Terms of Reference: Audit to FinMark Trust accounts for the 20017/18 financial year

FinMark Trust (FMT) is an independent trust established in 2002 with the objective of making markets work for the poor. Initial core funding was provided by UKaid from the Department for International Development (DFID) through its Southern Africa office. Recently additional funders have come on board including the UNCDF, the Bill & Melinda Gates Foundation, the MasterCard Foundation as well as private and public institutions at country level. FinMark Trust’s business is controlled by four trustees from countries in Southern Africa and its purpose is ‘Making financial markets work for the poor, by promoting financial inclusion and regional financial integration’. It does this by conducting research to identify the systemic constraints that prevent financial markets from reaching out to these consumers and by advocating for change on the basis of research findings. Thus, FMT plays a catalytic role, driven by its purpose to start processes of change that ultimately lead to the development of inclusive financial systems that can benefit all consumers. Refer to www.finmark.org.za for more information.

Objectives

  • A detailed risk assessment and accurate audit report according to the latest Generally Accepted Accounting Standards of the FinMark Trust (“FMT”) financial statements, to be obtained.

Scope

  • The auditors to perform a risk assessment prior to commencement of the audit to identify and focus audit effort on the most significant issues affecting FMT’s financial statements.
  • The auditors to have a clear understanding of FMT’s key business processes, overall organisational and management controls, business performance and critical information flows.
  • The auditors to identify and prioritise significant business risks and assess how effectively management systems of internal control, are managing these risks. The auditors to provide management with proactive and constructive feedback on the effectiveness of critical controls, and where applicable, improvements to those controls.
  • Using the results of the risk analysis, the auditors to develop the audit planning in consultation with management. The objective of the planning phase is to ensure that key issues are addressed at the outset. The planning begins with an overall analytical review of the financial position, operating results and financial and operating systems.
  • The auditors to develop detailed audit programs based on the findings of their planning work to ensure that sufficient and appropriate audit evidence is gathered to support their opinion on the accounts.

Click here for full Terms of Reference.