Terms of Reference (ToR) for External Auditor, Garowe, Puntland, Somalia

Terms of Reference (ToR) for External Auditor

DreamPoint Enterprise Company

Garowe, Puntland, Somalia

1. Introduction

DreamPoint Enterprise Company, a leading business entity located in Garowe, Puntland, Somalia, encompasses a diverse portfolio including a Hotel, Restaurants and Cafeteria, Supermarket, and Rentals. To ensure transparency, regulatory compliance, and the integrity of our financial statements, we seek to appoint an External Auditor for the fiscal years 2022 and 2023.

2. Objective

The primary objective of this external audit is to provide an independent and objective assessment of the financial statements of DreamPoint Enterprise Company, ensuring accuracy, compliance with applicable accounting standards, and fair presentation of the company’s financial position and performance.

3. Scope of Work

The External Auditor will be responsible for

Financial Audit: Examine the financial statements of DreamPoint Enterprise Company to ensure they are free from material misstatement, whether due to fraud or error. This includes reviewing the balance sheet, income statement, statement of cash flows, and statement of changes in equity.

Compliance Audit: Assess compliance with legal and regulatory requirements applicable to the company’s operations, including but not limited to tax laws, employment laws, and sector-specific regulations.

Internal Controls Evaluation: Evaluate the effectiveness of the company’s internal controls over financial reporting and identify any weaknesses or areas for improvement.

Risk Assessment: Conduct a risk assessment of the company’s financial and operational processes, focusing on areas prone to fraud, inefficiency, or non-compliance.

HR and Operations Audit: Specifically, audit the Human Resources and Operations departments to ensure compliance with labor laws, effective recruitment and training processes, payroll accuracy, operational efficiency, and the effectiveness of management practices.

Sector-Specific Audits: Given the diverse nature of DreamPoint Enterprise Company’s operations, conduct specialized audits for each business unit (Hotel, Restaurants and Cafeteria, Supermarket, Rentals) to assess their specific compliance, operational efficiency, and financial reporting.

4. Methodology

The External Auditor is expected to use internationally recognized auditing standards, such as the International Standards on Auditing (ISAs), to conduct the audit. The audit process will include, but not be limited to, examination of financial records, physical verification of assets, interviews with staff, and testing of transaction processes.

5. Deliverables

The External Auditor shall provide:

An Audit Plan: To be submitted within two weeks of appointment, detailing the audit’s scope, approach, and timeline.

Interim Reports: If applicable, based on findings during the audit process.

A Draft Audit Report: For review by DreamPoint Enterprise Company’s management, detailing findings, implications, and recommendations.

A Final Audit Report: Including an opinion on the financial statements, observations on internal controls, compliance, and any other matters of significance identified during the audit.

6. Timeframe

The audit is to commence on February 20, 2024, with the final audit report to be submitted no later than March 10, 2024.

7. Auditor Qualifications

The External Auditor should be a certified public accountant (CPA) or a firm with significant experience in auditing companies in the hospitality, retail, and rental sectors. The auditor must have a valid license to practice in Somalia or possess international accreditation recognized in Somalia.

How to apply

8. Proposal Submission

Interested auditors or audit firms are invited to submit their proposals, including a detailed work plan, methodology, team composition, and financial quote to Info@dreampointhotel.com. or bring in sealed envelop at the hotel reception by 8:00am to 4:30pn by latest February 15, 2024.

For further please contact 0905414452.

9. Evaluation and Selection

Proposals will be evaluated based on the auditor’s experience, approach to the audit, cost, and the proposed timeline. DreamPoint Enterprise Company reserves the right to accept or reject any proposal without providing reasons.

10. Confidentiality

All findings, reports, and documents related to this audit will be treated as confidential and will be used solely for the purpose intended under this engagement.