applied to the sample selection , the calculation of the total error rate (including stratification where applicable) and information on whether the methodology is in line with the audit strategy. If stratification is applied, the strata parameters need to be described.\n5.3 Analysis of the principal results of the audits of expenditure, describing the number of sample items audited, the respective amounts and type of financial data audited, the nature and type of errors detected and the applicable corrective measures proposed by the Audit Authority (including measures to avoid similar errors in the future, financial corrections for the individual irregularities detected as well as any applicable extrapolated or flat-rate financial corrections ). If stratification is applied, further information by strata is to be provided in this section and summarised in Table 10.2 ‘Results of audits of expenditure’ annexed to the annual control report.\n5.4 If the audit sample includes interim payments and/or final payment clearing advance payments declared in the accounts of previous financial years, the amount of the advance payments falling within the scope of audits of expenditure, the errors detected and applicable financial corrections relating to these advance payments shall be presented in Table 10.3 ‘ Results of audits on additional expenditure ’ annexed to the annual control report.\n5.5 Explanations on how the error rates presented in Table 10.2 are calculated and, if applicable, information on the audits of additional expenditure presented in Table 10.3.\n5.6 Information on whether any irregularities detected by the audits of expenditure are considered to be systemic in nature and therefore entail a risk to other payments, including the quantification of their impact on the population and any related financial corrections.\n5.7 Information on the status of implementation by the Responsible Authority of the corrective measures including financial corrections proposed by the Audit Authority as a result of the audits of expenditure before submitting the ‘ final accounts ’ to the Commission. Any possible deviations between the corrections proposed by the Audit Authority and the corrections implemented by the Responsible Authority should be disclosed.\n5.8 Information on the follow-up of audits of expenditure carried out in previous years, in particular on deficiencies of a systemic nature.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Inserted by Commission Delegated Regulation (EU) 2018/1291 of 16 May 2018 amending Delegated Regulation (EU) No 1042/2014 supplementing Regulation (EU) No 514/2014 of the European Parliament and of the Council with regard to the designation and management and control responsibilities of Responsible Authorities and with regard to status and obligations of Audit Authorities."
    },
    {
      "type": "footnote",
      "label": "f1",
      "text": "The sampling parameters include the sampling unit, population value and size, sample value and size, audit coverage (in EUR and the percentage of items and amounts covered) and the sampling criteria. For statistical sampling, the materiality level, confidence level, expected error rate and sampling interval should also be indicated."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "If non-statistical sampling is applied, the Audit Authority should indicate the steps taken to ensure randomness of the sample (and its representativity) and provide a sufficient sample size to enable the Audit Authority to estimate the total error of the population and draw up a valid audit opinion."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "For example: eligibility, public procurement, state aid."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "Random, systemic or anomalous errors."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "Flat-rate and/or extrapolated financial corrections may be applicable for example if there are systemic errors and/or if the total error rate on the draft accounts is material."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2014/1042/annex/II/division/5",
    "retrieved_at": "2026-11-01T14:47:16.803828+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}