The Internal Audit department constitutes a critical part of the governance structure of the company. The department is charged with the following key responsibilities: –
- Continuous review of the risk environment of the company’s operations
- Continuous review of internal processes and controls to determine their effectiveness in risk management
- Continuous review of financial reporting, performance and controls
- Appraisal of departmental, regional, branch and Satellite office operations
- Monitoring of compliance with regulatory requirements, professional demands and good practices
- Monitoring of compliance with internal policies, management directives and corporate objectives
- Fraud investigation
Audit for Value
In carrying out their work, Internal Auditors focus on how controls, processes and procedures affect the overall corporate output. Over the years, Internal Auditors’ recommendations have served the company in continuously improving internal controls and consequently realize higher levels of operational efficiency and effectiveness.
Audit and transformation
As SMEP transforms into a deposit taking business, the role of Internal Audit becomes more critical. Deposit taking presents fresh risks related to new business lines and handling of volumes of liquid cash in a rapidly growing company. With a highly qualified and competent team and employing current computerized audit techniques, internal audit has not only positioned itself to guide the company into a smooth transition to deposit taking on the internal controls front, but has also ensured that structures are in place to support Central Bank of Kenya requirements as prescribed in Microfinance Prudential guidelines.
The Internal Audit Department is also supporting the company in adopting the emerging microfinance practices of transparency pricing and consumer protection. SMEP is already subscribed to these practices.
The activities of the department are currently centralized at the Head Office but execution of audit programs is countrywide, guided by comprehensive annual and specific audit programs.
The Internal Audit function reports to the Board Audit Committee and continually feeds the Management with progressive audit findings and recommendations thereto.