Consultancy – External Auditor (Ethiopia)
Deadline: February 15, 2025
Job Description
Background:
Ayuda en Acción is an international non-governmental organization headquartered in Madrid, Spain. Between 2002 and 2017, the organization implemented development and humanitarian interventions in Ethiopia through partnerships. In 2018, it was officially registered as Ayuda en Acción Ethiopia.
The national office in Addis Ababa coordinates country programme activities implemented in Oromia (Borena and Arsi), Southern Ethiopia Region (Wolaita and Gamo zones), and Afar regions.
Since its registration in Ethiopia, Ayuda en Acción Ethiopia has complied with both statutory audit obligations in Ethiopia and organizational audit requirements over the past seven years (2018–2024). Previous auditors have worked closely with KPMG, the organization’s global external auditor.
Ayuda en Acción Ethiopia now invites eligible and qualified audit firms to submit proposals to conduct the annual external audit of its financial statements for a three-year period (2025–2027). The selected audit firm will work in close coordination with KPMG to complete this assignment.
Objective of the Audit:
The objective of the external audit is to enable the Auditor to express a professional and independent opinion on the consolidated financial statements of Ayuda en Acción Ethiopia, stating whether the statements are prepared, in all material respects, in accordance with:
- Applicable organizational financial rules and regulations.
- International Public Sector Accounting Standards (IPSAS); and
- Relevant legal and regulatory requirements of Ethiopia.
Scope of the Audit:
The Auditor shall review Ayuda en Acción Ethiopia’s accounting records, financial statements, and internal control systems to assess their adequacy as a basis for the preparation of financial statements and to determine whether proper accounting records have been maintained.
The audit shall be conducted in accordance with International Public Sector Accounting Standards (IPSAS); and shall include such tests and procedures as the Auditor considers necessary under the circumstances. Appropriate audit evidence shall be obtained to enable the Auditor to draw reasonable conclusions.
The audit will include, but will not be limited to:
- Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
- Assessing the accounting principles applied and significant estimates made by management; and
- Evaluating the overall presentation of the financial statements.
The following areas require the Auditor’s specific attention:
- Confirm that, while responsibility for the prevention and detection of fraud and irregularities rests with management, the audit has been planned and performed to provide reasonable assurance that material misstatements are detected.
- Confirm that funds have been used in accordance with the applicable donor agreements, organizational financial rules and regulations, and relevant laws of Ethiopia, and solely for the purposes for which they were intended.
- Confirm that goods and services financed during the period were procured in compliance with Ayuda en Acción policies, Ethiopian procurement laws and regulations, and applicable donor requirements.
- Confirm that all necessary supporting documents, records, and accounts have been properly maintained for all activities, and that clear linkages exist between accounting records and the financial statements presented.
- Confirm that the financial statements have been prepared in accordance with IPSAS and present a true and fair view of the financial position and results of operations of the organization at the end of the financial year.
- Share relevant audit information and findings with Ayuda en Acción’s global external auditor, KPMG (Spain), as required.
- Assess the existence and effectiveness of financial management supervision systems.
- Evaluate whether the internal control structure for financial reporting is suitably designed and effectively implemented to achieve control objectives.
Nothing in this scope shall restrict the Auditor’s professional judgment regarding audit procedures or methodology necessary to form an audit opinion.
Financial Statements to be Audited:
The audit shall cover the following financial statements and schedules:
- Statement of Income and Expenditure.
- Statement of Financial Position; and
- Statement of Expenditures showing compliance with the 80/20 programme versus administration cost utilization requirement.
Requirements
Qualifications of the Audit Firm and Team Members:
I. Audit Firm (Consulting Firm):
a. Legal Requirements The audit firm must provide evidence of:
- Valid business registration certificate.
- Valid VAT registration certificate.
- Valid tax clearance certificate.
- Renewed ABEE (Accounting and Auditing Board of Ethiopia) license.
b. Technical Experience:
- A minimum of five (5) years’ experience in financial accounting and auditing in the public and/or private sector;
- Proven experience in applying international financial reporting standards (IPSAS and/or IFRS);
- At least two (2) years’ experience in auditing development and/or humanitarian organizations, supported by reference letters or certificates;
- Experience in conducting similar assignments is a distinct advantage.
II. Team Leader:
The proposed Team Leader shall meet the following minimum qualifications:
- Professional qualification as a Chartered Accountant, CPA, ACCA, or equivalent;
- Renewed ABEE professional license;
- A minimum of ten (10) years’ experience in financial accounting and auditing, of which at least five (5) years are in the public and/or private sector;
- Proven experience as a Team Leader in at least one similar audit assignment within the last three (3) years;
- IPSAS professional certification from the Chartered Institute of Public Finance and Accountancy (CIPFA) or a similar recognized body is an advantage.
Audit Reports and Deliverables:
The Auditor shall submit the following reports:
i. Audit Opinion on the Financial Statements:
The audit opinion report shall include: I. A professional audit opinion on whether the financial statements and supporting schedules present a true and fair view; II. A statement of the accounting standards, regulatory frameworks (including Authority for Civil Society Organizations, ABEE requirements, and Ayuda en Acción financial rules) applied, and the effect of any deviations, if applicable; III. The auditing standards applied during the audit; IV. Any other reporting requirements stipulated in agreements with cooperating partners or donors.
ii. Internal Control and Management Letter:
The management letter shall include: I. Comments and observations on accounting records, systems, and internal controls reviewed during the audit; II. Identification of specific deficiencies and weaknesses in systems and controls, with practical recommendations for improvement; III. An assessment of compliance with donor funding agreements, including internal and external factors affecting such compliance; IV. Any matters identified during the audit that may significantly affect programme implementation or sustainability; V. A status report on the implementation of recommendations from previous audit reports; VI. Identification of key risk areas requiring management attention; VII. Any other matters the Auditor considers relevant for national office management and headquarters.
HOW TO APPLY
Application and Evaluation Criteria:
Interested audit firms are required to submit technical and financial proposals exclusively through the: >>Talent Clue website within ten (10) consequetive days from the date of advertisement.
- Technical proposal: 60% of the total evaluation score
- Financial proposal: 40% of the total evaluation score
You may submit your questions prior to application submission to Bitsit Endale, Operations Director, at bendale@ayudaenaccion.org.
For inquiries related to application procedures, please contact Andenet Tadesse, HR and Administration coordinator, at atadesse@ayudaenaccion.org or call +251-11 6-73 3-400.
General Information:
- Estimated number of box files: approximately 85;
- Annual expenditure: approximately ETB 408.8 million;
- Annual income: approximately ETB 510.4 million;
- All financial documents will be made available at the Ayuda en Acción Ethiopia National Office in Addis Ababa.
Female Candidates are highly encouraged to apply.
