TERMS OF REFERENCE FOR THE TENDER FOR AUDIT OF FINANCIAL STATEMENTS
1. Background and Industry Context
UFACO GARMENTS Ltd is a private limited company registered in Rwanda under Company Code 106720779. It operates in accordance with the laws of the Republic of Rwanda, with its principal office located in Gasabo District, Ndera Sector, Masoro Cell, within the Free Economic Zone. Founded in 2017, UFACO GARMENTS Ltd operates nationwide in the garment industry.
The company invites tenders from qualified and experienced audit firms to perform an independent audit of its financial statements for the fiscal year ending 31 December 2024. The audit will ensure compliance and accuracy, aligning with the operational standards of UFACO GARMENTS Ltd, a leading entity in the textile sector.
2. Scope of Work
- Perform an audit of the financial statements in accordance with International Standards on Auditing (ISA).
- Assess compliance with applicable tax laws, regulations, and industry standards, and determine whether tax liabilities are properly recorded and paid on time.
- Evaluate the internal control system related to financial reporting and industry operations, and collect and analyze data to identify potential errors, fraud, or non-compliance.
- Identify and report discrepancies, fraud risks, or significant misstatements.
- Issue an independent audit report with observations, recommendations, and audit opinions.
- Examine financial and information systems to identify gaps.
- Inspect books of accounts and accounting systems, ensuring that accounting procedures, policies, and relevant laws are respected.
- Verify all funds have been used in accordance with the established rules and regulations of UFACO Garments Ltd and only for the purposes for which the funds were provided.
- Verify, through sampling, that personnel records are updated and properly maintained according to internal policy and procedure.
- Complete an asset audit using UFACO’s official list of assets, as well as verify the management of office and teaching supplies.
- Verify appropriate supporting documents, records and books of accounts relating to all activities have been kept.
- Provide comments and observations on the accounting records, procedures, systems, and controls that were examined during the audit.
- Identify specific deficiencies and areas of weakness in systems and controls and make recommendations for improvement.
- Report on the implementation status of recommendations pertaining to previous period audit reports.
- Communicate matters that have come to their attention during the audit which might have a significant impact on the sustainability of the organization.
- Additional assignments will be specified in the contract agreement.
3. Eligibility Criteria
RDB Registrations certificate
- The firm must be registered with the Institute of Certified Public Accountants of Rwanda (ICPAR)
- Minimum of 5 years of experience in auditing various companies, preferably in the textile or manufacturing sector proven by Good completion certificate.
- Availability of a qualified team with forensic audit knowledge and proof of previously conducted forensic audits.
4.Deliverables
- Audited financial statements for the fiscal year ending 31st December 2024.
- Management letter highlighting internal control weaknesses and improvement suggestions.
- Draft and final audit reports.
- Detailed report on Tax advice in accordance with the scope of work.
- Minutes of meetings, summarizing key points of discussion and resolutions.
5.Timeline
- Submission deadline: 13/01/2025
- Preliminary Statutory Financial Statements report by 15/02/2025
- Final Statutory Financial Statements report by 25/02/2025
6. Evaluation Criteria (200 Points)
Proposals that pass the eligibility criteria will be evaluated based on the criteria below:
6.1. Technical Qualifications (60 points):
6.1.1. Audit Methodology and Approach (40 points):
6.1.2. List any audit tools, software, or technologies that will be utilized, and how data will be gathered and analysed. (20 points)
6.2. Qualifications and Expertise of Key Personnel (30 points):
6.2.1. Team members possess relevant certifications (10 points)
6.2.2. Demonstrated expertise in financial auditing and the proposed industry (10 points).
6.2.3. Appropriate allocation of roles and responsibilities among team members (10 points).
6.3. Proposed Timeline and Deliverables (40 points):
6.3.1. Timeline is realistic and efficient, aligning with the expected deadlines (20 points).
6.3.2. Deliverables are well-defined and achievable within the proposed timeline (20 points).
6.4. Relevant Audit Experience (30 points):
6.4.1. Track Record of Similar Audits (10 points):
6.4.2. Demonstrates high-quality work and professionalism through references (10 points).
6.4.3. Provides examples of innovative or value-added approaches used in past audits (10 points).
6.5. Financial Proposal (40 points):
6.5.1. Budget is well-structured, with itemized costs aligned to tasks and deliverables (10 points).
6.5.2. Includes justifications for costs, ensuring transparency (10 points).
6.5.3. Reasonableness of Costs (10 points):
6.5.4. Costs are proportional to the scope and complexity of the audit (10 points).
7. Submission Guidelines
Proposals must include:
- Company profile
- Details of audit team members, including qualifications and experience
- Previous audit experience in manufacturing companies or related sectors
- Proof of previously conducted forensic audits
- Data Controller certificate issued by the Data Protection Office
- Approach and methodology for conducting the audit
N.B: Submissions must be delivered to the UFACO Garments Ltd office at Masoro Industry, near Acquan Plastic Industry, with two copies in a sealed envelope (one original and one copy), no later than the 17th January 2025 at 5:00 PM. For clarification of the location, please email djamila.uwase@ufaco.top and info@ufaco.top
