REQUEST FOR EXPRESSION OF INTEREST FOR EXTERNAL AUDIT SERVICE
1. Introduction
East African Lion Brands Manufacturing Share Company (EALBMSC) is a producer of fast-moving consumer goods in Ethiopia with prominent Home Care and Personal Care Products. The company’s mission is to supply products that are leaders in quality, cost and customers satisfaction through the integration of people, technology and processes to maintain a position to be one of the leading FMCG and food processing industries in Ethiopia.
EALBMSC seeks to appoint an independent and reputable external audit firm to conduct the statutory audit of its financial statements for the year June 30, 2024.
2. Objective
The objective of the audit is to express an opinion on the fairness and reliability of the Company's financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), for the year ending June 30, 2024. The audit should also assess the Company's internal control systems and compliance with relevant laws and regulations.
3. Scope of Services
The scope of the audit services will include, but not be limited to:
· Planning and conduct of an audit in accordance with International Standards on Auditing (ISAs) and relevant ethical pronouncements.
· Review of the Company's accounting policies and procedures.
· Examination of the Company's financial statements, including:
· Statement of Profit or Loss
· Statement of Comprehensive Income
· Balance Sheet
· Statement of Cash Flows
· Statement of Changes in Equity
· Disclosures to the Financial Statements.
· Assessment of the adequacy and effectiveness of the Company's internal control systems.
· Testing of significant transactions and balances.
· Reporting on the audit findings in accordance with relevant Standards and required regulations.
4. Qualifications of the Auditor
The audit firm should possess the following qualifications:
· Be a member of a reputable professional accounting body.
· Have significant experience in auditing FMCG companies.
· Have a team of qualified and experienced auditors with expertise in IFRS and relevant industry knowledge.
· Demonstrate a strong commitment to independence and ethical conduct.
· Possess good communication and reporting skills.
5. Fees and Schedule
The audit firm should submit a proposal outlining its fees for the audit services, including the estimated number of personnel and time required. The proposal should also include a proposed audit schedule.
6. Selection Process
EALBMSC will invite proposals from interested and qualified audit firms. Shortlisted firms will be invited to present their proposals to a selection committee. The selection committee will consider the following factors in selecting the auditor:
· Qualifications and experience of the audit firm and its team
· Audit methodology and approach
· Fees and proposed schedule
· References from previous clients
· The auditor should also have experience in auditing companies in FMCG.
7. Reporting and Communication
The auditor will submit a draft audit report to the Company for review and comments. The final audit report will be presented to the Board of Directors and the General Assembly of Shareholders. The auditor will also maintain regular communication with the Company's management throughout the audit process.
8. AABE Audit Firm Grade
EALBMSC is seeking an audit firm that has been graded by the AABE as having the necessary skills and experience to audit a company of our size and complexity.
9. Additional Information
EALBMSC will provide the auditor with all necessary information and documents to complete the audit. The Company will also cooperate with the auditor in all aspects of the audit.
10. Term of Engagement
The initial engagement will be for the audit of the financial statements for the year ending June 30, 2024. The engagement may be renewed for subsequent years subject to satisfactory performance and mutual agreement.
Qualifications of the Auditor
The audit firm should possess the following qualifications:
· Be a member of a reputable professional accounting body.
· Have significant experience in auditing FMCG companies.
· Have a team of qualified and experienced auditors with expertise in IFRS and relevant industry knowledge.
· Demonstrate a strong commitment to independence and ethical conduct.
· Possess good communication and reporting skills.