audit instructions forum syd 2018 for local auditors · 2019. 11. 14. · forum syd audit...

Forum Syd Audit Instructions 2018

– Country Office –

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Audit Instructions Forum Syd 2018 for local auditors

“Please use the 2018 instruction as agreed when procuring the auditor for fiscal year 2019. State that it is last years instruction and that it will be updated and sent when finalized, no major changes will be done, that is why we can use the 2018 instruction for the procurement”.



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Reporting Date

Milestones and Deliverables Receiver

November 2018

30 Acknowledgement of receipt of instructions and

Confirmation of Independence and Authorization

Certificate (Exhibit A)

CL

30 Estimated Fees for Financial Year 2018 (Exhibit B) CL + FM

December 2018

15 Copy of signed local audit contract CL + FM

15 Competence description of the audit team

(Exhibit C) CL + FM

15 Planning documents including audit programs CL + FM

February 2018

22 Balance Sheet + Profit and Loss Accounts (cost centre Country Office) per program, signed for identification purposes

CL + FM

22 Audit Memorandum, including ISA 805 statement Audit in Subsequent Links (“Specifications of Contributions to NGO´s”) (Exhibit D+E)

CL+FM+LM

22 Representation letter signed by local management (Exhibit F)

CL + FM

April 2018 12 Subsequent events review CL + FM

(Exhibit G)

CL – Cecilia Luther, PwC Stockholm TL – Team Leader Finance and Internal control, Forum Syd Stockholm LM – Local Management

Important insights

Clarification: FS offices are not own legal entities. See further in section 1. General Information

The audit is carried out in accordance with ISA 805, The Independent Auditor’s Report on Special Purpose Audit Engagements.

The Reporting Co-ordinator at PwC Stockholm is Cecilia Luther– see further in section 1.1.1 Key contacts PwC



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Contents

Examination of Financial Statements ........................................................................................ 4

1. General Information ................................................................................................................ 4

1.1 Key Contacts ....................................................................................................................................... 5

2. The audit assignment ............................................................................................................ 10

2.1 Confirmation of the ability to comply with the Group Audit Instructions ............................ 11

2.2 Materiality ....................................................................................................................................... 11

2.3 Involvement in the work of component auditors ...................................................................... 11

2.4 Component auditor’s report ......................................................................................................... 12

2.5 Uncorrected and corrected misstatements ................................................................................. 12

2.6 Deficiencies in internal control .................................................................................................... 13

2.7 Documentation retention requirements ...................................................................................... 13

2.8 Expected date of the audit report on the group financial statements .................................... 13

3. Audit Focus Areas (ISRS 4400) .......................................................................................... 13

3.1 Audit Focus Areas ........................................................................................................................... 13

4. Reporting Requirements ...................................................................................................... 15

4.1 General ............................................................................................................................................. 15

4.2 Confirmation (Exhibit A) ............................................................................................................... 16

4.3 Estimated Fees for Financial Year 2018 (Exhibit B) ................................................................. 16

4.4 Competence description of the team (Exhibit C)........................................................................ 16

4.5 Year-end Reporting ........................................................................................................................ 17

4.6 Subsequent events review (Exhibit G) ......................................................................................... 19

5. Sensitive Matters .................................................................................................................... 19

6. Feedback .................................................................................................................................... 19



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Exhibits

A. Acknowledgement of receipt of instructions

B. Estimated Fees for Financial Year 2018

C. Competence description of audit team

D. Audit Memorandum, including ISA 805 statement (template)

E. Audit in Subsequent Links (Specifications of Contributions to partners), adjusted for each auditor

F. Representation letter signed by local management (template)

G. Subsequent events memorandum

Examination of Financial Statements

Instructions for participating auditors for the financial year ending December 31st, 2018.

The purpose of these instructions is to provide guidance to the auditors contracted to examine the financial statements (specific description further down) of the local Forum Syd offices outside of Sweden. One set of reporting for each office should be submitted to PwC Stockholm, i.e. one set for every Country Office.

1. General Information

Forum Syd is an organization mainly financed by the Swedish International Development Authority, Sida, controlled by the Swedish Government. Forum Syd currently has programmes and projects running in Latin America, Africa, Asia and Europe.

Forum Syd country offices are branches of the legal entity Forum Syd in Sweden. There is only one General Ledger for Forum Syd, why the local offices (branches) are booked at separate cost centres in the General Ledger. The projects are implemented in corporation with partner organizations, which are own legal entities.

Clarification regarding Forum Syd offices not being own entities

The Forum Syd local offices are not own entities.

For Year 2018 grants from donors related to international programmes will be booked in Head Office (HO) when received on revenue accounts specified by donor; Sida, EU, Others. When the grants are transferred from HO to the CO the revenue accounts in HO are debited in SEK and the revenue accounts in CO are credited by the received amount in local currency equivalent to the same amount in SEK.

At the end of the year the total amount on the revenue accounts in HO and the CO combined must correspond to the received amount from the donors.

Administration costs (overhead and staff contribution to HO) are booked in Head Office on internal accounts and audited in HO.



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Forum Syd Sweden registers the ingoing balances for the local offices and the settlement accounts are reset to zero. Note that the local offices do not have complete balance and profit and loss statements. The voucher with the ingoing balances for each cost centre has to be zero, therefore Forum Syd uses a “created account” 2300. Account 2300 is only used for ingoing balances.

Forum Syd Head office can send verification regarding settlement accounts and account 2300, if demanded by the local auditors.

All Forum Syd offices and projects shall be audited by a qualified auditor. The Forum Syd Country Manager appoints the auditors and signs the contracts. PwC Stockholm is the statutory auditor of Forum Syd in Sweden. For Financial Year 2018 Erik Albenius is the Lead and Engagement Partner from PwC.

Please advise PwC Sweden and Forum Syd (Team Leader Finance and Internal control in Sweden and Country Manager at the local office) immediately, of any difficulties in meeting the deadlines and requirements or if you require further information. The contact details are set out in Section 1.1 below.

If there are any specific local requirements, please handle this at the local level.

1.1 Key Contacts

1.1.1 PwC

As auditors of the head office in Stockholm, PwC Sweden will be responsible for the co-ordination of the audit and communication with Forum Syd Management. We want to highlight the importance that participating auditors must keep the central audit team in Sweden informed of the progress of the audit, audit planning, major audit problems, etc. Likewise, the central audit team in Sweden and Forum Syd Management will keep the participating auditors informed of any corporate decision that might affect your audit.

The principal individuals forming the Forum Syd central audit team in Sweden are:

Lead and Engagement

Partner

Erik Albenius

Mobile +46 10 212 58 34

e-mail [email protected]

Audit Manager Cecilia Luther

Mobile +46 10 212 58 77


Address PwC

SE-113 97 Stockholm

Sweden

mailto:[email protected]




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If you have any questions concerning these instructions or require information during the audit, please do not hesitate to contact mainly Cecilia Luther or Erik Albenius.



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1.1.2 Forum Syd

Forum Syd Head Office

Cost Center 1

Head of Administration Petra Nergårdh

Phone +46 8 506 370 53

Address Box 15407

S-104 65 Stockholm

E-mail [email protected]

Team Leader Finance and Internal Control

Marie Karsberg

Phone +46 8 506 370 27

Address Box 15407

S-104 65 Stockholm


HUB Latin America and the Caribean

Cost Center 9

Hub Manager for Latin America and the Caribean

Claudia Jimena Arenas Ferro

Phone +57 310 249 05 00

Address Calle 41 26 B 59, Bo. La Soledad,

Bogotá, D.C., Colombia


Financial Manager of Hub Latin America and the Caribean

Cristian Julián Caro Pedreros

Phone +57 320 414 07 76

Address Calle 41 26 B 59, Bo. La Soledad,

Bogotá, D.C., Colombia







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HUB Eastern & Southern Africa

Cost Center 7

Temporary Head of Hub Eastern and Southern Africa

Lisbet Petersen (Deputy Secretary General)

Phone +46 506 371 77

Address Box 15407

S-104 65 Stockholm


Finance Admin and Human Resource Manager

Jennifer Kamau

Phone +254 726 004 483

Address Box 1419- 00502, Karen, Nairobi, Kenya

Lenana Towers, 3rd Floor, Lenana Road, Nairobi


HUB Eastern Europe

Cost Center 12

HUB Manager of HUB Eastern Europe Ognjen Radonjic

Phone +370 64 568 316

Address Olimpiečių g. 1/4

LT-09235 Vilnius, Lithuania


Finance Manager HUB Eastern Europe Justė Salickienė

Phone +370 5 2507332

Address Olimpiečių g. 1/4

LT-09235 Vilnius, Lithuania


Country Office Cambodia

Cost Center 5

Temporary Country manager Elisabet Eklind

Phone +46 8 506 370 34

Address Box 15407

S-104 65 Stockholm


Finance, Administration and HR Manager Naren Kou

Phone +855 23 22 11 47

Address 133, St.95, Boeung Trabek, Chamkamon,

Phnom Penh, Cambodia










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Country Office Somalia

Cost Center 13

Country manager Bashir Mohammed

Phone + 252 633 350 853

Address Opposite Mansoor Hotel

Hargeisa, Somalia


Temporary Finance Manager Björn Magnusson

Phone +46 8 506 370 42

Address Box 15407

S-104 65 Stockholm


1.1.3 List of appointed auditors

Kenya – Country Office

PKF Kenya

Stella Mwangi

Mobile +254 725330816


Cambodia – Country Office

PwC Cambodia

Benilda C Fernabdo

Phone

e-mail

+85523860606 [email protected]

Colombia – Country Office

Audesal Ltda Jaime González Jiménez

Phone +571 492 97 67/428 40 08







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Vilnius – Country Office

Provisus, UAB

Phone

e-mail

Vaida Ileviciute

+370 263 87 51

[email protected]

Somalia - Country Office

PKF Somalia

Phone

e-mail

Enock Barimo

+252 636 469 561

[email protected]

2.The audit assignment

The audit should be conducted in accordance with International Standards on Auditing (ISA) established by IFAC. You are instructed to carry out your audit in accordance with ISA 805, The Independent Auditor’s Report on Special Purpose Audit Engagements, and these instructions. Of further important relevance is ISA 240, The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements. Your audit should also be conducted in accordance with local laws and regulations. The special instructions in Section 3.1 below must also be included in the assignment, since the audit focus area exceed general international standards due to back donors’ requirements.

The scope of the examination should enable the auditor to issue an Audit Memorandum, including an ISA 805 statement on the office’s financial statement (i.e. Cost Centre Report1 for the Country Office). The cost centre for each office is stated above, in Section 1.1.2. Your reporting must also include an opinion on the internal control of the local office, i.e. evaluation of the administrative system and system of internal control particularly regarding audit of subsequent links, i.e of partner organisations, PwC Stockholm is auditing the internal control of Forum Syd Head Office in Sweden and the accounting system Agresso.

Sida is the main contributor of funds to Forum Syd. This leads to focus areas exceeding the general International Auditing Standards. We have taken these focus areas into consideration in our audit instructions to you (Section 3.1 below) as well as in the reporting template (Exhibit D). Please note, all audit focus areas must be applied, regardless of the contributor.

Part of the audit is the professional judgment that the administrative organization, internal control system and annual accounts (i.e. Cost Centre Report for the Country Office) are in compliance with the instructions of Forum Syd and any other policy,

1 The Cost Centre Reports at Forum Syd local office are internal Profit and Loss Statement as well as Balance Sheet,

which are not complete reports, see further under General Information on page 5. The “cost centre” refers to

geographically where the transactions are booked. As a result of this, transactions regarding the local offices may be

booked also in Stockholm. Those transactions will be audited in Stockholm.





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procedures and manuals present at the Country Office. The auditor must therefore take notice of the relevant information and documentation available at the Country Office.

The following documents are relevant:

• Financial Manual in relevant parts

• Delegation Principles

• Instructions for year-end closing preparations from the Swedish Forum Syd Headquarters

• If there are local guidelines for procurement, it is those who should be used, otherwise it is Forum Syd’s global guidelines

The above documents will together with the instructions for year-end be send by email to the local staff. The local staff will supply you with those documents.

According to generally accepted auditing standards the audit must be planned and executed in such manner as to safeguard a reasonable degree of assurance that the annual accounts (i.e. Cost Centre Report for the Country Office) do not contain any substantial misstatements or misrepresentations.

In many environments there is a risk for misappropriations of assets. The local audit team should take this into consideration throughout the entire audit.

The focus should not only be on describing differences and internal control deficiencies. To the largest extent possible each auditor should make suggestions for improvements to contribute to an enhanced internal control within the organization.

2.1 Confirmation of the ability to comply with the Group Audit Instructions

It is important that you read these instructions, understand the requirements and provide us with

Exhibit A (Acknowledgement of receipt of instructions and Confirmation of Independence and Authorization Certificate. If you believe that you cannot accept the engagement or cannot comply with certain aspects of the Group Audit Instructions, it is your responsibility to notify us as soon as practicable.

2.2 Materiality

Please ensure that all uncorrected misstatements which come to your attention are reported to us unless they are “clearly trivial”. We have concluded that any misstatements of less than SEK 5 000 should be treated as clearly trivial. Frauds should be reported unless the amounts are trivial. An Audit Difference Summary is part of Exhibit D.

2.3 Involvement in the work of component auditors

We intend to use the work performed by you for the purpose of the audit of the Group financial statements, and therefore, plan to be involved in your work.



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When you are performing an audit of a significant component (i.e. a component that is of individual financial significance to the group or a component that, due to its specific nature or circumstances, is likely to include significant risks of material misstatement of the group financial statements) for purposes of the Group audit, we will be involved in your risk assessment to identify significant risks of material misstatement of the Group financial statements by:

• Discussing with you or component management those of the component’s business activities that are significant to the Group,

• Discussing with you the susceptibility of the component to material misstatement of the financial information due to fraud or error, and

• Reviewing your documentation of identified significant risks of material misstatement of the Group financial statements. Such documentation may take the form of a memorandum that reflects your conclusions with regard to the identified significant risks.

• Reviewing your planning document and audit program

Also, when you are performing work in response to a significant risk of material misstatement of the Group financial statements at a significant component, we will evaluate the appropriateness of the further audit procedures to be performed to respond to the identified significant risks of material misstatement of the Group financial statements. We may inform you that we intend to evaluate the appropriateness of the further audit procedures performed by you in response to other risks of material misstatement relevant to the component’s financial information. We may also inform you that we will be involved in the further audit procedures.

You need to confirm that you will cooperate with such involvement in your audit, including providing us the access to your audit documentation prepared in connection with the Group audit upon our request.

2.4 Component auditor’s report

When performing an audit of the financial information of a component you need to submit to us the ISA 805 statement in Exhibit D Audit memorandum including ISA 805 statement.

In the event that you have concerns regarding the wording in the ISA 805 statement, please discuss the matter with us as soon as practicable.

2.5 Uncorrected and corrected misstatements

You need to report to us corrected and uncorrected misstatements that individually exceed SEK 5 000 using Exhibit D Audit memorandum including ISA 805 statement. For the purpose of the Group audit, the <income statement/balance sheet/dual> method is to be used when reporting uncorrected misstatements to us. Frauds should be reported unless the amounts are trivial.



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2.6 Deficiencies in internal control

All deficiencies in internal control at the component level identified by you shall be reported to us and described using Exhibit D Audit memorandum including ISA 805 statement. Communication of deficiencies, not limited to significant deficiencies, provides the group engagement team the information needed to consider the aggregation of deficiencies and to determine whether such aggregation results in any significant deficiencies at the group level.

If no deficiencies exist, a ‘nil’ return shall be submitted on Exhibit D Audit memorandum including ISA 805 statement.

2.7 Documentation retention requirements

Documentation supporting your reporting to us in connection with the Group audit is to be retained until January 2028 in such a way that it will be available to us on request.

2.8 Expected date of the audit report on the group financial statements

The date of the auditor’s report on the Group financial statements is expected to be approximately 27th April 2018. We will inform you at a later date, if the date of the Group audit report changes.

3. Audit Focus Areas (ISRS 4400)

All items below must be commented in the Audit Memorandum (attached template, Exhibit D), including those which are not applicable or for which you have nothing to report (by N/A or NONE). No headlines/areas are allowed to be deleted from the report template. If applicable, please make sure to specify the amount and currency and if the deviation is positive or negative.

For transparency and efficiency reasons, PwC Stockholm emphasizes that you must use the word templates attached to the distribution of these audit instructions. Reporting not following the templates will be refused and new reporting following the templates will be demanded.

3.1 Audit Focus Areas

1. A statement whether the audit has been performed in accordance with International Standards on Auditing (particularly ISA 805), Sida requirements, local laws and regulations and these Audit Instructions from PwC Sweden.

2. A comment on whether the auditor proposes that the ISA 805 statement is approved or not, and a reference to the financial statements (i.e. Cost Centre Report for the Country Office). If the ISA 805 statement is not approved, comment why.

3. A statement whether the financial reports have been prepared according to cash basis or accrual basis.

4. Verification of balance sheet items and statement of income and expenditures



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items, including the reconciliation between these statements.

5. Financial positions of Clearing Accounts with Head Office are audited by PwC Stockholm. If financial positions of Clearing Accounts exist with partner organizations concerning remittances and other transactions, those need to be confirmed in writing.

6. A statement whether the expenses are covered by sound documents or other evidence and are not in conflict with relevant statutory rules and regulations. You should also audit whether expenses are booked on appropriate accounts and allocated to appropriate activity code and appropriate project code. Also a statement whether the expenses are approved according to Forum Syd’s internal rules.

7. A statement whether the Sida funds are kept on a separate bank account. Also audit

that Forum Syd is the holder of the bank accounts and that the bank account need to be signed by two persons together.

8. A statement whether there are formal agreements between Forum Syd’s Country

Office and the organizations receiving the grants, signed by authorized persons. Also audit that agreements are according to the Forum Syd templates.

9. A statement whether money is paid out against a written request to the right

organizations.

10. If the organization (i.e. local Forum Syd office, project, partner organization) has used Sida funds for purchases of services or goods exceeding SEK 50,000 excl. VAT from the same supplier during the year, there should be a statement regarding whether the organization follows Forum Syd’s principles for procurement (approved by SIDA due 29-09-2011). If the Forum Syd office has a procurement guideline with stricter threshold values approved by Forum Syd Head Office, a statement whether the local guideline has been adhered to should be made.

11. If salaries are allocated between several projects, give a general description of the

praxis for allocation of funds to cover salaries.

12. Review internal control procedures and test effectiveness of internal controls at the local Country office. Please write a summary of significant internal control issues that you have observed during the audit.

13. Regarding subsequent links, when Country Office channels grants, you should

review whether the Country Office has internal controls and routines to follow up audit reports from projects so that partner organizations are compared to agreed budgets etc. Please follow up that that the local office summary of Management letters is done. Please report significant internal control issues that you have observed.

14. Review if partner audit report and management response are assessed an action plans are followed up on.



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15. Review if spot checks are regularly made on partner expenses, agreement and policy compliance.

16. Review follow up to previous year’s audit comments. Please give a short description of what the organization has done.

17. Obligations with external parties must be documented in writing. Also comment

whether the agreements are kept in an orderly way and that agreements are signed by authorized persons.

18. Suitable audit of internal control regarding cash count must be done.

19. If grant also is received from other donors than SIDA, the guidelines from the other

donors must be followed. Please acknowledge that you have read those as well as incorporated those in your audit.

20. Are the Anti-corruption policy known and recognized within the office.

21. If applicable, your audit must cover local laws and regulations regarding audit,

such as local requirements of audit of the office’s legal form of business entity. Moreover, local requirements regarding taxes and payment of taxes must be included in your audit, if applicable.

4.Reporting Requirements

4.1 General

Timely submission to PwC Stockholm and Forum Syd (Team Leader Finance and Internal control as well as Country Manager) is essential to the successful completion in Sweden of the consolidated financial statements of Forum Syd. To achieve timely presentation of the ISA 805 statement submitted by PwC Stockholm to management and funders, strict deadlines need to be adhered to.

Furthermore, any accounting and auditing problem should be resolved as early as possible to avoid the need for adjustment to the Country Office’s accounts.

We therefore suggest that you discuss with the local office whether to start your audit before the end of the financial year even though no reporting is required at that time. Time plan can be found at first page. Please send your report by email. For distribution, see Section 6.

If, for any reason, your audit work cannot be completed as scheduled or you are not receiving full co-operation from the local office, PwC Stockholm should be informed at once.

For transparency and efficiency reasons, PwC Stockholm emphasizes that you must use the word templates attached to the distribution of these audit instructions. Reporting not following the templates will be refused and new reporting following the template will be demanded.

Reporting and communication language is English.



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4.2 Confirmation (Exhibit A)

When the audit instructions have been read and understood by the locally appointed auditor, the Acknowledgement of receipt of instructions (Exhibit A) should be sent to PwC Stockholm at latest by November 30th.

The Swedish regulation on auditors' independence and the PwC Independence policy set certain provisions regarding an auditor's independence in relation to clients and restricts the auditors from providing certain non-audit services to clients. The independence requirements stated in the IFAC Code of Conduct, are also applicable to foreign auditors.

It is the responsibility of each professional providing service to Forum Syd to comply with the applicable ethical requirements, including independence requirements.

Therefore we need you to confirm to the best of your knowledge that you, the engagement team, persons in the Chain of Command and the audit firm are independent of Forum Syd and its related entities (as defined by IFAC), and that you, the engagement team, persons in the Chain of Command or other professionals of your firm do not provide services to the client that could impair independence.

Situations that impair or may impair auditors’ independence can be divided into: Self-interest threats, Self-review threats, Advocacy threats, Familiarity/trust threats, Intimidation threats and Other threats. You are to inform us immediately of any issues that arise when performing independent procedures.

4.3 Estimated Fees for Financial Year 2018 (Exhibit B)

Estimated Fees for Financial Year 2018 (Exhibit B) should also be sent be sent to PwC Stockholm and Forum Syd at latest by November 30th. Forum Syd has decided that no fee to local auditors will be paid before the invoice amounts have been checked by PwC Stockholm and Forum Syd

4.4 Competence description of the team (Exhibit C)

A copy of the signed local audit contract and a competence description of the team (manager to partner level) must be sent to at latest by December 15th (Exhibit C).

Planning documents and audit programs must be used. The documents must be sent to PwC Stockholm for information purposes at latest by December 15th.



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4.5 Year-end Reporting

Upon completion of the audit (but not later than February 22nd) the participating auditor should electronically forward the reporting below to PwC Stockholm and Forum Syd Head Office. Hard copies of the reporting should be sent to the Country Office. The reporting must include the following information and be submitted in English:

a. Balance Sheet and Profit & Loss Accounts (i.e. Cost Centre Report for the Country Office) per program (only for Profit & Loss), signed for identification purposes

b. Audit Memorandum, including ISA 805 statement (Exhibit D)

c. Audit in Subsequent Links – specifications of contributions to parties(exhibit E)

d. Representation letter signed by local management (Exhibit F)

The attached templates should be used for reporting.

4.5.1 Audit Memorandum, including ISA 805 statement (Exhibit D)

All items in the template (Exhibit D) must be commented on, including those which are not applicable or for which you have nothing to report (by N/A or NONE). No headlines/areas should be deleted from the report template. If applicable, please make sure to specify the amount and currency and if deviation is positive or negative.

The ISA 805 statement (part of Exhibit D) should, if necessary, be modified with explanations on why you have made modifications. If it is anticipated that a qualification will be required to the ISA 805 statement of the Country Office, the Country Manager, as well as the Team Leader Finance and Internal control at Forum Syd Stockholm and Cecilia Luther at PwC Stockholm, must be notified at once. Every effort should be made to discuss the matter leading to the qualification at an early stage so that attempts can be made to resolve the problem.

The report must be discussed with local management before submission. The report shall include a Management Response from local management at the Country Office.

4.5.2 Audit in Subsequent Links (Exhibit E)

For all grants there shall be an unbroken chain of reports and associated audit certificates up to and including the final organization in receipt of the grant. Audit in subsequent links must be reported upon completion of the audit, but not later than February 22nd. The main issues that you as auditor of a Country Office shall ensure is that the Forum Syd Country Office has routines ensuring:

• That the auditors auditing the local organizations have the proper qualifications.

• That all agreements with local auditors refer to the right terms of reference (i.e. the Forum Syd templates have been used for the audit agreements).

• That required financial report with associated audit certificates and audit reports are submitted from the local organizations as requested in the agreements.



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Forum Syd Country Offices have to complete a special form headed “Specifications of Contributions to partners” (example, see Exhibit E). This form has been issued to ensure an easier way to keep track of contributions paid out to the local organizations. You should audit the “Specifications of Contributions to partners” regarding amounts (column F to J).

Local management should provide you with information and copies of the Audit Memorandums / Management Letters and ISA 805 statements regarding the audit in subsequent links. Apart from your audit of the local office’s internal control regarding performed audits in all subsequent links, please do also indicate in “Specifications of Contributions to partners” if the local office has received Audit Memorandums and ISA 805 statements regarding the grant for 2018. Also state if the ISA 805 statements were qualified or not.

Please also write a summary of significant internal control issues that you have observed when reading samples of Management Letters from projects.

In your Audit Memorandum, please summarize reporting points from the Audit Memorandums received by the local office from auditors in subsequent links. Also include the local management’s response to the issues, i.e. it should be stated what actions the local office has done to solve the issues.

If the Audit Memorandum and ISA 805 statement have not yet been received for 2018, please state if it has been received for 2016 (and if it was qualified or not). The deadline of submission of reporting to PwC Sweden and Forum Syd Head Office must be respected. If not all local partners have submitted their Audit Memorandums and ISA 805 on time, you will indicate this in “Specifications of Contributions to partners” and in the Audit Memorandum and complement the reporting when all partner reports have been reviewed.

PwC Stockholm and Forum Syd also want to point out that you might be asked to do complementary work on audit in subsequent links. If you are asked to, this work will probably be done in April or May. The work will include a follow-up whether Audit Memorandums and ISA 805 statement for 2018 which were not received when you reported your year-end audit, have been received later. If this complementary work is needed regarding the Country Office you are auditing, you will be contacted by Forum Syd. Forum Syd will sign a specific Letter of Engagement with you for this complementary work.

4.5.3 Representation letter signed by local management (Exhibit F)

We obtain relevant written representations from management of the component as evidence to support the auditors' report on the financial information for group reporting purposes, in addition to any subsequent representation related to a local audit requirement.

You are to send us a copy of the written representations obtained from country office management by February 22nd. It must be dated within seven days from the same date as you will sign the ISA 805 statement (Exhibit F). If your national laws and regulations do not permit this work paper to be shared internationally with us, please contact the group engagement team to discuss.

A copy of the approved representation letter format is included in Exhibit F.



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The representation letter is to be tailored as necessary for specific transactions or circumstances encountered during the local audit for which management representation would be appropriate.

4.6 Subsequent events review (Exhibit G)

When performing the audit of the financial information of a country office for purposes of the audit of the group financial statements, you are to perform subsequent event procedures designed to identify events at the country office that occur between the date of the financial information of the component and April 12th and that may require an adjustment to, or a disclosure in, group financial statements.

You are to complete Exhibit G (Subsequent Events Memorandum - Audit) even if no subsequent events were identified that may require an adjustment to, or a disclosure in, the Group financial statements.

5. Sensitive Matters

If you believe or suspect that illegal or improper acts, fraud or other "sensitive" transactions in violation of the organization’s policy may have occurred, you should immediately contact a member of the central audit team at PwC Stockholm. No additional investigative procedures in connection with such matters should be undertaken prior to such contact.

6. Feedback

We welcome observations on the Group Audit Instructions for inclusion in next year’s audit instructions. This information may be used in future audit planning to provide management and those charged with governance of the Group with an understanding of our continuous efforts to provide them and their affiliates with our high level of service

Interested and qualified applicants should deliver their application including a cover letter with phone number and email address, Technical and Financial Proposals and the contact details of three (3) professional references (one of which must be the current or last client) to the below address: Online: [email protected] Applications can also be addressed and delivered in hard copies to:

Flemming H. Nielsen Country Manager Forum Syd Liberia LPMC Road, Gbarnga, Bong. Liberia

Deadline for receiving application is 24th November 2019. Kindly observe that we do not accommodate prior calls – as we consider this canvassing.


audit instructions forum syd 2018 for local auditors · 2019. 11. 14. · forum syd audit...

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