USAID AGENCY CONTRACTED AUDIT PROCESS

The process is designed to ensure the integrity and effectiveness of audits conducted by independent auditors. The process involves several key steps, commencing with the approval of an Audit Statement of Work by the Regional Inspector General (RIG) office in Pretoria. The audit process begins with the USAID Mission sending out a Request for Quotation (RFQ) to independent auditors, including Supreme Audit Institutions (SAIs), from a list of approved audit firms maintained by RIG/Pretoria. The quotations received are evaluated by a USAID Mission panel, and a firm is selected. The selected auditor submits an Audit Plan or Audit Program to RIG/Pretoria for approval, which is then reviewed and approved. The auditors conduct an Entrance Conference with the recipient, during which they discuss the audit objectives and scope. The auditors then begin their fieldwork, discussing matters or issues identified with management and staff of the recipient. RIG/Pretoria may conduct a review of the auditor's working papers during this phase. Upon completion of fieldwork, the auditors hold an end-of-field work meeting with the recipient to summarize open findings and provide an opportunity for management to provide missing documentation or support. The auditors then prepare a draft audit report, which is submitted to RIG/Pretoria for review. RIG/Pretoria performs a desk review of the draft report and submits comments to the auditors to correct or revise the report, if necessary. The revised draft report is submitted to RIG/Pretoria for approval, and upon approval, the auditors distribute the approved draft report to the USAID Mission and recipient. An Exit Conference is held to discuss the audit process, and the recipient is given a reasonable time to provide written comments or responses to each of the findings in the draft report. The auditors evaluate and incorporate the recipient's management comments or responses verbatim in the draft report. The draft report, incorporating the recipient's management comments, is submitted to RIG/Pretoria for approval. Upon approval, the auditors finalize the report, sign and date it, and submit copies to the USAID Mission. The USAID Mission submits signed electronic or hard copies of the finalized report to RIG/Pretoria for issuance. RIG/Pretoria then issues the final report, marking the completion of the Agency Contracted Audit process.