Sample Request for Proposal
c/o XYZ Assurance Firm
353 Royal Canal Boulevard
Jacksonville, UT XXXXX
January 2, 200x
Dear Ms. XXX:
Request for Proposal (RFP): Quality Assessment (QA), Amalgamated Manufacturing Inc. Internal Audit Services
BACKGROUND Amalgamated, a public company, manufactures and markets specialty medical surgical devices. Manufacturing
facilities are located in three mid-Atlantic states. Distribution facilities are located in Pennsylvania, Indiana, Louisiana, and Nevada,
and sales are made through an outsourced sales organization. In the fiscal year ended Aug. 31, 200x, net revenues were approximately $2.2 billion, and assets exceeded $2.5 billion. Further Amalgamated information is available on our Web site.
Our Internal Audit Services Department consists of 12 professionals, including the vice president who reports to the presi-dent/chief executive officer (CEO). The vice president has access to the chairman of the board and the audit committee.
The audit function provides an independent appraisal of key financial and operational controls. The audit department also
shares best practices that promote operational efficiencies and cost saving opportunities. Our audit plan is the result of an
annual risk assessment. A copy of the approved FY200x Audit Plan is enclosed for your reference.
REVIEW SERVICES TO BE PROVIDED This RFP is for a QA of Internal Audit Services. The selected independent party will:
‡Assess the efficiency and effectiveness of the internal audit department based on standards and benchmark information.
‡Review the Amalgamated audit universe and the method followed for annual risk assessment leading to the audit plan.
‡Evaluate the internal audit organizational structure, staffing, and internal audit approach.
‡Determine how internal auditing is perceived through interviews and surveys with customers, including governance personnel.
‡Examine internal audit techniques and methodology for testing controls.
‡Identify ways to enhance internal audit policies and practices.
‡Evaluate whether the department conforms to The IIA’s International Standards for the Professional Practice of Internal Auditing.
The response to this RFP should identify the membership and credentials of the review team, including an organizational chart and
the primary contact. The review team will include manufacturing internal audit experience.
The review will be confidential, with the results only provided to designated Amalgamated representatives. The independent
party shall prepare a written report upon completion of the QA that is addressed to the CEO and the audit committee. A presentation on the QA results will be made to the audit committee.
FEE ESTIMATE ASSUMPTIONS Your fee estimate should incorporate the following assumptions:
‡The project will be performed in March, with a preliminary report submitted by April 28, 200x, and the final report issued by
May 15, 200x.
‡Fees should include the cost, plus any estimated expenses. Please indicate the hourly rates for this review and the hourly rates
for any additional services that might be contracted in CY200x.
SUBMISSION AND SELECTION Proposals for the QA must be submitted by Jan. 20, 200x. Internal auditing and our QA oversight
committee, which is composed of our chief financial officer, chief legal officer, and a member of our audit committee,
will review each proposal. Selection of the provider vendor is tentatively set for Feb. 1, 200x, after interviews of finalists.
Additional information requests should be coordinated through my office at +1-410-555-3234.
OTHER MATTERS Please provide references. Also, limit the material provided in response to this RFP to 12 pages.
We are looking forward to working with you, and please do not hesitate to contact me if you have any additional questions.
David P. Auditor
Vice President, Internal Audit
QA Oversight Committee
INTERNAL AUDITOR FEBRUARY 2004