Kenya Revenue Authority Internal Audit Procedures Manual Vol.

II

INTERNAL AUDIT DEPARTMENT

PROCEDURES MANUAL

VOLUME II

1st Edition

© 2006

This manual is intended for the sole use of the members of Internal Audit Department

© 2006<Kenya Revenue Authority>

The contents of this manual may not be reproduced or reprinted in whole or in part without the express
written permission of the Authority
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

TABLE OF CONTENTS

CHAPTER PAGE

1 LIST OF AUDIT PROGRAMMES 2

2 STANDARDIZED FORMS

Column 6 working paper form 5

Column 14 working paper form 6
Non Conformity forms 7
Audit File Review form 8
Standard form for requesting data 9

3 STANDARD LETTERS AND REPORTS 10

Audit notice letter 10

Traveling memo 11
Opening meeting checklist 12
Audit Quality Checklist 14
Closing meeting checklist 15
Letter to request for management comments 16
Report forwarding memo 17
Report Distribution form 18
Auditee Survey Questionnaire 19
Annual audit planning chart 21
Monthly performance report 22

4 FILE DIVIDERS 27

5 MEMO FILE REFERENCES 28

Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

CHAPTER ONE: AUDIT PROGRAMMES

PROGRAMME CODE NAME OF AUDIT PROGRAMME
ROAD TRANSPORT DEPARTMENT
IAD/RTD/1 Audit of Cash Office Operations
IAD/RTD/2 Audit of Revenue Monitoring and Reporting
IAD/RTD/3 Audit of Motor Vehicle Registration Procedures
IAD/RTD/4 Audit of Registry and document retrieval procedures
IAD/RTD/5 Audit of Accountable Documents/Items
IAD/RTD/6 Audit of Motor Vehicle Dealers Licensing Procedures
IAD/RTD/7 Audit of Transport Licensing Board Operations and procedures
IAD/RTD/8 Audit of Driving School and Instructors Licensing
IAD/RTD/9 Audit of Motor Vehicle Licensing - PSVs
QUALITY MANAGEMENT & INSPECTION
IAD/QMP/1 Audit of Quality Management System
IAD/QMP/2 Audit of Management Responsibility
IAD/QMP/3 Audit of Resource Management
IAD/QMP/4 Audit of Product Realization
IAD/QMP/5 Audit of Measurement, Analysis and Improvement
IAD/QMP/6 Audit of compliance to Internal Standards (DTD)
IAD/QMP/7 Audit of compliance to Internal Standards (RTD)
IAD/QMP/8 Audit of compliance to Internal Standards (CSD)
IAD/QMP/9 Audit of compliance to Internal Standards (HQs)
IAD/QMP/10 Inspection programme
HEADQUARTERS
IAD/HQ/1 Audit of Utilities Management
IAD/HQ/2 Audit of Archiving and filing systems
IAD/HQ/3 Audit of KRA Property management
IAD/HQ/4 Audit of Mail Procedures (Receiving and Dispatch)
IAD/HQ/5 Audit of Stores Management
IAD/HQ/6 Audit of Project Management
IAD/HQ/7 Audit of Facilities Management
IAD/HQ/8 Audit of Procurement and supplies operations
IAD/HQ/9 Audit of Fleet Management
IAD/HQ/10 Audit of Corporate and Public affairs procedures
IAD/HQ/11 Audit of Payroll Operations
IAD/HQ/12 Audit of Accounting Systems
IAD/HQ/13 Audit of Budgeting Systems
IAD/HQ/14 Audit of Government Revenue
IAD/HQ/15 Audit of Property Plant and Equipment
IAD/HQ/16 Audit of Debtors and Prepayments

2
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
IAD/HQ/17 Audit of Creditors and accruals
IAD/HQ/18 Audit of Cash in Hand and Bank
IAD/HQ/19 Audit of Fixed Deposits
IAD/HQ/20 Audit of Amount due from Treasury
IAD/HQ/21 Audit of Income
IAD/HQ/22 Audit of Expenditure (including Salaries)
IAD/HQ/23 Audit of Staff Recruitment procedures
IAD/HQ/24 Audit of Disciplinary Procedures
IAD/HQ/25 Audit of Promotion, Transfer and Reward systems
IAD/HQ/26 Audit of Staff Welfare
IAD/HQ/27 Audit of KRA Training schools
IAD/HQ/28 Audit of Investigation and enforcement procedures
IAD/HQ/29 Audit of Informer rewards procedures
IAD/HQ/30 Audit of Legal Services operations and procedures
IAD/HQ/31 Audit of Management Information Systems
IAD/HQ/32 Audit of Research and corporate planning operations
IAD/HQ/33 Audit of Library Operations
IAD/HQ/34 Audit of Complaints Centre
IAD/HQ/35 Audit of Registry and record keeping
IAD/HQ/36 Audit of Medical Scheme operations
IAD/HQ/37 Audit of Training scheme & staff development
IAD/HQ/38 Audit of retirement and success planning
DOMESTIC TAXES DEPARTMENT
IAD/DTD/1 Tax Audit Programme
IAD/DTD/2 Collections and compliance - PAYE compliance and instalments
IAD/DTD/3 Collections and compliance - VAT 3 compliance and domestic excise
IAD/DTD/4 Collections and compliance - Withholding tax and Withholding VAT
IAD/DTD/5 Debt management - Agency revenue
IAD/DTD/6 Debt management - Assessments and PRWCs
IAD/DTD/7 Debt management - Waivers and write offs
IAD/DTD/8 Audit of - Objections and appeals
IAD/DTD/9 Direct taxes - Pensions
IAD/DTD/10 Audit of - Remissions and Exemptions management
IAD/DTD/11 Audit of - Technical, policy and Legislation
International tax policy - Double tax treaties and agreements, International
IAD/DTD/12 practices and affairs
IAD/DTD/13 LTO - specialists section operations
IAD/DTD/14 Non filers and estimates management
IAD/DTD/15 Payments reconciliations and refunds
IAD/DTD/16 Returns processing
IAD/DTD/17 Taxpayer education and information
IAD/DTD/18 Taxpayer recruitment and registration

3
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
IAD/DTD/19 Audit of Gaming, betting and casinos
IAD/DTD/20 Audit of foreign artist
IAD/DTD/21 Audit of Agency revenue (stamp duty, council rate)
CUSTOMS SERVICES DEPARTMENT
IAD/CSD/1 Audit of Operations of Bonded Warehouses
IAD/CSD/2 Audit of Customs Warehouses Procedures
IAD/CSD/3 Audit of Customs operations at Border stations
IAD/CSD/4 Audit of Verification and releasing procedures at ICDs and CFS
IAD/CSD/5 Audit of Revenue Reconciliations
IAD/CSD/6 Audit of Direct cash payments (Pay Box)
Audit of Customs Duty Exemptions, Remissions, Customs Warehouse Rent
IAD/CSD/7 Waiver
IAD/CSD/8 Audit of Customs Remissions
IAD/CSD/9 Audit of Operations at Post Parcels Office
IAD/CSD/10 Audit of Management of Security Bonds, Transit bonds, Warehousing bonds
Audit of Licensing of Clearing Agents, MUB, EPZ, Bonded Warehouses,
IAD/CSD/11 transit tracks
Audit of Operations of Export Promotion Programmes, Tax Remission Export
IAD/CSD/12 office and COMESA
IAD/CSD/13 Audit of Operations of MUBs and EPZ
IAD/CSD/14 Audit of Transit Monitoring Units
IAD/CSD/15 Audit of Baggage Halls Operations
IAD/CSD/16 Audit of Customs Debt Management
IAD/CSD/17 Audit of Declarations, manifest, valuation and verification procedures
IAD/CSD/18 Audit of Customs Refunds
IAD/CSD/19 Audit of Taxpayer Education and Recruitment
IAD/CSD/20 Audit of Operations of Transit Toll Stations
IAD/CSD/21 Audit of Overtime Operations
IAD/CSD/22 Audit of Post clearance audit procedures
IAD/CSD/23 Audit of Air Passage Service Charge
IAD/CSD/24 Audit of Air Navigation Service Charge/Civil Aviation Revenue
IAD/CSD/25 Audit of Export Processing procedures
IAD/CSD/26 Audit of Inspectorate units operations
IAD/CSD/27 Audit of Customs Preventive Services

4
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
CHAPTER TWO: STANDARD WORKING PAPER FORMS

Initials Date
DEPARTMENT/SECTION:________________________________ Prepared by_______________
PERIOD OF AUDIT:________________________________________
Reviewed by_______________
SUBJECT:_____________________________________________

IAD/F/01

5
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

INITIALS DATE

Internal Audit Department PREPARED BY:___________

Dept./Section__________________
REVIEWED BY:__________
Period of Audit________________
Subject:_____________________

IAD/F/02
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

NON-CONFORMITY FORM
Initials Date
Department/Section:
Department/Section: ___________________________
__________________________ Prepared By: __________________________________

Audit Period: _________________________________ Discussed With: _______________ __________________

Subject: ______________________________________
______________________________________ Reviewed By: __________________________________

Working Paper Reference:

Observation/Finding/Risk (Criteria, Effect or Impact/cause), Specific Examples if any:
______________________________________________________________________________________

______________________________________________________________________________________
______________________________________________________________________________________

______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

Recommendation(s) and Opportunity for Improvement:

______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
Management Response findings and Recommendations
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________

INTERNAL AUDIT DEPARTMENT NCF NO. ______ OF_____________

IAD/F/03
7
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

AUDIT REVIEW
REVIEW FORM
DEPARTMENT/SECTION
Initials Date
PERIOD OF AUDIT: _______________________________________. Prepared by: ___________ _______
SUBJECT: ________________________________________________
Reviewed by: ___________ _______

IAD/F/04

8
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Initials Date
DEPARTMENT/SECTION:________________________________ Prepared by_______ ______
PERIOD OF AUDIT:________________________________________
Reviewed by_______ ______
SUBJECT: FILES/RECORDS REQUESTE/RETURNED BY THE AUDITORS
S. NO NAME DATE RECEIVED/ DATE RETURNED REMARKS
NO RETURNED
SIGNED BY
SIGNED BY

IAD/F/05

9
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

CHAPTER THREE: STANDARD LETTERS AND REPORTS

Internal Audit Department

INTERNAL MEMO

TO:

FROM:

REF:

DATE:

SUBJECT: AUDIT NOTIFICATION

This is to inform you that a team of Internal Auditors will be conducting an audit on the
______________________________________ system of your department/station/section on _______

The purpose of this audit is to examine and review the _________________________________ for the
period___________________________.

This exercise will be useful to your unit/section/department and ourselves. There should be no
restriction or limitation on the scope of this audit and in whatsoever circumstances, the internal audit
staff shall have unrestricted access to all the records, property and personnel.

The audit is scheduled to take approximately two weeks to complete and should there be any weakness
in the system, the same will be discussed with you together with our recommendations.

In order for us to work efficiently as possible, it is understood that your co-operation is greatly
appreciated.

Name of Signatory

I
AD/L/01
10
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

INTERNAL MEMO

TO: Senior Deputy Commissioner-Finance

FROM:

DATE:

REF:

SUBJECT: REVIEW OF …………………………………………………………

A team of internal auditors is scheduled to carry out the review of operations and controls at
…………………………. The team members are ………………………...(Include Name, Designation
and Personal Numbers).

They will travel by ………….to ………….on …………………and return on ……………...

Mr………………… (Name of Driver, Designation and Personal Number) will accompany the team to
…………. and return on………….. He will again travel on ……………. and return with the team on
………………….

Mr/Mrs/Ms…………………..(Include Name, Designation and Personal Number) will join the team
on ……………..to review the audit work and return with the auditors on …………………..

Please approve per diem allowances for the ………….officers and accountable transport imprest of
Kshs……………………….

Name of Signatory

IAD/L/02
11
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

ENTRANCE CONFERENCE MEMO

1. Date: _______________________________

2. Audit area and period to be covered:

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Estimated Audit dates: Beginning____________________________________________________

Ending________________________________________________________

3. Staff members present:

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
4. Objectives of the audit:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

5. Detail any required assistance from the management:

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

6. Any matters management would like us to address in this audit:

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
7. Information or other requests by management for future audits:
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
12
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
__________________________________________________________________________________
__________________________________________________________________________________
______________________________
8. Auditee contact person:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
9. Summary of issues discussed:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Name Designation Date

Prepared by: _________________ ____________ _____________

Reviewed by: ________________ _____________ _____________

IAD/L/03

13
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

AUDIT QUALITY ASSURANCE CHECKLIST

Audit Title:

Review conducted by…………. …… Date…………….

Checklist Tests Standard W/P Yes No

Ref.
1. Workpapers contain the following;

Audit work plan with time budget analysis
duly filled.

Audit notification memo

Entrance conference memo

Signed Audit Programs approved by the
Audit Manager and Head of Internal Audit.

Exit meeting memo.

Summary of Findings (Non Conformity
Forms).

• Final Report cross referenced to audit

findings and working papers.
3. All versions of draft audit reports are filed.

4. Unnecssary materials have been removed from

the workpapers.

5. Documented all exit meetings and contacts

made during audit.

6. Follow up on all prior exceptions if any.

IAD/L/04

14
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

EXIT CONFERENCE MEMO

1. Date:
__________________________________________________________________________

2. Audit area and period:

__________________________________________________________________________________
__________________________________________________________________________________

3. Staff Members present:

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
4. Summary of Issues and Management Response:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Items or issues that require follow-up by audit staff:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Any other matter arising from the meeting:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Name Designation Date

Prepared by: _________________ ____________ _____________

Reviewed by: ________________ _____________ _____________

IAD/L/05

15
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

INTERNAL MEMO

TO:

FROM:

REF:

DATE:

SUBJECT: Request for Management Comments

________________________________________________________________________

We have reviewed the operations and controls over …………………………..which falls under your
Region/Department/Station/Section. In order to finalize our report on the assignment, we require your
input in form of management response. The response form part of the report to Management
(Commissioner of …………….and the Commissioner General).

Forwarded herewith are the Non-Conformity Forms for your response. Please complete the space
provided under management response and let us have them by ……………..

SDC - INTERNAL AUDIT

IAD/L/06

16
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

INTERNAL MEMO

TO: Commissioner General

FROM:

DATE:

REF:

SUBJECT:

Enclosed herewith is the report on the ……………………………………at ………………………...

Please give us your comments and action plan for implementation of the recommendations or invite us
for a discussion over issues raised in the report.

Further, let us have your report on implementation of the recommendations on or before……………..

(2 months from the date of this memo).

Name of Signatory

CC. Regional Manager

Station Manager

IAD/L/07

17
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

REPORT DISTRIBUTION FORM

Report Title and Date ___________________________________________________

S/No. Recipient No. of copies

1. Board of Directors/Audit Committee
2. Commissioner General
3. Commissioner
4. Head of Department
5. Regional Manager
6. Station Manager/Section Head
7. Head of Internal Audit
8. Deputy Head of Internal Audit
9. Audit file
10. Others (Specify)
11. Total Copies Distributed (Hard copies)

Storage of soft copies

- File Name
- Computer (Specify location)

Remarks ______________________________________________________________________

Prepared by ___________________________________________________________________

Copy: Audit file

: Audit Manager

IAD/L/08

18
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

Please rate the Internal Audit Department in the following areas.

Evaluation Criteria Very Good Good Average Poor Very poor

Independence

1. Organizational placement of
the internal auditing function in
the Authority.
2. Objectivity of internal auditors.

Professional Proficiency

3. Technical proficiency of
auditors

4. Professionalism of auditors

5. Communication skills of
auditors

Scope of work

6. The audit covered key

operating areas.

7. Notification to you of the audit

purpose and scope.
8. Inclusion of your suggestion
for audit areas.
Performance of Audit Work

9. Feedback to you of findings

during the audit
10. Duration of the audit

11. Timeliness of the audit

12. Accuracy of the audit findings.

13. Value of the audit

recommendations

19
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
14. Clarity of the audit report.

15. Usefulness of the audit process

16. Effectiveness of Internal

Auditing
Management.

17. Was there anything about the audit(s) you especially liked?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

18. Was there anything about the audit(s) you especially disliked?

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
19. Additional Comments.

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

Name and Signature (optional): ____________________________________

IAD/L/9

20
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

ANNUAL PLANNING CHART

NAME OF UNIT:

Period of Coverage:
Week commencing From ………… to …………….
Officers Start of Staff initials/ Dates of week Report Writing
Initials Audit
1. Review and supervision
SDC/DC Assignment Report finalisation
Planning
2. Assignment Review and
Unit Head Planning Supervision Report finalisation

3. Team Assignment Fieldwork

Leader Planning Report finalisation
4.Team Assignment Fieldwork
Leader Planning Report finalisation

Name Designation Date

Prepared by: ……………………. ……………………. …………………..

Approved by: ………………… ……………………. ……………………

IAD/L/10

21
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

Internal Audit Department

Monthly Report

To: Senior Deputy Commissioner – Research & Corporate Planning

From: Senior Deputy Commissioner - Internal Audit

Date:

Ref:

Subject 1. ACTION POINTS ARISING FROM TOP

MANAGEMENT MEETING OF ……………………
2. MONTHLY REPORT FOR …………………………..

A: Action Points arising from Top Management meeting of ………………

Monthly report for ……………………….

BI Summary of Performance per department

BI (a) Normal Audits
Number of Assignments
Department
Brought Started *Completed *Completed
Forward During month During Carried forward year to-date
From Month to next month
previous
month
Headquarters
Customs
Services
Domestic
Taxes
Road
Transport
Total
* Completed- Report sent out to respective officer-in charge/head of department

22
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

BI (b) QAP Audits & Inspections

Number of Assignments
Department
Brought Started *Completed *Completed
Forward During During Carried forward year o-date)
From previous month Month to next month
month
Headquarters
Customs
Services
Domestic
Taxes
Road
Transport

* Completed- Report sent out to respective officer-in charge/head of department

B II Details of Assignment/Initiative and Scope

BII (a) Normal Audits

Department/Assignments & Scope Status Date report Date
Dispatched comments
expected
1.0 HEADQUARTERS

1.1
2.0
CUSTOMS SERVICES
2.1

3.0 DOMESTIC TAXES

3.1
4.0
ROAD TRANSPORT DEPARTMENT

4.1

BII (b) QAP Audits & Inspections

Department/Assignments & Scope Status Date report Date
Dispatched comments
expected
1.0 HEADQUARTERS

1.1

1.2

2.0
CUSTOMS SERVICES

23
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
2.1

3.0 DOMESTIC TAXES

3.1

3.4
4.0
ROAD TRANSPORT DEPARTMENT

4.1

B III (a) Cumulative performance to date (Targets Vs Actuals)

Number of Assignments
S/N Month Target Actual for Varia Cumulat Cumulativ Cumul
for month month nce ive e ative
Target Actual for Varian
for year year to- ce
to-date date
1.
BIII (b): SUMMARY
OF ASSIGNMENTS WITH OUTSTANDING COMMENTS
Division Number of assignments with outstanding comments
B/Fwd Comments Comment C/Fwd Perio Period Perio Comments
from expected s received to next d ……… d received
previous during during the month July …to …… year to
month month month 2005 ……… ….to date
… ……
…
Headquarters
Customs
Services
Domestic
Taxes
RTD
Total

B IV (a): Completed audit assignments for …………………..

No. Assignment/Initiative Date Date Date
report comments comments
dispatched expected received
1.0 HEADQUARTERS
1.1
2.0 CUSTOMS SERVICES
2.1
3.0 DOMESTIC TAXES
3.1
3.0 ROAD TRANSPORT

24
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

BIV (b): COMPLETED AUDIT ASSIGNMENTS FROM …………… TO ………………FOR WHICH

COMMENTS ARE OUTSTANDING/EXPECTED
No. Assignment/Initiative Date Date comments Date
report expected commen
dispatched ts
received
1.0 HEADQUARTERS
1.1
2.0 CUSTOMS SERVICES
2.1

3.0 DOMESTIC TAXES

4.0 ROAD TRANSPORT

4.1

C: PROGRESS ON IMPLEMENTATION OF THE BALANCE SCORE CARD (BSC) DURING JULY

2005
The department commenced new assignments/initiatives and proceeded with work on others in
progress as outlined above. During the month under review, the department completed the
assignments/initiatives summarized below. All these were geared towards attaining the set objectives
as outlined in the departmental BSC.
BSC PERSPECTIVES
No. Perspective Strategic objective Assignment/ Comments/action
Initiative
1.0 FINANCIAL

1.1 Financial/Enhanced Enhance and improve

Revenue Collection assessments.

1.2

1.3 Financial Activity based

budgeting/costing
2.0 INTERNAL
PROCESSES
2.1 Internal Processes Business process
improvement
3.0 CUSTOMER
3.1 Customer Improvement of
relationship with the
auditee/stakeholders

25
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
3.2 Customer Implementation of a tax
administration quality
assurance programme.
4.0 PEOPLE
4.1 People Revitalization of the
human resources

Name of Signatory

B IV (d) Performance as per Balanced Scorecard (BSC)

Assignments/Initiatives
No Perspective Target Actual Variance

1. Financial/Enhanced revenue
collection
2. Operational/Efficiency/Internal
processes
3. Customer
4. People
TOTAL

IAD/L/11

26
_____________________________________________________________________________________
Internal Audit Department
 Kenya Revenue Authority Internal Audit Procedures Manual Vol. II

CHAPTER FOUR: FILE DIVIDERS

A

Final audit report

Draft audit report

Memos

B
Planning Documents

Time budget analysis

Audit programmes

Actual time taken

C

Organization charts

Other structures

List of contact persons

Persons interviewed

D

Nonconformity Forms/Issues

Review notes

Compliance testing

Tests of Detail

E
Other Related Reports
(Audit, Investigation, Inspection, Research, Statistics, etc)

F
Other Correspondences
(Specify)

27
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
CHAPTER FIVE: FILE INDEXES
REFERENCE NAMES OF FILES
1 KRA/5/1009/1'A' MISCELLANEOUS FILE
2 KRA/5/1009/1'B' STAFF GENERAL CORRESPONDENCES
3 KRA/5/1009/1'C' FLOAT FILE
4 KRA/5/1009/1'D' CORRESPONDENCES ON BOARD ISSUES
5 KRA/5/1009/2 AUDIT QUARTERLY REPORTS
6 KRA/5/1009/2'A' CUSTOMS DEPARTMENT
7 KRA/5/1009/2'B' VALUE ADDED TAX DEPARTMENT
8 KRA/5/1009/2'C' INCOME TAX DEPARTMENT
9 KRA/5/1009/2'D' ROAD TRANSPORT DEPARTMENT
10 KRA/5/1009/3'A' LEAVE FORMS
11 KRA/5/1009/3'B' LEAVE COMPUTATION FORMS
12 KRA/5/1009/4 HANDING AND TAKING OVER REPORTS
13 KRA/5/1009/5 MONTHLY PERFOMANCE REPORTS
14 KRA/5/1009/5'A' MOMBASA OFFICE REPORTS
15 KRA/5/1009/6'A' SECURITY MEETINGS
16 KRA/5/1009/6'B' SECURITY GENERAL
17 KRA/5/1009/7 STAFF APPRAISALS
18 KRA/5/1009/8 INSURANCE
19 KRA/5/1009/9 TRAINING GENERAL
20 KRA/5/1009/10 DEPARTMENTAL MEETINGS
21 KRA/5/1009/10'A' DEPARTMENTAL MEETINGS - MOMBASA OFFICE
KRA/5/1009/10’B’ AUDIT COMMITTEE MEETINGS
22 KRA/5/1009/11 REQUISITIONS
23 KRA/5/1009/12'A' INTERNAL AUDIT INTERVIEWS
24 KRA/5/1009/12'B' INTERVIEWS - GENERAL
25 KRA/5/1009/13 MINUTES OF HOUSING COMMITTEE
26 KRA/5/1009/14 HIV/AIDS
27 KRA/5/1009/15'A' MANPOWER WASTAGE
28 KRA/5/1009/15'B' ATTENDANCE REGISTER
29 KRA/5/1009/16 CORRESPONDENCE FROM/TO TAX PROGRAMME
30 KRA/5/1009/17 CORRESPONDENCE FROM/TO MIS
31 KRA/5/1009/18 CIRCULARS FROM FC AND SUPPLIES MANAGER

28
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
32 KRA/5/1009/19 VACANT POSITIONS WITHIN KRA
33 KRA/5/1009/19’B’ CASUAL EMPLOYEE
34 KRA/5/1009/20 FOR CIRCULATION
35 KRA/5/1009/21 FINANCIAL STATEMENTS
36 KRA/5/1009/22'A' FAX MACHINE OPERATIONS
37 KRA/5/1009/22'B' TELEPHONES & MOBILE TELEPHONES
38 KRA/5/1009/23 COMMUNICATIONS TO AND FROM LEGAL OFFICE
39 KRA/5/1009/24 AUDITORS' CVS
40 KRA/5/1009/25 INCOME TAX CASH RECEIPTS
41 KRA/5/1009/26'A' PROCUREMENT
42 KRA/5/1009/26'B' EMMERGENCY PROCUREMENT
43 KRA/5/1009/27 INTERNAL CORRESPONDENCES
44 KRA/5/1009 /28 MEDICAL
45 KRA/5/1009/29 SEMINARS
46 KRA/5/1009/30 OFFICE EQUIPMENT
47 KRA/5/1009/31 STEERING COMMITTEE MEETINGS MINUTES
48 KRA/5/1009/32 SDV TRANSAMI - CLAIM CASE
49 KRA/5/1009/33 CORRESPONDENCES FROM AND TO
INVESTIGATION
50 KRA/5/1009/34 INSPECTION REPORTS OF KRA HDQS
51 KRA/5/1009/35 CORRESPONDENCES FROM AND TO PUBLIC
RELATIONS MANAGER
52 KRA/5/1009/36(A) CORRESPONDENCES/MEETINGS TO/FROM
KRA/5/1009/36(B) CONTROLLER AND AUDITOR GENERAL
53 KRA/5/1009/37 RELOCATION TO TIMES TOWER
54 KRA/5/1009/38 FOLLOW-UP ON IMPLEMENTATION OF REPORTS
55 KRA/5/1009/39 CORRESPONDENCE FROM AND TO MOMBASA
REGIONAL AUDIT OFFICE
56 KRA/5/1009/40 CORRESPONDENCES TO COMMISSIONER GENERAL
57 KRA/5/1009/41 STAFF WELFARE
58 KRA/5/1009/42 AUDIT MANUAL
59 KRA/5/1009/43 BSC IMPLEMENTATION
60 KRA/5/1009/44 CORRESPONDENCES TO/FROM BOARD
SECRETARY
61 KRA/5/1009/45 PERFORMANCE CONTRACT BETWEEN CG & SDC
INTERNAL AUDIT

29
_____________________________________________________________________________________
Internal Audit Department
Kenya Revenue Authority Internal Audit Procedures Manual Vol. II
62 KRA/5/1009/46 EMPLOYEE CENSUS
63 KRA/5/1009/47 ACTION POINTS ON DISCIPLINARY CASES

30
_____________________________________________________________________________________
Internal Audit Department