Pursuant to Section 155(5) of the Public Finance Management Act, 2012 and Regulation 167 of the Public Finance Management Regulations, 2015, every County Government entity is required to establish an audit committee whose main mandate is to support the accounting officers with regard to their responsibilities on matters of risk, control and governance and associated assurance and to follow up on the implementation of the recommendations of internal and external auditors.

According to Regulation 167 (4), each audit committee shall consist of a minimum of three members, excluding a person who shall be appointed to represent the County Treasury and a maximum of five members.


a)The audit committee should drive the assessment of the performance of the head of internal audit.

b)Examine internal and external audit reports and recommendations after management response to ensure action is taken.

c)There should be in place adequate mechanisms of enabling the audit committee facilitate adequate disposal of all PAC/PIC recommendations. This is done by following up to ensure positive action is taken.

d)The audit committee is responsible for communicating with the internal and external auditors. In its overseeing role, the committee should focus on: –

(i)The changing business environment;

(ii)Changing financial reporting requirement;

(iii)Audit findings, including comments governance, risk and controls;

(iv)Proposed audit scope and audit coverage and approaches with respect to complex, high risks, and judgment areas;

(v)Management response to specific audit recommendations.

Duties and Responsibilities

a)Obtain assurance from management that all financial and non-financial internal control and risk management functions are operating effectively and reliably.

b)Provide an independent review of an entity‘s reporting functions to ensure the integrity of financial reports.

c)Monitor the effectiveness of the entity‘s performance management and performance information.

d)Provide strong and effective oversight of an entity‘s internal audit function.

e)Provide effective liaison and facilitate communication between management and external audit.

f)Provide oversight of the implementation of accepted audit recommendations. g)Ensure the entity effectively monitors compliance with legislative and regulatory requirements and promotes a culture committed to lawful and ethical behavior.

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