Summary of WWF Sweden’s Standard Terms of Reference for Annual Audit of Project Support

The Lao Microfinance Association (LMFA), as the implementing partner, seeks an independent and qualified audit firm to conduct an annual audit of the Leading the Change programme, as required by its agreement with the WWF Country Office. The audit must adhere to International Standards on Auditing (ISA) and include additional procedures per International Standards on Related Services (ISRS) 4400.

Objectives and Scope

The audit aims to review the financial report for the period July 1, 2024 – September 30, 2025 and express an audit opinion per ISA 800/805, ensuring compliance with LMFA’s accounting records and WWF Sweden’s financial reporting requirements. The audit report must explicitly state which ISA standards were followed and be signed by an authorized person from the WWF Country Office.

Additional Assignment – Agreed-Upon Procedures (ISRS 4400)

The audit includes mandatory procedures, such as:

1. Ensuring the financial report aligns with the approved budget and includes required financial details (e.g., fund balances, exchange rate disclosures, and explanatory notes).
2. Reviewing salary costs, verifying documentation, and ensuring compliance with tax and social security regulations.
3. Checking whether implementing partners (IPs) and suppliers are screened against the EU Sanctions List.
4. Confirming unspent fund balances match accounting records and determining repayable amounts to WWF Sweden.
5. Reviewing budget and forecast revisions, ensuring major changes (over 10%) are pre-approved and properly documented.
6. Evaluating agreements with IPs to confirm compliance with audit and financial reporting requirements.

Follow-up on Funds Disbursed to Implementing Partners (IPs)

If LMFA forwards funds to IPs, the audit must review at least 10% of total disbursed funds and confirm that:

• Signed agreements exist between LMFA and IPs.
• IPs conduct annual audits per ISA standards.
• IPs submit financial reports and LMFA properly assesses and follows up on findings.
• Overhead costs are allocated correctly and reconciled annually.

Audit Reporting Requirements

The auditor must submit a report including:

1. An independent auditor’s report per ISA 800/805, with a clear opinion on the financial report.
2. A Management Letter disclosing audit findings, categorized by risk level (High, Medium, Low), along with recommendations and LMFA’s response detailing corrective actions.
3. An ISRS 4400 report describing additional audit procedures and findings, specifying sample sizes where applicable.

Interested candidates must submit the proposal to: Lao Microfinance Association (LMFA) by 10^th February 2025 before 3pm, at Unit 13, Ban Amone Village, Hom23 (23/3), Saysettha District, Vientiane Capital, or email mfa@laomfa.org

Here is the full document for the Terms of Reference for Annual Audit of Project Support