Terms of Reference (TOR) Procurement of External Audit Services

The objective of this assignment is to provide an independent professional opinion on whether the organization’s financial statements present fairly, in all material respects, its financial position and results of operations in accordance with the applicable accounting framework and donor requirements.

The audit will also provide assurance over the management and use of funds implemented through partner organizations, including verification at partner level.

3.1 Financial Audit

Conduct an audit of the organization’s annual financial statements in accordance with:

• International Standards on Auditing (ISA) or other applicable auditing standards
• Applicable accounting standards (e.g. IFRS, and local Standards, as applicable)
• Express an audit opinion on the financial statements.

3.2 Implementing Partner Review

Perform audit procedures related to implementing partners receiving funds from the organization, including:

• Review of partner financial records related to the organization-funded activities
• Verification of expenditures, supporting documentation, and compliance with partnership agreements
• On-site visits to selected implementing partners, based on a risk-based and materiality
  approach
• Assessment of partners’ internal controls relevant to financial management and project
  implementation. 

Confirm that funds transferred to implementing partners have been used for their intended purposes and in compliance with donor and organizational requirements.

3.3 Donor and Compliance Review

• Review compliance with key donor agreements, including provisions related to sub-granting and partner oversight.
• Verify the appropriate use of restricted and unrestricted funds.
• Assess compliance with applicable laws, regulations, and internal policies.

3.4 Internal Controls

• Review and assess the adequacy and effectiveness of internal financial control systems at both organizational and partner levels.
• Identify significant control weaknesses and financial risks.

3.5 Reporting

Issue the following reports:

• Independent Audit Report
• Audited financial statements
• Management Letter outlining findings, risks, and practical recommendations
• Donor-specific audit reports, where applicable

Present key audit findings to senior management and/or the Board/Audit Committee, if requested.

Proposals should be submitted to WARwanda@wateraid.org

no later than 31st March 2026. Late submissions will not be considered.