• Job Title: Annual Audit - Terms of Reference

  • Organization Name: Indus Consortium

  • Location: Islamabad

  • Duration: 3 Months

  • Number of Vacancies: 1

  • Gender: Any

  • Closing on: 2022-01-23

How to Apply
  • Apply via email by sending technical as well as financial proposals along with the firm's profile.

  • Indus Consortium wishes to engage the services of an audit firm for the purpose of auditing the “Fair Finance Asia-Building a Responsible Financial Sector in Asia” (Pakistan chapter), as stipulated in the agreement between the Embassy of Sweden in Bangkok, Thailand for the Swedish International Development Cooperation Agency (Sida) and Fair Finance Asia. The audit shall be carried out in accordance with international audit standards (ISA) issued by IAASB[1]. In addition, an assignment according to International Standards on Related Services (ISRS) 4400 shall be carried out. The audit and the additional assignment shall be carried out by an external, independent and qualified auditor.

    1.     Organization Background:

    Indus Consortium: A collaborative platform of 60 Humanitarian and Development Organizations works on climate change, energy transition, irrigation water governance, fair Finance, Green Recovery in Pakistan. Humanitarian work is the key area of expertise of IC.

    2.     Project Background:

    With the aim of reducing inequalities and enabling the voices of vulnerable and disadvantaged Asian communities to be at the center of policy actions and dialogue on sustainable finance, Fair Finance Asia (FFA) is working to ensure that financial institutions integrate environmental, social and governance (ESG) standards to promote sustainable development, and foster the long-term stability of the Asian economy.

    The Swedish Embassy in Bangkok-funded Oxfam initiative, Fair Finance Asia, is a regional network of 25 (and growing) civil society organizations across seven countries that aims to – a) accelerate the development of tangible commitments and action plans on sustainable finance among financial institutions; b) enable regulators and country governments to strategize and implement smart sustainable finance regulation and legislation; c) build strong and wider alliances among civil society organizations (CSOs) working on sustainable finance and ESG transparency and accountability issues in Asia; and d) elevate the sustainable finance agenda and raise greater awareness and action in Asia.

    Fair Finance Pakistan (FFP) is part of Fair Finance Asia. FFP aims to promote fair & inclusive financial inclusion that works for all and to prevent abuse of Environmental, Social and Governance issues by keeping human and gender rights at the heart.  FFP aimed at boosting energy investments in Pakistan in an environmentally sustainable way and by following ESG guidelines. We believe, the Banking sector, being the core pillar of financing & investment should play leadership & innovative role in integrating social, environmental and corporate governance objectives into the operations.

    Project Title:            Fair Finance Pakistan-Building a Responsible Financial Sector in Asia

    Donor Name:           The Swedish International Development Cooperation Agency (Sida), represented by the Embassy of Sweden in Bangkok, Thailand.

    Donor Contract No: 10573

    Project Number:      A-05001-08 (FFA funding) and A-06000-10 (FFI funding)

    Grant Amount:         EUR 69,542 (in which EUR60,000 is funded by FFI and EUR 9,542 is funded by FFA)

    Project Start date:   01-January-2021

    Project End date:    31-December-2021

    3.     Objectives and Scope of Annual Audit:

    3.1 To audit the financial report according to ISA 800/805

    This audit will review the programme implementing and activities which manage by Indus Consortium in Pakistan. The audit will require to express an audit opinion according to ISA, applying ISA 800/ISA 805, on whether the financial report submitted by Indus Consortium to Fair Finance Asia is in accordance with Indus Consortium´s accounting records and Sida’s requirements for financial reporting as stipulated in the agreement including appendices between Sida and Oxfam (Agreement).

    3.2 Agreed Upon Procedure : ISRS 4400

    Mandatory procedures that must be included:

    1. Observe whether the financial report is structured in a way that allows for direct comparison with the latest approved budget[2].
    2. Observe and inspect whether the financial report provides information regarding:
    3. Financial outcome per budget line (both incomes and costs) for the reporting period and columns for cumulative information regarding earlier periods under current agreement.
    4. When applicable, compare if the opening fund balance[3] for the reporting period matches with what was stated as closing fund balance in the previous reporting period.
    5. A disclosure of exchange gains/losses. Inquire and confirm whether the disclosure includes the entire chain of currency exchange from Oxfam’s disbursement to the handling of the project/programme within the organisation in local currency/ies, if applicable.
    6. Explanatory notes (such as, for instance, accounting principles applied for the financial report).
    7. Amount of funds that has been forwarded to implementing partners, when applicable.
    8. a) Inquire and inspect with what frequency salary costs during the reporting period are debited to the project/programme.

    Choose a sample of three individuals for three different months and:

    1. Inquire and inspect whether there are supporting documentation[4] for debited salary costs.
    2. Inquire and inspect whether actual time worked is documented and verified by a manager. Inquire and inspect within which frequency reconciliations between debited time and actual worked time is performed.
    3. Inspect whether the organization comply with applicable tax legislation with regard to personal income taxes (PAYE)[5] and social security fees.


    1. a) Inspect and confirm that the unspent fund balance (according to the financial report) at the end of the financial year is in line with information provided in the accounting system and/or bank account.
    2. b) Applicable the final year: Inspect and confirm the unspent fund balance (including exchange gains) in the financial report and confirm the amount that shall be repaid to Sida.


    1. a) Obtain a list of all purchased services and goods during the reporting period. Choose three sample of different type of procurements.
    2. b) Inspect and confirm whether the selected transactions are complied with the procurement guidelines annexed to the agreement.

    3.3 Follow up of funds that are channelled to implementing partners


    3.4 The Reporting requirement from Auditor

    The reporting shall be signed by the responsible auditor (not just the audit firm[6]) and shall include the title of the responsible auditor.

    Reporting from the ISA assignment

    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 financial report that has been the subject of the audit shall be attached to the audit report.

    The reporting shall also include a Management letter that discloses all audit findings, as well as weaknesses identified during the audit process. The auditor shall make recommendations to address the identified findings and weaknesses. The recommendations shall be presented in priority order and with a risk classification.

    Measures taken by the Cooperation partner to address weaknesses identified in previous audits shall also be presented in the Management Letter. If the previous audit did not have any findings or weaknesses to be followed-up on, a clarification of this must be disclosed in the audit reporting.

    If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting.

    Reporting from the ISRS 4400 assignment

    When applicable, the sample size shall be stated in the report.

    4.     Implementing partners Information:

    Indus Consortium (IC) 

    Indus Consortium - a consortium of 3 humanitarian and development organizations i.e. Laar Humanitarian Development Program (LHDP), Doaba Foundation and HELP Foundation - is a manifestation of a joint force of the people living around Sindhu (Indus) River basin in Pakistan. It is a collaborative platform of 60 Humanitarian and Development Organizations works on climate change, energy transition, irrigation water governance, fair Finance, Green Recovery in Pakistan. Humanitarian work is the key area of expertise of IC.

    Vision: IC envisions a democratic and equitable society where all citizens enjoy equal economic, cultural and political rights.

    Mission: Indus Consortium works for local communities to enhance their resilience and participation in development

    5.     Timeframe and Location:

    Sl. Particular Schedule
    1 Meeting (Program, Finance) & collecting of primary documentation and verification. 15-Feb-22
    2 Audit of Office 20-Feb-22
    3 Analysis of findings and preparation of draft report 15-Mar-22
    3 Audit Closure meeting 31-Mar-22
    5 Draft Audit report with Management letter shared client 15-Apr-22
    6 Final Audit report with Management letter and sign of process 30-Apr-22
    7 Submission of Audited Financial report to Fair Finance Asia / FFA ET 15-May-22

    6.     Key Assignment

    1. To audit the financial report for the period accordance to ISA800/805
    2. According to agreed upon procedures ISRS 4400, review the areas in section 3.2 above

    7.     Expected Deliverable:

    1. Audited Financial Report
    2. Management letter (If the auditor assesses that no findings or weaknesses have been identified during the audit that would result in a Management Letter, an explanation of this assessment must be disclosed in the audit reporting)
    3. Agreed-upon procedures report

    8.     Annexes

    The following annexes are an integral part of this ToR:

    1. Donor Contract/Grant Agreement(s) and Annexes
    2. Approved Operational & Budget Plan 2021
    • Narrative and Draft Financial Report 2021

    [1] The International Auditing and Assurance Standards Board (IAASB)

    [2] The budget is attached to the agreement with Sida as an annex and any updates should be supported by a written approval by Sida.

    [3] I.e. funds remaining from disbursements made during previous reporting period/s

    [4] Debited salary costs should be verified by supporting documentation such as employment contracts.

    [5] Pay As You Earn


  • Only QCR rated audit firms can apply

Email NotificationsTo receive updates in your inbox

Subscribe to our weekly newsletter below and never miss the latest Updates.