ATTACHMENT 6 - Examination of Compliance SOW


1. Examination of xx compliance with Terms and Conditions of xx Number xx for the period from xx to xx

[ Insert the audit title per the audit notification letter]


[Insert a brief background on the project subject to Audit, The background should include a brief description of the nature and activities under the program, the estimated amount of expenditures incurred during the period under audit under the federal share and the non-federal share, if any, the nature of the expenditures (salaries/personnel, program, travel, procurement, etc.)]


The objective of this engagement is to determine if the contractor/grantee complied with the terms and conditions of the above mentioned contract/grant. The attestation engagement shall be performed in accordance with U.S. Government Auditing Standards, the AICPA Statements on Standards for Attestation Engagements (SSAE), and the OIG Guidelines for Financial Audits Contracted by Foreign Recipients dated February 2009. The specific objectives of this engagement are to:

1. Perform tests to determine whether the contractor/grantee complied, in all material respects, with “specific agreement terms” and applicable laws and regulations related to USAID-funded programs and projects that have a direct effect on the use of funds paid to them. All material instances of noncompliance and all indications of illegal acts should be identified. Such tests shall include: (a) compliance with Executive Order 13224 – Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism; and (b) compliance with the prohibition on paying value added tax (VAT) with USAID funds;

2. Design the engagement to provide reasonable assurance of detecting fraud, illegal acts, or violations of provisions of the contract/grant agreement that could have a material effect on the subject matter or assertion of the attestation engagement, and be alert to situations or transactions that could be indicative of abuse. In accordance with U.S. Government Auditing Standards, Chapter 5, when planning review-level or agreed-upon-procedure-level attestation engagements, auditors should be alert to situations or transactions that could be indicative of fraud, illegal acts, and violations of provisions of contracts/grants. If such evidence exists, the auditor should contact the Regional Inspector General in Frankfurt (RIG/F) and should exercise due professional care in pursuing indications of possible fraud and illegal acts so as not to interfere with potential future investigations, legal proceedings, or both.

Issuing Country 
Tuesday, May 16, 2017 - 2:15pm