Position Summary:
The Internal Audit Officer will be responsible for independently evaluating the adequacy and effectiveness of the organization's internal control systems, financial management practices, operational procedures, and compliance with organizational policies and donor requirements.
The successful candidate will conduct risk-based internal audits, review financial and operational transactions, assess compliance, identify control weaknesses, investigate irregularities where authorized, and provide practical recommendations to management for improving organizational performance, accountability, and transparency.
Key Duties and Responsibilities
A. Financial Auditing and Internal Controls
- Conduct regular and risk-based audits of financial transactions, accounting records, supporting documentation, and financial reports.
- Review payment vouchers, cash receipts, bank transactions, payroll, procurement payments, advances, and other financial activities.
- Examine bank reconciliations, cash reconciliations, accounts payable, accounts receivable, and advances to staff and suppliers.
- Assess the accuracy, completeness, and reliability of financial records and accounting information.
- Evaluate the effectiveness of internal controls and recommend improvements where necessary.
- Review the organization's monthly, quarterly, and annual financial reporting processes.
B. Compliance and Donor Requirements
- Ensure compliance with organizational financial policies, procedures, and administrative regulations.
- Review compliance with donor agreements, approved budgets, and donor-specific financial requirements.
- Verify that expenditures are properly authorized, budgeted, documented, and recorded.
- Review procurement processes to ensure transparency, competitiveness, proper authorization, and compliance with procurement policies.
- Assess compliance with applicable Afghan laws, regulations, and relevant NGO requirements.
C. Operational and Project Auditing
- Conduct operational audits of field offices, project activities, and organizational departments.
- Review project expenditures against approved budgets and work plans.
- Verify the existence, utilization, and proper recording of organizational assets and inventory.
- Conduct physical verification of cash, fixed assets, inventory, and other organizational resources.
- Assess whether resources are being utilized efficiently, economically, and for their intended purposes.
- Review supporting documentation relating to project implementation and operational activities.
D. Risk Assessment and Fraud Prevention
- Identify potential financial, operational, and compliance risks.
- Assess the risk of fraud, misappropriation of funds, conflicts of interest, and financial irregularities.
- Evaluate the adequacy of existing mechanisms for preventing and detecting fraud.
- Report suspected irregularities through appropriate organizational reporting channels.
- Recommend corrective and preventive measures to minimize organizational risks.
E. Audit Reporting and Follow-up
- Prepare comprehensive internal audit reports highlighting audit findings, identified weaknesses, associated risks, and practical recommendations.
- Discuss audit findings with relevant department heads and management.
- Assign risk ratings to audit findings, such as High, Medium, and Low.
- Monitor the implementation of agreed corrective actions.
- Maintain proper audit working papers, supporting evidence, and audit documentation.
- Prepare periodic internal audit updates for senior management and the Board/Audit Committee.
F. Reporting and Coordination
· The Internal Audit Officer or will report to the Executive Director and/or the Board of Directors or Audit Committee, in accordance with the organization's approved governance and reporting structure.
· The position holder will coordinate with Finance, Administration, Procurement, Human Resources, and Program Departments while maintaining the required level of independence and objectivity
1. Independence and Professional Ethics
The Internal Audit Officer must maintain independence and objectivity while performing assigned responsibilities.
The position holder shall have unrestricted access, subject to applicable confidentiality and security requirements, to relevant financial records, accounting systems, supporting documents, organizational assets, and personnel necessary to perform audit assignments.
The Internal Audit Officer must not be directly involved in preparing accounting records, authorizing payments, processing financial transactions, or managing activities that may subsequently fall under their audit responsibilities.
All audit findings and reports must be presented objectively and confidentially through the established reporting structure.
2. Key Deliverables
The successful candidate will be expected to produce the following deliverables:
- Annual Risk-Based Internal Audit Plan.
- Periodic internal audit reports.
- Financial and operational audit findings and recommendations.
- Internal control assessment reports.
- Compliance review reports covering donor and organizational requirements.
- Fraud risk assessment and recommendations, where required.
- Audit follow-up and corrective action monitoring reports.
- Annual summary report on the effectiveness of internal controls and risk management.
3. Performance Evaluation Criteria
The performance of the Internal Audit Officer will be assessed based on:
- Timely completion of the approved internal audit plan.
- Quality, accuracy, and objectivity of audit reports.
- Effectiveness in identifying financial and operational control weaknesses.
- Practicality and relevance of audit recommendations.
- Follow-up on the implementation of corrective actions.
- Compliance with professional auditing standards and ethical requirements.
Maintenance of independence, confidentiality, and professional integrity.
