INTERNAL AUDIT FUNCTIONS

PART 1-GENERAL.

Policy of.

2001- The Accounting Officer of a Ministry or Extra-Ministerial Department shall ensure that an Internal Audit Unit is established to provide a complete and continuous audit of the accounts and records of revenue and expenditure,plants, allocaed stores and unallocated stores where applicable.The Internal Audit function shall also include Management Audit encompassing other areas of activities and functions of a Ministry/Extra-Ministerial Department.The existence of an Intemal Audit Unit will not divest any member of the Ministry or Extra-Ministerial Department of the individual responsibilities placed upon him, neither will it obviate the necessity for normal departmental checks.

Internal Auditor: appointment of

2002-The Accounting Officer of the Ministry shall ensure that the Internal Internal Audit function of the Ministry/Extra Ministerial Department Auditor:or Unit is placed directly under the control of a competent Accounts of.appointmen Officer trained in Treasury duties by the Office of the Accountant General.

Duties of Internal Auditor

2003-The Internal Auditor in charge will be directly responsible to Internal Duties of the Accounting Officer for a comprehensive audit of all the operations Auditor.and activities of the Ministry/Extra-Ministerial Department. For this purpose he shall carryout not only financial audits but also management audit ofother areas of the Ministry's functions with a view to monitoring their efficiency and effectiveness.

Programme

2004 - The Internal Auditor-in-charge shall ensure that the programme of audit is extended to cover all the records of the Ministry,Department or Unit,in order to satisfy himself that:

a) The safeguads introduced for the prevention or the prompt detection of fraud and loss of cash are adequate.Normal safeguards include the observance of Govemment and Departmental regulations and instructions,and for existence of internal checks.

b) The system for the control of the collection of revenue is adequate, and that al moneys received have been promptly brought to account,to the correct head and sub-head.

c) The system for the control of expenditure is adequate and that all payments made are properly authorized and correct,that head,and made for the purpose for which they were authorized.

d) A system for the control of the issue and consumption of stores is adequate,that all issues are properly authorized and correct,that issues are made to the right person,and are used for the purpose for which they are authorized.

e) There are adequate means for the verification by him of all cash,stores,plant held.

f) The accounting records are accurate.

Auditor Programmes: sub - mission of

2005-TheInternal Auditor shall submit to his Accounting Officer a detailed audit programme and send copies to the Accountant-General and Auditor-General.

Monthly, Quarterly and Special Reports.

2006-The Internal Auditor-in-charge shall report, monthly and quarterly,to the Accounting Officer on the progress of the audit and submit copies of these reports to the Accountant-General and the Auditor-General.He will also issue special reports,if necessary,when in his opinion, the attention of the Accounting Officer and of Director of Finance of the Ministry must be called to any irregularity in the accounting records, or to any apparent weakness in the accounting procedure or to any apparent inattention to the reports of the Auditor-General or to earlier Internal Audit reports issued by him. Copies of these special reports shal! be forwarded to the Accountant-General and the Auditor-General.

Half yearly Report.

2007-The Internal Auditor-in-charge will render a half-yearly report to his Accounting Officer,with copies to the Auditor-General and to the Accounting-General,to certify to what degree he is satisfied with the safeguards against fraud,with the controls of the receipts and of payments, with the controls on the issues and consumption of stores,with the verification of cash and stores held, and with the accuracy of the accounting records.The report will also include his observations on the economy of operation,efficiency,and effectiveness of other areas of activities and functions of the Ministry/Extra-Ministerial Department.

Progress Register.

2008- The Internal Auditor-in-charge will maintain under his personal control a register to record the progress of the audit. The register will normally be in columnar form of not less than thirteen columns to record in the first column the specific task to be undertaken-in-the course of the internal audit,and the officer in charge of each task will initial in the appropriate extension of column against each task to indicate the completion of the specific task for each month.The inspection of Headquarters accounts or Sub-Treasuries notmally be on a continuous basis throughout the year, whilst inspection of separate units might be on a periodical basis

Audit guides.

2009-The Internal Auditor-in-charge will draw up detailed internal audit guides for the use of the staff,setting out concisely the nature and extent of the checks to be applied to each account or record.The guide will be comprehensive and will be in amplification of the Audit Programme,and it will explain the general nature of the account,the relationship to the function of the Ministry,Department or Unit,and contain references to the basis in law, any relevant accounting instruction issued by the Accountant-General or other instruction issued by the Government.

Restriction in the duties of Internal Audit Staff

2010-The Staff of the Internal Audit may not be employed within Restrictio the Ministry,Department or Unit, on accounting duties or on the in the dus Internal check of accounting records. Further, an officer will be of Inter precluded from taking up the duties of Internal audit staff if he has Audit Su previously been engaged on accounting or internal check duties within the Ministry,Department or Unit over the period to be covered by Internal audit.

prepayment audit of payment voucher

2011 - Internal Audit Unit in all Ministries/Extra-Ministerial Prepaym Departments shall ensure that 100% pre-payment audit of all checked Audit ol and passed vouchers is carried out and the vouchers forwarded under voucher payment security schedule direct to the appropriate Pay Office/Sub-Treasury for payment.Checked and passed vouchers received in the Internal Audit Division must be promptly dealt with and, under no circumstance,should a voucher be held in that Division/Unit for more than 4 days,

Issuance of Internal Audit Sample

2012 - All Internal Audit Stamps will continue to be issued by the Issuano Accountant-General and will be regarded strictly as a security Intern instrument.

2013- Each Ministry/Extra-Ministerial Department will submit the to make use of Audit Stamps. Rank of such officers should not be below G.L.08.officer shall be as follows:

a) the name and rank of the officer;

b) two recent passport photographs,stamped and identified by the Director of Finance;

c) Specimen signature of the officer.

Collection of Audit Stamps at the end of each Duty

2014 - (a) The head of internal Audit unit must arrange to collect all Audit Stamps at the end of each duty and have them locked up in a Treasury safe with two Senior Officers holding the keys. the stamps shall be released to their respective users the next issuance day in the presence of at least two senior officers. The daiy issue and return shall be recorded in a "Daily Release of Audit Stamps Register".

Collection of Audit Stamps at the end of each duty b) In the case of out-stations, the Head of Internal Audit Unit will likewise collect the Audit Stamps and issue them to the auditors as in 2014 (a).

2015 - Loss of Internal Audit Stamp- Any Internal Auditor who Loss of looses the Internal Audit Stamp.duly issued to him will bear the Internal maximum penalty of surcharge or replacement cost as confirmed by Audit the Accountant-General. Officers of Internal Audit Division shall note Stamps.that Audit Stamps must not be re-issued to another officer. Internal Auditors re-assigned are to ensure that Audit stamps in their possession are returned to the Accounting officer or Office of the Accountant-General immediately.

Audit Stamps not transferrable

2016 - Internal Audit stamps are not transferable from one officer to Audit another.

Internal Auditor to control stock verification

2017 - In those Ministries/Extra-Ministerial Departments where a system of a Stores Stock Verification is available,the Internal Auditor will assume the control of the Stock Verification Staff and direct their programmes of Inspection (see FR 3505).

PART II-STOCK VERIFICATION SECTION

Policy of.

2018-The Accounting Officer of a Ministry or Extra-Ministerial Department will ensure that a Stock Verification Section is established to provide a complete and continuous audit of the stock records, plant, allocated stores, and unallocated stores where applicable.

The existence of a Stock Verification Unit will not divest any member of the Ministry or Extra-Ministerial department of the individual responsibilities placed upon him,neither will it obviate the necessity for normal departmental checks.

Appointment of stock verifier

2019-The Internal Auditor shall ensure that the Stock Verification function of the Ministry/Extra-Ministerial Department or Unit is placed directly under the control of a Stock Verifier.

2020-The stock Verifier-in-charge will be directly responsible to the Accounting Officer for a comprehensive verification of all the stocks and purchases of the Ministry/Extra-Ministerial Department.