masteR services agreement 03 – Audit Quality & Reporting

PASAI is inviting suitably qualified professionals to apply for a Master Services Agreement based on a need for services centred around providing advice to supreme audit institutions (SAIs) on their Audit Quality and Reporting, including the outputs of the audit/control work that is the core business of any SAI.

This includes an indicator that measures the SAI’s audit coverage for each of the audit disciplines (financial, performance and compliance). Selected consultants will be expected to assist SAIs to ensure that the three type of audits have been carried out as per international best practices, while training to develop capacity wherever weaknesses are identified.

Brief description for each of the different types of audits is provided below:

Financial audit determines whether an entity’s financial information is presented in accordance with the applicable financial reporting and regulatory frameworks. This is achieved by obtaining sufficient and appropriate audit evidence to enable the auditor to express a reasonable assurance-based opinion on whether the financial information is free from material misstatement, whether due to fraud or error. ISSAI 200 elaborates on this further.
Performance audit assesses whether interventions, programmes and institutions are performing in accordance with the principles of economy, efficiency and effectiveness, and whether there is room for improvement. This is achieved by examining performance against suitable criteria, and by analysing the cause of deviations from criteria or problems. The aim is to answer key audit questions and to provide recommendations for improvement. ISSAI 300 elaborates on this further.
Compliance audit determines whether a particular subject matter is in compliance with applicable authorities identified as criteria. Compliance auditing is performed by assessing whether activities, financial transactions and information are, in all material respects, in compliance with the authorities which govern the audited entity. ISSAI 400 elaborates on this further.

Based on experience, consultants can apply to be selected to provide services for either one of the different types of audits or all three. This Master Services Agreement will be set out for one year along with an option to extend for another year.

Key Information for Request for Proposals (RFP)

Name of Opportunity: Master Services Agreement 03 – Audit Quality & Reporting

Submission Deadline: Open, applications will be reviewed three times a year

Expected Number of Days of work: This Master Services Agreement will consist of a series of mini contracts issued out over a period of one year. Each contract time period may vary between 30 to 45 days (approximately).

Type of Opportunity: Master Services Agreement

Documents to be submitted within the Proposal:

1. Schedule 3 – Response Forms: Letter of Intent to Enter Into a Master Services Agreement 03

2. Schedule 4 – Response Forms: Technical Proposal Template

a) Domain Selection (refer to Section A)

b) Bidder’s Summary Profile (refer to Section B)

c) Technical Proposal (refer to Section C)

d) Candidate’s CV (Additional documents to be attached to Schedule 4)

e) Attested Copies of Relevant Qualifications (Additional documents to be attached to Schedule 4)

3. Schedule 5 – Response Forms: Financial Proposal Template

Address for submitting Proposal: secretariat@pasai.org

Any other Information: Please clearly mark "Master Services Agreement 03 – Audit Quality & Reporting" in the subject line of your email

Please download the relevant information as follows:

Schedule 1 - Master Services Agreement 03 TORs - Audit Quality Reporting

Schedule 2 - Instructions to Contractors for Preparing Bids

Schedule 3 - Response Forms – Letter of Intent to Enter Into a Master Services Agreement

Schedule 4 - Response Forms – Technical Proposal Template

Schedule 5 - Response Forms – Financial Proposal Template

Supplier Queries:

Query: Just needed a quick clarification on schedule 4 section C. There are 7 sections that need to be completed. I was unable to relate that to the TOR. Could you please assist as to what needs to be filled in those 7 sections.

Response: Schedule 4, section C has seven sections that need to be completed. Theses sections need to be completed based on the audit stream (financial, performance, compliance audit) that a candidate is applying for.

Example 1: If a candidate is applying for the Financial Audit Stream, then five of the seven sections need to be updated as follows:

Section 1: Provide experience whereby candidate has carried out tasks mentioned under SAI 9: Financial Audit Standards & Quality Management

What is SAI 9?
(Refer to page 5 of the TORs) This indicator is specific to the fundamental principles of financial auditing. Assessing the SAI’s approach to financial auditing in terms of its overall standards (for example, is it following internationally recognised Audit Standards?) and guidance for financial auditing, as well as how matters of audit team management and skills and quality control are implemented at the audit engagement level. The results of this deliverable will also feed into other Domains in terms of quality of these functions at the organisational level SAI-4, and professional development and training in SAI-23.

Section 2: Provide experience whereby candidate has carried out tasks mentioned under SAI 10: Financial Audit Process

What is SAI 10?
Reviewing the Financial Audit Process. This deliverable will look at how financial audits are carried out in practice. It examines the planning phase, the implementation phase and the reporting phase. Also review if the practice is following internationally recognised Audit Standards and provide certifications on each area.

Section 3: Provide experience whereby candidate has carried out tasks mentioned under SAI 11: Financial Audit Results

What is SAI 11?
Evaluating outputs of the financial audit function of the SAI, the timely submission and publication of financial audit reports, and the follow-up of audit observations and recommendations. This includes reviewing if the outputs are also following internationally recognised Audit Standards and provide certifications on each area.

Section 4: Overall work experience

Showcase how the candidate has had at least five years of post-qualification experience of carrying out financial audits of public sector entities. Areas of work should include:

Reporting on financial statements and communicating results of the audit to senior management
Preparing audit documentation, plans and strategy, agreeing on terms of audit engagement
Obtaining sufficient and appropriate audit evidence regarding compliance with relevant laws and regulations
Assessing risks of material misstatement
Identifying and assessing risks due to fraud, reducing auditor risk
Evaluating overall internal control environment
Following up on auditor findings progress taken by different entities

Section 5:

Any other area of work that the candidate may want to mention

Example 2: If a candidate is applying for the Performance Audit Stream, then five of the seven sections need to be updated as follows:

Section 1: Provide experience whereby candidate has carried out tasks mentioned under SAI 12: Performance Audit Standards & Quality Management

What is SAI 12?
(Refer to page 5 of the TORs) Assessing the foundations for performance audit practice being followed at each SAI, including audit standards (for example, is it following Internationally recognised Audit standards, guidance material, as well as the processes to ensure the quality of performance audits?).

Section 2: Provide experience whereby candidate has carried out tasks mentioned under SAI 13: Performance Audit Process

What is SAI 13?
Reviewing the performance audits being carried out in practice examining the planning phase, the implementation phase and the reporting phase. Also review if the practice is following internationally recognised Audit Standards and provide certifications on each area

Section 3: Provide experience whereby candidate has carried out tasks mentioned under SAI 14: Performance Audit Results

What is SAI 14?
Evaluating outputs of the performance audit results, the timely submission and publication of performance audit reports, and the follow-up of audit observations and recommendations. This includes reviewing if the outputs are also following internationally recognised Audit Standards and provide certifications on each area.

Section 4: Overall work experience

Showcase how the candidate has had at least five years of:

Experience of evaluating government undertakings, systems, operations, programmes, activities are performing in accordance with the principles of economy, efficiency and effectiveness
Experience of examining performance against suitable criteria, and by analysing causes of deviations from criteria or problems
Experience of carrying out systems-based approach towards audit, results-based approach and a problem-oriented approach
Carrying out value for money or cost benefit analysis of public sector facilities and services
Designing audit questions related to principle’s of economy efficiency and effectiveness
Developing and designing audit questions and gathering evidence and feedback in response to those questions
Writing out recommendations on the results identified

Section 5:

Any other area of work that the candidate may want to mention

Example 3: If a candidate is applying for the Compliance Audit Stream, then five of the seven sections need to be updated as follows:

Section 1: Provide experience whereby candidate has carried out tasks mentioned under SAI 15: Compliance Audit Standards and Quality Management

What is SAI 15?
Reviewing the fundamental principles being applied to compliance auditing within a SAI, including audit standards (for example, is it following Internationally recognised Audit standards?) and guidance material, internal SAI processes and systems to ensure the quality of compliance audits.

Section 2: Provide experience whereby candidate has carried out tasks mentioned under SAI 16: Compliance Audit Process

What is SAI 16?
Reviewing how the compliance audits are carried out in practice within a SAI. Examining the planning phase, the implementation phase and the reporting phase. Also review if the practice is following internationally recognised Audit Standards and provide certifications on each area.

Section 3: Provide experience whereby candidate has carried out tasks mentioned under SAI 17: Compliance Audit Results

What is SAI 17?
Assessing outputs of the compliance audit function of a particular SAI, such as the timely submission and publication of compliance audit reports, or the follow-up of audit observations and recommendations etc. This includes reviewing if the outputs are also following internationally recognised Audit Standards and provide certifications on each area.

Section 4: Overall work experience

Had at least five years of experience of:

Assessing whether a particular subject matter complies with applicable authorities, such as whether activities, financial transactions and information comply, in all material respects, with the authorities which govern the audited entity
Experience of considering audit risk throughout the audit process (that is, the three different dimensions of audit risk: inherent risk, control risk and detection risk)
Experience of considering materiality throughout the audit process (including consideration of materiality by value, nature and context)
Ability to understand different entities in light of the authorities governing it. Experience of understanding the control environment and the relevant internal controls

Section 5:

Any other area of work that the candidate may want to mention

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