Terms of Reference (TOR) for the procurement of external audit services
Background:
The Norwegian Association of Disabled (NAD) is an independent human rights organization of persons with disabilities. We work for equal rights and full participation for all. In Zambia NAD works in the areas of Human Right Advocacy and Inclusive Education. From 2025 to 2029, NAD is implementing a project called collective Action for Disability Rights (CADiR) together with 5 partners that are organizations of persons with Disabilities.
NAD Zambia is currently looking for an external auditor to audit the country office and its partners for 2025 financial year and beyond.
Objective of the Audit:
1. The objective of the audit of NAD’s financial statements is to enable the external auditors to express an independent professional opinion on the financial position of NAD and its partners and to examine and verify that the funds expended by NAD/Partners in each financial year have been used for their intended purposes.
2. The books of accounts of NAD/Partners provide the basis for preparation of NAD’s/Partners Financial Statements. The auditors are expected to verify that proper books of accounts as required by law have been maintained by NAD/Partners and that NAD/Partners has adequate internal controls and supporting documentation for the transactions undertaken during the financial year under review.
Scope of the Audit:
1. The audits will be performed in accordance with International Financial Reporting Standards (IFRS) and International Standards of Auditing (ISA) (Overall objectives of the independent auditor and the conduct of an audit in accordance with international standards on auditing), paragraphs 18 and 20. Of particular relevance is ISA 240 (The Auditor’s responsibility to Consider Fraud and Error in an Audit of Financial Statements), and ISA 800 (“Special Considerations audits of single financial statements and specific elements, accounts or items of a financial statement”)
2. Verify that all funds have been used in accordance with the established rules and regulations of NAD as provided for in its relevant manuals and only for the purposes for which the funds were provided.
3. Goods, works, and services financed have been procured in accordance with the NAD established rules and procedures.
4. Appropriate supporting documents, records, and books of accounts relating to all activities have been kept. Clear links should exist between the books of accounts and the financial statements presented to.
5. The financial statements have been prepared by NAD management in accordance with applicable accounting standards and give a true and fair view of the financial position of NAD and of its receipts and expenditures for the period ended on that date.
6. Comprehensive assessment of the adequacy and effectiveness of the accounting and overall internal control system to monitor expenditures and other financial transactions.
7. Express an opinion as to reasonableness of the financial statements in all material respects.
8. The audit process should consist of Interim Audit which will run for the period January to June of each audit year and final Audit which will run for the period July to December of each audit year, with a consolidation of the whole year from January to December in each financial year.
9. Include in their reports opinion on compliance with procedures designed to provide reasonable assurance of detecting misstatements due to errors or fraud that are material in the financial statements.
10. Conduct an entry and exit meeting with the Executive Director of NAD during each planned audit process each year
11. In addition to the audit report, the auditors will prepare a Management Letter, taking cognizance of the following:
a) Give comments and observations on the accounting records, procedures, systems, and internal controls that were examined during the audit.
b) Identify specific deficiencies and areas of weakness in systems and controls and make appropriate recommendations for improvement.
c) Report on the implementation status of recommendations pertaining to previous period management letters.
d) Communicate matters that have come to their attention during the audit, which might have a significant impact on the sustainability of the organization.
e) Bring to the Executive Director’s attention any other matters that the auditors consider pertinent.
Audit Duration:
The audit work shall be completed within 3 weeks from the date of commencement of the audit.
Deliverables:
1. The Auditors on completion of the audit work will submit 5 (five) original copies of the Audit Report appended to the Financial Statements along with the reports to the attention of the Head of Country director
2. A Management letter in accordance with the scope of work described here before.
Qualifications:
Applicants should be auditing firms based in Zambia, registered and approved by the Zambia Institute of Chartered Accountants (ZICA). In addition, firms having affiliation/membership with internationally reputable audit firms will be eligible to apply.
i. Five (5) Years of experience auditing in the NGO Sector
ii. Compliance with legal requirements of registration with PACRA
iii. Latest 2025 Tax Clearance
iv. Traceable experience in audit reporting under International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA)
v. Traceable and verifiable experience of providing Expenditure Verification and/or Audit for three (3) Major Donors in Zambia.
vi. Three references from similar audits performed within the last three (3) years for both Audit and Expenditure verification
vii. Proof of 2025 valid Firm and Partners’ membership and registration with ZICA. Accompanied by practicing licenses.
viii. Financial proposal for the audit services
ix. Detailed work plan that shows the best value for money
x. Curriculum Vitae for the firm’s three (3) key audit team
Audit Fees:
The audit fees will be fixed through a competitive bidding process.
Application:
Interested firms can send their profiles to nadzambia@nhf.no and copy noah.mwanza@nhf.no not later than 10th November 2025.
Note that only shortlisted firms will be contacted.
