Terms of Reference (ToR)

Call for External Audit Service

Audit Period: January 17, 2024 – June 30, 2026

Organization: Shareteah Humanitarian Organization (SHO)

1. Background

Shareteah Humanitarian Organization (SHO) is an Iraqi National NGO promoting safety and development through mine action, explosive ordnance risk education (EORE), awareness, and clearance of mines, explosives, and remnants of war to assist people affected by armed conflict. Founded in 2016, SHO has organized and executed programs throughout Iraq, including the provinces of Nineveh, Duhok, Kirkuk, Tikrit, Anbar, and Baghdad. It currently holds offices in Duhok and Mosul. 

1. Objective of the Audit

SHO invites qualified and independent audit firms to conduct an external audit of the project financial report covering the period 17 January 2024 – 30 June 2026.

The objectives of the audit are to:

• Express an independent professional opinion on the financial report of the project.
• Verify that project funds have been used in accordance with donor agreements, approved budgets, and applicable regulations.
• Ensure that all project expenditures are properly supported, documented, and eligible.
• Assess the adequacy of internal controls related to project financial management.
• Identify weaknesses or irregularities and provide practical recommendations for improvement.

This audit is limited to the project financial report and does not include institutional financial statements or general organizational audit coverage.

1. Scope of the Audit

The audit shall be conducted in accordance with International Standards on Auditing (ISA) and will include, but not be limited to:

• Review and verification of all project-related income and expenditures.
• Verification of compliance with donor agreements, internal policies, and applicable laws and regulations.
• Testing of internal controls related to financial management and fund utilization.
• Review of procurement procedures to ensure compliance with donor and organizational requirements.
• Verification of completeness, accuracy, and validity of supporting documentation.

Note: The audit is limited to cash-based income and expenditure transactions. No audit of assets, liabilities, or accrual-based financial statements is required.

1. Deliverables

The selected auditor shall submit the following deliverables no later than 30 July 2026:

• Final audit report including the independent auditor’s opinion.
• Management letter highlighting findings, internal control weaknesses, and recommendations.
• Soft and hard copies of all reports in English.

1. Audit Standards and Reporting Framework

The audit shall be performed in accordance with International Standards on Auditing (ISA). Reporting will be based on cash-basis accounting principles and donor reporting requirements applicable to NGO financial reporting.

1. Available Information

The auditor will be granted full access to all financial records, contracts, donor agreements, supporting documentation, and other relevant information required for the audit. SHO staff will provide necessary assistance throughout the engagement.

1. Timeline

Audit fieldwork shall commence immediately upon the selection and appointment of the audit firm. The final audit report must be submitted no later than 30 July 2026.

1. Proposal Requirements and Submission

Interested audit firms are requested to submit all the below requirements here: 

• Technical proposal including audit approach and methodology.
• CVs and profiles of key audit team members.
• Financial proposal (fee structure and estimated effort).
• Declaration of independence and confirmation of no conflict of interest (IESBA Code of Ethics compliance).
• Confidentiality commitment regarding all SHO information

1. Qualifications of the Auditor

The audit firm must:

• Be a certified audit firm with at least 5 years of relevant experience.
• Have experience auditing NGOs or donor-funded projects.
• Demonstrate independence from SHO with no conflicts of interest.
• Ensure full confidentiality and adherence to professional standards.

Tender's Files

https://ee-eu.kobotoolbox.org/x/DBnUEg5C