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TERMS OF REFERENCE (TOR) ENGAGEMENT OF AN EXTERNAL AUDITOR
1. Background
CISP –Comitato Internazionale per lo Sviluppo dei Popoli (International Committee for the Development of Peoples) is a rights-based International NGO established in Italy in 1983 and registered under the Non-Governmental Organizations Act, 1990 of Kenya in 1997. CISP implements humanitarian, rehabilitation, and development projects through its cooperation with public and private local actors in over 30 countries globally. Since 1997, CISP has been working in Kenya to carry out projects in areas of development by supporting national and county authorities to provide quality, equitable, transparent, and accountable services in various sectors. Over the past 23 years, CISP Kenya has expanded its activities across more than 12 Counties in both rural and urban areas in various sectors of intervention, including Agriculture and Food Security, Conservation, Livelihoods, Health and Nutrition, Protection (children, refugees, GBV), Education (early childhood, university), Governance, and Arts and Culture.
To strengthen accountability, transparency, and compliance, the organization seeks to engage an independent and qualified external audit firm to conduct an Annual Institutional Audit of its financial statements and assess governance, systems, and internal controls for the financial year ending 31 December 2025.
2. Objectives of the Audit
The overall objective of the external audit is to enable the auditor to express an independent professional opinion on whether the financial statements:
Present a true and fair view of the financial position of the organization;
Are prepared, in all material respects, in accordance with applicable accounting standards (e.g., IFRS) and donor requirements;
Comply with applicable laws, regulations, and contractual obligations;
Reflect proper use of funds in accordance with approved budgets and donor agreements.
The Auditor will also:
Assess the adequacy, effectiveness, and efficiency of institutional systems, policies, and controls.
Identify risks, gaps, and areas for improvement.
Identify measures to strengthen organizational governance, compliance, and accountability.
3. Scope of Work
The external auditor shall undertake an Institutional Audit, limited to the organization’s annual financial statements, in accordance with applicable laws and professional standards. The scope shall include, but not be limited to, the following:
3.1 Financial Audit
Audit the organization’s annual financial statements for the period ended 31 Dec 2025.
The audit will be carried out in accordance with the International Standards on Auditing (ISA) and will include tests and verification procedures as the auditors consider necessary under the circumstances.
Express an independent audit opinion on whether the financial statements present a true and fair view of the organization’s financial position and performance;
Verify the accuracy, completeness, and validity of accounting records and supporting documentation;
Review the adequacy and effectiveness of internal controls relevant to financial reporting;
Assess compliance with applicable accounting standards (IFRS). Confirm that the financial statements have been prepared by CISP management in accordance with applicable accounting standards and give a true and fair view of the financial position of the organization.
Confirm bank balances, cash balances, receivables, payables, and fixed assets;
Review payroll, statutory deductions, taxes, and compliance with labor-related financial obligations;
Review procurement, expenditure authorization, and asset management systems for compliance with internal policies and statutory requirements.
Advise management on emerging issues in Kenya Taxation and assist in the filing of annual KRA taxes where possible.
3.2 Exclusions
The scope of this assignment does not include donor or project-specific audits, forensic audits, or special-purpose reviews unless separately contracted.
4. Audit Standards
The audit shall be conducted in accordance with:
International Standards on Auditing (ISA);
International Financial Reporting Standards (IFRS)
International best practices in internal and institutional auditing
Relevant national laws and regulations;
Specific donor audit guidelines, where applicable.
5. Deliverables
The auditor shall submit the following Institutional audit deliverables:
Audited Annual Financial Statements signed and stamped;
Independent Auditor’s Report expressing the audit opinion;
Management Letter highlighting audit findings, internal control weaknesses, compliance issues, and recommendations;
Any statutory filings or reports required by national regulators.
All reports shall be submitted in both soft and hard copy formats.
6. Management Responsibilities
Management of CISP shall be responsible for: Preparation of draft financial statements, providing access to all accounting records, supporting documents, staff, and systems, ensuring the availability of key staff during the audit period, and responding to audit queries promptly.
7. Auditor’s Responsibilities
The auditor shall: Plan and conduct the audit to obtain reasonable assurance that the financial statements are free from material misstatement, maintain independence and confidentiality at all times, communicate audit findings promptly to management, and comply with ethical standards and professional requirements.
8. Timeliness of the Assignment
The audit is expected to commence in April 2026 (a date to be determined) and be completed within 3 weeks from the audit start date. The final audit reports should be submitted no later than 2 weeks after the completion of the audit.
9. Auditor Qualifications and Experience
The audit firm must meet the following minimum requirements:
Be legally registered and licensed to practice Institutional auditing in Kenya.
Be in good standing with the relevant professional body (e.g., ICPAK/ACCA), and its partners must hold current practicing certificates.
Have at least 8 years’ experience conducting Institutional audits for INGOs.
The auditor should have a high-level understanding of the International Financial Reporting Standards (IFRSs) and the International Standards on Auditing (ISAs) and their practical application to financial reporting and auditing for International Not for Profit organizations, including experience in auditing the accounts of entities comparable in size and complexity to CISP.
Demonstrate capability to advise on the improvement of existing and emerging management controls and governance processes.
Demonstrate sufficient knowledge of relevant laws, regulations, and rules in the country. This includes but is not limited to taxation, social security, labor regulations, accounting, and reporting.
The auditor must be completely impartial and independent from all aspects of management or financial interests of the organization.
Capacity to complete the audit within the required timelines.
10. Reporting and Coordination
The auditor will report functionally to the Executive Board of Directors and operationally to the Country Director and Country Administrator.
An entry meeting and exit meeting shall be held with management.
Management shall provide all required documentation and access to records.
11. Confidentiality
The auditor shall maintain strict confidentiality of all information obtained during the audit and shall not disclose such information to third parties without prior written consent from the organization, except where legally required.
12. Proposal Submission Requirements
Interested audit firms should submit a technical proposal (Maximum 5 pages- excluding the annexes) and a financial proposal (Maximum 2 pages), including:
12.1 Technical Proposal
Understanding of the assignment and audit approach;
Detailed audit methodology and work plan;
Firm profile and legal registration documents. Show proof of compliance with all the applicable statutory and professional regulatory bodies, e.g., PIN Certificate, a valid tax compliance certificate, current business permits, current quality assurance, and practicing certificates by ICPAK.
Capability statement and CVs of the Key team members
At least three (3) past performance references from organizations of a similar nature and industry as CISP (including email and phone contacts of referees).
Audit Team composition:
Names and CVs of key audit personnel;
Professional qualifications and experience of the team leader/engagement partner;
Clear roles and responsibilities of each team member.
12.2 Financial Proposal
Detailed professional fees for the audit, inclusive of all taxes and reimbursable expenses. The currency used for the Financial Proposal must be in Kenya Shillings.
Clear indication of any assumptions or exclusions.
Proposed payment schedule.
13. Evaluation Criteria
CISP will evaluate proposals based on assessment of qualifications, industry knowledge, reputation, service record, and fees. Proposals will be reviewed in-house as they are received. Only successful candidates who meet the requirements below shall be contacted:
Relevant experience with INGOs and donor-funded organizations;
Understanding of the TOR and audit approach;
Qualifications and experience of the proposed team;
Cost-effectiveness and value for money;
Compliance with submission requirements.
14. Duration of Engagement
The initial engagement shall be for one (1) year, with the possibility of renewal for up to One/Two additional year(s), subject to satisfactory performance and management approval.
15. Payment Terms
Payment shall be made upon satisfactory completion of the audit and submission of all agreed deliverables, in accordance with the contract terms.
How to apply
Application Deadline
Proposals must be submitted by Thursday, 28th February 2026, by 6 PM EAT, to [email protected], cc [email protected], with an email subject “ Proposal for provision of External Audit Services’’
Note: In case of more information, applicants are encouraged to write a request via the above email address.
Late submissions will not be considered.
CISP is strongly committed to ending child abuse, all forms of sexual exploitation and abuse, and to building a work environment that is safe and welcoming for all, where sexual harassment does not take place. The desired candidate for any engagement should share and support this commitment in all aspects of their personal and professional behavior. Any history implicating that the applicant has a history of child abuse, sexual exploitation and abuse, or sexual harassment, is a reason for excluding him or her from engagement with CISP