Ukaguzi wa Ndani

DEFINITION OF INTERNAL AUDITING 

The IIA has defined internal auditing as:

“Internal auditing independent, objective is assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organisation accomplish its objectives by bringing systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes." (Source: The IPPF, 2011 –updated for 2012)

INTERNAL AUDITOR  MANDATE

     (1) In accordance with section 48  of the Local Government Finances Act   the Council shall employ its own Internal Auditors who shall work closely with the Heads of Departments and shall report directly to the accounting officer.

    (2)  In this order an Internal audit is an independent appraisal of internal control within a Local Government Authority done by examining and evaluating the effectiveness and adequacy of such controls.

LEGISLATIONS GOVERNING INTERNAL AUDIT IN LGAs 

1. Public Finance Act (2001) as amended in 2010
2. Local Government Finances Act (1982)
3. Public Finance Regulations (2001)
4. Local Authority Financial Memorandum (LAFM), 2009 which replaced LAFM (1997)
5. Public Procurement Act (2011)
6. Public Service Act (2002)
7. Standing Orders
8. Internal auditing standards and guides set out in the International Professional Practice Framework (IPPFs) issued by the IIA
9. Code of Ethics for Internal Auditors issued by the Internal Auditor General,
10. Circulars issued from time to time by the Permanent Secretary, Ministry of Finance (MOF) as well as the Internal Auditor General (IAG)
11. Circulars issued from time to time by the Permanent Secretary, Prime   Minister’s Regional Administration and Local Government (PMO-RALG)
12. Circulars issued from   time   to   time   by   the   Permanent-Public Service Management (PO-PSM)