CONSULTANCY AUDIT FIRM FOR FINANCIAL AUDIT 2022 ISRAAID MOZAMBIQUE

Background

1. IsraAID MOZAMBIQUE (IsraAID) is a humanitarian organization with offices in Pemba – Cabo Delgado and Beira – Sofala, Mozambique, with Head office in Tel Aviv, Israel. IsraAID Mozambique was founded in 2011 and is registered in as a local branch of an international Non-Governmental Organization.
2. The principal activity of IsraAID is (1) building the capacity of service providers working with vulnerable communities, especially women and children, (2) accompanying these local service providers in their efforts to provide direct sustainable assistance to these communities, (3) accompanying the local actors in their efforts to design, implement and evaluate their own programs to tackle the most pressing social and health challenges affecting the most vulnerable groups.
3. The Financial Statements of IsraAID are prepared in accordance with the International Financial Reporting Standards and the Mozambique laws. The accounts are required to be audited by an external audit firm.
4. IsraAID intends to engage an independent external auditor to audit financial statements for the year ended 31 December 2022.

Auditing Standards

1. The financial audit shall be conducted in accordance with International Standards on Auditing (ISA). In addition, any relevant local standards related to financial audits need to be taken into consideration by the auditor. The audit shall include such tests and auditing procedures as the auditor considers necessary for the assignment.

Objective and Scope of the Audit

1. The objective of the audit of IsraAID’s financial statements is to enable the auditors to express an independent professional opinion on the financial position of IsraAID.
2. The audit shall be carried out in accordance with standards mentioned above. In conducting the audit, special attention should be given to the following:

Verify all funds have been used in accordance with the established rules and regulations of IsraAID and only for the purposes for which the funds were provided.

Goods, works and services financed have been procured in accordance with the IsraAID established rules and procedures.

Appropriate supporting documents, records and books of accounts relating to all activities have been kept. Clear linkages should exist between the books of accounts and the financial statements presented.

The financial statements have been prepared by IsraAID management in accordance with applicable accounting standards and give a true and fair view of the financial position of IsraAID and of its receipts and expenditures for the period ended on that date.

Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.

Express an opinion as to reasonableness of the financial statements in all material respects.

Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.

Conduct entry and exit meeting with the Country Director and Finance Manager of IsraAID.

In addition to the audit report, the auditors will prepare a Management Letter on the following:

Deliverables and timeline

1. Upon completion of audit work, the auditor shall issue an opinion on the financial statements prepared by the management and a Management Letter.
2. The audit will be completed and audited Financial Statements will be signed by 31 July 2023.

Qualifications of the audit firm

1. The audit firm and the audit team must have demonstrable experience in auditing non-governmental organizations in Mozambique and sufficient knowledge of relevant laws and regulations in Mozambique such as but not limited to taxation, social security and labour regulations and laws, accounting and reporting regulations.
2. The audit firm will employ staff with relevant qualifications, certifications and experience with auditing and financial reporting standards.
3. Fluency in English

Letter of Engagement

1. A formal Letter of Engagement specifying the detailed scope of the audit shall be prepared and signed between IsraAID and the auditor prior to the commencement of the assignment. The Letter of Engagement will spell out the terms and conditions, the fees and responsibilities of the parties.