EXTERNAL AUDIT TERMS OF REFERENCE

2024 ORGANIZATIONAL AUDIT

I. Introduction

Christian Women Rock (CWR) is a local Not for profit Non-governmental organization founded in 2020 to compliment government efforts in Prison health, community based initiatives in HIV/AIDS, Tuberculosis and Malaria. CWR pays particular focus on women and Children living in the community and closed settings by supporting sexual reproductive health rights, HIV prevention, TB screening and Malaria prevention. The other target group is ex-inmates who face serious discrimination after serving the sentence and Christian Women Rock has been able to distribute material contribution and speaking messages of hope to reduce poverty and recidivism.CWR is a membership organization with 110 volunteers.

These Terms of reference (TORs) shall be applicable to Christian Women Rock which implements its’ programmes at a national level.

II. The Audit Engagement : Organizational Audit

Christian Women Rock wishes to engage the services of an external auditor  for the purpose of auditing the organization.

The Audit Services required are as follows: 2024 Organizational Audit for the year ended 31st December 2024. The audit shall be carried out in accordance with International Standards on Auditing (ISA) issued by International Federation of Accountants (IFAC) and relevant donor Guidelines. The audit shall be carried out by an external, independent and qualified auditor (Certified Public Accountant/Authorized Public Accountant).

III. Responsibilities of the Auditor and  Christian Women Rock

Christian Women Rock will be responsible for the following:

General Responsibilities:

Ensuring that all financial reports are reconciled to respective accounting and bookkeeping systems.
Providing sufficient and adequate information, both financial (including approved budgets) and non-financial, in support of the financial report.
Providing full and free access to Christian Women Rock staff and its accounting and book keeping system, so that the auditor is able to perform their assignment.

The Auditors will be responsible for:

Carrying out the audit in accordance with  the International Standard of Auditing (ISA 700/705). The management audit is to be conducted according to ISRS 4400, the financial statements are to be audited according to ISAs.

By agreeing to these ToRs the auditor confirms that they will meet the following conditions:

The Auditor is a member of the Zambia Institute of Chartered Accountants of  (ZICA) who in turn are a member of the International Federation of Accountant (IFAC), and they are in good standing with ZICA and have a current certificate of registration and practice.

IV. Objectives and Scope of the 2024 Christian Women Rock Organizational Audit:

Audit the Annual Financial statements  for the organization for the period 1st May 2024 to 31st  December 2024. This will consist of the Management review and audit of the financial statements based on the current sources of finance. The Auditors shall  examine the reliability of Christian Women Rock’s internal controls and financial reporting processes and  express an opinion in accordance with ISA 700/705  on whether the financial statements give a true and fair view of the state of affairs.

The work carried out by the auditor shall include but not be limited to;

Examining, assessing  and reporting on compliance with the terms and conditions of the agreement [State agreement articles] and applicable laws and regulations regarding accounting and taxes.

Examining, on a test basis, that there is supporting documentation related to reported expenditures. The size of the test shall be based on the auditor’s risk analysis. The auditor shall report the identified amount in case there is any missing supporting documentation.

Additional assignment; Management review  according to agreed upon procedures ISRS 4400

The auditor shall review the following areas in accordance with the Terms of reference below:

Verify that the supporting vouchers are filed chronologically and that the trail of vouchers is intact.
Verify that the supporting vouchers meet the following requirements; The vouchers should contain information regarding when the voucher was created, when the business transaction occurred, what the business transaction refer to, the monetary worth of the business transaction and information about which counterpart the business transaction was transacted with.
Examine that there is a proper supporting documentation to the vouchers. The supporting documentation should consist of for example receipts, invoices, written and signed decisions regarding payments to organizations etc. If the transaction is a payment to a partner organization the supporting documentation shall consist of a contract or another written document signed by the partner. This document shall disclose information regarding what the partner will use the payment for.
Examine that the vouchers have been correctly booked on the correct account with respect to the type of cost the business transaction refer to.
Examine that the business transactions recorded are in accordance with the business activities and the policy of Christian Women Rock.
Verify that the appropriate person according to the approvals list has approved the invoices.
Verify that payments from the check account (or cash account) have been approved (according to the approvals list) and are in accordance with the operations of Christian Women Rock .
Verify that the office has been properly registered according to laws and regulations in the country.
Discuss and carry out an audit of the entity’s routines and controls regarding Fixed Assets, payment of salaries, social charges and taxes for local employees.

Verify if there is a register/schedule of all fixed assets recorded in the books of your office. This register shall include the following information; identification number of the asset, purchase date and purchase price.
Verify if there has been a physical count or similar activity to verify the existence of all fixed assets recorded in the books.
Verify on a sample basis that purchases of fixed assets made during the year have been properly approved and recorded at the correct amount.
Refer to group audit instructions on Salaries, social charges and taxes and include, verification of the existence of a system/routine for time reporting.

Verify that per diems paid are approved by the designated person and documented.

Routines regarding balance sheet items

To perform the following around items included in the balance sheet.

Document which months all major balance sheet items have been reconciled during 2024.
Verify that reconciliations are documented and that supporting documents are filed together with the reconciliation. Document if there are balance-sheet items (debts, receivable etc) where there has been no movement during the year. If such items exist please specify what this item consists of and why there has been no movement.

V. The reporting for the  institutional audit

The reporting shall contain details regarding used audit methodology and the scope of the audit.  The scope will bring out the sources of finance and the associated expenditure, the details of which will be highlighted in the notes.

The reporting shall contain an assurance that the audit was performed in accordance with International Auditing Standards aligned to relevant Zambian laws  and by a qualified auditor. A summary schedule shall be presented on how (s)he has accomplished all the tasks stated in the TORs.

The reporting shall contain the responsible auditor’s name, registration number, signature (not just the audit firm) and title.

The auditor shall make recommendations to address any weaknesses identified. The recommendations should be presented in priority.

The auditor shall also provide a chart showing the activities that have been specified to be performed and how he/she went about achieving them, for each audit assignment.

Management review:

Regarding the management review it is absolutely required that the Report of factual findings will be submitted. Please note that these are in accordance with the Standard ISRS 4400

The Report of factual findings should be submitted to the Board of Directors after comments made by management have been added and agreed. Christian Women Rock is also interested in any internal control comment the auditors come up with. Any comment you would like to bring up locally should be documented in the Report of factual findings with separate comments from the Local office.

A copy of the Report of factual findings for organization should be sent via e-mail to Christian Women Rock’s Executive Director and by copy the Finance and Operations Manager , at latest 15th of August  2025. The original of the audit reporting should be submitted to the local office

Description Note
Report Type
Delivery Time

Management (Factual findings) Letter sent to the Board of Directors
Organizational Audit
15th August  2025

Draft Audit report
Organizational  Audit
30th August 2025

Report sent to Finance Manager  for review
Organizational Audit
5th September 2025

Final Report sent to Executive Director
Organizational  Audit
15th September 2025

Final report sent to Board of Directors
Organizational  Audit
30th September 2025