Call for Expression of Interest (CEI)
Independent Auditor for BADAEL
Assignment. BADAEL was founded in 2013 in response to the urgent need to support inclusive, representative, grassroots civil society groups (CSGs) active in peacebuilding, human rights, and nonviolent activism in Syria. Our work is focused on three activity areas: capacity building, research, and advocacy.
Timeline and Contact. The publishing date of this CEI is 15 January 2020. The closing date for the receipt of offers by interested contractors is 31 January 2020.
Description of Requirements. The auditor shall express a professional and independent opinion on the Financial Statements and compliance elements of BADAEL for the projects under review and on whether the statements present fairly the financial position and were prepared in accordance with the International Financial Reporting Standards and Standards and Controls of the organization.
Auditing Standards The financial audit shall be carried out in accordance with international The elements of compliance and performance audit, which are 1 audit standards issued by IAASB carried out should be in accordance with the international standards for supreme audit institutions (ISSAIs 4000 and 3000). The audit shall be carried out by an external, independent and qualified auditor.
The responsibility for the preparation of Financial Statements lies with the BADAEL management and is also responsible for:
(a) The selection and application of accounting policies. BADAEL Finance Manager will prepare the Financial Statements in accordance with applicable accounting standards that comply with appropriate international standards in all material respects.
(b) Implementing accounting, administrative and financial procedures documented in manuals.
The objective of the audit of the financial report is to express an audit opinion according to International Standards on Auditing (ISA) on whether the financial report of Badael is in accordance with the instruction for financial reporting, financial procedures and accounting policies.
The auditors are responsible for the formulation of an opinion on the Financial Statements based on their audit conducted in accordance with ISA. In accordance with these standards, the auditors will request the BADAEL for an Engagement/Confirmation Letter committing the Badael management to the preparation of the Financial Statements and maintenance of proper internal control systems as well as acceptable documentation for all financial transactions.
The scope of audit will be examining to produce two audit reports as following
- General Audit (2019)
- Project Audit (2019)
And the auditor will:
a) Carry out tests of transactions as necessary, and will obtain an understanding of Badael’s accounting system to assess its adequacy as a basis for the preparation of its financial statements to establish whether adequate records have been maintained.
b) Confirm that an appropriate internal control framework is in place to provide reasonable assurance on the operations of BADAEL efficient use of resources and reliability of financial reports.
c) Confirm that although the responsibility for preventing errors, irregularity or fraud, remains with BADAEL, the audit is planned so as to have a reasonable assurance that any material misstatements, irregularities and/or fraud in the entity financial statements is detected.
d) Confirm that funds have been used in accordance with the applicable rules of the concerned donors with due attention to economy and efficiency, and that they have only been used for the purposes for which they were intended for and in accordance with the conditions under which the funding was provided.
f) Confirm that all necessary supporting documents, records and accounts have been kept in respect of all activities. Clear linkages should exist between the books of accounts and the financial statements presented.
g) Confirm that the Financial Statements have been prepared in accordance with adopted accounting principles and give a true and fair view of the financial position Finance Manager as at the end of the financial year. BADAEL adopts the modified cash basis accounting principle. The above-defined scope does not in any way restrict the audit procedures or the techniques that the auditor may wish to use in forming an opinion on the Financial Statements being audited.
i) Consider the necessity and relevance to perform test of details regarding compliance and the principle of economy, effectiveness, efficiency.
The Financial Statements among others, include:
(a) A Statement of Income and Expenditure
(b) A Balance Sheet
(d) The Accounting Policies Adopted and Explanatory Notes
(e) Where applicable, a Financial Report compliant with the terms and conditions of agreements with the donors.
7.1 The auditor is expected to present two types of reports: An opinion on the Financial Statements prepared by the Finance Manager and a Management Letter.
7.2 The opinion on the Financial Statements shall contain:
(a) A professional opinion on the financial statements and supporting schedules as regard to their true and fair view.
(b) The period covered by the opinion
(c) Accounting standards and BADAEL’s Financial Policies and procedures that have been applied indicating the effect of any deviations from them.
(d) The International Audit standards that were applied
(e) Include all other requirements of donors and cooperating partners as stated in the various cooperating agreements.
7.3 The Management Letter, among others, shall contain:
a. Comments and observations on the accounting records, systems and controls that were examined during the course of the audit.
b. Specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
c. The degree of compliance of each of the donor funding agreement and give comments, if any, on internal and external matters affecting such compliance.
d. Matters that have come to their attention during the audit which might have a significant impact on the implementation and sustainability of the funding.
e. Report on the implementation status of recommendations pertaining to previous period audit reports.
f. Areas of risk that need to be flagged out to management.
g. Any other matters that the auditors consider pertinent to be brought to the attention of the Secretariat.
7.4 Ideally, the Management Letter will include reactions/comments from BADAEL managements on the weaknesses noted by the auditors.
7.5 The audit report will be submitted as three hard copies and one PDF copy of the final audit report to the management.
8.1 The scope of the audit of projects depends on the agreement signed between the funder and the management. The scope of the audit will be similar to the institutional audit, however, some of the specific requirements are the following:
a. That the External Auditors have obtained an understanding of the terms and conditions governing the grant agreement.
b. That the funds received have been used in accordance with the cooperation agreement.
c. That the accounts kept by BADAEL are accurate and up to date.
d. That the accounts and expenditure relating to the grant/cooperation agreement are easily identifiable and verifiable e. That it is possible to reconcile the information in the Financial Report to BADAEL ‘s accounting system and records.
f. That the correct exchange rates have been applied.
g. That any identified bank interests have been properly reflected in the books of account.
h. That the Finance Manager has maintained the necessary supporting documents, records and accounts in respect of the project activities.
i. the internal control systems of the organization are comprehensive, sufficient and adequate.
8.2 A separate audit report will in this case be prepared for the project audit.
8.3 The financial records maintained for projects are usually the following:
i. Financial ledgers
ii. Payments vouchers substantiated by support documentation and
iii. Financial reports (wherever applicable)
Additional assignment, according to agreed upon procedures ISRS 4400, review the following areas in accordance with the Terms of reference below.
Minimum Requirement for Audit Team:
§ The Audit Manager must have at least 5 years of experience in auditing public sector and international institutions and donor funds, and must be a member of a recognized accountancy professional body.
§ The Audit Team with at least 3 years of experience in auditing and CPA (II) professional qualifications or equivalent.
§ Added advantage Audit firm staff stability history – assurance regarding the assignment of permanent personnel to the engagement. § Professional knowledge of both Arabic and English language as documents are in both.
This vacancy is archived.