LEBANON COUNTRY OFFICE - EXTERNAL AUDIT SERVICE

Scope of Work:

Search Lebanon CO seeks to engage an accounting firm to prepare its statutory-basis financial statements for the financial period of 1st January 2022 to 31st December 2022 based on its financial records. 

The firm will be asked to express an opinion on the fair representation of the organization’s financial statements.

Audit Objectives:

1. The audit will be carried out in accordance with the International Standards on Auditing.
2. To review the effectiveness of risk management systems and processes.
3. To evaluate the effectiveness of financial, management & governance, programmatic and administrative systems & structures of the organization and follow up on outstanding recommendations from previous audits and other financial reviews.
4. Obtain sufficient audit evidence to substantiate in all material respects the accuracy of the information contained in the financial statements.
5. Obtain an understanding of internal controls and perform tests of internal controls.
6. Issue an independent Auditor’s Report that states but not limited to the following:
   1. An Opinion (or disclaimer of opinion) as to whether the Financial Statements present fairly in all material respects in conformity with the Generally Accepted Accounting Principles
   2. A report on internal controls which shall describe the scope of testing of internal controls and the results of the tests.
   3. A schedule of findings and questioned costs that includes a summary of the auditor’s results.
7. Perform a high-quality audit perceived as such by the client.
8. Arrive to a qualified audit opinion on the financial statements.
9. Identify all material audit risks as early as possible and, if possible, ensure resolution of these prior to year-end.
10. Indicate areas where risk is found to generate a more complete picture of financial responsibility.
11. Bring all material issues within the accounting and internal control system of the Search for Common Ground to the attention of management at an early stage together with our recommendations for improvement, in a standard presentation.
12. All the issues should be identified and discussed during the audit process.

Special attention should be paid by the auditor as to whether:

1. Funds have been used in accordance with the conditions of funding agreements, with due attention to efficiency and economy, and only for the purposes for which funding was provided.
2. Goods and services have been procured in accordance with the relevant procedures.
3. All necessary supporting documents, records and accounts have been kept in respect of the project with clear linkages to the activity reports presented to donors.
4. The financial statements have been prepared in accordance with Search for Common Ground applicable accounting policies or in accordance with International Financial Reporting Standards (IFRS).
5. Auditor opinion should be according to International Standards on Auditing. 
6. The auditor should plan the audit so that there is a reasonable expectation of detecting material misstatements in the accounts resulting from fraud, error or non-compliance with laws and regulations as may be necessary.  If the auditor’s suspicions are aroused, s/he must inquire into all the circumstances until satisfied.  If material irregularities are discovered, they must be reported to the Country Director immediately.

Deliverables:

The firm/individual auditor shall provide deliverables consisting of an electronic (PDF format) copy and 3 printed and stamped copies of the financial statements in English and Arabic languages.  Statement preparation, editing, and printing shall be the responsibility of the firm. Statements will include:

1. Financial Report Statement (Income and statement of financial position)
2. Cash Flow Statement
3. Statement of Changes in Net assets/Head office account
4. Management Report Letter

Audit Timeline:

The audit is scheduled to begin on 27th Feb 2023 covering the financial period 1st January 2022 to 31st December 2022. The draft Audit Reports should be submitted by 13th March 2023 while the Signed Audit Reports should be submitted by 20th March 2023.