1. MODULE 2 INTRODUCTION TO GOVERNANCE AUDIT

2. Definition Of Terms Governance Audit
A Governance Audit is an independent assessment of an organization with a view to expressing an opinion on the adequacy and effectiveness of the organization’s policies, systems, practices and processes.
It is an objective assurance engagement.

3. Definition of Terms (Ctd..)
Governance Auditor
Governance Auditor is a Practicing Certified Secretary accredited by ICPSK for purposes of conducting a governance audit.
Governance Self-Assessment Report
Governance Self-Assessment Report is a structured representation of the practice of governance as prepared by management of an organization based on the self-assessment tool.

4. Definition of Terms (Ctd..)
Governance Audit Report
A Governance audit report is an independent opinion by a governance auditor on the appropriateness, adequacy and effectiveness of governance practices of an organization.
Voluntary Governance Audit
Voluntary Governance Audit is a governance audit that is not required by law or regulations.

5. Importance of Governance Audit
A Governance Audit provides an effective mechanism to check on compliance of various legislations, regulations and codes of best practices and therefore help to detect cases of non-compliance and facilitate taking corrective-measures.
There are numerous benefits to an organization as a result of undertaking a Governance Audit.

6. Types of Governance Audit
Governance audit could either be:
Self-Assessment Governance Audit; or
Independent Governance Audit.
Voluntary Governance Audit
Statutory Governance Audit
Other Governance Audit

7. Timing of Governance Audits
a. The Statutory governance audit shall be annual.
b. It is recommended that a voluntary governance audit be conducted on an annual basis.
c. Other governance audits may be undertaken as directed by the relevant authority.

8. Users of Governance Audits
Different categories of users of Governance Audit reports are:
Owners
Management
Employees
Board Members
Government Authorities/ Regulators
Investors
Other Stakeholders

9. GENERAL PRINCIPLES OF GOVERNANCE AUDIT
Comply with ethical guidelines relating to governance audit engagements;
Comply with quality control requirements
Conduct the governance audit in accordance with Governance Standards and Governance Audit Guidelines;
Plan and perform the governance audit with an attitude of professional skepticism;

10. GENERAL PRINCIPLES OF GOVERNANCE AUDIT(Ctd..)
e) Obtain reasonable assurance that the governance information is free from material misrepresentation.
f) Plan and perform the governance audit to reduce governance audit risks.
g) Determine acceptability of the governance self-assessment reporting framework.

11. Governance Audit Criteria
Criteria are the benchmarks used to evaluate the subject matter.
The criteria can be qualitative or quantitative and should define what the audited entity will be assessed against.
Diverse sources can be used to identify criteria, including performance measurement frameworks.
The criteria should be discussed with the audited entities, but it is ultimately the governance auditor's responsibility to select suitable criteria.
It is crucial to select reliable and objective criteria

12. Sources of Governance Audit Criteria
Sources of Governance Audit Criteria are:
enabling and related legislation which governs the entity;
entity policies, standards, directives, guidelines, operating and procedure manuals;
relevant multilateral conventions and international governance best practices;
criteria used previously in similar audits or previous inquiries by various authorities;
criteria used or developed by professional organizations and standard setting bodies; and
independent expert advice and know how.

13. Managing Governance Audit Risk
Governance Auditors should actively manage audit risk, which is the risk of obtaining incorrect or incomplete conclusions, providing unbalanced information or failing to add value for users.

14. RESPONSIBILITIES IN GOVERNANCE AUDIT
Various parties play important roles in the Governance Audit Process. They are charged with defined responsibilities and duties. The parties are :
The Governance Auditor
Client Organization
Governance Audit Peer Reviewer

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