Sida’s Standard Terms of Reference for Annual Audit of Project/Programme including ISRS 4400 (Revised)

Introduction
Support ActionAid Liberia, hereafter referred to as the “Cooperation partner” wishes to engage the services of an audit firm for the purpose of auditing the ‘Just and Equal Communities: Securing Comprehensive Sexual and Reproductive Health and Rights in Liberia’ with the contribution number 10054, as stipulated in the agreement between the Cooperation partner and Sida. The audit shall be carried out in accordance with international audit standards (ISA) issued by IAASB1. In addition, an assignment according to International Standards on Related Services (ISRS) 4400 (Revised) shall be carried out. The audit and the additional assignment shall be carried out by an external, independent, and qualified auditor.

I. Objectives and scope of the audit 
The  objective  is  to  audit  the  financial  report  for  the  period 
1st July 2024 to 30th June 2025 as submitted to Sida and to express an audit opinion 
according to ISA, applying ISA 800/ISA 805, on whether the financial report of 
‘Just and Equal Communities: Securing Comprehensive Sexual and Reproductive 
Health and Rights in Liberia’ contribution number 10054 is in accordance with the 
Cooperation partner´s accounting records and Sida’s requirements for financial 
reporting as stipulated in the agreement including appendices between Sida and 
Cooperation partner (Agreement).

II. Additional assignment; according to agreed 
upon procedures ISRS 4400 (Revised), review 
the following areas in accordance with the Terms 
of Reference below 
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 budget2. 
2. Observe and inspect whether the financial report provides information regarding: 
a) Financial outcome per budget line (both incomes and costs) for the reporting 
period and columns for cumulative information regarding earlier periods 
under current agreement. 
b) When applicable, compare if the opening fund balance3 for the reporting 
period matches with what was stated as closing fund balance in the previous 
reporting period. 
c) A disclosure of exchange gains/losses. Inquire and confirm whether the 
disclosure includes the entire chain of currency exchange from Sida’s 
disbursement to the handling of the project/programme within the 
organization in local currency/ies, if applicable. 
d) Explanatory notes (such as, for instance, accounting principles applied for 
the financial report). 
e) Amount of funds that has been forwarded to implementing partners, when 
applicable. 
3. 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: 
b) Inquire and inspect whether there are supporting documentation4 for debited 
salary costs. 
c) 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. 
d) Inspect whether the Cooperation partner complies with applicable tax 
legislation with regard to personal income taxes (PAYE)5 and social security 
fees. 
4. Review and confirm that the Cooperation partner screens IP’s and/or suppliers 
to ensure that such parties are not subject to the European Union’s financial 
sanctions list of persons, groups and organizations (EU Sanctions list). 
Enquire whether there have been any reported findings from the screening process 
and if so, report on such findings. 
5. 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. 
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.

Follow up of funds that are channeled to implementing partners. 
Mandatory assignments that must be included if the Cooperation partner forward 
funds to implementing partners (IP’s):  Choose a sample of a minimum of 50 % of the total of disbursed funds as well as  100% of the number of IP’s. 
6. Inspect and confirm whether the Cooperation partner has signed agreements with 
the selected IPs. 
7. Inspect and confirm whether the Cooperation partner, in all agreements entered 
with IP’s, included the requirement to carry out annual audits. The requirement 
shall specify that these audits shall be carried out with application of ISA 
(reporting according to ISA 800/805) and a separate assignment according to 
ISRS 4400 (Revised) should be included for project/programme support. If 
agreements regarding core support are entered into with IP’s, the audit shall be 
conducted in accordance with ISA 700 or National standards on auditing. 
8. Inquire and inspect whether the Cooperation partner has received financial 
reports and auditor reports from all IP’s included in the selected sample: 
a) Inquire and inspect whether the Cooperation partner has verified if reports 
from IP’s are in line with the requirements in the Agreement. 
b) Inquire and inspect whether the Cooperation partner has documented its 
assessment of the submitted financial reports and reporting from auditors 
including management responses and action plans from selected IP’s. 
c) Inquire and inspect whether the Cooperation partner has documented its 
follow-up actions based on the information provided in the financial reports 
and the reporting from the auditor of the selected IP’s. 
d) Inquire and inspect whether the Cooperation partner has reported substantial 
observations6 from selected IP’s audit reports in its communication with 
Sida. List observations7 from IP’s audit reports which have been part of this 
sample. 
9. Confirm whether the Cooperation partner has followed up grants in accordance 
with the requirements as described in the Grant Agreement. Obtain a list of all 
IPs’ that are affected by the decision and select all of the IP’s. Inspect and 
confirm whether the selected IP’s have been followed up in accordance with 
annexed routines.  
10. Enquire whether the Cooperation partner has used alternative payment 
methods. If so obtain information of the total amount that have been transferred 
through alternative payment methods. Furthermore, select all the implementing 
partners where the alternative payment method has been used. 
Review, confirm and report on below 
a) That the Cooperation partner has followed its routine for the use of 
alternative methods. 
b) The relevant amount transferred. 
c) Why the exception from bank transfers is motivated and authorized n 
the specific context. 
  III. The reporting 
The reporting shall be signed by the responsible auditor (not just the audit firm8) 
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 (Revised) assignment 
The additional assignment according to agree upon procedures ISRS 4400 
(Revised) under section II, shall be reported separately in an “Agreed-upon 
procedures report”. 
Performed procedures should be described and the findings should be reported in 
accordance with the requirements in the International Standard on Related 
Services 4400 (Revised). 
When applicable, the sample size shall be stated in the report.

Application Process 
Interested firms should submit a proposal including:  - - - 
A brief description of relevant experience 
Proposed methodology and work plan 
Budget estimate to the below email addresses on or before 25th July, 2025, to  
Vacancy.liberia@actionaid.org and Elizabethgbah.johnson@actionaid.org