• To determine if the organisation’s
  accounting system provides accurate and adequate details of its financial
  position and fiscal operations in accordance with generally accepted accounting
  principles and the approved organisation budget
• An assessment of whether internal controls
  are robust and are being adhered to, and a further description, in the form of
  fact finding statement, of any specific weaknesses or other issues in the
  organisation’s internal controls that may have been discovered during the
  course of auditing
• To determine if the organisation is managing
  and using its resources in an effective manner
• To determine if funds are being used
  according to the currently approved budget
• Whether or not the financial statements
  are free of material errors and present fairly financial position and
  transactions
• Whether or not payments have been approved
  in accordance with the organisation’s financial rules and regulations
• Whether or not the bank balance as of 31
  December 2015 has been confirmed with the bank for each account and agrees with
  the accounting system
• Provide recommendations for improvement to
  management
   
   
  IV.       Audit Scope 
   
  The audit shall cover the
  adequacy of the accounting and financial operations and reporting systems of
  the organisation.  These include budget
  control, cash management, certification and approving authority, receipt of
  funds, disbursement of funds, recording of all financial transactions in
  expenditure reports, records maintenance and control.
   
  Human
  resources
  The audit work shall cover
  the competitiveness, transparency and effectiveness of the recruitment and
  hiring of personnel and include performance appraisal, attendance control,
  calculation of salaries and entitlement, payroll preparation and payment and
  management of personnel records.
   
  Procurement
  
  The audit work shall cover
  the competitiveness, transparency and effectiveness of the procurement
  activities of the organisation in order to ensure the equipment and services
  purchased meet the requirement of the organisation’s financial rules and regulations.
  
   
  Asset
  management
  The audit work shall cover
  equipment (typically vehicles and office equipment) purchased for the use of
  the organisation. The procedures for receipts, storage, and disposal shall also
  be reviewed.
   
  Cash
  management
  The audit work
  shall cover all cash funds held by the organisation and review procedure
  safeguarding of cash.
   
  General administration
  The audit work
  shall cover travel activities, vehicle management, office premises, office
  management and records management.
   
  Information system
  The audit work
  shall cover the information and communication systems and the control and
  security of equipment and data.
   
   
  V.         Methodology
   
  The audit must
  cover the financial operations, the use and control of non-expendable
  equipment; as well as provide detailed observations and comments on the
  management structure and the monitoring, evaluation and reporting mechanisms.
  The following aspects are to be considered:
   

• The rate of delivery
• Financial accounting, monitoring and
  reporting
• Systems for recording and reporting on
  resources utilisation
• Equipment use and management
• Management structure, including the
  adequacy of internal control and record-keeping mechanisms
• List of asset bought
   
  The scope of
  the audit services required should be sufficiently clear to properly define
  what is expected of the auditor but not in any way restricts the audit
  procedures or techniques the auditor may wish to use to form an opinion. It
  should specify at least the following:
   

• That the audit will be carried out in

  accordance with generally accepted accounting standards

• That the period of activities to be
  audited is from 1 January 2015 to 31 December 2015
• That the auditor will state in the
  audit report if the audit was not in conformity with any of the above and
  indicate the alternative standards or procedures followed
• That the auditor will provide an
  opinion as to the overall financial situation of the organisation for the
  period from 1 January 2015 to 31 December 2015 and will certify:

• The Summary of Expenditure for the
  period from 1 January 2015 to 31 December 2015
• The cash position reported by the
  organisation as at 31 December 2015 and
• The status of assets and equipment
  held by the organisation as at 31 December 2015
   
  VI.       The Auditor Report
  and Management Letter
   
  The expected
  contents of the audit report and management letter and the topics/areas to be
  covered by the auditors should include the following:
   
  Audit Report
   
  The audit
  report should clearly indicate the auditor’s opinion. This would include at
  least the following:
   

• That it is a
  standard purpose report and its intended use
• The audit standards that were applied
• The period
  covered by the opinion
• The scope
  limitation for those transactions
• Whether the Statement of Assets and
  Equipment is fairly and adequately presented as at 31 December 2015
• Whether the Statement of Cash Position
  reported by the organisation is fairly and adequately presented as 31 December
  2015
   
  The English
  language shall be used for all reports and correspondence.
   

• An assessment of the organisation’s internal
  control system with equal emphasis on (i) the effectiveness of the system in
  providing management with useful and timely information for the proper
  management of the organisation and (ii) the general
  effectiveness of the internal control system in protecting the assets and
  resources of the organisation.
• A description of any specific internal
  control weaknesses noted in the financial management of the organisation and
  the audit procedures followed to address or compensate for the weaknesses.
  Recommendations to resolve/eliminate the internal control weaknesses noted
  should be included. 
   
  The management
  letter should also include the following:
   

• The categorisation of audit findings
  by risk severity: High, Medium, or Low 
  Definition
  of these categories are given in Annex 1
• The classification of possible causes
  of the audit findings
• Comments as to whether recommendations
  made in the management letter for the previous audit were implemented or, if not,
  the implementation status
• Management comments/response, as
  applicable
   
  The audit
  report should be in English formatted in A4 size and the number of copies submitted are five (5) hard copies and one (1) electronic copy/pdf version.
   
   
   
   
   
   
   
  VII.      Qualifications of the auditor
   

• The Auditors/Audit Team members should
  have a sound track record in conducting an audit review of international
  organizations or public entities with not for profit experience.
• The Auditors/Audit Team members should
  have working knowledge in Indonesia language, as some vouchers,
  receipts/additional reports may not be available in English
• The Auditor/Audit Team members must be
  completely impartial and independent from all aspects of management or
  financial interests in the entity being audited. The auditors/audit team
  members should not, during the period covered by the audit nor during the
  undertaking of the audit, be employed by, serve as director for, or have any
  financial or close business relationships with any senior participant in the
  management of the entity.
• The Auditors/Audit Team members should
  be experienced in applying audit standards whichever is applicable for the
  audit. The auditor must employ adequate staff with appropriate professional
  qualifications and suitable experience with including experience in auditing
  the accounts of entities comparable in size and complexity to the entity being
  audited.
• Curriculum vitae (CVs) should be
  provided by the principal of the firm of auditors who would be responsible for
  signing the opinion, together with the CVs of managers, supervisors and key
  personnel proposed as part of the audit team. CVs should include details on
  audits carried out by the applicable staff, including ongoing assignments
  indicating capability and capacity to undertake the audit.
• The Audit Firm should state its legal
  nature, the total number of auditors who are owners and/or employees of the
  firm as well as auditing services provided by the firm and state whether the
  firm has any associations or affiliation with any other professional firm as
  auditors in the Indonesia or abroad.
   
   
  VIII.    PROPOSAL REQUIREMENTS
   

• Firm Background and Experience: The
  proposal should describe your firm’s expertise and any relevant not-for-profit
  industry experience.  Also, include the
  size of your firm, other areas, in which the firm specializes, and significant
  professional memberships and affiliations. 
  
• Identify Key Personnel in the
  Engagement Team: Please explain your approach to staffing and provide
  information on the professionals who will be engaged in the audit activities,
  including related experience of the primary contact.  
• Approach/Methodology to Conducting the
  Review: Please describe your firm’s auditing philosophy and methodology.  Please detail the steps of the engagements,
  noting stages that would directly involve our personnel, including your overall
  expectations of client involvement.
• References: Please list contact
  information for at least three organizations similar to the AF.
   
   
  IX. Fees
   
  Please outline
  your fee structure for the audit in Indonesia Rupiah
  (IDR). Please include an estimate of any expenses necessary to adequately
  perform the work required and related activities needed to maintain a quality
  client relationship.
   
  The cost of preparing a proposal
  and conducting the pre-proposal survey or any meetings for verbal presentations
  shall be borne by your company, regardless of the conduct or outcome of the
  solicitation process.  Proposals must
  offer services for the total requirements. 
  All proposals must remain valid and open for acceptance for a period of
  100 (one hundred) days after the date specified for receipt of proposals.
   
   
  X.         Proposal Scoring
   
  Proposals will
  be evaluated in two parts. The technical proposal shall bear 60% of  the total marks while the financial proposal
  shall bear 40% of the total marks.
   
  Functionality
  evaluation criteria 
   

ANNEX 1: CATEGORISATION OF AUDIT
FINDINGS BY RISK SEVERITY