Engagement of an External Audit Firm for Financial Audit Services

AI summary

Best Development Initiative (LABDI) is inviting qualified, independent external audit firms to express interest and submit proposals for financial audits of the Local Actors Nigeria LABDI Project funded by the Swiss Agency for Development and Cooperation. The assignment covers two audit periods and must comply with International Standards on Auditing, Nigerian regulatory requirements, and the approved Terms of Reference. The role is full-time and onsite in Borno, Nigeria.

• Engagement of an external audit firm, not an individual staff vacancy
• Covers two audit periods: Dec 2024–Dec 2025 and Jan–Jun 2026
• Must comply with ISA, Nigerian regulations, and approved Terms of Reference
• Focus on financial regularity, internal controls, compliance, procurement, payroll, and assets
• Full-time, onsite assignment based in Borno, Nigeria

Original source description

We are neutral, independent and impartial Non -governmental Organization (NGO) dedicated to provide massive protection and response to protect children, young persons, women and the vulnerable in armed conflicts Read more about this company Engagement of an External Audit Firm for Financial Audit Services Job Type Full Time , Onsite Qualification BA/BSc/HND , MBA/MSc/MA , PhD/Fellowship , Professional Certificate Experience: 10 - 20 years Location Borno Job Field Finance / Accounting / Audit Background Life at Best Development Initiative (LABDI) is a national non-governmental organization implementing humanitarian and development interventions in Nigeria in partnership with institutional donors and development partners. LABDI is implementing the Local Actors Nigeria LABDI Project with support from the Swiss Confederation/Federal Department of Foreign Affairs (FDFA), acting through the Swiss Agency for Development and Cooperation (SDC). In line with the requirements: of the grant agreement and the applicable FDFA Standard Terms of Reference for Financial Audit, LABDI invites qualified, independent and experienced external audit firms to submit Expressions of Interest and proposals to conduct financial audits of the project. The assignment shall be conducted in accordance with International Standards on Auditing (ISA), applicable Nigerian professional and regulatory requirements, and the approved Terms of Reference. Purpose of the Assignment The purpose of the assignment is to engage an independent external audit firm to provide professional assurance on the financial information of the project and assess, among other areas: Financial regularity and reporting; Adequacy and effectiveness of internal controls; Compliance with the project objectives and contractual requirements; Appropriate and economical use of project resources; Procurement and contracting; Payroll and personnel expenditure; Bank, cash and advance management; Assets and inventory; Tax and statutory compliance; Partner/subcontractor transactions, where applicable; Relevant findings arising from the Partner Risk Assessment and other assurance activities; Other financial, compliance and control risks identified during the audit. The audit shall adopt a risk-based approach, with sufficient testing and documentation to support the auditor's independent opinion and recommendations. Audit Periods and Required Reports Audit 1 December 2024 – 31 December 2025 Audit 2 1 January 2026 – 30 June 2026 The selected audit firm shall produce two separate audit reports, one for each period. Although the audits may be undertaken under a single engagement, the financial information, audit opinion, findings, recommendations and management responses for each period must be clearly distinguished. Scope of Work The selected audit firm will be expected to undertake, among others, the following: Reconcile audited financial information with approved budgets, financial reports, general ledgers, bank records and supporting schedules; Verify project income, expenditure, advances, balances and applicable interest; Assess compliance with the signed grant agreement, approved budget and authorized budget modifications; Review the adequacy and effectiveness of financial management and internal control systems; Review procurement and contracting processes for competition, authorization, documentation and value for money; Review payroll, personnel, consultant and allowance expenditures; Verify assets, inventory and project property on a risk-based basis; Review tax, statutory deduction and relevant regulatory compliance; Review partner and subcontractor transactions, where applicable; Follow up previous audit, assurance and management letter findings; Assess relevant financial and institutional risks; Review the implementation of recommendations arising from the Partner Risk Assessment and other assurance processes; Conduct appropriate transaction testing, sampling, analytical review and physical verification where necessary; Provide clear, evidence-based and practical recommendations for identified weaknesses. Key Deliverables Audit Work Plan/Inception Document, including audit methodology, materiality, risk assessment, sampling methodology, proposed site coverage, audit schedule, information requirements: and audit team composition. Draft Audit Report – December 2024 to December 2025. Draft Audit Report – January to June 2026. Completed FDFA Audit Questionnaire, as applicable. Management Letter(s) containing clearly evidenced and risk-rated findings and practical recommendations. Management Representation Letter, in accordance with the applicable audit requirements. Final Audit Report – December 2024 to December 2025. Final Audit Report – January to June 2026. Participation in a closing/exit meeting with LABDI management and relevant personnel. All audit reports and related deliverables shall be prepared in English. Minimum Eligibility and Qualification Requirements: Firm Experience: The audit firm shall: Have a minimum of ten (10) years of relevant professional audit experience; Demonstrate experience: conducting financial, compliance and risk-based audits; Have demonstrated experience: auditing UN agencies, international NGOs, donor-funded organizations, development or humanitarian programmes; Experience: auditing local NGOs may also be considered where the firm demonstrates strong knowledge of NGO accounting, donor compliance, grant management, financial reporting and internal control systems. Location To promote independence and minimize actual or perceived conflicts of interest, the audit firm shall be based outside Borno State. Qualified firms based in Abuja, Lagos or other locations outside Borno State are encouraged to apply. Legal and Professional Status The firm must: Be legally registered to operate in Nigeria; Be authorized to provide professional audit services; Possess relevant professional licences and certifications; Maintain membership/registration with applicable professional and regulatory bodies in Nigeria; Be in good professional standing. Independence The audit firm must: Be independent of LABDI; Disclose any actual, potential or perceived conflict of interest; Confirm that it has no financial, management, family, business or other relationship that could compromise its independence; Be prepared to sign an independence and conflict-of-interest declaration. Minimum Requirements: for the Proposed Audit Team Key audit personnel proposed for the assignment shall have at least five (5) years of relevant professional audit experience. The Engagement Partner/Audit Team Leader should possess an appropriate nationally or internationally recognized professional qualification, such as: ICAN; ACCA; ANAN; CPA; Equivalent recognized professional qualification. The proposed team should collectively demonstrate experience: in: NGO and donor-funded audits; Risk-based auditing; Internal control reviews; Grant compliance; Procurement; Payroll; Asset management; Financial reporting; Nigerian statutory and regulatory requirements. The firm must demonstrate adequate staffing, technical capacity and availability to complete both audits within the required timeframe. Submission Requirements: Interested audit firms shall submit both a Technical Proposal and a Financial Proposal. Technical Proposal Signed cover letter expressing interest in the assignment; Detailed company profile; Certificate of incorporation/registration; Evidence of licence/authorization to provide audit services in Nigeria; Evidence of relevant professional registrations and memberships; Evidence of at least 10 years of relevant professional audit experience; Details of similar assignments undertaken; Evidence of experience: with UN agencies, INGOs, donor-funded organizations and/or NGOs; At least three relevant professional references; CVs of proposed key audit personnel; Evidence that key audit personnel have at least five years of relevant audit experience; Proposed audit methodology; Proposed risk-based audit approach; Proposed work plan and timeline; Proposed team structure and responsibilities; Confirmation of the firm's location outside Borno State; Confirmation of availability to undertake the assignment; Declaration of independence; Disclosure of any actual, potential or perceived conflict of interest. Financial Proposal The Financial Proposal shall be submitted together with the Technical Proposal and accompanied by a signed cover letter. Professional Fees Proposed professional fee for Audit 1: 1 December 2024 – 31 December 2025; Proposed professional fee for Audit 2: 1 January – 30 June 2026; Total combined cost for both audits. Taxes and Additional Costs The proposal shall separately indicate: Applicable taxes; Travel costs, where applicable; Accommodation costs, where applicable; Administrative or reimbursable costs; Any other anticipated charges. The firm shall clearly state whether the total quoted amount is inclusive or exclusive of applicable taxes. Proposed Timeline The cover letter accompanying the financial proposal must clearly state: Proposed commencement date; Expected duration of fieldwork; Expected completion date for Audit 1; Expected completion date for Audit 2; Expected submission date for Draft Audit Report 1; Expected submission date for Draft Audit Report 2; Expected submission date for Final Audit Report 1; Expected submission date for Final Audit Report 2. Proposed timelines should be realistic and demonstrate the firm's ability to complete both audits within the required timeframe. Evaluation of Submissions Submissions will be evaluated based on technical competence, experience, methodology, proposed timeline, independence and value for money. The lowest financial proposal will not automatically be considered the most responsive proposal. Indicative evaluation criteria include: Evaluation Criteria Weight Legal registration, professional authorization and certifications 10% Minimum 10 years' relevant experience: of the audit firm 15% Relevant UN/INGO/donor-funded/NGO audit experience: 15% Qualifications and experience: of proposed key audit personnel 15% Understanding of the assignment and proposed methodology 15% Risk-based audit and internal control experience: 10% Proposed work plan and ability to meet required timelines 10% Financial proposal and overall value for money 10% Total 100% LABDI reserves the right to establish a minimum technical score before financial proposals are considered. Audit Firm Selection and Donor Validation LABDI will conduct the selection process in accordance with its established procurement and contracting procedures. Following completion of LABDI's evaluation and internal selection process, the profile and relevant credentials of the proposed audit firm will be submitted to the relevant donor/partner for review and validation in accordance with the applicable contractual requirements: prior to final engagement and commencement of audit fieldwork. Submission of an Expression of Interest or proposal does not constitute a commitment by LABDI to engage any applicant. Confidentiality All information provided by LABDI in connection with this procurement and audit assignment shall be treated as confidential. The successful firm shall be required to maintain appropriate safeguards for all non-public project, financial, personnel and beneficiary information accessed during the assignment.13. Submission Instructions Requests for clarification regarding this EOI may be submitted through: Email: procurement@labdinigeria.org Contact: 08062160849 Important Notice LABDI reserves the right to: Request clarification or additional documentation from applicants; Verify information and references submitted; Reject any submission that does not meet the minimum requirements; Cancel or modify the procurement process where necessary; Negotiate with the most responsive firm where appropriate; Award the assignment based on technical quality, experience, capacity, independence, timeline and overall value for money. Only firms meeting the minimum technical, professional and independence requirements: will be considered for further evaluation. Check how your CV aligns with this job Method of Application Interested and qualified firms should submit their Technical Proposal and Financial Proposal clearly marked: “Expression of Interest – External Financial Audit Services – Local Actors Nigeria LABDI, Contract No. 81082626” Submissions should be addressed to: The Procurement Committee Life at Best Development Initiative (LABDI) Submission Email/Address: rfq@labdinigeria.org Late submissions will not be considered. Build your CV for free. Download in different templates.