Terms of Reference (TOR) for the Internal Auditors
Background:
Centre for People & Environ (CPE) A hub for scientists, researchers, professionals, academicians, and people to work for sustainable development. The organization provides research and capacity-building services, science-policy integration at local, regional, and national levels. It also operates Deshozo Bazar and Rest & Nest as sister concerns since 2019.
The Scope of this audit is:
The internal audit will cover the period from July 01, 2024, to June 30, 2025, conducted biannually. The audit will focus on the following areas:
- Control environment
- Procurement and consultancy contract management
- Cash & Bank management
- Project management
- Fund Management
- Review of Financial Statements
Detailed Statement of Work (SoW)
I.Control environment
The control environment serves as the cornerstone for establishing and operating an effective internal control system within an organization, aiming to (1) achieve its strategic objectives, (2) provide reliable financial reporting to internal and external stakeholders, (3) conduct business operations efficiently and effectively, (4) adhere to all applicable laws and regulations, and (5) safeguard assets.
Carefully formulated policies and procedures act as a vital link between top-level management and lower-level management, ensuring that directives from top-level management are adhered to, and employees work ethically in alignment with the organization’s core values.
‘The Auditor’ will undertake the following procedures:
- Obtain an understanding of the organization’s values, missions, policies, and procedures.
- Review the Operating Manual and other policies and manuals in place to identify opportunities for improvement.
- Assess the Delegation of Authority and identify any instances of authority abuse.
- Evaluate the execution of segregation of duties in the transaction process.
- Analyze expenditures against the budget.
- Review Human Resources and Administrative activities.
- Examine the vehicle management policy.
- Verify fixed and petty assets.
- Assess compliance with organizational policies.
- Review compliance with tax and VAT regulations.
II.Procurement and consultancy contract management
In this area, the key risk is that organizational procurement policies may not be followed and procurements and consultancy contracts may not be transparent, efficient, effective, and economic and may not promote healthy competition. There is also a risk of non-compliance with contract terms, potentially rendering transactions uneconomical for the organization.
‘The Auditor’ will perform the following procedures:
- Obtain a comprehensive understanding of the entity’s procurement policy.
- Review the extent to which the procurement policy is followed for appointing vendors/contractors, based on a sample selection.
- Scrutinize the terms and conditions of contracts, comparing them with deliverables on a sample basis.
- Verify that payment vouchers are appropriately stamped as “PAID” to mitigate the risks associated with double payments.
III. Cash & Bank management
‘The Auditor’ will perform the following procedures:
Obtain an understanding of the entities policies and procedures regarding cash & bank management.
- Scrutinize the monthly reconciliation of bank accounts, ensuring that reconciliation statements are appropriately signed and dated.
- Evaluate a sample of cash transactions conducted throughout the year to verify the proper authorization of each transaction.
iv.Project management
‘The Auditor’ will perform the following procedures:
- Examine the revenue and expenditure of project partners on a sample basis.
- Review the project budget and compare the incurred expenditures against it.
- Evaluate adherence to the procurement policy for appointing vendors/contractors, selecting a sample for review.
- Confirm that project partners maintain bank accounts in the name of the Center for People and Environ.
- Verify the funds received by project clients, consumers, etc.
v.Review of fund management
‘The Auditor’ will perform the following procedures:
- Obtain understanding of the nature of funds.
- Comprehend the approval process for funds.
Scrutinize whether established policies have been followed to maintain the fund.
vi.Review of financial statements
‘The Auditor’ will perform the following procedures:
- Obtain an understanding of the financial statements.
- Review the presentation of significant transactions, assessing their reflection of the real substance.
- Obtain an understanding of the transaction recording procedure.
- Examine the six-monthly financial statements.
- Verify that the figures presented in the financial statements align with the related books of account/register.
- Verify 100% of the expense vouchers for projects.
- Evaluate the efficiency of transactions and compare them with the established policy.
Mode of Internal Audit:
- The audit will involve reviewing 100% of expenditures and all relevant supporting documents.
- The auditor will physically verify project fixed assets, inventory, and petty cash for CPE and sister concerns.
Delivery Schedule
The auditor shall submit one copy of the draft management report in Microsoft Word or Excel format to the Director. The draft report is due by 28 February 2026. The final audit report, in five copies, must be delivered by 07 March 2026 with the management report.
Price
The auditor’s proposed price must include detailed information on how it was determined. For example, the proposal should specify:
- The estimated number of hours per staff level.
- Hourly rates for each staff level.
- Total cost by staff level.
Additionally, any out-of-pocket expenses should be clearly indicated. The financial proposal must
be submitted in a separate email.
Payment
Payment will be made upon confirmation by the Center for People and Environ that the work has
been satisfactorily completed. The payment will be divided into two installments:
- 25% will be paid during the signing.
- Upon acceptance of the final audit report with the management report.
Audit Review
All draft audit reports will be reviewed by the Center for People and Environ before finalization to ensure compliance with the terms of the contract and relevant audit guidelines.
Confidentiality
The auditors are required to maintain the confidentiality of all documents, information, or materials directly related to the activity that are classified or deemed confidential.
Right to Reject
The Center for People and Environ reserves the right to reject any or all proposals submitted in
Response to this RFQ.
Submission procedure:
Email: recruitment@cpe-bd.org
Deadline: 31 January 2026.
Please submit a detailed proposal with a cover letter, registration, and government approval documents, and CVs of personnel who will be involved in the project, mentioning the subject line “Audit 2024-2025”.