Call For External Auditor







  1. Background.
  2. Objective of the Audit.
  3. The Audit Report and Management Letter.
  4. Auditor Independence and Qualification.
  5. Access to Facilities and Documents.
  6. Auditor Experience & Qualification.

1. Background

PAWA INITIATIVE is a collaborative arts and culture hub whose vision is ‘Active Citizens Driving Change”. In order to realize its vision, PAWA works in partnership with artistes, awakening in them a deep socio – economic and political consciousness and empowering the artistes to connect their art to the pursuit of a better Kenya.

By harnessing the ‘active art’ produced by artistes and disseminating the same to the society, PAWA hopes to use the active art to ignite social consciousness among the citizens that will drive them (citizens) to be active in governance issues affecting them and ultimately cause the citizens to demand for positive change; in their families, communities and ultimately the Kenyan society at large.

PAWA has structured itself to achieve its vision of an active citizenry via the deployment of various programs including master classes for artistes, curation and production of various forms of artistic expressions, offering space and platforms for displaying of the arts, networking the artistes with their peers, potential clients and engaging in lobbying and advocacy on issues of social justice.

2. Objective of the Audit

The objective of the audit of PAWA Initiative’s financial statements is to obtain reasonable assurance that the financial statement reflects true and fair view of the financial position of the organization. The audit will be performed in accordance with the accounting policies set out in the notes to the financial statement and international standards of Auditing (“ISA”) In addition to local Kenyan standards, the policies of PAWA Initiative, as well as the appropriate, accompanying Donor requirement.

3. Audit Scope

The auditor shall undertake this engagement in accordance with the minimum Terms of Reference detailed below and:

a) In conformity with International and Local Standards,  International Standards of Auditing (“ISA”) and International Financial Reporting Standards (IFRS). The findings and recommendations shall include an action plan for PAWA Initiative organizational and accounting improvements depending on findings and its implications and shall accommodate management. These standards must in all material respects include such tests and auditing procedures, as the auditor considers necessary under the circumstances.

b) In compliance with the Code of Ethics for professional accountants issued by Institute of Certified Public Accountants of Kenya (ICPAK).

The auditor must ascertain whether;

  1. Expenditures are legitimate, complete and accurate; that funds have been used in accordance with the conditions of agreements and only for the provided purposes.
  2. Goods and services have been procured in accordance with sound procurement procedures with due attention to economy and efficiency. That vendors are selected objectively.
  3. Tax and social security remittances have been made in accordance with the Kenyan tax laws and for the period, which the audit opinion relates.
  4. All necessary supporting documents, records and accounts have been kept in respect of all project activities, with clear linkages between the books of account and reports.
  5. The existing financial practices and procedures are sound, and are in line with the Financial Policies and Procurement Procedures Manual in place.
  6. Financial Statements have been prepared in accordance with International Accounting Standards, International Financial Reporting Standard or Generally Accepted Accounting Principles and Practices as appropriate and give a true and fair view of the financial position of the organizations Financial Year-End.
  7. Any other applicable terms and needs that may arise from time to time depending on applicable legislation at the time of audit.

NOTE: The auditor will also provide some specific project audit reports as per the donor requirement.

 4. Internal Control Systems

The auditor will conduct review of the internal control systems to have sufficient knowledge of the procedures and systems. The auditor will assess the soundness and adequacy of PAWA Initiatives procedures, and whether those procedures are consistently applied in the normal course of operations. In the process of reviewing the internal control system, the auditor needs also to examine areas like governance, achievement of objectives, budget utilization, asset management and procurement. The auditor should report any observations/findings on each of the above section in the management letter. The above-defined scope does not in any way restrict the audit procedures or the techniques that the auditor may wish to use in forming an opinion on the financial statements.

5. Key Deliverables

For the Statutory Annual Audit, the auditor is expected to present two reports: An opinion on the Financial Statements and a report on the internal control of the organization through a Management Letter.

(a) The report on the Financial Statements will contain:

  1. A professional opinion on the financial statements and supporting schedules.
  2. Accounting standards that have been applied indicating the effect of any deviations from those standards.
  3. The audit standards that were applied.

(b) The Management Letter will cover findings and recommendations on any deficiencies on governance, project/program implementation, financial management, procurement and fixed asset management. It will also highlight areas of risk that need to be flagged out to the management and stakeholders.

The auditors on completion of the audit work will submit three (3) original copies of the audit report appended to the financial statements along with the reports to the attention of the Board of Directors.

The auditor will be required to audit  PAWA’S Sauti Jasiri project funded by Forum Civ. The auditor is also expected to deliver as per the various articles stipulated in the Terms of Reference on the grant requirements terms indicated:-

The auditor shall examine the financial reports for the period “January-December 2020 submitted to Forum Syd by PAWA Initiative and to express an audit opinion according to ISA 800/805 on whether the financial reporting regarding the Sauti Jasiri Project submitted to Forum Syd is in accordance with PAWA Initiative accounting, established budget and Forum Syd’s instructions for financial reporting as stipulated in the agreement including appendix between forum Civ and PAWA Initiative

The auditor shall especially examine the project according to ISRS 4400 on the following mandatory items

  1. Follow up whether salary costs debited to the project/programme are recorded throughout the duration of the year in a systemized way and examine whether the salary costs can be verified by sufficient supporting documentation.
  2. Examine whether the financial report includes a comparison, for every budget item, between the actual costs/expenditures of activities and the budgeted costs/expenditures as approved by Forum Syd for the period.
  3. Based on materiality and risk the auditor shall examine whether there is supporting documentation related to incurred costs. Regardless of materiality of the findings, the auditor shall quantify the amount for costs lacking sufficient supporting documentation.
  4. Examine whether foreign exchange gains/losses are disclosed as a separate item in the financial report as well as disclosed in accordance with what is stipulated in the agreement including appendices and generally accepted accounting principles.
  5. The Partner Organization’s compliance with the applicable tax legislation with regard to taxes (e.g.PAYE) and social security fees.
  6. Follow up whether the Partner Organization has adhered to the procurement guidelines annexed or referred to in the agreement.
  7. Review if outgoing balance for previous period is the same as incoming balance for the current period.
  8. If the Partner Organization applies modified cash basis as accounting principle, the auditor shall describe used method and motivate whether the applied accounting principle is acceptable for this type of financial report.
  9. Verify the unspent balance at the end of the financial year against accounting records and its supporting documentation.
  10. Verify the unspent balance that shall be repaid to Forum Syd in the final report of the last agreement year. (Only applicable in the final report of the last agreement year)
  11. Follow up whether the Partner Organization has implemented recommendations from the previous audits reports of the program. The examination includes reviewing whether the Partner Organization has implemented the action points as described in the Partner Organization management response that has been submitted to Forum Syd in connection with audit reports. The examination also includes reviewing whether the Partner Organization has followed up the action points, in all subsequent links.

The auditor’s report shall include an independent auditor’s report in accordance with the format in standard ISA 800/805 and the auditor’s opinion shall be clearly stated. The independent auditor’s report shall clearly stipulate that the audit has been conducted in accordance with ISA 800/805. The reporting shall also include a Management letter that discloses all audit findings (significant and other findings), as well as weaknesses identified during the audit process. The financial report that has been subject of the audit shall be attached to the audit reporting. The auditor shall make recommendations to address the identified findings and weaknesses. The recommendations shall be presented in priority order.

6. Duration of Assignment

For the audit assignments, it is expected that the audit work shall be completed within one (1) month from the date of commencement.

Audit engagements will be on an annual basis with further annual and grant audits awarded based on successful performance.

 7. Qualifications of the Firm

The audit firm MUST meet the following qualifications;

  1. Demonstrate that the firm holds the requisite knowledge, skills and competencies required to perform its responsibilities with due professional care.
  2. Audit firm and staff must be independent of PAWA Initiative
  3. Audit firm has undertaken similar assignments before

The following document are mandatory requirements for all proposal submissions;

  • Company Profile and detailed CVs of the firm is Partners.
  • ICPAK Membership and Certificate of Good Standing.

In addition to the above mandatory documents, the selection criteria will include the following:

  1. A list of similar non-profit organizations served by your firm. The firm will be required to provide at least two recommendation letters from the past audited Not for Profit clients.
  2. Your staff assignments and availability to complete the audit on a timely basis.
  3. Participation of senior audit personnel assigned to the engagement.
  4. Availability of staff to respond to questions within the scope of the engagement and the charge, if any, for services outside the scope of the audit.

How to Apply

Applications must include;

  • A cover letter that summarizes capacity to undertake the assignment and commitment to participate in person;
  • A technical proposal highlighting;
  • Proposed fee for the engagement
  • Detailed audit plan/methodology including your approach to risk and fraud detection.
  • Qualifications and Experience of partner, manager and/or proposed staff for the assignment and a statement confirming and committing that staff named in the proposal will be assigned to the audit assignments.
  • Estimated number of hours to complete the audit by classification of your employees, i.e. partners, senior, junior.
  • Time requirements.

The technical and financial proposals should be emailed to with a copy to on or before Sunday, 17th January 2021 at 1600hours.

PAWA Initiative reserves the right to reject any or all the submissions received and will not be bound to accept the lowest bidder.

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