For cooperatives, including Savings and Credit Cooperative Organizations (SACCOs), a highly effective Audit Committee is an indispensable cornerstone of sound governance, financial integrity, and member trust. In an environment of increasing financial complexity, evolving regulatory landscapes, and heightened expectations for transparency, the Audit Committee serves as the critical link between the board, management, internal audit, and external audit, providing independent oversight of financial reporting, internal controls, risk management, and compliance. An underperforming audit committee can expose the cooperative to significant financial mismanagement, fraud, regulatory penalties, and reputational damage, ultimately jeopardizing its stability and the security of member funds. By ensuring that financial statements are accurate, risks are adequately mitigated, and internal controls are robust, an effective Audit Committee safeguards the cooperative's assets and upholds its commitment to accountability to its members. Without a dedicated focus on enhancing Audit Committee Effectiveness in Cooperatives, these vital institutions risk undermining their financial health, eroding member confidence, and failing to meet their fiduciary responsibilities, underscoring the vital need for specialized expertise in this critical domain.

Duration: 5 Days

Target Audience

• Audit Committee Members of Cooperatives (especially SACCOs)
• Board Members with oversight responsibilities
• Supervisory Committee Members
• Internal Auditors
• Chief Financial Officers (CFOs) and Finance Managers
• Compliance Officers
• Risk Managers
• External Auditors (interested in cooperative governance)
• Senior Management involved in financial reporting
• Aspiring Audit Committee Members

Objectives

• Understand the roles, responsibilities, and strategic importance of an Audit Committee in cooperatives.
• Learn about best practices in Audit Committee structure, composition, and independence.
• Acquire skills in overseeing financial reporting quality and internal controls.
• Comprehend techniques for effective engagement with internal and external auditors.
• Explore strategies for identifying, assessing, and monitoring key financial and operational risks.
• Understand the importance of regulatory compliance and ethical conduct within the cooperative.
• Gain insights into evaluating Audit Committee performance and continuous improvement.
• Develop a practical understanding of fostering a culture of accountability and transparency.

Course Content

Module 1: Role and Mandate of the Audit Committee in Cooperatives

• Definition and purpose of an Audit Committee in a cooperative context.
• Legal, regulatory, and best practice frameworks for Audit Committees.
• Distinguishing the Audit Committee's role from the full Board and management.
• Key responsibilities: financial reporting, internal controls, risk management, internal and external audit oversight.
• The importance of independence and objectivity.

Module 2: Structure, Composition, and Effectiveness of the Audit Committee

• Optimal size and composition of an Audit Committee.
• Qualifications and competencies of effective Audit Committee members (financial literacy, industry knowledge).
• Importance of independent members.
• Charter of the Audit Committee: defining scope, authority, and responsibilities.
• Meeting frequency, agenda setting, and effective minute-taking.

Module 3: Oversight of Financial Reporting Quality

• Understanding financial statements: balance sheet, income statement, cash flow statement.
• Critical accounting policies and estimates.
• Monitoring the integrity of financial reporting and disclosures.
• Role in reviewing annual and interim financial statements.
• Addressing complex accounting issues and new accounting standards.

Module 4: Internal Controls and Internal Audit Oversight

• The COSO Internal Control Framework (overview).
• Understanding key internal controls relevant to cooperative operations (e.g., lending, deposits).
• The Audit Committee's role in overseeing the internal control system.
• Directing and reviewing the scope, plan, and findings of the internal audit function.
• Ensuring the independence and resources of internal audit.

Module 5: External Audit Oversight and Engagement

• Role in the appointment, remuneration, and oversight of the external auditor.
• Reviewing the external audit plan, scope, and key risks identified.
• Facilitating effective communication between management, internal audit, and external audit.
• Discussing audit findings, significant accounting judgments, and unadjusted differences.
• Evaluating the performance and independence of the external auditor.

Module 6: Risk Management Oversight

• The Audit Committee's role in the cooperative's overall Enterprise Risk Management (ERM) framework.
• Focus on financial risks (credit, liquidity, market) and operational risks (fraud, IT, compliance).
• Reviewing risk assessment processes and mitigation strategies.
• Monitoring emerging risks relevant to the cooperative sector.
• Collaboration with the Risk Committee (if separate).

Module 7: Regulatory Compliance and Ethical Conduct

• Overview of key laws and regulations applicable to cooperatives and financial services.
• Monitoring the cooperative's compliance program and status.
• Reviewing significant compliance breaches and corrective actions.
• Upholding ethical conduct: code of conduct, whistleblower policy, conflicts of interest.
• The Audit Committee's role in fostering a strong ethical culture.

Module 8: Enhancing Audit Committee Performance and Best Practices

• Self-assessment and peer review for Audit Committee effectiveness.
• Continuous professional development for committee members.
• Succession planning for Audit Committee members.
• Best practices in reporting to the full Board.
• Leveraging technology for improved oversight and data analysis.

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.