Internal Audit is an independent internal management support function that exists to ensure the efficient and effective use of the county’s resources. It is a critical component of the internal financial controls necessary to protect the county’s financial interests, while also acting as a feedback mechanism to departments on their use of public resources. This function often works complementarily with External Audit, both of which report, against their different mandates, to an Independent Audit Committee established by the County Government.


Upstream: Budgeting, Budget Implementation Circular, Budget Execution

Downstream: Budget Execution, Monitoring and Reporting


On the one hand, the task requirement of Internal Audit is technically similar to that for External Audit – focused on Financial, Compliance and Performance Audit aspects. Unlike the External Auditor, the output from this task is a quality assurance report, rather than an audit opinion Internal Audit also serves a more specific support purpose for County Senior Management, and its task requirements additionally include (a) audit of budget estimates prior to approval (b) transaction support through pre-audit processes (c) review and evaluation of budgetary performance, financial management, transparency and accountability mechanisms and processes in county government entities, including the County Assembly (d) providing reasonable assurance through the audit committee on the state of risk management, control and governance within the County government; and (e) reviews of the effectiveness of the financial and non-financial performance management systems of the entities. As a permanent function within the County Government, the law requires the Internal Audit function to prepare three-year risk based forward plans, forward annual work plans and end-year annual reporting based on a consolidation of quarterly audit assurance reports across all county government entities within its audit scope and jurisdiction.


Laws and Regulations

Public Finance Management Act, No 18 of 2012

Public Finance Management (County Government) Regulations 2015

Guidelines and Tools

Other Resources