Terms of Reference for the position of
External Validator (Consultant)
Designing, Development, Training, and Implementation of
Audit Management Information System (AMIS)
Terms of Reference
May 2013
A. BACKGROUND
The Purchaser
1. The purchaser of the Audit Management Information System (AMIS) is Project Director,
Project to Improve Financial Reporting and Auditing (PIFRA). PIFRA is supporting
modernization of accounting, budgeting, and auditing functions at national and subnational levels. Information Technology is a pivotal component of this process. As part
of this initiative, the Office of the Auditor-General of Pakistan (OAGP) seeks to establish
a robust and reliable Audit Management Information System (AMIS) that will not only
ensure timely and accurate reporting of observations but also continuous follow-up on
audit reports.
2. The Auditor-General is appointed under, and draws its mandate from the Constitution of
Pakistan. The reports of the Auditor-General are laid before the Parliament and
reviewed by the Public Accounts Committee at national and sub-national level. The
Auditor-General is independent in determining the nature and scope of its work. The
OAGP facilitates legislative oversight through its work with support from approximately
5,000 personnel including over 1,000 auditors at various Field Audit Offices (FAOs)
across Pakistan. (www.agp.gov.pk)
Project Stakeholders
3. Primary stakeholders of the AMIS initiative are the Auditor General of Pakistan, the
World Bank, Project Management and the Field Audit Offices (FAOs). The World Bank
and Government of Pakistan have identified need for reforms and providing funds for
envisaged changes in the financial management of the country. The AMIS Project
Management is coordinating and facilitating project implementation to achieve planned
outcomes including AMIS. The users, i.e., the officers and staff of the OAGP, are main
stakeholders who will be benefiting from successful and timely completion of the AMIS
project. Within this large group, there are 26 FAOs that carry out audits and prepare
audit reports for the OAGP. The implementation of AMIS project will enhance
effectiveness of the OAGP as it will give this office more control over how audits are
being planned and executed at FAO level. The Auditor General of Pakistan is the main
sponsor of this project.
Business Objectives - OAGP
Page | 1
4. The OAGP is committed to promoting transparency and accountability in governmental
operations. It seeks to bring improvements in financial discipline and internal control
environment within the executive departments through its audits. The OAGP carries out
the following audit activities in accordance with the INTOSAI auditing standards and
international best practices.
i.
Financial Attest provided by the DAGP Pakistan covers a very broad
range of governmental operations and focuses on audit opinion on the
financial statements and the state of internal controls in the audited
entities. There are three tiers of government (Federal, Provincial and
District) and three types of organizations (those on the central accounting
network, self-accounting entities budgeted by the government and public
sector entities). Financial attest is provided at all tiers and for all
categories, except those entities whose accounts are, by law, auditable
by private sector auditors.
ii.
Regularity and Compliance Audits are conducted under roll over
planning for all organizations at all tiers. The focus of these audits is to
review transactions for compliance against rules and regulations.
Regularity and Compliance Audits are carried out annually for all tiers of
government.
iii.
Performance Audits focus on the outcomes of various projects and
programmes with special emphasis on social sectors.
iv.
Information System Audits have recently been introduced at DAGP.
These audits are carried out largely in compliance with ISACA standards.
v.
Special Studies are conducted on the request of audit clients or on the
directives of public accounts committee, based on the TORs agreed.
vi.
Training, Research and Publications are the main tools of the DAGP to
keep abreast of the developments in the profession. It has a network of
training establishments spread across the country, where public servants
are trained in auditing, accounting, and financial management. Its
research operations have produced a Financial Audit Manual, an
internationally recognized Performance Audit Methodology with 20 sector
specific Guidelines and a series of Research Papers.
5. The OAGP is based in Islamabad and conducts operations through FAOs each of which
is headed by a Director General. Audit methodology used across all FAOs is, on the
whole, the same though certain differences in the workflow were highlighted during a
process documentation carried out in the past. Presently, the use of technology for audit
Page | 2
is limited to word processing and spread sheets, though a culture of using Computer
Assisted Auditing Techniques (CAATs) for data analysis, review and sampling is picking
up roots in some FAOs that can get financial data in electronic form from their clients.
Communication between audit parties and their supervisors as well as field audit offices
and the headquarters is mainly paper based. So too is the review of field work including
drafting of audit paras for reports. No central electronic repository/ database covering
past and ongoing audits is established to date. In the absence of such database,
information required by the headquarters is collected manually from FAOs as and when
required, delaying decision making and weakening quality management function.
Working Papers/ Briefs for Public Accounts Committee (PAC) meetings are prepared by
FAOs and submitted to headquarter for review and approval. Given this paper-based
environment, follow-up on issues flagged in audit numerous reports and directives
issued by the PAC remains a major challenge, notwithstanding the fact that every FAO
has a small PAC section follow-up on such issues.
6. The implementation of AMIS would enhance the efficiency and effectiveness of the
OAGP by addressing following constraints:







Non-availability of timely management information at headquarters for
planning and monitoring of audit activities’
Differences in business processes/ workflows in field audit offices;
Quality management focused primarily on output rather than method;
Limited supervision because of insufficient supervisory staff to carry out field
monitoring;
Delays in approval process;
Non-availability of central resource/guidance for auditors on any technical
issues especially when they are in the field;
Absence of any centralized databank of previous audit reports, working
papers and technical literature
7. The implementation of AMIS will improve the quality, credibility, and timeliness of the
OAGP’s reports by:







Introducing central, top-down strategic plans to coordinate the activities of
FAOs;
Strengthening quality assurance during an audit (focusing on method), rather
than after it (focusing on output)
Providing technical support and help to its audit teams, wherever they are
conducting their audits
Cutting down on the cost and time involved in oversight of audit parties, and
FAOs and allowing continuous assessment of FAOs against set targets:
Increasing auditors’/FAOs’ compliance with the requirements of FAM in audits;
Allowing headquarters and FAOs to track compliance with audit
recommendations and directives of PAC; and
Harmonizing business processes across the OAGP.
Page | 3
B. SCOPE OF SERVICES
8. The External Validator ( the Consultant) shall be required to perform the following
services:
i.
Assist bid evaluation committee in the evaluation of bids for the selection of a
Software Development Firm (SDF) as per the requirements laid down in the
bid document;
ii.
Certify in writing that the selected SDF fully conforms to the technical and
general requirements as defined in the bidding documents.
iii.
Develop test scripts for the Operational Acceptance Test (OAT) which will be
discussed and finalized with the selected SDF prior to the signing of contract.
iv.
Review the hardware requirements prepared by the SDF and provide
assurance that the specifications meet all technical requirements of the
AMIS. Hardware for purpose of these TORs means all end user hardware
including data center and networking equipment.
v.
Verify and sign off all project deliverables of the SDF. All payments to the
SDF will be contingent upon the Consultant and PIFRA project manager
signing off on the deliverables.
vi.
Oversee, verify and sign off all OATs.
vii.
Review and recommend training material prepared by the SDF and oversee
its delivery to the OAGP staff;
viii.
Assist PIFRA in taking over the AMIS operations from the SDF before the
closure of the AMIS project. This will include preparing an exit strategy
including preparation of the TORs of technical experts that may be required
for running AMIS operations;
ix.
Submit a Monthly Progress Report (MPR) to the AMIS project manager
indicating progress made vis-à-vis previous month, identifying bottlenecks,
and suggesting steps that need to be taken by PIFRA to keep the project on
track.
x.
Prepare status updates and presentation for stakeholders on AMIS project as
and when required.
xi.
Develop contingency plans as necessary.
xii.
Submit a project closure report on completion of the AMIS project certifying
that all project requirements as agreed with the SDF in the contract have
been satisfactorily met.
xiii.
The activities specified above will cover all project locations across Pakistan.
The duration of this assignment is till the final completion of the AMIS project.
Page | 4
xiv.
Any other task that is relevant to the implementation of AMIS at the direction
of the AMIS project manager.
Qualification Criteria:
9. The interested individuals will be evaluated and prequalified on the basis of the following
parameters:
 Master degree Computer Sciences, Information Technology, Project
Management or CA/ACCA. Candidates holding related certifications such as
CISSP, CISA, PMP etc. may be awarded additional points;
 Significant experience of overseeing the development and deployment of a
comparable Management Information System;
 Experience of working for the public sector in Pakistan.
Essential Job Skills & Abilities

Skill in planning, maintaining and meeting multiple deadlines.

Ability to work independently with considerable aptitude for initiative.

Skill in effective verbal and written communications, including active listening
skills and skill in presenting findings and recommendations.

Generally aware of new developments in industry and processes and has ability
to apply them to work as appropriate.

Ability to establish and maintain harmonious working relationships with coworkers, staff and external contacts, and to work effectively in a professional
team environment.
Remuneration
10. The remuneration would be in range of PKR 250,000 to PKR 350,000 per month
depending on the qualification and experience of the selected individual. The Consultant
will be entitled to Travelling Allowance/Daily Allowance as admissible to an officer of
BPS-21.
11. The consultant will be allowed 20 days leave in a calendar year, not to be carried
forward. Leave beyond 20 days in a year will be treated as without pay.
12. Appointment would be for an initial period of one year which would be extendable.
Page | 5
List of Acronyms
AGP
AMIS
AIR
DAC
DAG
DAGP
DPs
FAO
FAM
IT
INTOSAI
OAGP
OAT
PAC
PAO
Auditor General of Pakistan
Audit Management Information System
Audit Inspection Report
Departmental Accounts Committee
Deputy Auditor General
Department of the Auditor General of Pakistan
Draft Paras
Field Audit Office
Financial Audit Manual
Information Technology
International Standards for Supreme Audit Institutions
Office of the Auditor General of Pakistan
Operational Acceptance Test
Public Accounts Committee
Principal Accounting Officer
Page | 6