Donor-Funded Project Auditing Training Course

Duration 10 days 16 modules · 65 contact hours
Level Intermediate Certificate on completion
Who attends External Auditors, Internal Auditors and others
Fee from USD 2,200 KSh 190,000 for Kenyan organisations
Where 52 cities + online See dates by city
Next start 16 Nov 2026 Course code SD-A-102

Before you join: Participants should understand basic accounting records, internal controls and the purpose of an audit.

Dates & prices

Two start dates a month in every city, and live online on weekdays or weekends. Fees are per participant; classroom fees include tuition, materials, lunch and refreshments, and the certificate.

Suggest a date or city

Showing the next six months. Later dates, other cities and private deliveries for your team are available on request.

Course overview

Donor-funded projects are subject to overlapping accountability requirements: grant agreements, donor regulations, national law, organisational policies, approved budgets and financial reporting rules. Auditors must determine whether expenditure is eligible, procurement was properly conducted, assets are safeguarded, advances are accounted for and financial reports fairly present project activity. Weak audit planning or poorly evidenced findings can delay donor disbursements, trigger cost recoveries and damage relationships with funders and implementing partners.

This course develops the practical audit skills required for projects financed by bilateral donors, multilateral agencies, foundations and humanitarian funders. Participants interpret grant agreements and audit terms of reference, assess donor-specific risks, plan fieldwork, test expenditure eligibility, review procurement and payroll, verify assets and analyse financial reports. They apply International Standards on Auditing requirements to special-purpose financial statements and produce audit evidence that supports clear, defensible conclusions.

Instruction combines short technical briefings with donor-project case files, working-paper reviews, group audit planning, sampling decisions, audit simulations and reporting clinics. Participants progressively build an audit file for a realistic donor-funded project, including a risk assessment, audit programme, sample selections, findings and management-letter recommendations. They leave with a reusable set of audit templates and a completed project-audit portfolio suitable for adapting to their own assignments.

The course is suited to internal auditors, external auditors, finance managers, grant managers and programme assurance staff working with donor funding. It is delivered over 10 instructor-led days, from 08:30 to 16:30, in classroom locations in more than 50 cities or through live online delivery. Participants who complete the course receive a certificate of completion.

What you will be able to do

  • Interpret grant agreements, donor regulations and audit terms of reference into testable audit criteria
  • Develop a risk-based audit plan for a donor-funded project using materiality and risk assessment
  • Test expenditure eligibility against approved budgets, cost principles and supporting documentation
  • Evaluate procurement, payroll, cash, asset and sub-grant controls using documented audit procedures
  • Select and document audit samples using ISA 530 principles and population analysis
  • Prepare working papers that link audit evidence, findings, conclusions and review notes
  • Draft donor-compliant audit reports, management letters and actionable recommendations
  • Present a complete donor-funded project audit file and defend its conclusions

Benefits of attending

For you

  • Confidence interpreting donor conditions as audit criteria and test procedures
  • A practical audit-file structure for future grant and project assignments
  • Stronger judgement when assessing ineligible costs and control exceptions
  • Clearer audit-writing skills for donor reports and management letters
  • Evidence of completed intermediate donor-project audit training

For your organisation

  • More consistent audits of grant expenditure, procurement and partner advances
  • Earlier identification of unsupported, ineligible or misallocated project costs
  • Better audit documentation for donor reviews and external assurance engagements
  • More practical corrective actions for recurring grant-control weaknesses
  • Reduced risk of questioned costs, delayed disbursements and donor recoveries

Course modules

16 modules over 10 days

Participants can explain the purpose, scope and accountability requirements of a donor-funded project audit.

  • Donor-funded project audit objectives, stakeholders and assurance expectations
  • Grant lifecycle from award acceptance through financial closeout
  • Roles of donors, recipients, auditors and implementing partners
  • Financial audit, compliance audit and performance audit distinctions
  • Special-purpose financial statements prepared for donor reporting requirements
  • Audit terms of reference translated into deliverables and deadlines

Participants can convert grant agreement clauses into a structured set of audit criteria.

  • Reading grant agreements for conditions, restrictions and reporting obligations
  • Eligibility criteria derived from approved budgets and donor cost rules
  • Match funding, counterpart contributions and co-financing verification requirements
  • Restricted funds, designated accounts and currency provisions examined
  • Documenting auditable criteria within a grant compliance matrix
  • Reconciling donor requirements with national law and organisational policies

Participants can apply relevant assurance standards when planning donor-project audit engagements.

  • ISA 800 considerations for special-purpose financial statement audits
  • ISA 805 application to individual statements and specific elements
  • Engagement letters defining responsibilities, scope, access and reporting
  • Ethical requirements, independence threats and safeguards for audit teams
  • Materiality decisions documented for financial and compliance objectives
  • Agreed-upon procedures distinguished from reasonable assurance engagements

Participants can document project operations and identify controls relevant to the audit.

  • Project implementation model mapped from funding receipt to expenditure
  • COSO control components applied to grant-funded project operations
  • Process narratives covering payments, procurement, payroll and advances
  • Walkthroughs trace transactions through authorisation, recording and reporting
  • Control owners, evidence sources and approval limits identified
  • Related parties and conflict-of-interest risks documented early

Participants can produce a risk assessment and materiality approach for a donor-funded project.

  • Inherent risk assessed by funding type, geography and delivery model
  • Fraud risk factors evaluated using ISA 240 requirements
  • Risk register links assertions, controls, procedures and evidence
  • Overall materiality calculated from project expenditure and donor thresholds
  • Performance materiality set for sampling and substantive testing
  • Significant risks identified for procurement, advances and related parties

Participants can prepare a risk-based audit plan, timetable and detailed audit programme.

  • Planning memorandum sets scope, risks, staffing and reporting dates
  • Audit strategy allocates control testing and substantive procedures
  • Detailed audit programmes address each material financial statement assertion
  • Fieldwork timetable coordinates project staff, partners and site visits
  • PBC request list specifies records, formats and responsible staff
  • Opening meeting agenda establishes access, protocols and communication routes

Participants can assess whether project accounting records support reliable donor financial reporting.

  • Chart of accounts mapped to donor budget categories
  • General ledger tested against project financial reports and schedules
  • Budget-versus-actual analysis identifies unusual variances requiring investigation
  • Bank reconciliations reviewed for timeliness, accuracy and reconciling items
  • Currency translation tested using grant agreement exchange-rate requirements
  • Financial statement disclosures checked against donor reporting instructions

Participants can test project expenditure for eligibility, accuracy, occurrence and proper allocation.

  • Voucher testing traces expenditure from ledger to source documentation
  • Eligibility tests assess dates, approvals, budget lines and cost categories
  • Cost allocation methods examined for reasonableness and documented bases
  • Supporting evidence evaluated for completeness, authenticity and audit relevance
  • Ineligible costs classified by cause, value and recovery exposure
  • Cut-off testing identifies expenditure recorded outside the grant period

Participants can audit procurement transactions and contracts against donor and organisational requirements.

  • Procurement thresholds matched to approval and competition requirements
  • Tender files inspected for specifications, bids, evaluations and awards
  • Single-source procurement tested against documented exception justifications
  • Bid evaluation records checked for transparency and conflict disclosures
  • Contracts tested against purchase orders, invoices and delivery evidence
  • Contract variations reviewed for authorisation, value and donor approval

Participants can test personnel and consultant costs charged to donor-funded projects.

  • Payroll costs reconciled to contracts, payroll registers and bank payments
  • Timesheets tested for approval, allocation and grant-funded activity
  • Salary rates compared with contracts, scales and donor limits
  • Consultant selection tested through terms, deliverables and payment approvals
  • Personnel cost allocations recalculated using documented distribution methods
  • Statutory deductions and benefits assessed for eligible project treatment

Participants can audit project cash management, advances and designated-account transactions.

  • Designated account activity reconciled to bank statements and ledgers
  • Cash advances tested for approval, retirement and ageing
  • Petty cash counts documented using surprise verification procedures
  • Bank confirmations requested for balances, signatories and restrictions
  • Unretired advances analysed by recipient, age and project purpose
  • Funds transfers traced between donor, recipient and implementing partners

Participants can verify project assets and assess controls over inventory and donor-funded property.

  • Asset register reconciled to purchases, disposals and physical verification
  • Physical inspection confirms existence, condition, tagging and location
  • Ownership clauses reviewed for donor-funded equipment and handover requirements
  • Inventory counts observed using test counts and discrepancy follow-up
  • Asset utilisation assessed against approved project purposes and workplans
  • Disposals tested for approval, valuation and donor notification

Participants can assess accountability and expenditure controls within sub-grant and partner arrangements.

  • Sub-grant agreements reviewed for reporting, eligibility and audit clauses
  • Partner due diligence assessed through capacity and control evidence
  • Funds advances reconciled to partner reports and liquidation schedules
  • Partner expenditure tested against approved budgets and supporting documents
  • Monitoring visits evaluated for documented follow-up of findings
  • Consolidation procedures checked for eliminations and duplicate-cost prevention

Participants can select audit samples and prepare review-ready working papers supporting conclusions.

  • ISA 530 sampling concepts applied to donor expenditure populations
  • Population stratification separates high-value, unusual and routine transactions
  • Sample sizes determined from risk, materiality and expected deviation
  • Judgemental selections documented with clear rationale and coverage
  • Working papers link objectives, procedures, evidence and conclusions
  • Review notes cleared through cross-referencing, correction and sign-off

Participants can develop evidence-based findings and prepare donor-focused audit reports.

  • Finding statements distinguish condition, criterion, cause, effect and recommendation
  • Questioned costs quantified and linked to supporting audit evidence
  • Management responses evaluated for ownership, actions and due dates
  • Management letters prioritise control deficiencies by risk and impact
  • Audit opinions considered under ISA 700 and modified-reporting requirements
  • Exit meeting communication handles disputed findings and factual corrections

Participants can build, review and present a complete donor-funded project audit file with supported conclusions.

  • Capstone case integrates grant terms, accounts and supporting records
  • Risk assessment and materiality decisions finalised for the engagement
  • Audit programme completed with documented procedures and sample results
  • Working papers assembled with cross-references, evidence and review notes
  • Audit findings drafted with questioned costs and corrective recommendations
  • Final report presented and conclusions defended before stakeholder review

Exercises and examples are adapted to each cohort's sectors and roles.

What you take back to work

  1. Grant compliance matrix template
  2. Risk-based donor project audit programme
  3. Expenditure eligibility testing checklist
  4. Procurement audit working-paper pack
  5. Audit sampling and exception log
  6. Donor audit report and management-letter template

Who should attend

  • External Auditors — audit donor-funded projects or prepare assurance engagements for funders
  • Internal Auditors — assess grant controls, compliance risks and corrective-action progress
  • Finance Managers — maintain records and controls that withstand donor audit scrutiny
  • Grant Managers — translate donor conditions into operational monitoring and documentation requirements
  • Project Accountants — prepare eligible-cost schedules, reconciliations and supporting evidence
  • Programme Assurance Officers — review implementing-partner compliance and project accountability

Skills and tools covered

Grant agreement interpretationRisk-based audit planningEligibility testingProcurement auditAudit samplingDonor reporting

Tools and standards

International Standard on Auditing 800, International Standard on Auditing 805, International Standard on Auditing 530, COSO Internal Control Framework

How the course runs

Training methodology

The course uses short instructor briefings to establish audit requirements, followed by structured case work based on a donor-funded project file. Participants analyse grant clauses, map risks, prepare audit programmes, inspect simulated supporting documents, select samples and draft findings. Group exercises compare audit judgements and evidence sufficiency; simulations address opening meetings, management responses and report clearance. Individual application planning helps participants adapt the methods, templates and reporting approach to their own audit portfolios.

Requirements and prerequisites

Participants should understand basic accounting records, internal controls and the purpose of an audit. Experience preparing project accounts, reviewing vouchers, managing grants, working in finance, or participating in audit assignments is useful. Participants should be able to read financial statements, budgets and supporting documentation such as invoices, payroll records and bank reconciliations. Prior knowledge of International Standards on Auditing or a specific donor's rules is not required; these are introduced and applied during the course. Professional accounting qualifications and prior external-audit experience are not required.

A typical training day

08:30 – 10:30First session
10:30 – 10:45Refreshment break
10:45 – 12:30Second session
12:30 – 13:30Lunch and networking
13:30 – 15:00Third session
15:00 – 15:15Refreshment break
15:15 – 16:30Workshop and daily review

Live online deliveries follow the same structure in East Africa Time, with shorter screen blocks and longer breaks.

What the fee includes

  • Instruction by a practitioner facilitator
  • Full course workbook and materials
  • Exercise files, templates and case studies
  • Refreshments and lunch on classroom deliveries
  • Certificate of completion
  • Post-course application plan

Frequently asked questions

Participants need basic familiarity with accounting records, budgets and internal controls. Previous donor-audit experience and professional accounting qualifications are not required.

Bring a laptop if possible, plus a non-confidential grant agreement, audit template or project-reporting example you want to improve. Course case materials and templates are provided.

It is designed for auditors, project accountants, grant managers, finance managers and assurance staff working with donor-funded activities. It is especially relevant to staff reviewing NGOs, public projects and implementing partners.

The course focuses on grant conditions, eligible costs, donor reporting, project budgets, sub-grants and questioned costs. General audit concepts are applied specifically to donor-funded project evidence and reporting.

Participants can adapt the grant compliance matrix, audit programme, sampling log and reporting templates to current assignments. The course also provides a method for converting donor clauses into specific audit tests.

The first week establishes grant criteria, standards, controls, planning and core transaction testing. The second week covers specialist audit areas, evidence, reporting and a capstone audit file, with about 6.5 contact hours each day.

Questions about this course?

Ask about dates, fees, group bookings or running it for your team. Our training team replies by email.

Ask on WhatsApp info@skillsetdevelopment.com

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