Clarifications and responses on the RFP No PL/ER/2012/0/025 for audit services
International Renewable Energy Agency (“IRENA”)
List of clarification questions – RFP for audit
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We were the auditors of IRENA in its first period of operations (2009). Could you please
confirm us as to who audited the financial statements for the subsequent years (2010 and
2011)? Office of the Auditor General of Norway. What are the reasons for the change /
RFP? Statutes of the agency Article XII para C guide the engagement of external
auditor. To provide us with a better idea of the scope will it be possible to sight the 2011
audited financial statements for the Agency and the Staff Provident Fund (SPF)? The
statements are attached.
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If the above information cannot be made available, we would appreciate if you could
highlight the key items and their magnitude that we could expect to see in the financial
statements of SPF for the year and as at 31 December 2012. Also need other
financial/operational information, including budgeted numbers for 2012 for the SPF (net
assets under management: USD 1.8m) and the following 3 years in respect of both the Agency
(2012 budget: USD 28.4m; max expected annual growth: about 10%) and the SPF (expected net
assets growth each year: USD 1m), to assess the quantum of work and the time required.
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Appointment for a period of 4 years. Is there a likelihood of a significant change in the nature
and volume of operations over the period? No major changes expected.
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The financial statements of SPF are prepared under IPSAS or IFRS? IAS 26, please refer to
attached FS.
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As per the information in data sheet, we are required to restrict the Company profile information
should be restricted to 30 pages. We understand that the following documents required, would not be
included within this limit of 30 pages. Can you please confirm if our understanding is correct? Yes
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a) power of attorney;
b) certificate of registration and municipality licenses;
CV’s of the proposed employees to conduct the audit; and
Proposed structure of the audit report and the management report
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We note that point 33 on page 15 of the RFP, states that “within fifteen (15) days from the date of
receipt of the Contract, the successful proposer shall sign and date the contract and return it to
IRENA”, however the RFP does not contain the proposed form of the Contract. Please let us know if,
as is usual for audit engagements, the auditors’ standard engagement letter can be used as the
Contract? If required, we can include the template thereon as part of our proposal. IRENA’s template
for contract for professional services shall be used.
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We note that you have requested us to perform the work as per International Standards on Auditing
(“ISA”), however the form of audit report set out in the terms of reference requires us to report on
certain matters additional to those in the ISA such as an opinion on the “summary assessment of the
efficiency of the management and internal control system”.
However, we would like to highlight that, as per the ISA, the procedures we are required perform are
based on our judgment, including the assessment of the risks of material misstatement of the financial
statements. In making those risk assessments, we consider internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures, but
not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
The exceptions noted by us in the internal controls, along with the recommendations and the
management comments, are generally covered by us in our management letters and not as part of the
audit opinion. We will include in our proposal the structure and format of the proposed audit opinion
as set out in ISA 700. Is this acceptable? The output of the audit work is the audit report and the
management letter. Our membership (Member States) requested that a summary statement on
the internal controls is present on the audit report.
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In case the responses have already been provided to queries by any of the other bidders, then in
accordance with para 1 on page 15, can we have access to the responses provided?
These are available on our website, under procurement notices.