QUALIFICATIONS OF AUDITOR (SACCO ACT) The SACCO Societies Act (CAP 486) lays down the process for

appointing an external auditor and the qualifications thereof. An external auditor is a person who reviews the financial statements of the SACCO with view of expressing an opinion whether they reflect a true and fair view and the books of account are well maintained according to the acceptable professional standards. Section 44 of the Act states Every SACCO society shall, in each financial year, appoint an external auditor who shall be a person qualified under section 45 and approved for appointment as such by the Authority. A person shall be qualified for appointment as an external auditor of a SACCO society if that person; a. Is qualified as an auditor under the Companies Act; and b. Is not I. An officer of a SACCO society; II. A partner of a director of a SACCO society; III. An employer or employee of an officer of a SACCO society; IV. An officer or employee of an associate of a SACCO society; V. A partner or an employer of a person who regularly performs the duties of secretary or book-keeper for a SACCO society: or VI. A firm or member of a firm of auditors of which any partner or employee falls within the categories enumerated in this section. Whereas Section 45 lays down the qualification for an auditor, section 44 lays down the procedure for appointing an auditor. Section 44 (1) states Every SACCO society shall, in each financial year, appoint an external auditor who shall be a person qualified under section 45 and approved for appointment as such by the Authority. For one to act as an auditor of the SACCO, the person should:a) Be qualified under section 45; b) The appointment should be approved by the annual general meeting of that society; and c) Be appointed as such by the Authority. A SACCO society shall not remove or change its external auditors in the course of the year of the appointment of such auditors except with the prior approval of the Authority.