IE Network Solutions PLC invites qualified firms to submit proposals for annual and 9-month interim audit services, as well as asset valuation services.

TERM OF REFERENCE (TOR)
For External Audit (Annual & 9 Month Interim) and Asset Valuation Services IE Network Solutions PLC

1. Background

IE Network Solutions PLC is an Ethiopian IT company established in December 2008. The company specializes in enterprise solutions, including network services, business automation, smart infrastructure, and cloud services. The company emphasizes a value-maximizing and service-oriented approach, aiming to be a leading IT provider in Ethiopia. IE Network Solutions PLC maintains partnerships with global companies such as Dell, IBM, and Cisco, enabling delivery of international-standard products and services.

The Company prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) and applicable Ethiopian laws and regulations. The fiscal year runs from Hamle 1 to Sene 30.

IE Network Solutions PLC intends to engage a qualified and independent firm to provide:

· Annual Audit

· 9-Month Interim Audit Services 

· Asset Valuation Services 

The assignment shall comply with Ethiopian regulatory frameworks, including directives of the Accounting and Auditing Board of Ethiopia (AABE), Ministry of Finance, and relevant tax proclamations.

2. Objectives of the Assignment

The assignment aims to proactively identify and address financial, control, and compliance gaps highlighted through regulatory and internal reviews, and to ensure that the Company’s financial statements and asset base are accurate, complete, and aligned with IFRS prior to year-end

2.1 Interim Audit Objectives

· To express an independent professional opinion on whether the financial statements present a true and fair view in accordance with IFRS and Ethiopian regulations

· To perform a 9-month interim audit/review of financial statements

· To assess the accuracy and reliability of financial information

· To evaluate the effectiveness of internal control systems

· To identify risks, gaps, and areas requiring corrective action before year-end

· To ensure compliance with applicable Ethiopian laws and IFRS

2.2 Asset Valuation Objectives

· To determine the fair value, replacement cost, and/or market value of the Company’s assets

· To ensure compliance with IFRS and Ethiopian tax regulations, including Income Tax Proclamation No. 979/2016 

· To support accurate financial reporting and audit processes

· To align asset records with accounting and tax requirements

3. Scope of Work

3.1 Interim Audit Scope (9-Month)

The interim audit shall be conducted in accordance with International Standards on Auditing (ISA) and will include:

· Review of financial performance for the first 9 months

· Analytical procedures and limited audit testing

· Assessment of internal control systems

· Identification of high-risk areas and control weaknesses

· Verification of selected transactions and balances

· Identification and quantification of misstatements requiring adjustment prior to year-end

· Review of issues similar to those raised in regulatory/government audits and validation of corrective actions

· Prioritized action plan to address control weaknesses and compliance gaps before annual audit

3.2 Annual External Audit

Examination of financial statements including:

· Statement of Financial Position

· Statement of Profit or Loss and Comprehensive Income

· Statement of Changes in Equity

· Statement of Cash Flows

· Review of:

o Accounting records and supporting documents

o Compliance with internal policies and procedures

o Procurement and expense management practices

o Compliance with Ethiopian laws (tax, pension, labor, etc.)

· Assessment of fraud risks and irregularities

3.3 Asset Valuation Scope

A. Asset Verification and Identification

· Review and validate fixed asset register

· Conduct physical verification of assets

· Identify obsolete, idle, or impaired assets

B. Asset Classification

· Categorize assets per Ethiopian tax classifications

· Align with depreciation categories under tax laws

C. Valuation Methodologies

Apply appropriate valuation approaches:

· Cost Approach (replacement cost less depreciation)

· Market Approach (based on Ethiopian market comparable)

· Income Approach (where applicable)

D. Tax and Depreciation Review

· Assess compliance with Income Tax Proclamation No. 979/2016 

· Review capital allowances and depreciation methods

· Identify differences between accounting and tax treatments

E. Useful Life and Impairment

· Assess asset condition and remaining useful life

· Identify impairment indicators in line with IFRS

F. Reconciliation

· Reconcile valuation results with:

o Fixed asset register

o General ledger

o Tax schedules

G. Compliance Review

· Ensure compliance with:

o AABE requirements

o Ministry of Finance directives

o VAT and customs regulations

4. Deliverables

4.1 Interim Audit Deliverables

· Annual Audit Report including audit opinion

· 9-Month Interim Audit Report including:

o Key findings and risk areas

o Internal control weaknesses

o Compliance gaps

o Recommendations

· Management Letter including:

o Detailed observations

o Actionable recommendations with timeline before year end

o Status of prior findings (if applicable)

4.2 Asset Valuation Deliverables

· Inception Report (methodology & work plan)

· Verified and Updated Asset Register

· Detailed Asset Valuation Report including:

o Valuation methodology and assumptions

o Asset-level valuation details

o Reconciliation statements

o Tax vs accounting differences

o Impairment analysis

· Management Report on asset management gaps

· Presentation to management

5. Standards and Regulatory Framework

The assignment shall comply with:

· International Financial Reporting Standards (IFRS)

· International Standards on Auditing (ISA)

· Ethiopian Financial Reporting and Accounting Directives

· Income Tax Proclamation No. 979/2016

· AABE and Ministry of Finance regulations

6. Responsibilities

6.1 Management Responsibilities

· Preparation of financial information

· Provision of all required documents and access

· Maintenance of internal control systems

6.2 Consultant/Auditor Responsibilities

· Conduct Annual and interim audit and valuation independently

· Provide professional findings and recommendations

· Maintain confidentiality and objectivity

7. Duration and Timeline

· The Valuation assignment shall be completed within 4 -5 weeks

· Interim audit shall be completed within 2 -3 weeks

8. Reporting Requirements

· Reporting to Finance manager

· Regular progress updates

· Submission of draft and final reports within agreed timelines

9. Qualification and Experience Requirements

The firm must:

· Be registered with the Accounting and Auditing Board of Ethiopia (AABE) 

· Have proven experience in:

o Interim audits

o Asset valuation in Ethiopia

· Demonstrate strong knowledge of:

o IFRS and ISA

o Ethiopian tax laws and regulations

Team Composition

· Audit Manager ACCA

· Senior Auditor

· Junior Auditor

· Valuation Experts (engineering/accounting/valuation background)

10. Confidentiality

All information obtained shall remain confidential and used solely for this assignment in accordance with Ethiopian laws.

11. Independence & Objectivity

The firm must demonstrate how independence, objectivity, and professional integrity will be maintained when providing both audit and asset valuation services under this assignment.

The firm shall disclose any actual or potential conflicts of interest and outline safeguards to mitigate such risks in accordance with applicable professional standards.

12. Client Responsibilities

The Company will provide:

· Financial records and reports

· Fixed asset register and supporting documents

· Tax schedules

· Access to locations and personnel

13. Letter of Engagement

A formal engagement letter will be signed prior to commencement of the assignment.

14. Proposal Submission

Interested and qualified firms are invited to submit separate technical and financial proposals before the specified deadline.

Submission Deadline Date : May 08, 2026

IE Network Solutions PLC
Haya Hulet, Festival 22 Building, 7th Floor
Addis Ababa, Ethiopia
Tel: +251-115-57-0544
Email: Info@ienetworksolutions.com 

Tender details

• Deadline: 2026-05-08
• Bid closing time: 17:00
• Bid opening: 2026-05-08 17:00
• Bid opening (note): No Specific Opening Date and Time
• Region: Addis Ababa
• Publishing entity: IE Network Solutions PLC
• Published: Apr 23, 2026
• Posted at: 2026-04-23T11:29:04.000Z