As a way of looking at the differing ways of improving the quality of the internal audit functions in accordance with internationally recognized standards, government internal audit functions were to be decentralized starting with financial year 2005/06.

Section 90 of the Local Governments Act Cap 243 stipulates the existence of the Internal Audit department in every district whose duties and responsibilities are also well defined by regulations 2007 and the Local Government Audit Manual 2007.
The department has the mandate to carry out audits in health centers, schools, sub counties, district council departments, LDG grant, CBG grant, CDD, man power audit, NAADS, special audits and investigations and any other projects.