Auditing of donor funded project is challenging given the complexity and nature of projects. In addition, key stakeholders may have different expectations. In addition, managers and officers working with donor funded projects are faced with competing demands such as the management of projects within budget, quality and time.

The development partners expect prudent management of financial resources and that financial reports are submitted within the time frames stipulated in the project document. Target beneficiaries expect to get value for money through an array of benefits that trickle down to them. Dilemmas that characterize the finance and audit processes for project managers within donor-funded project settings can be daunting if the project team is ill-equipped in the finance and audit functions.

This is particularly so because the final accountability for project financial and human resources
lies with the project managers. Auditors have a greater role to play.