Audit firm recruitment

1. Responsibility for the preparation of financial statements

Responsibility for the preparation of the financial statements’ rests with Swisscontact, which is responsible for:

• The selection and application of accounting principles in accordance with International Financial Reporting Standards (IFRS).
• The implementation of accounting principles and administrative and financial procedures as set out in Swisscontact’s operational manual.

The auditor is responsible for expressing an opinion on the financial statements based on audit procedures conducted in accordance with the International Standards on Auditing (ISA) issued by the International Federation of Accountants (IFAC). National auditing standards that are substantively consistent with the ISA are also acceptable.

In accordance with these auditing standards, the auditor shall request a “Management Letter” from the project/program implementation unit, whereby management acknowledges its responsibility for the preparation of the project/program financial statements, the maintenance of an adequate internal control system, and the existence of acceptable documentation for all financial transactions.

2. Scope of work:
 

The audit shall be conducted in accordance with the international standards referred to in paragraph 1 above and shall include the tests and verification procedures that the auditor considers necessary under the circumstances. Special attention during the audit shall be given to the following points:

• Conducting an independent statutory audit of Swisscontact Lebanon’s financial statements for the relevant fiscal year, in compliance with:
  • Lebanese Commercial and Tax Laws
  • International Standards on Auditing (ISA) as applicable in Lebanon
  • Donor agreements and reporting requirements
• Verifying compliance with applicable accounting standards, Ministry of Finance regulations, and Swisscontact’s internal financial policies.Reviewing and assessing the adequacy and effectiveness of internal control systems, accounting procedures, and financial management practices in accordance with Lebanese regulatory expectations.
• Issuing:
  • A formal audit report and audit opinion in line with Lebanese statutory requirements
  • A detailed management letter highlighting control weaknesses, compliance gaps, and actionable recommendations.
• Presenting audit findings, proposed adjustments, and corrective actions to the Swisscontact Group Auditor and Global Office, and addressing any queries arising from their review
• Reviewing monthly and/or quarterly accounting entries in compliance with Lebanese accounting and tax requirements, including proper documentation and audit trails
• Preparing, reviewing, and supporting the submission of all required documentation related to:
  • National Social Security Fund (NSSF) declarations for local employees
  • Payroll-related contributions, reconciliations, and statutory compliance.
• Providing ongoing clarification and audit support to Swisscontact management and the Group Auditor until final approval and closure of the audit process.

In accordance with international auditing standards, the auditor shall pay particular attention to the following:

1. Fraud and Corruption: In accordance with ISA 240 (The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements), the auditor shall identify and assess the risks of fraud, obtain sufficient audit evidence regarding the analysis of these risks, and appropriately address identified or suspected fraud.
2. Laws and Regulations: In developing the audit approach and executing audit procedures, the auditor shall evaluate the Project Coordination Unit’s compliance with laws and regulations that could materially affect the financial statements, as required by ISA 250 (Consideration of Laws and Regulations in an Audit of Financial Statements).
3. Governance: Communication with those charged with project governance regarding significant audit matters, in accordance with ISA 260.
4. Risks: To reduce audit risk to an acceptably low level, the auditor shall implement appropriate audit procedures in response to the risks of misstatement identified during the risk assessment, in accordance with ISA 330 (The Auditor’s Responses to Assessed Risks).

3. Audit report:

1. The audit report shall include the auditor’s opinion on the financial statements.
2. The annual audit report must comply with Lebanese statutory audit requirements and applicable local accounting standards.
3. The report shall be submitted to the group auditor and shared with the Finance team in Lebanon as well as with Swisscontact headquarters in Zurich.

4. Management Letter:

In addition to the audit report, the auditor shall prepare a Management Letter (referred to as such in the instructions provided by the group auditor) in which the auditor:

1. Provides comments and observations on the accounting, procedures, systems, and controls reviewed during the audit.
2. Identifies specific deficiencies and weaknesses in the internal control system and formulates recommendations for their improvement.
3. Provides an opinion on the degree of compliance of the financial statements with the financial obligations under the funding agreement and, where relevant, comments on internal and external causes of identified discrepancies.
4. In principle, the Management Letter should include the responses/comments of the Project Implementation Unit and other implementing entities regarding the weaknesses identified by the auditor.

5. Eligibility Criteria:

1. Participation in the tender is open on equal terms to any audit firm legally established in Lebanon and meeting the following conditions:

2. Be legally registered and authorized to conduct audits in Lebanon.

3. Be independent from Swisscontact and its staff.
4. Provide conflict-of-interest disclosure confirming that the firm and its staff have no actual, potential, or perceived conflict of interest with Swisscontact, the project, or related stakeholders.
5. Be able to complete the audit within the given deadline.
6. Have qualified staff available to carry out the audit missions.
7. Have proven experience auditing NGOs and donor-funded programs (at least 5 years)
8. Apply International Standards on Auditing (ISA) or relevant nationally recognized auditing standards and be able to perform the audit and issue reports in accordance with these standards.
9. Be up to date with obligations to the Social and Tax Administration.