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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 14 : General Treasury Matters

165. Internal audit unit


(1) Each municipality and each municipal entity must have an internal audit unit, subject to subsection (3).


(2) The internal audit unit of a municipality or municipal entity must—
(a) prepare a risk-based audit plan and an internal audit program for each financial year;
(b) advise the accounting officer and report to the audit committee on the implementation of the internal audit plan and matters relating to—
(i) internal audit;
(ii) internal controls;
(iii) accounting procedures and practices;
(iv) risk and risk management;
(v) performance management;
(vi) loss control; and
(vii) compliance with this Act, the annual Division of Revenue Act and any other applicable legislation; and
(c) perform such other duties as may be assigned to it by the accounting officer.


(3) The internal audit function referred to in subsection (2) may be outsourced if the municipality or municipal entity requires assistance to develop its internal capacity and the council of the municipality or the board of directors of the entity has determined that this is feasible or cost-effective.