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1. The audit authority of an Interreg programme shall carry out the functions provided for in this Article and in Article 49 in the whole of the territory covered by that Interreg programme. Where the audit authority does not have the authorisation in the whole territory covered by a cooperation programme, it shall be assisted by a group of auditors composed of a representative from each Member State and, where applicable, third country, partner country or OCT, participating in the Interreg programme. Each Member State and, where applicable, each third country, partner country or OCT shall be responsible for audits carried out on its territory. Each representative from each Member State and, where applicable, each third country, partner country or OCT, participating in the Interreg programme shall be responsible for providing the factual elements relating to expenditure on its territory that are required by the audit authority in order to perform its assessment. The group of auditors shall be set up within three months of the decision approving the Interreg programme pursuant to Article 18. It shall draw up its rules of procedure and be chaired by the audit authority for the Interreg programme. The auditors shall be functionally independent from bodies or persons responsible for management verifications pursuant to Article 46(3).

2. The audit authority of an Interreg programme shall be responsible for carrying out system audits and audits on operations in order to provide independent assurance to the Commission that management and control systems function effectively and that expenditure included in the accounts submitted to the Commission is legal and regular.

3. Where an Interreg programme is included in the population from which the Commission selects a common sample pursuant to Article 49(1), the audit authority shall carry out audits of operations selected by the Commission in order to provide independent assurance to the Commission that management and control systems function effectively.

4. Audit work shall be carried out in accordance with internationally accepted audit standards.

5. The audit authority shall draw up and submit to the Commission, each year by 15 February following the end of the accounting year, an annual audit opinion in accordance with Article 63(7) of the Financial Regulation using the template set out in Annex XIX to Regulation (EU) 2021/1060 and based on all audit work carried out, covering each of the following components:

(a) the completeness, veracity and accuracy of the accounts;

(b) the legality and regularity of the expenditure included in the accounts submitted to the Commission; and (c) the management and control system of the Interreg programme. Where the Interreg programme is included in the population from which the Commission selects a common sample pursuant to Article 49(1), the annual audit opinion shall only cover the elements referred to in points (a) and (c) of the first subparagraph of this paragraph. The deadline of 15 February may exceptionally be extended by the Commission to 1 March, upon communication by the audit authority.

6. The audit authority shall draw up and submit to the Commission, each year by 15 February following the end of the accounting year, an annual control report in accordance with point (b) of Article 63(5) of the Financial Regulation using the template set out in Annex XX of Regulation (EU) 2021/1060 and, supporting the audit opinion provided for in paragraph 5 of this Article and setting out a summary of the findings, including an analysis of the nature and extent of any errors and deficiencies in the systems as well as the proposed and implemented corrective actions and the resulting total error rate and residual error rate for the expenditure entered in the accounts submitted to the Commission.

7. Where the Interreg programme is included in the population from which the Commission selects a common sample pursuant to Article 49(1), the audit authority shall draw up, using the template set out in Annex XX to Regulation (EU) 2021/1060, the annual control report referred to in paragraph 6 of this Article that fulfils the requirements of point (b) of Article 63(5) of the Financial Regulation and supports the audit opinion provided for in paragraph 5 of this Article. That report shall set out a summary of the findings, including an analysis of the nature and extent of any errors and deficiencies in the systems as well as the proposed and implemented corrective actions, the results of the audits of operations carried out by the audit authority in relation to the common sample referred to in Article 49(1) and the financial corrections applied by the Interreg programme authorities in respect of any individual irregularities detected by the audit authority for these operations.

8. The audit authority shall transmit system audit reports to the Commission as soon as the required contradictory procedure with the relevant auditees is concluded.

9. The Commission and the audit authority shall meet on a regular basis and at least once a year, unless otherwise agreed, to examine the audit strategy, the annual control report and the audit opinion, to coordinate their audit plans and methods and to exchange views on issues relating to the improvement of management and control systems.