The committee, whose formation was endorsed at an extraordinary meeting of the Executive Committee last week, "will examine the figures relating to the 2002 and 2006 FIFA World Cups, paying special attention to the ISL bankruptcy and the consequences of the events of 11 September 2001, while also looking at the FIFA administration, " FIFA said in a statement.
The embattled FIFA President stressed that the new body is not an investigation committee and told the press: "I hope that the Executive Committee will be able to settle this matter within the football family and we do not have to use any other means to resolve the situation before the elective Congress."
The committee will be composed of six members of the Executive Committee, one from each confederation. The members are: David Will (Chairman, Scotland), Basil Scarsella (Vice-Chairman, Australia, President of the Oceania Football Confederation), Dr Mong-Joon Chung (Korea Republic), Slim Aloulou (Tunisia), Ricardo Teixeira (Brazil), Chuck Blazer (USA).
It is thought that the audit committee is equally divided between anti-Blatter and pro-Blatter factions.
Despite claims by some in the pro-Blatter camp that the request for an audit is part of a wider battle for the FIFA presidency, some observers believe there are still question marks against FIFA's financial status.
Defenders of Blatter say FIFA has debts of £21.4million ($30.3m/EUR34.7m) because of the ISL collapse, while critics claim the debts could be up to ten times that amount.
It has been alleged that ISL's administrators could claw back significant World Cup revenues negotiated by the firm, which were subsequently sold by FIFA Marketing after ISL's collapse.
Blatter, however, refutes this possibility, and argued at Football Expo in Cannes earlier this year, that the "administrator of the bankruptcy procedure in the Canton or City of Zug has said that there are different approaches on this matter," and that the legal case for money being returned to ISL's administrator is "totally wrong".
Blatter is also fighting recent allegations of corruption in connection with the 1998 presidential election in Paris. However, these allegations are unlikely to be investigated further.
"The Executive Committee, reiterating an earlier Executive Committee decision from 11-12 March 1999, has agreed that the matter is closed," FIFA said.
Blatter is the only declared candidate for the presidential election though pressure is mounting for Issa Hayatou of Cameroon to oppose him.
