Expression of Interest (EOI) for Independent Audit Services

Expression of Interest (EOI) 

for

Independent Audit Services

Statutory Audit for FY 2082/83

Published Date: 2083/04/05 B.S.

Background: 

Integrated Rural Development Society (IRDS), Bardibas was legally registered as an NGO in June 1994 at Bardibas Municipality-01, Mahottari, Madhesh Province, Nepal. The organization has been working to uplift the living status of women, Dalits, Indigenous, children, and other discriminated people of rural communities and improve their socio-economic and health conditions by proper mobilization of local resources with community participation.

IRDS, Mahottari has been implementing different projects in Madhesh province since its establishment. It is necessary to complete the audit after FY completion. Hence, IRDS, Mahottari invites applications from independent audit forms to conduct the statutory audit for FY 2082/83 BS. The details of services/ ToR are as follows: 

2. Objectives of the Audit:

The objectives of the audit are to provide reasonable assurance that all transactions incurred in the current fiscal year are in accordance with the relevant policies of IRDS organization, comply with funding agencies' requirements, and conform to the Government of Nepal’s laws, rules, and regulations. The audit should produce a report as per Nepal Accounting Standards (NAS).

• Ensure compliance with Nepali Accounting Standards and legal requirements.
• Evaluate the accuracy and completeness of financial statements.
• Assess the effectiveness of internal controls.
• Provide an opinion on the financial statements.
• Identify areas of improvement and provide recommendations.

2. Scope of Services:

• Conduct a statutory audit for FY 2082/83 BS (2025/26 AD) and individual project audits within the agreement period.
• Adhere to nationally accepted auditing standards and comply with directives from funding agencies.
• Audit all operations at IRDS Mahottari.
• Verify adherence to relevant laws and regulations, examine quantitative and qualitative program reports, and assess compliance with external and internal requirements. Review management policies and directives to ensure regulatory standards are met and identify any compliance gaps.
• Assess internal controls and risk management systems.
• Submit a draft annual statutory audit report to the IRDS office as soon as complete the given tasks of signing the contract and sharing the draft report with the IRDS Board, Admin and Finance, Supply Chain, Project Leaders, and so on.
• Provide detailed observations on the draft audit report to management, followed by a presentation on each audit observation and its implications.
• The final statutory audit report package should include:
  • Certified financial statements
  • Cash positions and details of assets/equipment
  • Auditor's opinion
  • Management letter detailing internal control shortcomings, audit procedures, and relevant recommendations
  • Special reports if required
  • Assist in income filing with the Tax Office.

4. Audit Methodology

To present a true and fair view of the financial statements/reports, the auditor shall conduct accuracy checks, observations, inspection of records and documents, interviews with beneficiaries, inquiries, analysis, recommendations, and comparisons, including:

• Visit the IRDS office to review vouchers, invoices, and all supporting documents for all expenses and income receipts.
• Follow up on previous audit reports and comments.
• Review staff, rental, and other relevant contracts.
• Assess payroll and tax adherence.
• Evaluate policies and compliance for beneficiaries.
• Inspect all inventory and asset lists of IRDS.

5. Criteria for Auditor Selection

Prospective audit firms/engagement partners must meet the following criteria:

• Must be a Chartered Accountant and registered member with the Institute of Chartered Accountants of Nepal.
• Be completely impartial and independent from IRDS Mahottari’s management or financial interests.
• Should not have any employment, directorship, financial, or close business relationships with senior management during the audit period.
• Must be experienced in applying all relevant auditing standards.
• Should have an audit team with adequate professional qualifications and experience.
• Must have at least 5 years of experience auditing entities of similar size and complexity.
• Experience in auditing NGOs/INGOs or similar organizations is required.
• Provide resumes of key audit team members, including details of significant and relevant assignments and experiences.
• Preferably, the audit team should have extensive knowledge of current government requirements and SWC rules and regulations.
• Auditor will be selected as per lowest bidding cost.
• Profile of the consultancy firm, including relevant experience of at least 3 years.
• Certificate of Practice (COP) with current renewal.
• Firm Registration Certificate with the Institute of Chartered Accountants of Nepal (ICAN).
• Company registration certificate and VAT registration certificate.
• Latest tax clearance certificate.
• Financial proposal with validity, inclusive of VAT (Travel, Food and Accommodation Cost should be borne by the Auditor)

6. Independent Auditors Qualification

Interested audit firms should submit the following:

• Profile of the consultancy firm, including relevant experience.
• Certificate of Practice (COP) with current renewal.
• Firm Registration Certificate with the Institute of Chartered Accountants of Nepal (ICAN).
• VAT registration certificate.
• Latest tax clearance certificate.
• Detailed information about the proposed audit team, including qualifications and work experience.
• Price proposal with validity, inclusive of VAT.

7. Tentative Time frame

The audit should cover locally incurred costs related to the time frame of July 17, 2025, to July 16, 2026. This audit assignment is scheduled to start on August 10, 2026, covering 30 actual working days. This time frame accounts for public holidays, weekends, waiting for management responses, and other contingencies. It also includes the preparation of the management letter, the debriefing meeting, and the final report submission.

8. Access to Facilities and Documents

The financial systems are partly automated in Manual and software systems.

The auditor will have complete access at any time to all records and documents (including books of account, legal agreements, minutes of committee meetings, bank records, invoices, and contracts, etc.) and all employees of the entity.

The auditor will have a right of access to banks and depositories, consultants, contractors, and other persons or firms engaged by the program management over the period under audit review.

These Terms of Reference are intended to guide the statutory audit process and ensure its effectiveness and integrity. Both parties shall adhere to these terms and work collaboratively to achieve the objectives of the audit FY- 2082/083.

9. Evaluation Guideline:

The total weightage of 100% should be divided as 70% for technical evaluation and 30% for financial evaluation.

Criteria of Technical Evaluation

Application Submission Procedures:

Interested Audit Firms are requested to submit their Technical and Financial Proposal along with the above document to the address below no later than 5 PM of Shrwan 12, 2082 (July 28, 2026) or submit to email ID: procurement.irds@gmail.com 

IRDS Mahottari reserves the right to reject any submission without mentioning the reasons whatsoever. Any attempt to exert influence will result in automatic disqualification.

Attached Link:

EOI Notice 

Consultancy Proposal Form