In cases where the legislation establishing the entity requires the appointment of an external auditor, the following shall be taken into account:

1. The BOD, based on the recommendation of the Audit and Risk Committee, shall appoint or change one or more external auditors according to the size of the federal entity operations and work requirements, provided that they shall be licensed by the competent authorities within the State.

2. The external auditor shall be independent of the federal entity and management thereof so that they shall not combine the profession of external auditor with the position of a member of the BOD or any executive or administrative position in the federal entity or its affiliated entities, or one that receives donations or other benefits from the federal entity. The external auditor may not have a kinship up to the fourth degree with a federal entity official or an employee of the executive management.

3. The external auditor is prohibited, during the period of reviewing and auditing the accounts of the federal entity, from performing any additional technical, administrative, or consulting services or work related to their work that may affect decisions thereof.

4. The external auditor shall audit the federal entity accounts and financial statements in accordance with generally accepted accounting rules and principles, provided that they shall submit report thereof to the BOD within three (3) months from the end of the fiscal year, or within the date specified by the law establishing the entity.

5. The external auditor report shall include opinion thereof on the validity and accuracy of the financial statements and the entity financial position. The report shall also include the external auditor recommendations to the BOD on ways to improve the entity internal control, risk and internal audit systems.