The Directorate of Cooperative Audit draws its mandate from Section 25 of the Cooperative Societies Act, Cap.490 (amended 2004) and the Cooperative Societies Rules, 2004 (rule No. 14-19), which requires all registered Cooperatives Societies to;

1. Keep proper accounts and prepare financial statements in accordance with IFRS/IAS and as may be required by the Commissioner for Cooperative Development
2. be audited at least once every year by an auditor who is approved by the Commissioner in consultation with the Institute of Certified Public Accountants of Kenya
3. present the audited accounts and annual returns to the Commissioner for Cooperative Development within four months after the closure of the financial year.
4. Present the audited accounts together with any comments made by the Commissioner on the accounts to the general meeting of the society within a period of four months after the closure of the financial year
5. The Directorate assists the Commissioner to carry out functions that relates to accounting, auditing, inspections and inquiries in cooperative societies.

An efficient and effective government agency in the regulation of Accounting and Auditing services to Cooperative Societies in the country.

To oversee the delivery of Accounting and Auditing Services that meet professional standards to cooperative societies, through the enforcement of legal and regulatory requirements.

1. Implement policy and operational guidelines on Co-operative Audit services.
2. Regulate and monitor compliance with the provisions of the Co-operative Societies Act, Cap.490 (amended 2004) and subsidiary legislation.
3. To promote good governance in co-operative societies.
4. Ensure effective and efficient service delivery.

The main role of the Directorate of Cooperative Audit is to instill good governance in cooperative societies by performing the following functions:

1. Development and review of Co-operative Audit Policy and Operational guidelines;
2. Registration of societies audited accounts;
3. Ensuring correctness of disclosures in accounts, adherence to statutory requirements, international accounting, auditing and reporting standards;
4. Interpretation of accounts and timely advice on financial matters;
5. Maintaining societies audit data and information.
6. Monitoring societies compliance with the provisions of the Cooperative Societies Act, cap.490 and other Legislation
7. Registration of private audit firms accredited to audit co-operative societies;
8. Research, preparation and dissemination of audit technical updates and guidelines;
9. Preparation and review of accounts reporting/presentation formats
10. Provision of tax consultancy and advocacy services on behalf of Co-operative Societies and ensuring uniformity in application of tax laws;
11. Capacity building of County Governments on cooperative accounting and audit