(ToR) FOR THE PROVISION OF EXTERNAL STATUTORY AUDIT SERVICES

TERMS OF REFERENCE (ToR)

FOR THE PROVISION OF EXTERNAL STATUTORY AUDIT SERVICES

Fiscal Year 2018 E.C.

Background

MERQ Consultancy PLC is an Ethiopian consulting firm dedicated to generating evidence, strengthening health and governance systems, and delivering research, monitoring, evaluation, and capacity-building services. MERQ works extensively with a diverse range of partners, including multilateral agencies, international and national non-governmental organizations (NGOs), government entities, and private sector clients.

MERQ Consultancy PLC invites qualified and licensed external audit firms registered with the Accounting and Auditing Board of Ethiopia (AABE) to submit technical and financial proposals for performing the Annual Statutory Financial Audit for the 2018 Ethiopian Fiscal Year (2018 E.C.).

General Objective of the Assignment

The primary objective of this assignment is for an independent external auditor to express a professional opinion on the financial statements of MERQ Consultancy PLC for the 2018 E.C. fiscal year. The audit will ensure that the financial statements present a true and fair view of the company’s financial position and that the company is operating in compliance with applicable national accounting standards and Ethiopian statutory and tax regulations.

Scope of the Audit

The statutory audit will be conducted in accordance with International Standards on Auditing (ISA) and the requirements of the Ethiopian Commercial Code. The scope of the audit includes:

• Financial Statement Audit: Review and verification of the company’s annual financial records, statements, and supporting documentation for the 2018 E.C. fiscal year.
• Statutory Compliance: Ensuring adherence to relevant Ethiopian tax laws and corporate regulatory requirements.
• Internal Control Assessment: Providing a high-level review of the company’s internal accounting controls and financial management systems to identify areas for improvement.

Expected Deliverables

Upon completion of the audit, the selected firm will be expected to deliver:

1. Independent Auditor’s Report containing the professional opinion on the financial statements for 2018 E.C.
2. Management Letter outlining any significant observations regarding internal controls, operational procedures, or compliance, along with practical recommendations for management.