Introduction

For Savings and Credit Cooperative Organizations (SACCOs), robust Internal Audit and Control Systems are not merely regulatory requirements but fundamental pillars for safeguarding member assets, ensuring operational efficiency, and maintaining public trust. As member-owned financial entities, SACCOs are particularly vulnerable to risks such as fraud, mismanagement, operational errors, and non-compliance if their internal oversight mechanisms are weak. A well-designed and effectively implemented internal audit function acts as an independent assurance provider, systematically evaluating the adequacy and effectiveness of internal controls, risk management processes, and governance frameworks. It plays a crucial role in identifying weaknesses before they escalate into major problems, promoting accountability, and supporting strategic objectives. Without strong Internal Audit and Control Systems for SACCOs, these institutions face increased exposure to financial losses, reputational damage, regulatory penalties, and a diminished capacity to serve their members effectively, underscoring the vital need for specialized expertise in this foundational domain. This comprehensive training course focuses on equipping professionals with the expertise to master Internal Audit and Control Systems for SACCOs.

This training course is meticulously designed to empower internal auditors, audit committee members, supervisory committee members, risk managers, compliance officers, and senior management within SACCOs with the theoretical understanding and practical skills necessary to establish, operate, and enhance effective Internal Audit and Control Systems. Participants will gain a comprehensive understanding of internal audit methodologies, learn about various types of internal controls, explore risk-based auditing techniques, and acquire hands-on experience in planning and executing audit engagements specific to SACCO operations. The course will delve into topics such as assessing control effectiveness in lending, savings, and digital channels, identifying and mitigating fraud risks, ensuring compliance with cooperative laws and financial regulations, reporting audit findings to the board and management, and fostering an ethical control environment. By mastering the principles and practical application of Internal Audit and Control Systems for SACCOs, participants will be prepared to strengthen their institution's integrity, improve operational resilience, enhance governance practices, and contribute significantly to the long-term sustainability and trustworthiness of their cooperative.

Duration: 5 Days

Target Audience

• Internal Auditors within SACCOs
• Audit Committee Members
• Supervisory Committee Members
• Risk Managers and Analysts
• Compliance Officers
• SACCO Senior Management (CEO, Operations Managers, Finance Managers)
• Board Members with oversight responsibilities
• External Auditors (interested in SACCO specifics)
• Aspiring Audit Professionals
• Governance Professionals in Cooperative Sector

Objectives

• Understand the fundamental role and objectives of internal audit in SACCOs.
• Learn about the types and components of effective internal control systems.
• Acquire skills in conducting risk-based internal audits specific to SACCO operations.
• Comprehend techniques for assessing internal controls in core SACCO functions (lending, savings, digital).
• Explore strategies for identifying and mitigating fraud risks through internal controls.
• Understand the importance of ensuring regulatory compliance through audit and control.
• Gain insights into reporting audit findings and recommendations effectively to stakeholders.
• Develop a practical understanding of fostering a strong control environment and ethical culture.

Course Content

Module 1: Introduction to Internal Audit and Control in SACCOs

• Definition and purpose of internal audit in cooperative financial institutions.
• The three lines of defense model: management, risk/compliance, internal audit.
• The role of internal controls: safeguarding assets, ensuring accuracy, promoting efficiency.
• Overview of common risks faced by SACCOs (credit, operational, liquidity, reputational, cyber).
• Key principles of effective internal audit and control.

Module 2: Internal Control Frameworks and Components

• Understanding widely recognized control frameworks (e.g., COSO).
• Types of internal controls: preventive, detective, corrective.
• Key control components: control environment, risk assessment, control activities, information & communication, monitoring.
• Designing controls for SACCO-specific processes (e.g., loan origination, deposit taking).
• Challenges in implementing effective controls in smaller institutions.

Module 3: Risk-Based Internal Auditing Methodology

• Planning an internal audit engagement: scope, objectives, resources.
• Conducting a risk assessment to prioritize audit areas.
• Developing an annual audit plan based on identified risks.
• Audit methodologies: substantive testing, control testing.
• Documenting audit work: work papers, evidence collection.

Module 4: Auditing Core SACCO Operations - Lending and Savings

• Audit procedures for the lending cycle: loan origination, disbursement, collection, provisioning.
• Assessing controls related to credit assessment and approval.
• Auditing savings and deposit-taking processes: account opening, withdrawals, interest calculation.
• Ensuring compliance with internal policies and regulatory requirements for core products.
• Detecting common fraud schemes in lending and savings.

Module 5: Auditing Digital Channels and IT Systems

• Cybersecurity controls audit: access management, network security, data encryption.
• Auditing mobile banking and digital wallet platforms.
• Controls for data privacy and protection (e.g., GDPR principles, local data protection laws).
• Reviewing IT governance, disaster recovery, and business continuity plans.
• Assessing third-party vendor risk in digital services.

Module 6: Fraud Detection, Prevention, and Investigation

• Understanding common types of fraud in financial institutions (e.g., embezzlement, loan fraud, identity theft).
• Red flags for potential fraudulent activities.
• The role of internal audit in fraud prevention and detection.
• Basics of fraud investigation and evidence gathering.
• Promoting an anti-fraud culture within the SACCO.

Module 7: Regulatory Compliance and Governance Audit

• Auditing compliance with cooperative laws, financial regulations, and prudential guidelines.
• Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) audit procedures.
• Assessing the effectiveness of the SACCO's governance structures.
• Reviewing the effectiveness of the Board and its committees.
• Adherence to ethical codes and codes of conduct.

Module 8: Reporting Audit Findings and Fostering a Control Culture

• Preparing clear, concise, and impactful audit reports.
• Communicating findings and recommendations to management, audit committee, and the board.
• Monitoring the implementation of corrective actions.
• Building a collaborative relationship between internal audit and management.
• Promoting a strong internal control environment and ethical culture throughout the SACCO.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.