Organization for Social Development

The Daily Monitor Jan27,2021

Organization for Social Development (OSD) was formerly registered as Organization for Social Justice in Ethiopia (OSJE) (2003-2010) under License number 1160. From February 11, 2010 to date, it was re-registered as Organization for Social Development (OSD) under License number 0843 as an Ethiopian resident charitable society.

OSD wishes to engage the services of an audit firm for the purpose of auditing the finances of 2020. The audit shall be carried out in accordance with international audit standards issued by IAASB.

I. Objectives and scope of the audit

The objective is to audit the financial report for the period 2020 and to express an audit opinion according to ISA 800/805 on whether the financial report is in accordance with donor requirements for financial reporting.

II. Additional assignment; according to agreed upon procedures ISRS 4400, review the following areas in accordance with the Terms of reference below

  1. Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation.
  2. Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/
  3. Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs.
  4. Follow up whether the cooperation partner complies with the applicable tax legislation with regard to taxes (e.g. Pay As You Earn (PAYE)) and social security fees.
  5. Follow up whether the cooperation partner has adhered to the procurement guidelines annexed or referred to in the agreement.
  6. Review if outgoing balance for previous period is the same as incoming balance for the current period.
  7. If the cooperation partner applies modified cash basis as accounting principle, the auditor shall describe whether the chosen accounting principle is acceptable for the established financial report.
  8. Verify the unspent balance at the end of the financial year.
  9. Regardless of materiality of the findings, the auditor shall quantify the amount for costs lacking sufficient supporting documentation,
  10. Review whether the cooperation partner has signed agreements with its subsequent partner organisations.
  11. Review whether the audit requirements in agreements with the cooperation partner as well as subsequent partner organisations are in accordance with the audit requirements
  12. Review whether there is an unbroken chain of audited financial reports, for funds disbursed the previous year. The review shall include whether the cooperation partner makes documented assessments of the audited financial reports submitted to the cooperation partner and whether these reports are followed-up by the cooperation partner. The review shall include verification of contributions equivalent of a minimum of 40% of the total of disbursed funds as well as 40% of the number of contributions.
  13. Review whether the same requirements for reporting exchange rate gains and exchange rate losses is included in the agreements between the Cooperation partner and its subsequent partner organisations.

III. The reporting

The reporting shall be signed by the responsible auditor (not just the audit firm) and shall include the title of the responsible auditor.

The reporting from the auditor shall include an independent auditor’s report in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated. The independent auditor’s report shall clearly stipulate that the audit has been conducted in accordance with ISA 800/805.

IV. Interested applicants should deliver their CV in person to OSD office at Nifas Silk Lafto Sub City, Woreda 02, German square, Addis Ababa; within 5 days after this announcement or send an email to executivedirector@osdethiopia.org. For more

info, Tel: – 0929317979:- 0113699595