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Internal Audit Standards

The Internal Audit Standards Directorate prescribes Internal Audit standards consistent with the provisions of the PFM Act, 2012 as per the Board’s mandate. The Directorate also doubles up as the internal audit function for PSASB as provided in the PFM Act, 2012 section 73. The directorate also takes lead in promotion of best practices in risk management at the Board. The Directorate has two officers headed by a director.

The directorate undertakes the following important activities in accordance to the Board mandate which are aligned to the strategic themes;

  1. Prescribe internal audit procedures which comply with the PFM Act, 2012;
  2. Develop internal audit standards and policies through the International Professional Practices framework issued by the IIA Global (Responding to Exposure Drafts).
  3. Develop guidelines, tools and templates for Internal Audit, and audit committees in Public Sector.
  4. Publishing research reports on matters relating to internal auditing standards, internal controls, risk management and governance.
  5. Develop risk management policies, guidelines, manuals and templates.
  6. Development and review of content for online repository of eLearning materials
  7. Undertake capacity building initiatives for various stakeholders implementing prescribed standards.
  8. Undertake monitoring and evaluation of implementation of IPPF, guidelines, manuals (including following up on establishment of audit committees and implementation of audit committee guidelines in public sector entities).
  9. Provide secretarial support for the audit committee of the Board.
  10. Support PSASB internal audit and risk management function.
  11. Partner with PSASB strategic stakeholders in delivering mandate (IIA, ICPAK and National Treasury & Planning).
  12. Respond to queries in implementing and interpreting prescribed standards.


On 8th August 2014, the Public Sector Accounting Standards Board vide gazette notice number 5440 Board approved for adoption of the International Professional Practice Framework (IPPF) promulgated by the Institute of Internal Auditors for application by all state organs and public sector entities. In collaboration with the Internal Auditor General Department, the Directorate of Internal Audit Standards consequently has developed the following guidelines, manual and templates to facilitate implementers in the application of the IPPF and enhance standardization of the internal audit process in public entities;

  1. Audit committee guidelines
  2. Internal audit guidelines for National Government and County Government
  3. Draft county internal audit manual and its attendant templates

Recent Activities

The Directorate of Internal Audit Standards undertook a validation exercise on the draft county internal audit manual and its attendant templates. This brought on board 97 heads of internal audit drawn from the County Executive and County Assemblies to deliberate on and review the draft county manual and its attendant templates. The validation exercise key objective was to engage key stakeholders in the development process and enhance the manual’s implementation on approval.

The Directorate also undertook capacity building for audit committee members and heads of internal audit drawn from the following county governments;

Bungoma                                          Kwale

Kisumu                                            Garissa

Narok                                              Nakuru

Kisii                                                 Trans Zoia

Bomet                                              Machakos

Kilifi                                                Makueni

Nyandarua                                        Tharaka Nithi

Kakamega                                        Meru


Collaboration with other stakeholders
The Directorate is currently in active collaboration with other stakeholders in the execution of its mandate. Some of these stakeholders are:
National Treasury – Internal Auditor General Department
Institute of Internal Auditors (IIA Kenya)

Institute of Certified Public Accountants (ICPAK)
Public Financial Management Reforms Secretariat: Upscaling PFM Reforms relating Internal Audit in the Public Sector



Internal Audit Standards