External Audit Services - PIA at Protection International

Terms of Reference

• Carry out the audit assignment in accordance with International Standards of Auditing (ISA) issued by the International Audit and Assurance Standards Board and adopted by International Federation of Accountants (IFAC).
• Ascertain that funds received by the organization have been applied for the intended purpose and have been accounted for in accordance with the funding agreement.
• To review the efficiency and effectiveness of financial processes and recommend improvements where necessary.
• Evaluate the organization’s internal controls related to financial management, including procurement, cash management, payroll, donor reporting, asset management, and record keeping.
• Identify any risks or weaknesses in the internal controls that could lead to misstatements, fraud, or inefficient use of resources as well as assess the adequacy of existing controls in mitigating risks.
• Review compliance with local laws, NGO regulations, and donor requirements regarding the use of funds, reporting, and program implementation.
• Ensure adherence to taxation and reporting requirements in the jurisdiction in which the NGO operates.
• Assess the effectiveness of financial policies and procedures in supporting organizational objectives.
• Verify that funds received, have been acknowledged and reflected in the financial reports/statements submitted to the users/donors.
• Verify and report on whether or not funds have been re-granted by the organization. In case of re-grant follow up to ascertain that funds have been reported and applied for the intended purpose.
• Provide a clear, concise audit report that includes the auditor’s opinion, any internal control weaknesses or recommendations, compliance issues, and overall assessment of financial management.
• Submit a management letter with specific recommendations on improving internal controls, processes, and compliance.
• Present the final audit report to the Board of Trustees and senior management team for discussion.

Deliverables

• Audit Plan
• Draft audit report for review by the management.
• Final audit report in 4 copies both soft and hard copy
• Audit Certificate.
• Management Letter

Mandatory Requirements

• The firm should have a valid practicing certificate.
• Eligible firms should not have conducted audit relating to Protection International for the last 3 years.
• The Partner(s) of the audit firm should be practicing member(s) of Institute of certified Public Accountants of Kenya (ICPAK), in good standing.
• The partners of the firm should have professional indemnity. A copy of the current certificate should be attached.
• Any possible conflict of interest should be clearly indicated in detail for guidance in decision making.
• Be knowledgeable about local tax laws, NGO regulations, and international accounting standards.
• Provide references from other NGO clients and relevant credentials of the proposed audit team.