External Audit for Project

Project Name: TEACH

Entity subject to Audit: ADRA Lebanon

Country: Lebanon

Starting date of the Audit: October 3,2023 

Ending date of the Audit: October 12, 2023 

Approximate Number of Vouchers: 350

1. The Auditors’ primary task is to verify the expenditure of EM22-002 project funds to
ensure that expenditure is supported by appropriate documentary evidence, that is in
compliance with the EM22-002 Grant Agreement and the ADRA Sweden and ADRA
International Project Implementation Contract:
· Verification that relevant financial procedures are suitable designed and operating
effectively
· Verification of sound financial management and accuracy of bookkeeping on the basis of
original vouchers
· Verification that the financial statements provide a true picture of the project’s finances
· Verification of plausibility of expense items
· Verification that the use of funds is in accordance with the objectives and results as
outlined in the project proposal
· Verification of compliance of expenses with budget items
· Verification that the relevant procedures have been applied following the agreement with
ADRA International

· Verification of stamping of original voucher.
2. The Auditor must seek evidence on a sample basis and in accordance with the
principles of legality and regularity.
3. Where expenditure is not supported by sufficient documentary evidence, or where it is
not properly incurred, the Auditor has no discretion; he must report the matter and the
amounts as a proposed disallowance. The subsequent decision as to whether to issue a
recovery order is one made by ADRA International and ADRA Sweden after considering all
known facts/mitigating circumstances leading to the provisional disallowance as reported
by the auditor. The Auditor plays no part in the decision on whether to issue a recovery
order.

Scope of Work and Reporting
1. The Audit will be performed at ADRA Lebanon Office. The Auditor should confirm the
location(s) for the Audit with the Entity prior to the start of the Audit and ensure that
relevant supporting documents as well as key staff will be available during the Audit.
2. The audit shall be carried out in accordance with the standards specified in these
terms of reference and shall include such tests and verification procedures as the Auditors
consider necessary under the circumstances and:
·         ISA 800 (Revised), Special Considerations – Audits of Financial Statements Prepared
in Accordance with Special Purpose Frameworks and ISA 805 (Revised), Special
Considerations–Audits of Single Financial Statements and Specific Elements, Accounts or
Items of a Financial Statement.
·         In accordance with the International Standard on Related Services (‘ISRS’) 4400
Engagements to perform Agreed-upon Procedures Regarding Financial Information as
promulgated by the IFAC; in compliance with the Code of Ethics for Professional
Accountants issued by the IFAC. Although ISRS 4400 provides that independence is not a
requirement for agreed-upon procedures engagements, ADRA International requires that
the Auditor also complies with the independence requirements of the Code of Ethics for
Professional Accountants (the IESBA Code) issued by the International Ethics Standards
Board.