The subject of this engagement is the Contractor’s invoice dated <dd  Month yyyy >  and the[ interim ]  [ final] Financial Report in connection with the Service Contract for the period covering <dd  Month yyyy  to dd Month yyyy > . The activities performed by the Contractor under the Service Contract are  [technical assistance]  [ studies ] [ training ] and [ designs ] in accordance with the terms and conditions of  the Service Contract. Annex 1 to these ToR contains information about the Service Contract.  The Contractor is required to submit to the Contracting Authority an expenditure verification report  produced by an external auditor accompanied by the Contractor’s invoice and in support of the  payment requested by the Contractor under Article 29.1 of the General Conditions of the Service  Contract. The Authorising Officer of the Commission requires this report as he makes the payment of  the invoice and of the fees and expenditure claimed conditional on the factual findings of this report.  This expenditure verification is an engagement to perform certain agreed-upon procedures with regard  to the Financial Report for the Service Contract. The objective of this expenditure verification is for the  Auditor to carry out the specific procedures listed in Annex 2A of these ToR and to submit to the  Contractor a report of factual findings with regard to the specific verification procedures performed.  Verification means that the Auditor examines the factual information in the Financial Report and the  invoice of the Contractor and compares it with the terms and conditions of the Service Contract. As  this engagement is not an assurance engagement the Auditor does not provide an audit opinion and  expresses no assurance. The Contracting Authority assesses for itself the factual findings reported by  the Auditor and draws its own conclusions from these factual findings.  The Auditor shall undertake this engagement in accordance with:  The Auditor plans the work so that an effective expenditure verification can be performed. The Auditor  performs the procedures listed in Annex 2A of these ToR (‘Listing of specific procedures to be  performed’) and applies the guidelines in Annex 2B (Guidelines for specific procedures to be  performed). The evidence to be used for performing the procedures in Annex 2A is all financial and  non-financial information which makes it possible to examine the expenditure claimed by the  Contractor in the Financial Report. The Auditor uses the evidence obtained from these procedures as  the basis for the report of factual findings. The Auditor documents matters which are important in  providing evidence to support the report of factual findings, and evidence that the work was carried out  in accordance with ISRS 4400 and these ToR.  The report on this expenditure verification should describe the purpose, the agreed-upon procedures  and the factual findings of the engagement in sufficient detail in order to enable the Contractor and the  Contracting Authority to understand the nature and extent of the procedures performed by the Auditor  and the factual findings reported by the Auditor. Page 2 of 16  1.7 Reporting  1.6 Procedures, Evidence and Documentation  1.5 Standards and Ethics  1.4 Engagement Type and Objective  1.3 Reason for the Engagement  -  the International Standard on Related Services (‘ISRS’) 4400  Engagements to perform Agreed- upon Procedures regarding Financial Information  as promulgated by the IFAC; -  with the IFAC  Code of Ethics for Professional Accountants ( developed and issued by IFAC's  International Ethics Standards Board for Accountants (IESBA) , which establishes fundamental  ethical principles for Auditors with regard to integrity, objectivity, independence, professional  competence and due care, confidentiality, professional behaviour and technical standards.  Although ISRS 4400 provides that independence is not a requirement for agreed-upon procedures  engagements, the Contracting Authority requires that the Auditor is independent from the  Contractor and complies with the independence requirements of the IFAC  Code of Ethics for  Professional Accountants . 